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ONGC takes stake in Venezuela`s biggest oil dealsVenezuela awarded on Wednesday the largest oil investment of President Hugo Chavez\'s 11year rule. Spain\'s Repsol will take 11% in its project, the same stake as consortium partners Petronas of Malaysia and ONGC of IndiaSource: Moneycontrol Top Headlines | 12 Feb 2010 | 4:19 am Maruti Suzuki India to hire 950 people - The Hindu
Source: Business - Google News | 12 Feb 2010 | 3:02 am World stocks aided by EU Greek pledge; euro still weakLONDON (Reuters) - World stocks rose on Friday as a pledge by European leaders to support Greece prompted some relief among investors, but gains were limited by the lack of detail and the euro continued to fall.Source: Reuters: Money News | 12 Feb 2010 | 2:50 am Uncertainty about Greece aid keeps euro under pressure - Reuters
Source: Business - Google News | 12 Feb 2010 | 2:50 am Oil slips below $75 on stronger dollarLONDON (Reuters) - Oil fell below $75 a barrel on Friday, pressured by a stronger dollar on growing disappointment among investors over the lack of details emerging from the European Union summit to help debt-laden Greece.Source: Reuters: Money News | 12 Feb 2010 | 2:46 am Higher fiscal deficit undermining autonomy of central banks: SubbaraoMumbai: Growing fiscal deficit as a result of governments’ efforts to prop up their respective economies has the potential to undermine the autonomy of central banks, whose credibility has already been dented due to the financial meltdown, RBI governor D Subbarao said on Friday. Noting that government debt in advanced economies is projected to jump from 78% of GDP in 2007 to 118% by 2014, he said at a conference here that higher fiscal dominance may impede the autonomy of central banks. Even in India, the government is looking toward borrowings for meeting 40% of its budgeted expenditure (which was over Rs10 lakh crore in 2009-10). “In such a scenario, what are now seen as cyclical fiscal deficits may, in fact, morph into structural fiscal deficits. We may then see the return of fiscal dominance and undermining of the independence of central banks,” he said. “Beyond the short-term, the threat to the independence of central banks emanates from factors apart from public anger... as countries contemplate exit from these expansionary policies, the familiar tensions between monetary and fiscal policies are showing up again,” the RBI governor said. He cautioned that these tensions were unlikely to go away even when world economies recover from the financial meltdown, raising questions on autonomy of central banks worldwide. “Many believe that these tensions are temporary, and will melt away once recovery takes root...that may not well be the case,” Subbarao said. Last month, the RBI governor had said that the reversal of monetary accommodation cannot be effective unless there is also a roll-back of government borrowings. Signaling its exit from the easy money policy, the RBI in January hiked the cash component banks have to park with it by 0.5% to 5.75% absorbing Rs36,000 crore from the system. Subbarao said the crisis has dented the credibility of central banks worldwide and said that the case for central bank independence is coming under increasing assault as a result of crisis-led developments. On capital flows, the governor said that capital flows can also potentially impair the financial stability of the economy. Later, talking to reporters, Subbarao said the Reserve Bank has adopted a calibrated approach towards the management of cross-border fund-flows. Source: LatestNews-Home - Livemint.com | 12 Feb 2010 | 2:41 am Missile maker Raytheon bidding for tank upgrade in IndiaDefence ministry officials said the government was looking to spend at least $100 million in upgrading the tanks, which India bought from Russia three decades ago.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 2:39 am INTERVIEW - SAIL, Korea's POSCO in co-op talksPANAJI, India (Reuters) - State-run Steel Authority of India Ltd is in talks with South Korea's POSCO to increase cooperation between the two Asian steelmakers, SAIL's chairman said, without specifying if those talks included jointly setting up a plant in India.Source: Reuters: Money News | 12 Feb 2010 | 2:38 am Coal India 2010-11 coal imports to jumpThe country's demand for coal is rising, particularly from the steel and the power sectors which are expanding capacity, but domestic coal output targets are being scaled down.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 2:37 am Industry surges over 16% in Dec; rekindles debate on stimulus - Business Standard
Source: Business - Google News | 12 Feb 2010 | 2:36 am Tata Tele ahead of bigger rivals for 6th monthNEW DELHI (Reuters) - Tata Teleservices outpaced bigger rivals Bharti Airtel and Vodafone Essar for a sixth straight month in mobile additions, continuing to gain share in the world's fastest-growing but cut-throat mobile market.Source: Reuters: Money News | 12 Feb 2010 | 2:29 am GM leads foreign charge to low-end China car marketSHANGHAI (Reuters) - Foreign automakers enjoying success in China may be gearing up to take on local players in the high-volume but competitive low-end market, following General Motors' recent roll-out of a model priced as low $8,300.Source: Reuters: Money News | 12 Feb 2010 | 2:25 am Iconic Maruti 800 set to drive into history in 13 citiesMaruti Suzuki chairman R C Bhargava said sales would be discontinued in 13 cities from April with the company having no plans to upgrade the M800 to meet Euro IV emission standards. Maruti 800 made its debut in 1982.Source: India Business News | Business News - Times of India | 12 Feb 2010 | 2:09 am Industrial output encouraging, says PranabNew Delhi: Union finance minister Pranab Mukherjee on Friday described the industrial output in December as encouraging and said it would have a positive bearing on the economic growth figures for the current fiscal. “It (IIP growth rate in December) is quite encouraging and I do hope that third quarter GDP figures will also be encouraging... it will get reflected in the overall GDP,” he said while talking to reporters here. The index of industrial production (IIP), an indicator of industrial activity in the country, zoomed 16.8% in December against the contraction of 0.2% during the corresponding month a year ago. Higher than anticipated industrial growth rate in December may also have a reflection on the over all gross domestic product (GDP), which was pegged at 7.2% for the current fiscal by the Central Statistical Organisation (CSO) earlier in the week. The advance growth estimate by the CSO, was lower than 7.75% projected by the finance ministry and 7.5% predicted by the Reserve Bank of India (RBI). Mukherjee, who is gearing up to present the Budget 2010-11 on 26 February, suggested that the higher industrial output during the month might push up the GDP for the third quarter and subsequently for the fiscal. Source: Home - Livemint.com | 12 Feb 2010 | 2:04 am IIP encouraging; will have bearing on GDP: FM - NDTV.com
Source: Business - Google News | 12 Feb 2010 | 1:53 am M&M to enter into bike segment this yearNew Delhi: Auto major Mahindra & Mahindra on Friday said it will foray into the motorcycle segment with a full range of products by this year even as it will take a final call on continuation of its joint venture with French car maker Renault within the next 45 days. “We do have a plan to get into the motorcycle segment. This will happen this year,” Mahindra & Mahindra vice-chairman and MD Anand Mahindra told reporters on the sidelines of an event organized by auto industry body Siam here. “We are going to be a full range player. We are simply not going to come out with one motorcycle product,” he added. When asked about the status of its ‘one-product’ joint venture with Renault, Mahindra said, “We will be coming out with a statement within 30-45 days (on) how the Mahindra and Logan venture will continue in the future, what is the roadmap.” M&M has a joint venture with Renault--Mahindra Renault Pvt Ltd -which manufacture the only product Logan in India. Renault has recently announced to set up its own distribution network to sell the products which will be manufactured from the upcoming Chennai facility, being constructed with Japanese partner Nissan. In the last one year, sales of Logan has fallen drastically and the JV currently sells about 550 units per month. Source: Home - Livemint.com | 12 Feb 2010 | 1:32 am Deloitte to hire 12,000 more in India: ReportMost of the new additions will be in existing centres like Hyderabad, Bangalore, Mumbai and New Delhi, Hari Kumar, managing director of Deloitte India said.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 1:16 am UPDATE 1-Coal India 2010/11 coal imports to jump-exec - Reuters India
Source: Business - Google News | 12 Feb 2010 | 1:04 am Global automakers see robust sales this yearChicago: After a long stint with declining sales, global automakers are now optimistic that the industry is gradually returning on the path of recovery and feel 2010 will be a better year for auto sales. The past couple of years have been tough for everyone “but things are now definitely looking up. There are certain signs of life in the industry,” General Motors Co’s north American president Mark Reuss told reporters on the sidelines of the Chicago Auto Show here. “There is no question this year will be better,” he said, adding that the situation is a lot better now than it was a year ago. Ford Motor president of the Americas Mark Fields said the industry will see a gradual recovery in 2010. “Our call for the industry this year is 11.5-12.5 million units,” he added. The financial crisis that hit in September 2008 impacted not only the US car market but also the world markets. But the business is looking up a little bit better now, Honda’s assistant vice-president public relations for America, Kurt Antonius said adding that compared to previous year, “they are better days ahead for the auto industry.” US auto sales rose 6% in January. Ford, General Motors, Nissan and Korean automaker Hyundai Motor reported improved sales in January compared to a year ago. Source: Home - Livemint.com | 12 Feb 2010 | 1:03 am Global automakers see robust sales this yearChicago: After a long stint with declining sales, global automakers are now optimistic that the industry is gradually returning on the path of recovery and feel 2010 will be a better year for auto sales. The past couple of years have been tough for everyone “but things are now definitely looking up. There are certain signs of life in the industry,” General Motors Co’s north American president Mark Reuss told reporters on the sidelines of the Chicago Auto Show here. “There is no question this year will be better,” he said, adding that the situation is a lot better now than it was a year ago. Ford Motor president of the Americas Mark Fields said the industry will see a gradual recovery in 2010. “Our call for the industry this year is 11.5-12.5 million units,” he added. The financial crisis that hit in September 2008 impacted not only the US car market but also the world markets. But the business is looking up a little bit better now, Honda’s assistant vice-president public relations for America, Kurt Antonius said adding that compared to previous year, “they are better days ahead for the auto industry.” US auto sales rose 6% in January. Ford, General Motors, Nissan and Korean automaker Hyundai Motor reported improved sales in January compared to a year ago. Source: World Business - Livemint.com | 12 Feb 2010 | 1:03 am IOC recognizes ICC, cricket can now become Olympic sportVancouver: Cricket’s push to be a part of the Olympic Games received a major boost with International Olympic Council (IOC) on Friday granting recognition to ICC. The IOC in its meeting here voted to recognize the International Cricket Council (ICC) and the federations of sport climbing and power boating. “They are recognized federations by us, which now means that they can take part in IOC events,” IOC director of communications Mark Adams said after the meeting held ahead of the Winter Olympics here. “It could be seen as a first step towards becoming Olympic sports,” he added. After Friday’s IOC decision, cricket - most likely its Twenty20 version, can now bid to join the 2020 Olympic Games though ICC has not made it clear which format it will push for. ICC chief executive Haroon Lorgat has welcomed the decision and termed it as the first step towards cricket’s inclusion in the Olympics. Source: LatestNews-Home - Livemint.com | 12 Feb 2010 | 12:52 am SAIL, S Korea POSCO in talks to boost co-op - Economic Times
Source: Business - Google News | 12 Feb 2010 | 12:44 am Mining merger and acquisition expected to pick up pace this yearEarly last year, miners were scrambling to deal with plunging metals prices following the late 2008 financial crisis.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 12:43 am Industrial output surges in Dec; stimulus unwind likelyNEW DELHI (Reuters) - India's industrial output grew at its fastest pace in at least a decade in December, in further evidence of a strong economic recovery that could allow the government to follow the Reserve Bank in withdrawing stimulus.Source: Reuters: Money News | 12 Feb 2010 | 12:42 am Maruti 800 sales to be discontinued in 13 cities: ChairmanMaruti Suzuki, India's largest carmaker, has no plans to upgrade its lowest- priced Maruti 800 model to meet Euro IV emissions standards.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 12:41 am Industrial production grows 16.8% in DecemberHelped by sustained domestic demand, India's industrial production grew a better-than-expected 16.8% in December 2009 from a decline of 0.2% in the corresponding month of 2008, official figures released on Friday said.Source: India Business News | Business News - Times of India | 12 Feb 2010 | 12:41 am Tata Tele subscribers at 60 millionTata Tele, 26% owned by Japan's NTT DoCoMo, has topped industry monthly mobile additions for five straight months to December.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 12:35 am December industrial output up 16.8%: GovernmentIndustrial output rose 2.6% in the 2008-09 fiscal year (April-March), slower than 8.5% in 2007-08 as the global economic downturn hit Asia's third-largest economy.Source: Daily News & Analysis: Money News | 12 Feb 2010 | 12:32 am IMF offers to help Greece; EU disappoints marketsMUMBAI (Reuters) - The International Monetary Fund on Friday joined the European Union in pledging support for Greece in its struggle to bring its ballooning budget deficit under control and contain its debt crisis.Source: Reuters: Money News | 12 Feb 2010 | 12:22 am Industrial output up 16.8% in Dec, stimulus unwind likelyNew Delhi: India’s industrial output grew at its fastest pace in at least a decade in December, in further evidence of a strong economic recovery that could allow the government to follow the central bank in withdrawing stimulus. The data is unlikely to prompt any action from the Reserve Bank of India (RBI) ahead of its April policy review, after a central banker on Thursday played down the possibility of any off-cycle action. Industrial output grew 16.8% in December from a year earlier, up from revised annual rise of 11.8% in November and also above analysts forecast for a 12% rise, data showed on Friday. It was the highest reading since April 1999 for which the data immediately available. “We are going to see some rollback of fiscal stimulus in the Feb. 26 federal Budget,” said Rahul Bajoria, an economist with Barclays Capital in Singapore. “The need to support the manufacturing sector through duty cuts is no longer there.” Financial markets are closed on Friday for a holiday. The central bank has already started to unwind stimulus, surprising markets by raising banks’ cash reserve ratio (CRR) by more than expected at its January policy review. It is widely expected to tighten rates at its April meeting. Consumer durables goods output continued to surge on the back of fiscal spending, growing an annual 46% in December. Manufacturing production rose 18.5% on year, while capital goods output was up 38.8% and mining rose 9.5%. Factory output, which grew for the 12th consecutive month, is riding on a revival in consumer demand following aggressive rate cuts by the central bank and stimulus via tax breaks put in place after the global downturn. Since December 2008, India has announced stimulus packages equivalent to about 12% of GDP to boost infrastructure and support economic recovery, while the Reserve Bank of India cut its key lending rate by 425 basis points between October 2008 and April 2009. Purchasing managers’ index showed last week manufacturing activity in January grew at its fastest pace in almost 1-“ years, boosted by a sharp rise in new export orders, while car sales in January rose an annual 32.3%. The government has been reluctant to commit any rollback in fiscal stimulus but with the economy increasingly looking on a solid footing, analysts expect it to lay out a roadmap for a stimulus withdraw in its 26 February Union Budget. On Wednesday, the finance minister Pranab Mukherjee said economy would grow around 7.75% in the fiscal year ending March. Source: Home - Livemint.com | 12 Feb 2010 | 12:22 am December industrial surges stimulus unwind likelyIndia's industrial output grew at its fastest pace in at least a decade in December, in further evidence of a strong economic recovery that could allow the government to follow the Reserve bank of India in withdrawing stimulus.Source: HindustanTimes.com - Top Business News Headlines | 12 Feb 2010 | 12:20 am Shaw frowns on Bt Brinjal decision - Oneindia
Source: Business - Google News | 12 Feb 2010 | 12:08 am Motorola to split into two by next yearChicago: Motorola Inc Friday said it will split into two independent, publicly traded companies by the first quarter of 2011. After the “planned separation”, one company will include the mobile devices and home businesses, while the other would include Motorola’s enterprise mobility solutions and networks businesses. “The board of directors support the planned separation of Motorola into two industry-leading public companies. We believe this structure provides significant operational and strategic flexibility for both the companies, positions them for future success and enhances long-term shareholder value,” Motorola board chairman David Dorman said. The Schaumburg, Illinois-based company’s co-chief executive officer Sanjay Jha would serve as CEO of the mobile devices and home businesses effective immediately. The business will offer a comprehensive portfolio of mobile converged devices, digital entertainment devices in the home, end-to-end video, voice and data solutions. “The combination of mobile devices and our home business brings together two highly complementary and innovative organisations. Our expanding portfolio of smartphones and end-to-end video content delivery capabilities will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers,” Jha said. Motorola had been planning the spin-off of the handset business in 2008, but plans were delayed due to recession. For the new enterprise mobility solutions and networks businesses, Motorola Co-chief executive officer Greg Brown will serve as the CEO with immediate effect. This business will offer a comprehensive portfolio of products and solutions, including rugged two-way radios, mobile computers, scanning and wireless network infrastructure. The separation comes as the company looks to turn around its various flagging units. The mobile division had nearly $7 billion sales in 2009, while the home division had about $4 billion sales. Motorola intends to effect the separation through a tax- free stock dividend of shares in the new entity to its shareholders, the company said. Following the separation, both businesses would be well capitalised so the companies can execute their respective business plans and address future opportunities, it added. Motorola expects that post-separation, the enterprise mobility and networks business would be capitalised in a manner that will achieve an investment grade rating and will be the entity responsible for Motorola existing public market debt at the time of separation. Following the separation, both entities will use the Motorola brand. The mobile devices and home business is expected to own the Motorola brand and licence it royalty free to the enterprise mobility solutions and networks business. Source: Home - Livemint.com | 12 Feb 2010 | 12:07 am Mukherjee: Dec industrial output shows robust economyNEW DELHI (Reuters) - India's high industrial output figures show robust economic growth and the economy is likely to do well in the quarter through December, Finance Minister Pranab Mukherjee said on Friday.Source: Reuters: Money News | 12 Feb 2010 | 12:05 am Tata Motors overtakes Hyundai to reclaim No. 2 spotWith most carmakers posting record sales in January, Tata Motors regained the No 2 position behind market leader Maruti Suzuki. After a gap of about two years, the company has overtaken Hyundai Motors India, according to Tata MotorsSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am European Union comes to Greece's rescueThe details of exactly what support, crisis-stricken Greece will get from the EU, were yet to be unveiled at the time of publication. But it appears that a solution of some sort has at last been found, with the EU President, Mr Herman Van Rompuy,Source: Business Line - Home Page | 12 Feb 2010 | 12:00 am India, UK sign joint declaration on nuclear co-operationIndia and the UK signed a joint declaration for civil nuclear cooperation onSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Base rate may end cheap bank loans for firmsCome April 1, bluechip corporates, ever conscious about the borrowing cost, may explore alternatives to short-term bank loans to keep a leash on their interestSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Costlier potatoes, pulses push food inflation to near 18%Food inflation surged for the third straight week, inching closer to 18 per cent in end-January, with potatoes, pulses and fuel items leading theSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Renault likely to take charge of Logan revivalMahindra Renault's future will be known by end-March 2010 when the partners are through with a restructuring exercise which will eventually benefit theSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Investors warming up to ASBA for new issuesThe Application Supported by Blocked Amount (ASBA) route to applying for IPOs is seeing a slow pick up, as banks and other institutions involved in the issue process have stepped up their promotionalSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Deora may meet Pranab on Sunday to discuss fuel price, subsidiesIn a continued effort to obtain the unmet portion of subsidy for cooking fuels for PSU oil retailers, the Petroleum Minister, Mr Murli Deora, is likely to meet the Finance Minister, Mr Pranab Mukherjee, onSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am Oil majors join global group for Venezuela projectA consortium of ONGC Videsh Ltd (OVL), Indian Oil Corporation Ltd (IOC), Oil India Ltd (OIL), Repsol YPF of Spain, and Petroliam Nasional Berhad (Petronas) of Malaysia is to develop a multi-billion integrated oil project inSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am CCEA to vet only Rs 1,200-cr plus FDI proposalsAfter almost 14 years, the Centre on Thursday liberalised the policy on cases requiring Government approval for foreignSource: Business Line - Home Page | 12 Feb 2010 | 12:00 am INTERVIEW - Honda India revives plan for second plantMUMBAI (Reuters) - Japan's Honda Motor Co's Indian car unit has revived plans for production at its second plant in India due to a surge in sales last year, a senior company official said.Source: Reuters: Money News | 11 Feb 2010 | 11:46 pm Mahindra & Mahindra to decide on Renault JV in 45 daysRenault has said it is talking to Mahindra about restructuring the joint venture that makes the Logan sedan.Source: Daily News & Analysis: Money News | 11 Feb 2010 | 11:43 pm Maruti 800 sales to be discontinued in 13 cities - chairmanNEW DELHI (Reuters) - Maruti Suzuki, India's largest carmaker, has no plans to upgrade its lowest- priced Maruti 800 model to meet Euro IV emissions standards, Chairman R.C. Bhargava said on Friday.Source: Reuters: Money News | 11 Feb 2010 | 11:42 pm International Monetary Fund able to support GreeceInternational Monetary Fund (IMF) first deputy managing director John Lipsky said the IMF is willing to support Greece as thought appropriate by the Greek authorities.Source: Daily News & Analysis: Money News | 11 Feb 2010 | 11:41 pm Oil rises above $75 in Asian tradeSingapore: Oil prices were back above $75 in Asian trade on Friday, but the market remained hobbled by concerns the European Union’s pledge to help Greece deal with a crippling debt crisis lacked details. New York’s main futures contract, light sweet crude for delivery in March, was trading at $75.09 a barrel in the afternoon, down 19 cents from its US close. Brent North Sea crude for April delivery was down 27 cents to $73.85 a barrel. EU leaders met on Thursday in Brussels to discuss Greece’s deficit and debt crisis, but analysts said the meeting failed to soothe investors’ worries over the problem and concerns it could spill over to the rest of the eurozone. “There has been some decent gains in oil prices this week, but there’s still a lot of concerns over sovereign debt problems in Europe,” said Ben Westmore, a minerals and energy economist with the National Australia Bank in Melbourne. “The lack of detail in the deal seems to have scared the markets somewhat,” he added. EU leaders at their summit promised solidarity with debt-stricken Greece but held back from offering an immediate cash bailout. Under a European Commission budget target agreement, Greece must reduce its public deficit this year by four percentage points from the current 12.7% of GDP, which is more than four times above the EU limit. The absence of a firm rescue plan for Greece has led the euro to slide against the US dollar. As oil is traded in US dollars, the commodity becomes more expensive for holders of weaker currencies, leading to lower demand and depressing prices. Other analysts said forecasts of stronger energy demand should support oil prices over the long term. The International Energy Agency (IEA) forecast on Thursday that world oil demand and prices would rise more than previously expected this year, driven higher by strong growth in emerging economies. The Paris-based agency said demand was now expected to be 86.5 million barrels per day in 2010 compared with a forecast last month of 86.3 million. It forecast average prices to rise to $75 per barrel from $58 in 2009. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 11:36 pm Bharti adds 2.85 mln users in Jan: Industry - Economic Times
Source: Business - Google News | 11 Feb 2010 | 11:28 pm Motorola says will split in 2 in early 2011Struggling technology company Motorola Inc. said on Thursday it plans to split in two in early 2011 - with one half containing its consumer-focused mobile phone and television set-top box products, and the other holding divisions that target business customers.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 11:07 pm Honda India revives plan for second unitMumbai: Japan’s Honda Motor Co’s Indian car unit has revived plans for production at its second plant in India, a senior company official said. Honda had deferred plans for its new plant in Rajasthan, citing depressed auto demand. The company may decide to start production at the second plant once it reaches full capacity utilisation of 100,000 units at its first plant near New Delhi, Jnaneswar Sen, Honda Siel Cars India’s marketing head, said. The second plant, would have an initial annual capacity of 60,000 units with an investment of Rs10 billion ($215 million). In the first ten months of 2009/10 Honda Siel sold 49,609 units, a rise of about a fourth from year ago. Source: Home - Livemint.com | 11 Feb 2010 | 11:04 pm Bharti Airtel adds 2.85 million users in JanuaryBharti Airtel, India's top mobile operator, added 2.85 million mobile subscribers in January, to have a total of 121.7 million.Source: Daily News & Analysis: Money News | 11 Feb 2010 | 10:53 pm Toyota s under fire chief postpones US visitToyota said on Friday its chief, under pressure to face US lawmakers over mass safety recalls, had postponed a visit to Washington until early March, as the company considers disclosing all its vehicle flaws.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 10:35 pm RBI scolds banks on home loans - IBNLive.com
Source: Business - Google News | 11 Feb 2010 | 10:33 pm Good opportunity for EcoBoost engine in India: FordChicago: US automaker Ford sees great opportunity for its fuel efficient ‘EcoBoost´ engine technology for cars in India, which it considers a key market, a top executive said. The Detroit-based firm showcased its Ford Edge 2011 crossover, featuring the EcoBoost engine, at the Chicago Auto Show here. “Customers have embraced EcoBoost technology because of its ability to deliver power and performance with uncompromised fuel economy. The technology has a great deal of opportunity in India,” Group VP global product development Derrick Kuzak said on the sidelines of the auto show here. He said the technology is “ideal” for small displacement engines and will provide “exceptional fuel economy and great performance at the same time. In the future, ecoboost could be a great technology for India,” he added. Terming India as a “very important and one of the largest growing markets in the world,” he said Ford will continue to expand its portfolio in the country. The firm is “pleased and excited” about launching ‘Figo´, its first small car for the Indian market, he added. “Figo fits right in the Indian market in terms of its affordability,” he said. Ford’s EcoBoost engine technology, featuring turbo charging with direct injection, was introduced a year ago. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 10:29 pm Deloitte to hire 12,000 more in IndiaMumbai: Accounting firm Deloitte will hire 12,000 people in India over the next 30 months, the Business Line newspaper reported on Friday, quoting a top Deloitte India official. Most of the new additions will be in existing centres like Hyderabad, Bangalore, Mumbai and New Delhi, the paper quoted Hari Kumar, managing director of Deloitte India, as saying. Currently, the company has 11,500 employees in 13 Indian cities the report said. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 10:16 pm China urges US to cancel Obama-Dalai Lama meetingBeijing / Washington: China urged the United States on Friday to scrap plans for President Barack Obama to meet the Dalai Lama next week, the latest source of friction in already strained Sino-US relations. The White House had said on Thursday that Obama would meet the exiled Tibetan spiritual leader on 18 February, despite China’s repeated warnings that such talks would hurt ties. “China firmly opposes the Dalai Lama visiting the United States and US leaders’ contacting with him,” a report from the official Xinhua news agency cited foreign ministry spokesman Ma Zhaoxu as saying. Tensions with Washington have arisen over issues from trade to currencies to the US plan to sell $6.4 billion of weapons to Taiwan, the island that China treats as an illegitimate breakaway province. China vowed last week to impose unspecified sanctions against US companies selling arms to Taiwan and curtail military-to-military contacts. Senior Chinese military officers have proposed that their country boost defence spending and possibly sell some US bonds to punish Washington for its latest round of proposed arms sales to Taiwan. Despite that, US officials said on Thursday that Beijing had cleared a US aircraft carrier, the USS Nimitz, to visit Hong Kong next week, an apparent concession from China. Against that backdrop, the long-planned meeting with Dalai Lama has further stoked Beijing’s ire. It regards the spiritual leader as a dangerous separatist responsible for fomenting unrest in Tibet. “We urge the US side to fully understand the high sensitivity of Tibet-related issues, honour its commitment to recognising Tibet as part of China and opposing ‘Tibet independence´,” Ma said. White House spokesman Robert Gibbs had earlier made clear the United States would shrug off China’s opposition. “The Dalai Lama is an internationally respected religious leader and spokesman for Tibetan rights, and the president looks forward to an engaging and constructive dialogue,” he said. Mindful of Chinese sensibilities, Obama had held off meeting the Dalai Lama until after the president first saw Chinese leaders during a trip to Asia in November. Strains over the Dalai Lama and other issues have raised worries that China might retaliate by obstructing US efforts in other areas, such as imposing tougher sanctions on Iran over its nuclear programme. But Gibbs insisted the relationship between the United States and China — the world’s largest and third-biggest economies — is “mature enough” to find common ground on issues of mutual interest despite disagreements on other topics. He said Obama, for example, has not been shy about talking to the Chinese about US concerns over their currency, which Washington sees as undervalued, and Internet freedom. “We know that two countries aren’t going to agree on everything,” Gibbs said. Adding to tensions, Obama vowed last week to address currency problems with Beijing and to “get much tougher” with it on trade to ensure US goods do not face a competitive disadvantage. China is the single biggest holder of US Treasuries, owning at least $776.4 billion of US government debt at the end of June 2009, according to statistics from Washington. Irate over Dalai Lama, Taiwan arms Beijing, which has become increasingly vocal in opposing contacts between foreign leaders and the Dalai Lama, has tried to turn up the heat on Obama over his planned meeting. Zhu Weiqun, a vice minister of the United Front Work Department of China’s ruling Communist Party, said last week that such a meeting “would damage trust and cooperation between our two countries, and how would that help the United States surmount the current economic crisis?” Previous US presidents, including Obama’s predecessor, George W. Bush, have met the Dalai Lama, drawing angry words from Beijing but no substantive reprisals. The Dalai Lama has said he wants a high level of genuine autonomy for his homeland, which he fled in 1959. China says his demands amount to calling for outright independence. China recently hosted talks with envoys of the Dalai Lama but they 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 differences over the region’s future. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 9:55 pm Google rebuts US objections to digital book dealGoogle Inc. wants the digital rights to millions of books badly enough that it's willing to take on the US Department of Justice in a court battle over whether the Internet search leader's ambitions would break antitrust and copyright laws.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:45 pm Asia shares up on EU Greece pledge, euro dipsSingapore: Asian shares rose on Friday as investors took comfort from the EU’s pledge to support debt-ridden Greece, but the euro faltered on disappointment that no concrete proposals were offered to pull Athens out of its deficit spiral. Any detailed proposals for Greece are likely to be discussed by EU finance ministers at meetings in Brussels early next week, and the Greek government could still baulk if aid is linked to it adopting even tougher fiscal austerity measures. The MSCI index of Asian stocks traded outside Japan rose 0.4%, while the Nikkei gained nearly 1%, catching up with other global markets after a holiday on Thursday. Trade was thin, however, ahead of long Lunar New Year holidays next week in China, Hong Kong, Taiwan, Singapore and South Korea. US stocks rose as much as 1.4% overnight as the European Union’s support for Greece eased fears of a broader euro zone crisis and on data showing a dip in US weekly jobless claims. Shares of resource firms led gains in many Asian markets as metal prices rose on positive Chinese growth data. China on Thursday reported strong loan growth in January, while consumer inflation moderated more than expected. Japan’s Mitsubishi Corp rose 3.1% while global miners BHP Biliton and Rio Tinto rose 1% and 2.8%, respectively. Charts point to near-term rebound in Asian stocks, which found support near the 200-day moving average, as a bullish cross in the slow stochastics gave an early signal of a MACD cross. But investors were treading cautiously after recent sharp sell-offs. The euro eased against major currencies on disappointment among investors over the lack of details from the European Union on a Greece rescue plan. The single currency hovered near $1.3670, slightly below late Thursday levels. Greece’s ballooning deficit and debt have reverberated across financial markets in recent months, hitting the euro regional banking stocks and some government bonds, and prompting many investors to pull back from riskier assets worldwide. Emerging market equity funds suffered net outflows in the week ended 10 February, largely as a result of jitters over Greece’s fiscal crisis, Boston-based fund tracker EPFR Global said on Thursday. Emerging market equity funds had net outflows of $2.9 billion, with $1.76 billion — a 60-week high - coming just from the diversified global emerging markets equity funds (GEM) category, according to EPFR. Gold dropped after rising to a one-week high the previous day as the euro softened, while oil eased 40 cents to below $75 a barrel, pressured by a firmer U.S. dollar. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 9:36 pm American Airlines to charge 50 for coach standbyNext time you think about flying standby on American Airlines, be prepared to give the gate agent your name and $50.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:23 pm FDI regime eased; FIPB can clear deals up to Rs 1200 cr - Economic Times
Source: Business - Google News | 11 Feb 2010 | 5:07 pm NASSCOM asks govt to relax Evisa norms on expats: SourcesIndia Inc will soon face a serious manpower crunch thanks to new norms on employment visas to foreign nationals. One major point of concern is the longer visa renewal process.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 3:20 pm Petronas ships gasoline from RIL to IranMalaysia\'s state oil firm Petronas is shipping a gasoline cargo produced by Reliance into Iran, despite the Indian refiner instructing traders not to supply its fuel to Tehran, trade sources said on Tuesday.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 2:47 pm NMDC in talks with ArcelorMittal for Africa projectStaterun NMDC is in talks with Lakshmi Mittals ArcelorMittal for a project in Africa and may have signed a confidentiality pact for ArcelorMittals Faleme iron ore project in Senegal.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 2:38 pm UID\'s first enrolment to take place by Aug \'10: NilekaniThe Unique ID project may see its first enrolment between August 2010 and February 2011Source: Moneycontrol Top Headlines | 11 Feb 2010 | 2:10 pm Low rates on home loans may end soonThe special rates for new home loans which were less than those offered to earlier customers are set to be withdrawn. This means a hike of up to 2% in interest rates offered by both private and public banks.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 2:00 pm Deora, FM to meet on fuel prices on SundayFacing opposition from key allies, oil minister Murli Deora will meet FM Pranab Mukherjee on Sunday to explore the possibility of moderating a proposal to deregulate petrol pricing and raise diesel price.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 1:50 pm FedEx opens first India freight forwarding officesPackage delivery company FedEx Corp plans to open six new freight forwarding offices, including its first two in India, as part of an \"aggressive\" expansion of its Trade Networks segment.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 1:22 pm 'Bt Brinjal from Bangladesh, Philippines might find its way to India'The environment ministrys moratorium on the commercial release of Bacillus thuringiensis (Bt) brinjal in India is unlikely to keep the genetically modified crop out of Indian kitchens. It may creep in via Bangladesh and Philippines, according to A R Reddy, co-chair of Genetic Engineering Approval (now Appraisal) Committee (GEAC) that approved the vegetable for commercial use.Source: Business Standard | Front Page Headlines | 11 Feb 2010 | 1:17 pm Govt to table Finance Commission report in budget sessionThe government on Thursday announced that it will table the 13th Finance Commission report and the action taken report on its recommendations in the forthcoming budget session of Parliament.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:58 pm Govt relaxes Press Note 1 normsThe Cabinet Committee on Economis Affairs on Thursday relaxed the norms under Press Note 1, under which a foreign company needs to seek approval from its domestic partner in a joint venture in the country.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:50 pm Fuel price talk stokes inflation fearsFood inflation rose for the third straight week to touch almost 18% in January-end, fuelled by costlier potatoes and pulses.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:50 pm Exports rise 11.5% in January to $14 billionIndia's shipments in January jumped 11.5% year-on-year to $14.3 billion to maintain an upswing for the third straight month.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:49 pm Voluntary carbon market hotting upAfter a dull 2009, the voluntary market for carbon offsets is seeing a revival thanks largely to the emission reduction commitments made by the United States.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:46 pm Anik Industries to invest more than Rs 500crAnik Industries Limited announced the setting up of an integrated Ferro Alloy and Power Plant in Jhabua, Madhya Pradesh. The Company will invest more than Rs.500 crore to set up the Plant with a capacity of 45 MVA of Ferro Alloy and 90 MW of power.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 12:44 pm Infosys to recruit 15,000; looking for overseas buyoutInfosys Technologies on Thursday said it hopes to recruit 15,000 people in the days ahead and had already begun the process by visiting campuses.Source: India Business News | Business News - Times of India | 11 Feb 2010 | 12:43 pm Mint 50 best fundsMint 50 is that universe of 50 schemes that you can pick and choose out of over a 1,000 schemes in the mutual fund space. You need to pick around 6-12 schemes from Mint 50 to build yourself a tidy portfolio. Today we talk about UTI Opportunities Fund that has done well in both down as well as up markets a rare feat for an aggressive equity fund. It managed to make the right market calls in the tough 2008-2009 period that saw massive volatility in the markets. Good for aggressive equity fund investors, UTI Opportunities comes from the pedigreed fund house UTI Mutual Fund. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 12:27 pm The Mint Report for 11 February 2010 New Delhi: The government on Thursday doubled the limit of foreign direct investment proposals from Rs600 crores to Rs1,200 crores. This means proposals with total foreign equity inflow of Rs1,200 crores and below will be considered by the finance minister for approval. Earlier, foreign investment of up to Rs600 crores was approved by the finance minister and anything more than that was sent to the Cabinet Committee of Economic Affairs (CCEA). And there was a spike in food inflation again - for the third consecutive week. Wholesale price-based food inflation rose to almost 18% for the week ended the 30 January compared to 17.56% in the previous week. Potato prices jumped to 40.57% from last year while pulses increased to 41.24%. Inflation for primary articles, which include food and non-food items increased to 15.75% during the week from 14.56% a week earlier. Last week, Prime Minister Manmohan Singh said the worst of food inflation was over and that the situation would ease soon. Trade minister Anand Sharma on Thursday announced an increase in India’s exports and foreign direct investment. Exports rose 11.5% to $14.3 billion in January versus $12.9 billion a year ago. Foreign direct investment advanced an annual 13% to $1.5 billion in December. Markets closed higher on Thursday helped by positive global cues. The Sensex closed up 230 points to close trade at 16,153 and the Nifty ended the day 70 points higher to end the day at 4,827. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 12:27 pm Food inflation surges to 4-week highIndia’s food price inflation accelerated for a fourth straight week, fuelled by costlier potatoes and pulses, adding pressure on finance minister Pranab Mukherjee to maintain tax-free imports of crude edible oil and wheat. An index measuring wholesale prices of lentils, rice, vegetables and other food articles compiled by the commerce ministry increased to 17.94% in the week to 30 January from a year earlier after touching 17.56% the previous week, according to a statement. Mukherjee may keep import tax on wheat, pulses and other food items at near zero in the Budget on 26 February to boost supplies, analysts said.  Graphic: Yogesh Kumar/Mint; Photo: AFP “Curbing food inflation will be high on the agenda in the Budget,” said Shubhada Rao, chief economist at Yes Bank Ltd in Mumbai. “They may also partially roll back excise duties to tone down demand to more realistic levels.” India is using every option to curb food prices, which have stayed in double digits since June. On 13 January, the Centre unveiled plans to sell 2-3 mt of wheat and rice in the open market for two months. It also announced permitting duty-free import of white sugar until 31 December. The benchmark wholesale price inflation rate accelerated to 7.31% in December, the highest in 13 months, stoked by agriculture products. Source: LatestNews-Home - Livemint.com | 11 Feb 2010 | 12:18 pm IOC-OVL consortium bags 40% in Venezuelan heavy oil blocksA consortium of Indian Oil Corporation (IOC), ONGC Videsh Ltd, Oil India Ltd, Spains Repsol and Malaysias Petronas have acquired a 40 per cent interest in a company that will develop two major blocks in the Orinoco Heavy Oil Belt in Venezuela.Source: Business Standard | Front Page Headlines | 11 Feb 2010 | 12:14 pm Benchmark rates to fall to 9%Introduction of base rate will result in sharp reduction.Source: Business Standard | Front Page Headlines | 11 Feb 2010 | 12:12 pm No Direct Taxes Code in BudgetMore consultation needed, says government.Source: Business Standard | Front Page Headlines | 11 Feb 2010 | 12:09 pm Naco’s apathy riles biotech entrepreneurBangalore: Biotechnology entrepreneur Bala Manian is upset at losing an order from the National AIDS Control Organization (Naco) because of what he calls “reverse racism” of sorts, apathy and non-transparent conduct. Manian’s outburst is uncharacteristic for a biotech executive—the business involves long lead times and more than a fair share of heartburn.  Making a difference: ReaMetrix founder Bala Manian in Bangalore. Hemant Mishra / Mint Naco invited the bid through UNOPS, an international, self-financed provider of implementation services to non-governmental organizations, governments and other agencies. The UNOPS technical committee evaluated ReaMetrix’ proposal and the latter says it answered all queries. However, on inquiring about the fate of the tender, ReaMetrix was told by Naco on the phone that the tender had been cancelled and that it will continue with the old supplier BD, which provides both instruments and reagents. ReaMetrix asked the UNOPS technical committee why the bid was cancelled, but didn’t receive any response. Naco did not respond to phone calls and email seeking an explanation for cancelling the bid. BD also didn’t respond to calls and email. ReaMetrix reagents, based on “flow-cytometry” technology and validated by the National AIDS Research Institute in Pune, are dry format and pre-formulated, which make it free from cold chain and human error, respectively, unqualified necessities in Indian conditions. Manian and his team argue that Naco could have served more patients using their reagents at about one-fourth of the cost of those from multinationals. Separately, BD Biosciences and ReaMetrix signed a deal on 10 January to use the latter’s US Food and Drug Administration (FDA)-approved drying down technology for global delivery of affordable testing products for HIV/AIDS. “I am not angry, but sad that the primary reason why I started on this journey is not bearing fruit. It would have been fine if we had failed due to technical reasons and I would have gladly accepted it—failure is inherent in any new exploration,” says Manian, whose US FDA-approved manufacturing facility in Bangalore also supplies reagents to places such as the National Institutes of Health and Harvard University in the US. “But to throw in the towel due to unsavoury practices and conduct that is not transparent, is something I was not prepared for.” As chairperson and mission leader of the Confederation of Indian Industry’s national task force on biotechnology, Kiran Mazumdar-Shaw is aware of the issues facing ReaMetrix, and says the answer is to lobby the government to make changes. “I feel the only way is to escalate this to the ministerial levels, which I will do,” said Mazumdar-Shaw, who’s chairman and managing director of Biocon Ltd. Entrepreneurs say this isn’t an isolated case; dealing with the public health agencies in India is often a dialogue of the deaf where small companies find it difficult to navigate the “labyrinth of relationships between existing suppliers (mostly multinationals) and government agencies”, according to B.V. Ravi Kumar, founder and managing director of Xcyton Diagnostics Ltd. “I don’t even want to touch the government (agencies), I’d rather give my technologies to a non-government organization,” says Ravi Kumar, whose company makes Hepatitis C and HIV kits among other molecular diagnostics. After four years in which Ravi Kumar tried selling his diagnostics to Naco, which pitted it against “cheap products from some vague Chinese company”, he gave away marketing rights to GlaxoSmithKline Pharmaceuticals Ltd in 2002, which later sold that division to US-based Thermo Fisher Scientific Inc. Following a World Bank study recently that found flaws in Naco’s diagnostics procurement policy, the latter has been sending “feelers to the manufacturers like him”, but Kumar isn’t interested any more. For Manian, an optical engineer by training who at 64 shuttles between Bangalore and California every six weeks, public health is too big a cause to give up. A seven-time entrepreneur who founded his first company Digital Optics Corp. in 1979 in California and even got his 15 minutes of fame in an Academy Award for contributions to digital cinematography, Manian set up ReaMetrix in 2005 with a purpose to locally invent, develop and deploy sophisticated diagnostics. Manian has been battling agencies such as Naco on the one hand, and the private sector on the other, where some of his products are constantly benchmarked against international regulators even after being approved by the Indian regulator. “If it is not India, I will make my mark somewhere else in the world,” Manian says. “I believe in this too much and I have paid too big a price to walk away from the commitment to make a difference through innovation in public health.” For his next product, a new in-vitro diagnostic platform, a lab-in-a-box that’s designed to run 80% of any high-end pathology lab and can literally take life-saving tests to people in remote locations, Manian is in advanced talks with a US-based large diagnostic company for a global partnership. With $12 million (around Rs55 crore today) in funding from Mobius Venture Capital, Sequoia Capital and India’s Barings Private Equity, Manian says he has fiduciary responsibility to his investors and he will ensure that he delivers on that “one way or the other”. But for the country’s biotech industry, Manian says Indian leaders “should walk the talk” to make sure there is a level playing field for those who believe in the cause and want to play by the rules of the game. “I am really sad that I have not been able to break through the stranglehold big companies have on governmental decisions,” he says. seema.s@livemint.com Source: Home - Livemint.com | 11 Feb 2010 | 11:47 am Power ministry wants tax holiday extendedNew Delhi: The power ministry wants finance minister Pranab Mukherjee to extend the tax holiday on power projects when he presents the Budget to Parliament on 26 February.  With significant capacity augmentation planned for the 12th Plan (2012-17) that won’t be commissioned before the deadline, the power ministry believes ambiguity on the extension is affecting funding commitments. A power project requires a minimum period of around two years to achieve financial closure. “We have asked for the concessions which are there to continue,” said a top power ministry official, who did not want to be identified. “The extension of tax holiday under section 80-IA of the Income-tax Act for power projects is expected in the Budget,” said another power ministry official, who also did not want to be identified. The deadline extension could not be independently verified from the finance ministry. India has a power generation capacity of 153,000MW and plans to add 78,577MW by 2012, requiring some Rs10.31 trillion. According to the power ministry, the government expects to face a Rs4.51 trillion funding shortfall. Of the 11th Plan capacity targets, the government now expects only around 62,000MW to be commissioned, with the balance now expected in the 12th Plan. In addition, the government is planning a capacity addition target of around 100,000MW in the 12th Plan. “Financing of independent power projects is a challenge in itself given the limited number of developers of repute. Uncertainties in the section 80-IA provision will make a huge difference to the viability of the project,” said Shubhranshu Patnaik, an executive director at audit and consulting firm PricewaterhouseCoopers. “Any delay in extension will definitely impact financing.” Thermal power projects require an investment of around Rs5 crore per MW. For hydroelectric projects, the investment per MW is higher on account of issues relating to preparation of detailed project reports, relocation and resettlement, and environmental issues. “The government would like to maintain status quo on the fiscal regime on power plants until such time till the new direct tax code comes into play,” said Gokul Chaudhri, partner at audit and consulting firm BMR Advisors. “This impending change of law creates an element of uncertainty on project economics.” The direct tax code, which has proposed a dramatic makeover of India’s 49-year-old tax law, will replace the Income-tax Act, 1961, and has suggested significant cuts in tax rates for individuals and companies, pruned exemptions, choked loopholes for foreign companies, and radically changed definitions. The Congress party-led United Progressive Alliance government has sought public opinion on the code, without saying when it will be introduced. utpal.b@livemint.com Source: Home - Livemint.com | 11 Feb 2010 | 11:36 am PNB sees positive impact of base effect on profitabilityThe base rate system announced by the Reserve Bank of India on Wednesday will help staterun Punjab National Bank\'s profitability, Chairman and Managing Director KR Kamath said on Thursday.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 11:29 am Nokia Siemens wins $700 m deal from Bharti AirtelTelecom gear firm Nokia Siemens Networks said on Thursday it had won a USD 700 million network contract from Bharti Airtel to expand and upgrade India\'s top operator\'s GSM network in eight of its regions.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 11:29 am Fortis Health to set up 2 hospitals in north IndiaHospital chain operator Fortis Healthcare Ltd said on Thursday it would set up a 200bed hospital in Ludhiana in Punjab state and a 100bed hospital in Himachal Pradesh as part of its efforts to expand in northern India.Source: Moneycontrol Top Headlines | 11 Feb 2010 | 11:29 am MCX-SX promoters to sell 45%Mumbai: The promoters of India’s newest stock exchange are set to sell 45% of its equity to a consortium of three global stock exchanges and six global funds, a sale that will take the exchange one step closer to getting regulatory approval for equities trading and thus turn further the heat on the two warring incumbents, National Stock Exchange and the Bombay Stock Exchange.  Graphic: Paras Jain/Mint The nine buyers will own 5% each of the stock exchange, the maximum allowed to them by local regulations. The deal will value MCX-Stock Exchange (MCX-SX) at Rs5,000 crore, exactly the same valuation during earlier share sales in 2009. “Before March, the promoters’ collective holding will be brought down to 10%, which will allow it to clear the regulatory hurdles to start equity trading,” said the person with knowledge of the deal. MCX-SX is promoted by Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Ltd (FTIL), which had in the middle of 2009 sold a total of 30% to a group of domestic banks and financial institutions, including Bank of India, Union Bank of India, and IFCI Ltd. The current deal is the next stage of bringing down the promoters’ holding to 10%, as mandated by market regulator Securities and Exchange Board of India (Sebi). MCX and FTIL together now own 25% of MCX-SX. In an email response to Mint, Joseph Massey, managing director and CEO of MCX-SX, said: “MCX-SX board is committed to comply with shareholding guidelines and will complete the divestment process within the time frame set by the regulators. Being a regulated entity and as a matter of policy we do not comment on rumours/speculation nor do selective disclosures and we have no comments to offer at this point of time.” However, late on Thursday evening, an MCX spokesman said: “We deny this rumour/development and cannot comment anything at this time.” Sebi has not cleared MCX’s application to begin equity trading for nearly one-and-a- half years. Indian regulations mandate that no single entity can own more than 5% in a stock exchange. The exceptions are other stock exchanges, depositories, banking companies, insurance companies and public financial institutions, which can hold 15% each. Considering the nature of business of the promoters, MCX is a commodity exchange while FTIL is a technology provider for markets, and rules permit them to hold only up to 5% each in MCX-SX. Sebi rules also say that the total holding of overseas investors in a stock exchange cannot exceed 49%, with no single foreign entity owning more than 5%. With the latest 45% stake sale to nine foreign players, MCX-SX has headroom to sell another 4% to a foreign investor. In October 2008, Sebi had permitted MCX-SX to start trading in currency futures on condition that the promoters of the stock exchange divest part of their stakes within a year, that is, by 30 September 2009, when the deadline was extended by a year. The two promoters, MCX and FTIL, originally held 51% and 49% in MCX-SX, respectively. The promoters had appointed three investment bankers—Deutsche Bank AG, Nomura Financial Advisory and Securities Ltd and Antique Capital Markets Pvt. Ltd—to help them bring down their stakes. Deutsche Bank left the mandate in 2009. MCX-SX started trading in currency futures in October 2008. While Sebi’s nod for equity trading is awaited, MCX-SX also wants to start interest rate futures trading. anirudh.l@livemint.com Source: Home - Livemint.com | 11 Feb 2010 | 11:28 am Wall St’s top compensations go to not-so-big namesThe list of the biggest earners in finance usually reads like a Who’s Who of Wall Street. But these days, it reads more like a Who’s That? It turns out that some of the highest paid financial executives in America work far from the canyons of Lower Manhattan, at companies that have largely avoided the outcry over the return of hefty paydays on Wall Street.  Photo by Bloomberg; Graphic by Paras Jain/Mint Stumpf is making twice as much as Lloyd C. Blankfein, his counterpart at Goldman Sachs. Blankfein—who for many Americans has come to symbolize this new period of Wall Street riches—was paid $9.7 million for 2009, less than some expected. It is a stunning reversal in the old pecking order of pay. Big names on Wall Street such as Blankfein usually take home far more than staid bankers such as Stumpf, whose bank’s biggest business is making home mortgages and loans to corporations. But since the bailout, the rules of banker pay are bending. Some of the industry’s biggest names are being paid less than relative unknowns. Chief executives, who are usually at the top of the pay heap, are taking home roughly the same amounts as executives who work for them—and sometimes less. Stumpf and other executives have moved up the pay ladder partly because the likes of Blankfein have moved down. And for all the focus on what top executives earn, what is most startling is how many six-, seven- and eight-figure sums are being awarded to Wall Street bankers and traders whose pay often is unnoticed—if it is disclosed at all. How much senior executives earn, in cash and stock, is made public in corporate filings. This year, the results are surprising, according to an analysis by Equilar, an executive compensation research firm. Leaders in the pay sweepstakes include the heads of the credit card giants Visa Inc., MasterCard Worldwide, Capital One Financial Corp. and American Express Co.Joseph W. Saunders, who runs Visa, was paid about $15.5 million, a figure that vastly eclipses the compensation for top executives at Bank of America NA and Citigroup Inc. Ajay Banga, president of MasterCard Worldwide; Laurence D. Fink, chairman and chief executive of the giant money management company BlackRock Inc.; and Richard B. Handler, the boss at the Jefferies Group, a midsize investment bank that is virtually unknown outside financial circles, were each paid about $13 million. Executives at certain discount brokerages, insurance companies and regional banks were close behind. The big money, as ever, is in Wall Street trading. But pay for employees with few executive responsibilities is typically exempted from disclosure requirements. Brokers and asset managers also land windfalls that are often undisclosed. “There are probably thousands of people that are in the Millionaire Club—or even the 10 Millionaire Club—that have gotten no heat,” said Alan Johnson, a long-time Wall Street compensation consultant. To be sure, a handful of prominent companies dominate the well-paid list. Senior managers from JPMorgan Chase and Co. and Goldman Sachs occupy many of the top spots. Few of those executives are boldface names, however. While Jamie Dimon, JPMorgan Chase’s chairman and chief executive, appears to be the second-highest-paid banker, at $17.6 million, one of his subordinates collected nearly as much: Ina R. Drew, JPMorgan’s chief investment officer. Drew, whose correct calls on interest rates helped the bank earn several billion dollars of profit, was paid about $13 million. Despite the spotlight on Blankfein’s pay at Goldman, little was said about how much Gordon Nixon of Royal Bank of Canada received. His paycheque was roughly the same amount as Blankfein’s, $9.7 million, though he is hardly a household name. The Equilar analysis provides an early peek at 2009 pay and is not a comprehensive review. For consistency, any stock or options that were subject to performance hurdles were valued at the target levels; in practice, many executives receive larger payouts for surpassing the company’s financial goals. Wells Fargo posted strong results, even as it struggled to contend with rising mortgage and commercial real estate losses and accepted a bailout from the government in 2008. As it rebounded last year, the bank dribbled out the details of its large stock grants for Stumpf. In August, Wells announced that he would receive $900,000 in salary and about $6.5 million in various types of restricted stock. On New Year’s Eve, Wells issued a statement saying that Stumpf would receive another allotment of so-called performance shares— worth up to $15.4 million. That means his pay package could easily top $24 million in a year in which Wells was among the last of the big banks to repay the bailout money. “We believe we have the very best leadership team in financial services today, and a key to retaining that talent for the long term is to compensate our senior leaders competitively and to align their interests with those of our shareholders,” Stephen W. Sanger, who leads Wells Fargo’s compensation committee, had said in a statement last December. On pay, Wall Street seems to have reverted to its old ways. James P. Gorman, Morgan Stanley’s new chief executive, could receive $11-13 million even though the company posted an annual loss. Mark Lake, a Morgan Stanley spokesman, said that Gorman received that compensation because, as president, he was responsible for integrating the vast Smith Barney brokerage unit and for being the prospective chief executive. Bank of America’s highest-paid executive was the chief architect of its ill-fated acquisition of Merrill Lynch, Gregory L. Curl. He was awarded more than $9.2 million in stock, most of which will be paid out monthly over the next three years. Brian T. Moynihan, Bank of America’s new chief executive, will be paid about $6.1 million, thanks to a similar large stock grant. Jefferies Group, a midsize investment bank that had a strong year, rewarded its top executives handsomely. And more pay is coming down the pike. In mid-January, Handler received a $39 million stock grant and another executive received about $29 million. The stock award, subject to certain performance goals, is payable over the next three years and will come on top of any salary and bonuses the executives get. One of the highest compensated financial executives for 2009 was paid well when he was employed—and then even more when he quit. After leaving Visa in July, Hans Morris, the company’s president, collected an exit package valued at $24 million. “The ride is essentially over, and he is still getting grants,” said Brian Foley, an independent compensation consultant. ©2010/THE NEW YORK TIMES Source: World Business - Livemint.com | 11 Feb 2010 | 10:55 am Better revenue prospects and lower costs to fuel earnings growth at WABCO-TVS Ltd The company’s announcement of a tie-up with Mahindra-Navistar Automobiles to supply air-compressor technology braking systems sparked investor interest in the stock. According to industry sources, the Mahindra Navistar entity is expected to make commercial vehicles (CVs) , with production of around 10,000-12,000 units in 2010-11, with an installed capacity to make about 50,000 vehicles per annum. WABCO-TVS was a joint venture between German auto component major WABCO and Indian TVS group until June 2009, when TVS sold its holding to WABCO, which now holds a 75% stake. The company commands around 85% of the market share in air compression related braking systems in the CV market. It caters to the original equipment (OE) requirements of Tata Motors Ltd. and Ashok Leyland Ltd in the medium and heavy duty CV space. Like most industry peers, WABCO too has registered phenomenal growth in the last two quarters on the back of the uptrend in the auto sector. In fact, during the 2009 quarter, sales grew by 120% to Rs 169 crore, with a multi-fold jump in net profit to Rs 24 crore over the year-ago period. Decrease in employee and interest costs during the period trickled down into better operating and net profit margins at 23% and 9% of sales respectively. The cumulative sales for nine months ended December’09 was around Rs 410 crore, with a net profit of around Rs 51 crore. The equity capital is around Rs 9.5 crore. Analysts’ estimates are that the company will post earnings per share of around Rs 40 in 2009-10 and Rs 50 in 2010-11. While the mid-cap stock has poor liquidity on the bourses, it would command a relatively higher price-earnings multiple than its peers at any given time. That’s because the parent company is a leader in the European auto-component space-hence access to future technology is not an area of concern. Also, entry barriers in the braking systems are very high with little competition even from the unorganised segment on account of the safety aspect of the product. Source: Home - Livemint.com | 11 Feb 2010 | 10:17 am Dhanalakshmi Bank eyes big MF stakePrivate sector lender Dhanalakshmi Bank plans to buy about 70 per cent stake in a mutual fund, its Managing Director and Chief Executive Officer Amitabh Chaturvedi said on Thursday.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 10:00 am PC sales marginally up at 37 lakh in H1Economic recovery coupled with improving income levels helped hold PC (personal computer) sales during April-September 2009.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:57 am Exports grow 11 5 pc in JanThe country's exports grew 11.5 per cent in January, recording a positive growth for the third successive month triggering hopes that the worst might be over for embattled exporters.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:53 am Deora FM meet to talk fuel price risePetroleum Minister Murli Deora will meet Finance Minister Pranab Mukherjee on Sunday to finalise the details of the fuel price hike proposal.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:51 am EU deal to rescue GreeceEuropean leaders have reached a deal to provide aid to Greece, EU president Herman Van Rompuy said on Thursday, in an unprecedented move to stave off a broader crisis in the 16-nation bloc that shares the euro.Source: HindustanTimes.com - Top Business News Headlines | 11 Feb 2010 | 9:49 am
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