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LT hopes to foray into insurance biz soonEngineering and construction group Larsen and Toubro after having bought DBS Cholamandalam for Rs 45 crore and renaming it LT Mutual Funds is now hoping to foray into the insurance business soon, says its Wholetime Director and Chief Financial Officer, YM Deosthalee.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 7:31 am Rural BPOs: The next big opportunity?From agriculture to data servicesthe shift may not be as rough as youd think. Desicrew has proved that BPOs can boom just as powerfully in the countrys interiors as in the metros. And that benefits abound.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 7:14 am Budget 2010: Need a roadmap for GST, says Hero HondaIn an exclusive interview with CNBCTV18, Pawan Munjal, Managing Director, Hero Honda, speaks about his expectation from Budget 2010.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 6:09 am Adani Power aims to generate 13200MW by Mar \'14Adani Power is pursuing a power generation capacity of 13,200 megawatts (MW) and hopes about 6,600 MW of power would be operational by March 2012 and the balance 6,600 MW by March 2014, Director Ameet Desai told CNBCTV18 in an interview.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:37 am UIDAI calls for quotations for first IT contract: SourcesThe Unique Identification Authority of India (UIDAI) has issued the request for quotation (RFQ) for its first IT contract for application development services, reports CNBCTV18 quoting sources. It is also being learnt that the authority is likely to issue two more RFQs by next month.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:24 am Daily interest deposits to dent margins by 12 bps: BoBThe Reserve Bank of India (RBI) on Friday asked banks to pay interest to savings account holders on a daily basis. RK Bakshi, Executive Director of Bank of Baroda, said the daily interest calculation rule is expected to impacted net interest margins (NIMs) to the tune of 12 basis points (0.12%).Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:21 am Flawless Diamond bags Rs 256 million order from DubaiFlawless Dimaond (India) Ltd said on Monday it received an export order for cut and polished diamond and designer jewellery from CADAZ FZCM Dubai worth 256 million rupees.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:19 am HCL Tech signs 5 yr IT management deal with ElectroluxIT services provider HCL Technologies Ltd said on Monday it signed a fiveyear IT infrastructure management deal with home appliance major Electrolux.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:19 am LIC eyes Rs 176000cr premium in FY10Insurance companies have been the biggest buyers of equities through 2010 so far. In an exclusive interview with CNBCTV18, TS Vijayan, Chairman, LIC, says from April to January, LIC has invested Rs 51,000 crore in the equity markets. We will be investing around Rs 5,00010,000 crore more in the markets in this financial year.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:11 am Patni pins hopes on clearer tax reform policySurjeet Singh, Chief Financial Officer, Patni expects the government to remove ambiguities and draft a clearer tax reform policy.Source: Moneycontrol Top Headlines | 22 Feb 2010 | 5:05 am Sensex ends flat - Business Standard
Source: Business - Google News | 22 Feb 2010 | 3:03 am Subscribe to United Bank of India IPO Prabhudas Lilladher - Moneycontrol.com
Source: Business - Google News | 22 Feb 2010 | 2:57 am Honda sales to cross 15 lakh mark in 2010-11Honda Motorcycle and Scooter India Ltd today launched its new 'CB Twister' here today.Source: India Business News | Business News - Times of India | 22 Feb 2010 | 2:40 am Govt to aim for higher growth, focus on food securityNEW DELHI (Reuters) - India's economy will accelerate in the coming years as it recovers from the global downturn and the government will act to protect the poor from the impact of food inflation, the president said on Monday.Source: Reuters: Money News | 22 Feb 2010 | 2:24 am Govt could borrow more in FY10, FY11 - NomuraMUMBAI (Reuters) - A shortfall of revenues this fiscal year could force the government to possibly borrow more in March, while gross federal borrowing in the coming fiscal year will also be higher than in the current, Nomura said in a note.Source: Reuters: Money News | 22 Feb 2010 | 2:23 am Super Luxury realty arrives in AhmedabadThe scheme is on the outskirts of the city near Thaltej. The developer is expecting to launch many more schemes of the same type in the city within the R2 zone.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 2:14 am Rupee strengthens tracking Asia peers, stocksMUMBAI (Reuters) - The rupee strengthened on Monday, boosted by gains in other Asian currencies and domestic shares.Source: Reuters: Money News | 22 Feb 2010 | 2:13 am MRPL to revamp diesel unit, raise capacityNEW DELHI (Reuters) - Mangalore Refinery and Petrochemicals (MRPL) will shut its diesel hydro desulphurisation unit for up to 35 days from Friday for revamp, leading to a marginal decline in its crude processing, its managing director said on Monday.Source: Reuters: Money News | 22 Feb 2010 | 2:08 am BPCL makes first buy from ConocoPhillipsReuters had last month reported that ConocoPhillips Co may depart from its conservative approach in a bid to grab a bigger chunk of global oil and refined products trading.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 2:07 am UBI’s Rs330 cr IPO to begin tomorrow; price band Rs60-66 per shareNew Delhi: Public sector lender United Bank of India (UBI) will hit the capital market on Tuesday with an initial share sale offer to raise up to Rs330 crore. The bank will come out with an initial public offer (IPO) of five crore shares, which will lead to the government stake dilution of about 15.8%. The issue would close on 25 February. Post the issue, the government stake in UBI would come down to 84.2% from the existing 100%. The company has fixed a price band of Rs60-66 a share for the IPO and if fully subscribed the government could mop up up to Rs330 crore at the higher end of the price band. Brokerages feel the IPO valuation has been fixed at somewhat a discount that the peer group. “The discount in valuation seems to be justified on account of weak asset quality, muted core profit growth and strained margins when compared to peers,” Sharekhan said. Of the five crore shares, 4.75 crore would be the net issue to the public and the remaining 25 lakh would be reserved for employees. Besides, the retail shareholders would get a discount of five per cent over the issue price. The bank would utilise the proceeds to expand its balance sheet and augment its capital base. UBI and Punjab & Sind Bank are the only two unlisted nationalised PSU lenders. While the government listed 19 PSUs on the stock exchanges several years ago, UBI will get listed nearly 40 years after it was nationalised in 1969. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 2:07 am Power & infrastructure sectors may benefit from the budgetHopeful investors' wishlist includes abolition of STT and cut in short-term capital gains tax & dividend distribution tax.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 2:06 am TAKE A LOOK-India's federal budget expectations - Reuters India
Source: Business - Google News | 22 Feb 2010 | 2:05 am Sterlite wins $160 mn power project for northeast - Sify
Source: Business - Google News | 22 Feb 2010 | 2:04 am New airstrips, helipads on the anvil in GujaratThe Gujarat government's new civil aviation policy shall focus on intra-state connectivity and on improving the airstrips and helipads in the state.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 2:03 am Economic growth to accelerate: PresidentNew Delhi: India’s economy will accelerate in the coming years as it recovers from the global downturn and the government will act to protect the poor from the impact of food inflation, the President said on Monday. Pratibha Patil said the economy was likely to grow about 7.5% in the current fiscal year ending in March, and the government would aim for annual growth rate of 8% in the next fiscal year and 9% in 2011-12. “It is imperative that as our economy grows apace, the disadvantaged sections of society be made part of the Indian success story,” Patil said in a speech opening the budget session of Parliament. Also Read |Run-up to Budget 2010 Asia’s third-largest economy is recovering, with factory output surging, but food prices are growing at the fastest pace in 11 years and the government fears a backlash from millions of rural poor who are its main voters. The President’s annual speech, which lays down the priorities of the government for the year, reflected those concerns over inflation as food prices keep rising at an annual rate of nearly 20%, primarily because of a poor summer harvest. “In the longer term, our food security can be ensured only through sustained efforts at increasing agricultural productivity combined with a comprehensive reform of the public distribution system and open market intervention,” Patil said. “My government is committed to bringing forth legislation to ensure food security.” Rising prices have sparked opposition-backed street protests and left the government little elbow room to push through financial reforms such as easing fuel price controls. But the ruling Congress party faces no risk of losing power anytime soon. The Prime Minister’s Economic Advisory Council last week said surging food prices threatened to fan broader inflation and endanger the economic recovery. Signs of divergence in views between the government and central bank over the best policy balance have emerged, with the bank increasingly concerned about inflation while the government insists policy focus must remain on economic recovery. With growing evidence of economic recovery, including a record 16.8% jump in factory output in December, the government is under pressure to rollback the fiscal stimulus deployed to soften the impact of the global financial crisis. The government has signed off about Rs1.86 trillion ($40 billion) in tax concessions and a further $4 billion in new spending since 2008, straining the deficit and borrowing. Analysts expect finance minister Pranab Mukherjee to announce the expiry of some of the emergency measures in the budget speech as he looks to cut the fiscal deficit, which is on track to balloon to a 16-year high in the current financial year. Patil did not mention stimulus withdrawal in his speech. The speech also made no reference to a government panel’s recommendation to remove or relax price controls on various fuels, possibly signalling that the government believed Indians were not ready yet to pay the cost of market liberalization. Source: Home - Livemint.com | 22 Feb 2010 | 2:02 am Man Infraconstruction IPO subscribed 13 times - Moneycontrol.com
Source: Business - Google News | 22 Feb 2010 | 2:00 am Pak defence budget set to increase by at least Rs13,000 cr Islamabad: Pakistan’s defence budget is set to increase by at least Rs13,000 crore due to ongoing military operations against militants and increased salaries for military personnel, a media report said here on Monday. By June this year, Pakistan’s defence expenditure might rise to Rs20,500 crore because of the military operations and increased salaries for the armed forces. However, the country could project an increase of Rs13,000 crore in the defence expenditure during talks with the International Monetary Fund (IMF). This could pave the way for achieving broader consensus with the IMF for increasing the fiscal deficit target up to 5.1% of GDP, from the earlier envisaged target of 4.9%, The News daily reported. A senior government official, who took part in the recently concluded talks between Pakistan and the IMF in Dubai, said that the fiscal target was allowed to grow due to increased expenditure on security and rising subsidies during the current fiscal year. The Pakistan government last month allocated an additional Rs3,500 crore for the 2009-10 defence budget due to expenses on anti-militancy operations and the need to acquire modern equipment to counter a perceived threat from India. Following the additional allocation, Pakistan’s defence budget increased to about Rs37,800 crore. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 2:00 am PowerGrid Corp. FPO expected by SeptemberNew Delhi: State-owned PowerGrid Corp. would hit the market with its follow-on public offer to raise Rs3,500 crore by September this year. “We have sent the proposal to the power ministry and now they will send it to the finance ministry. So it (FPO) can be expected by September,” PowerGrid chairman and managing director S.K. Chaturvedi told reporters. The company plans to raise fresh equity of about 10% to fund its expansion plans and is hoping to mop up Rs3,500 crore from the follow-on offer. PowerGrid is engaged in building transmission network throughout the country. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:56 am Gold buying stays weak for 2nd day, rupee helpsMumbai: India’s gold-buying was slack for a second day running as the yellow metal jumped to its highest level in a month, but a strong rupee aided sentiment, dealers said on Monday. “Market is very dull today, I managed to just execute 35 kg on Friday,” said a dealer with a state-run bank in Mumbai. Gold trading in banks, the primary dealer of bullion, was shut on Saturday and Sunday. “Volumes are thin as prices have moved up, rupee, though, is in helping mode,” said a dealer with a private bullion dealing bank, which quoted gold at Rs16,600 per 10 grams. International gold, which guides the domestic market, jumped to its highest in a month as the U.S. dollar took a breather from a recent rally and fund-buying picked up after the euro gained on talk about a speedy bailout for debt-ridden Greece. Spot gold was trading at $1,126.5/1,127.3 an ounce, after hitting a high of 1,131.45 an ounce, a level last seen on 20 January. “Some of my orders have been placed on Friday at $1,100,” said the state-run bank dealer. However, dealers said, a strong rupee kept the upside restricted in the yellow metal. The Indian rupee strengthened, boosted by gains in other Asian currencies and domestic shares. Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15pm. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:53 am L&T launches asset management companyIndian engineering and construction firm Larsen & Toubro said on Monday it plans to expand the network of its newly launched asset management company L&T Investment Management.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:49 am BPCL makes 1st buy from ConocoPhillipsNEW DELHI (Reuters) - Bharat Petroleum Corp has made its first purchase from ConocoPhillips, trade sources said, a move signalling the U.S. oil major's plan to broaden its markets.Source: Reuters: Money News | 22 Feb 2010 | 1:49 am Japan's Dai-ichi Life Insurance plans for $11.7 billion IPODai-ichi Life, which is planning to list on the Tokyo Stock Exchange on April 1, said it would sell more than 7 million shares at a tentative price of 150,000 yen each.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:48 am HCL Tech inks 5-yr pact with Electrolux - Economic Times
Source: Business - Google News | 22 Feb 2010 | 1:48 am HDIL inks pre-lease deal with Future GroupMumbai: Realty major, HDIL, and the Kishore Biyani-led Future Group have agreed on a pre-lease for the entire retail space at Metropolis Tower in suburban Andheri. The project has over a million square feet mixed use development of which 10% area has been leased to the Future Group, a press release issued here today stated. Metropolis Tower, a prime mixed-use development, has office spaces, retail, entertainment and hospitality and is located in the affluent locality of 4 Bungalows. Metropolis Tower is located next to the upcoming metro station. “Centrally located within the upscale residential and business districts of 4 Bungalows, Versova and Lokhandwala, Metropolis Tower will be an iconic landmark that will cater to all business, entertainment, retail and F&B needs of this prime area,” the release said. “We are extremely pleased to welcome the Future Group into Metropolis Tower. The very brand denotes a varied shopping experience that will capture the entire locale,” HDIL’s managing director, Sarang Wadhawan, said. “Metropolis Tower is built on a formidable grid of planning and we are sure that it will soon be a premium business and entertainment destination in the city. This deal signifies that the commercial and retail real estate are on an upswing and the real estate market has significantly recovered post correction,” Wadhawan said. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:48 am MRPL to revamp diesel unit, raise capacityNew Delhi: “Mangalore Refinery and Petrochemicals (MRPL) will shut its diesel hydro desulphurisation unit for up to 35 days from Friday for revamp, leading to a marginal decline in its crude processing,” its managing director U.K. Basu said on Monday. “Output of Euro-II and Euro-IV-compliant diesel will come down due to the shutdown. Our crude throughput will also decline marginally,” Basu said. The revamp will enable the state-run refiner to raise the capacity of its 1.4 million tonnes-a-year diesel unit in southern India by 30% and to produce superior quality diesel. MRPL sells most of its refined products to state refiners to meet local demand. While India has decided to adhere to an April deadline for the Euro-IV launch in major cities, it has staggered the roll out of Euro-III specifications in the rest of the country till October. Basu said that he saw no drastic change in its term crude import deals in the 2010-11 financial year versus the current fiscal year, ending in March. “There will not be a major change in our strategy for next year. No drastic change. We were already procuring more crude as our refinery operates at about 12.4 million tonnes a year,” he said. Other than buying crude from its parent firm Oil and Natural Gas Corporation (ONGC) and tapping the spot markets, MRPL has term deals to import crude from United Arab Emirates (UAE), Iran, Saudi Arabia and Abu Dhabi. MRPL recently raised declared capacity of its coastal plant in the Southern Karnataka state by nearly 22% to 236,400 barrels per day. Source: Home - Livemint.com | 22 Feb 2010 | 1:46 am Toyota to temporarily halt production in UK, FranceThe world's largest carmaker will halt assembly at its car factory in Britain for a total of eight days from late March to early April. Toyota did not specify the number of days it would halt output in France.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:44 am INTERVIEW - Govt to make mines pay more for displaced peopleNEW DELHI (Reuters) – The government plans to raise the compensation paid to people displaced by large mining projects, the mines minister said on Monday.Source: Reuters: Money News | 22 Feb 2010 | 1:44 am Cinevistaas forays into southern regional content productionAs part of its foray into southern regional TV space of content providers, Cinevistaas Limited promises to bring interesting content and programming of international production quality.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:39 am BPCL makes 1st buy from ConocoPhillipsNew Delhi: Bharat Petroleum Corp made its first purchase from ConocoPhillips, trade sources said, a move signalling the US oil major’s plan to broaden its markets. Reuters had last month reported that ConocoPhillips Co may depart from its conservative approach in a bid to grab a bigger chunk of global oil and refined products trading. BPCL has bought 30,000 tonnes of Euro IV diesel from ConocoPhillips for 18-22 March delivery at the Chennai port in Southern India at a premium of $4.60 a barrel to Middle East quotes, the sources said. The state-run refiner has also bought 55,000 tonnes of 500 parts per million (ppm) diesel from PetroChina via two parcels for March deliveries. MRPL has bought a 30,000-tonne Euro II-compliant diesel for delivery at the Chennai port at a premium of about $4.30 a barrel and another 25,000 tonne at about $4.60 premium a barrel, both to Middle East quotes, at Paradeep, in India’s east coast. All deals are on delivered basis. A BPCL spokesman declined comment on the deals, while sellers could not be reached for comments. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:33 am Rupee strengthens tracking Asia peers, stocksMumbai: The Indian rupee strengthened on Monday, boosted by gains in other Asian currencies and domestic shares. At 2:20pm, the partially convertible rupee was at Rs46.170/175 per dollar, after hitting a high of Rs46.06, versus Friday’s close of Rs46.30/31. Indian shares were trading 0.7% higher, while the South Korean won and Indonesian rupiah led Asian currencies higher on Monday as risk appetite rose on talk of a quick bailout for Greece and reduced expectations of an earlier-than-expected US rate hike. The dollar slipped on Monday as investors reassessed the chances of a earlier-than-expected interest rate hike by the Federal Reserve, while the euro was lifted by speculation of a quick bailout for Greece. The index of the dollar against six majors was down 0.1%. Support for the rupee is seen at Rs46.00, traders said, adding that the rupee could go to 45.80 if this breaks. One-month offshore non-deliverable forward contracts were quoting at Rs46.15/25, little changed from the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both quoting at Rs46.1775. Source: Home - Livemint.com | 22 Feb 2010 | 1:27 am HCL Tech inks 5-year pact with ElectroluxNew Delhi: IT major HCL Technologies on Monday said it has signed a five-year IT infrastructure management contract with home appliances maker Electrolux. As part of the deal, HCL will support Electrolux’s workplace services including proactive monitoring and management of network, servers, IT security and end-user computing environment in the Asia Pacific region, including Australia, HCL Technologies said in a statement. The deal size was, however, not disclosed. “We wanted to offer standardized service to Electrolux operations in Asia Pacific without increasing costs. In HCL, we found a partner that understands standardization of services and has an ability to support the business locally across the region,” Electrolux Group chief information officer Bertil Norberg said. HCL will deliver these services through its centres in India and Malaysia. It will also provide multilingual helpdesk services in English, Vietnamese, Thai and Bahasa (Malaysia and Indonesia). Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:25 am Indian govt can comfortably fund fiscal deficit: Goldman SachsFinance minister Pranab Mukherjee will unveil the budget on Friday, which will contain fiscal deficit and borrowing targets for 2010-11.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:18 am Nikkei hits 3-week closing high, exporters climbThe benchmark Nikkei gained 276.89 points to 10,400.47, its highest finish since February 3. The index lost 2.1% on Friday. The broader Topix added 2.3% to 909.75.Source: Daily News & Analysis: Money News | 22 Feb 2010 | 1:14 am Nissan to open manufacturing facility in Chennai in MarchBangalore: Japanese car maker Nissan on Monday said it will open its manufacturing facility in Chennai developed jointly with Renault next month, from where it will roll out the latest generation of its compact car ‘Micra’ for the Indian market. “The facility will be inaugurated by chairman and CEO of Renault-Nissan alliance Carlos Ghosn on 17 March,” a company official said. The Chennai plant is developed by Renault-Nissan Automotive India Pvt Ltd, a joint venture between Renault-Nissan alliance with an investment of Rs4,000 crore with a capacity to produce four lakh units annually. According to industry sources, Nissan will roll-out the latest generation Micra from the plant in May for the Indian market. The official, however, declined to comment on the model of the car saying, Nissan’s global plans for the compact car that will be manufactured in five countries including India, will be announced at the upcoming Geneva Motor Show in March. Earlier Nissan has said, it will shift production of Micra in the UK to India which will be used as export base for the company. For the domestic market, Nissan had announced that it plans to have nine models in India by 2012, out of which five would be manufactured locally. Currently it sells only two models, the Teana sedan and SUV Xtrail in India. Nissan had said it aims to achieve a market share of 5.5 per cent in India in the future, which is equivalent to the global market share of Nissan. The Indian car market is at over 1.2 million units currently. Source: LatestNews-Home - Livemint.com | 22 Feb 2010 | 1:03 am Buy Shree Renuka target of Rs 270 Karvy - Moneycontrol.com
Source: Business - Google News | 22 Feb 2010 | 12:59 am Power cos for easier imports, higher govt spendMumbai: Power producers expect the federal budget to reduce duties on coal imports to top up scarce domestic coal supply in a country where more than half the power plants are coal-fired, industry players and analysts said. “Power project owners expect a cut in the import duty on the coal, which is at 5% at present. This will significantly reduce their fuel bills,” an analyst with a Mumbai-based brokerage said. The move is expected to benefit importers including JSW Energy, Adani Power and Tata Power, Rupesh Sankhe, analyst at Angel Securities, said. They also expect a higher spending on federal government’s flagship schemes, namely Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP), to spur growth in the power sector. Excise duty, which was lowered from 12%t to 8% under the stimulus package, could be raised by at least 2 percentage points to mop up additional revenue for bridging the fiscal deficit, a Mumbai-based analyst said. Also Read | Mint’s budget coverage But not many are overly worried about that. “The case for investing in India’s power infrastructure is extremely strong. So, partially withdrawing temporary benefits which were conferred under stimulus package, is not going to impact the industry very adversely,” said Vardhan Dharkar, chief financial officer of KEC International. Power project developers are eyeing an extension of income tax exemption under clause 80 IA beyond 2010-11, which analysts say is most likely, considering a 12 percent peak power deficit and a crying need for private investment in the sector. A recent government panel report suggested the imposition of a 14% duty on imported power gear to safeguard interests of domestic gearmakers. “There is a 15-20% disadvantage for Indian manufacturing. In order to give a level playing field, definitely there is a need for the duty to be put in,” Murali Venkatraman, president of Indian Electrical and Electronics Manufacturers’ Association (IEEMA) said. But private power plant owners say domestic generation equipment are in short supply and a duty on imports will penalise them if they source from overseas. This will jeopardise India’s massive capacity addition programme, they say. Source: Home - Livemint.com | 22 Feb 2010 | 12:42 am Toyota memo raises stakes for chief's U.S. hearingsTOKYO/WASHINGTON (Reuters) - A document claiming Toyota Motor Corp saved over $100 million by getting U.S. regulators to agree a cheap fix for unintended acceleration problems raised pressure on the company's president as he arrived in Washington to prepare for a grilling from congress.Source: Reuters: Money News | 22 Feb 2010 | 12:34 am Swastika recommends REC FPO for long term - Economic Times
Source: Business - Google News | 22 Feb 2010 | 12:33 am Asia shares jump, euro firms on Greece reportHong Kong: Asian stocks leapt to their highest in nearly a month on Monday as risk appetite improved on talk of a quick bailout for Greece and as investors looked past the Federal Reserve’s discount rate hike to signs of strength in the US economy. The euro edged higher after German magazine Der Spiegel reported at the weekend that Germany’s finance ministry had prepared a bailout plan for debt-laden Greece in which euro zone countries would provide aid worth 20 billion to €25 billion. European stock index futures pointed to a slightly higher open as markets waited to see if a rescue plan would really materialise, while US stock futures rose 0.3%. A pause in the dollar’s rally spurred gold to its highest level in a month and helped oil prices to a six-week high. The MSCI index of Asian stocks traded outside Japan rose 2.2%, at one point hitting its highest level since Jan 26, helped by shares in the materials and energy sectors as commodity prices pushed higher. “Positions have been significantly unwound and are very light across most asset classes,” said Peter Redward, head of Emerging Asia Research, Barclays Capital, referring to recent market jitters about Greece and concerns about monetary tightening globally. “That means potentially if we get a period of good news, we could see markets run for a little while.” Japan’s Nikkei stock average rose 2.7% to its highest close in three weeks. The rally was led by exporters whose shares were boosted by a weak yen amid recent dollar strength. “Investors on Friday were worried about the impact of the US discount rate hike on Wall Street, but US markets in the end were quite settled,” said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities. The Fed said late on Thursday that it would raise the interest rate it charges banks for emergency loans to 0.75% from 0.5%, taking a step towards normalising emergency policy used to fight the worst financial crisis since the Great Depression. Asian stock markets fell heavily on Friday in the first global reaction to the move, but after initial nervousness US investors preferred to view it as a sign that the economy was healing, helping stocks on Wall Street close out their best week of the year. Asian share markets were also buoyed by a relatively calm start in Chinese markets as they re-opened after a week-long holiday and had their first chance to react to a surprise central bank tightening move on 12 February. Markets had feared a heavy selloff in Shanghai after the People’s Bank of China raised banks’ reserve requirements for the second time this year, but China’s key stock index was little changed for much of the day before ending down 0.5%. Hong Kong’s benchmark Hang Seng Index rose 2.3%, lifted by consumer-sector focused China Resources Enterprise amid signs of stability in Chinese markets and oil producer CNOOC which rose on firmer oil prices. South Korean shares ended a two-day losing streak with the benchmark index up 2%, boosted by rebounds in the technology and financial sectors. “Asian markets at these levels are quite cheap and there is reasonable good growth in the region over the next 1-2 years so we think that these levels are buying levels,” said Khiem Do, head of the Asia multi-asset group at Baring Asset Management, which oversees $50 billion. “We still like North Asia -- Taiwan, South Korea and China.” The euro jumped as much as 0.3% to $1.3655, before surrendering gains to trade marginally firmer at 1.3620. The currency struck a nine-month low of $1.3443 on trading platform EBS on Friday after the Fed announced its decision to raise the discount rate. But analysts do not expect a quick resolution to Greece’s problems, despite the initial optimism in markets. “Bear in mind the Europeans have not given us specifics -- there is still room for disappointment. It will simmer away in the background as a concern for the markets,” said Redward. The dollar index, which measures the dollar’s value against a basket of currencies, dipped 0.2% to 80.469, having retreated from an eight-month high of 81.342 hit on Friday. The dollar’s decline helped push up oil prices, which were already gaining on concerns about an extended refinery strike in France and escalating tensions over Iran’s nuclear program. Oil prices rose 45 cents to above $80 a barrel, the highest since 13 January. Source: Home - Livemint.com | 22 Feb 2010 | 12:27 am IT cos shift banking loyalties for better interest ratesStrict preference for public sector banks, over private ones, seems to be waning among Information Technology (IT) companies, with huge cash piles to place in depositSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Lanka IOC kept tap running by RIL supplyAlmost 75 per cent of Lanka IOC Plc's petrol and diesel demand for the first six months of the current fiscal has been met by Reliance Industries LtdSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Corporate bonds out of reach for pension fundsCorporate bonds appear to be out of reach for fund managers of the New Pension Scheme for the unorganisedSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am India tops in output of one in eight agri commoditiesThe global commodity market catches a cold if India sneezes. Not surprisingly, the country tops in the output of one in every eight agricultural commodities produced in theSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Shree Renuka Sugars to buy 51% in Brazilian co for Rs 1,530 crShree Renuka Sugars Ltd on Sunday announced the acquisition of 51 per cent stake in Equipav S.A. Acucar e Alcool (Equipav), one of the largest sugar and ethanol companies in Brazil, for Rs 1,530Source: Business Line - Home Page | 22 Feb 2010 | 12:00 am Day Trading GuideFresh long position is recommended only if ICICI Bank jumps above Rs 840, with stiffSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Volatility to rule the roostEquity market this week may turn volatile ahead of the 2010-11 Budget onSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Dalmia Cement – BuyInvestors with medium-term perspective can consider buying the stock of Dalmia CementSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Monsoon likely to be normal, says US forecasterThe International Research Institute (IRI) for Climate and Society at Columbia University is the latest forecasting agency to affirm enhanced probability for a largely ‘normal' monsoon for India thisSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Study shows large-cap funds are better bet for long-term investmentIf you are looking to outperform the indices, then plan to hold your equity fund for the long term and stick to funds that invest in blue-chipSource: Business Line - Home Page | 22 Feb 2010 | 12:00 am Fame shares surge on Reliance bid, may see price war - Reuters
Source: Business - Google News | 21 Feb 2010 | 11:38 pm Obama has insurers in sight as he sets health planWASHINGTON (Reuters) - President Barack Obama will pitch his bid to revamp the U.S. healthcare system as a way to control big insurance company rate increases when he releases his healthcare plan on Monday, the White House said.Source: Reuters: Money News | 21 Feb 2010 | 11:30 pm Fame shares surge on Reliance bid, may see price warMumbai: Shares in cinema operator Fame India Ltd surged on Monday after Reliance MediaWorks made a counter bid acquire a majority stake in it at a steep premium, sparking expectations of a price war. Reliance on Monday made a competitive bid for a 62.08% stake at Rs83.40 a share, 63.5% higher than an offer by Inox Leisure for 20% equity at Rs51 a share. Inox already holds 50.48% in Fame. “Fame is an established player, strategically located with sound management control. So buyers will have to pay a premium for that. We could see a price war,” Ankit Kedia, analyst at Centrum Broking, said. The Indian multiplex industry is in a consolidation phase as operators seek to increase their share of revenue from film makers and maximise footfalls. Last November, PVR Ltd said it would buy the cinema exhibition business of DLF for Rs200.2 million. “This business is very cyclical and highly capital intensive. So, there is always a risk for over-paying,” Apurva Shah of Prabhudas Lilladher, said Fame, which launched its first multiplex in Mumbai, has 25 cinemas, operating 95 screens in 12 cities across India. It plans to roll-out at least 9 more screens in 2009-10, its website showed. “As far as just bidding it higher is concerned, Reliance can go ahead and do it but it will not result in any major changes in the ownership of the company as Inox already holds more than 50% in Fame,” Prabhudas Lilladher’s Shah said. A senior official at Inox could not be immediately reached for a comment. Shares of Fame, valued at $62 million, rose 5%, the daily permissible limit, to trade at Rs86.45. Bidding war Analysts said Fame had foreign currency convertible bonds coming up for redemptions next year, which could get converted into equity, given the current run-up in the stock price. “The way the stock price is moving up, we believe the company’s FCCB can get converted into equity, leading to a fall in Inox’s shareholding,” a sector analyst at a Mumbai-based brokerage said. “This will prompt Inox to bid higher and pick up further stake,” she added. Fame has debt of about Rs1.4 billion, of which about Rs850 million were in FCCBs. However, analysts maintain the deal is a very expensive. “You can do up the interiors, give it a brand name, raise ticket prices... there is a big leverage for these acquirers. Still, at the current rate, it is expensive,” Centrum’s Kedia said. Fame India trades at a 12-month forward price to earnings multiple of 330, according to StarMine SmartEstimates that assigns weights to analysts based on their forecast history and calculates the weighted average of their estimates. This is very expensive compared with a multiple of 13-16 for peers Inox, PVR and Cinemax, the data showed. ICICI Securities is the offer manager to Reliance Capital while Enam securities is the merchant banker for Inox. At 11.06am, shares in Reliance Media were up 0.8% at Rs221.8 while Inox rose 11.7% at Rs75.2 in a firm Mumbai market. Source: Home - Livemint.com | 21 Feb 2010 | 11:12 pm Reliance Raises Bid for LyondellBasell - Wall Street Journal
Source: Business - Google News | 21 Feb 2010 | 10:57 pm Rajeev Maheshwari appointed Wall Street Finance CEOForex services provider Wall Street Finance Ltd today said Rajeev Maheshwari has been appointed as the Chief Executive Officer of the Company.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 10:45 pm Media Roundup: 22 February 2010Financial Express: India needs reforms to meet challenges This budget 2010, the finance minister will have to focus on various issues to keep India on the high growth trajectory. The Hindu: Impact of recent policy measures on banking In the goal of increasing infrastructure spending to more than 9 per cent of GDP by 2014, Harsh Bisht, the India Leader for Banking and Capital Markets Practice in PricewaterhouseCoopers, sees a major positive for banking. The Hindu Business Line: Volatility to rule the roost Equity market this week may turn volatile ahead of the 2010-11 Budget on Friday. The sentiment, even though the benchmark index posted gains last week, has tuned negative on fears that pressure of ballooning inflation and fiscal deficit may force the Government to make uneasy compromises. Apprehension is also lurking that interest rate may firm up before expected. The Hindu: Focussing on fiscal consolidation The Prime Minister’s Economic Advisory Council’s Review of the Economy 2009-10, coming as it does just a few days before the Union Budget, is particularly significant this year. The EAC has brought up to date the major macroeconomic trends, a task that will be carried forward by the Economic Survey and the budget. The Financial Express: Rationalise taxes, reduce STT & stamp duty: Investors With just five days remaining for the presentation of Union Budget 2010-11, the capital market is expecting the finance ministry to address their demands. And once again, on top of the list is the reduction of Securities Transaction Tax (STT) and stamp duty apart from rationalisation of taxes to ensure a level playing field for all market participants. The Financial Express: The Budget getting more clarity The euphoria of the gains from 2009 is beyond investors. And there are new fears that grip the equity market. Domestically, inflation is catching up and the pressure on the government to exit the stimulus package are ever increasing. The Financial Express: IT sector looks for additional tax benefits The country’s IT services and BPO firms, that have been facing tough time with client budget cuts and increasing political pressure in the US and Europe, are looking forward to additional tax benefits in the Union Budget 2010-11. The Financial Express: Futures markets have a lot to expect from the Budget More than any other time, this decade promises to make commodities central to global economies. India can be at the centre of the commodities universe as a large producer and consumer of several commodities. Economic Times: India Inc confidence recedes as rollback clamour grows India Inc’s business confidence level, which showed signs of improvement in past three quarters after a year of economic slowdown, has ebbed again on fears that the government will withdraw the stimulus package in the upcoming budget, says a survey by industry body Ficci. Economic Times: Budget 2010: It’ll be fiscal prudence & growth Budget 2010 may disappoint those who are expecting major policy announcements or for that matter the stock markets but the annual February exercise this year will, perhaps, be the keystone for India’s future growth story. Business Standard: Fast on some, stuck on others - Pranab’s mixed bag Finance Minister Pranab Mukherjee had made 45 major announcements in his Budget speech for 2009-10. As he prepares to present his next Budget for the United Progressive Alliance (UPA) government on February 26, Mukherjee may well pat himself on the back for having fulfilled almost four-fifths of the promises he had made less than eight months ago. Bsuiness Standard: Fiscal reform likely to top the Budget agenda As Finance Minister Mukherjee prepares to deliver his second budget in the midst of competing expectations of stakeholders, it will be interesting to observe his approach and policy directives for achieving balanced growth keeping in line with economic realities. Business Standard: Expectations from Budget for indirect tax Now that Budget 2010 will soon be upon us, it is worthwhile to look at what it could hold in place with regard to proposals on indirect taxes. This article seeks to do some crystal ball gazing. Business Standard: Sanjaya Baru: The Pranab Mukherjee Budget After more than a quarter century, finance minister Pranab Mukherjee will be presenting this week what he could finally claim is “his” Budget to Parliament. In his first stint as finance minister, in the early 1980s, the shadow of Indira Gandhi would have loomed large for such a claim to be made at the time. Business Standard: Tightrope walk Maintaining a balance between growth and fiscal discipline will be the Finance Minister’s key challenge. Will he deliver? Unlike last year, when India’s economic growth had decelerated amid the global crisis, the Finance Minister faces a trickier task this time around-- that of maintaining growth and lowering fiscal deficit. In 2009, the focus was on improving growth. The Hindu Business Line: Anxious signals from telecom From a tax perspective, what the telecom sector expects from Budget 2010 is a simplified tax regime, says Naveen Aggarwal, Executive Director, KPMG. Source: LatestNews-Home - Livemint.com | 21 Feb 2010 | 10:45 pm Suzuki quarterly profit jumps, lifts outlookTokyo: Suzuki Motor Corp and Mazda Motor Corp, Japan’s fourth- and fifth-biggest car makers, hiked their annual profit forecasts on Friday as they enjoyed higher demand in some markets and cut costs. Suzuki and Mazda, like other automakers globally, have been slashing fixed costs and boosting production efficiencies to cope with the global economic slowdown, while getting a boost from government incentives on purchases of fuel-efficient cars. Suzuki, owned 19.9% by Germany’s Volkswagen AG following a deal struck in December, has profited from strong sales in India’s fast-growing market, where it is the top player through subsidiary Maruti Suzuki. Suzuki raised its operating profit outlook for the full year to March to ¥50 billion ($558.2 million) from ¥40 billion, though that falls short of the consensus of ¥66 billion from 14 analysts surveyed by Thomson Reuters. “We have a very cautious outlook for the January-March quarter because of concerns on the yen rate and an unclear economic outlook,” a Suzuki spokesman said. “The heavy reliance on India’s car market is a risk.” Suzuki, known for its Swift and Alto hatchback cars, reported a ¥17.99 billion ($201 million) operating profit for October-December, compared with a ¥5.78 billion profit a year earlier and roughly in line with market expectations. Maruti Suzuki said last month that its third-quarter net profit had more than tripled on improved sales. Suzuki holds 54.2% in Maruti and counts India as its single biggest market. Mazda slashes costs Mazda reported an operating profit of ¥11.1 billion for the October-December quarter, a large swing from its ¥24.2 billion loss a year earlier. Sales surged nearly 9% to ¥557.5 billion. The maker of the Mazda3 compact car lifted its full-year operating forecast to a profit of ¥5 billion from a loss of ¥12 billion, against the consensus from 11 analysts for a profit of ¥1 billion. Mazda said sales were strong in markets such as China, Australia and Israel, and that it got a boost from a softer-than-expected yen against the British pound and Australian dollar. Mazda has also been cutting costs by becoming more efficient at procuring raw materials, and slashing bonuses and labour costs by holding down overtime hours, a spokesman said. Prior to the results, Suzuki’s shares closed down 2.1% at ¥2,031 and Mazda fell 4.9% to ¥233, both underperforming a 1.3% fall in Tokyo’s transport equipment subindex. In the past 3 months Suzuki’s shares have fallen 5%, Mazda is up 10% and the sector index has been virtually flat. Source: LatestNews-Home - Livemint.com | 21 Feb 2010 | 10:38 pm Toyota US hearings raises stakes for the automakerWashington/Tokyo: A document claiming Toyota Motor Corp saved over $100 million by convincing US regulators to agree a cheap fix for unintended acceleration problems raised pressure on the company’s president as he arrived in Washington to prepare for a grilling from congress. Akio Toyoda faces the biggest test of his seven-month tenure when he testifies before the US lawmakers in an effort to contain a safety crisis that threatens the reputation and continued success of the automaker in the market that made it a global powerhouse. Toyota has recalled over 8.5 million vehicles globally in recent months for problems including sticky accelerators, accelerators that can be pinned down by loose floormats and a braking glitch affecting hybrid models, including its flagship Prius. Regulators believe five deaths are associated with floor mats and are reviewing up to 29 other fatality reports to see if they are related to unintended acceleration. A 2009 internal document turned over to lawmakers and made available on Sunday shows Toyota’s Washington D.C. staff trumpeting savings of more than $100 million by convincing regulators to end a 2007 investigation of sudden acceleration complaints with a relatively cheap floormat recall. The document seems certain to add to the high-stakes debate about whether Toyota missed or ignored complaints about sudden acceleration in its vehicles and whether US safety regulators were tough enough. Toyota on Sunday reiterated that it was conducting a top-to-bottom review of all its operations. “Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong,” the company said. But the US Department of Transportation said the document highlighted Toyota’s slow response to the safety problems. “Unfortunately, this document is very telling,” said department spokeswoman Olivia Alair in an emailed statement. Toyota has launched a publicity campaign to convince current and prospective customers that the company is addressing the problems. Its US sales plummeted 16% in January and the company has estimated the recalls will cost it $2 billion at the operating level in the fiscal year ending March. Shares of Toyota rose nearly 3% on Monday, lifted by a rally on exporters as the yen slipped against the dollar. Toyoda, who is set to testify on Wednesday after initially ruling out such an appearance, has acknowledged that the automaker founded by his grandfather let its standards slip during fast growth over the past decade. The company has been tight-lipped about Toyoda’s schedule, with a spokesman declining to confirm whether its president was already in the United States. Japanese media reported he had arrived in Washington and television showed images of his private jet. Analysts said Toyoda’s appearance in Washington will be a defining moment in whether and how quickly it can move beyond its safety crisis. “Congress is doing him a favor. He can be apologetic and be contrite and take responsibility and acknowledge that there have been some stress points in growth of the company,” said Jeffrey Sonnenfeld, a Yale School of Management senior associate dean and an expert on corporate leadership. Toyota is mustering political support as well. More than 100 Toyota dealers, who are influential with Congress because of their impact on local economies, are gathering in Washington starting Monday. The line of questioning that Toyoda faces will focus in part on how the automaker and officials handled a growing number of petitions to investigate whether there was a glitch with the electronic throttles in Lexus and Toyota vehicles. Before an August 2009 crash that killed an off-duty California Highway Patrol officer and three others, Toyota had limited its action on sudden acceleration complaints to a recall of 55,000 floormats on the Camry and Lexus ES350. But the the National Highway Traffic Safety Administration also faces criticism for having done little to force Toyota to come to terms with a growing record of consumer complaints. NHTSA opened seven investigations into sudden acceleration in Toyota and Lexus vehicles between 2003 and the start of 2009 but closed five of them after concluding there was no evidence for any action. Two probes ended with floormat recalls, a far cheaper fix than the more sweeping changes to accelerator pedals that Toyota announced late last year. The July 2009 document, appears to be a briefing for Toyota’s North American chief Yoshi Inaba prepared by the automaker’s Washington staff, and cites sudden acceleration as a “key” safety issue and warns that US regulators were taking a tougher line on forced recalls. It goes on to credit Toyota’s Washington safety group with having “negotiated” a floormat recall on the Camry and Lexus ES350 in 2007, a step credited with saving over $100 million and avoiding a finding of a defect by the NHTSA. Documents subpoenaed by lawmakers and obtained by Reuters indicate insurance company State Farm reported to NHTSA in early 2004 about seven incidents of sudden acceleration involving Toyota Camry and Lexus models. Transportation Secretary Ray LaHood, who will testify on Tuesday, said the agency was looking into related complaints in December of 2003. James Lentz, president of Toyota Motor Sales USA, appears Tuesday before the House Energy and Commerce Committee along with the head of the National Highway Traffic Safety Administration, David Strickland. Toyoda’s much-anticipated appearance is scheduled for Wednesday before the House Oversight and Government Reform Committee, along with LaHood, Strickland and Inaba. Former NHTSA administrator and consumer advocate Joan Claybrook is also among witnesses listed for Wednesday’s hearing. Toyota Motor shares ended the morning session up 2.9% at ¥3,395, slightly underperforming a 3.2% gain in the benchmark Nikkei average. The stock has lost 19% over the past month but has steadied over the past 10 trading sessions. Source: World Business - Livemint.com | 21 Feb 2010 | 10:11 pm Toyota US hearings raises stakes for the automakerWashington/Tokyo: A document claiming Toyota Motor Corp saved over $100 million by convincing US regulators to agree a cheap fix for unintended acceleration problems raised pressure on the company’s president as he arrived in Washington to prepare for a grilling from congress. Akio Toyoda faces the biggest test of his seven-month tenure when he testifies before the US lawmakers in an effort to contain a safety crisis that threatens the reputation and continued success of the automaker in the market that made it a global powerhouse. Toyota has recalled over 8.5 million vehicles globally in recent months for problems including sticky accelerators, accelerators that can be pinned down by loose floormats and a braking glitch affecting hybrid models, including its flagship Prius. Regulators believe five deaths are associated with floor mats and are reviewing up to 29 other fatality reports to see if they are related to unintended acceleration. A 2009 internal document turned over to lawmakers and made available on Sunday shows Toyota’s Washington D.C. staff trumpeting savings of more than $100 million by convincing regulators to end a 2007 investigation of sudden acceleration complaints with a relatively cheap floormat recall. The document seems certain to add to the high-stakes debate about whether Toyota missed or ignored complaints about sudden acceleration in its vehicles and whether US safety regulators were tough enough. Toyota on Sunday reiterated that it was conducting a top-to-bottom review of all its operations. “Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong,” the company said. But the US Department of Transportation said the document highlighted Toyota’s slow response to the safety problems. “Unfortunately, this document is very telling,” said department spokeswoman Olivia Alair in an emailed statement. Toyota has launched a publicity campaign to convince current and prospective customers that the company is addressing the problems. Its US sales plummeted 16% in January and the company has estimated the recalls will cost it $2 billion at the operating level in the fiscal year ending March. Shares of Toyota rose nearly 3% on Monday, lifted by a rally on exporters as the yen slipped against the dollar. Toyoda, who is set to testify on Wednesday after initially ruling out such an appearance, has acknowledged that the automaker founded by his grandfather let its standards slip during fast growth over the past decade. The company has been tight-lipped about Toyoda’s schedule, with a spokesman declining to confirm whether its president was already in the United States. Japanese media reported he had arrived in Washington and television showed images of his private jet. Analysts said Toyoda’s appearance in Washington will be a defining moment in whether and how quickly it can move beyond its safety crisis. “Congress is doing him a favor. He can be apologetic and be contrite and take responsibility and acknowledge that there have been some stress points in growth of the company,” said Jeffrey Sonnenfeld, a Yale School of Management senior associate dean and an expert on corporate leadership. Toyota is mustering political support as well. More than 100 Toyota dealers, who are influential with Congress because of their impact on local economies, are gathering in Washington starting Monday. The line of questioning that Toyoda faces will focus in part on how the automaker and officials handled a growing number of petitions to investigate whether there was a glitch with the electronic throttles in Lexus and Toyota vehicles. Before an August 2009 crash that killed an off-duty California Highway Patrol officer and three others, Toyota had limited its action on sudden acceleration complaints to a recall of 55,000 floormats on the Camry and Lexus ES350. But the the National Highway Traffic Safety Administration also faces criticism for having done little to force Toyota to come to terms with a growing record of consumer complaints. NHTSA opened seven investigations into sudden acceleration in Toyota and Lexus vehicles between 2003 and the start of 2009 but closed five of them after concluding there was no evidence for any action. Two probes ended with floormat recalls, a far cheaper fix than the more sweeping changes to accelerator pedals that Toyota announced late last year. The July 2009 document, appears to be a briefing for Toyota’s North American chief Yoshi Inaba prepared by the automaker’s Washington staff, and cites sudden acceleration as a “key” safety issue and warns that US regulators were taking a tougher line on forced recalls. It goes on to credit Toyota’s Washington safety group with having “negotiated” a floormat recall on the Camry and Lexus ES350 in 2007, a step credited with saving over $100 million and avoiding a finding of a defect by the NHTSA. Documents subpoenaed by lawmakers and obtained by Reuters indicate insurance company State Farm reported to NHTSA in early 2004 about seven incidents of sudden acceleration involving Toyota Camry and Lexus models. Transportation Secretary Ray LaHood, who will testify on Tuesday, said the agency was looking into related complaints in December of 2003. James Lentz, president of Toyota Motor Sales USA, appears Tuesday before the House Energy and Commerce Committee along with the head of the National Highway Traffic Safety Administration, David Strickland. Toyoda’s much-anticipated appearance is scheduled for Wednesday before the House Oversight and Government Reform Committee, along with LaHood, Strickland and Inaba. Former NHTSA administrator and consumer advocate Joan Claybrook is also among witnesses listed for Wednesday’s hearing. Toyota Motor shares ended the morning session up 2.9% at ¥3,395, slightly underperforming a 3.2% gain in the benchmark Nikkei average. The stock has lost 19% over the past month but has steadied over the past 10 trading sessions. Source: Home - Livemint.com | 21 Feb 2010 | 10:11 pm Rupee gains 20 paise against dollar in early tradeThe rupee appreciated by 20 paise to 46.10 a dollar in the early trade today in line with other firming Asian currencies.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 9:46 pm Sensex surges 230 points in early trade on Asian cuesThe Bombay Stock Exchange benchmark Sensex, which had lost over 237 points in the past two sessions, recovered by 229.75 points or 1.42 per cent to 16,421.38 points with metals, IT and stocks leading the rally.Source: HindustanTimes.com - Top Business News Headlines | 21 Feb 2010 | 9:44 pm Markets join global rally; outsourcers leadMumbai: Indian shares joined Asia’s rally on Monday, with software companies leading the gains, as investors took the US Federal Reserve’s discount rate hike last week as a sign the world’s largest economy was recovering. By 9:37am, the 30-share BSE Index was up 1.26% at 16,395.62, with all of its components trading in the green. The 50-share NSE index was up 1.2% at 4,902.45. Export-focused outsourcers gained on improving prospects in the United States, one of their largest markets, dealers said. Infosys Technologies was up 2.1% while Tata Consultancy Services and Wipro both gained 1.5%. Data from Nomura showed foreign funds preferred Indian equities in the Asian region in the week to 19 February. “We rose as global markets are firm. But, I doubt if we can sustain all the gains. We should close in the positive, but not at these levels.” said R. Ganesh, director of Systematix Shares. “The reason for the bounce is short-covering. There is no urgency to buy from investors. It is like any other day,” he added. The US Federal Reserve on Thursday made its first interest rate move since December 2008, hiking an emergency lending rate it charges banks, but insisted borrowing costs would not rise for consumers or companies. The central bank’s view of the economy has brightened in recent months as job losses eased, consumer spending strengthened and businesses stepped up purchases of equipment and software. Ganesh expected trade to be cautious this week ahead of India’s federal budget on Friday and the expiration of monthly derivatives contracts on the National Stock Exchange on Thursday. Reliance Industries rose 0.8% on a media report the energy major has raised its offer for US-based petrochemicals maker LyondellBasell to about $14.5 billion. Angel Securities said the revised bid by Reliance would improved its prospects for the acquisition of the petrochemicals maker. The Mumbai-based brokerage maintained a “buy” on Reliance, with a target price of Rs1,260. Top mobile operator Bharti Airtel gained 0.9% to Rs280.75 after a Kuwaiti newspaper reported on Sunday that telecoms firm Zain and the Indian firm are expected to sign a letter of intent for the $9 billion African assets deal this week. Separately, the Economic Times reported Bharti Airtel has lined up $9 billion in loans from foreign and local banks for its planned acquisition. In the broader market, gainers were nearly thrice the number of losers in volume of 40 million shares. Source: Home - Livemint.com | 21 Feb 2010 | 9:25 pm Sensex up 192 points in early tradeA benchmark index of Indian equities rose sharply at the opening bell Monday and was ruling about 192 points higher ten minutes into trade.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 9:21 pm Bharti lines up 9 bln loans for Zain Africa reportBharti Airtel has lined up $9 billion in loans from foreign and local banks for its planned acquisition of the African assets of Kuwait's Zain, the Economic Times reported on Monday.Source: HindustanTimes.com - Top Business News Headlines | 21 Feb 2010 | 8:46 pm Reliance Cap to counter Inox bid for Fame IndiaMUMBAI (Reuters) - Anil Dhirubhai Ambani-controlled Reliance Capital said on Monday its board has approved a counter bid for cinema operator Fame India Ltd following an open offer by rival Inox Leisure.Source: Reuters: Money News | 21 Feb 2010 | 8:36 pm Toyota memo raises stakes for Washington hearingsNew documents raised fresh questions about whether Toyota Motor Corp stalled a US regulatory response to red flags about its vehicle safety as the company prepares to defend itself at congressional hearings this week.Source: HindustanTimes.com - Top Business News Headlines | 21 Feb 2010 | 8:16 pm Oil strikes 6-week high amid Greece bailout talkPerth: Oil prices rose to a six-week high above $80 a barrel on Monday, extending the previous session’s gains, as speculation over a quick bailout for debt-laden Greece helped pushed the US dollar lower. Concerns about an extended refinery strike in France and escalating tensions over Iran’s nuclear program also lent support to oil prices. US crude for March delivery rose 57 cents to $80.38 a barrel by 8:24am, after having struck $80.47 -- the highest since 13 January. London Brent crude rose 63 cents to $78.82 a barrel. “The weak dollar is the biggest driver for crude prices this morning and hopes of a financial rescue for Greece are propping up sentiments,” said Clarence Chu, a trader with Hudson Capital Energy in Singapore. The US dollar index fell 0.29% against a basket of currencies on Monday, as investors reassessed chances of an earlier-than-expected interest rate hike by the Federal Reserve while the euro was lifted by speculation of a quick bailout for Greece. German weekly Der Spiegel reported on Saturday that Germany’s finance ministry had prepared plans in which countries using the single currency would provide aid worth between 20 billion and 25 billion euros for debt-laden Greece. The ministry refused to comment on the report. Concern over Athens’ ability to repay its debt mountain has shaken confidence in the euro and stirred fears that it may hinder global growth. Some analysts have said that a plan to rescue Greece would help allay sovereign debt concerns in Europe. Separately, an extended strike at Total’s six oil refineries in France and growing hostility between Iran and the West also aided bullish sentiment for crude. Talks between Total and workers protesting the possible closure of the company’s Dunkirk refinery in northern France collapsed on Sunday, the CGT union said, calling for a strike to spread to all French refineries. An extended strike would lift Europe’s gasoline prices and also push up prices across the energy complex, market participants said. Russia said on Friday it was “very alarmed” by Iran’s failure to cooperate with the IAEA, after the U.N. nuclear agency said it feared Tehran might be working to develop a nuclear missile. Oil prices rose 7.7% rise on the week, their largest single-week percentage gain for front-month crude since October, thanks to a combination of positive economic data and growing tensions over sanctions against Iran. Analysts said Wall Street could keep rallying after notching its best week this year if Federal Reserve Chairman Ben Bernanke gives a reassuring assessment of the recovery and retail earnings show improvement. On Opec rumblings, a senior Iranian oil official said on Saturday the producer group was unlikely to raise its output ceiling at its next meeting in March. Money managers hiked their net long crude oil futures position on the New York Mercantile Exchange in the week through 16 February, the Commodity Futures Trading Commission said on Friday. Source: Home - Livemint.com | 21 Feb 2010 | 7:53 pm Reliance raises Lyondell bid to $14.5 bln - BloombergNEW YORK (Reuters) - Reliance Industries Ltd has raised its offer for bankrupt petrochemicals maker LyondellBasell to about $14.5 billion, Bloomberg News reported on Sunday, citing people with knowledge of the offer.Source: Reuters: Money News | 21 Feb 2010 | 7:41 pm Banks keep off 'unviable' highway projectsOnly six out of 42 projects worth over Rs 50,000 crore awarded by the National Highways Authority of India (NHAI) since January 2009 have achieved financial closure, raising fresh doubts over Roads and Highways Minister Kamal Naths ambitious plans to add 20 km of road per day.Source: Business Standard | Front Page Headlines | 21 Feb 2010 | 12:27 pm ADAG launches hostile bid for Fame IndiaA takeover battle for Fame India looks imminent with Reliance MediaWorks, part of the Anil Dhirubhai Ambani Group (ADAG), today announcing a counterbid for 52.48 per cent in the movie threatre chain at Rs 83.40 per share (for Rs 180.14 crore) through an open offer.Source: Business Standard | Front Page Headlines | 21 Feb 2010 | 12:24 pm Shree Renuka buys 51% in Brazil sugar firmShree Renuka Sugars, among the countrys largest sugar producers, has signed an agreement with Brazilian conglomerate Grupo Equipav to buy a controlling 50.79 per cent in Equipav S A ACUCAR e ALCOOL (Equipav) for Rs 1,530 crore or $329 million.Source: Business Standard | Front Page Headlines | 21 Feb 2010 | 12:20 pm Renuka Sugars buys Brazil coShree Renuka Sugars, one of the leading sugar producers and the largest sugar refiner in the country, on Sunday said is is acquiring a 51% stake in Brazil's Equipav SA Acucar Alcool for Rs 1,530 crore ($329 million).Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:19 am Reliance Media counters Inoxs bid for FameIn an open confrontation with entertainment major Inox Leisure, Reliance MediaWorks (RMW), an Anil Dhirubhai Ambani Group (ADAG) company, made an open offer to buy an additional 52.5% stake in the multiplex chain Fame India, at Rs 83.4 per share for Rs 180.1 crore.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:18 am 7.2% growth forecast may be raised: SenChief statistician Pronab Sen has said the projected 7.2% economic growth for the current financial year may be revised upwards, if the industrial production remains buoyant in the fourth quarter.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:17 am Star Aviation looks at GMR for saleStar Aviation, the country's first regional airline to get a licence in 2007 but yet to launch service, has initiated sale talks with the GMR group of Hyderabad.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:15 am With projects galore, road makers scrips gainWith a range of projects in the offing and the Budget expected to give renewed thrust to infrastructure, companies with a focus on the road construction have started gaining traction on the bourses.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:13 am Beyond Zain: Bharti has a dozen targetsThe Bharti Airtel group has a lot more on its agenda than just Zain Telecom where international acquisitions are concerned.Source: India Business News | Business News - Times of India | 21 Feb 2010 | 11:11 am India is critical to Microsoft’s strategyDull, boring and predictable have been some of the more polite descriptors applied to the world’s biggest software company.  Upbeat: Microsoft chief financial officer Peter Klein says the company sees huge opportunity for growth across product and services categories. Kaushik Chakravorty/Mint Described as a company with an amazing past, a great present, but a slightly cloudy future, critics have been carping that Microsoft has withdrawn into the more predictable enterprise market and lost the mindshare of consumers. They have also been questioning its software plus service only model, at odds with the strategy of competitors that are bundling hardware, software and services to provide a better user experience. Still, aided by its near monopoly in the operating system and productivity software suite of solutions led by the Windows and Office platforms, Microsoft generates net profit in excess of $14 billion (Rs65,000 crore) annually. Over the past decade, it has made $113 billion in net profit. Microsoft has defied critics in the past to come up trumps in segments in which it had been written off. While the company didn’t cover itself with glory with the Vista operating system, Windows 7 has been a success with at least 60 million licences sold in four months of launch. Meanwhile, the firm is making a fresh start with smartphone software with Windows Phone 7 being unveiled to acclaim last week. Peter Klein, who was named Microsoft’s chief financial officer in November, says in an exclusive interview that it’s early days yet in areas such as online services and smartphones. Klein, who spoke to Mint during a visit to Mumbai on Friday, is confident that Microsoft will shape the technology industry in the next decade as it did in the last one. Edited excerpts: You are coming off a great quarter with record revenue of $19 billion and net income of $6.66 billion. Windows 7 has boosted growth. Is this a single-quarter phenomenon? Are enterprises starting to spend again? We have seen great momentum for Win7 predominantly coming from the consumer space. Win7 has been the fastest selling ever OS (operating system). Not just for us, it has catalysed the entire sector. PC sales grew by 15% globally in the last quarter, compared with either flat or negative growth in several quarters preceding that. Twenty percent growth in the consumer segment and flat growth in the business segment is what we saw. We see more optimism (in terms of spending) for the business segment in the current quarter, which is our third quarter, but which will be the first quarter for calendar year 2010. It is not just Win7, there is considerable excitement across our products categories—be it server, Office 2010 or our other offerings. When the business PC refresh cycle happens, we will actually see further additional momentum (in sales), both in terms of units and average price. What about the perception that the future is a bit cloudy, compared with both your past and present? There will always be competition in successful businesses. Right now our view and that of our investors is that there has never been more excitement about our future growth opportunities as we continue to innovate. Within the next 12 months we have Office 2010 coming in, Windows SQL server, new launches in server and tools business, Project Natal (for the Xbox console), Azure, our cloud (computing) offering, Bing (search engine), which has been growing market share every month since it has been launched. Across our product and services categories, we see huge opportunity for growth. Has Microsoft retreated into the more predictable, safe but boring enterprise space at the cost of mindshare of retail consumers? Not at all. Yes, the enterprise space has great economics attached to it but we do a good job across both (consumers and enterprises). As I said earlier, the Win7 growth story was driven primarily by consumers in the last quarter. If you look at Bing, the response has been terrific. If you look at Xbox Live, we have at least 23 million members and growing at 30-35%. A lot of offerings we have in the consumer space, whether it is gaming, search, phone, PCs, we are doing very well. Microsoft has always led with a software plus services strategy. But competitors such as Apple and Google are also adding the hardware bit to the mix to enhance user experience. Would Microsoft have a phone of its own, as rumoured with Project Pink? I think Steve (Ballmer, chief executive officer of Microsoft) made it clear that we would pursue our current strategy of software plus services. We will work with our (hardware) partners and (telecom) carriers for Win Phone 7 too. The feedback we have received for Win Phone 7 has been excellent and makes us more confident to pursue our strategy. The (smart) phone market is still very nascent and is a constantly evolving market. The game is still very early and we think Win Phone 7 will help us grow further. In online services, you seem to have lost your initial advantage whether it is in mail or search or other tools. Particular to search, I am very encouraged by the progress we have made. ComScore, Inc. says that Bing had a 11.3% market share in January. It is a long battle and we will look at monetization and the economics of the business. The Yahoo partnership has helped accelerate our success in the business and helps us gain scale. Whether it is messenger, hotmail and other services—what we call our Windows Live offerings—we have been very happy with the progress. You spend close to $8 billion in research and development despite some recent cuts in the budget. What kind of prioritization in innovation is being done? We continue to invest heavily in innovation. Even when we announced layoffs (for the first time ever in Microsoft’s history) last year, we were also clear that while we would reduce in some areas, we would continue to hire and grow in certain other areas. We have become more disciplined on where we invest, particularly in a tough economic environment. We will continue to invest in key areas such as cloud computing, software plus services and search. What about the India picture? (Microsoft does not provide India-specific revenue, but ‘Dataquest’ magazine estimates that last year it did Rs3,298 crore of business in the country.) India is an extremely important geography for us both as a market and as a resource base for our global operations. We employ at least 5,000 people here. India is a critical component of our future growth strategy. Source: Home - Livemint.com | 21 Feb 2010 | 10:58 am Shree Renuka clinches deal with EquipavMumbai: India’s biggest sugar refiner, Shree Renuka Sugars Ltd, has clinched a deal to acquire a controlling stake in Equipav SA Açúcar e Álcool, the sugar and ethanol unit of Brazil’s Grupo Equipav, for $329 million (around Rs1,517 crore today). The Belgaum, Karnataka-based sugar firm nudged out the $36 billion Noble Group Ltd of Hong Kong in the race to buy the 51% stake, its second purchase in four months in Brazil. Shree Renuka bought 100% of Vale Do Ivai SA, or VDI, in November for $82 million plus debt. Also See Sweet Success (PDF) “This investment brings us closer to building a global sugar and ethanol business combining the most cost-efficient and scalable production areas in the world along with a leading presence in the largest ethanol and sugar markets of the world,” said Narendra Murkumbi, managing director of Shree Renuka Sugars. On 5 February, Grupo Equipav had shortlisted five companies that were bidding for Equipav SA. Shree Renuka Sugars outbid Noble Group, which has equity investment from the Chinese government. Shree Renuka Sugars is trying to secure raw material supplies to meet growing demand in India, the world’s biggest consumer of sugar, by building a presence in Brazil, the biggest producer and exporter of the sweetener. It will hold (after closing adjustments) a majority stake of not less than 50.79% in Equipav SA, one of the largest sugar and ethanol companies in Brazil. The balance will be held by Grupo Equipav. Brazilian sugar cane is available for Rs1,000 per tonne; in India the price is in the range of Rs1,800-2,300 per tonne. In the current fiscal, India will import 7 million tonnes of raw sugar and white sugar. Shree Renuka, through the two acquisitions, is also trying to capture the arbitrage opportunity. “Equipav has one of the biggest and most vertically integrated, modern operations in Brazil, with economies of scale and opportunities to form a cluster of contiguous mills; hence the partnership with Grupo Equipav”, said Murkumbi. Equipav had net debt of around $822 million as of 31 December, according to a media statement by Shree Renuka Sugars. The investment by the Indian company will help Equipav to fund capital expenditure, pay down debt and increase working capital. The deal is expensive given the debt component that Murkumbi hopes to refinance, but the company is betting on demand for sugar remaining strong in the coming years. Shree Renuka would initially fork out Rs671 crore, available through a Rs185 crore promoter’s contribution through a preferential offer of shares and $105 million raised through a qualified institutional placement. The rest will come from internal accruals. “The deal is subject to approval of an acceptable debt restructuring package by the lenders to the company and certain other conditions customary to such transactions. Closing is expected in 40 days,” the statement said. Banco Itaú BBA of Brazil and Motilal Oswal Investment Advisors Pvt. Ltd acted as the strategic and financial advisers to Shree Renuka. Veirano e Advogados Associados of Brazil and Crawford Bayley and Co. were the legal advisers. Equipav has two large and modern sugar and ethanol mills with integrated co-generation facilities in Sao Paulo state in south-east Brazil, having a combined cane-crushing capacity of 10.5 million tonnes per year. In addition, Equipav has a co-generation capacity of 203MW. The mills will be expanded to a combined capacity of 12 million tonnes and 295MW. For Equipav, cane supply comes from the cultivation of around 115,000ha of land, of which nearly two-thirds is farmed by itself. The mills have easy access to the main ports of Santos and Paranagua. Shree Renuka Sugars acquired 100% of VDI, which has two mills with a combined cane crushing capacity of 3.1 million tonnes a year, in November. It paid $82 million in cash for VDI, valuing it at $240 million, and assumed debt for the remainder that will be repaid over eight years. VDI also holds strategic stakes in several logistics assets, including terminals for storage and loading of sugar and ethanol at Paranagua port. Like Grupo Equipav, VDI meets a big part of its sugarcane requirements through its own cultivation of at least 18,000ha of land on a long lease. Shree Renuka Sugars has in 10 years become India’s leading sugar refiner, in a rare business partnership between a mother and son—Vidya Murkumbi (executive chairperson) and Narendra Murkumbi, co-founder, vice-chairman and managing director. The two dabbled in manufacturing bio-pesticides before moving into sugar refining. Grupo Equipav is one of the large conglomerates in Brazil, holding equity stakes in some 20 companies. Its interests include highway concessions, bus terminals, water and sewage facilities, electricity generation, mortar production and waste management. Source: World Business - Livemint.com | 21 Feb 2010 | 10:57 am Lending rates not to move up till May-June: SBI!State Bank Chairman OP Bhatt on Saturday said lending rates in the banking system are unlikely to rise at least in the next 3-4 months as hiking rates in a low-demand scenario could hurt banks` margins.Source: Zee News : Business | 21 Feb 2010 | 5:06 am
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