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Awaiting RBI guidelines on new banking licence: SREI InfraOn the Budget day, finance minister said that RBI is considering giving some additional banking licenses to private sector players and NBFCs). In an interview with CNBCTV18, Hemant Kanoria, Managing Director of SREI Infrastructure Finance Ltd, discusses it.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:31 am Govt earmarks Rs 6500 crore for IT spends: SourcesThe group aims to introduce up to 10 IT contracts in financial year 201011.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:16 am Vijaya Bank expects Rs 7 billion of recap from GovernmentStaterun Vijaya Bank expects to get 7 billion rupees of capital from the government, part of which is expected by Marchend.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am SAIL raises product pricesStaterun Steel Authority of India has raised product prices by Rs 500 (USD 10.9) to Rs 600 a tonne.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am India 2010/11 steel demand seen growing at 10%Steel demand is seen rising by 10% in the fiscal year to March 2011, helped by higher spending on infrastructure.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am Ranbaxy unable to launch new generic, shares fallRanbaxy Laboratories said it would not be able to launch a generic urinary drug as per schedule in the absence of a final regulatory approval, sending its shares down more than 6%.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am Eicher Feb sales surge to 3,030 unitsVE Commercial Vehicles, the Indian joint venture between Eicher Motors and Sweden\'s Volvo, said on Wednesday it sold 3,030 Eicherbranded trucks and buses in February, versus 1,367 units a year ago.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am Holcim cautious on 2010 after Q4 profit misses pollHolcim, the world\'s second largest cement maker, gave a cautious outlook for 2010 after posting a worsethanexpected fourth quarter net profit on Wednesday.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am KNR Constructions JV gets order worth Rs 2.25 billionKNR Constructions Ltd said on Wednesday its joint venture with JKM Infra Projects Pvt Ltd and Kamala Constructions has won orders.Source: Moneycontrol Top Headlines | 3 Mar 2010 | 7:04 am Tata Motors sees uptick in Land Rover salesTata Motors has gone up 20% in two days. The markets love the Jaguar Land Rover (JLR) turnover story. Is this sustainable?Source: Moneycontrol Top Headlines | 3 Mar 2010 | 5:37 am ADB to revise up 2010 Asia GDP forecast to above 7%!The Asian Development Bank plans to revise upward its 2010 economic growth forecast for developing Asia to around 7 percent, citing the ability of some nations to quickly employ massive stimulus measures.Source: Zee News : Business | 3 Mar 2010 | 5:10 am Sensex regains 17k level after six weeksThe Bombay Stock Exchange benchmark Sensex regained the 17,000-points level in the pre-close trade today on aggressive buying in heavy-weight stocks on expectations of a fast economic growth.Source: India Business News | Business News - Times of India | 3 Mar 2010 | 3:00 am Sanjay Kapoor takes over as Bharti CEO ahead of scheduleBharti had in January said Kapoor, Bharti's deputy chief executive, would take over in April from Manoj Kohli, who would move to head its international business unit.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 2:58 am INTERVIEW - Nomura eyes U.S. hiring binge for global ambitionTOKYO (Reuters) - Nomura Holdings Inc, Japan's largest brokerage, plans to increase its bankers in the United States by 25 percent to 2,000 by March next year.Source: Reuters: Money News | 3 Mar 2010 | 2:42 am Aurobindo Pharma gets okay for Cefuroxime Axetile Tablets - Moneycontrol.com
Source: Business - Google News | 3 Mar 2010 | 2:40 am Sensex rallies further; RIL, SBI, NTPC, JSPL, BHEL lead - Moneycontrol.com
Source: Business - Google News | 3 Mar 2010 | 2:26 am Rollback of fuel price hike remoteNew Delhi: A rollback of fuel price hike appears remote with the government on Wednesday telling the allies as well as members of the ruling Congress that any reduction would turn haywire its plans for higher economic growth as also lowering fiscal deficit. Finance minister Pranab Mukherjee in separate meetings with Congress MPs, leaders of UPA allies like Trinamool Congress, DMK, NCP and IUML explained to them the rationale behind the government’s move. Two of these allies DMK and TMC have earlier resented the government’s decision to hike fuel prices but had later piped down their opposition while NCP openly supported the government over the issue. Mukherjee is learnt to have told the allies that there was nothing in this decision as the government only withdrew partially the reduction given in excise duty earlier. “It was a short meeting. Government explained to them (allies) the rationale behind the decision,” parliamentary affairs minister Pawan Kumar Bansal said. Sources in the government, meanwhile, said that the government has taken all the allies on board over the issue and explained to them that the decision to this effect was taken with an eye of achieving GDP growth and to minimise fiscal deficit. Meanwhile, TMC chief whip Sudip Bandopadhyaye, who attended the meeting, said, “We expressed our observations on the issue. It is now up to Prime Minister Manmohan Singh to take a final decision. We will accept. In no circumstances we want to undermine the existence of the UPA.” Sources said Mukherjeee in his meeting with Congress MPs told them that steps like the fuel price hike are inevitable if resources are to be mopped up for increased expenditure in social sector without imposing any new taxes. Mukherjee is learnt to have told them that since no new taxes have been imposed in the Budget and the government is expecting a GDP of 8.5% from 7.2% in the outgoing financial year, some steps were required. He also gave them a comparative chart of the fuel price hike done under the UPA and the NDA respectively in which he explained that the rise in prices of petroleum products was far less during the UPA rule as compared to that of the NDA, which increased the prices for 33 times. Mukherjee also allayed apprehensions of any sharp rise in prices of foodgrains and essential commodities due to fuel price hike telling them the yield in Punjab is good this year and it will help lower prices. Talking to reporters outside Parliament House, Union minister Ambika Soni, who also attended the meeting, said, “You have to create growth and for growth creation you need to pump in money”. Another party MP Jagdambika Pal stressed the need for economic reforms to achieve high GDP and said, “We will tolerate this burden and price rise will also not be allowed to hit people.” The Congress Core Group had grappled with the issue Tuesday night and had apparently decided to back Prime Minister Manmohan Singh, who has indicated that rollback would not be possible. Party president Sonia Gandhi is expected to explain the party’s position on the issue of rollback when she addresses a CPP meeting Thursday. Source: Home - Livemint.com | 3 Mar 2010 | 2:25 am Winter crop output seen higher - ministerNEW DELHI (Reuters) - India's winter-sown crops output will be good and will help bring down high food prices, the farm minister said on Wednesday.Source: Reuters: Money News | 3 Mar 2010 | 2:24 am Will compensate if services not up to mark: Tata Tele - NDTV.com
Source: Business - Google News | 3 Mar 2010 | 2:23 am Greece decides on 4.8 bln extra measures - govt sourceATHENS (Reuters) - Greece's cabinet on Wednesday decided to take extra austerity measures totaling 4.8 billion euros ($6.49 billion) to ensure it meets key fiscal targets this year, a government source said.Source: Reuters: Money News | 3 Mar 2010 | 2:11 am Awaiting RBI guidelines on new banking licence: SREI Infra - Moneycontrol.com
Source: Business - Google News | 3 Mar 2010 | 2:10 am Reliance shares up as Lyondell bid seen rejected - Reuters
Source: Business - Google News | 3 Mar 2010 | 2:09 am Nissan recalls 540,000 vehicles worldwideDetroit: Japanese automaker Nissan Motor Co is recalling about 540,000 pickup trucks, sport utility vehicles and minivans to fix problems with brake pedals and fuel gauges. Most of the recalled vehicles are in the US, with smaller numbers scattered across the globe. The brake pedal recall affects 179,000 vehicles in the US and about 26,000 in the west Asia, Canada, Russia and several other countries. A pin in the pedal assemblies on certain 2008 to 2010 Nissan Titan pickups, Infiniti QX56 and Nissan Armada Sports Utility Vehicles, and some 2008 and 2009 Nissan Quest minivans can come loose and cause reduced braking force, Nissan said Tuesday in a statement. No injuries or crashes have been reported, the company said. Customers with loose brake pedals should contact their dealer. Nissan blamed the problem on a manufacturing defect by a parts supplier. Dealers will inspect the vehicles for loose pins and repair them if necessary. The company said in a statement that all vehicles now on sale do not have the problem. Nissan also is recalling 419,000 vehicles in the US and 53,000 elsewhere because gas gauges can show fuel left in the tank when it’s actually empty. The recall affects 2005 through 2008 Nissan Titan, Armada and Infiniti QX56s as well as Nissan Frontier pickups and Pathfinder and Xterra SUVs produced between January and March 2006 and between October 2007 and January 2008. Due to a problem with a sensor inside the fuel tank, the gauges can show gas tanks a quarter full when they are in fact empty. Nissan suggests keeping a half-tank of gas in the vehicles until the gauges can be repaired, eliminating the risk of running low on fuel. Owners of vehicles in both recalls will be notified when to bring their cars and trucks in for repairs. In materials distributed to dealers, Nissan said the brake pedal recall begins on March 22, while the fuel-gauge recall will take place in two groups, one beginning March 22 and the other starting in April. About 130,000 vehicles are covered by both recalls. Source: LatestNews-Home - Livemint.com | 3 Mar 2010 | 2:06 am Nissan recalls 540,000 vehicles worldwideDetroit: Japanese automaker Nissan Motor Co is recalling about 540,000 pickup trucks, sport utility vehicles and minivans to fix problems with brake pedals and fuel gauges. Most of the recalled vehicles are in the US, with smaller numbers scattered across the globe. The brake pedal recall affects 179,000 vehicles in the US and about 26,000 in the west Asia, Canada, Russia and several other countries. A pin in the pedal assemblies on certain 2008 to 2010 Nissan Titan pickups, Infiniti QX56 and Nissan Armada Sports Utility Vehicles, and some 2008 and 2009 Nissan Quest minivans can come loose and cause reduced braking force, Nissan said Tuesday in a statement. No injuries or crashes have been reported, the company said. Customers with loose brake pedals should contact their dealer. Nissan blamed the problem on a manufacturing defect by a parts supplier. Dealers will inspect the vehicles for loose pins and repair them if necessary. The company said in a statement that all vehicles now on sale do not have the problem. Nissan also is recalling 419,000 vehicles in the US and 53,000 elsewhere because gas gauges can show fuel left in the tank when it’s actually empty. The recall affects 2005 through 2008 Nissan Titan, Armada and Infiniti QX56s as well as Nissan Frontier pickups and Pathfinder and Xterra SUVs produced between January and March 2006 and between October 2007 and January 2008. Due to a problem with a sensor inside the fuel tank, the gauges can show gas tanks a quarter full when they are in fact empty. Nissan suggests keeping a half-tank of gas in the vehicles until the gauges can be repaired, eliminating the risk of running low on fuel. Owners of vehicles in both recalls will be notified when to bring their cars and trucks in for repairs. In materials distributed to dealers, Nissan said the brake pedal recall begins on March 22, while the fuel-gauge recall will take place in two groups, one beginning March 22 and the other starting in April. About 130,000 vehicles are covered by both recalls. Source: Home - Livemint.com | 3 Mar 2010 | 2:06 am Gold demand stays weak as prices jumpMumbai: India gold demand remained weak for a second day on Wednesday as prices traded above the most-watched Rs17,000-mark after an overnight jump, but a strong rupee, which made the dollar-quoted asset cheaper, aided sentiment. “Thin trade is continuing even today as prices are on the higher side, last week we saw some good deals,” said a dealer with a state-run bank in Mumbai. The most-active April gold contract on the Multi Commodity Exchange (MCX) was trading 0.03% higher at Rs17,025 per 10 grams, after gaining over 1% in the last session. International spot gold, which guides the domestic market, was trading $1,136.00/1,116.80 an ounce as against the previous close of $1,134.50/1,135.30 an ounce. “Last week, demand was decent at $1,100, we have orders in the range of $1,110-1,115,” said another state-run bank dealer. The Indian rupee continued to trade close to its highest level in six weeks on Wednesday afternoon as broad weakness in the dollar versus majors and gains in domestic shares cheered sentiment. Source: LatestNews-Home - Livemint.com | 3 Mar 2010 | 1:57 am Aviation ministry seeks rollback of service tax proposal - NDTV.com
Source: Business - Google News | 3 Mar 2010 | 1:54 am Sensex rises more than 1% led by RelianceMumbai: The BSE Sensex rose more than 1% on Wednesday afternoon led by Reliance Industries. At 2:09pm, the 30-share BSE index was trading up 1.02% at 16,946.49 with 22 components gaining. The 50-share NSE index was up 1.13% at 5,073.55. Markets were trading 0.8% higher on Wednesday, putting the market on track for a third consecutive session of gains after the national budget aimed to boost consumer spending. Firmer Asian markets also underpinned sentiment, but traders said there could be some resistance following a rise of about 4% since the budget was released on Friday. Reliance Industries led the gains on hopes the energy major would look elsewhere than plumb for an expensive bid for LyondellBasell, traders said. LyondellBasell has rejected an offer from Reliance that values the bankrupt petrochemicals group at $14.5 billion, a person familiar with the matter said on Tuesday. “People were worried the deal if it went through would be expensive. In a way, it is a relief that it is not happening,” said Neeraj Dewan, director of Quantum Securities. The stock, which has the heaviest weight in the main index, was up 2.9% at 1,012.25 rupees, after rising 0.6% in the previous session. By 10:00am, the 30-share BSE index was trading up 0.77% at 16,902.04, with 24 of its components gaining. The 50-share NSE index was up 0.8% at 5,059.15. “There were expectations of a rally post budget. People had held back investment decisions and since the budget did not have many negatives, we can see the result now,” said Dewan. A small correction is not ruled out after the steep rally if global cues did not improve, he said. Engineering and construction firm Jaiprakash Associates climbed 3.2% as its cement shipments in February jumped 61%, while ACC fell 1.1% as its cement shipments dropped 2.3%. Tata Consultancy Services rose 1.1% after the leading outsourcer said late on Tuesday it had won a bid to administer Britain’s new national pension scheme. Rivals Infosys Technologies and Wipro were up 0.2% and 0.1% respectively. In the broader market, gainers were nearly four times the number of losers on volume of 76 million shares. Source: Home - Livemint.com | 3 Mar 2010 | 1:48 am BSE Sensex rises more than 1 pctMUMBAI (Reuters) - The BSE Sensex rose more than 1 percent on Wednesday afternoon led by Reliance Industries.Source: Reuters: Money News | 3 Mar 2010 | 1:47 am Holcim cautious on 2010 after Q4 profit misses pollZURICH (Reuters) - Holcim, the world's second largest cement maker, looked to Asia for more growth this year while improvements in Europe and North America were hard to call and hostage to government stimulus plans.Source: Reuters: Money News | 3 Mar 2010 | 1:46 am S&P says less gloomy on Greece than marketsSINGAPORE (Reuters) - Standard & Poor's is less pessimistic on Greece's debt crisis than financial markets and believes that the debt problems of some euro zone countries pale in comparison with long-term challenges of population ageing.Source: Reuters: Money News | 3 Mar 2010 | 1:44 am India 2010/11 steel demand seen growing at 10 pctNEW DELHI (Reuters) - Steel demand is seen rising by 10 percent in the fiscal year to March 2011, helped by higher spending on infrastructure, Steel Secretary Atul Chaturvedi said on Wednesday.Source: Reuters: Money News | 3 Mar 2010 | 1:13 am Reliance shares up as Lyondell bid seen rejectedMUMBAI (Reuters) - Shares in Reliance Industries were boosted on Wednesday as investor fears the Indian energy major would overpay for LyondellBasell were allayed after the petrochemicals firm was said to have rejected its offer.Source: Reuters: Money News | 3 Mar 2010 | 1:06 am Two confirmed dead at air show in HyderabadHyderabad:Two pilots are confirmed to have been killed at the Hyderabad air show after a Kiran MK II aircraft crashed while participating in an air display. An aviation ministry official, who declined to be named, confirmed the deaths, and said at least 19 people were injured in the accident. The plane had crashed in a suburb called Bowenpaily, a densely populated lower middle class area. A crash squad comprising personnel from the navy and air force have been sent to carry out further investigations. The ill fated Surya Kiran aircraft was part of a fly past to mark the inauguration of the air show and had been attempting a scissors formation with another plane flying in from the opposite direction. Eyewitnesses said the plane suddenly plummeted, followed by a loud explosion and a huge mushroom shaped cloud of smoke. Civil Aviation minister Praful Patel addressing a press conference shortly after the incident, said the formation in question had been conducted by the Indian navy. He further said that they were in the process of ascertaining whether the plane, which crashed was a trainer aircraft. Around 115 nations are participating in the show. This story will be updated with more confirmed details as and when they are received. Source: Home - Livemint.com | 3 Mar 2010 | 1:01 am Ranbaxy unable to launch new generic, shares fallMumbai: Ranbaxy Laboratories said on Wednesday it would not be able to launch a generic urinary drug as per schedule in the absence of a final regulatory approval, sending its shares down more than 6%. India’s largest drug maker by sales was expected to launch the cheaper copycat version of Astellas Pharma’s Flomax in the United States this month, and analysts were expecting it to significantly boost earnings in the near term. “It’s a blow to the company’s near-term outlook,” said Surya Narayan Patra, a sector analyst with Systematix Shares. “This drug was one of the few positive triggers at Ranbaxy people were watching out for.” He said Ranbaxy would have been one of the first few generic firms to launch the copycat version of Flomax, which would have generated $93 million in sales during the 180-day exclusive marketing period. But with players such as Impax Laboratories Inc launching their versions of Flomax ahead of Ranbaxy, chances of it providing an earnings boost to the Indian drug maker has faded, he said. Shares in Ranbaxy, 64% owned by Japan’s Daiichi Sankyo, fell as much as 6.1% on the news but trimmed the losses to 1.3% by 1:18 pm at Rs473 while the main Mumbai market was up 0.9%. Global demand for generic drugs from makers such as Ranbaxy and rivals Dr Reddy’s Laboratories and Cipla is booming as nations battle rising healthcare costs. But recent warnings by US regulatory authorities to Indian drug makers for what it said was violation of good manufacturing practice are a concern for the sector. In December, shares in Ranbaxy fell after the company said it had received a letter about violations of good manufacturing practices at its unit in New York. “The Ranbaxy stock will continue to languish until the regulatory overhang goes away,” Patra said. Generic Launch Ranbaxy had received tentative approval from the FDA in 2007 to launch the generic version of Flomax. “We regret that despite our best efforts we were not able to get an approval for the subject product, and hence will not be in a position to launch the product,” Ranbaxy said in a statement on Wednesday. It did not give any reasons for not getting the approval. A spokeswoman for Daiichi Sankyo told Reuters in Tokyo that she was not aware whether Ranbaxy’s application had been rejected or the FDA was asking Ranbaxy for more data. Source: Home - Livemint.com | 3 Mar 2010 | 1:00 am India needs 400 airports, 3,000 aircraft in 10 years: Praful PatelIndia needs at least 400 airports and 3,000 aircraft in the next 10 years to keep pace with the growing demand, Union civil aviation minister Praful Patel said on Wednesday.Source: India Business News | Business News - Times of India | 3 Mar 2010 | 12:54 am Reliance shares up as Lyondell bid seen rejectedMumbai: Shares in Reliance Industries were boosted on Wednesday as investor fears the Indian energy major would overpay for LyondellBasell were allayed after the petrochemicals firm was said to have rejected its offer. Reliance, controlled by billionaire Mukesh Ambani, has made no secret of its overseas ambitions and has raised a war chest for potential deals by selling $2 billion in stock in recent months. A person familiar with the development told Reuters on Tuesday bankrupt Lyondell had rejected Reliance’s offer that valued the Luxembourg-headquartered group at $14.5 billion. This could mean Reliance, India’s largest-listed conglomerate whose interests include petrochemicals, refining, oil and gas and retail, could look at other overseas options for expansion. It made a $2 billion offer to buy private Canadian oil-sands firm Value Creation Inc, according to media reports, although three people familiar with Reliance’s thinking have said the Calgary, Alberta-based firm may not be an ideal target. Other possible targets include assets owned by US-based Valero Energy and Sunoco, energy assets belonging to ConocoPhillips and refineries in Europe that are up for sale, bankers have said. “While LyondellBasell did offer strategic merit for Reliance, we believe the bid not going through is a better outcome, as it saves Reliance from getting drawn into a bidding war and thus potentially over-paying for the assets,” Goldman Sachs analyst Nilesh Banerjee said in a note. At 1:28pm, shares in Reliance, which the market values at about $70 billion, were up 2.8% at Rs1,011 after climbing to as high as Rs1,015. The Mumbai market was up 0.9%. In November, investors cheered Reliance’s Lyondell bid, then valuing the target at about $12 billion, as the company was seen as snatching a potential bargain. A deal would enhance Reliance’s presence in major markets such as the United States and Europe and catapult it into the ranks of top global chemicals makers such as Saudi Arabia’s SABIC, Germany’s BASF and Dow Chemical Co. Reliance has since raised its offer twice, sources have said, with chances for success clouded by the prospect senior creditors such as Apollo Management may take a loss at the price Reliance has proposed and gain more from an independent Lyondell. At the current offer price, Reliance is already valuing Lyondell at 10 times 2010 forecast EBITDA. Dow Chemical trades on a multiple of just over eight times. Lyondell adviser Evercore has put a $13.5 billion to $15.5 billion enterprise value range on the company. Goldman’s Banerjee said in his note that it would be better for Reliance to target assets in the exploration and production sector. Source: Home - Livemint.com | 3 Mar 2010 | 12:54 am Mutual funds' average assets up 2.6% in FebruaryThe average monthly assets managed by domestic mutual funds rose 2.6% to Rs7.8 trillion in February, data from the Association of Mutual Funds in India showed on Wednesday.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 12:47 am StanChart profits up 13% at record $5.15 billionThe London-listed bank on Wednesday said its 2009 pretax profit was up 13% from a restated $4.6 billion in 2008 and just ahead of an average analyst forecast of $5.1 billion.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 12:46 am Rupee close to 6-week high on stocks; dollar fallMumbai: The Indian rupee continued to trade close to its highest level in six weeks on Wednesday afternoon as broad weakness in the dollar versus majors and gains in domestic shares cheered sentiment. At 1:02pm, the partially convertible rupee was at Rs45.89/90 per dollar, off an high of Rs45.8525, its highest since 20 January but still above its close of Rs46.01/02 on Tuesday. The index of the dollar against six major currencies was down 0.1%. Emerging Asian currencies rallied across the board on Wednesday, with the Thai baht hitting a near two-year high, lifted by a firmer stock market and as investors cut long dollar positions. Indian shares were trading up 0.97%. One-month offshore non-deliverable forward contracts were quoted at Rs45.88/98. 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 Rs45.9825, with the total traded volume on the two exchanges at about $2 billion. Source: Home - Livemint.com | 3 Mar 2010 | 12:45 am StanChart year profit tops $5 bn, strong JanuaryLondon: Standard Chartered met expectations with a 13% jump in 2009 profit, as strong investment banking growth in its core Asian markets offset a jump in bad debts in the Middle East. The bank said it would give bonuses to management, unlike many London-listed rivals, and pay to retain top bankers, saying competition for talented staff was “red hot” in its footprint. Standard Chartered said on Wednesday its 2009 pretax profit rose to $5.15 billion from $4.6 billion, just ahead of a forecast for $5.1 billion. Bad debt jumped by half on the year to $2 billion, largely due to a rise in losses in the Middle East. Analysts had expected impairments to hit about $2.1 billion. The bank said loan losses had reduced in the second half of the year. The bank, which has been led by chief executive Peter Sands for just over three years and has fared better than most rivals during the downturn thanks to strong capital and liquidity, said 2010 had started “very strongly” and was ahead of a year ago. Wholesale banking continued to drive growth, with 2009 profit of $4.1 billion, up over a third from 2008. The consumer arm has fared less well due to the economic slowdown, rise in bad debts and as its business in Korea has struggled. Its profit fell a fifth to $867 million Korea delivered a better performance in the second half of the year, and Standard Chartered said it expected further improvement this year. The Middle East region would remain difficult due to problems in Dubai and credit problems elsewhere in the region, it said. Standard Chartered, which has been a strong advocate of performance-related pay, did not disclose how much management will be paid, but said total compensation compared to revenue was 32% for the year, down in each of the past two years and below most rivals. It spread the cost of a British bonus tax across its global bonus pool, it said. Source: LatestNews-Home - Livemint.com | 3 Mar 2010 | 12:45 am SpiceJet to induct nine aircraft by 2012The company is likely to break-even by end-March for this year, said SpiceJet's chief executive officer Sanjay Aggarwal.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 12:42 am Reliance Capital Partners' stake in Fame rises to 13.79% - Hindu Business Line
Source: Business - Google News | 3 Mar 2010 | 12:40 am StanChart to seek India listing in H1 2010 - Asia CEOHONG KONG (Reuters) - Standard Chartered Plc expects to list in Mumbai in the first half of this year, a senior executive said.Source: Reuters: Money News | 3 Mar 2010 | 12:29 am Key US senators near financial reform deal: SourcesSenate Banking Committee chairman Christopher Dodd, a Democrat, and Republican Senator Bob Corker have worked on a bipartisan bill for weeks meant to overcome disputes on an issue of high importance to the Obama administration.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 12:17 am US sets $25 billion plan to boost Internet access: ReportThe FCC's National Broadband Plan is set to be released later this month, offering a blueprint for bringing fast and affordable Internet access to more than 90 million Americans.Source: Daily News & Analysis: Money News | 3 Mar 2010 | 12:08 am ARSS optimistic about bagging orders from Posco - Business Standard
Source: Business - Google News | 3 Mar 2010 | 12:00 am TCS bags £600-m UK pension dealSoftware major Tata Consultancy Services (TCS) is all set to bag a £600 million outsourcing contract from the UK Government for managing a state-sponsored pension scheme that is still in theSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am Admen do not expect Budget boost for industryThe advertising industry is unlikely to get a boost after the Budget, as increase in fuel prices will pull down consumer sentiment in spite of personal incomes going up with the income taxSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am Local agency authorised to issue IP addressesIn a major win for the Indian Internet services industry, Australia-based Asia Pacific Network Information Centre (APNIC) has authorised a Government-appointed agency to issue IP addresses in India through a National InternetSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am Nissan to build Rs 2.5-lakh car with Ashok LeylandNissan is in talks with Ashok Leyland to develop a global small car costing under $5,000 (Rs 2.5Source: Business Line - Home Page | 3 Mar 2010 | 12:00 am Cities to be rated on public health/sanitationAfter ratings for hospitals and Initial Public Offerings (IPO), now cities will get graded on how well they handle their public health andSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am Domestic air travel set to turn costlierThe steps to be taken to mitigate the additional financial liability of domestic airlines due to the fresh proposals made in the Budget will be discussed on Wednesday inSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am Banks must link up with NGOs for financial inclusionWith the deadline to draw up a roadmap for providing banking services in every village with a population of over 2,000 by March 2011 fast approaching, the Reserve Bank of India has asked banks to establish linkages with NGOs for facilitating andSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am IFB Industries (Rs 80.8): BuyIFB Industries moved back in to the limelight on Tuesday and was featured among the top gainers with almost 9 per cent increase in price. The stock had lost steam since the beginning of February and had declined from Rs 95 to Rs 77 last month.Source: Business Line - Home Page | 3 Mar 2010 | 12:00 am Pre-Budget buying sends car sales zooming in FebruarySustained buoyancy in the market, an expanding portfolio, rising exports and pre-Budget sale in anticipation of an excise duty hike led Maruti Suzuki, to clock its best everSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am FIIs drive Sensex to 2-month highEquities surged to a two-month high on Tuesday, the first trading day after the Budget, as foreign institutional investors poured in a net of Rs 1,335 crore into IndianSource: Business Line - Home Page | 3 Mar 2010 | 12:00 am StanChart year profit tops $5 bln, strong JanuaryLONDON (Reuters) - Standard Chartered met expectations with a 13 percent jump in 2009 profit, as strong investment banking growth in its core Asian markets offset a jump in bad debts in the Middle East.Source: Reuters: Money News | 2 Mar 2010 | 11:51 pm Vedanta launches $775 million convertible, shares drop - Moneycontrol.com
Source: Business - Google News | 2 Mar 2010 | 11:50 pm Auto stocks subdued after strong rally - Economic Times
Source: Business - Google News | 2 Mar 2010 | 11:38 pm Airlines may lose 5 6 bn in 2010 despite demand revival IATAAirlines have started witnessing improvement in demand, but instead of profits they might register losses to the tune of $5.6 billion this year, says the latest International Air Transport Association (IATA) report has said.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 11:21 pm Apple sues HTC over phones with Google softwareEven though the suit did not name Google Inc as a defendant, Apple's move was viewed by many analysts as proxy for an attack on the Internet company, whose Nexus One smartphone is manufactured by HTC.Source: Daily News & Analysis: Money News | 2 Mar 2010 | 11:11 pm Rupee gains 14 paise against dollar in early tradeThe rupee gained 14 paise against the dollar to climb to a six-week high at 45.87 in the early trade today in line with other firming Asian currencies.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 11:07 pm Apple sues rival HTC as phone competition risesSan Francisco: As Apple Inc.’s iPhone faces stiffer competition in the lucrative market for smart phones, the company is going after one of its main rivals with patent lawsuits claiming theft of touch screen technology and other features. The complaints, which Apple filed Tuesday, cover a slew of models made by Taiwanese phone maker HTC Corp., including the Nexus One, G1 and myTouch 3G— all using the free, rival Android mobile operating software from Google Inc. Non-Android phones include HTC’s Touch series. But consumers shouldn’t worry about buying or using any of those phones. Patent cases can take months or years to resolve, sometimes longer than the life of these phones, and agreements over licensing and royalty payments often emerge. Still, it shows Apple’s get-tough strategy as significant competitors emerge. “We can sit by and watch competitors steal our patented inventions, or we can do something about it,” Apple CEO Steve Jobs said in a statement. “We’ve decided to do something about it.” Apple said HTC has infringed on 20 of its patents covering aspects of the iPhone’s user interface and hardware. Several relate to technology behind touch screens, including one that lets a device’s screen detect more than one finger touch at a time, allowing someone to zoom in or out by spreading their fingers apart or pinching them together, for instance. Another patent refers to using sensors on a device to gather information about a user’s activity or surroundings and letting the device react by, for example, lighting up. Google, whose software powers many of the HTC phones, was not listed as a defendant. When the iPhone first came out in 2007, it changed the smart phone landscape by introducing a stylish, easy-to-use device. Apple later followed with an application store that extended the capabilities of the device far beyond just making phone calls, checking e-mails and surfing the Web. Since the iPhone’s debut, Apple has had a lock on much of the smart phone market, alongside Research In Motion Ltd., which makes the popular BlackBerry devices. However, over the last year or so, more competition has emerged from such phone makers as HTC and Motorola Inc., which are rolling out smart phones that use Google’s Android software. Not only do these phones appeal to consumers, but they also work on numerous wireless networks, unlike the iPhone, which is still limited in the US to AT&T Inc. In a court filing, Apple said HTC’s phones improperly used Apple’s patent-protected technologies without a proper license. Apple is seeking unspecified damages and court orders to block US sales of HTC’s Android phones and other products that Apple says violate its patents. The complaints were filed with the US International Trade Commission, which has the power to block imports of products and parts made with contested technology, and US District Court in Wilmington, Delaware, which can award damages and order HTC to stop sales. In an e-mail message, HTC spokeswoman Linda Mills said the company only learned of the lawsuits on Tuesday through media reports and hasn’t had time to review Apple’s claims. “HTC values patent rights and their enforcement but is also committed to defending its own technology innovations,” Mills said. Technology companies routinely file complaints against competitors over intellectual property. Apple itself faces litigation over the iPhone and other products from the Finnish cell phone maker Nokia Corp., which claims that Apple is using patented technology that helps cut manufacturing costs, shrink the size of consumer gadgets and preserve battery life. Apple responded to Nokia’s complaint by filing a countersuit. Canaccord Adams analyst Peter Misek noted that Apple has not sued that many companies in the past, so the HTC lawsuit must either be a strategic move or the result of what Apple considers a clear infringement on its patents. If Apple prevails, HTC would face a big roadblock, In-Stat analyst Allen Nogee said. Nogee said Apple likely waited for awhile to file the complaints because, with several devices now out, it could see a bigger financial gain in the end. “If they pounce the first day a phone comes out that infringes on a patent then the biggest take they can have is the revenue from that one phone,” he said. Shares of Apple, which is based in Cupertino, California, slipped 14 cents to close Tuesday at $208.85. Source: Tech News - Livemint.com | 2 Mar 2010 | 10:28 pm Airlines may lose $5.6 bn in 2010 despite demand revival: IATADubai: Airlines have started witnessing improvement in demand, but instead of profits they might register losses to the tune of $5.6 billion this year, says the latest International Air Transport Association (IATA) report has said. “The 3% increase in freight volumes from December to January is particularly encouraging. We can start to see the future with some cautious optimism. But better volumes do not necessarily mean better profits. Passenger yields are still 15% below peak levels and we expect 2010 losses to be at $5.6 billion,” IATA director general and CEO Giovanni Bisignani said in a statement. IATA has also said in January this year demand for international scheduled air traffic has showed improvement. January passenger demand was up 6.4%, while a 1.2% increase in capacity pushed load factor to 75.9% compared to last year, it said. International cargo demand showed a 28.3% improvement with a 3.7% increase in capacity pushing load factor to 49.6%, which is a significant change from 40.1% recorded in January 2009. The year-on-year increases reflect a steady improvement from the precipitous fall in demand that characterised the early part of 2009, rather than merely a dramatic improvement in the month this year, the report said. However, demand must improve by a further 2% to return to the peak levels of early 2008, IATA said. Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 10:24 pm Ranbaxy says unable to launch Flomax generic in USRanbaxy was expected to launch the cheaper copycat version of Astellas Pharma's Flomax in the United States this month, and analysts were expecting it to significantly boost earnings in the near term.Source: Daily News & Analysis: Money News | 2 Mar 2010 | 10:22 pm Oil lower on indications of weak US demandNew York's main contract, light sweet crude for April delivery was seven cents lower at $79.61 a barrel. Brent North Sea crude for April delivery dropped four cents to $78.14 a barrel.Source: Daily News & Analysis: Money News | 2 Mar 2010 | 10:02 pm Nikkei edges up on Toyota, resource stocksToyota Motor Corp gained 3% on short-covering after a drop in its February US sales of nearly 9% was better than had been expected given the company's massive recall and the ensuing fallout.Source: Daily News & Analysis: Money News | 2 Mar 2010 | 9:58 pm Air India risks turbulence as it seeks to cut costsMumbai: State-run carrier Air India is set for dramatic cost-cutting in the months ahead as part of a government bailout that will test the willingness of workers to accept painful restructuring. Last month, the Indian government approved an injection of $173 million for the ailing company and Civil Aviation minister Praful Patel has told the airline it must “shape up” to receive the funds. The money is part of a phased planned government injection of Rs50 billion ($1.1 billion) over three years for the carrier, which has reported massive losses in recent years. But the government has insisted the money will only be handed over if the airline reduces costs — partly by reducing its bloated fleet size by some 30% to 105 aircraft by March 2011, and also by cutting wages. “The airline is in a mess. Tough decisions will need to be made, for which the Air India leadership needs a free hand,” said KPMG India aerospace analyst Amber Dubey, arguing that a temporary shutdown might be necessary. Air India’s once-dominant market share has shrunk to 18% in the face of fierce competition from private carriers, including more nimble low-cost operators, after India liberalised its commercial aviation market in the 1990s. Some analysts have suggested privatisation but the government insists such a move is not on the cards, and that the carrier has a role to play in flying to remote parts of the nation not served by commercial airlines. The group operates 435 flights to 117 destinations in India and overseas daily, with a fleet of 146 aircraft. Average salaries at Air India, which employs more than 31,000 people, are 15 to 20% above those at private-sector rivals. It averages 230 employees per aircraft, compared with 105-120 at private airlines. “Rationalising manpower is a process and will take time,” Air India chairman and managing director Arvind Jadhav told reporters earlier this month. The company tried last year to cut loss-making routes and wages, but it ran into stiff resistance from pilot and staff labour organisations and was hit by wildcat strikes. A bid to cut performance-linked pay sparked a five-day walkout by pilots in September, resulting in the cancellation of 400 flights. George Abraham, secretary of the Aviation Industry Employees Guild, a trade union, is willing to consider salary cuts but “only where performance-linked incentives for senior pilots and aircraft engineers are substantial”. Outright job cuts are out of the question, he said, adding: “No decision can be taken without our consent.” But aviation analyst Mahantesh Sabarad at Mumbai-based Centrum Broking said: “The airline is overstaffed. Job cuts is the way ahead for Air India.” The government’s planned bailout calls on Air India to match the $1.1 billion in handouts with a similar amount in cost cuts and increased revenue, which analysts say will be a challenge. The airline declared a $1.19-billion net loss for the year to March 2009 due to the global economic downturn and reduced passenger traffic. For the first half of the current fiscal year, the airline trimmed its operating loss by 23% to $438.2 million but it is still a long way from profit, industry experts say. With India’s economy rebounding, private carriers are expected to post a total profit of $250 million to $300 million in the fiscal year starting in April, the Centre for Asia-Pacific Aviation said. But Air India will remain in the red, dragged down by high operational costs and a fall in passenger numbers, the Singapore-based consultancy said. “Air India will continue to have cash deficits for the next five to seven years which could cumulatively amount to four to five billion dollars,” said Kapil Kaul, India chief of the consultancy. Source: Home - Livemint.com | 2 Mar 2010 | 9:43 pm Rupee gains 14 paise against dollar in early tradeThe rupee gained 14 paise against the dollar to climb to a six-week high at 45.87 in the early trade today in line with other firming Asian currencies.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 9:39 pm Sensex up 120 points as post budget rally continuesThe Bombay Stock Exchange benchmark Sensex shot up by 120 points, or 0.70 per cent, in the opening trading today on steady inflow of capital by foreign funds, prompted by the growth oriented Budget.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 9:29 pm Adani case: Gujarat High Court judge pulls up registrarA Gujarat High Court judge has pulled up the court registrar for placing before him a petition by "rich and powerful" businessman Rajesh Adani without completing the official procedure.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 9:25 pm Sensex up 107 points in early tradeA benchmark index for Indian equities opened on a firm note and was ruling 107 points higher, about 10 minutes into trade on Wednesday.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 9:21 pm Asia stocks rise on Greece hopes, euro reboundsSingapore: Asian shares rose for a fourth straight session and the euro extended its rebound against the dollar on Wednesday as investors held out hope for a bailout package for debt-ridden Greece. The MSCI index of Asia Pacific shares outside Japan was up 0.5%, helped by shares in the materials sector as commodity prices pushed higher. Hong Kong’s Hang Seng Index, a favourite among foreign investors, edged up with HSBC gaining more than 1% as investors covered short positions after Tuesday’s sharp fall. HSBC stocks tumbled 7% on Tuesday after Europe’s biggest bank posted disappointing 2009 results. Japan’s Nikkei stock average clawed up 0.3%, led by a 3% jump in Toyota Motor Corp after a drop in its February U.S. sales turned out to be smaller than expected given the company’s massive recall. But trade was lacklustre, with investors sidelined ahead of key U.S. jobs data due out on Friday as they searched for clues about the strength of the U.S. economic recovery in the wake of a string of mixed indicators. “Fundamentally things still aren’t that good, with spending and jobs still not recovering that much even though manufacturing isn’t doing that poorly,” said Hiroaki Osakabe, a fund manager at Chibagin Asset Management. “The recovery will take time. People were a bit too optimistic in January, especially regarding Japanese stocks.” The euro rose to $1.3640, pulling away from a near 10-month low of $1.3433 hit the previous day as investors expected that Greece would announce new austerity measures and win European Union financial support. Prime Minister George Papandreou has called a cabinet meeting for Wednesday. On Tuesday, Papandreou urged civil servants and pensioners to accept sacrifices to save the debt-burdened nation. The European Commission said Greece must take additional measures to reach its deficit reduction target of 4% of gross domestic product in 2010. Fears about debt problems in Europe have rattled financial markets in recent weeks. Sterling rose to $1.5063 on short-covering after hitting a 10-month low of $1.4781 earlier in the week. It has been hurt by worries that an election due in months could give neither the opposition Conservatives nor the ruling Labour Party a parliamentary majority. Gold hovered near a six-week high hit the previous day as volatility in currencies prompted some investors to turn to a safe haven. Oil prices were steady near $79.55 a barrel after rising 98 cents a day earlier. Source: Home - Livemint.com | 2 Mar 2010 | 8:47 pm Oil steady below $80 after mixed US inventory reportSingapore: Oil was little changed below $80 on Wednesday after an industry report showed US crude inventories climbed more than expected on growing imports, while distillate stockpiles tumbled. Tuesday’s report from the American Petroleum Institute (API) showed a larger-than-forecast 4.1-million-barrel drop in distillate fuel supplies last week, including heating oil and diesel. “Yesterday’s API data was quite mixed,” said Serene Lim, a Singapore-based oil analyst at ANZ. US crude futures for April fell 21 cents to $79.47 a barrel by 8:58am, London ICE Brent slid 28 cents to $77.90. The front-month US contract on Tuesday hit a seven-week intra-day high of $80.95 after the euro rebounded from a 9-month low against the dollar. “The conditions are still rather difficult for prices to stay above $80 because we are not looking at very firm US economic data yet,” Lim said. “Oil goes up and people profit-take and then it comes down again.” Oil touched $83.95 a barrel in New York on 11 January , its highest price in 15 months. Analysts forecast data from the U.S. Energy Information Administration (EIA) due out on Wednesday at 9:00pm, would show a 1.4 million-barrel increase in crude stocks, a 900,000-barrel drop in distillates and a 600,000-barrel gain in gasoline. US gasoline stocks rose 900,000 barrels in the week to 26 February, the API said. Refinery maintenance in Asia and sustained northern hemisphere heating demand have raised expectations that a distillate surplus held in floating storage will dwindle. Asian gas oil crack spreads, the premium at which the fuel trades over crude oil, reached their widest level in almost a year on Tuesday. But depressed fuel oil values are cutting demand for heavy sour crude, forcing producers to deepen discounts to some regions. Top world oil exporter Saudi Arabia cut the official selling price of most of its crude grades in April to customers in Asia, state oil company Saudi Aramco said on Tuesday. Investors have looked to wider economic data over the past year for signs of economic recovery and a potential rebound in energy demand. Opec meets next on 17 March and ministers are already suggesting there will be no change to current output quotas. “Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling,” Iraqi Oil Minister Hussain al-Shahristani told Reuters on Tuesday. Source: Home - Livemint.com | 2 Mar 2010 | 8:45 pm Toyota pressed by lawmakers as US sales dropDetroit/Washington: Toyota Motor Corp posted a second consecutive month of declining US sales on Tuesday as lawmakers pressed the automaker to account for the chain of decisions that led to its safety crisis and said they would consider new regulations in response. Toyota’s US sales dropped almost 9% in February from an already-low level a year earlier in the depths of the economic crisis, but the fall was not as bad as some had feared and its shares jumped 3% in Tokyo trade. To battle the decline in sales that began in January with a series of safety recalls, Toyota said it would attempt to win back consumers with discounts including zero-percent financing for five years on top-selling models like the Camry. Meanwhile, the US Senate Commerce Committee concluded more than five hours of hearings on Toyota’s safety problems with another rebuke for the world’s top automaker. Senator John Rockefeller, a Democrat from West Virginia who chairs the committee, said a trio of top Toyota executives appeared to be ducking specific questions about the decisions that led Toyota to safety problems that culminated in the recall of about 8.5 million vehicles globally. “This has been useful but not as useful as it might have been,” Rockefeller told the Toyota representatives, including the automaker’s quality chief, Shinichi Sasaki, and its top engineer, Takeshi Uchiyamada. “I regret that because I know what kind of company you are and can be again.” Analysts said Toyota’s February sales results were not as bad as some had feared, suggesting the automaker could begin to see a bounce back in its largest market as soon as this month. Toyota shares jumped 3% in morning trade in Tokyo, outperforming peers such as Nissan Motor, which were weighed by the yen’s advance against the dollar. “Toyota is down only 9%. With all of their troubles, it speaks highly of how positive their brand strength is among consumers,” said Jesse Toprak, analyst with Truecar.com. Yoshihiko Tabei, chief analyst at Kazaka Securities in Tokyo, said he did not expect Toyota to suffer a sharp sales slide from March onwards in connection with the safety woes. “I think its shares have already priced in negative factors and the bad news has pretty much run its course,” he said. “Rather, my concern is the absence of government incentives and a higher yen, and they affect all (Japanese) carmakers, not just Toyota.” Rockefeller, who was instrumental in helping to bring a Toyota engine plant to West Virginia in the mid-1990s, said reforms were needed to mandate brake override systems for all automakers. Toyota has vowed to make the software available on all 2011 models as a safeguard that could prevent cases of sudden acceleration by shutting off acceleration in cases when the brake and the gas pedal are both engaged. The automaker also has said it will offer the same safeguard on some models going back to 2005. But Rockefeller suggested that Toyota should go further by offering brake override systems for all of its vehicles on US roads, a step that could add billions of dollars to the bill for its safety problems. Earlier, Rockefeller had said Toyota documents examined by the Senate panel had included a warning from 2007 about the automaker’s growing problems with US safety regulators. In an internal presentation, Jim Press, the president of Toyota’s North American operations, had warned that the company was facing more scrutiny from the National Highway Traffic Safety Administration. “I’m deeply concerned this reputation was built on a house of cards,” Senator Frank Lautenberg told the commerce committee hearing regarding Toyota’s long-held reputation as a leader in quality and safety. Toyota’s current North American chief Yoshi Inaba said the automaker would deliver the first three computers to NHTSA on Wednesday capable of reading data from crash recorders equipped on Toyota vehicles. Until now, only Toyota has had a reader capable of extracting such data, a point that has drawn criticism from some lawmakers and lawyers for people injured in Toyota crashes. Toyota declined to say how much its new sales incentives would cost, only saying that the promotion would include “unprecedented” offers on more than 80 percent of its line-up in the United States. In addition to its financing incentives, Toyota will offer attractive leasing terms and free maintenance for two years for returning Toyota customers. Barclays Capital analyst Brian Johnson said Toyota’s discounting raised the pressure on its rivals to offer their own competitive discounting. “These expensive programs should represent a material step up in cost of incentives,” Johnson said in a note for clients. He estimated that it would cost Toyota almost $4,700 per vehicle to offer zero-percent financing for five years, an effective discount that almost triples what the automaker had been spending on incentives. Unintended acceleration in Toyota and Lexus vehicles has been linked to at least five US crash deaths since 2007. Authorities are investigating 47 other crash deaths over the past decade linked to complaints of alleged unintended acceleration in Toyota vehicles. Source: World Business - Livemint.com | 2 Mar 2010 | 8:07 pm Toyota pressed by lawmakers as US sales dropDetroit/Washington: Toyota Motor Corp posted a second consecutive month of declining US sales on Tuesday as lawmakers pressed the automaker to account for the chain of decisions that led to its safety crisis and said they would consider new regulations in response. Toyota’s US sales dropped almost 9% in February from an already-low level a year earlier in the depths of the economic crisis, but the fall was not as bad as some had feared and its shares jumped 3% in Tokyo trade. To battle the decline in sales that began in January with a series of safety recalls, Toyota said it would attempt to win back consumers with discounts including zero-percent financing for five years on top-selling models like the Camry. Meanwhile, the US Senate Commerce Committee concluded more than five hours of hearings on Toyota’s safety problems with another rebuke for the world’s top automaker. Senator John Rockefeller, a Democrat from West Virginia who chairs the committee, said a trio of top Toyota executives appeared to be ducking specific questions about the decisions that led Toyota to safety problems that culminated in the recall of about 8.5 million vehicles globally. “This has been useful but not as useful as it might have been,” Rockefeller told the Toyota representatives, including the automaker’s quality chief, Shinichi Sasaki, and its top engineer, Takeshi Uchiyamada. “I regret that because I know what kind of company you are and can be again.” Analysts said Toyota’s February sales results were not as bad as some had feared, suggesting the automaker could begin to see a bounce back in its largest market as soon as this month. Toyota shares jumped 3% in morning trade in Tokyo, outperforming peers such as Nissan Motor, which were weighed by the yen’s advance against the dollar. “Toyota is down only 9%. With all of their troubles, it speaks highly of how positive their brand strength is among consumers,” said Jesse Toprak, analyst with Truecar.com. Yoshihiko Tabei, chief analyst at Kazaka Securities in Tokyo, said he did not expect Toyota to suffer a sharp sales slide from March onwards in connection with the safety woes. “I think its shares have already priced in negative factors and the bad news has pretty much run its course,” he said. “Rather, my concern is the absence of government incentives and a higher yen, and they affect all (Japanese) carmakers, not just Toyota.” Rockefeller, who was instrumental in helping to bring a Toyota engine plant to West Virginia in the mid-1990s, said reforms were needed to mandate brake override systems for all automakers. Toyota has vowed to make the software available on all 2011 models as a safeguard that could prevent cases of sudden acceleration by shutting off acceleration in cases when the brake and the gas pedal are both engaged. The automaker also has said it will offer the same safeguard on some models going back to 2005. But Rockefeller suggested that Toyota should go further by offering brake override systems for all of its vehicles on US roads, a step that could add billions of dollars to the bill for its safety problems. Earlier, Rockefeller had said Toyota documents examined by the Senate panel had included a warning from 2007 about the automaker’s growing problems with US safety regulators. In an internal presentation, Jim Press, the president of Toyota’s North American operations, had warned that the company was facing more scrutiny from the National Highway Traffic Safety Administration. “I’m deeply concerned this reputation was built on a house of cards,” Senator Frank Lautenberg told the commerce committee hearing regarding Toyota’s long-held reputation as a leader in quality and safety. Toyota’s current North American chief Yoshi Inaba said the automaker would deliver the first three computers to NHTSA on Wednesday capable of reading data from crash recorders equipped on Toyota vehicles. Until now, only Toyota has had a reader capable of extracting such data, a point that has drawn criticism from some lawmakers and lawyers for people injured in Toyota crashes. Toyota declined to say how much its new sales incentives would cost, only saying that the promotion would include “unprecedented” offers on more than 80 percent of its line-up in the United States. In addition to its financing incentives, Toyota will offer attractive leasing terms and free maintenance for two years for returning Toyota customers. Barclays Capital analyst Brian Johnson said Toyota’s discounting raised the pressure on its rivals to offer their own competitive discounting. “These expensive programs should represent a material step up in cost of incentives,” Johnson said in a note for clients. He estimated that it would cost Toyota almost $4,700 per vehicle to offer zero-percent financing for five years, an effective discount that almost triples what the automaker had been spending on incentives. Unintended acceleration in Toyota and Lexus vehicles has been linked to at least five US crash deaths since 2007. Authorities are investigating 47 other crash deaths over the past decade linked to complaints of alleged unintended acceleration in Toyota vehicles. Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 8:07 pm Ford beats GM in US car salesFord has knocked General Motors off its long-running pole position in the US car market, according to monthly sales figures released on Tuesday, while Toyota took less of a hit to its bottom line than many had expected.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 7:29 pm Apple sues HTC for iPhone patent infringementApple announced on Tuesday that it had filed a lawsuit against HTC, maker of the Nexus One smartphone from Google, accusing the Taiwan company of infringing on 20 iPhone patents.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 2:32 pm Lyondell board rejects RIL bidMukesh Ambani's ambitious plans to buy out LyondellBasell received a severe jolt with the latter's board rejecting RIL's $14.5 billion bid to acquire the Netherlands-based firm that is now coming out of bankruptcy.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 1:00 pm Govt may divest 30% in BSNL, up from 10%This is a three-fold hike in the investment limit from 10% proposed earlier, which has been opposed by BSNL's unions and executive associations.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 12:58 pm Car sales driving on fast trackBudget scare pumped up car sales in February with new purchases racing to record highs as people rushed to showrooms to beat the expected price hikes post-Budget.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 12:57 pm Post-Budget, sensex up 343 points, Nifty above 5kThe inflow of foreign funds on Dalal Street gave the BSE sensex a 343-point push as it ended at 16,773, a 5-week closing high.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 12:53 pm Exports keep rising, grow 11.5% in JanIndia's merchandise shipments rose 11.5% in January, continuing the uptrend for the third consecutive month and strengthening the opinion that overseas demand was picking up as economies recover from slowdown.Source: India Business News | Business News - Times of India | 2 Mar 2010 | 12:52 pm Who will float the next private bank? IDFC seems to be an exception among non-banking finance companies (NBFCs) as almost every firm in this space and many Indian corporations are keen to float banks after finance minister Pranab Mukherjee last week said the country’s banking regulator is considering giving new banking licences to private sector companies and NBFCs could also be considered, if they meet the Reserve Bank of India’s (RBI) eligibility criteria. Also Read Tamal Bandyopadhyay’s earlier columns RBI opened doors for private firms in the banking space in 1993; in 2003, it had allowed two more to set up shop. Applications for banking licences from some Indian corporations have been lying with RBI for 17 years or so and they will have to make fresh requests if they are serious about their intentions. Atul Kumar Rai, managing director and CEO of India’s oldest financial institution, IFCI Ltd, has said his organization would be a contender. There are others too, such as Srei Infrastructure Finance Ltd, Religare Enterprises Ltd, Shriram Transport Finance Co. Ltd, L&T Finance Ltd, Bajaj Finserv Ltd, Indiabulls Financial Services Ltd, Birla Capital and Financial Services Ltd, Tata Capital Ltd and Reliance Capital Ltd, to name a few. The ambition of the Birlas, Tatas and the Reliance-Anil Dhirubhai Ambani Group (R-Adag) is well known. At one point of time, the Tatas wanted to acquire 10% stake in UTI Bank Ltd (the earlier avatar of Axis Bank Ltd), but the group junked the idea after it failed to get an assurance from the banking regulator that corporations would be allowed to own a bank in due course. Under the existing guidelines, the ownership of a bank has to be diversified and no entity can own more than 10% in a bank. R-Adag boss Anil Ambani has on many occasions said that his group wants to own a bank as soon as the country’s regulations allow for it. Yet another strong contender is Sahara India Financial Corp. Ltd, India’s biggest residuary NBFC, which was barred by RBI in 2008 from taking deposits from the public. Initially, RBI asked it to wind down its operations by 2011. After several meetings with Sahara, RBI set a three-year sunset window on Sahara India Financial, allowing it to accept fresh deposits maturing until 30 June 2011. Sahara India will have to repay the deposits when they mature and bring down the aggregate liability to depositors to zero on or before 30 June 2015. A banking licence allows a corporation to raise cheap money from the public. Besides, no other business is as leveraged as banking, as for every Rs9 worth of capital, banks can build Rs100 worth of assets. Some aspirants have informally started lobbying with the ministry and RBI, but the latter is expected to go slow on this. Before issuing any fresh licence, it may review existing norms and this will take about two years. In other words, the fresh set of new banks is unlikely to start operations before fiscal 2013. The last time RBI fine-tuned the ownership norms of private banks was in 2004. At that time, it raised the minimum capital requirement to float a bank from Rs100 crore to Rs300 crore and focused on the so-called fit-and-proper criterion for the ownership. The minimum capital requirement is expected to go up further, but that would not pose as an entry barrier for most of the aspirants because they have high capital and reserves. For instance, Reliance Capital’s net worth, or capital and reserves, is Rs6,806 crore, that of Shriram Transport is Rs2,292 crore and Bajaj Finserv’s Rs1,205 crore. RBI is also expected to prefer NBFCs with diversified holdings. If indeed that happens, firms such as L&T Finance will have an advantage over others. In 1993, when India first opened up the banking sector to private firms, the objective was to infuse competition. To a large extent that has been fulfilled, as the so-called new generation private banks such as ICICI Bank Ltd, HDFC Bank Ltd and Axis Bank have forced India’s staid public sector banks to become more nimble-footed. But these banks have not been able to spread banking across the country as their focus has all along been on urban India. Under the regulation, all banks need to set up at least one branch in rural and semi-urban India for every three branches in urban India, but these banks are not excited about the business prospects in rural India. Similarly, under the licensing norms, they needed to have their registered office outside the metros. Indeed, they have their registered offices in Pune, Vadodara and Ahmedabad and such places, but this only ensures that they hold their annual general meetings there while the business focus remains on the over-banked metros. At least one private bank has even sold its registered office in a non-metro to a public sector bank! Some RBI officials say the metros should be declared no-entry zones for the new set of banks and they should be asked to focus only on rural and semi-urban India. But that may not work unless they are given enough incentives and regulatory forbearance such as lesser reserve requirements, etc. Former finance minister P. Chidambaram in the late 1990s mooted the concept of local area banks but they never took off in the absence of incentives. They could be allowed in urban India as well. When competition intensifies, bank margins will be under pressure and both the new entrants as well as existing banks will be forced to reach out to rural India looking for new business. Isn’t that the best way to spread financial inclusion? Tamal Bandyopadhyay keeps a close eye on all things banking from his perch as the Mumbai bureau chief of Mint. Please email comments to bankerstrust@livemint.com Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 12:45 pm ITC makes 4.3% post-Budget recovery But the cynosure of attention was the cigarette business. The bad news was that the Budget had hiked excise duties on cigarettes of specified lengths. Cigarettes of lengths 60-70mm and 70-75mm saw hikes of 15 paise per stick, or 18% and 11%, respectively. More expensive cigarettes in the 75-85mm range saw a hike of 20 paise per stick, or 11%. In absolute terms, the percentage hike was not as significant as it appears in relative terms. After adding state levies and other taxes, the net increase may still work out to be higher.  Graphic: Yogesh Kumar/Mint The hike in duties will not affect ITC in the longer run. The economy is expected to grow even higher in the next few years. Underlying demand for cigarettes will be strong and is unlikely to be affected by price hikes. Moreover, the Budget also increased duties on all kinds of tobacco, including chewing tobacco. That also meets ITC’s concern of a level playing field between various forms of tobacco. ITC’s hotel business got a boost, as the Budget has allowed hotels that start functioning after 1 April an investment-based incentive. A deduction of 100% of the investment in constructing a hotel can be availed, which will boost profitability. The overall outlook for the firm, thus, is not as bad as it first appeared when the Budget was announced. Write to us at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 12:45 pm Corporate | Jagdish Capoor steps down from BSEMumbai: The Bombay Stock Exchange (BSE) on Tuesday said Jagdish Capoor, 71, has resigned as non-executive chairman as well as a member of the board, citing health problems. Capoor had been the BSE chairman since 25 June 2008, his second stint in that position. He returned as chairman after his successor Shekhar Datta resigned following a controversy over the exchange’s market making mechanism in the derivatives segment. Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 12:45 pm Govt to infuse additional equity to double IIFCL’s annual lendingNew Delhi: In its quest to get India Infrastructure Finance Co. Ltd (IIFCL) to more than double its annual lending in the next fiscal, the government is willing to put in extra equity capital into the infrastructure lender over and above the Rs500 crore promised in the Union Budget, as well as overturn an earlier decision that would have forced the company to adhere to rules framed by the Reserve Bank of India (RBI) for finance companies. According to a senior finance ministry official, who did not want to be named, the decision to suspend the move to get IIFCL to follow RBI norms for finance companies is to make sure such regulations do not hinder the company’s stiff lending targets. IIFCL was set up in January 2006 as a state-owned financier of road, railway, airport, port and power projects, which often struggle to get long-term funding. It has been asked to more than double its disbursements in fiscal 2011. In his Budget speech on 26 February, finance minister Pranab Mukherjee said the lender’s disbursements are expected to reach around Rs20,000 crore by March 2011, from the Rs9,000 crore it will manage by the end of this month.  Graphic: Ahmed Raza Khan/Mint The company’s share capital was Rs1,800 crore, according to Budget documents. In the 2010-11 Budget, the government announced it would infuse another Rs500 crore as equity. IIFCL currently does not fall under the purview of RBI or any other financial sector regulator. In an interview with Mint in November, finance secretary Ashok Chawla had said: “We want them to get subjected in the same manner in which RBI regulates NBFCs (non-banking financial companies).” “It will not be under RBI’s purview, but the same sort of prescriptions will apply to it. It will be monitored by the government,” Chawla said. IIFCL currently follows RBI guidelines on most things except capital adequacy and exposure norms. According to Raman Aggarwal, co-chairman of Finance Industry Development Council, an industry body of NBFCs, RBI’s norms limit finance companies’ exposure to 10% of advances for a single firm and 25% for a group. The capital adequacy mandated is 12% after accounting for the risks associated with loans, he said. IIFCL has been asked by the finance ministry to act as a “force multiplier” in infrastructure financing. So far, the bulk of the company’s loans have been to power and roads. According to IIFCL’s website, as on 21 October, 46% (Rs9,629 crore) of the sanctioned loans were to power projects. Another 40% of sanctioned loans (Rs8,275 crore) were to road projects. The company had outstanding sanctions of Rs20,888 crore to part-finance infrastructure projects worth Rs1.68 trillion. “The finance ministry may want the least amount of flexibility,” said Amrit Pandurangi, who heads transport practice at audit and consulting firm PricewaterhouseCoopers, on the government’s options for IIFCL. He said that while IIFCL may need more flexibility than other NBFCs, the government should still put in place some regulatory oversight considering the company may well be the largest infrastructure lender in the country in the next few years. “Some items, like exposure to a particular industry, they should be given some flexibility. But some others, like liquidity and exposure to a specific group, they should be allowed to decide on their own,” Pandurangi added. sanjiv.s@livemint.com Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 12:45 pm Hindustan Dorr gets tech edge with buy DavyMarkham is a 180-year-old firm with revenue of around £20 million. It designs and manufactures large equipment for mining, power, oil and gas and nuclear segments—areas with high business prospects in India. After being on the verge of closure about four years ago, Endless Llp, the private equity investor, turned it around. HDO, a 55% unit of the Hyderabad-based IVRCL Group, is known for its solid-liquid separation technology used in a host of industries such as environmental engineering, fertilizer and pulp and paper and applications such as mineral beneficiation—the process of adding value to an ore to enhance its content. It will now market these solutions overseas using Davy’s presence in Europe and Canada. The acquisition comprises of £8.5 million paid towards acquiring the equity, while another £1 million will be payable towards reducing debt in Davy. An interesting element of the acquisition was that HDO purchased Davy sans the land and housed it on land leased for 25 years in the UK, which “protected HDO from sinking money into land which would not only make the deal more expensive, but reduce the return on equity”, says a person familiar with the matter. HDO, which carries hardly any debt on its books, funded the entire acquisition through internal accruals. The acquisition has been done at around 6.2 times Davy’s operating profit of £1.3 million registered during fiscal 2009. The only concern, common to companies in the developed world, is the relatively high staff cost (around 30-40% of sales for Davy), compared with India (at HDO, it is around 5-6% of sales). The immediate challenge for HDO is to double Davy’s revenues in fiscal 2011, in order to offset costs, which in turn will improve profit margins. Davy’s full-year revenue will reflect in HDO’s accounts from FY2011. For 2009-10, about £3 million only will be reflected in the books, as the acquisition was completed in the fourth quarter of the fiscal. There’s little doubt the acquisition is positive in the long term. It is also cheap and the markets cheered it, sending the stock up 6.3% on Tuesday. The stock has made steady gains in recent months, but at around 12 times expected FY 2010 earnings, it isn’t expensive. Write to us at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 2 Mar 2010 | 12:45 pm Trehan prescribes lower charges for healthy returnsThe opening of the country's biggest private healthcare facility, Medanta the Medicity, was quiet but the facility is buzzing with activity. Promoted by Naresh Trehan, the iconic cardiac surgeon who set up Delhis Escorts Heart Institute 22 years earlier, the hospital complex in the satellite city of Gurgaon has already treated hundreds of patients in the past few weeks, though it is yet to be officially inaugurated.Source: Business Standard | Front Page Headlines | 2 Mar 2010 | 11:38 am Auto, metal stocks lead 2 per cent rise in SensexAutomobile and metal stocks helped the Sensex, the Bombay Stock Exchange's benchmark 30-share index, rise about 2 per cent on Tuesday after a three-day post-Budget break, with foreign investor inflows and firm global markets adding to general market approval for Pranab Mukherjee's 2010-11 Budget.Source: Business Standard | Front Page Headlines | 2 Mar 2010 | 11:36 am Nissan in talks with Leyland for small carJapanese firm launches fourth-generation Micra which goes on sale in India in May.Source: Business Standard | Front Page Headlines | 2 Mar 2010 | 11:35 am Lyondell spurns RIL s revised offerReliance Industries Ltd’s revised $14.5 billion (Rs 66,715 crore) offer to acquire control of LyondellBasell faced hurdles again on Tuesday after reports of its rejection by the creditors of the bankrupt Dutch company. Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 11:26 am Budget effect Sensex up 2 1The Sensex on Tuesday touched a 23-day high as positive budget proposals and strong global markets kept investor sentiments upbeat. The benchmark index of the Bombay Stock Exchange (BSE), which opened 243 points up, ended the day with a gain of 343 points, or 2.09 per cent, at 16,772 points. Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 11:24 am Questions on Tata JV after Pru buys AIG Asian opsThe Tata Group said on Tuesday that it was studying the impact of insurance partner American International Group (AIG) selling its Asian operations to British insurance major Prudential, which is an ally of ICICI Prudential — a rival of Tata AIG. Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 11:21 am On a hat trick Jan exports upThe country’s exports grew 11.5 per cent in January, recording a positive growth for the third successive month and triggering hopes that the worst might be over, reports HT Correspondent. Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 10:56 am Nissan Ashok Leyland in talks for global small carAfter collaborating with two-wheeler major Bajaj Auto to mount the first real challenge to the Rs 1-lakh car, Tata Nano, Japanese car-maker Nissan may well find a partner in commercial vehicles heavyweight Ashok Leyland for its latest challenge, another small car, this time to target India’s largest selling car, Maruti’s Alto, reports Sumant Banerji.Source: HindustanTimes.com - Top Business News Headlines | 2 Mar 2010 | 10:50 am Nokia starts new phone line with C5 modelHelsinki: Nokia unveiled a new C5 smartphone model on Tuesday, hoping to benefit from a booming demand for cheap smartphones and from rising consumer appetite for mobile social networking. The C5 handset will be one of the cheapest smartphones from Nokia, selling for €135 ($183), excluding taxes and subsidies, and hitting the shelves next quarter. “It is products like this that will grow Nokia marketshare in the smartphone segment and help them to increase their average sale prices,” said John Strand, chief of telecoms consultancy Strand Consult. Volumes on the smartphone market are seen surging in 2010, with some analysts forecasting up to 50% growth, as handset vendors are pushing advanced features, once exclusive to pricey top-end models, into cheaper and cheaper phones. Nokia continues to lead the global smartphone market with an around 40% market share, but it has lost ground to Apple’s iPhone and RIM’s Blackberry. The Finnish firm is in the midst of a massive revamp of its smartphone offering and has said in 2010 almost all of its smartphones would have a touch screen, a full keyboard or both, compared with less than half in 2009. Name Confusion After introducing the C series — focused on personal social networking — Nokia has four smartphone product families. The E series phones are for business users, X series for youth and music, and N series for the most advanced models. It plans to use the new names across its smartphone offering. Nokia has historically flooded the market with phone models little different from each other, with additional confusion arising from their four digit names, which have been hard to differentiate for consumers. However, the new naming of X series phones may also create confusion as Sony Ericsson has used the name for few years — X1 and X2 smartphones are from Sony Ericsson, while Nokia has launched the X3 model. Sony Ericsson’s new flagship device is the X10, while Nokia is also widely expected to launch an X10 cellphone. Source: World Business - Livemint.com | 2 Mar 2010 | 5:04 am Nokia starts new phone line with C5 modelHelsinki: Nokia unveiled a new C5 smartphone model on Tuesday, hoping to benefit from a booming demand for cheap smartphones and from rising consumer appetite for mobile social networking. The C5 handset will be one of the cheapest smartphones from Nokia, selling for €135 ($183), excluding taxes and subsidies, and hitting the shelves next quarter. “It is products like this that will grow Nokia marketshare in the smartphone segment and help them to increase their average sale prices,” said John Strand, chief of telecoms consultancy Strand Consult. Volumes on the smartphone market are seen surging in 2010, with some analysts forecasting up to 50% growth, as handset vendors are pushing advanced features, once exclusive to pricey top-end models, into cheaper and cheaper phones. Nokia continues to lead the global smartphone market with an around 40% market share, but it has lost ground to Apple’s iPhone and RIM’s Blackberry. The Finnish firm is in the midst of a massive revamp of its smartphone offering and has said in 2010 almost all of its smartphones would have a touch screen, a full keyboard or both, compared with less than half in 2009. Name Confusion After introducing the C series — focused on personal social networking — Nokia has four smartphone product families. The E series phones are for business users, X series for youth and music, and N series for the most advanced models. It plans to use the new names across its smartphone offering. Nokia has historically flooded the market with phone models little different from each other, with additional confusion arising from their four digit names, which have been hard to differentiate for consumers. However, the new naming of X series phones may also create confusion as Sony Ericsson has used the name for few years — X1 and X2 smartphones are from Sony Ericsson, while Nokia has launched the X3 model. Sony Ericsson’s new flagship device is the X10, while Nokia is also widely expected to launch an X10 cellphone. Source: Tech News - Livemint.com | 2 Mar 2010 | 5:04 am GM triples Opel financing, cuts state aid requestFrankfurt: General Motors has tripled its funding of European arm Opel and cut its request for state aid in a bid to win over European governments and labour. The U.S. carmaker said it will provide €1.9 billion ($2.57 billion) in equity and loans — up from the €600 million first earmarked — which Opel said on Tuesday would provide enough cash to operate through the end of this year. Opel had previously said it had enough liquidity to last well into the second quarter. GM last year drew the anger of European governments and workers when it scrapped plans to sell Opel and asked them to contribute to the cost of returning the carmaker to profit. Germany — asked to provide the lion’s share of aid — had been cool to the idea of funnelling taxpayer funds into Opel after GM abandoned a deal with Canada’s Magna that German Chancellor Angela Merkel had helped broker. Labour representatives have baulked at GM’s plans to shut an Opel factory in Belgium and rescinded their promise to contribute €265 million in annual cost concessions. GM’s plan for Opel envisages 8,300 job cuts factories across Europe, shuttering the Antwerp plant, 20% capacity cuts and a return to profit by 2012. Opel has about 50,000 workers, half of which are based in its four German factories. Opel labour chief Klaus Franz, who had demanded that GM invest at least €1 billion to restructure Opel, said GM’s promise to provide more funding would help the company’s chances of getting approval for aid. “That will create trust among governments throughout Europe — I am sure of that,” he said. Asking for Less “We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about government guarantees to cover the remaining gap,” Opel chief executive Nick Reilly said in a statement on Tuesday. “It is of vital importance for GM to demonstrate our commitment for our European operations,” GM chairman and CEO Ed Whitacre added. GM had originally asked European countries with Opel plants — including Germany, Belgium, Britain, Austria, Poland and Spain — to contribute €2.7 billion euros of aid. Opel said on Tuesday that the US carmaker has cut its request and is now asking the governments for less than €2 billion. It has also increased the total restructuring budget at the request of the governments. Germany’s government is still considering GM’s application for state aid, a spokeswoman for the economy ministry said, adding that GM’s decision to provide more funds for Opel showed that the company has the means to help its European arm itself. In Madrid, an industry ministry spokesman said: “We’re still waiting to see GM’s industrial plan for Opel, which we will support if it guarantees the company’s future viability and wins union support.” GM last year briefly slipped into US bankruptcy protection as consumers tightened their belts amid the global economic crisis, causing the worst downturn in auto sales in decades. Backed by over $50 billion in US government aid, it has slashed costs, cut 34,000 jobs last year, eliminated $78 billion of debt and built up a cash hoard of almost $43 billion. Source: World Business - Livemint.com | 2 Mar 2010 | 4:08 am Hyundai feeds on Toyota woes; GM joins recallsSeoul / Detroit: South Korea’s Hyundai Motor Co announced a sharp rise in February sales, benefiting from recall woes at rival Toyota Motor Co, which planned aggressive incentives to win back US customers. Toyota is facing a slide in US sales after recalling more than 6 million vehicles there due to problems with uncontrolled acceleration and braking glitches which have shone a spotlight on vehicle safety issues. US auto sales data, due later on Tuesday, are expected to show Toyota’s market share sliding to its lowest level in more than five years, according to industry tracking firm Edmunds.com. In the latest of a string of product problems across the industry, General Motors Co said it was voluntarily recalling 1.3 million vehicles in North America to fix a power steering problem linked to 14 crashes and one injury. GM said the affected vehicles can be still be “safely controlled” but it may require greater steering effort under 15 mph (24 kph). “After our in-depth investigation, we found that this is a condition that takes time to develop. It tends to occur in older models out of warranty,” GM vice president of Quality Jamie Hresko said in a statement. Hyundai, which has been enjoying a surge in popularity for its cheap and fuel efficient models, said its February sales jumped 23% from a year ago to nearly 250,995 vehicles. Hyundai has sought to cash in on the hit to Toyota’s reputation, offering incentives for consumers to switch to its models such as the Sonata and Elantra. Incentives Toyota, which is facing an investigation for steering problems in its popular Corolla model, is not yet out of the woods on its recalls. The world’s largest automaker said on Monday it will replace an oil hose in almost 1 million US vehicles due to the risk of a leak that could damage the engine. The fix includes late-year models of Camry, Avalon, Rav4, and Lexus 350 ES and 350 RX. In an effort to regain US market share, Toyota will offer zero-percent financing for 60 months on some 2010 model year vehicles, including its most popular Camry and Corolla sedans and other vehicles involved in safety recalls, a source briefed on the matter told Reuters on Monday. Returning Toyota customers will also receive a complimentary two-year maintenance package, while cash rebates ranging from $500 to $3,000 will also be offered, the source said. The person declined to be identified because the information has yet to be announced by Toyota. Kazaka Securities analyst Yoshihiko Tabei the measures were a step in the right direction to avoid further damaging cuts in production. “Lower factory utilisation rates would have a substantial negative impact on Toyota’s earnings. It is crucial for Toyota to drive sales so it does not need to lower production levels.” US sales hit Industry tracking firm Edmunds.com sees Toyota’s market share dropping to 12.6% in February, its lowest level since July 2005 and compared to 17% for all of 2009, as Toyota cut sales and production of some its most popular models last month. Shares in Toyota were largely flat in Tokyo trade, having fallen more than a fifth since late January, when the recall crisis erupted. Some $30 billion in the company’s market value has been wiped out since then. Hyundai shares ended down 1.3% ahead of its sales data. Toyota global quality control chief Shinichi Sasaki and North American president Yoshimi Inaba are scheduled to appear before a Senate committee on Tuesday for a third hearing on its handling of consumer complaints about sudden acceleration. In written testimony released before his appearance, Sasaki reiterated Toyota’s plans to tackle quality and safety issues including working more closely with regulators, giving regions more autonomy on recalls and improving information sharing between regions. Inaba said dealers had repaired more than 1 million of the 6 million recalled US vehicles President Akio Toyoda, who appeared before a Congressional panel last week, returned to Japan on Tuesday, having also travelled to China to apologise in person for the recall problems. Source: World Business - Livemint.com | 2 Mar 2010 | 1:46 am
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