Indian Business Headlines for May 3, 2010

See substantial revenues from TDR over next 4 years: HDIL

In an exclusive interview on CNBCTV18, Sarang Wadhawan, MD, HDIL says, TDR (transferable development right) prices are holding well, they are rangebound right now between Rs 2,7002,900 per square ft. TDR will continue to contribute substantial revenues over the next four years.
Source: Moneycontrol Top Headlines | 3 May 2010 | 8:35 am

Three Indian in Forbes` top-paid CEOs list!

As many as 3 India-origin people have been named among the highest paid CEOs of the 500 biggest US Cos.
Source: Zee News : Business | 3 May 2010 | 7:22 am

Balrampur signs pact with Tata Power to sell power

Balrampur Chini Mills Ltd said on Monday it has signed a pact with Tata Power Co Ltd to sell power at approximately Rs 6.50 per unit
Source: Moneycontrol Top Headlines | 3 May 2010 | 7:17 am

Expect $20m payment from SanofiAventis in Q1FY11: Glenmark

Glenn Saldanha, Maning Director of Glenmark Pharma said he expected USD 20 million as payment within Q1 of FY11. \"We should get all milestone payments till launch,\" he said. Going forward, Saldanha expected to see several more deals in the licencing space.
Source: Moneycontrol Top Headlines | 3 May 2010 | 7:05 am

Asian auction house to offer tips on art investing

Want to buy some Asian art but not sure how to go about it? Leading Asian auctioneer Larasati may have some tips for you
Source: Moneycontrol Top Headlines | 3 May 2010 | 6:31 am

Asian factory output strong, inflation mounting

Factories in AsiaPacific cranked up production last month, with Australia surging at its fastest pace in eight years, and mounting inflation pressures pointed to further policy tightening as the economic recovery gathers steam
Source: Moneycontrol Top Headlines | 3 May 2010 | 6:31 am

Titan to enter South African market

Watch and jewellery maker Titan Industries Ltd plans to enter the South African market in a few months and sees nearly 10% of watch export revenues coming from there in 5 years, a top official said on Monday
Source: Moneycontrol Top Headlines | 3 May 2010 | 6:31 am

Piramal Healthcare may close diagnostic ops: Sources

Piramal Healthcare is planning to shut down its diagnostic operation, says CNBCTV18 quoting Newswire18. According to souces, company officials say that the closure is due to losses that the company has incurred in the last twothree years.
Source: Moneycontrol Top Headlines | 3 May 2010 | 6:21 am

Steel Secy says SAIL FPO not before July

The Union steel secretary on Monday said that steel prices have fallen on lower demand and there has been no pressure from the ministry to cut prices. Speaking on the impending SAIL followon public offer (FPO), he said the company is unlikely to go to the secondary market before July.
Source: Moneycontrol Top Headlines | 3 May 2010 | 6:00 am

See HR steel prices around $750800/t in MayJune: SAIL

Prices of flat steel have not come down while that of long steel have been adjusted downwards. Speaking to CNBCTV18, SK Roongta, CMD, SAIL said prices of flat steel products are likely to be cut by Rs 10002000/tonne.
Source: Moneycontrol Top Headlines | 3 May 2010 | 5:16 am

Manufacturing growth falls for 2nd month in April

India\'s manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20monthhigh hit in February, a survey showed on Monday
Source: Moneycontrol Top Headlines | 3 May 2010 | 5:07 am

Airline finances starting to look up, IATA says

Airlines are faring better financially this year, with share prices and fares up, despite the volcanic ash that caused hardship in April, global airlines body IATA said.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 3:57 am

Kotak Mahindra board to consider stock-split on May 11

Private sector lender Kotak Mahindra Bank today said its board will meet on May 11 to consider a proposal for the sub-division of its shares, which have a face value of Rs 10 each.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 3:48 am

HDFC Q4 net jumps 26 per cent

Housing lender HDFC Ltd today said its net profit jumped 26.31 per cent to Rs 926.38 crore for the January-March quarter on the back of fall in expenditure.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 3:36 am

ICICI Bank to hire up to 7,000 employees in fiscal 2010-11

ICICI Bank today said it plans to increase headcount by up to 7,000 this financial year.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 3:35 am

Renault, Bajaj, Nissan agree to price low cost car at $2,500

French auto major Renault and Bajaj Auto have agreed to price the ultra low cost (ULC) car that they are jointly developing with Nissan at USD 2,500, (around Rs 1.10 lakh) to take on Tata Nano.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 3:32 am

Airline finances starting to look up, IATA says

GENEVA (Reuters) - Airlines are faring better financially this year, with share prices and fares up, despite the volcanic ash that caused hardship in April, global airlines body IATA said.

Source: Reuters: Money News | 3 May 2010 | 3:27 am

JSW Steel Jan-March net 6.1 bln rupees; beats forecast

(Versus the same period a year earlier, in million rupees unless stated)

Source: Reuters: Money News | 3 May 2010 | 3:24 am

SJVN's up to $240 mln IPO covered on last day

MUMBAI (Reuters) - The initial public offer by Indian state hydropower utility SJVN Ltd to raise up to $240 million was fully covered by afternoon on Monday, the last day of sale, thanks to bids from state investors.

Source: Reuters: Money News | 3 May 2010 | 3:19 am

United, Continental form world’s biggest airline

Chicago: United Airlines and Continental Airlines have agreed a three-billion-dollar merger to create the world’s biggest carrier amidst an industry-wide slump, news reports said Monday.

The all-stock transaction, approved by the United board on Friday and Continental’s on Sunday, was to be formally announced on Monday, reports said.

The new merged giant, keeping the United name, will account for 7% of global airline capacity, ahead of US rival Delta, which currently leads with 6%, the New York Times reported.

It will also have a 21% share of the huge US air market, the Times added.

Airlines around the world are grappling with high fuel prices, growing competition from low-cost carriers and a traffic slump caused by the recession, tightened security after attacks and crisis events such as last month’s Icelandic volcano.

Executives expect the new carrier to generate cost and revenue gains of about $1.2 billion, with up to $900 million of the savings coming from linking Continental’s strong Latin American and Europe routes to United’s connections in Asia, reports said.

The carriers expect to continue serving the 370 cities where United or Texas-based Continental currently fly.

The transaction could face intense US government scrutiny however due to the size of the deal, the Wall Street Journal said. President Barack Obama’s administration has vowed to reinvigorate anti-trust enforcement.

The new company would keep United’s corporate headquarters in Chicago. United’s chief executive Glenn Tilton would become non-executive chairman of the board for two years and Continental’s chief executive, Jeff Smisek, becoming chairman, the New York Times said.

The merger, expected to close in the fourth quarter, is seen as part of an industry-wide move by airlines to survive in the crisis-stricken industry. British Airways is going through a tie-up with Spanish carrier Iberia to avoid being sidelined by European rivals Air France-KLM and Lufthansa.

US Airways broke off merger talks with United last month, but said it expected consolidation of the fragmented airline sector in the near future.

“It remains our belief that consolidation makes sense in an industry as fragmented as ours,” said US Airways chairman Doug Parker.

Parker stressed that consolidation would lead “to a more efficient industry, better able to withstand economic volatility, global competition and the cyclical nature of our industry.”

The economic crisis has driven airline alliances and steep cost cutting, as the sector has buckled under the global economic downturn, which has slashed demand for air travel and persuaded many cash-strapped travellers to fly with cheaper low-cost carriers.

The merger, said the Journal, would give passengers of the two airlines access to many new destinations, as United serves 100 cities that Continental does not, and Continental flies to 136 cities that United does not.

Shares of both airlines are expected climb in Monday trading.

Source: World Business - Livemint.com | 3 May 2010 | 3:13 am

Vision of EU superpower dims in Greek debt crisis

BRUSSELS (Reuters) - When Britain joined what was the European Economic Community, Prime Minister Edward Heath told diplomats from Australia, Canada and New Zealand over dinner that Europe would become a superpower and put the United States in the shade.

Source: Reuters: Money News | 3 May 2010 | 3:11 am

Court finds Mumbai attack accused guilty

Mumbai: Special court on Monday found a Pakistani man guilty of involvement in the 2008 Mumbai attacks, the first verdict delivered in a case that has worsened ties between New Delhi and Islamabad.

The court found Mohammad Ajmal Kasab, the lone surviving gunman from the Mumbai attacks, guilty of charges including waging war on India and murder. Sentencing will be on Tuesday and he could now face the gallows.

Kasab was caught on tape strolling through Mumbai’s main train station carrying an AK-47 rifle and a knapsack on his back, prosecutors say. Nearly 60 people were gunned down in the crowded station.

Also Read | Chronology: Major terror attacks in India since 2003

Kasab, wounded by police and arrested on the first night of the attacks, initially admitted his role and then said he had been framed.

At least 166 people, including foreigners and some of India’s wealthy business elite, were killed by 10 Pakistani gunmen in a three-day rampage through some of Mumbai’s best known landmarks including two luxury hotels and a Jewish centre.

Two Indian nationals accused of being members of the Pakistani militant group Lashkar-e-Taiba (LeT) and of conducting reconnaissance in Mumbai before the attack, were aquitted of all charges, according to the court.

The Mumbai attack prompted New Delhi to break off peace talks with Pakistan, saying Islamabad must first act against militants operating from its soil, including the LeT, of which Kasab is accused of being a member.

India had charged 38 people in connection with the attack, most of them living in Pakistan.

The verdict comes days after the prime ministers of India and Pakistan held talks in Bhutan and asked their officials to take steps to normalise relations, signalling a thaw in ties that analysts say should not be affected by Monday’s verdict.

One risk to normalising relations is another major militant attack in India and the ensuing political pressure that could force the government to break off the dialogue process.

Source: Home - Livemint.com | 3 May 2010 | 3:11 am

HDFC Q4 net jumps 26%; approves stock split in ratio of 1:5 - Economic Times

KolkataObserver.com

HDFC Q4 net jumps 26%; approves stock split in ratio of 1:5
Economic Times
3 May 2010, 1426 hrs IST, PTI MUMBAI: Housing lender HDFC Ltd on Monday said its net profit jumped 26.31 per cent to Rs 926.38 crore for the January-March quarter on the back of fall in expenditure. The company, which saw income from interest fall ...
South Indian Bank plummets post Q4 resultsBusiness Standard
HDFC Q4 profit up 26% at Rs 926 cr, okays 5:1 stock splitMoneycontrol.com
HDFC Q4 net profit up 26.3% at Rs 926 croreNDTV.com
Myiris.com -Equity Bulls -BloombergUTV
all 28 news articles »

Source: Business - Google News | 3 May 2010 | 3:10 am

Citigroup names Sunil Nair as India private equity business

Nair, who currently heads Citi's international venture capital investment activities in Central and Eastern Europe, the Middle East and Africa, will assume the additional charge of India with immediate effect.
Source: Daily News & Analysis: Money News | 3 May 2010 | 3:04 am

ICICI Bank to hire up to 7000 people this year - Times of India

Rediff

ICICI Bank to hire up to 7000 people this year
Times of India
MUMBAI: ICICI Bank plans to increase its headcount by hiring 5000-7000 people this year, a top bank official said. "We plan to hire around 5000-7000 people this fiscal. We have also declared bonus and increments for our employees," ICICI Bank's ...
ICICI Bank to hire up to 7000 employees in 2010-11Press Trust of India
SBI extends teaser rate scheme by two monthsEconomic Times
Teaser loans extended till June : SBIRupee Times
Calcutta Telegraph -Indian Express -NDTV.com
all 65 news articles »

Source: Business - Google News | 3 May 2010 | 3:01 am

Central Bank sees 25% credit growth in FY11

The bank has sought Rs20 billion as a capital infusion from government its chairman and managing director, S Sridhar said.
Source: Daily News & Analysis: Money News | 3 May 2010 | 3:00 am

U.S. oil spill bill could exceed $14 billion

LONDON (Reuters) - The total bill related to the oil spill drifting toward Louisiana from a well operated by BP Plc in the Gulf of Mexico, could exceed $14 billion, analysts said.

Source: Reuters: Money News | 3 May 2010 | 2:57 am

April factory PMI falls for 2nd month: survey

India's manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20-month-high hit in February, a survey showed today.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 2:49 am

ICICI Bank to hire up to 7,000 staff in 2010-11

Mumbai: ICICI Bank on Monday said it plans to increase headcount by up to 7,000 this financial year. “We plan to hire around 5,000-7,000 people this fiscal. We have also declared bonus and increments for our employees,” ICICI Bank managing director and CEO Chanda Kochhar told reporters after inaugurating 2,000th branch of the largest private sector bank in Mumbai on Monday.

ICICI Bank has become the first private sector bank to reach this milestone, giving it a wide distribution reach in the country, Kochhar said. The bank plans to add more branches and ATMs in the current fiscal,said Kochhar.

“The inauguration of this 2,000th branch signifies our commitment to getting closer to our customers through an enhanced branch network. Our branches are well-equipped to address customer needs through a wide range of products and services. Our branches now have dedicated service area for privilege banking customers,” she added.

The bank has 33% branches in metro areas, 26% in other urban areas and 41% in semi-urban and rural areas.

Source: Home - Livemint.com | 3 May 2010 | 2:46 am

Markets extend losses to 1%; Infosys drops

Mumbai: Indian shares extended losses to 1% on Monday afternoon, with Infosys Technologies and Reliance Industries leading the decline, after European markets opened lower.

At 12:59pm, the 30-share BSE index was down 0.97% at 17,387.90 points, with 25 components falling. The 50-share NSE index was down 1% at 5,224.40.

China’s tightening moves and a survey that showed India’s manufacturing in April expanded at a slower pace for the second month following a drop in new orders and output also added to the shaky sentiment.

Infosys Technologies, which gets most of its revenue from the United States, shed 1.3% after the US economy grew 3.2% in the first quarter, below expectations.

Automobile stocks such as Maruti Suzuki and bike maker Bajaj Auto bucked the trend and rose following robust April vehicle sales.

By 11:38am, the 30-share BSE Index was trading down 0.56% at 17,459.92 points, with 25 of its components declining.

The benchmark had eked out a 0.2% gain in April, after rising 6.7% in March and 0.4% in the month before.

Traders said euro zone debt troubles were a concern as they could slow down foreign portfolio investment, which has been a key driver for the market. Overseas funds have moved about $6.5 billion into Indian shares so far this year.

The emergency aid for Greece, the most ever for a country, alleviated some fears of a near-term sovereign debt default, but left investors wondering which fiscally vulnerable country in Europe might be next.

“The fear is that more European countries may fall into the debt trap. People are just worried -- who next and what next,” said R.K. Gupta managing director of Taurus Mutual Fund.

“That said, it does not seem like we will hear big names coming into trouble.”

Bajaj Auto, the No.2 motorcycle maker, was trading up 0.8% after its April sales jumped 85%. Bigger rival Hero Honda was up nearly 1% after its sales nudged up 0.3%.

Maruti rose 0.6% after the leading car maker said April sales rose 29.7%.

In the broader market, losers outnumbered gainers in a ratio of 1.1:1 in a volume of 145 million shares.

The 50-share NSE index was down 0.7% at 5,243.50.

Source: Home - Livemint.com | 3 May 2010 | 2:44 am

ICICI Bank to hire up to 7,000 people this year

ICICI Bank plans to increase its headcount by hiring 5,000-7,000 people this year, a top bank official said.
Source: India Business News | Business News - Times of India | 3 May 2010 | 2:43 am

CII Business Confidence Index for April-Sept'10 improves further - India Infoline.com

Indian Express

CII Business Confidence Index for April-Sept'10 improves further
India Infoline.com
Business Confidence Index (CII-BCI) for April-September 2010-11 improved by 1.5 points to 67.6 as compared to a 7.4 point increase during the second half of 2009-10. A majority of respondents (60%) expect GDP growth rate for 2010-11 in the range of ...
India Inc's business confidence rises in H1Economic Times
Business Confidence Index up 1.5 pointsBusiness Standard
India's GDP to grow by 7.5-8.5 pc in '10-11: CII surveyForbes India
Financial Express -Press Trust of India -SME Times
all 42 news articles »

Source: Business - Google News | 3 May 2010 | 2:42 am

Markets extend further losses - Business Standard

KolkataObserver.com

Markets extend further losses
Business Standard
The key bench mark indices have slumped to a fresh intraday low of 17353 as European markets slipped in opening trades. The metal stocks continues to exhibit weakness on loss of strength in copper prices. The Sensex is now at 17381, down 200 points and ...
Sensex extend losses; Hindalco, Sterlite dropMyiris.com
Strong selling takes Sensex lowerEquitymaster.com
Sensex below 17500; Hindalco, HUL, Infosys downEconomic Times
Press Trust of India -Moneycontrol.com -Reuters India
all 93 news articles »

Source: Business - Google News | 3 May 2010 | 2:36 am

Europe shares slip on Greece bailout doubts - Reuters

The Hindu

Europe shares slip on Greece bailout doubts
Reuters
LONDON, May 3 (Reuters) - European shares fell in thin trade on Monday, with banks slipping on concerns a massive bailout package for Greece may face political problems and on doubts about whether Greece can sustain the tough austerity ...
Aid deal alone won't restore euro zone credibilityReuters
Greece set for bailout, markets unimpressedEconomic Times
Muted market reaction to Greece bail-outBBC News
Moneycontrol.com -Wall Street Journal -BusinessWeek
all 7,351 news articles »

Source: Business - Google News | 3 May 2010 | 2:29 am

HDFC Q4 net up 26.3 pct

(versus the same period a year earlier, in billion rupees unless stated)

Source: Reuters: Money News | 3 May 2010 | 2:26 am

Greece set for bailout, markets unimpressed

ATHENS/BRUSSELS (Reuters) - A 110 billion euro ($146 billion) rescue is set to start flowing to debt-ridden Greece this week, but fears about the viability of the largest ever bailout of a country has rattled the same markets it had intended to soothe.

Source: Reuters: Money News | 3 May 2010 | 2:24 am

Toyota Kirloskar registers 77 % growth in April 2010 sales

It sold 6001 units, including 922 of Fortuner, last month, as compared to 3386 units in the year-ago period.
Source: Daily News & Analysis: Money News | 3 May 2010 | 2:24 am

Bank of America -Merrill taps Asit Bhatia for India role

Bhatia, who originally joined the bank as a management trainee in 1987, left in October 2009, when he headed the corporate coverage team for the bank in India.
Source: Daily News & Analysis: Money News | 3 May 2010 | 2:12 am

Journalists in the line of fire

Every year, 3 May is celebrated as World Press Freedom Day to raise awareness of the importance of press freedom and remind governments of their duty to uphold the right to freedom of expression. The World Association of Newspapers (WAN) and the World Editors Forum, comprising editors and publishers from countries with a free press, use the occasion to highlight the risks faced by journalists in the line of duty. Mint marks the day by drawing attention to the number of journalists killed or jailed across the world in 2009, based on WAN data.

Chart of journalists killed or jailed across the world: Click here

Graphic by Ahmed Raza Khan / Mint

Source: LatestNews-Home - Livemint.com | 3 May 2010 | 2:00 am

Govt moves Bill to allow foreign universities

New Delhi: The government took a step forward on Monday to allow foreign universities open local campuses, key to revamping the country’s education system, but the bill presented to Parliament may take time to win approval.

The proposal will be watched to gauge New Delhi’s reformist appetite. After its victory in last week’s confidence vote, the Congress-led government is in a stronger position to move legislation to further free the economy.

Speaker Meira Kumar allowed the Foreign Educational Institutions (Regulation and Entry and Operations) Bill 2010 to be introduced after Union human resource development minister Kapil Sibal insisted that the objection against the bill was invalid at this stage.

The proposed legislation was introduced even as Opposition members trooped into the well raising slogans to demand action against those involved in the alleged spectrum allocation scam.

The Bill, to allow foreign education providers set up campuses in India and offer degrees, is aimed at regulating the entry and operation of foreign institutions.

The measure was hanging fire for over last four years owing to opposition from various quarters, including the Left parties, over certain major provisions. After being referred last year to a committee of secretaries which brought modifications to certain provisions earlier existed, the Bill was approved by the Cabinet in March.

Objecting to its introduction, CPI(M) leader Basudeb Acharia said allowing of “foreign teaching shops” would “distort the already elitist educational structure in the country” and make education more commercial.

The Bill, the CPI(M) leader said, would be detrimental to the interests of the states as education was in the concurrent list.

The proposed law prescribes a time-bound format for granting approval to foreign educational institutions to set up campuses in India.

They would be registered with UGC or any other regulatory body, which will scrutinise proposals of aspiring institutions as per India’s priorities and advise the government whether to allow the institute operate in the country.

A foreign university aspiring to set up a campus in India will have to deposit Rs50 crore as corpus fund and cannot take back the surplus generated from education activities here.

The Bill has a provision under which the government can reject an application of a university if it feels that the venture will have an adverse impact on national security.

Goldman Sachs counts the lack of quality education as one of the 10 factors holding India back from rapid economic growth. The demand for graduates over the next five years is likely to be 13.8 million, analysts have estimated.

Congress leaders have said they also plan to introduce a long-delayed Bill to cap liability of operators in case of a nuclear accident, key for firms like General Electric and Westinghouse, a unit of Toshiba Corp, to enter the $150 billion civil nuclear sector.

Source: Home - Livemint.com | 3 May 2010 | 1:58 am

April factory PMI falls for 2nd month - survey

MUMBAI (Reuters) - India's manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20-month-high hit in February, a survey showed on Monday.

Source: Reuters: Money News | 3 May 2010 | 1:57 am

Sustainable housing rebound within year: Warren Buffett

Berkshire Hathaway Inc, which Buffett runs, has several housing-related units, and Buffett said two in particular, Acme Brick and insulation maker Johns Manville, have 'very poor' earnings now.
Source: Daily News & Analysis: Money News | 3 May 2010 | 1:56 am

Rupee extends drop on weak shares; dollar gains

Mumbai: The Indian rupee extended its fall in afternoon trade on Monday on the back of losses in domestic shares and broad strength in the dollar against major currencies oveseas.

At 12:50pm, the partially convertible rupee was at Rs44.59/60, weaker than 44.36/37 at close on Friday.

The index of the dollar against six major currencies was up 0.5%. Most Asian units were also weaker compared to the dollar.

The euro fell on Monday, resuming its slide towards recent one-year lows, as fiscal worries about the broader euro zone returned and the initial relief from a bailout package for debt-stricken Greece fizzled out.

Indian shares were trading down 0.9% with software companies leading the decline, taking cues from weak Asian markets.

One-month offshore non-deliverable forward contracts were quoted at Rs44.70, weaker than 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 at Rs44.6775, with the total traded volume on the two exchanges at about $2.8 billion.

Source: LatestNews-Home - Livemint.com | 3 May 2010 | 1:55 am

Balrampur signs pact with Tata Power to sell power

The power will be sold from the firm's 18 mega-watt Haidergarh unit currently and also from its Manakpur power plant, which will be operational from the second week of June.
Source: Daily News & Analysis: Money News | 3 May 2010 | 1:53 am

Rupee extends drop on weak shares - Economic Times

Gulf Times

Rupee extends drop on weak shares
Economic Times
MUMBAI: The Indian rupee extended its fall in afternoon trade on Monday on the back of losses in domestic shares and broad strength in the dollar against major currencies oveseas. At 12:50 pm, the partially convertible rupee was at 44.59/60, ...
India rupee snaps 3-day rise as risk aversion growsReuters India
Weak Start In Domestic Shares Hold Down RupeeIndia Infoline.com
India Bond Yields Trade Near 18-Month High on Inflation ConcernBusinessWeek
Press Trust of India -AFP -Commodity Online
all 55 news articles »

Source: Business - Google News | 3 May 2010 | 1:38 am

Greece to get bailout package of 110-billion euro over 3 yrs

The largest financial rescue of a nation from bankruptcy will involve credit of 80 billion euro from the 15 other euro zone nations and 30 billion euro from the International Monetary Fund (IMF).
Source: Daily News & Analysis: Money News | 3 May 2010 | 1:34 am

BSE Sensex extends losses to 1 pct

MUMBAI (Reuters) – The BSE Sensex extended losses to 1 percent on Monday afternoon, with Infosys Technologies and Reliance Industries leading the decline, after European markets opened lower.

Source: Reuters: Money News | 3 May 2010 | 1:34 am

ECB suspends rating rule on Greek debt

The European Central Bank said today that it suspended its minimum credit rating threshold on Greek sovereign debt, allowing the country to carry on participating in ECB lending operations even if rating agencies downgrade it further.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 1:25 am

Hyundai April sales up; domestic sales lag

April car sales at South Korea's Hyundai Motor Co rose from a year ago, led by strong overseas sales and revamped versions of its popular Sonata sedan and Tucson SUV, but increased competition hit domestic sales.
Source: HindustanTimes.com - Top Business News Headlines | 3 May 2010 | 1:10 am

Titan to enter South African market

Mumbai: Watch and jewellery maker Titan Industries Ltd plans to enter the South African market in a few months and sees nearly 10% of watch export revenues coming from there in 5 years, a top official said. “We will shortly be entering South Africa in the next few months, we have found a distributor there who will be our partner to enter the market,” managing director Bhaskar Bhat told Reuters on Monday.

“In the next 5 years this market will contribute to as high as 10% of watch export revenues,” he added.

Titan had earlier said it was exploring possibilities to expand its business in Asia and South Africa.

The firm, which retails watches under a range of brands including the premium Titan and the economy brand Sonata, plans to join an increasing number of consumer firms who are eyeing the African market as the next growth vehicle to boost growth.

Bhat also said the firm’s capital expenditure for FY11 had been raised to Rs150 crore from Rs100 crore announced earlier this year.

“Our capex has been fixed at Rs150 crores from Rs100 crores earlier. It will be mainly used for our manufacturing expansion plans,” Bhat said.

In February Bhat had said he planned to add 80-100 retail stores and raise watch manufacturing capacity by 3 million units this fiscal to 18 million units per annum.

Bhat also said the firm does not have any plans for revision of watch prices in the near-term as it is not facing any input price pressure but did not comment on the firm’s medium to long term pricing strategy.

Prices of steel, the main raw material used for making watches, have risen nearly 30% in India in the six months to April 2010 as prices of key raw materials - iron ore and coking coal- escalated, prompting price hikes.

Growth path

Titan expects its topline in the current fiscal to grow at 20-25%, in line with the growth witnessed in the last fiscal and expects it to be driven by continued robust performance in its watch and jewellery business.

“We expect our overall revenue growth to be 20-25% this fiscal..it’s in line with what we have achieved in FY10..the estimates are keeping in mind the volatility in gold prices,” he said.

Along with watches, Titan sells jewellery under the ‘Tanishq’ and ‘Goldplus’ brand, retails accessories such as eyewear under ‘Titan Eye’ and is also into the precision engineering business.

Late on Friday the firm reported a 57% jump in FY10 profit to Rs250 crore as revenue rose 23% to Rs467.40 crore.

“The growth was because both our watch and jewellery business benefitted from a very good wedding season in the first three months of this year,” Bhat said.

At 12.42 p.m., shares of the firm were up 2.77% at Rs2,188.35.

Source: Home - Livemint.com | 3 May 2010 | 1:00 am

Parliament adjourns after uproar over 2G spectrum allocation

New Delhi: Both the Houses of Parliament on Monday adjourned amid opposition demands for resignation of telecom minister A Raja for his alleged involvement in the reported scam in allocation of 2G spectrum.

As soon as both the Houses met for the day, AIADMK and BJP members flashed newspaper reports of Raja’s alleged involvement in the scam in allocation of 2G spectrum and demanded his resignation.

In the Lok Sabha, AIADMK members demanded Raja’s ouster, while SP, RJD, BSP and JD(U) members trooped into the well raising slogans demanding caste-based Census.

SP chief Mulayam Singh Yadav and RJD leader Lalu Prasad were seen moving towards Speaker Meira Kumar’s chair in support of their demand.

The Speaker’s repeated appeals to allow the Question Hour to proceed went unheeded as members continued to raise slogans on various issues.

Amid the din, Kumar adjourned the House till noon.

The Rajya Sabha saw two adjournments during the Question Hour on the issue of spectrum allocation.

Raising the issue as soon as the House met for the day, AIADMK member V Maitreyan demanded that Prime Minister Manmohan Singh make a statement on the issue.

Maitreyan said he has given notice for suspension of Question Hour and wanted Prime Minister Manmohan Singh to come to House and clarify the matter.

“Everyday new facts are emerging in news reports (on the role of Raja in the telecom scam),” he said.

Maitreyan was supported by BJP members who rose in their seats.

Chairman Hamid Ansari said Maitreyan’s notice cannot be accepted if he disrupts proceedings and asked members to resume their places so that Question Hour can be taken up.

As AIADMK members started moving towards the well, Ansari said “Please allow question hour to proceed.”

As the agitated members were unrelenting, he adjourned the House for 15 minutes.

When the House reassembled, Maitreyan said the Prime Minister should make a statement on the issue in the House. “We want Prime Minister to clarify.”

As Opposition members continued with their protest, the chairman adjourned the House till 1200 hours.

Source: LatestNews-Home - Livemint.com | 3 May 2010 | 12:43 am

Hyundai April sales up; domestic sales lag

Seoul:April car sales at South Korea’s Hyundai Motor Co rose from a year ago, led by strong overseas sales and revamped versions of its popular Sonata sedan and Tucson SUV, but increased competition hit domestic sales.

Hyundai, South Korea’s top automaker, was the only local brand posting a monthly decrease in domestic sales in April, as smaller rivals including Renault Samsung and troubled Ssangyong offered zero-interest financing for up to three years to lure back customers.

Hyundai shares hit a fresh record high of 138,000 won on Monday but its weak domestic performance pushed the stock down as much as 2.6% before it closed 1.8% lower.

Competition in its home market should increase further as GM Daewoo, a unit of General Motors, is set to introduce the Chevrolet brand in South Korea and foreign cars are gaining ground on more affordable prices.

Hyundai sold 310,396 vehicles in April, versus the year earlier’s 243,343 units and 319,553 units a month before.

By the end of April, it achieved a third of its 2010 annual sales target of 3.46 million units, a 12% increase from last year.

That compared with Honda’s forecast last week of 6.6% sales growth to 3.6 million vehicles this year.

While carmakers have been benefiting from a recovery in US sales and the global economy, the strengthening won is a headache for Hyundai as it competes with Japanese rivals such as Toyota and Honda in the key US market.

Hyundai’s strong performance in emerging economies and growing US market share drove it to a record net profit in the first three months of 2010.

Hyundai’s affiliate Kia Motors Corp posted a 49% jump in April sales to 174,580 vehicles from a year before, driven by new Sportage and Sorento R SUV models.

Source: LatestNews-Home - Livemint.com | 3 May 2010 | 12:42 am

Hyundai April sales up; domestic sales lag

Hyundai shares hit a fresh record high of 138,000 won on Monday but its weak domestic performance pushed the stock down as much as 2.6% before it closed 1.8% lower.

Hyundai sold 310,396 vehicles in April, versus the year earlier’s 243,343 units and 319,553 units a month before.

By the end of April, it achieved a third of its 2010 annual sales target of 3.46 million units, a 12% increase from last year.

That compared with Honda’s forecast last week of 6.6% sales growth to 3.6 million vehicles this year.

Hyundai’s strong performance in emerging economies and growing US market share drove it to a record net profit in the first three months of 2010.

Hyundai’s affiliate Kia Motors Corp posted a 49% jump in April sales to 174,580 vehicles from a year before, driven by new Sportage and Sorento R SUV models.

Source: Home - Livemint.com | 3 May 2010 | 12:42 am

Gulf spill unlikely to sour Louisiana on oil - Moneycontrol.com

National Post

Gulf spill unlikely to sour Louisiana on oil
Moneycontrol.com
A massive oil spill off the Louisiana coast may boost opposition to offshore drilling and spur calls for tighter federal regulation, but it is unlikely to loosen the southern state's embrace of big oil companies. The rig explosion and sinking last ...
Obama promises 'relentless' response to oil spillEconomic Times
Watch-and-wait game continues for Gulf Coast residentsCNN
Do you think BP is doing enough to contain the oil spill in the Gulf of Mexico?Wall Street Journal
The Associated Press -Daily News & Analysis -Montreal Gazette
all 24,933 news articles »

Source: Business - Google News | 3 May 2010 | 12:15 am

Asian factory output strong, inflation mounting

Sydney: Factories in Asia-Pacific cranked up production last month, with Australia surging at its fastest pace in eight years, and mounting inflation pressures pointed to further policy tightening as the economic recovery gathers steam.

Output growth in India eased a tad in April but still held near a 20-month high hit in February while factory activity in South Korea picked up after a brief dip, surveys by HSBC/Markit showed on Monday.

The findings were similar to that in China’s official survey of purchasing managers released on Saturday, which showed its fast-growing economy retained its momentum in April despite a government’s campaign to cool the red-hot property sector.

Policymakers in Asia have been leading the rest of the world in withdrawing stimulus put in place during the global crisis and a further buildup in price pressures last month backed views that central banks will continue to tighten policy.

“In our view, India is in for a protracted period of rate hikes, the extent of which will surprise most forecasters,” said Robert Prior-Wandesforde, senior Asian economist at HSBC.

India’s PMI showed seasonally adjusted input prices remained near multi-year peaks, suggesting official wholesale price inflation could pick up from a 17-month-high of 9.9% in the latest data for March.

The Reserve Bank of India (RBI) raised its key interest rates and bank reserve requirements by 25 basis point each in April and analysts in a Reuters poll expect it to tighten policy further, raising the repo rate by 100 basis points to 6.0% by the end of December.

On Sunday, China raised banks’ reserve requirements by 50 basis points for its third increase of that magnitude this year as it moves to calm the surging economy.

The PMI survey showed input prices in China rose at the fastest pace since the second half of 2008, keeping alive the fears of an overheating in an economy that grew in the first quarter at an annual pace of 11.9%, the fastest since 2007.

The purchasing managers’ index from the euro zone and the United States, both due later in the day, are also expected to show a pick up in activity.

Quickening Inflation

The central banks of Australia, India and Brazil are the only Group of 20 countries to have raised interest rates since the global downturn.

Financial markets are pricing in a 70% chance that the Reserve Bank of Australia will lift its cash rate by 25 basis points to 4.5% on Tuesday, which would be the sixth hike since October.

The Australian Industry Group/PriceWaterhouseCoopers performance of manufacturing index jumped 9.3 points in April to 59.8, well above the 50 threshold between contraction and expansion and the highest reading since May 2002.

“The encouraging results across much of the manufacturing sector in April are signs the recovery, which has been patchy to date, is now beginning to gain some traction,” said Heather Ridout, the chief executive of Australia Industry Group.

With economic recovery comes inflation.

The TD Securities-Melbourne Institute measure of Australia’s consumer price inflation rose 0.4% in April from the previous month, lifting the annual pace to 2.9 percent, near the top of the central bank’s long-term target of 2-3%.

Other data showed house price rose in the first quarter by a fifth from a year earlier, a record pace.

Inflation also picked up in South Korea and Indonesia in April, with consumer prices rising more than expected in both countries.

Source: Home - Livemint.com | 3 May 2010 | 12:12 am

Oil hovers at $86 as traders eye Gulf crude spill

Benchmark crude for June delivery was down 9 cents to $86.06 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.
Source: Daily News & Analysis: Money News | 3 May 2010 | 12:05 am

US investigators hunt New York car bomb culprits

New York: Investigators combed through security video and other evidence on Monday in the hunt for suspects in a failed car bombing in New York’s Times Square and officials expressed optimism that the culprits will be found.

New York Police Commissioner Raymond Kelly said a white man in his 40s was spotted in security video footage about half a block from where the vehicle was left on Saturday evening with its engine running and hazard lights flashing.

In about 19 seconds of video released by police, the man, who appears to be thin, is seen removing a dark shirt, stuffing it into some sort of bag and walking away down the sidewalk, carrying the bag and glancing at least twice over his shoulder.

New York Mayor Michael Bloomberg said there was no evidence of a link to al Qaeda or any other militant organization in the failed bomb attack that prompted the evacuation of the teeming entertainment and shopping district.

“It’s unfortunate that this happened. I’m confident that we will find out who did it,” Bloomberg told reporters outside a Times Square restaurant.

Bloomberg had dinner with policeman Wayne Rhatigan, who was tipped off by an alert street vendor about a suspicious Nissan sport utility vehicle on West 45th Street near Broadway.

The Taliban in Pakistan said it planted the bomb to avenge the killing in April of al Qaeda’s two top leaders in Iraq. But Kelly said there was “no evidence” to support that claim.

Investigators were poring over surveillance camera footage and a device made of propane, gasoline and fireworks after officers found the bomb in the vehicle as Times Square in Midtown Manhattan was packed with tourists and theater-goers.

‘Whatever is necessary’

President Barack Obama received regular updates on the incident as he visited Louisiana to assess the response to the huge oil spill in the Gulf of Mexico.

“We’re going to do whatever is necessary to protect the American people, to determine who’s behind this potentially deadly act and to see that justice is done,” said Obama, who was accompanied on the trip by his counterterrorism chief John Brennan.

Homeland Security secretary Janet Napolitano called the scare a “potential terrorist attack” but she and other officials held off saying whether there was a link to Islamist groups or to a domestic cause in the United States.

Security at US East Coast airports was boosted in the wake of the incident to counter possible vehicle-borne improvised explosive devices at airports and crowded public spaces, a Department of Homeland Security official said.

Michael Cheah, senior portfolio manager at SunAmerica Asset Management, said the car bomb was an “isolated incident” that was not likely to spark any Treasury market reaction.

New York and its 8 million people have been on high alert since the11 September attacks in 2001 when airliners hijacked by al Qaeda militants toppled the World Trade Center’s twin towers, killing more than 2,600 people.

Source: LatestNews-Home - Livemint.com | 3 May 2010 | 12:04 am

Foreign currency convertible bonds back in limelight

With the stock market bouncing back, India Inc is once again tapping the foreign currency convertible bonds (FCCBs) for funds with nearly $3 billion in fresh issues as against next to nothing, a year
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Gold may test resistance levels

Comex gold futures rose to a five-month high on Friday, as investors bought the metal as a hedge against sovereign credit risk and economic uncertainties, while US crude oil marked its third straight monthly gain, on expectations for a U.S.
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Rubber crisis looms, may hit India hard

Even as the Association of Natural Rubber Producing Countries (ANRPC) has warned of an imminent rubber crisis gripping the world economy, India seems least prepared to confront such an
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Prime Focus: Buy

Investors with medium-term perspective can consider buying the stock of Prime Focus (Rs
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

GE Shipping rules at crucial level

I have one lot of GE Shipping at Rs 344. Should I hold it for the long term or exit now? – Satbir,
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Govt to fix targets for saving energy, issue tradable ‘white certificates'

The Government will come out with sector-wise energy efficiency and unit-wise consumption targets for nine notified sectors early next
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Investors may be watchful; sideways movement seen

Dalal Street key indices may move sideways this week. The investment activity is likely to be laced with
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Day Trading Guide

Initiate fresh short position if ICICI Bank dives below Rs 940 with fixed
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Safe haven buying buoys yellow metal

Risks arising out of lurking sovereign debt default once again became the centre of market attention last
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

FIIs' picks outperform broad markets; average one-year returns touch 129%

Foreign institutional investors (FIIs) hiked their stake in UltraTech Cement from 2.3 per cent of the total capital to 5.8 per cent between March '09 and June '09, and it now stands at 11 per cent (March '10). The stock clocked a return of 55 per
Source: Business Line - Home Page | 3 May 2010 | 12:00 am

Glenmark signs licensing pact with Sanofi-Aventis

Under the terms of the agreement, Glenmark will receive an upfront payment of $20 million, it said in a statement.
Source: Daily News & Analysis: Money News | 2 May 2010 | 11:53 pm

Women ‘may struggle with maps, but are better navigators’

London: Women may struggle with road maps, but they are better at remembering routes than men, according to a new study.

Researchers at the National Autonomous University of Mexico have carried out the study and found that while men are better at finding new places, women make better navigators if they have been to the place before.

This is because women are much better at remembering landmarks than men, and so do not have to work out the route again -- and it is linked with the different roles males and females adopted in early hunter gathering societies, British newspaper ‘The Daily Telegraph’ reported.

While men were good at hunting down randomly moving prey, women were much better at remembering where the best places were to find growing food such as fruit and nuts, say the researchers.

For the study, the researchers used the population of a remote Mexican village and asked local men and women to collect mushrooms. They found that while both came back with the same amount of food, the men had used 70% more energy in collecting it than the women.

Luis Pacheco-Cobos, who led the study, was quoted as saying, “These findings show that women perform better and more readily adopt search strategies appropriate to gathering lifestyle than men.”

The findings have been published in the latest edition of the ‘Evolution and Human Behaviour’ journal.

Source: LatestNews-Home - Livemint.com | 2 May 2010 | 11:44 pm

Sensex opens down 140 pts on profit booking, weak Asian cues

The Bombay Stock Exchange benchmark index Sensex fell by over 140 points, or 0.80 per cent, in opening trade today on profit booking and a weak trend on other Asian bourses.
Source: HindustanTimes.com - Top Business News Headlines | 2 May 2010 | 11:25 pm

IMF, EU pledge $159 bn to save Greek economy

Greece has reached an agreement with the International Monetary Fund (IMF) and the European Union (EU) on a $159 billion rescue package for the debt-laden country.

Source: HindustanTimes.com - Top Business News Headlines | 2 May 2010 | 11:18 pm

India April factory PMI falls for 2nd month: Survey - Economic Times

India April factory PMI falls for 2nd month: Survey
Economic Times
MUMBAI: India's manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20-month-high hit in February, a survey showed on Monday. The HSBC Markit Purchasing Managers' ...
Manufacturing expansion slows down in AprilNDTV.com
India's manufacturing output slows again in April: PMIIndia Infoline.com
Euro-Zone Manufacturing Growth AcceleratesWall Street Journal
MarketWatch -Straits Times -BusinessWeek
all 66 news articles »

Source: Business - Google News | 2 May 2010 | 11:18 pm

Future Group signs pact with Carrefour

Future Group will open Carrefour-branded franchise stores in India under the agreement.
Source: Daily News & Analysis: Money News | 2 May 2010 | 11:13 pm

Glenmark in licensing pact with Sanofi-Aventis - Economic Times

Rediff

Glenmark in licensing pact with Sanofi-Aventis
Economic Times
MUMBAI: Indian drugmaker Glenmark Pharmaceuticals Ltd said on Monday it has signed a licensing agreement with France's Sanofi-Aventis for development and commercialisation of novel agents to treat chronic pain. Under the terms of the agreement, ...
Expect $20m payment from Sanofi-Aventis in Q1FY11: GlenmarkMoneycontrol.com
Glenmark in $325-million drug deal Sanofi-Aventisdomain-B
Glenmark subsi in licensing pact with Sanofi-aventisPress Trust of India
BusinessWeek -Wall Street Journal -RTT News
all 36 news articles »

Source: Business - Google News | 2 May 2010 | 11:01 pm

April factory PMI falls for 2nd month

Mumbai: India’s manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20-month-high hit in February, a survey showed on Monday.

The HSBC Markit Purchasing Managers’ Index, based on a survey of 500 companies, fell to 57.2 in April from 57.8 in March. A figure above 50 means activity is expanding and it has been above that level for 13 months.

The data still signalled significant strength in India’s manufacturing sector, underscoring the double-digit gains in official industrial output figures in recent months, the survey said.

“Although this slip indicates that operating conditions improved at a weaker rate during the latest survey period, the latest reading still signalled a considerable strengthening in the health of the industry,” survey compiler Markit said.

“Prices charged for Indian manufacturers rose at a marked pace during April, as firms responded to further growth in their cost burdens in an attempt to defend profit margins.”

Output and new orders indexes remained above 60 and employment showed modest growth in April after stagnating the month before, supported by greater production requirements and accelerating economic growth.

The output price index rose for a second month in a row to 55.8 from 54.6. It has risen nearly four points since February.

The backlogs of work index spiked to an all-time high thanks to new orders, delays in delivery times and power cuts, suggesting inflation pressures may mount further.

India’s wholesale price index inflation hit a 17-month-high of 9.9% in March prompting the Reserve Bank of India (RBI) to raise its key interest rates and bank reserve requirements by 25 basis point each in April.

Top policymakers have indicated that inflationary pressures will ease in the coming months but there are many sceptics.

“In our view, India is in for a protracted period of rate hikes, the extent of which will surprise most forecasters,” said Robert Prior-Wandesforde, senior Asian economist at HSBC.

Analysts polled by Reuters expect the RBI to tighten policy further, raising the repo rate at which the central bank lends to banks, by 100 basis points to 6.0% by the end of December from the current 5%.

Source: LatestNews-Home - Livemint.com | 2 May 2010 | 11:00 pm

Glenmark in licensing pact with Sanofi-Aventis

Mumbai: Dugmaker Glenmark Pharmaceuticals Ltd said on Monday it has signed a licensing agreement with France’s Sanofi-Aventis for development and commercialisation of novel agents to treat chronic pain.

Under the terms of the agreement, Glenmark will receive an upfront payment of $20 million, and licensing fees could come to $325 million, it said in a statement.

Shares of Glenmark jumped more than 11% during early trades on Monday.

“In addition to licensing fees, we expect to receive double-digit royalties on sales of products commercialised under the license,” Glenmark chief executive Glen Saldhana told CNBC-TV18 television channel.

The novel agents to be developed under this deal include vanilloid receptor (TRPV3) antagonist molecules, the company said in statement.

The GRC-15300, one of the molecules being developed, is currently in phase-I of clinical development, it added.

“It’s a very positive deal. The project is in the first phase... If implemented, it would generate the expected revenue in next five to six years,” a pharma analyst told Reuters over the telephone.

Under the agreement, Sanofi-Aventis will have exclusive marketing rights for these novel agents in North America, European Union and Japan subject to Glenmark’s right to co-promote the products in the US and five East European countries, the company said.

Sanofi-Aventis will also have co-marketing rights in 10 other countries including Brazil, Russia and China.

Glenmark will retain exclusive rights in India and other countries of the rest of the world, it added.

At 10:07 a.m., shares of Glenmark Pharmaceuticals were trading at Rs285.7 , up 5.87% in a Mumbai market that was down 0.51%.

Source: Home - Livemint.com | 2 May 2010 | 10:56 pm

United, Continental boards OK merger - sources

CHICAGO/NEW YORK (Reuters) - UAL Corp, parent of United Airlines, will buy Continental Airlines Inc for $3.2 billion, forming the world's largest carrier in a merger that further shrinks the embattled U.S. airline industry and could drive up air fares, sources said on Sunday.

Source: Reuters: Money News | 2 May 2010 | 10:51 pm

MRPL sells June fuel oil; lowest since Dec ‘08

Singapore: Mangalore Refinery & Petrochemicals Ltd (MRPL) sold 80,000 tonnes of June-loading fuel oil at its steepest discount in more than a year, damped by a heavily supplied East Asian market, traders said on Monday.

The 380-centistoke (cst) parcel, for 4-6 June loading from New Mangalore, was sold via tender to Japan’s PetroDiamond at a discount of $7.00-$8.00 a tonne to Singapore spot quotes, on a free-on-board (FOB) basis. This was the lowest price level since it sold a cargo that loaded in December, 2008, at minus $9.00.

“The weak price level is not a surprise but, at a flat-price level, it’s not that cheap,” a Singapore-based Asian trader said.

“The strike price also reflects the market’s bearish mood, despite the recent improvement in the timespreads.”

He added that while the market has improved, most players do not think it has strengthened by much over a short time and most traders are still quite cautious. Traders attributed much of fuel oil’s recent strength to short-term pricing interests.

MRPL last sold three parcels, for March to May loading, to Vitol at discounts of $2.30 a tonne to Singapore spot quotes, FOB.

The fuel oil market has since been weakened by heavy inflows for two consecutive months, March and April, with six-month high volumes of Western arbitrage cargoes, totalling 3.7-3.8 million tonnes, flowing into East Asia this month.

The lower and more balanced May supplies in terms of fuel quality, at 2.7-2.8 million tonnes, have lifted sentiment in the past week, strengthening fuel oil’s prompt May/June timespread to a contango of $2.00-$2.25 a tonne, up from minus $3.88 just over a week ago.

Source: Home - Livemint.com | 2 May 2010 | 10:50 pm

Sensex opens 140 points down on profit booking

The Bombay Stock Exchange benchmark index Sensex fell by over 140 points, or 0.80 per cent, in opening trade on Monday on profit booking and a weak trend on other Asian bourses.
Source: India Business News | Business News - Times of India | 2 May 2010 | 10:42 pm

Asian stocks drop as China raises bank reserves

Singapore: Asian stocks fell on Monday after China ordered banks to raise their reserves, the latest in a series of moves aimed at curbing inflation and surging property prices.

Hong Kong’s Hang Seng index led decliners, falling 294.42 points, or 1.4% to 20,814.47 while South Korea’s benchmark dropped 1.2% to 1,720.88. Singapore slid 0.9 percent, India fell 0.7% and Australia skidded 0.6% after the government said it would impose a new tax on the profits of mining companies. Stock indexes in Malaysia and Indonesia were steady.

Trading volume was light in Asia as the two biggest markets, Japan and China, were closed for holidays. Markets in Thailand and the Philippines were also closed.

The People’s Bank of China said Monday that the deposit reserve requirement ratio for most banks will be raised half a percentage point, starting 10 May. This is the third time this year that the central bank has raised the deposit reserve minimum.

Asian shares dropped despite European governments and the International Monetary Fund announcing Sunday they agreed on euro110 billion ($145 billion) in emergency loans for debt-ridden Greece on the condition Athens make painful budget cuts and tax increases.

After surging last year, Asian stock markets will likely trade sideways for the next few months as traders monitor whether economic growth in the US and Europe continues as interest rates rise and government stimulus spending eases, said Timothy Wong, head of group research at DBS bank in Singapore.

“Investors are uncertain what the catalysts are going to be for the markets to more higher,” Wong said. “For the markets to move higher, you would need much higher export growth, which would be a function of what’s happening in the US and Europe.”

In currencies, the dollar was little changed at ¥93.90 yen from ¥93.91 while the euro fell to $1.3222 from $1.3338.

Benchmark crude for June delivery was down 8 cents to $86.07 a barrel after the contract rose 98 cents to settle at $86.15 on Friday.

In the US on Friday, the Dow fell 158.71, or 1.4%, to 11,008.61. The Standard & Poor’s 500 index declined 20.10, or 1.7%, to 1,186.68, while the Nasdaq composite index dropped 50.73, or 2% to 2,461.19.

Source: LatestNews-Home - Livemint.com | 2 May 2010 | 10:37 pm

Rupee weakens by 16 paise to 44.52 a dollar

The Indian rupee depreciated by 16 paise to 44.52 a dollar in early trade on Monday on fund outflows and the greenback's gains overseas.
Source: India Business News | Business News - Times of India | 2 May 2010 | 10:29 pm

Feisty Buffett supports Goldman, high on economy

Omaha: Warren Buffett intensified his feisty defense of a controversial mortgage transaction marketed by Goldman Sachs Group Inc, saying the investment bank’s behavior does not warrant public fury.

Buffett also said he is seeing real signs of improvement in the economy, especially in manufacturing, though it will take another year for a sustainable housing recovery to take hold.

The world’s third-richest person spoke at a press conference, a day after his company Berkshire Hathaway Inc held its annual meeting for tens of thousands of shareholders.

Berkshire owns $5 billion of Goldman preferred shares with a hefty 10% dividend, and Buffett has become Goldman’s most powerful defender since it became the target of a US Securities and Exchange Commission’s civil fraud lawsuit.

The 16 April complaint alleged that Goldman hid from clients that securities underlying the mortgage transaction, Abacus, were chosen by Paulson & Co, a hedge fund firm betting they would lose value.

Goldman rejected the allegations, and Paulson was not charged. Buffett on Saturday said he loved the $5 billion investment and defended Goldman’s chief, Lloyd Blankfein.

“I don’t have a problem with the Abacus transaction at all, and I think I understand it better than most,” Buffett said.

Sitting beside Berkshire vice chairman Charlie Munger, Buffett said he saw nothing in Goldman’s behavior to justify the intense criticism it faces.

“It’s very strange to say, at the end of the transaction, that if the other guy is smarter than you, that you have been defrauded,” Buffett said.

Buffett also said he had no reason to believe Goldman misled ACA, which helped create Abacus, about Paulson’s involvement, and that it should not have mattered to ACA.

“Any bond insurer that is making a decision about what to insure and what to charge for it should not care a whit about who is on the other side of the transaction,” he said.

Buffett said Berkshire itself is better off because it regularly enlists investment banks, such as Goldman, including when it was much smaller in the late 1960s and needed capital.

Lighter mood

Like shareholders, including the many who streamed to Buffett’s barber to get a trim, Buffett and Munger appeared more relaxed at this year’s events relative to last year, when worries about the economy and swine flu prevailed.

During the press conference, Buffett took a bag of peanut brittle from Munger — saying “I’ll get that Charlie” — and ostentatiously gnawed it open with his teeth.

Just over an hour earlier, Buffett appeared at the nearby, Berkshire-owned Borsheim’s Fine Jewelry, where he played table tennis with Ariel Hsing, 14, the top-ranked US female player under age 20. Buffett unveiled, as a joke, a giant blue paddle to give him a better shot of winning. (Didn’t help.) Several Berkshire-themed items at Borsheim’s sold out.

At the press conference, Buffett’s said Berkshire’s manufacturing businesses, including the conglomerate Marmon Holdings Inc and toolmaker Iscar Metalworking Cos, are benefiting from “pretty significant improvement.

He said luxury goods units including Borsheim’s and the NetJets Inc plane leasing unit are seeing improved business, albeit from a “very, very low level,” while results for housing-sensitive businesses such as Acme Brick Co and the insulation maker Johns Manville remain “very poor.”

Yet Buffett cautioned policymakers not to artificially stimulate housing sales and perhaps derail a recovery.

“What would bother me is if we were to overstimulate them, and create a permanent overhang,” he said. “I want to have a sustainable recovery, and I don’t think you’re going to have to wait more than a year for that.”

At the press conference, Buffett maintained enthusiasm for Federal Reserve Chairman Ben Bernanke, saying “there’s no one in the United States that I know of whom I would rather have running the Fed than Ben Bernanke.”

“High-iq boobs”

Buffett has a much longer-term horizon for his largest acquisition, the $26.5 billion February takeover of Burlington Northern Santa Fe Corp.

“The key factor in our railroad investment is whether more people are moving goods 10, 20 or 50 years from now,” he said. “The odds of that happening are extremely high.”

Buffett and Munger had harsh words for some professions, including accountants and investment bankers, whom they said in part caused the 2008 crisis because they were too greedy and could not stand up to management.

“Everywhere you look this problem has been caused by high-IQ asininity” perpetrated by “high-IQ boobs,” Munger said. “People who know the edge of their own competency are safe, and those who don’t, aren’t.”

Munger added: “Investment banking will behave more responsibly if we as citizens force it to behave more responsibly.”

And while Berkshire wants to make non-US acquisitions, Buffett admitted its size rules out most countries, where the businesses or financial markets are too small. Berkshire’s market value is about $190 billion, Reuters data show.

“Business opportunities, we can stretch out to 30 or 40 countries,” Buffett said. “Our problem is finding them.”

Source: World Business - Livemint.com | 2 May 2010 | 10:04 pm