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Reliance Comm board okays up to 26% stake sale - Moneycontrol.com
Source: Business - Google News | 6 Jun 2010 | 3:35 am Iran to approve Pakistan gas pipeline deal this weekTEHRAN (Reuters) - Iran hopes to finalise a deal this week for a much-delayed pipeline to export natural gas to Pakistan by 2015, an energy official said on Sunday.Source: Reuters: Money News | 6 Jun 2010 | 3:27 am NEWSMAKER - Japan's likely finmin:fiscal hawk, deflation fighterTOKYO (Reuters) - Japan's next leader Naoto Kan appears to have opted for a fellow fiscal conservative, Yoshihiko Noda, as finance minister, with similar zeal to fix the country's tattered finances.Source: Reuters: Money News | 6 Jun 2010 | 3:25 am Reliance Comm board OKs up to 26 pct stake saleMUMBAI (Reuters) - India's No. 2 mobile carrier Reliance Communications, burdened by debt and the cost of rolling out 3G services in a fiercely competitive market, said on Sunday its board had agreed to sell an up to 26 percent stake.Source: Reuters: Money News | 6 Jun 2010 | 2:57 am RCom board OKs 26% stake saleMumbai: Country’s No. 2 mobile carrier Reliance Communications, burdened by debt and the cost of rolling out 3G services in a fiercely competitive market, said on Sunday its board had agreed to sell an up to 26% stake. Reliance Communications, controlled by billionaire Anil Ambani, also said in a statement its board approved pursuing other “appropriate strategic consolidation opportunities.” The company did not disclose any timeframe or details for a possible deal, but said its board had approved the issue of equity to strategic or private equity investors at a premium to the prevailing market price. “This could be an enabling provision to accommodate any of the potential deals being discussed in the market,” said S.P. Tulsian, a Mumbai-based independent investment analyst. Reliance Comm said last week it had received proposals from international telecoms firms to buy a strategic equity stake, after a newspaper report said Abu Dhabi-based Etisalat was eyeing a 25% stake for Rs18,000 crore ($3.9 billion). Separately, Economic Times newspaper also reported last week Reliance Comm was considering a merger with South Africa’s MTN, with which the Indian firm had initiated tie-up talks in 2008 in an ultimately thwarted deal. An MTN spokeswoman said on Sunday the company was not in talks with Reliance Comm. Cash Hungry Reliance Comm has been seeking much-needed funds amid a margin-destroying price war and the multi-billion-dollar cost of rolling out third-generation mobile services. Reliance Comm had a net debt of about Rs19,900 crore ($4.3 billion) at the end of March, while it paid Rs8,585 crore for acquiring third-generation spectrum licences in a recent auction. The company is also one of the bidders in an ongoing auction of wireless broadband spectrum licences, in which bids for all-India coverage licences have already crossed $2 billion. Shares in Reliance Comm, valued by the market at $7.4 billion, gained 14% last week amid reports of a possible deal. India’s 600-million-subscriber cellular market is the world’s fastest-growing, but call rates have slumped as low as 0.4 US cents per minute amid competition. Nine of the 15 operators already have foreign partners, with Reliance Comm the only big telecom firm not to have a direct foreign stake. Two years ago, Anil Ambani’s bid to merge Reliance Comm with MTN was scuppered when his long-estranged brother Mukesh asserted a right of first refusal on the Indian firm’s shares. But last month, the Ambani brothers ended an agreement not to compete in businesses with each other, freeing Reliance Comm to bring in outside investors. Etisalat, which already has a start-up joint venture in India, said last week it was looking to buy a stake in an Indian operator and was in talks with several firms but declined to be specific. Etisalat’s chairman told Reuters his firm could decide within weeks about a deal in India. Buying a stake in India’s second-biggest mobile operator would give Emirates Telecommunications Corp or Etisalat, a vital presence in the world’s fastest-growing mobile market. Source: Home - Livemint.com | 6 Jun 2010 | 2:56 am Controls an option for volatile capital flows in Asia: IMFOver the past several months the region saw a wave of capital flow in, then ebb in more recent weeks, and Naoyuki Shinohara, deputy managing director of the IMF, said that volatility posed a challenge to policymakers.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 2:54 am Tank up, petrol, diesel prices set to rise - IBNLive.com
Source: Business - Google News | 6 Jun 2010 | 2:50 am GM launches VC arm to fund innovationNew York: The American auto giant General Motors has set up a $100-million venture capitalist subsidiary to invest in companies that are developing new technologies in the automotive and transportation sector. GM has said it has created a venture capital subsidiary General Motors Ventures, designed to help the company identify and develop innovative technologies in the automotive and transportation sector, the Detroit-based company, which till recently was the world’s largest auto company, said in a statement. GM Ventures has been funded with an initial investment of $100 million and is currently exploring equity investment in a number of auto-related technologies and business models. GM Ventures would be run by Jon Lauckner, who was GM’s former vice-president for global product planning, from 1 July. He would report to Stephen J Girsky, vice-chairman for corporate strategy and new business development at GM. “We are constantly looking for ways to deliver the best technology for our customers. Our goal is to nurture innovative technologies to help bring them to the market, and to ensure our customers have access to the best technology available,” Girsky. GM, which is 61% owned by the US government now after the 2009 bailout following its bankruptcy, last month posted a net income of $1.2 billion for the January-March quarter, against a loss of $5.9 billion in the year-ago period. Its total revenue during the quarter jumped by 40.32 per cent to $31.5 billion. Source: World Business - Livemint.com | 6 Jun 2010 | 2:43 am Reliance Communications board OKs up to 26% stake saleReliance Communications said last week it had received proposals from international telecoms firms to buy a strategic equity stake.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 2:39 am Iran central bank head denies report on selling reservesIran's central bank chief denied reports that the country planned to sell 45 billion from its reserves to buy dollars and gold.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 2:36 am Bank of America workers across US sue for overtimeThe lawsuit filed on Friday in federal court in Kansas City, Kansas, consolidates 12 lawsuits filed on behalf of employees in California, Florida, Kansas, Texas and Washington.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 2:29 am RCom board gives in-principle approval to stake saleReliance Communications today decided in-principle to dilute 26 per cent equity in a strategic sale. The board's decision comes within two weeks of the Ambani brothers calling a truce and terminating the no-compete agreement of 2005 between the two Groups.Source: HindustanTimes.com - Top Business News Headlines | 6 Jun 2010 | 2:01 am Nine of top-10 cos add about Rs 38k cr to m-cap; ONGC leadsThe week that saw the benchmark index Sensex crossing the 17,000 mark, nine out of top-ten firms added nearly Rs 38,000 crore to their market capitalisation with ONGC emerging as the biggest gainer.Source: HindustanTimes.com - Top Business News Headlines | 6 Jun 2010 | 1:51 am India's KPO mkt may grow 25-30% annually till 2013: GartnerIndia's Knowledge Process Outsourcing (KPO) market is forecast to grow by 25-30 per cent annually till 2013, driven by rising demand for professional services, global research firm Gartner said.Source: HindustanTimes.com - Top Business News Headlines | 6 Jun 2010 | 1:46 am Havells goes for re-branding in MexicoNew Delhi: Electrical equipment maker Havells India on Sunday said it is undertaking a re-branding exercise in Mexico to introduce products under its own brand. Havells already marks its presence in Latin America, including Mexico, through SLI Sylvania, which it acquired for $300 million in 2007. The company sells lighting equipments in these markets under the brand SLI. Now the firm is looking at selling its entire product range under the ‘Havells’ brand and phase out ‘SLI’ in Mexico, where it sells products like CFL lamps and decorative lights. “We are taking a re-branding exercise to introduce Havells brand in Mexico and soon all the products from Sylvania would bear the name Havells on it,” Havell’s India joint managing director Anil Gupta told PTI. Currently, Havells’ sales from Mexico operations is around $30 million. “It is expected to grow up to $100 million in the next three years,” Gupta said, adding that the company is bullish on its business prospects in Mexico, which is the largest market in Latin America. He said the firm plans to introduce Havells switchgear in the Latin American markets, including Mexico. Although, the company declined to give details about investments, Gupta said Havells is scouting for acquisitions in Latin American markets other than Mexico. “We are looking for inorganic opportunities in these markets to fuel our growth,” he said. The company is primarily looking for small manufacturers or units or brands in these markets for supplementing its product portfolio, he said while refusing to divulge further details. Gupta said Latin America contributes around $200 million to Havells overall revenue of $1.2 billion and in next three years it would go up to $300 million. “At present Latin American operations account for 18% of our total sales,” he said, adding as sales pick up it is expected to go up to 25%. In the past Sylvania operated in India through a joint venture as Laxman Sylvania. The company had called off its India operations in early 90s. Head quartered in Delhi, Havells India is one of leading electrical firms in India with operations in over 50 countries. The company has 11 manufacturing units in India and eight in other countries. Source: LatestNews-Home - Livemint.com | 6 Jun 2010 | 1:21 am Controls an option for volatile capital flows in Asia-IMFHO CHI MINH CITY, Vietnam (Reuters) - Capital controls could be an option for taming volatile capital flows in Asia, but should be only deployed in exceptional circumstances and after other tools are tried first, a senior International Monetary Fund official said on Sunday.Source: Reuters: Money News | 6 Jun 2010 | 1:10 am Disney to enter new talks for Miramax saleThe latest development follows a failed attempt by Miramax founders Bob and Harvey Weinstein, along with supermarket magnate Ron Burkle, to buy back the arthouse studio for about $600 million.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 1:09 am India may see flight of capital in next six months: FICCI - Times of India
Source: Business - Google News | 6 Jun 2010 | 1:08 am Prudential denies report of renewed bid for AIG unitThe group was considering an attempt to resurrect its bid and that Pru's chief executive Tidjane Thiam believed he could have a chance to table another offer before the end of this year.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 1:06 am Bangladesh lifts Facebook banDhaka: Bangladesh has lifted a ban on social networking site Facebook after it removed “objectionable” content about the Prophet Mohammad and the country’s political leaders, the telecoms regulatory agency said on Sunday. Facebook was blocked last week after publication of caricatures of the Prophet that hurt the religious sentiments of the country’s majority Muslim population. “The ban on Facebook has been lifted late on Saturday after the authorities removed the objectionable contents from the sites,” said a senior official of the Bangladesh Telecommunication Regulatory Commission. Facebook was barred by a court in Pakistan, also overwhelmingly Muslim, because of an online competition to draw the Prophet Mohammad, but was unblocked last week. Hundreds of protesters marched through Dhaka demanding action against Facebook while users said the government should have blocked specific links instead of blocking the whole website. A man was arrested in Dhaka for posting “obnoxious” images of the country’s political leaders, including Prime Minister Sheikh Hasina and opposition leader Begum Khaleda Zia. Facebook has become hugely popular among Bangladeshis, especially educated young people. The publication of cartoons of the Prophet in Danish newspapers in 2005 sparked deadly protests in Muslim countries. Around 50 people were killed in 2006 demonstrations over the cartoons. Any representation of the Prophet Mohammad is deemed un-Islamic and blasphemous by Muslims. Source: Tech News - Livemint.com | 6 Jun 2010 | 12:59 am Bangladesh lifts Facebook banDhaka: Bangladesh has lifted a ban on social networking site Facebook after it removed “objectionable” content about the Prophet Mohammad and the country’s political leaders, the telecoms regulatory agency said on Sunday. Facebook was blocked last week after publication of caricatures of the Prophet that hurt the religious sentiments of the country’s majority Muslim population. “The ban on Facebook has been lifted late on Saturday after the authorities removed the objectionable contents from the sites,” said a senior official of the Bangladesh Telecommunication Regulatory Commission. Facebook was barred by a court in Pakistan, also overwhelmingly Muslim, because of an online competition to draw the Prophet Mohammad, but was unblocked last week. Hundreds of protesters marched through Dhaka demanding action against Facebook while users said the government should have blocked specific links instead of blocking the whole website. A man was arrested in Dhaka for posting “obnoxious” images of the country’s political leaders, including Prime Minister Sheikh Hasina and opposition leader Begum Khaleda Zia. Facebook has become hugely popular among Bangladeshis, especially educated young people. The publication of cartoons of the Prophet in Danish newspapers in 2005 sparked deadly protests in Muslim countries. Around 50 people were killed in 2006 demonstrations over the cartoons. Any representation of the Prophet Mohammad is deemed un-Islamic and blasphemous by Muslims. Source: LatestNews-Home - Livemint.com | 6 Jun 2010 | 12:59 am ANALYSIS - U.S. luxury brands may slow European growth(For other news from the Reuters Global Luxury Summit, click on http://www.reuters.com/summit/GlobalLuxury10?pid=500)Source: Reuters: Money News | 6 Jun 2010 | 12:56 am Asia’s iPad imitators hope to bite into Apple’s leadHong Kong: When Apple announced the arrival of the iPad, it said it would create and define a brand-new sector in the market for computer devices, somewhere between the smartphone and the notebook laptop. Two months and over two million iPad sales later a string of Asian manufacturers have shown they agree — by unveiling their own tablets which they hope will take a bite out of Apple’s lead. Over a dozen new iPad-style gadgets have now entered the fray, and more are sure to follow. At the Computex computer trade fair in Taipei this week, beautiful models posed with shiny black slabs of clever glass — most of which looked pretty much the same as Apple’s iPad. First out of the box was the catchily named ASUS Eee Pad 101TC. It’s similar in size to the iPad, runs on Windows and will sell for $399—around $100 less than the US price of a basic iPad. The MSI WindPad 100, which at $499 costs the same as the iPad, also runs on Windows and boasts a webcam — which is conspicuously absent in the first iPad models. LG’s new UX10 device also has a webcam. Many newcomers will also use Adobe’s Flash video technology, another perceived flaw in the iPad. Apple refused to allow Flash on its new gadget. Taiwan-based chipmaker VIA believes the way forward in the tablet market is to go smaller and cheaper. Its VIA Slate prototype has a seven-inch screen, runs on an old version of Google’s Android operating system and will retail for between $100 and $200. Several other tablet devices will also run on Android. Right at the bottom of the market is the iPed — which seems to be a direct copy of the iPad, even down to the packaging. It is on sale only over the Taiwan Strait in China, selling in a Shenzhen computer mall for $105. Nancy Liu of Taiwan’s Industrial Technology Research Institute told AFP that companies launching their tablets at Computex wanted to prove “they have the capability to catch the trend set by Apple.” “I don’t think the followers are capable of dethroning Apple’s leadership at least in the short term,” Liu said. But it’s not the gadget, it’s what you can do with it that counts. And this is where Apple is also streets ahead of the pack. As Jenny Lai, a Taipei-based technology analyst for brokerage firm CLSA, says: content is king. “Content remains a critical part of the success story for iPad,” she said. “Currently, there are seven major app stores including new entrants Lenovo and Asustek. “What’s more important for Apple and existing vendors is building up a more user-friendly interface and more choices for online-store users.” Apple has more than 100,000 downloadable applications compared to the 500 it offered for the iPhone when it first opened online less than two years ago. Google has more than 30,000 apps available for Android. Lenovo’s application download store for Lephone and other products has around 250 applications. Asustek say it is cooperating with Intel and Microsoft to launch an app store in 2010 on a Windows platform. And it’s not just computer makers watching each other’s reaction to this “new” market — the struggling old school publishing industries are also looking on in hope. The tablet computer plus its slightly less glamorous cousin, the e-reader, have been hailed as the saviour of the book and newspaper industries. Sony, which has an e-reader but does not have a tablet computer on the market — yet — predicts big changes for the publishing industry on the back of the launch of all these devices. Steve Haber, president of Sony’s digital reading business division, believes the printed book will soon be overtaken by its electronic sister, the same pattern seen with music and photography. “Within five years there will be more digital content sold than physical content,” he told the Daily Telegraph newspaper. “I have multiple meetings with publishers and tell them paradigm shifts happen. You can say fortunately or unfortunately you haven’t had a paradigm shift in, what, hundreds of years. “We in the consumer electronics area have a paradigm shift every year or two.” Source: LatestNews-Home - Livemint.com | 6 Jun 2010 | 12:54 am Asia’s iPad imitators hope to bite into Apple’s leadHong Kong: When Apple announced the arrival of the iPad, it said it would create and define a brand-new sector in the market for computer devices, somewhere between the smartphone and the notebook laptop. Two months and over two million iPad sales later a string of Asian manufacturers have shown they agree — by unveiling their own tablets which they hope will take a bite out of Apple’s lead. Over a dozen new iPad-style gadgets have now entered the fray, and more are sure to follow. At the Computex computer trade fair in Taipei this week, beautiful models posed with shiny black slabs of clever glass — most of which looked pretty much the same as Apple’s iPad. First out of the box was the catchily named ASUS Eee Pad 101TC. It’s similar in size to the iPad, runs on Windows and will sell for $399—around $100 less than the US price of a basic iPad. The MSI WindPad 100, which at $499 costs the same as the iPad, also runs on Windows and boasts a webcam — which is conspicuously absent in the first iPad models. LG’s new UX10 device also has a webcam. Many newcomers will also use Adobe’s Flash video technology, another perceived flaw in the iPad. Apple refused to allow Flash on its new gadget. Taiwan-based chipmaker VIA believes the way forward in the tablet market is to go smaller and cheaper. Its VIA Slate prototype has a seven-inch screen, runs on an old version of Google’s Android operating system and will retail for between $100 and $200. Several other tablet devices will also run on Android. Right at the bottom of the market is the iPed — which seems to be a direct copy of the iPad, even down to the packaging. It is on sale only over the Taiwan Strait in China, selling in a Shenzhen computer mall for $105. Nancy Liu of Taiwan’s Industrial Technology Research Institute told AFP that companies launching their tablets at Computex wanted to prove “they have the capability to catch the trend set by Apple.” “I don’t think the followers are capable of dethroning Apple’s leadership at least in the short term,” Liu said. But it’s not the gadget, it’s what you can do with it that counts. And this is where Apple is also streets ahead of the pack. As Jenny Lai, a Taipei-based technology analyst for brokerage firm CLSA, says: content is king. “Content remains a critical part of the success story for iPad,” she said. “Currently, there are seven major app stores including new entrants Lenovo and Asustek. “What’s more important for Apple and existing vendors is building up a more user-friendly interface and more choices for online-store users.” Apple has more than 100,000 downloadable applications compared to the 500 it offered for the iPhone when it first opened online less than two years ago. Google has more than 30,000 apps available for Android. Lenovo’s application download store for Lephone and other products has around 250 applications. Asustek say it is cooperating with Intel and Microsoft to launch an app store in 2010 on a Windows platform. And it’s not just computer makers watching each other’s reaction to this “new” market — the struggling old school publishing industries are also looking on in hope. The tablet computer plus its slightly less glamorous cousin, the e-reader, have been hailed as the saviour of the book and newspaper industries. Sony, which has an e-reader but does not have a tablet computer on the market — yet — predicts big changes for the publishing industry on the back of the launch of all these devices. Steve Haber, president of Sony’s digital reading business division, believes the printed book will soon be overtaken by its electronic sister, the same pattern seen with music and photography. “Within five years there will be more digital content sold than physical content,” he told the Daily Telegraph newspaper. “I have multiple meetings with publishers and tell them paradigm shifts happen. You can say fortunately or unfortunately you haven’t had a paradigm shift in, what, hundreds of years. “We in the consumer electronics area have a paradigm shift every year or two.” Source: Tech News - Livemint.com | 6 Jun 2010 | 12:54 am FIIs shift from equities to debt, buy bonds worth Rs 2,450 crThe ongoing European crisis has shifted foreign institutional investors' interest from risky equity markets to relatively safer debt market instruments.Source: HindustanTimes.com - Top Business News Headlines | 6 Jun 2010 | 12:43 am Goldman silence on probe a model others will avoid?NEW YORK (Reuters) - The decision of Goldman Sachs Group Inc not to tell shareholders that U.S. regulators might sue the bank over a subprime mortgage-linked security could cause other companies to rethink the way they handle regulatory investigations.Source: Reuters: Money News | 6 Jun 2010 | 12:35 am Car sales see an all time high in IndiaCar sales in India in April reached at an annual high of 39.5%, indicating consumer demand despite rising prices.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 12:33 am Led by Infosys, Indian ADRs gains $1.4 billionNew York: Led by IT bellwether Infosys Technologies, the Indian stocks trading on the American bourses gained $1.4 billion to their cumulative market capitalisation last week. For the week ended 4 June, the 16 Indian entities listed on the New York Stock Exchange and Nasdaq added $1.4 billion to their market capitalisation, with Infosys alone accounting $798 million, taking its valuation to $33 billion. But out of the 16 companies listed as American depository receipts (ADRs), half of them, including copper producer Sterlite Industries, have witnessed a value erosion in their market capitalisation. ADRs are bought and sold on American bourses just like stocks and are issued by banks or brokerage firms. Sterlite was the major loser during the week. The company saw its market capitalisation falling $513 million to $11.04 billion. Valuations of pharma major Dr Reddy’s jumped $349 million to $4.97 billion. Next comes, auto maker Tata Motors whose market capitalisation climbed $311 million to $7.66 billion. Tata Motors is followed by outsourcing company Genpact which saw its valuation rising $217 million to $3.7 billion. Private sector lender HDFC Bank and IT icon Wipro too saw their valuations going up. HDFC Bank gained $183 million to $20.94 billion, while Wipro added $162 million to $30.26 billion. Other gainers include Mahindra Satyam ($40 million) and Sify Technologies ($2 million). The losers pack include online firm Reddif.com, BPO companies WNS Holdings and EXLService Holdings; ICICI Bank, Tata Communications and Mahanagar Telephone Nigam. These companies saw their valuations slipping in the range of $3 million to $ 59 million. On Friday the US markets ended in deep red, with Dow Jones settling down by 323.31 points at 9,931.97 and S&P 500 fall by 37.95 points to 1,064.88. Besides, Nasdaq shed 83.86 points at 2,219.17. Source: Home - Livemint.com | 6 Jun 2010 | 12:32 am Google to provide data to European authoritiesCanada recently launched a probe into Google amid privacy concerns related to the search giant's Street View service, which uses camera-equipped fleets of cars to take panoramic pictures for its online atlas.Source: Daily News & Analysis: Money News | 6 Jun 2010 | 12:24 am Samosa, chicken curry fly off rack at Shanghai expo;Samosas, chicken curry and tangdi kebabs are fast disappearing off the shelves of a stall at the India pavilion of the Shanghai world expo in China. So much so that its owner now plans to open a permanent outlet in this Chinese commercial hub.Source: HindustanTimes.com - Top Business News Headlines | 6 Jun 2010 | 12:10 am Foreign banks keen to strengthen foothold in IndiaMumbai: Foreign banks have been in India for more than 150 years but more overseas lenders are now queuing up to set up operations, amid signs that tough restrictions on entry may be eased. Five to eight foreign banks are seeking to come to India, a source familiar with the industry said, with the country viewed as as attractive because of gaps in the market and a buoyant economy that has created wealthier clients. “India is in focus. It is a high-growth market,” added Abizer Diwanji, head of financial services at consultancy KPMG India. “Foreign banks are building their base here, focusing on high-net-worth clients”. Last week Britain’s Standard Chartered Bank raised $530 million in a novel share sale through Indian Depository Receipts, which gives Indians an opportunity to get a global exposure to banking. The London-based lender, which as The Chartered Bank opened its first overseas bank in the eastern city of Calcutta in 1858, called the fund-raising issue — which was oversubscribed by more than double — a “homecoming.” Australia’s third-largest bank, ANZ, has been given the go-ahead for retail and wholesale banking operations. Credit Suisse, which already has an Indian investment banking, wealth management and mutual fund arm, is following suit. Embattled bank Goldman Sachs is also keen to enter India. “India is a real market of substance,” ANZ’s chief executive for Asia Pacific, Europe and America, Alex Thursby, has said. The presence of foreign banks has brought changes to the way India banks. They were instrumental in bringing automated teller machines (ATMs) and credit cards to India. But they have still played a limited role in India’s vast lending space, which has traditionally been dominated by state-run banks, mainly due to restrictions and entry barriers in place until economic liberalisation in the early 1990s. Operations still cater to a niche market of wealthy clients in big cities, offering specialised products, forex and financial transaction facilities, advisory and wealth management services. Thirty-four foreign banks are currently operating in India with Citibank, Standard Chartered and HSBC currently accounting for 70% of their total business. In the last five years to March 2009, foreign banks have seen a net profit compounded annual growth of 27%, led by interest and fee-based income, a report from Mumbai-based HDFC Securities shows. India has concentrated on consolidating its domestic banking system over the last five years but the Reserve Bank of India says the next phase of expansion will see foreign banks’ role “gradually enhanced in a synchronised manner”. A spokeswoman declined to comment on how many overseas banks are looking to set up but said they would clear applications as they come in. “We do not hold these back,” she told AFP. The RBI has approved an average 15 bank-branch licences every year for the past few years, which is above its commitment of 12 to the World Trade Organisation. But predictions about when foreign banks will arrive is difficult to assess. One issue that could delay entry is the current trouble in the eurozone, which could affect strategic decision-making. “Typically, foreign banks are dependent on the fortunes of their head office,” said one banking analyst. Foreign banks could also face stiff competition from Indian lenders, despite the country having a relatively low penetration of financial services, as more private banks have come into the sector in the last decade. Interest margins for banks have been falling since 2000, according to a report by investment bankers and securities firm Execution Noble, as banks fight for market share across the board. In the decade to September 2009, private banks doubled their market share to 20%, while foreign banks slipped from 8% to 6%, said Execution Noble’s Aditi Thapliyal. Source: Home - Livemint.com | 6 Jun 2010 | 12:03 am Banks told to get tech savvy, groom talent as big staff exit loomsWith nearly a quarter of the workforce in public sector banks set to retire in the next two-three years, the Government has asked these institutions to come up with a strategy to leverage technology and business process reengineering to make up forSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am Move to make solar power deals bankable delays developers' pact with NTPC armThe power purchase agreements (PPAs) between solar power developers and the trading arm of NTPC, NVVN, could get delayed, as the Government is still working out mechanisms to make these agreements moreSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am Major banks build up home loan market shareEven as growth in the home loan market stayed in the single digit in 2009-10, larger banks managed to expand their market share in this segment, by edging out smallerSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am Gold hits new peakGold prices on Saturday gained Rs 460 per 10 gram to hit a new peak of Rs 18,795 in Mumbai, breaking the earlier record of Rs 18,750 registered onSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am SAIL to invest Rs 3,000 cr in eco effortsSteel Authority of India Ltd will invest Rs 3,000 crore on environment management efforts as part of its modernisation and expansionSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am Pranab warns G-20 against rushed stimulus exitThe Finance Minister, Mr Pranab Mukherjee, on Saturday asked G-20 member countries not to rush to fiscal exits at the same time, stating that any such move could undermine the global economicSource: Business Line - Home Page | 6 Jun 2010 | 12:00 am UK's Pru denies report of renewed bid for AIG unitHONG KONG (Reuters) - UK insurer Prudential is not considering a renewed attempt to buy AIG's Asian life unit, a spokesman for the company said on Sunday, denying a media report that a fresh takeover proposal was in the works.Source: Reuters: Money News | 5 Jun 2010 | 11:59 pm Disney to enter new talks for Miramax sale - reportLOS ANGELES (Reuters) - Walt Disney Co will enter into exclusive talks on Monday to sell its Miramax film unit to Los Angeles construction magnate Ron Tutor and film financier partner David Bergstein, the Los Angeles Times reported on Saturday.Source: Reuters: Money News | 5 Jun 2010 | 11:54 pm Bank of America workers across U.S. sue for overtimeNEW YORK (Reuters) - Workers for Bank of America Corp, one of the nation's largest employers, have sued the company for allegedly failing to pay overtime and other wages.Source: Reuters: Money News | 5 Jun 2010 | 11:33 pm Once-powerful Communists fight for survivalNew Delhi: Tagged as the world’s most electorally successful Communist party, the Marxist leaders of West Bengal might finally be nearing the end of more than three decades of uninterrupted power. The Communist Party of Indian (Marxist), or CPI-M, which has won every election in the eastern Indian state since 1977, is suddenly fighting for survival after suffering a crushing defeat in municipal elections last week. The party’s nemesis is India’s mercurial railways minister Mamata Banerjee, who heads the Trinamul Congress, a relatively new regional party intent on ending the Communists’ long-running monopoly on power in West Bengal. Banerjee’s party swept the polls in the state capital Kolkata, winning 95 of 141 seats, with the CPI-M left with just 33 — its worst-ever showing and one that was repeated in cities across the state. To many observers, the result was confirmation that India’s once-powerful Left is now in a state of terminal decline. “For the first time in decades, the Marxists are facing a credible threat. They are looking vulnerable in their bastion,” said Saroj Giri, a professor of political science at Delhi University. The CPI-M has now lost three straight elections in West Bengal in a row — council, parliamentary and municipal — and there is little to suggest the result will be any different in state polls due next year. For years, the Marxists had avoided the sort of anti-incumbency sentiment behind the rise and fall of other state governments, but analyst B.G Verghese suggested that 33 years had finally taken their toll. “I think the people are fed up. The time is ripe for (the Marxists) to be turfed out,” said Verghese, a former member of the New Delhi-based Centre for Policy Research. As India’s economy has boomed, the CPI-M’s rhetoric has appeared an increasingly uncomfortable fit with the aspirations of newly affluent Indians, while its populist appeal has been stolen by Banerjee’s party. “Mamata Banerjee identifies with the aspirations of the poor and the middle-classes,” said Rasheed Kidwai, a biographer of India’s first lady of politics, Sonia Gandhi. “Her party, unlike the Marxists, is not cadre-based and includes people from all sections of society,” Kidwai said. Prior to the unexpectedly strong national mandate handed to Gandhi’s Congress party in last year’s general elections, the Marxists were powerful enough to exert a heavy influence on central government policy. Their repeated threats to withdraw support from the government were blamed for either scuppering or impeding key market reforms, and their own economic record in West Bengal also came in for some highly critical scrutiny. The CPI-M was also hit by the deaths of two iconic leaders — master strategist Harkishen Singh Surjeet in 2008 and the charismatic Jyoti Basu this year. Basu, who narrowly missed a chance to become prime minister in 1996, was the longest serving chief minister in Indian political history, having headed the West Bengal government from 1977 to his retirement in 2000. Both leaders “had a wealth of experience that the present day leadership lacks. The new leaders are seen as theoreticians, out of synch with reality and the people,” said Kidwai. An editorial in the Business Standard said the Communists’ fall from grace should serve as an important lesson for the all-conquering Banerjee. She would do well “to offer the desperate people of Bengal hope in their future. A future of re-industrialisation, a future of development and growth of a modern knowledge-based economy,” the newspaper said. If she fails, “her present support base may easily evaporate,” it warned. Source: LatestNews-Home - Livemint.com | 5 Jun 2010 | 11:18 pm DCB promoter stake to come down by 5% post December QIPMumbai: Private sector lender, Development Credit Bank (DCB), in which the Aga Khan Foundation holds over 23% stake, expects to reduce the promoter stake by around five per cent through its proposed Rs150 cr qualified institutional placement in December, a top official said. The issue is being launched as part of the bank’s efforts to bring down the promoter holding to 10% as stipulated by the Reserve Bank. Earlier, the apex bank had put pressure on the Mumbai-based lender to reduce Aga Khan’s stake and has not issued any new branch licenses over the past three years. “The aim is to launch the Rs150 cr issue by December. The Bank’s shareholders had recently approved the proposal. Post issue, the promoter holding will be down by nearly five per cent to nearly 18%. The issue is a part of the bank’s efforts to reduce the promoter stake in the bank in a gradual manner,” DCB managing director and CEO, Murali Natrajan, told PTI. After the apex bank had asked the private sector lender to reduce the promoter holding, DCB had submitted a detailed roadmap to the Reserve Bank to minimise the promoter holding to 10% by March, 2014. The lender, which has been posting losses for the past several quarters, is aiming to return to the profit path by the third quarter of FY 11 and has restrategised its business model by giving more thrust to SME and retail business, Natrajan said. As of now, nearly 40% of the bank’s loans are in retail, around 33% of the loans corporate and nearly 20% in small and medium enterprises. Moving ahead, it plans to realign the loan-book by changing 40% of total loans as SME loans, 33% retail and around 25% corporate and other advances, Natrajan said. DCB’s loan-book currently stands at Rs3,460 crore while it has a deposit-base of Rs4,787 crore as on 31 March, 2010. Current and savings account deposits contribute around 36% of the total deposits of the lender. It has targeted a 20% growth in both deposits and advances in the current fiscal as against 4% and 6% respectively in last year. According to Natrajan, an expected tightening in the RBI’s key rates is likely to put additional pressure on lending and borrowing rate moving ahead. The bank posted a loss of Rs eight crore in the quarter ended 31 March as against a loss of around Rs91 crore in the same period in Q4 of previous year while its losses for the full financial year stood at Rs 78 crore as against Rs88 crore in FY 09. “The bank has been expanding its balance sheet for the last six months and there is a roadmap to bring down the bad-loan ratios. In absolute terms, the bad loans of the bank has not increased over the last six months and recovery has been good,“ Natrajan said. The bank has a gross non-performing asset level of around 8.7% and a net NPA ratio of 3.1%. It aims to reduce these numbers to 6% and 2%respectively by the end of this financial year, he said. The lender has reduced its unsecured personal loans to around Rs90 crore as at end-March from over 300 crore in the year-ago period, Natrajan said. The bank has capital adequacy ratio of around 14.85%. Source: Home - Livemint.com | 5 Jun 2010 | 11:13 pm Hackers plant viruses in Windows smartphone gamesHackers have planted viruses in video games for smartphones running on Microsoft Corp's Windows operating system, according to a security firm specializing in mobile devices.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 11:07 pm Are home realty prices in Ahmedabad about to head south?Decline in enquiries due to high prices have sent jitters among realtors of the city, but others say that the trend is visible only in the high-end segment.Source: Daily News & Analysis: Money News | 5 Jun 2010 | 10:53 pm Nano overdrive leaves parts cos gasping - Economic Times
Source: Business - Google News | 5 Jun 2010 | 10:35 pm Asia's iPad imitators hope to bite into Apple's leadWhen Apple announced the arrival of the iPad, it said it would create and define a brand-new sector in the market for computer devices, somewhere between the smartphone and the notebook laptop.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 10:21 pm I-T dept seeks Rs 12,000 crore from VodafoneIncome-tax (I-T) department has asked telecom major Vodafone to pay nearly Rs 12,000 crore on its $11 billion acquisition of Indian telco Hutchison Essar three years agoSource: India Business News | Business News - Times of India | 5 Jun 2010 | 6:42 pm General Motors India sales grow 61%General Motors India has registered an impressive growth of 61 per cent in sales in May 2010, compared to the corresponding period last year. It sold 8,225 units in May 2010 against 5,109 units in May last year.Source: India Business News | Business News - Times of India | 5 Jun 2010 | 6:41 pm Vodafone tax - Calcutta Telegraph
Source: Business - Google News | 5 Jun 2010 | 3:54 pm Air India to distribute ex gratia from June 10 - The Hindu
Source: Business - Google News | 5 Jun 2010 | 2:39 pm BWA auction prices crosses Rs. 9800 crore - The Hindu
Source: Business - Google News | 5 Jun 2010 | 12:47 pm It pays to be in finance; but IT grads get a good startIn 2010, those armed with an MBA degree and one-two years of work experience got the highest salary hikes, on an average, if they were from the IT (Systems) departments of companies. They got an increase of nearly 13 per cent while those in general management got the lowest at 6.5 per cent. Finance MBAs with around 10 per cent hikes, and sales and marketing MBAs with around 10.11 per cent performed much better.Source: Business Standard | Front Page Headlines | 5 Jun 2010 | 12:46 pm Drug firms on outsourcing highAn increase in the number of outsourcing deals between domestic drug companies and pharmaceutical multinationals (MNCs) has triggered huge capacity expansion programmes in the drug manufacturing sector.Source: Business Standard | Front Page Headlines | 5 Jun 2010 | 12:44 pm Fortis may hold back Parkway counter-bidFortis Healthcare may avoid a hurried response to counter Malaysian investment fund Khazanahs bid to acquire management control over Asias largest health care chain Parkway Holdings from Fortis which holds the largest number of shares in Parkway.Source: Business Standard | Front Page Headlines | 5 Jun 2010 | 12:43 pm India urges G20 to stagger stimulus exitFinance Minister Pranab Mukherjee on Saturday urged G20 countries not to roll back stimulus measures at one go as it could derail the fragile economic recovery.Source: Business Standard | Front Page Headlines | 5 Jun 2010 | 12:40 pm ‘E-mail about a million dollar lottery you won? Ignore it’In the 1980s, thousands of consumers around the country were taken for a ride by fraudsters who would promise a free gift such as a mixer/grinder or a ‘two-in-one’ if consumers solved a simple puzzle.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 12:21 pm Europe, jobs keep U.S. stocks' anxiety highNEW YORK (Reuters) - U.S. stocks could face further pressure next week unless investors get some relief from worries about Europe, jobs and the toll they might take on the economic recovery.Source: Reuters: Money News | 5 Jun 2010 | 11:37 am Ranbaxy UK unit recalls painkillerThe British unit of Indian drugmaker Ranbaxy is recalling all unused stock of a batch of a nerve pain treatment after failing to update mandatory safety information, the DNA Money newspaper reported on Saturday.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 9:40 am Anand Mahindra: The Renaissance ManCNBCTV18\'s Shereen Bhan caught up with Anand Mahindra, Vice Chairman and Managing Director, Mahindra Mahindra to talk to him about the company and its future plans.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 9:20 am ECB's Jean-Claude Trichet says bank stress tests nearly completeWashington has been urging Europe to conduct such tests in the belief that publishing similar assessments of US banks heed bolster confidence on Wall Street and prodded banks to raise needed extra capital.Source: Daily News & Analysis: Money News | 5 Jun 2010 | 8:50 am Custody of Jet airways co-pilot extended in rape casePolice custody of a co-pilot with Jet Airways, arrested for allegedly raping an air-hostess, was extended till June 8 by a local court in Bangalore today.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 8:15 am What attracts Vivek Saraogi to sugar sector?Vivek Saraogi, MD, Balrampur Chini Mills, the third largest sugar producer in the country, also the President of the Indian Sugar Manufacturers Association, speaks about the Indian sugar industry and gives his outlook going forward.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 8:13 am Is there an Indian way of doing business?Is there an Indian way of doing business? Does mythology hold the answer? Noted mythologist Devdutt Pattanaik and CNBCTV18s Menaka Doshi discuss the purpose of a corporation, leadership qualities, Dharma Sankat and modern day business conflicts and other issues pertaining to Leadership and Governance.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 7:45 am Geithner urges China to resume exchange rate reformUS Treasury Secretary Timothy Geithner urged China on Saturday to let the yuan appreciate as a critical part of its economic reforms. Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 7:23 am What will listed cos make of new shareholding norms?The government has increased the minimum required public shareholding for listed companies to 25%. In an interview with CNBCTV18, Cyril Shroff, Managing Partner at Amarchand Mangaldas, spoke about what he made of the announcement and the implications of this notification.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:56 am After a struggle, G-20 agrees on need for deficit cutsBusan (South Korea): The Group of 20 leading economies reached an uneasy compromise on Saturday over the speed of budget cuts needed to calm global financial markets rattled by a spreading debt crisis in Europe. G-20 finance ministers sought to bolster market confidence by declaring themselves ready to safeguard recovery and stressing the importance of putting their public finances in order. Without referring specifically to the euro zone’s debt troubles, the G-20 said recent volatility in financial markets served as a reminder that significant challenges remained despite a faster-than-expected, though uneven, global economic recovery. “Those countries with serious fiscal challenges need to accelerate the pace of consolidation. We welcome the recent announcements by some countries to reduce their deficits in 2010 and strengthen their fiscal frameworks and institutions,” the G-20 said in a communique issued after two days of talks. The euro plunged to a four-year low on Friday, partly on concerns that Hungary could be facing a debt crisis similar to that of Greece, which had to turn to fellow euro zone members last month for a €110 billion bailout. German finance minister Wolfgang Schaeuble said the meeting had agreed that a determined effort to cut back billowing budget deficits was unavoidable. But he said the United States and other G-20 members had also argued for greater efforts to pump up demand. “There are different opinions,” Schaeuble told reporters. Diplomatic Geithner Asked if there had been heated discussion, South Korean deputy finance minister Shin Je-yoon said: “Yes, of course: a lot heat, a lot of heat.” In a letter that he sent to ministers on Thursday, US treasury secretary Timothy Geithner said global growth would fall short of potential unless other countries made up for a drop in demand as debt-strapped households tighten their belts. Geithner singled out the need for Japan and “European surplus countries” -- code principally for export powerhouse Germany -- to boost domestic demand. China, which also runs a big external payments surplus, should let its exchange rate rise to promote more spending at home, Geithner added. Privately, US officials have been urging fiscally conservative Germany, the largest euro zone member, not to rush into cutting its deficit, which is modest by European standards. But speaking to reporters after the meeting, Geithner struck a more emollient note. “My sense is that they understand how important it is to Germany, to Europe and the world, that Germany be growing,” he said. “The German government has a very good appreciation of the challenges ahead and how important growth is going to be not just to the success of their financial plans in Europe -- to help stabilise confidence in Europe -- but also to the success of the broader fiscal consolidation plans that are going to be important around the world,” the Treasury chief added. Nervous Markets The lack of hard news from Busan, while not surprising, could prove to be a disappointment for financial markets when they reopen on Monday, said Tohru Sasaki, chief foreign exchange strategist at JPMorgan Chase Bank in Tokyo. “The G-20 statement shows there’s more difficulty in reaching a concrete agreement between so many countries,” he said. Sasaki said markets could be galvanised instead by news out of Hungary. A senior official in the new government said figures in the current budget did not resemble reality and that its 2010 deficit goal would be impossible to hit without changes. “I think it’s big news. Concern over the euro countries will have a negative impact on Asian markets on Monday,” Sasaki said. With markets dismayed by Europe’s fiscal mess, IMF managing director Dominique Strauss-Kahn said he was “totally comfortable” with the G-20’s call for troubled euro zone countries to quicken the pace of deficit cuts. “They have to consolidate strongly even if it has some bad effect on growth,” he said, referring to Greece and other southern European countries saddled with huge debts. The International Monetary Fund is helping the 16-nation euro zone to rescue Greece after Athens lost the confidence of bond markets and was unable to roll over its vast debts. The two are also putting together a €750 billion ($910 billion) safety net for the euro zone in case other member countries fail to find buyers for their bonds. A forced debt restructuring would inflict heavy losses on euro zone banks. “Some countries have to go back rapidly to normalcy. Some others may go on with letting the stimulus expire on its own,” Strauss-Kahn told a news conference. Banking Reform On the other main issue in Busan, global banking reform, ministers reaffirmed a November deadline to draw up rules to beef up banks’ capital buffers and to discourage excessive leverage and risk-taking -- a root cause of the 2008-09 crisis, which ended up costing taxpayers trillions of dollars. The G-20 said it would aim to implement the new standards by the end of 2012. But Bank of Italy governor Mario Draghi, who heads the Financial Stability Board, said 2012 was more likely to mark the start of a phase-in period for the new rules. Faced with opposition led by Canada, the G-20 abandoned a proposal for a global bank levy to fund future bailouts. But the group said the financial sector should make a “substantial” contribution towards the cost of any new rescue. To that end, leaders will be asked to endorse a set of policy options -- including a levy -- from which countries can pick and choose when they meet in Toronto in late June. “The recent turmoil has once again raised concerns about the resilience of our financial system and underscores the importance of moving ahead on our financial regulatory reforms,” South Korean Finance Minister Yoon Jeung-hyun told the meeting. Source: Home - Livemint.com | 5 Jun 2010 | 4:55 am Sensex rises; outlook uncertain (Weekly market review) - Sify
Source: Business - Google News | 5 Jun 2010 | 4:32 am Buyout size increasing, not \'mega\' yet: ExecutivesPrivate equity bosses are expecting deal sizes to gradually increase in size but said on Friday they aren\'t forecasting an immediate return to megabuyouts, like the USD 15 billion size recently discussed.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:30 am Gold spurts Rs 430 to set new record of Rs 19,070 per 10 gramGold prices today jumped Rs 430 to an all-time high of Rs 19,070 per ten grams in the bullion market here as investors rushed for the metal, considered as a safe bet, after global equity markets crashed on concerns over worsening eurozone debt crisis.Source: India Business News | Business News - Times of India | 5 Jun 2010 | 4:26 am India sets hearing for $2.56bn Vodafone tax caseUK\'s Vodafone is fighting a tax bill in India from its 2007 purchase of Hutchison Whampoa Ltd\'s mobile business there, said authorities, had set a June 14 hearing to discuss the size of the tax bill.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am Govt to talk to telcos on network securityThe government said on Friday it would hold talks with telecoms sector players including service providers within a week to help address security threats in networks.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am BP begins capturing some oil from Gulf gusherBP began capturing some oil spewing from a 46day gusher on Friday after installing a containment cap atop a ruptured Gulf of Mexico well, as tar balls began washing ashore on the Florida coast.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am Broadband bids cross $2 bn on 10th dayBids for one set of nationwide wireless broadband spectrum licences reached Rs 95.22 billion (USD 2.03 billion) on Friday in an ongoing auction, government data showed.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am US employment report sparks global recovery fearsWashington: A weaker-than-expected report on US job creation has shown employers are still reluctant to hire new workers, and has heightened fears of a faltering economic recovery. In figures that fell well short of expectations -- sending markets across the world plummeting -- the Labor Department said 431,000 posts were created in May, most of them temporary government jobs for this year’s census. Private-sector jobs rose by just 41,000, less than a fifth of the amount predicted by analysts. Much of that gain came from temporary service-sector jobs. President Barack Obama’s hopes of slashing US unemployment had been expected to get a substantial boost, amid predictions that 500,000 or more jobs would be created. But Obama shrugged off the report, saying a slight drop in the unemployment rate showed the economy was getting stronger. The US unemployment rate dipped to 9.7% from April’s 9.9% as around 322,000 people stopped looking for work. “This report is a sign that our economy is getting stronger by the day,” Obama told a crowd gathered at a truck dealership in suburban Maryland. “There are going to be some months where people start worrying that, you know, maybe we’re not out of the hole yet. “But if we remain determined, if we stick to it, if we stay the course of investing in our people and businesses... then I’m absolutely positive we can succeed.” But his comments did little to shake fears of a jobless recovery. “There is no sugarcoating this report as it was disappointing,” said Joel Naroff of Naroff Economic Advisors. “Forget the headline number, the private sector is not out there hiring like crazy.” That response was echoed on Wall Street where the Dow Jones Industrial Average fell 325 points -- or more than three percent -- shortly before the closing bell. The picture was equally bleak in Europe. London’s FTSE 100 index shed 1.6% while in Paris the CAC 40 fell 2.9% and in Frankfurt the DAX lost 1.9%. Analysts said the skittishness was caused by fears that the private sector will not be able to prop up the economy as the government gradually withdraws stimulus spending. “The softer performance in US private-sector payrolls... raises concern that the recovery is faltering,” Stephen Gallagher and Aneta Markowska of Societe Generale said. That would spell bad news for the nearly one in 10 American workers who are unemployed and continue to stream into government offices asking for help. The Labor Department says almost 4.7 million Americans now claim unemployment benefits, with 453,000 new claims in the last week of May alone. Instead of rehiring staff many firms are asking workers to put in longer hours or are creating only part-time jobs, according to data also released Friday. The Labor Department said the average workweek has increased by around 20 minutes from a year ago to just over 34 hours. But some analysts said the employment figures are not yet cause for panic. “In our view, it would be premature to conclude that the recovery is stalling or even giving way to a renewed recession,” said Jan Hatzius of Goldman Sachs. “Employment is growing, but so far it is only growing at a 100,000 to 150,000 pace. This is sufficient to keep the unemployment rate stable and absorb most of the new entrants into the labor force, but it is nowhere near the 300,000+ pace which would be required to push the unemployment rate down rapidly.” Source: LatestNews-Home - Livemint.com | 5 Jun 2010 | 2:57 am
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