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Where are steel prices headed? Experts discussSteel industry has been taking a knock from rising or surging prices of iron ore. Will steel makers be able to pass on any part of this increase in raw material prices? Experts discuss.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 8:40 am SBI expects to launch Rs 20000cr rights issue in H2FY11The country\'s largest lender State Bank of India (SBI) expects to launch a Rs 20,000crore rights issue in the second half of FY11, Chairman OP Bhatt said.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 8:29 am Fortis plans fundraising as Parkway battle loomsFortis Healthcare said it plans to raise Rs 2750 crore (USD 585 million) by issuing securities and its board approved increasing its borrowing limit to Rs 6000 crore, positioning it for a possible battle for Singapore\'s Parkway Holdings.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 8:01 am IOC not on selloff list says govtStaterun oil marketing company Indian Oil Corp is currently not on the list of firms in which the government will sell stake,Source: Moneycontrol Top Headlines | 9 Jun 2010 | 8:01 am Hyundai Motors resumes production at Chennai plantProduction at Hyundai Motor\'s Chennai plant has resumed, even as a section of workers continued with their strike for the third day, a spokesman for the local unit said on Wednesday.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 7:45 am IMF`s Shinohara says euro zone crisis could hit AsiaEurope\'s debt crisis could disrupt global trade, hurting demand for Asian exports and sending \"hot money\" into the region if policymakers fail to act swiftly and appropriately, a top IMF official said on WednesdaySource: Moneycontrol Top Headlines | 9 Jun 2010 | 7:45 am Fortis Healthcare plans to raise Rs 2750 croreFortis Healthcare said on Wednesday it plans to raise Rs 2750 crore (USD 585 million) by issuing securities.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 7:45 am Govt has cash surplus of Rs 48000 crore with RBIThe government has a cash balance of around Rs 48000 crore with the RBI currently and will spend it gradually rather than at one go, three sources with direct knowledge of the issue told Reuters.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 7:45 am Govt to divest stake in 35 companies in next 5 yearsThe government will sell shares in 35 staterun companies over the next five year, the Minister of State for heavy industries and public enterprises said on Wednesday.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 6:07 am Backoffice outsourcing to rise 1516%: NASSCOMIndia\'s backoffice outsourcing business will post a growth of 1516% in the year to March 2011 on growing demand from overseas clients, the head of a leading industry group said on Wednesday.Source: Moneycontrol Top Headlines | 9 Jun 2010 | 6:07 am New tax code for parliament nod in monsoon session: Mukherjee - Economic Times
Source: Business - Google News | 9 Jun 2010 | 4:06 am Strike hits Taiwan machinery maker in China: ReportSome 2,000 workers at unlisted Shuyuan Machinery Enterprise (Kunshan) Ltd took to the streets over their demands, triggering clashes with police that left at least 50 people injured.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 4:04 am Rupee swings in line with domestic shares - Economic Times
Source: Business - Google News | 9 Jun 2010 | 4:01 am Sensex turns volatile; ITC, Wipro, SBI down - Economic Times
Source: Business - Google News | 9 Jun 2010 | 3:52 am India back-office outsourcing to rise by15-16%The export-driven sector has not seen any adverse impact from the European debt crisis, Som Mittal, president of the National Association of Software and Service Companies (NASSCOM) said.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 3:52 am Fortis plans fundraising as Parkway battle loomsFortis, controlled by billionaire brothers Malvinder and Shivinder Singh, has been widely expected to launch a counterbid for control of Parkway.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 3:43 am Spanish banks frozen out of interbank marketAt the end of May Spain's credit rating was cut by Fitch to AA+ from AAA, adding to fears that Spain is heading for a debt crisis from which it will need to be bailed out.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 3:41 am Q+A - How vital are regional parties in Indian politics?NEW DELHI (Reuters) - Smaller regional allies which give stability to the ruling coalition are forcing a delay in cutting costly fuel subsidies, underscoring the political difficulties they can pose to the government's reform agenda.Source: Reuters: Money News | 9 Jun 2010 | 3:40 am CORRECTED - Fortis plans fundraising as Parkway battle looms(Corrects figure in paragraph 3 to $835 million, not billion)Source: Reuters: Money News | 9 Jun 2010 | 3:38 am China exports blast past market forecast - sourcesSHANGHAI/BEIJING (Reuters) - Chinese exports in May grew about 50 percent from a year earlier, sources said on Wednesday, a figure that blew past expectations and fuelled a rise in stock markets globally.Source: Reuters: Money News | 9 Jun 2010 | 3:36 am Honda says 2 China car plants still halted ThursdayTOKYO (Reuters) - Honda Motor Co said production at two of its four Chinese car factories would remain suspended on Thursday due to a shortage of parts from a strike-hit supplier majority held by unit Yutaka Giken.Source: Reuters: Money News | 9 Jun 2010 | 3:35 am India to set up eight more overseas tax units to curb evasion - Sify
Source: Business - Google News | 9 Jun 2010 | 3:34 am Dr Reddy's gets prelim FDA nod for asthma drugMUMBAI (Reuters) - Dr. Reddy's Laboratories has got tentative approval from U.S. regulators to launch the generic version of AstraZeneca's Accolate, used to treat asthma, a company spokesman said on Wednesday.Source: Reuters: Money News | 9 Jun 2010 | 3:32 am 'No pressure on CBI to quash case against Anderson' - Press Trust of India
Source: Business - Google News | 9 Jun 2010 | 3:29 am Fortis Healthcare plans to raise Rs27.50bn - India Infoline.com
Source: Business - Google News | 9 Jun 2010 | 3:19 am SBI to raise Rs 20k cr via rights issueState Bank of India is expected to launch a Rs 20,000 crore rights issue in the second half of 2010/11, Chairman O.P. Bhatt said on Wednesday.Source: India Business News | Business News - Times of India | 9 Jun 2010 | 3:17 am Record May car sales for India; demand seen solidNEW DELHI (Reuters) - Car sales in India posted their best May ever, rising by almost a third from a year ago, an industry body said on Wednesday, as rising incomes and a rapidly expanding economy offset the impact of price increases.Source: Reuters: Money News | 9 Jun 2010 | 3:11 am Warren Buffett to invest in Bajaj Finserv? Stocks jumps - Economic Times
Source: Business - Google News | 9 Jun 2010 | 3:08 am Fuel reform at mercy of rain and politicsNEW DELHI (Reuters) – The government is hoping monsoon rains will soon give it the political cover it needs to start cutting costly fuel subsidies, but reforms will have to proceed slowly to keep reluctant coalition allies on board.Source: Reuters: Money News | 9 Jun 2010 | 2:53 am Rupee swings in line with domestic sharesMumbai: The Indian rupee flip-flopped on Wednesday, tracking a choppy local sharemarket which shed most of its earlier gains in line with its European counterpart, but the dollar’s losses against some majors, helped limit a further fall. At 2:20pm, the partially convertible rupee was at Rs47.07/08 per dollar, weaker than its Tuesday’s close of Rs46.95/96. It has moved in a band of Rs46.90 to 47.16 so far on Wednesday. Indian shares were trading up just about 0.2%. They had risen more than 1.2% earlier but trimmed most gains as the euro zone debt woes continued to linger on investor sentiment. Chances of adverse capital flows exist in the medium-term if the euro zone crisis deepens, Finance Minister Pranab Mukherjee said on Tuesday. The index of the dollar against six major currencies was 0.2% lower helping limit the downside for the rupee. One-month offshore non-deliverable forward contracts were quoted at Rs47.27, 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 at Rs47.21 and 47.2150 respectively, with the total traded volume on the two exchanges at about $4.8 billion. Source: Home - Livemint.com | 9 Jun 2010 | 2:52 am SBI to launch 200-billion-rupee rights issue in H2NEW DELHI (Reuters) - State Bank of India, the country's largest lender, expects to launch a 200-billion-rupee ($4.2 billion) rights issue in the second half of 2010/11, Chairman O.P. Bhatt said on Wednesday.Source: Reuters: Money News | 9 Jun 2010 | 2:46 am Hitachi suggests British train deal could be derailedTokyo: Japanese high-tech giant Hitachi said on 9 June that a multi-billion-dollar deal in Britain to build railway cars could be partially cancelled due to a spending squeeze by a new government in London. A Hitachi spokesman said the company is waiting for Britain’s decision after a review of the project, which the company expects to receive in a matter of days. “It’s possible that there may be changes in the British transport ministry’s plans,” the official said. “But I don’t think that our deal will be completely annulled because it’s about replacing decrepit railway cars,” he added. Hitachi, a sprawling conglomerate that builds everything from auto parts to consumer electronics to health care equipment, is working with property developer John Laing and investment fund Barclays Private Equity on the deal. The British government last year chose the Japanese company to spearhead the project, originally to be confirmed in March, that would replace two ageing fleets linking London with the northern and western parts of the country. But negotiations for the one-trillion-yen ($11 billion) deal for 1,400 hybrid railway cars froze after a new government was elected in Britain last month, making public spending cuts its top priority. Britain has pledged it will slash spending faster to keep its top credit rating after Fitch Ratings warned Tuesday that the country faces a “formidable” fiscal challenge. Shares of Hitachi slumped seven percent on Monday when speculation of the deal’s cancellation emerged. Shares ended down 2.6% at 340 yen. Source: LatestNews-Home - Livemint.com | 9 Jun 2010 | 2:40 am Fuel reform at mercy of rain, politicsNew Delhi: The government is hoping monsoon rains will soon give it the political cover it needs to start cutting costly fuel subsidies, but reforms will have to proceed slowly to keep reluctant coalition allies on board. A panel led by Union finance minister Pranab Mukherjee postponed a decision on reforming fuel pricing on Monday, after two key ministers from small coalition partners failed to attend in a clear signal of their reluctance to be associated with a policy that may improve India’s finances but will also cost votes. Mukherjee appears determined not to give up, however, and the Cabinet will set a date soon for another bid to agree the issue. Waiting 10 days or so will give the government a better sense of the strength of the oncoming summer monsoon. If it is normal, as expected, this will bolster farm output and give a respite from food price inflation. And that could give the government a window of opportunity to cut fuel subsidies. Submitting fuel to full market pricing would bolster India’s fiscal health as fuel accounts for a quarter of its estimated subsidy bill of Rs1.2 trillion ($25.5 billion). It would help state-run energy retailers such as Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd operate profitably. And it would fatten profits for Reliance Industries and Essar Oil, private sector players which captured almost 15% of the retail fuel market between them 5 years ago, before they were hit by subsidised sales by state firms. But public and political opposition in the face of looming state elections mean fuel reforms will be gradual at most. Protecting the common man The ruling Congress party coalition does not have the will to risk alienating its mostly poor and rural support base by exposing the price of cooking and motor fuels to market forces. “We will be forced to cut down household expenditure such as on food if the government hikes cooking gas prices,” said Rama Satpathy, a housewife in Bhubaneshwar. “We buy chicken, fish and mutton twice in a week. Now we may have to do it once in a week,” said Satpathy, whose husband works in a private firm and who has a child attending school. By not acting boldly now, however, India may miss a rare window of opportunity for reforms as inflation is forecast to abate, the monsoon is off to a promising start, global crude prices are relatively moderate and the next major state election, in large and impoverished Bihar, will only take place in October. “We believe the current macro environment is conducive for fuel reforms,” said a report by Goldman Sachs. Expectations for at least some changes in fuel pricing helped shares of state oil firms rise 3-4% on Wednesday. Politicians worry higher fuel prices would worsen the impact of inflation on consumers already burdened by higher food bills. Oil ministry officials say that to protect the “aam aadmi”, or common man, the government is keen to retain controls on cooking gas, used mainly in urban homes, and kerosene, used for lighting by the poor in regions that have no electricity. At most, the government might try to raise administered prices for cooking fuels. It favours reforms in the price of petrol, which accounts for only 10% of India’s fuel demand and is used primarily by wealthier car owners, and a slower change for diesel, which accounts for a third of the country’s fuel demand. Officials say the oil ministry is pushing for easing controls in phases, starting with market pricing of petrol. The Trinamool Congress, a West Bengal-based party that provides the government vital parliamentary support, said any rise in fuel prices at a time the government was struggling to rein in inflation would only hurt the common man. Indian authorities are sympathetic. “From a political and welfare perspective, it is difficult to impose on them a hike in fuel prices at the time when they are already dealing with high food prices. Balancing out these two factors will drive the timing,” Subir Gokarn, deputy governor of India’s central bank said this week in Singapore. Hoping For Rain New Delhi hopes a strong monsoon makes its decision easier. Food prices rose by an annual 15-16% after last year’s drought, provoking street protests and worrying regional allies of the coalition government. Within the next two weeks, the weather office will update its forecast for this year’s monsoon. Proponents of ending the subsidies argue that the inflationary impact is overstated. Fuel has a weight of about 8-9% in India’s widely watched wholesale price index, meaning a 10% rise in fuel rates would increase inflation by less than 1%, said T K Bhaumik, economist at JK Corp. “I don’t think this should have very significant impact on inflation,” he said. Also, India’s inflation rate is expected to soften -- the main jump in prices was last year due to the bad monsoon, so year-on-year inflation will soon start to slow. “Both food inflation and fuel inflation will start slowing down because of the base effect,” said N.R. Bhanumurthy, economist at the National Institute of Public Finance and Policy. Source: Home - Livemint.com | 9 Jun 2010 | 2:30 am Fortis plans fundraising as Parkway battle loomsNew Delhi: India’s Fortis Healthcare said it plans to raise Rs27.5 billion ($585 million) by issuing securities and its board approved increasing its borrowing limit to Rs60 billion, positioning it for a possible battle for Singapore’s Parkway Holdings. “This means Fortis is keeping the warchest ready if it has to make an open offer,” said Ranjit Kapadia, an equities analyst with HDFC Securities, adding it was not clear whether Fortis will actually make an open offer. Fortis owns roughly 25% of Parkway and had intended to build up a controlling stake in the company. It was surprised late last month when Malaysian sovereign wealth fund Khazanah offered $835 billion to lift its stake, which was slightly smaller than Fortis’, to a controlling 51.5%. Fortis, controlled by billionaire brothers Malvinder and Shivinder Singh, has been widely expected to launch a counterbid for control of Parkway. Malvinder Singh had earlier moved to Singapore to become chairman of Parkway. Shares in Fortis were up about 1.2% on 9 June, while Parkway shares were up 0.81%. Also on Wednesday, Fortis shareholders approved an earlier plan to issue roughly 22.35 million shares on a preferential basis to a unit of the Government of Singapore Investment Corp (GIC) at 170 rupees each, to raise 3.8 billion rupees. Source: LatestNews-Home - Livemint.com | 9 Jun 2010 | 2:25 am Hyundai Motors resumes production at Chennai plantSome workers at Hyundai's plant in Chennai had halted work on Monday demanding full re-instatement of dismissed employees in violation of orders while conciliation on the issue was under way.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 2:18 am Car sales up 30% compared to May last yearDomestic firms sold 148,481 cars in the month, compared with 113,810 units a year ago, data from SIAM showed. It was the highest sales in May ever, the industry body said.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 2:09 am InMobi enters US marketInMobi already maintains 2 billion US ad impressions monthly following its soft launch in January 2010.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 2:07 am Govt to list 35 PSUs, targets Rs 1.5 lakh crore in 5 yearsThe government on Wednesday said that it would list 35 public sector companies on stock markets over the next five years.Source: India Business News | Business News - Times of India | 9 Jun 2010 | 1:58 am Germany, France urge EU to eye short selling banBerlin: Berlin and Paris urged the European Commission to consider an EU-wide ban on short selling of shares and sovereign bonds in a display of solidarity that may ease concerns over recent Franco-German policy splits. In a joint letter published by Berlin on Wednesday, Chancellor Angela Merkel and French President Nicolas Sarkozy told European Commission President Jose Manuel Barroso the EU executive needed to accelerate the pace of financial reform. Brussels ought to accelerate efforts to impose tougher controls for credit default swaps on sovereign bonds and short selling, and present measures in the next few weeks, they said. “In particular we think it’s imperative to improve the transparency of short-selling positions on shares and bonds, particularly sovereign bonds,” the letter said. “The work of the European Commission should also extend to the possibility of an EU-wide ban of naked short selling of all or certain shares and sovereign bonds as well as all or certain naked CDS on sovereign bonds.” Germany moved unilaterally last month to ban naked short selling -- in which the seller does not hold the underlying asset -- of shares in its biggest banks, euro government bonds and related credit default swaps. Wednesday’s announcement followed talk of strains in relations between the euro zone’s two biggest economies, sparked by a decision to postpone a scheduled summit between the two leaders on Monday. Germany and France have been split on the future of the euro zone, with Berlin seeking to accelerate budgetary consolidation across the bloc to support the single currency and Paris hitherto warier of embarking upon swingeing austerity measures. France’s top priority is to create an “economic government” for the euro zone, with regular summits of the region’s 16 leaders and a dedicated secretariat, to coordinate economic policy and focus on rebalancing the European economy and boosting growth. On this front, however, Germany is so far unconvinced. In the joint letter, the two leaders said the Commission should also explore the possibility of harmonising deadlines for the settlement and delivery of securities across the EU. They added they were confident that talks between EU leaders, the Commission and the European Parliament would soon lead to a directive on alternative investment funds and that the creation of a new European oversight was progressing well. “We’re confident that we can count on your absolute commitment in dealing with these matters, which are of crucial importance for upholding financial stability in the European Union,” the leaders said in their final words to Barroso. Source: LatestNews-Home - Livemint.com | 9 Jun 2010 | 1:48 am Bajaj Finserv not in talks with Berkshire for stake saleIndian financial news portal vcircle.com reported that Berkshire may pick up about 5 to 10% in Bajaj Finserv, the holding company of Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance.Source: Daily News & Analysis: Money News | 9 Jun 2010 | 1:39 am IMF warns Asia of spillovers from European crisisSingapore: The International Monetary Fund (IMF) warned Asia on Wednesday of potential spillovers from the European debt crisis, which is unfolding a decade after the region underwent its own financial turmoil. “Adverse developments in Europe could disrupt global trade, with implications for Asia given the still important role of external demand,” IMF deputy managing director Naoyuki Shinohara told a forum in Singapore. On the financial front, he said major credit problems could result in a “significant spillover” through funding channels, especially where banks depend on wholesale funding. The crisis has also increased the potential for uncertainty and volatility in the outlook for capital flows, Shinohara said at the forum hosted by the Monetary Authority of Singapore, the de facto central bank. He said Asia’s bright growth prospects, together with low interest rates in major economies, would likely attract more capital that could “lead to risks of overheating in some economies if appropriate policy action is not taken. “On the other hand, further increases in global risk aversion could see capital flows change direction quickly.” Asia underwent a severe financial crisis in the late 1990s after a lending spree triggered currency volatility, resulting in the collapse of banks and companies across the world’s most populous region. The region also suffered from the global recession triggered by the US housing market collapse two years ago, but is now leading the recovery. Shinohara called on Asian governments to be wary of the potential risks from the European crisis and be prepared to take appropriate action. “The key will be for policymakers to keep an eye on the bigger picture and be ready to act swiftly as developments unfold,” he said. “With Asia’s economic muscle growing, the policy choices made in this region will have an important impact on the global economy,” he said. Greece is at the epicentre of a mounting debt crisis that threatens to spread across the eurozone and has pulled down the currency to four-year lows against the dollar and eight year lows against the yen. Shinohara said there was a risk that sovereign debt problems being experienced in some eurozone countries could spill over to others. He said the strong fiscal position of most Asian economies provided the “space” to respond flexibly to the European crisis. “In the event of spillovers from Europe, there is ample room in most Asian economies to pause the withdrawal of fiscal stimulus.” In a question-and-answer session, Shinohara said “we need to watch the situation very carefully and take actions as necessary.” Shinohara reiterated earlier comments by IMF chief Dominique Straus-Kahn that there was little cause for concern over Hungary’s fiscal woes, which have been placed in the spotlight after comments by two senior political figures in Budapest on the state of the national coffers. “I think the situation is much calmer and there is not much to worry about at this moment,” Shinohara said. The IMF sent its new mission chief for Hungary, Christoph Rosenberg, to Budapest on Monday to discuss the economic situation and prospects. Source: Home - Livemint.com | 9 Jun 2010 | 1:39 am Markets extend gains to more than 1%Mumbai: Indian shares extended gains to more than 1% on Wednesday afternoon, following two sessions of decline, as a solid start in European markets lifted investor confidence. At 12:45am, the 30-share BSE index was up 1% at 16,784.02 points, with 24 stocks gaining, after rising to as high as 16,793.79 earlier. The 50-share NSE index was up 1.1% at 5,042.85. Shares nudged 0.2% higher in the morning, after two sessions of decline, but dealers were sceptical about the outlook as euro zone’s debt worries continued to bother investors. Top mobile operator Bharti Airtel led the gainers, climbing as much as 6.7%, after it closed its $9 billion acquisition of African operations from Kuwait’s Zain in a deal that makes the Indian firm the world’s fifth biggest cellphone company by subscribers. Energy giant Reliance, which has the highest weight on the main index, rose 1.1% after sliding 3.4% over three sessions. By 11:18am, the 30-share BSE index was trading up 0.21% at 16,652.03, with 17 of its components gaining. The benchmark had lost 2.9% in the previous two sessions. The 50-share NSE index was up 0.5% at 5,010.75. “It is just a technical bounceback. But there is no strength in the market yet,” said Surekha Joshi, senior equity dealer for institutional equities at SPA Securities. “It is unlikely that we can hold on to these gains as worries in Europe deter any concrete buying,” she added. Foreign funds have been sellers for three of the first five trading sessions this month, pulling out around $9 million. In May, they had dumped shares worth $2 billion and pushed the main index down 3.5%. Bharti was trading 4.9% up at Rs270.50 after rising as high as Rs274.95. It had fallen 3.8% in the previous session. State-run energy firms were trading higher on market talk a ministerial panel for discussing fuel price reforms could meet very soon. Explorer Oil & Natural Gas Corp rose 2.5% while state-run oil marketing companies Bharat Petroleum Corp, Hindustan Petroleum Corp and Indian Oil Corp gained between 2.7% and 3.3%. Shares in the companies had fallen on Tuesday, a day after the government held off the fuel decision after two powerful ministers stayed away from a ministerial panel meeting, signalling opposition to the move on fears of voter backlash ahead of local polls over the next year. Banks advanced on optimism that credit growth will pick up as Asia’s third-largest economy expands. India could maintain an 8.5% growth in 2010/11 despite the euro zone problems, provided there is a normal summer monsoon, finance minister Pranab Mukherjee said on Tuesday. Top private lenders ICICI Bank and HDFC Bank rose 1% and 0.6% respectively. State Bank of India edged 0.3% higher. In the broader market, gainer were nearly double the number of losers on volume of 105 million shares. Source: Home - Livemint.com | 9 Jun 2010 | 1:31 am Hyundai Motors resumes production at India plant - Reuters
Source: Business - Google News | 9 Jun 2010 | 1:29 am The Playcast: ‘WWDC’ special The new iPhone 4: Reuters As expected Jobs unveiled the iPhone 4 at the conference. As tech site Gizmodo showed us, the new phone has two cameras, a ”retina display” or ”RD” screen which will render images at the same resolution as a printed magazine as well as a slightly different design. Jobs also introduced a new version of Safari which went up for download yesterday and made a number of other announcements related to the App store - the most exciting of which is possibly the iMovie app which will allow you to do basic video editing on the iphone. Sidin and Krish (Samanth is indisposed at the moment, but will be back next week) talk you through what they thought the hightlights of the keynote address were. Bonus chatter on other game devices, new phone launches and how geeks everywhere are at risk of succumbing to new awesome product overdose. Source: Home - Livemint.com | 9 Jun 2010 | 1:17 am Bharti Airtel jumps 7% on Zain dealBharti Airtel share surged nearly 7 per cent in the morning trade on the BSE on Wednesday, after completion of the USD 10.7-billion acquisition of Zain's Africa operations.Source: India Business News | Business News - Times of India | 9 Jun 2010 | 12:55 am India has Rs480 bn cash surplus with RBI: sourcesNew Delhi: The Indian government has a cash balance of around Rs480 billion with the central bank currently and will spend it gradually rather than at one go, three sources with direct knowledge of the issue told Reuters. The Reserve Bank of India (RBI) is ready to expand liquidity support to the system if the need arises, a source said late on 8 June, adding that the bank has its own estimate of the expected outflow as a result of advance taxes as well as payment towards the broadband wireless access (BWA) spectrum. “Well, let’s see how the situation evolves....there could be more liquidity support given.....the window itself could be expanded.....but we’ll see as the situation evolves,” the source said. Concerns of cash tightening sharply during this period has surfaced despite the RBI allowing banks to borrow an additional 0.5% of their deposits from the central bank through the daily liquidity support window till 2 July due to the slow pace of government spending. Traders in the bond market are expecting about Rs300 billion to flow out of the system as advance tax payment on 15 June and another Rs350 billion through BWA spectrum sale at the same time. “The govt has a largish positive cash balance ...it takes time to pump back money into the system....we are aware of the liquidity squeeze but I think the pumping back will be gradual rather than one go,” a finance ministry official told Reuters. Telecom companies paid Rs677 billion to the government towards auction of third-generation (3G) mobile spectrum on 31 May. This led to a sharp rise in the government’s surplus balance with the Reserve Bank of India (RBI). About Rs300 billion of this money may be used to repay the government’s loans from the RBI under Ways and Means Advances, a central bank official told Reuters on condition of anonymity. “I dont think it’s a structural issue, the liquidity mismatch is temporary in nature and in opening the LAF window all these have been built in - the redemptions, the 3G outflows as also the advance tax outflows but we are sure the mismatch can be addressed,” another source said. Spending of cash surpluses by the government will bring the money back to the banking system, easing the current liquidity tighteness which pushed the overnight money rates to over 5% from 3.75% two weeks ago. Source: LatestNews-Home - Livemint.com | 9 Jun 2010 | 12:40 am May car sales up 30 pc, bikes 26 pcAccording to the figures released by the Society of Indian Automobile Manufacturers, motorcycle sales for the month was up 25.80 per cent to 7,25,311 units from 5,76,537 units in the same month last year.Source: India Business News | Business News - Times of India | 9 Jun 2010 | 12:28 am Does the proposed infra debt fund meet India s infra needs - Moneycontrol.com
Source: Business - Google News | 9 Jun 2010 | 12:26 am Bharti Airtel jumps 7 pc on completion of Zain Africa buyBharti Airtel share surged nearly 7 per cent in the morning trade on the BSE today, after completion of the $10.7-billion acquisition of Zain's Africa operations.Source: HindustanTimes.com - Top Business News Headlines | 9 Jun 2010 | 12:24 am Stake sales in 35 companies in next 5 years - minNEW DELHI (Reuters) - The government will sell shares in 35 state-run companies over the next five year, the Minister of State for Heavy Industries and Public Enterprises said on Wednesday.Source: Reuters: Money News | 9 Jun 2010 | 12:19 am Indian shares edge up; Bharti, state oil cos rise - Reuters
Source: Business - Google News | 9 Jun 2010 | 12:09 am IATA outlook lifts aviation stocksThe three listed aviation stocks surged on the bourses on Tuesday on a day when the Sensex dipped 164 points. The International Air Transport Association (IATA) has said it expects global airlines to post a profit of $2.5 billion in 2010 from aSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Doors may open for foreign investment in infra debt fundThe Deepak Parekh Committee on India Infrastructure Debt Fund (IIDF) has recommended a slew of regulatory changes to pave the way for foreign insurance and pension funds to invest in the proposed DebtSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Day Trading GuideInitiate fresh short position only if DLF declines below the key support level of Rs 252 with stiffSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Global cues dent direct hiring in March quarterThe Government's latest employment survey shows a drop in the hiring of direct or permanent workers during the January-March period and a spurt in the hiring of contract labour. This comes after two consecutive quarters that saw a strong hiringSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am ‘Air India's potential needs to be activated'Captain Gustav Baldauf who was in India on May 31 to accept the contract for his new job as the COO, of Air India has already started tele-working for his job of turning the fortunes of the companySource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Auto component maker Magneti Marelli dreams of position as in S. AmericaAfter entering the Indian market three years ago, Italian auto component maker Magneti Marelli has established a wide presence across the country. The Fiat Group company currently has six joint ventures for different product verticals and sevenSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Telecom vendors face blacklisting if spyware is found on networkIn a bid to secure India's communications networks from attacks from across the border, the Government will blacklist any telecom equipment vendor in case malware of spyware is detected in the gear supplied to any telecom serviceSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Is India in a sweet spot?The age-old controversy on China vs India is not over. In favour of China is its export machine, the single-minded purpose of its Government and high quality infrastructure. India scores in English knowledge, IT, several world class companies andSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Triveni Engineering (Rs 89.5): SellInvestors with short-term trading perspective can consider selling the stock of Triveni Engineering and Industries. After recording a 52-week high at Rs 143 on March 22 and encountering long-term resistance around Rs 140, the stock reversedSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Gold breaches Rs 19,000Gold prices hit an all-time high of Rs 19,140/10 grams on Tuesday on fears of the Greece financial crisis impacting smaller European countries such as Hungary, Spain and Portugal. The appreciation of the dollar against the rupee also boosted goldSource: Business Line - Home Page | 9 Jun 2010 | 12:00 am Sprint says it overstated EVO launch day salesThe No 3 US wireless service provider said it sold six times more EVO phones on the launch date than it did Instinct phones from Samsung Electronics.Source: Daily News & Analysis: Money News | 8 Jun 2010 | 11:40 pm Sensex rebounds, up 66 points in opening tradeThe Bombay Stock Exchange benchmark Sensex recovered by over 66 points in the opening trade today, after two straight sessions of losses, on the back of renewed buying by foreign funds.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:39 pm May car sales up 30%New Delhi: Car sales in India posted their best May ever, rising by a third from a year ago, an industry body said on Wednesday, as rising incomes and a rapidly expanding economy offset the impact of price increases. Analysts said car demand was likely to remain strong over the next few months on improved economic outlook and easy availability of finance, and the expected normal monsoon rains could give further fillip to sales in one of the world’s fastest growing markets. The four-month annual monsoon, which is vital for farm output and rural incomes and impact demand for goods ranging from cars to televisions, hit the country’s southern coast last week as scheduled. “Consumer confidence level is high in the market and that should help the demand in the near term,” said Vijay Chugh, an automobile sector analyst with Ambit Capital. “From rural demand perspective, monsoon will be a factor.” India could maintain an 8.5% growth in 2010-11 despite the euro zone problems, provided there is a normal summer monsoon, Union finance minister Pranab Mukherjee had said on Tuesday. Domestic firms sold 148,481 cars in the month, compared with 113,810 units a year ago, data from Siam showed. It was the highest sales in May ever, the industry body said. Sales of trucks and buses, a barometer of economic activity, rose 58% to 48,580 units in May, Siam said. Total two-wheeler sales in May increased 28.66% to 9,36,555 units from 7,27,933 units in May 2009, adds PTI. Rising costs of raw materials such as pig iron and steel and prospects of a rise in interest rates are, however, concerns for the cars makers such as Maruti Suzuki and Tata Motors in India. “Because of inflation if steps are taken to control money supply that will have an impact,” Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (Siam), told reporters, after releasing the numbers. “Interest rates continue to remain stable (now). Availability of finances is absolutely not an issue.” Source: Home - Livemint.com | 8 Jun 2010 | 11:18 pm Rupee weakens by 2 paise against dollar in opening tradeThe rupee had closed 15 paise higher at 46.93/94 a dollar in previous session.Source: Daily News & Analysis: Money News | 8 Jun 2010 | 11:00 pm Sensex up 66 pts in opening tradeThe Bombay Stock Exchange benchmark Sensex recovered by over 66 points in the opening trade on Wednesday, after two straight sessions of losses, on the back of renewed buying by foreign funds.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 10:38 pm Rupee weakens by 2 paise against dollarThe Indian rupee depreciated by 2 paise to 46.95 a dollar in the opening trade on dollar demand from importers.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 10:36 pm Bharti Airtel up 6% after Zain buy completedMumbai: Shares in top cellular carrier Bharti Airtel rose more than 6% on Wednesday morning, a day after the company completed its $9 billion acquisition of Zain’s Africa operations. Shares in Bharti, which becomes the world’s fifth-biggest mobile carrier by subscribers following the deal, had ended 3.8% lower on Tuesday. Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 10:29 pm Asian stocks, euro struggle on debt worriesSingapore: Asian stocks fell on Wednesday and the euro wobbled near four-year lows after Fitch Ratings said the UK faced a “formidable” fiscal challenge, fueling concerns that Europe’s sovereign debt problems could stifle the global economic recovery. Adding to the uncertainty, US Federal Reserve officials on Tuesday gave conflicting signals on the direction of interest rates, highlighting an increasingly important split within the central bank as the US economy shows signs of slowing. Investors were also awaiting a European Central Bank meeting later in the day to see if it will announce fresh steps to ease strains from the euro zone’s debt crisis. The ECB could offer extra funds to banks and will be pressed at a news conference for details of its surprise government bond-buying program. It is also expected to publish a new set of economic forecasts for the region which are likely to signal somewhat stronger activity despite worries that debt problems and government austerity measures will sharply brake growth. Solving the debt crisis implies heavy budget cuts at a time when many analysts believe spending is needed to help keep the global recovery on track. Risk-averse investors have streamed into gold, sending prices for the precious metal to a record dollar high, on persistent fears that the euro zone debt problems will spread. “Markets hate uncertainty and at the moment you’ve got a lot of it,” said Peter Wright, a dealer at Burrell & Co in Australia. Japan’s benchmark Nikkei fell 1%, spiraling toward a six-month low as worries the global recovery was losing steam and as a stronger yen hurt major exporters such as Sony Corp, which fell nearly 2%. The Nikkei’s relative strength index has fallen to around 34, nearing the 30 level which indicates conditions are oversold. But rebounds in recent weeks have proved short-lived as wary investors quickly take profits on any rallies. Stocks elsewhere in Asia also retreated, with the MSCI ex-Japan index giving up early gains to stand 0.2% lower by late morning. Hong Kong’s Hang Seng index flitted in and out of negative territory, while South Korea’s KOSPI fell 0.5%, led by financials. European shares fell on Tuesday, hitting a near two-week closing low, after Fitch said Britain faced a “formidable” challenge to cut government borrowing and needs more ambitious plans to reduce the deficit over the medium term. US stocks rose up to 1.3% in volatile trade overnight, but investors shied away from larger companies which have significant exposure to Europe. The euro slipped to $1.1945 down 0.3% from New York trading levels but above Monday’s four-year low of $1.1876. Against the yen, it fell 0.5% from late U.S. levels to 109.05 yen after gaining 0.5% on Tuesday. “The euro decline isn’t over,” said Marc Chandler, senior strategist at Brown Brothers Harriman in New York. “What we’re seeing now is a brief respite. A rise above $1.20 would be a good chance to sell.” The pound fell after Fitch urged Britain to cut its deficit, the latest in a series of concerns expressed by rating agencies about the state of government finances in Europe. The warning followed credit downgrades of Greece, Spain and Portugal in recent months, and fresh worries this week about Hungary’s ballooning deficit and banks’ exposure to Eastern Europe as a whole. Gold firmed, hovering within sight of a record above $1,250 an ounce struck the previous day, as investors looked for safe havens from months of market turmoil. “It is mainly the fear of another slide into recession which is seeing demand for gold as a safe haven,” said Commerzbank analyst Daniel Briesemann. Valuations of global equities have come down quickly in the last several weeks, but analysts appear divided over whether the market is bottoming out. The uncertain global economic outlook could have an impact on earnings forecasts, though economists as a whole have not changed their growth predictions in a big way. Asian investors are awaiting a flurry of data from China this week after reports last month indicated growth may have peaked in the world’s third-largest economy. Though the number of property sales in big Chinese cities is decreasing, likely pointing to an easing in price pressures, other indicators do not reflect a massive slowdown in the world’s fastest growing economy or its demand for imported goods. US crude oil futures prices rose 50 cents or 0.7% to $72.49 a barrel after industry data showed US crude inventories fell more than expected last week. Source: Home - Livemint.com | 8 Jun 2010 | 10:12 pm Oil climbs towards $73 on large US stock drawSingapore: Oil rose for a third day on Wednesday, adding 0.7% after an industry report showed a larger-than-expected decline in US crude stocks, bolstering the view that a glut will dwindle as demand resurges. Inventories fell 4.5 million barrels last week, the American Petroleum Institute said on Tuesday, more than four times as much as expected. The supply report allowed the oil market to temporarily shrug off moves in equities, which continued to be mixed on Wednesday. Crude futures traders have adopted stock indices as a barometer for perceptions on risk, growth and energy demand. US crude for July delivery rose 55 cents to $72.54 a barrel at 8:32am, still down 17% from a 19-month high above $87 in early May. July ICE Brent was trading almost at parity, up 20 cents at $72.50. “The US economy is certainly in recovery mode; oil consumption seems to be recovering, with gasoline and distillate fuel demand stronger,” said David Moore, an analyst at the Commonwealth Bank of Australia. The Energy Information Administration (EIA) will publish more closely watched government statistics on US oil inventories and demand on Wednesday at 6:00pm. “The EIA data tonight is important particularly because of the large numbers we had in the API. We have to see if that is replicated in the EIA data,” Moore said. The drop in US crude inventories reported by the API was matched by an equivalent increase in product supplies. Gasoline stocks posted an unexpected increase of 1.5 million barrels and distillates, including heating oil and diesel, logged a larger-than-forecast gain of 3 million barrels. “It would be premature to say that we have seen the bottom in the market,” Moore said. “The data flow is a little bit uneven and the market still has a focus on developments in Europe. There is obviously potential for fiscal difficulties.” A report by Fitch Ratings that the Britain faced a “formidable” fiscal challenge pushed European stocks to near two-week closing lows. On Wednesday, Japan’s Nikkei average fell 1% towards a six-month low. Chinese trade data for May, including oil statistics, will be published on Thursday, followed by industrial production for the same month on Friday, with growth forecast at 17.1% in a Reuters survey, down from a 17.8% gain in April. “The Chinese data could be quite market moving,” Moore said. “If it comes out weaker than expected, that would be negative for commodities. If they come out stronger, they can give confidence” about the recovery. Source: Home - Livemint.com | 8 Jun 2010 | 10:01 pm Projects in Naxal-hit areas to get more fundsNew Delhi: The government is preparing the ground for a special development plan for districts with a strong Maoist presence, to support infrastructure projects that cannot be funded by existing development schemes. A team of 35 officials from the country’s apex planning body, the Planning Commission, has been sent to various districts to ready the schemes in coordination with district collectors and senior state government officials. “Based on their feedback, the Planning Commission will come up with a concrete plan of funding and development activities in these districts. If need be, special funding will be provided to these districts,” said a top official at the Planning Commission who did not want to be identified. The official also added the Plan panel is expected to finalize the package over the next two months and it would extend to districts hit by Maoist activity in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa and Uttar Pradesh. A team headed by Naveen Kumar, principal adviser, Planning Commission, is currently visiting Chhattisgarh, one of the worst Maoist-hit states, said a top official in the Chhattisgarh government. Naxalite outfits are currently active in 91 districts across 11 states in the country. According to another official, who too did not want to be identified, the government wants to give more attention to infrastructure development in the remotest areas. According to the initial plan, the new scheme would fund schools in remote areas, rural road connectivity—especially those which cannot be funded under the Pradhan Mantri Gram Sadak Yojana, a rural roads programme—housing for employees who work in the region and development of small townships. S.L. Rao, a former director general of the National Council for Applied Economic Research, said the idea of sending Planning Commission officials to these areas is good, but it may not yield substantial results. “What is required in these areas is a sense of empathy where the official meets the local people as also representatives of the Naxals. Besides, he evaluates the outcome of earlier planning activities and then reports on the basis on continued feedback that he receives from these people,” added Rao. liz.m@livemint.com Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 9:52 pm GM recalls 1.5 million cars for fire dangerGeneral Motors announced a recall of 1.5 million vehicles yesterday over a possible fire danger posed by the wind shield wiper fluid heating system.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 9:44 pm Quick Edit | Two World CupsIn a way, post-apartheid South Africa made a fresh start with the 1995 Rugby World Cup—a country wracked by social violence came to support a national team that had once been a hated symbol of racial prejudice. Social injustices persist in Nelson Mandela’s country that, in a few days from now, will host one of the biggest sporting spectacles in the world. Expectations of the 2010 Football World Cup helping South Africa grow have dimmed. For one, estimates of tourism, a major revenue driver, have fallen. But more striking than the economic impact of the event have been reports about organizers evicting hundreds of shopkeepers from the vicinity of match venues. At stake are corporate contracts and public relations drives. The 1995 event ended as a sign of unity and hope. As the 2010 event approaches, that uplifting symbolism of the Rainbow Nation has been sadly lacking. Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 9:42 pm AI to spruce up services, cut costsBerlin: The new chief operating officer (COO) of National Aviation Co. of India Ltd (Nacil), Gustav Baldauf, said on Tuesday the turnaround strategy for flag carrier Air India will rest on the twin pillars of cutting costs and an increasing focus on customer services. Baldauf, an Austrian and the first expatriate hired by Nacil to a key post, is no stranger to India’s civil aviation industry, having worked with the country’s largest private sector airline Jet Airways (India) Ltd as its vice-president (operations). “Air India is currently carrying out several fuel efficiency steps. I will certainly continue with that. I will give more focus on customer services. That will be one key area that will bring Air India back to black,” he said on the sidelines of the 66th annual general meeting of the International Air Transport Association (Iata) in his first interaction with the media since taking up his new job. Baldauf, who was executive vice-president (flight operations) at Austrian Airlines till recently, was granted an employment visa and work permit on Monday. On the second day in his new assignment, a confident Baldauf said he’d need three years to turn around Air India. His appointment as COO is one among a series of steps that the Indian government has taken to revive an airline that piled up a cumulative loss of Rs8,461 crore till fiscal 2009. The net loss for fiscal 2010 is estimated at Rs5,400 crore. “Apart from India’s potential, I like India and I know India. This is a big personal challenge for me. I have to take up something big in my life and make it successful,” Baldauf said. “We need to make a three-year plan for turning around Air India. We will have to put an operational and financial plan together to make a clear road map.” Arvind Jadhav, chairman and managing director of Nacil, said Baldauf will closely monitor day-to-day operations and initiate efforts to restructure routes. The recently inducted independent directors of Nacil have already met Baldauf and approved his plan of action. Anand Mahindra, vice-chairman and managing director of Mahindra and Mahindra Ltd, Federation of Indian Chambers of Commerce and Industry secretary general Amit Mitra, Ambuja Realty Development Ltd chairman Harsh Neotia and former air force chief Fali H. Major joined the airline’s board in March as part of a plan to restore the loss-making national airline to financial health. Wolfgang Prock-Schauer, former chief executive officer (CEO) of Jet Airways and current CEO of BMI (British Midland Airways Ltd), said Baldauf has sound knowledge of flight operations and a great sense of responsibility. “In fact, I had invited him to India for Jet Airways when I was CEO. He is the best among the lot,” said Prock-Schauer, who is also an Austrian national. Baldauf plans to closely work with the airline’s employees. “All information on the turnaround will be shared with the employees first before we make it public. I will also work closely with the unions,” Baldauf said. The global positioning of Air India and its potential attracted him along with his affinity for the country. “There is nothing I dislike about Air India,” he said. He doesn’t view the government as a source of disruption. “If you are asking about interference of the government, let me tell you that they wanted to turn around Air India. So they brought me. They also inducted independent directors. Therefore, we can work quicker and easier. Moreover, I am going to take care of the operational issues,” he said. Not everyone is convinced. Nawal Taneja, professor and chairman at department of aviation, Ohio State University, is one of them. According to him, unless Air India gets its act together, it will always remain in the clutches of the Indian government. It needs more strategic changes in its network, fleet, operations and planning. “It isn’t just about picking up a business leader; it’s about the government allowing him to perform. If the government picks up somebody and ties his hands, the company will suffer,” said Taneja, who has 40 years of experience in the business and has advised airlines across the world. Baldauf is aware that the pace of decision-making at Air India may be slower than at Jet Airways, where he was employed earlier. “But you would see the results. Air India’s vision is to become the brand ambassador of growth. We are in the process of putting a mission before us,” he said. The plan is to connect to capitals of various countries. Baldauf, who will submit his revival plan to the government soon, declined to divulge details. Civil aviation minister Praful Patel said the formalities of appointing Air India’s COO were complete and that “the worst was over” for the airline. P.R. Sanjai was in Berlin as a guest of Iata. Source: Home - Livemint.com | 8 Jun 2010 | 9:40 pm Mamata looks to acquire land for railway projectsKolkata: Although opposing farmland acquisition in West Bengal has paid rich political dividends for Mamata Banerjee, the railway minister now wants to acquire large tracts of land in rural areas for a slew of projects. Since Banerjee joined the United Progressive Alliance at the Centre a year ago, she has proposed to set up factories in her home state to manufacture railway coaches, wagons and locomotives, besides expansion and extension of several railway tracks. To prove that land could be acquired with consent if right compensation is paid, she has told the state government that the railways would pay a substantially higher price. In a letter sent recently to the state’s chief secretary Ardhendu Sen, the railways has said that compensation for land needed by it would be determined under the Railways Act and not on the basis of the standard formula under the British-era Land Acquisition Act, a state government official said. This implies that the railways could pay up to 60% of the market price of land as additional compensation for voluntarily surrendering land, compared with the West Bengal government’s 30%. The entire cost of acquisition would be borne by the railways, a spokesperson said. “She is trying to make a point that she isn’t opposed to land acquisition, and that she only insists on the right price being paid,” said an official of the land and land reforms department in Kolkata, requesting anonymity. “Political benefits are going to be tremendous if this works.” Banerjee’s often hostile resistance to land acquisition began in 2006 when the state government acquired 997 acres in Singur, near Kolkata, for Tata Motors Ltd’s now abandoned small car factory. Her movement against farmland acquisition for industrial projects gained momentum when the state government’s attempt in 2007 to acquire land in Nandigram for a special economic zone met with tremendous resistance from local people. Though Banerjee’s Trinamool Congress party was routed in the assembly elections in West Bengal in 2006, it staged a comeback in the 2008 village council elections, and has since been on a winning spree, trouncing the Left Front in key elections every year. Assembly elections in the state are due next year. Learning from its mistakes in Singur and Nandigram, the state government has lately been trying to build consensus on compensation ahead of acquiring land, the state’s land and land reforms minister Abdur Rezzak Mollah said. As a result, at many places the price of land has risen several times since the state government announced plans for acquisition. “Yet, we are having to abandon some acquisition plans because of resistance from local people,” Mollah said. Banerjee’s latest offer is going to make land acquisition in West Bengal very expensive, according to the state government official cited earlier. The state government builds consensus on the market price of land, which goes up during negotiations because the administration is trying to avoid conflicts, he said. “If on top of that, we had to pay 60% solatium (additional compensation), acquisitions would become so expensive that many companies may not want to set up shop in West Bengal.” Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 9:36 pm Bharti Airtel becomes fifth largest telco, seals Zain dealNew Delhi: India’s largest telecom firm Bharti Airtel Ltdsaid on Tuesday it had become the world’s fifth largest telco after closing the $9 billion (Rs42,300 crore) deal to buy the African assets of Kuwait’s Mobile Telecommunications Co., or Zain. The combined business will be 180 million customers in 18 countries and annual revenue of $12.4 billion. The deal comes when profit margins are shrinking in the Indian telecom market. Manoj Kohli, chief executive officer of Bharti’s international operations, will relocate to Nairobi next week with his team. “I have three goals in mind (for the Africa operations). Hundred million customers, $5 billion in revenues and $2 billion Ebitda (earnings before interest, taxes, depreciation, and amortization) by financial year 2012-13.” Bharti has reached a settlement with Broad Communications Ltd, the single largest shareholder in Zain Nigeria, following which its chief Oba Otudeko will be chairman of Bharti’s operations in Nigeria. “There is no extra payment made for the settlement,” Bharti chairman Sunil Mittal said, adding that the firm does not see any problem with another small shareholder, Econet Wireless Pvt. Ltd, in Nigeria. Bharti also announced $7.5 billion of long-term financing from banks at 175 basis points above the London interbank offered rate, a lending benchmark, despite tight financing conditions because of the European debt crisis. Analysts say Bharti will need to customize its “minutes factory” model to succeed in Africa. “It will be important to provide a local flavour in each market,” said Rajiv Sharma of HSBC Securities and Capital Markets (India) Pvt. Ltd in a 8 June report. Source: Home - Livemint.com | 8 Jun 2010 | 9:34 pm UN council to hit defiant Iran with new sanctionsUnited Nations: The UN Security Council is set to impose a new round of sanctions on a defiant Iran on Wednesday over a nuclear program that Western powers suspect is aimed at developing atomic weapons. The 15-nation council meets at 10:00am EDT (1400 GMT) to vote on a draft resolution that was the product of five months of talks between the United States, Britain, France, Germany, China and Russia. The four Western powers had wanted much tougher measures -- some targeting Iran’s energy sector -- but Beijing and Moscow worked hard to dilute the proposed steps. US Ambassador to the United Nations Susan Rice told reporters on Tuesday that the 10-page draft was “a strong, broad based resolution that will impose meaningful and significant new sanctions on Iran.” The draft resolution calls for measures against new Iranian banks abroad if a connection to the nuclear or missile programs is suspected, as well as vigilance over transactions with any Iranian bank, including the central bank. It also would expand a UN arms embargo against Tehran and blacklist three entities controlled by Islamic Republic of Iran Shipping Lines and 15 belonging to the Islamic Revolutionary Guard Corps. The resolution would also set up a cargo inspection regime similar to one in place for North Korea. US Defense Secretary Robert Gates said on Tuesday that individual states will likely move quickly to pass their own measures that go beyond the UN sanctions. In addition to the draft resolution is a list of 40 companies to be added to an existing UN blacklist of firms whose assets around the world are to be frozen on suspicion of aiding Iran’s nuclear or missile programs. The new blacklist, obtained by Reuters, also includes an individual, Javad Rahiqi, head of an Iranian nuclear center where uranium is processed. His assets will also be frozen and he will face an international travel ban. The focus of heated last-minute negotiations, the new blacklist on Tuesday morning contained 41 firms, including two banks. By the end of the day China had demanded the deletion of one bank, the Export Development Bank of Iran. Council diplomats predicted the resolution would pass, though it would likely get only 12 yes votes. Lebanon, they said, would probably abstain, while Turkey and Brazil were seen either abstaining or voting against the resolution. All five powers with a veto -- the United States, Britain, France, China and Russia -- are expected to vote in favor. Iran Defiant The first two Iran sanctions resolutions adopted in 2006 and 2007 passed unanimously. The council approved a third set of sanctions in 2008 with 14 yes votes and one abstention. Three rounds of punitive measures aimed at Iran’s nuclear and missile industries have hit its economy hard but failed to persuade Tehran’s leadership to halt its nuclear program or come to the negotiating table, analysts say. Instead, Iran continues to enrich uranium at increasingly higher levels, despite occasional hints of possible military action against its nuclear sites by Israel or Washington. Iran’s UN Ambassador Mohammad Khazaee, in remarks that were distributed by the Iranian mission, said the push for sanctions showed that some countries “prefer confrontation.” “In such a condition, the Islamic Republic of Iran has no choice but to react accordingly in the way it considers appropriate,” Khazaee said without giving details. An Iranian lawmaker said Tehran would reconsider its cooperation with the UN nuclear watchdog if the sanctions went ahead -- a threat Tehran has made before. Diplomats said US officials were working hard in New York to persuade Turkey and Brazil to abstain from Wednesday’s vote, but it was unclear if they would succeed. Lebanon, they say, is unable to support the resolution because the Iranian-backed Lebanese militant group Hezbollah is in the government. Turkey and Brazil last month revived parts of a U.N.-backed offer for Tehran to part with 1,200 kg (2,600 pounds) of low enriched uranium in return for special fuel rods for a medical research reactor. They say the deal removes the need for sanctions and have refused to engage in discussions on the draft resolution. The United States, Britain, France and Germany say the fuel swap deal did nothing to change Tehran’s refusal to suspend uranium enrichment in defiance of five Security Council resolutions. That defiance, Western diplomats say, has added to a growing irritation with Iran in Moscow and Beijing, which remain close trading partners with Tehran. Iranian President Mahmoud Ahmadinejad admonished Russia at a news conference in Istanbul, where he was attending a summit along with Russian Prime Minister Vladimir Putin, to take care “not to be on the side of the enemies of the Iranian people.” Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 8:47 pm Nato supply trucks attacked in PakistanIslamabad: Gunmen attacked trucks carrying supplies for Western forces in Afghanistan near Islamabad, killing five people and setting vehicles on fire in the first such attack near the Pakistani capital, police said on Wednesday. The Taliban frequently attack trucks carrying supplies for US-led foreign forces in Pakistan’s northwest and southwest bordering Afghanistan, but late Tuesday’s night attack near Islamabad was unprecedented. “Five people were killed and five wounded. They were drivers of these trucks and their helpers,” police official Naeemullah Khan said at the Tarnol area where the attack took place. Police said 10 to 12 gunmen attacked the trucks, parked at a depot in Tarnol. The assault underscores growing insecurity in Pakistan where the Taliban have unleashed a wave of suicide and bomb attacks across the country in retaliation for military offensives on their strongholds in the northwest. The US military sends 75% of supplies for the Afghan war through or over Pakistan, including 40% of the fuel for its troops. The attacks, especially in the northwestern Khyber tribal region, have forced Nato to look for alternative routes, including through Central Asia. Source: LatestNews-Home - Livemint.com | 8 Jun 2010 | 8:34 pm Anil drops case against big brotherIn yet another step towards making peace, Anil Ambani on Tuesday withdrew the Rs 10,000-crore defamation suit he had slapped on elder brother Mukesh in 2008.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 2:10 pm 3G, BWA revenues top Rs 1L crOn Tuesday, total revenues from the BWA auctions crossed Rs 34,554 crore, taking the revenue receipts from both 3G and BWA auctions to a staggering Rs 1,02,273 crore or well over three times earlier projections.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 1:55 pm Number portability by SeptemberTrai is optimistic that mobile number portability will be rolled out in September 2010. Sarma said that Trai would assess the readiness of telecom operators about the portability.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 1:54 pm ULIP row will be resolved soon: FMFinance minister Pranab Mukherjee on Tuesday said the dispute between insurance regulator IRDA and stock market regulator Sebi regarding unit-linked insurance products (ULIPs) will be resolved very soon.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 1:53 pm Gold shines at record high of $1250Prices of gold hit a record high in the international market on Tuesday, above the $1,250-an-ounce mark, as fears about weak global economic outlook led investors to tilt towards risk aversion.Source: India Business News | Business News - Times of India | 8 Jun 2010 | 1:52 pm Africa buy makes Airtel world No. 5Bharti Airtel Ltd on Tuesday acquired the Africa operations of Kuwait-based Mobile Telecommunications Co KSC, which owns the Zain brand, in 15 countries at an enterprise value of $10.7 bn (Rs 50,800 cr). Mega dealSource: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 1:37 pm Nielsen suspends provision of marketshare data to analystsThe Nielsen Company has suspended providing marketshare data to the analyst community. It, however, will continue to do so to fast moving consumer goods (FMCG) companies. The suspension may last till June 2011, after which the market research firm will reconsider its position in this regard.Source: Business Standard | Front Page Headlines | 8 Jun 2010 | 1:19 pm Bharti buys Zain Africa for $10 bnBharti Airtel, the countrys largest mobile telecom service provider, today announced completion of its deal to acquire the African assets of Kuwaits biggest phone company, Mobile Telecommunications Company, also known as Zain, at an enterprise value of $10.7 billion (Rs 50,660 crore).Source: Business Standard | Front Page Headlines | 8 Jun 2010 | 1:19 pm The other US govt standard for BhopalWe will be meticulous, we will be comprehensive, and we will be aggressive. We will not rest until justice is done, declared US Attorney General Eric Holder earlier this month, as he announced a criminal and civil investigation into the disastrous oil spill in the Gulf of Mexico.Source: Business Standard | Front Page Headlines | 8 Jun 2010 | 1:16 pm China, India to lead Asian recovery: Moody'sLed by China and India, most of the Asian economies are expected to expand this year and the next, although uncertainty over the global recovery threatens to derail growth, Moody's Analytics said today.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:54 am Pranab worried over poor credit, deposit growth & risingDespite the higher-than-anticipated GDP numbers and a rocking manufacturing sector during 2009-10, both credit as well as deposit growth were much lower at around 17 per cent, which is a cause of concern, finance minister Pranab Mukherjee said in Mumbai today.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:41 am US may aid India exportsThe United States is working out a new India-specific export control regime to ease restrictions on export of hi-tech equipment.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:28 am $2-m fake lake for summitThe Canadian government was castigated for spending huge sums to host G8 and G20 summits at the end of June, including two million dollars on a fake lake inside the media centre. The artificial lake will reportedly include canoes, trees, lounge chairs and a fake dock.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:26 am Lodha aims record towerLodha Developers on Tuesday launched the world’s tallest residential building — the 450-metre (1,450-feet) high World One — in Mumbai at a project cost of Rs 2,000 crore.Source: HindustanTimes.com - Top Business News Headlines | 8 Jun 2010 | 11:23 am S.Korea’s Samsung unveils smartphone to take on iPhoneSeoul: South Korea’s Samsung Electronics, the world’s second largest handset maker, on Tuesday unveiled a new smartphone in its home market in hopes of rivalling Apple’s iPhone. Samsung said its Galaxy S model, announced as the new iPhone 4 was unveiled in the United States, would better serve South Koreans through localised applications. It said the new model would be available to South Korean customers later this month, one month ahead of the local release of the latest iPhone, after making a successful debut in global markets. Samsung said the Galaxy S, which runs on Google’s open-source Android software, went on sale in Europe last week and received one million pre-orders. It said it had deals to supply the handset to over 100 global mobile operators. The model was first showcased at a US trade fair in March. Samsung has said it will base more than 50% of its smartphones on Android, which advocates say is a more attractive long-term proposition for developers than Apple’s closed operating system. Samsung has more than 20% of the global market for mobile phones, second only to Finland’s Nokia, but lags behind in the fast-growing smartphone segment even on its home turf. Apple has sold more than 700,000 iPhones six months after it belatedly went on sale in South Korea, after a delay caused by government concerns that its automatic locating services would breach privacy legislation. Apple launched the iPhone in 2007 and has sold more than 50 million worldwide. Source: World Business - Livemint.com | 8 Jun 2010 | 4:25 am S.Korea’s Samsung unveils smartphone to take on iPhoneSeoul: South Korea’s Samsung Electronics, the world’s second largest handset maker, on Tuesday unveiled a new smartphone in its home market in hopes of rivalling Apple’s iPhone. Samsung said its Galaxy S model, announced as the new iPhone 4 was unveiled in the United States, would better serve South Koreans through localised applications. It said the new model would be available to South Korean customers later this month, one month ahead of the local release of the latest iPhone, after making a successful debut in global markets. Samsung said the Galaxy S, which runs on Google’s open-source Android software, went on sale in Europe last week and received one million pre-orders. It said it had deals to supply the handset to over 100 global mobile operators. The model was first showcased at a US trade fair in March. Samsung has said it will base more than 50% of its smartphones on Android, which advocates say is a more attractive long-term proposition for developers than Apple’s closed operating system. Samsung has more than 20% of the global market for mobile phones, second only to Finland’s Nokia, but lags behind in the fast-growing smartphone segment even on its home turf. Apple has sold more than 700,000 iPhones six months after it belatedly went on sale in South Korea, after a delay caused by government concerns that its automatic locating services would breach privacy legislation. Apple launched the iPhone in 2007 and has sold more than 50 million worldwide. Source: Tech News - Livemint.com | 8 Jun 2010 | 4:25 am Ranbaxy launches generic version of Lipitor in South AfricaNew Delhi: Ranbaxy Laboratories said on 8 June it has launched the generic version of cholesterol lowering drug atorvastatin in South Africa under the brand Lipogen. Atorvastatin is a patented drug from Pfizer’s portfolio and is the world’s largest selling medicine under the Lipitor brand with an annual sales of more than Rs60,000 crore. “Ranbaxy is the first generic pharmaceutical company to launch a generic atorvastatin in South Africa,” the Gurgaon-based company said. The company said it has launched the drug in 10mg, 20mg, 40 mg and 80 mg strengths in South Africa through its wholly-owned subsidiary -- Ranbaxy S A. “With this launch, Ranbaxy S A becomes the only company to have an 80 mg Generic Atorvastatin, in South Africa,” Ranbaxy said. Pfizer also sells generic version of Lipitor in the South African market through a group company, Pharmacia under the brand Aspovar in 10mg, 20mg and 40 mg strengths. Atorvastatin is the second largest molecule in South Africa after esomeprazole, an anti-stomach ulcer drug and has a current market size of $26.1 million per annum, the company said while quoting IMS figure. “Lipogen is also the first generic in South Africa to carry information in blind friendly braille format on its packaging,” the company said. The company said, “Favourable reimbursement terms to encourage generic substitution have also been worked out while special distribution arrangements have been made with wholesalers and distributors to improve patient access.” Ranbaxy SA (Pty) Ltd, based in South Africa, is a wholly owned subsidiary of Ranbaxy Laboratories Limited, India’s largest pharmaceutical company. Ranbaxy became a part of Daiichi Sankyo Group in 2008 after Japan’s third largest drug maker Daiichi Sankyo bought majority stake in it for Rs22,000 crore. In 2008, Ranbaxy Laboratories and Pfizer entered into a lawsuit settlement, under which Ranbaxy had agreed not to sell generic versions of Lipitor in US until November 2011. As per the agreement, Ranbaxy got the license to sell Atorvastatin on varying dates in other seven countries including Canada, Belgium, Netherlands, Germany, Sweden, Italy and Australia. Ranbaxy, which was the first generic drug maker to challenge the Lipitor patent, was eligible for gaining exclusive marketing rights for 180 days of the drug after getting US health regulator Food and Drug Administration’ nod in US, which is also the largest drug market globally. The Ranbaxy Laboratories stock was trading at Rs422.10 on the BSE, down 0.13% from its previous close. Source: World Business - Livemint.com | 8 Jun 2010 | 4:03 am
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