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Tata Motors plans assembly unit in Sout AfricaTata Motors is looking at setting up an assembly unit in South Africa for mediumsized and small trucks, a top official said on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 8:33 am Mizuho to raise $9.6 bn in planned share offerJapan\'s No.2 bank, Mizuho Financial Group, said it would raise a slightly higherthanexpected USD 9.6 billion in a previously flagged global offering that will boost its shares outstanding by 38%.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 8:32 am Pfizer sees doubledigit sales growth in 2010: MDPhramaceutical firm Pfizer Ltd.expects \"doubledigit\" sales growth in 2010 and has launched 6 branded generic drugs till June, Kewal Handa, Managing Director, told reporters on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 8:26 am EGoM okays market driven increase in petrol priceThe Empowered Group of Ministers (EGoM) has given a nod to the market driven increase in petrol price, says Planning Commission secretary Sudha Pillai. However details are yet to be disclosed by the government.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 8:22 am RIL, RNRL sign revised gas pactReliance Industries and Reliance Natural Resource (RNRL) has signed revised gas supply master arrangement (GSMA), reports CNBCTV18. It is learnt that RNRL will approach the government for the expeditious gas allocation.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 7:33 am AIG CEO, Chairman at odds over failed AIA dealAmerican International Group\'s failed sale of its Asian life insurance unit AIA has led to increased tensions between Chief Executive Robert Benmosche and Chairman Harvey Golub, the Financial Times said, citing people close to the situation.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 7:30 am ICICI Bank sees 20% rise in FY11 home loan demandICICI Bank expects home loan demand at India\'s secondlargest lender to rise 20% in the financial year that began in April, chief executive of the bank\'s housing finance unit said on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 7:29 am ILFS Invst to close 10 realty deals in FY11ILFS Investment Managers Ltd, a unit of ILFS group, is looking at closing at least 10 realty deals by the end of the year ended March 31, 2011, a top official told reporters on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 7:29 am LIC to invest atleast Rs 60000cr in equities in FY11In an exclusive interview with CNBCTV18, N Mohanraj, ED, LIC says, LICs investment in various asset classes for the year will be a little over Rs 2 lakh crore. We will not be investing less than Rs 60,000 crore in equities.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 6:20 am 3 releases expected this year: Balaji GroupStar Plus has a new look and a new lineup in the GEC space and apparently they have managed to eek out an increase in viewership as well. Puneet Kinra, Group CEO of Balaji Group, in an interview with CNBCTV18 said that the slot rating has increased in the first week itself.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 6:13 am Petrol prices hiked by Rs 3.5, diesel by Rs 2 - NDTV.com
Source: Business - Google News | 25 Jun 2010 | 4:17 am Sensex under pressure; oil & gas outperforms - Economic Times
Source: Business - Google News | 25 Jun 2010 | 4:06 am Sensex down, markets lacklustreThe Sensex today ruled 49 points lower from its previous close in lacklustre trade. Trading in broader markets was also insipid. The 30-scrip sensitive index of the BSE, which opened at 17,705.11 points, was ruling at 17,680.89 points, 49.35 points or 0.28 per cent down from its previous close at 17,730.24 points. Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 3:56 am Petrol, diesel prices hiked - govtNEW DELHI (Reuters) – The government on Friday decided to raise state-subsidised petrol and diesel prices as high global rates and pressure to trim the budget deficit appeared to outweigh concerns about the political impact of the measures.Source: Reuters: Money News | 25 Jun 2010 | 3:33 am RNRL signs gas pact with RIL - Hindustan Times
Source: Business - Google News | 25 Jun 2010 | 3:25 am RNRL signs gas pact with RILThe Anil Ambani-promoted Reliance Natural Resources said today it has signed a revised gas supply agreement with the Mukesh Ambani-led Reliance Industries.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 3:21 am INSTANT VIEW - Govt approves mkt-driven petrol, diesel pricesMUMBAI (Reuters) – The government has decided to raise petrol and diesel prices, Oil Minister Murli Deora said on Friday, as part of a plan to move towards a market-determined fuel price regime.Source: Reuters: Money News | 25 Jun 2010 | 3:20 am Govt approves market-determined petrol prices - oil secyNEW DELHI (Reuters) – The government has decided to raise petrol prices by making them market-determined, Oil Secretary S. Sundareshan told reporters on Friday.Source: Reuters: Money News | 25 Jun 2010 | 3:15 am Monsoon to be normal: GovtNew Delhi: India’s June-September monsoon rainfall is likely to be 102% of long-term average, despite a week-long slow progress, minister of state for agriculture KV Thomas told reporters on Friday. In April, the India Meteorological Department said this year’s monsoon rains would be 98% of the long-term average. Following a ministerial panel meeting on food on Friday, agriculture secretary PK Basu also said the country was heading for a normal monsoon, after last year’s driest spell in nearly four decades. “Good news is that monsoon rains will be 102% of long-term average,” Basu told reporters. The weather office will formally release its outlook on the progress of the southwest monsoon later in the day. It will also forecast rainfalls for July and August, the crucial months for the summer-sowing season. The government, battling high inflation, heavily depends on normal monsoon rains to ease high food prices. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 3:06 am Oil companies shares rally on fuel price riseMUMBAI (Reuters) - Shares in state-run oil marketing companies rose more than 4 percent on Friday afternoon after a government decided to raise petrol and diesel prices.Source: Reuters: Money News | 25 Jun 2010 | 2:58 am Govt approves market-driven petrol, diesel pricesNew Delhi: The government on Friday decided to raise state-subsidised petrol and diesel prices as high global rates and pressure to trim the budget deficit appeared to outweigh concerns about the political impact of the measures. A panel of ministers reviewed freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas which could help reduce the fiscal deficit from the projected 5.5% of 2010-11 GDP and free up revenues for other programmes. “Of course,” said petroleum minister Murli Deora, when asked whether the government hiked petrol and diesel prices, without giving further details. In early June, the Congress-led government held off the decision after two powerful ministers from coalition parties stayed away from a ministerial panel meeting, signalling opposition to the move on fears of voter backlash. Finance secretary Ashok Chawla said this month he expects the fiscal deficit to shrink to 4.5% of GDP in fiscal year 2011 if fuel prices are deregulated and on the back of other revenues including the 3G spectrum auction. Fuel accounts for a quarter of its estimated subsidy bill of Rs1.2 trillion ($25.5 billion). Projected losses for oil firms are estimated at $24.4 billion this year, based on an average crude price of $85 a barrel. The last delay underscored the difficulties for the coalition government in pushing through financial reforms that entail painful adjustments to freer markets. Congress was handed a second term in office last year on the back of the ruling party’s pledge to share the spoils of years of economic boom and protect hundreds of millions living below the poverty line. The government backed out a few months ago on freeing up farm prices after street protests. Asia’s third-largest economy has been eyeing new ways to reduce subsidies since the failure of its 2002 attempt to get state-owned refiners to fix prices every two weeks in step with global rates. Rival Asian giant China by contrast abandoned similar fuel price subsidies from January 2009 to great effect for then-struggling refiners grappling with losses, as Indian state-owned refiners do now. Inflationary pressures Raising fuel prices would stoke inflationary pressures, already at levels uncomfortable enough for voters to slam Congress in recent municipal elections in West Bengal. But any move to remove price controls will help Reliance Industries, which operates the world’s biggest refining complex but exports most products as the local market is dominated by state firms that sell cheap fuel, helped by government subsidies. India’s food inflation accelerated in mid-June and further inflationary pressures could lead the central bank to raise interest rates ahead of a 27 July policy review. Finance minister Pranab Mukherjee said earlier this week he believed a strong harvest following a normal monsoon would tame food prices. Union agriculture ministry officials on Friday gave their most optimistic forecast yet for the annual rains -- which irrigate 60% of the country’s farms -- saying the June-September rainfall would likely be 102% of the long-term average. Source: Home - Livemint.com | 25 Jun 2010 | 2:53 am Reliance Industries, Reliance Natural sign revised gas pactMUMBAI (Reuters) - Anil Ambani's Reliance Natural Resources has signed a revised gas supply agreement with energy major Reliance Industries, controlled by his brother Mukesh, the companies said, sending Reliance Natural shares up more than 6 percent.Source: Reuters: Money News | 25 Jun 2010 | 2:43 am Mukesh, Anil Ambani reach revised gas supply agreementArmed with the new agreement, the Anil Ambani-led RNRL would now move the government seeking allocation of gas to its power plants, including its upcoming projects in Dad ri, Uttar Pradesh.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 2:42 am GIC defers preferential funding in India's Fortis - Reuters
Source: Business - Google News | 25 Jun 2010 | 2:40 am Hitachi, GE in talks to change alliance structure - WSJTOKYO (Reuters) - Hitachi Ltd, Japan's biggest electronics maker, is in talks with General Electric to change the ownership structure of their nuclear power alliance, the Wall Street Journal reported on Friday.Source: Reuters: Money News | 25 Jun 2010 | 2:37 am India gold buying remains slack for 2nd dayMUMBAI (Reuters) - India gold buying remained slack on Friday as prices edged higher tracking overseas leads, with a stronger rupee, which makes the dollar-denominated yellow metal cheaper, acting in support, dealers said.Source: Reuters: Money News | 25 Jun 2010 | 2:36 am Monsoon rains to be normal: minNEW DELHI (Reuters) - India's June-September monsoon rainfall is likely to be 102 percent of long-term average, despite a week-long slow progress, Junior Farm Minister K.V. Thomas told reporters on Friday.Source: Reuters: Money News | 25 Jun 2010 | 2:15 am Economic recovery fragile, says ManmohanNew Delhi: As he left for the G-20 Summit in Toronto, Prime Minister Manmohan Singh on Friday cautioned that the global economic recovery is “still fragile and uneven” and asked world leaders to calibrate exit strategies in the light of growing concerns over expansionary fiscal policies. “We need investment and capital flows, as well as an open and rule based trading system that does not succumb to protectionist tendencies,” Singh said in a departure statement. Singh will be attending the two-day Summit from Saturday during which he will also have talks with US President Barack Obama and other leaders. The challenges before the Toronto Summit were three-fold, he said. These would be to ensure that global economic recovery is durable, balanced and sustainable; to calibrate exit strategies in the light of growing concerns over expansionary fiscal policies; and to focus on medium and long-term structural issues relating to governance issues. “As the Indian economy grows and further integrates with the international system, we have an increasingly direct stake in all these matters,” he said, adding to meet “our ambitious development targets it is necessary that the global economy continue to recover in a stable and predictable manner.” Singh said the coordinated policy actions taken by the G-20 countries since November 2008 have not only helped to prevent a crisis of the type the world saw in the 1930s but also contributed to global economic recovery. “This is a sign of the G 20’s success. At the same time, we have to be conscious that the recovery is still fragile and uneven. New worrying signs have emerged in the Euro zone,” he said. On the margins of the Summit, Singh would hold separate meetings with Obama, French President Nicolas Sarkozy, British Prime Minister David Cameron and Japanese Prime Minister Naoto Kan. He would hold bilateral talks with Canadian Prime Minister Stephen Harper when the two sides are expected to sign a deal providing for cooperation in the field of civil nuclear energy, paving the way for supply of uranium and cooperation in research, development, waste management and radiation safety. Singh’s delegation includes deputy chairman of Planning Commission Montek Singh Ahluwalia, his sherpa in the summit, national security adviser Shivshankar Menon, finance secretary Ashok Chawla and other officials. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 2:14 am Not in talks with Reliance for 3G services: MTNL - India Infoline.com
Source: Business - Google News | 25 Jun 2010 | 1:57 am Campaigners dismiss Bhopal compensation as insufficient - BBC News
Source: Business - Google News | 25 Jun 2010 | 1:50 am G8/G20 summits security map - BBC News
Source: Business - Google News | 25 Jun 2010 | 1:50 am India to get more rains than earlier predicted: agri secyNew Delhi: Despite the delay in advance of monsoon, India is expected to get more rains this season than earlier predicted by the weather office. As per an update to the monsoon forecast of India Meteorological Department (IMD), rains in the June-September season will 102% of the long period average. “It will be 102%,” agriculture secretary P K Basu told reporters when asked about the quantum of rainfall the country would receive this season. In April, the IMD had said that the country would receive 98% rains of the long period average (LPA). The LPA, at 89 cm, is the mean rainfall received by the country over a period of 50 years. India had received 11% less rains than normal for the 1-23 June period even as south-west monsoon, which has been virtually stationary for the past week, showed signs of advancing northwards. The weather office said that the country received 97.4 mm rainfall for the 1-23 June period as against the normal levels of 109.6 mm. However, weather scientists have said that there was no need for alarm as there was still hope for improvement in rainfall across the country. The southwest monsoon, which is nearly 10 days behind its normal schedule over north India, is expected to strengthen with the formation of a low-pressure area in the Bay of Bengal. Since their onset on 31 May, monsoon rains have made staggered progress and stopped in the tracks due to cyclone ‘Phet’, delaying their advance by at least 10 days to the breadbasket northern region, as well as central and northwestern parts of the country which mainly grow oilseeds. Source: Home - Livemint.com | 25 Jun 2010 | 1:44 am Rupee edges up; shares trim fallMumbai: The Indian rupee edged higher in afternoon trade on Friday as domestic shares shed most of their early losses while some weakness in the dollar against major currencies also helped. At 1pm, the partially convertible rupee was at Rs46.43/44 per dollar, above its previous close of Rs46.49/50. It has traded in a band of Rs46.4250 to Rs46.60 so far in the day. The index of the dollar against six majors was down 0.08%, while local shares were trading just 0.26% lower. They had been down as much as 0.8% earlier. Dealers said the rupee was closely mirroring moves in the share market and the dollar. “Month-end dollar buying by importers and subdued global risk sentiment is likely to keep the INR offered today. However, some bit of USD weakness could place a cap on the USD/INR pair,” economists at HDFC Bank said in a daily note. “We expect the INR to trade in a tight range with a slight depreciation bias,” they added.The rupee seesawed on Friday mirroring the dollar’s moves versus major currencies, while losses in domestic shares maintained a downward bias on the Indian unit. Source: Home - Livemint.com | 25 Jun 2010 | 1:44 am GIC defers preferential funding in Fortis HealthcareNEW DELHI/SINGAPORE (Reuters) - Hospital operator Fortis Healthcare said the Government of Singapore Investment Corp (GIC) had decided to defer a preferential investment but the sovereign wealth fund will evaluate participating in broader fund raising by Fortis.Source: Reuters: Money News | 25 Jun 2010 | 1:32 am Fuel goes costlier; petrol up by Rs 3.50, diesel by Rs 2The government today decided to decontrol petrol prices and also hiked the rates for diesel, kerosene and cooking gas. Petrol price is now up by Rs 3.50, diesel by Rs 2 and LPG by Rs 35 per cylinder. Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 1:08 am Govt to review fuel price hike; fiscal worries weighThe government will decide on Friday whether to raise state-subsidised fuel prices, with high global rates and pressure to trim the budget deficit expected to outweigh concerns about the political impact of the measure.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 12:54 am Rupee to trade weak Karvy - Moneycontrol.com
Source: Business - Google News | 25 Jun 2010 | 12:42 am IL&FS Investment to close at least realty 10 deals in FY11Mumbai: IL&FS Investment Managers Ltd, a unit of IL&FS group, is looking at closing at least 10 realty deals by the end of the year ended 31 March 2011, a top official told reporters on Friday. “As of now we have done 30 deals, that is in the last three years. We are looking at closing at least another 10 deals by the end of the year,” Shahzaad Dalal, vice chairman, IL&FS Investment Managers, said on the sidelines of a CII conference. IL&FS Investment has a realty fund known as IL&FS Realty Fund, which has a corpus of $1.6 billion, of which it has already disbursed $1.2 billion. “We can raise further funds as and when we disburse of the existing corpus. We are seeing an uptake in the realty sector, while the prices have remained steady,” Dalal said. IL&FS also has an infrastructure fund of around $660 million. IL&FS Investment Managers shares were up 0.23% at Rs44 in a weak Mumbai market. Source: Home - Livemint.com | 25 Jun 2010 | 12:42 am Air France to cut 4,400 jobs by 2013Air France will lay off its 4,391 employees by March 2013, French business daily La Tribune reported on Thursday. Based on a work committee report of the company, jobs would be reduced in three phases - 2,436 jobs will be cut in 2010-2011, 834 in 2011-2012 and 1,121 staff will be laid off in 2012-2013. Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 12:23 am Reverse mortgage unlocks income potential of a property - Economic Times
Source: Business - Google News | 25 Jun 2010 | 12:22 am iPhone 4 faces reception problems; Apple guides to fixShortly after iPhone 4 made world debut, users began complaining about reception issues. Now, Apple has finally come to the users' rescue. Their answer – You are holding it in the wrong way. Deconstructing iPhone 4Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 12:04 am Day Trading GuideExperiencing selling pressure around Rs 900, the stock fell two per cent in the last trading session. We recommend a sell with tight stop at Rs 895Source: Business Line - Home Page | 25 Jun 2010 | 12:00 am Germany endangering EU recovery, warns SorosIf your Greek mythology is a bit rusty, here's a little refresher about the villain Procrustes, the son of Poseidon with a predilection for inviting travellers to rest in his iron bed and doing whatever it took to fit in it – whether thatSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am KPIT Cummins Infosystems (Rs 143.4): BuyWe recommend a ‘buy' in the stock of KPIT Cummins Infosystems from a short-term perspective. Following a medium-term corrective downtrend from the stock's January 2010 peak of around Rs 140, it found support at Rs 90 in late May, which is aSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am IPL 4: Franchise owners want all players put on auctionTwo months after the suspension of the Indian Premier League Commissioner, Mr Lalit Modi, the top brass of the Board of Control for Cricket in India (BCCI) and the 10 IPL team owners met here for the first time on Thursday. The idea was to chalkSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am Service tax on domestic flights from July 1Domestic and international flights from India will become a little more expensive from JulySource: Business Line - Home Page | 25 Jun 2010 | 12:00 am Alstom close to deal with BHEL, Nuclear PowerFrench power equipment major Alstom, the turbine supplier to a third of the nuclear stations worldwide, is on track for making inroads into the Indian nuclear equipmentSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am RIL closes deal for Texas shale gasReliance Industries announced it has acquired a 45 per cent stake in the Eagle Ford shale gas fields, controlled by Texas-based Pioneer NaturalSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am ING exits Kotak BankDutch financial services company ING sold its entire stake of over 3 per cent in Kotak Mahindra Bank in a bulk deal on the National Stock Exchange for Rs 801.3Source: Business Line - Home Page | 25 Jun 2010 | 12:00 am GMR Infra bags Male airport expansion projectGMR Infrastructure Ltd announced on Thursday that it has won the bid to build, operate, modernise and expand the Male International AirportSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am SEBI to come out with working paper on selling practices of MFsSEBI will bring out a working paper on mis-selling practices prevalent in the mutual fund industry, said Mr K.N. Vaidyanathan, Executive Director of SEBI, on the sidelines of the CII summit on Mutual FundsSource: Business Line - Home Page | 25 Jun 2010 | 12:00 am Lawmakers near breakthrough in Wall St billLarge financial firms might have to pay a tax of roughly $19 billion, spread out over several years, to cover the cost of the bill, said Democratic Representative Barney Frank, who is chairing the panel.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 11:49 pm Europe drags global takeovers to six-year slumpGlobal merger and acquisition activity in 2010 is off to its worst start in six years, and with economic uncertainty and a sovereign debt crisis in Europe, the second half could be just as disappointing.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 11:43 pm Toyota chief makes less than Nissan, Honda CEOsTokyo: Toyota Motor chief Akio Toyoda’s pay package was below ¥100 million ($1.1 million) last year, less than what his peers at Honda Motor and Nissan Motor made, securities filings showed. Toyoda, grandson of company founder Kiichiro Toyoda, was not among the four Toyota executives whose total compensation in the year to March exceeded ¥100 million. Listed Japanese companies must reveal executive pay above ¥100 million starting this year. Toyoda, whose pay was not disclosed, owns nearly 4.6 million Toyota shares, worth ¥14.6 billion at Thursday’s close. Toyota’s best-paid executive was chairman Fujio Cho, with ¥132 million, followed by Toyota Motor North America president Yoshimi Inaba, in the limelight this year when he testified before US Congress over the company’s recall scandal. Toyota co-vice chairmen Katsuaki Watanabe and Kazuo Okamoto made ¥114 million and ¥108 million, respectively. The other 34 board members, including Toyoda, made an average ¥27.9 million ($311,300). Among other Japanese auto executives, Honda Motor Co CEO Takanobu Ito took home ¥115 million as the sole executive at Japan’s No.2 automaker making the required disclosure. About a third of that came from Honda’s R&D unit, which he also headed until the end of March. Nissan Motor Co paid its CEO, Carlos Ghosn, ¥890 million, making him one of the best-paid executives in Japan as well as the global auto industry. Source: Home - Livemint.com | 24 Jun 2010 | 11:42 pm GIC defers preferential investment in FortisNew Delhi: Fortis Healthcare said the Government of Singapore Investment Corp. (GIC) had decided to defer a preferential investment but the sovereign wealth fund will evaluate participating in broader fund raising by Fortis. Fortis, pitted against Malaysian state fund Khazanah for control of Singapore hospital chain Parkway Holdings, will have to offer more than $2.3 billion to buy all of Parkway. In a statement on Friday, the Indian firm, which already holds roughly 25% of Parkway said GIC remains committed to Fortis through its substantial investment in Fortis’ convertible bonds. GIC declined comment. “The statement doesn’t necessarily mean GIC is committed to the cause of Fortis,” said Ranjit Kapadia, an analyst at Mumbai-based HDFC Securities. “GIC may not be willing to pay a premium of 11% on the current market price of Fortis and that may have led to the deferment of allotment.” Fortis, controlled by Indian billionaire brothers Malvinder Singh and Shivinder Singh, had earlier agreed to allot shares worth Rs3.8 billion ($82 million) to GIC. Fortis also said it had approved the conversion of warrants into shares totaling Rs13.42 billion. These warrants were issued last year with a rights issue. Fortis had wanted to build a controlling stake in Parkway after buying roughly 25% holding before Khazanah made a surprise $835 million offer last month to lift its stake from 23.5% to 51.5%. Singapore’s securities regulator has given Fortis until 30 July to say whether it intends to make a full offer for Parkway. Fortis had previously said it was keeping all options open on Khazanah’s offer for Parkway. Source: Home - Livemint.com | 24 Jun 2010 | 11:37 pm Markets fall 0.5%, financials dropMumbai: Indian shares fell on Friday with financials leading the losses in tandem with world markets on expectations of tighter financial regulation ahead of the weekend G20 meeting and uncertainty about the global economic recovery. By 11:21am, the 30-share BSE Index was trading down 0.5% at 17,641.47 points, with two-thirds of its components declining. “The state of affairs overseas are pretty confusing. We do not know if the worst is over for Europe,” Manish Sonthalia, who manages $200 million of assets at brokerage Motilal Oswal said. Foreign funds have invested around $1.7 billion so far in June and helped the BSE index rise 4% in the period, but traders were wary about the outlook because of uncertainties in the euro zone and elsewhere. In May, foreigners had pulled out $2 billion in the wake of fiscal troubles in Europe. Differences among G20 leaders ahead of a summit in Toronto over how to secure the economic recovery caused investor concern, particularly with leading indicators reflecting a slowdown ahead. Leading lender State Bank of India dropped 0.9%, while rivals ICICI Bank and HDFC Bank were down 1.7% each. The financials were also weighed down after data on Thursday showed food inflation in Asia’s third-largest economy accelerated in mid-June, maintaining pressure on the central bank to tighten monetary policy at a faster pace. Energy giant Reliance Industries, which has the highest weight on the Sensex, was down 0.4% at Rs1,046.90. IT bellwether Infosys Technologies shed 1.1% after rising 1.8% over two previous sessions. Metal makers were trading lower as London copper futures fell. Non-ferrous metals producer Sterlite Industries and aluminium maker Hindalco dropped 2.2% and 0.9% respectively. Tata Steel, the world’s eighth-largest steelmaker by output, declined 0.9%. “On the domestic front, the situation is not worrying. Monsoon is a bit below normal but hopefully things should improve,” Sonthalia said. Monsoon rains, vital to India’s trillion-dollar economy, were 21% below normal in the week to 23 June, reflecting slow progress since the season began in June. Still, market participants are upbeat on the outlook for the rest of the year because of a pick-up in economic growth. The BSE index should gain 7% to 19,000 points by the end of 2010 from Thursday’s close, the median estimate in a Reuters poll of 20 market participants showed, while 17 forecast it rising over 18% by the end of June 2011 to 21,000. In the broader market, losers almost equalled the number of gainers on volume of 154 million shares. The 50-share NSE index down 0.6% at 5,291.10. Source: Home - Livemint.com | 24 Jun 2010 | 11:32 pm G8 nations to take stock of development needsTORONTO (Reuters) - Rich countries came up short on fund-raising promises for poor nations and will meet on Friday to figure out how to direct aid resources at a time when their own budgets are squeezed.Source: Reuters: Money News | 24 Jun 2010 | 11:28 pm Different possibilities of outcome, If India does reform its refined fuel policyThe government on Friday will once again grapple with the political hot potato of deregulating fuel prices, seeking a way to improve its financial health as it tries to shield its 1.2 billion citizens from high prices.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 11:28 pm Goldman Sachs reclaims top spot in global M&ALondon: Goldman Sachs reclaimed the top spot for mergers and acquisitions advice in the first half of 2010, underlining the Wall Street giant’s resilience even as it battles US civil fraud charges. With global dealmaking still subdued, Goldman’s advisory role on nearly $190 billion of transactions allowed it to retake the M&A crown from Morgan Stanley, which last year bested its arch-rival for the first time since 1996. Preliminary data from Thomson Reuters, released on Friday, showed global announced M&A hit $976 billion in the year to 22 June, in line with last year’s subdued levels. Goldman worked on five of the year’s 10 largest deals, more than any rival except Morgan Stanley, advising American International Group Inc’s American Life Insurance Co Inc (ALICO), Coca-Cola Co, Schlumberger Ltd, Novartis AG, and Allegheny Energy Inc. M&A rankings are typically based on relationships built up over years, and deals that can take many months to craft. Still, the recovery is welcome news for Goldman as it battles the worst blow to its reputation in decades: an April charge from the Securities and Exchange Commission of civil fraud over a subprime mortgage-linked security. Goldman denies any wrongdoing, but the episode has led lawmakers and others to query its commitment to a long-cherished principle of putting clients’ interests first. “A lot of people are surprised by Goldman’s resilience, particularly those of us in the boutique world whose marketing is based on the fact we give independent, unbiased advice,” said Philip Keevil, a senior partner at Compass Advisers. “But what it comes down to is the strength of the brand -- no board of directors, no CFO ever gets condemned for hiring Goldman Sachs,” said Keevil, a former head of international M&A at Salomon Brothers and head of European M&A at Citigroup. Goldman has mounted an aggressive effort to retain clients who might be spooked by the SEC allegation that Goldman failed to inform a client about a short-seller’s role in packaging a subprime mortgage-linked security. “Goldman would still like you to believe the firm is run by Gus Levy or John Whitehead, who was famous for saying, ‘Put the client first and the firm second.´ But now it seems like everybody is a (trading) counterparty,” Keevil said. “However, if you’re prepared to accept that, they do an incredible job.” Goldman, whose M&A business has been led by London-based US banker Gordon Dyal since 2004, declined to comment on its league-table standing. A London-based head of M&A, who declined to be identified while discussing a rival, said Goldman’s legal difficulties simply reflected wider pressure on the industry and would not meaningfully hurt its advisory business. “They are great professionals, they are a tough competitor and I don’t expect them to go anywhere,” this banker said. Murdoch Among the other big Wall Street banks, advice to Rupert Murdoch’s News Corp on its $12 billion move to take full control of British satellite broadcaster BSkyB helped JPMorgan Chase & Co claim top spot for European announced M&A. JPMorgan ranked third worldwide, as it did last year, while Bank of America Merrill Lynch stood sixth. Germany’s Deutsche Bank, whose M&A business is run from London by US banker Brett Olsher and Norwegian Henrik Aslaksen, advanced to fourth place from eighth. It leaped to 4th from 18th place in US M&A, helped by advice to telephone company CenturyTel on its $22 billion takeover of peer Qwest and advice to MetLife Inc on the $15.5 billion takeover of ALICO. Keefe, Bruyette and Woods analyst Matthew Clark said Deutsche Bank emerged from the financial crisis as a “relative winner” in reputational terms, and has made a sustained effort to boost market share in corporate finance. Although bankers cautioned against drawing strong conclusions from a thin market in which a few key deals can lead to big swings in rankings, considerable movement was evident elsewhere in the league tables. Despite a role in the year’s biggest deal -- Mexican billionaire Carlos Slim’s consolidation of his telecoms empire via America Movil -- Citigroup fell to seventh place globally from fourth a year earlier. Lazard, which enjoyed a big role on Kraft-Cadbury last year, also dropped, to 10th from sixth, while UBS and Barclays Capital claimed top-10 spots after ranking 12th and 11th, respectively, for the first half of 2009. Source: Home - Livemint.com | 24 Jun 2010 | 11:24 pm Goldman Sachs reclaims top spot in global M&ALondon: Goldman Sachs reclaimed the top spot for mergers and acquisitions advice in the first half of 2010, underlining the Wall Street giant’s resilience even as it battles US civil fraud charges. With global dealmaking still subdued, Goldman’s advisory role on nearly $190 billion of transactions allowed it to retake the M&A crown from Morgan Stanley, which last year bested its arch-rival for the first time since 1996. Preliminary data from Thomson Reuters, released on Friday, showed global announced M&A hit $976 billion in the year to 22 June, in line with last year’s subdued levels. Goldman worked on five of the year’s 10 largest deals, more than any rival except Morgan Stanley, advising American International Group Inc’s American Life Insurance Co Inc (ALICO), Coca-Cola Co, Schlumberger Ltd, Novartis AG, and Allegheny Energy Inc. M&A rankings are typically based on relationships built up over years, and deals that can take many months to craft. Still, the recovery is welcome news for Goldman as it battles the worst blow to its reputation in decades: an April charge from the Securities and Exchange Commission of civil fraud over a subprime mortgage-linked security. Goldman denies any wrongdoing, but the episode has led lawmakers and others to query its commitment to a long-cherished principle of putting clients’ interests first. “A lot of people are surprised by Goldman’s resilience, particularly those of us in the boutique world whose marketing is based on the fact we give independent, unbiased advice,” said Philip Keevil, a senior partner at Compass Advisers. “But what it comes down to is the strength of the brand -- no board of directors, no CFO ever gets condemned for hiring Goldman Sachs,” said Keevil, a former head of international M&A at Salomon Brothers and head of European M&A at Citigroup. Goldman has mounted an aggressive effort to retain clients who might be spooked by the SEC allegation that Goldman failed to inform a client about a short-seller’s role in packaging a subprime mortgage-linked security. “Goldman would still like you to believe the firm is run by Gus Levy or John Whitehead, who was famous for saying, ‘Put the client first and the firm second.´ But now it seems like everybody is a (trading) counterparty,” Keevil said. “However, if you’re prepared to accept that, they do an incredible job.” Goldman, whose M&A business has been led by London-based US banker Gordon Dyal since 2004, declined to comment on its league-table standing. A London-based head of M&A, who declined to be identified while discussing a rival, said Goldman’s legal difficulties simply reflected wider pressure on the industry and would not meaningfully hurt its advisory business. “They are great professionals, they are a tough competitor and I don’t expect them to go anywhere,” this banker said. Murdoch Among the other big Wall Street banks, advice to Rupert Murdoch’s News Corp on its $12 billion move to take full control of British satellite broadcaster BSkyB helped JPMorgan Chase & Co claim top spot for European announced M&A. JPMorgan ranked third worldwide, as it did last year, while Bank of America Merrill Lynch stood sixth. Germany’s Deutsche Bank, whose M&A business is run from London by US banker Brett Olsher and Norwegian Henrik Aslaksen, advanced to fourth place from eighth. It leaped to 4th from 18th place in US M&A, helped by advice to telephone company CenturyTel on its $22 billion takeover of peer Qwest and advice to MetLife Inc on the $15.5 billion takeover of ALICO. Keefe, Bruyette and Woods analyst Matthew Clark said Deutsche Bank emerged from the financial crisis as a “relative winner” in reputational terms, and has made a sustained effort to boost market share in corporate finance. Although bankers cautioned against drawing strong conclusions from a thin market in which a few key deals can lead to big swings in rankings, considerable movement was evident elsewhere in the league tables. Despite a role in the year’s biggest deal -- Mexican billionaire Carlos Slim’s consolidation of his telecoms empire via America Movil -- Citigroup fell to seventh place globally from fourth a year earlier. Lazard, which enjoyed a big role on Kraft-Cadbury last year, also dropped, to 10th from sixth, while UBS and Barclays Capital claimed top-10 spots after ranking 12th and 11th, respectively, for the first half of 2009. Source: World Business - Livemint.com | 24 Jun 2010 | 11:24 pm Pray for rain or pay more for milk, food - Daily News & Analysis
Source: Business - Google News | 24 Jun 2010 | 11:21 pm BP shares down, spill-related legal battles rageThe Gulf of Mexico oil spill entered its 67th day on Friday with BP's New York share price at year lows and bad weather looming that could hamper clean-up and containment efforts.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 11:16 pm Sensex opens 92 points lower on selling pressureThe 30-share index, which had lost 25.70 points in the previous session, opened 91.64 points, or 0.51% lower, at 17,638.60 points.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 11:08 pm Govt debates fuel price hike, fiscal worries weighNew Delhi: The government will decide on Friday whether to raise state-subsidised fuel prices, with high global rates and pressure to trim the budget deficit expected to outweigh concerns about the political impact of the measure. A panel of ministers will review freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas which could help reduce the fiscal deficit from the projected 5.5% of 2010-11 GDP and free up revenues for other programmes. Oil industry officials say government allies have almost agreed to raise petrol prices by more than Rs3 a litre, but hikes in diesel, kerosene and cooking gas may he halted due to opposition from parliamentary allies of the government. In early June, the Congress-led government held off the decision after two powerful ministers from coalition parties stayed away from a ministerial panel meeting, signalling opposition to the move on fears of voter backlash. Finance secretary Ashok Chawla told Reuters this month he expects the fiscal deficit to shrink to 4.5% of GDP in fiscal year 2011 if fuel prices are deregulated and on the back of other revenues including the 3G spectrum auction. Fuel accounts for a quarter of its estimated subsidy bill of Rs1.2 trillion ($25.5 billion). Projected losses for oil firms are estimated at $24.4 billion this year, based on an average crude price of $85 a barrel. The meeting of the ministers is scheduled to start at 1pm. The last delay underscored the difficulties for the coalition government in pushing through financial reforms that entail painful adjustments to freer markets. It backed out a few months ago on freeing up farm prices after street protests. Inflationary pressures Raising fuel prices would stoke inflationary pressures, already at levels uncomfortable enough for voters to slam Congress in recent municipal elections in the eastern state of West Bengal. India’s food inflation accelerated in mid-June and further inflationary pressures could lead the central bank to raise interest rates ahead of a 27 July policy review. The panel of ministers include two members from largest coalition allies Trinamool Congress and Dravida Munnetra Kazhagam (DMK), who face crucial state elections next year and would likely try to soften any unpopular hike. Both had opposed an increase in motor fuel prices in February. Any move to remove price controls will help Reliance Industries, which operates the world’s biggest refining complex but exports most products as the local market is dominated by state firms that sell cheap fuel, helped by government subsidies. The oil ministry wants to free up petrol prices, gradually hike diesel rates to market levels and has recommended a small increase in the price of kerosene, used for lighting by the poor, and in cooking gas. Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 11:06 pm Sensex opens 92 points lower on selling pressureThe Bombay Stock Exchange benchmark Sensex today opened over 91 points lower on selling triggered by weak global cues, with metal and financial sectors leading the fall.Source: HindustanTimes.com - Top Business News Headlines | 24 Jun 2010 | 11:02 pm Queen’s Baton Relay reaches IndiaAmritsar: Starting the 100-day countdown to this year’s Commonwealth Games, the Queen’s Baton Relay arrived in India from Pakistan through Wagah Border on Friday. Chairman of the CWG Organising Committee Suresh Kalmadi, received the baton from Pakistan Olympic Association President Lt. Gen Syed Arif Hassan at the international border, where the Commonwealth Games Federation chief Mike Fennell was also present. The QBR, which was launched by Queen Elizabeth II at the Buckingham Palace in London on 29 October last year in the presence of President Pratibha Patil, will now start a 100-day national tour which would culminate in New Delhi for the Games from 3 - 14 October. With this, the baton is nearing the end of its 190,000-km journey, covering 71 nations and territories across the world. “It’s a great day for sports in India. The baton has gone 170,000 kms all around the Commonwealth. We have received it in a very big manner,” Kalmadi said after passing the baton to a host of dignitaries including CGF CEO Mike Hooper and Olympic bronze medallist boxer Vijender Singh. “It’s a big day for India and Pakistan. It is because of Pakistan’s efforts that India got the Games and it shows that our relationship with Pakistan will improve if we concentrate on the sporting angle,” he added. Among those to whom the baton was passed on being received at around 0930 hrs at the border, were four-time world champion woman boxer M.C. Mary Kom. Kalmadi once again allayed fears about the delay in infrastructure construction that have marred the build-up to the Games. “I am grateful to Mr Fennell and Mr Hooper, who have been supporting us. This also happens to be 100 days before the Games. Let me tell you that everything is in place, including the infrastructure. Everything is on track,” he said. POA chief Hassan said the Games would help in getting rid of the hostilities between India and Pakistan. “It’s a historic moment for us. It would get rid of the hostilities of the past,” he said. Among others who were present at the relay included Punjab chief minister Prakash Singh Badal, Delhi chief minister Sheila Dikshit and a host of top politicians and bureaucrats. Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 10:57 pm RIM shares drop as BlackBerry shipments are disappointingResearch in Motion on Thursday reported subscriber and shipment figures that disappointed investors and rekindled fears that the BlackBerry maker is losing market share to Apple Inc and other rivals.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 10:31 pm US stocks sink on worry over fragile recoveryNew York: The S&P 500 fell for the fourth straight day on Thursday as fresh signs of consumer weakness and worries about stringent financial regulation provoked investors to unload positions. The S&P 500 has lost 3.8% in four days, with retailers among the biggest decliners a day after discouraging outlooks from Bed Bath & Beyond and athletic apparel maker Nike Inc. Nike shares were down 4% at $69.95 while Bed Bath & Beyond slumped 5.7% to $39.07. The S&P Retail index slid 2.8%. “People’s general focus is on how fragile the recovery is, and recent data points are giving fodder to the double-dip camp,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Banks were pressured by fears Congress would pass stringent rules in an overhaul of financial regulations. Lawmakers were on the verge of adopting a bill that could restrict banks’ trading and investment activities, crimping their profits. JPMorgan Chase & Co fell 2.2% to $38.03 while Bank of America Corp was off 2.7% at $15.02. The KBW Bank index lost 2.2%. “We don’t know how oppressive the rules could be, and the market hates that uncertainty.” said Rob Stein, managing partner at Astor Asset Management in Chicago. The Dow Jones industrial average dropped 145.64 points, or 1.41%, to 10,152.80. The Standard & Poor’s 500 Index fell 18.35 points, or 1.68%, to 1,073.70. The Nasdaq Composite Index lost 36.81 points, or 1.63%, to 2,217.42. A drop in initial jobless claims and a rise in a gauge of long-lasting manufactured goods failed to offset recent weak economic data, and the Federal Reserve on Wednesday gave a subdued assessment about the economy’s recovery.. Chipmakers as measured by the Philadelphia semiconductor index were off 2.9%. Six semiconductor companies, including Micron Technology Inc have agreed to pay $173 million to settle US antitrust lawsuits accusing them of conspiring to keep computer chip prices artificially high. Micron shares fell 2% to $9.62. Computer maker Dell Inc fell 6.4% to $12.93. The company said it was focused on improving profitability and diversifying, but investors expressed doubts about the company’s turnaround plan. Oracle Corp rose 3.9 percent to $23.08 in extended trading on Thursday after it reported adjusted fourth-quarter earnings that beat expectations. US-listed shares of BlackBerry maker Research in Motion Ltd fell 4.7% to $55.80 after the bell as shipments and subscriber growth fell short of expectations in the first quarter. The S&P Energy index fell 2% while US-listed shares of BP Plc dropped 3.1% to $28.74 and hit a 52-week low in intraday trading. In bearish technical signs, the S&P fell below its 14-day moving average and breached the 1,083 level, a key retracement of the slide from its 2010 high in April to the year’s low on 25 May. Some expected stocks to rebound after a few days in which the market fell on higher volume, a sign of institutional selling known as distribution days. “Usually in good markets, with a few good distribution days you get a strong reversal, and we’re not seeing it,” said Steven Wolf, managing director of investments at Source Capital Group in Westport, Connecticut. “It’s almost like the market has started to give up.” Pfizer Inc fell 2.8% to $14.46 after it suspended clinical trials of its experimental arthritis drug. On the upside, Hasbro Inc gained 4.9 percent to $43.14 after a news report that the toy company was in negotiations for a possible leveraged buyout, a report the company denied. About 8.65 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well below last year’s estimated daily average of 9.65 billion. Declining stocks outnumbered advancing ones on both the NYSE and Nasdaq by a ratio of more than 3 to 1. Source: Home - Livemint.com | 24 Jun 2010 | 10:03 pm End of ULIP debate will boost investors' appetiteBuoyed by the government's decision to vest the powers of regulation of ULIPs with insurance regulator IRDA, industry players today said the move will end two months of uncertainty and boost investors' appetite for these schemes.Source: HindustanTimes.com - Top Business News Headlines | 24 Jun 2010 | 9:44 pm Asian stocks dip ahead of G20, dollar steadyHong Kong: Asian stocks on Friday slid for a fourth straight session, driven by expectations of tighter financial regulation ahead of the weekend G-20 meeting and uncertainty about the global economic recovery. Part of the weakness was attributable to profit-taking after a powerful rally in risky assets on Monday on the back of China’s decision to unpeg the yuan. However, differences among G-20 leaders ahead of a summit in Toronto over how to secure the economic recovery caused investor concern, particularly with leading indicators reflecting a slowdown ahead. “There is some form of a renewed crisis in confidence,” said Patrick Yiu, an analyst at CASH Asset Management in Hong Kong. “We’re likely to see a pullback because of this weak sentiment, but should find support soon.” Japan’s Nikkei share average led equity market declines in Asia, falling 1.5%. Index heavyweights such as Fanuc and Canon saw their shares drop 3.9% and 4.1%, respectively. A close below the 25-day moving average for the Nikkei would be a negative short-term signal for Japanese stocks. The MSCI index of Asia Pacific shares outside Japan slipped 0.5%, dragged down by the technology and resource-related sectors. For the week, the index was largely unchanged. In a reversal of sectoral performance for most of the year, the industrial and materials segments, which includes mining stocks, outperformed, while IT was the biggest underperformer. Tougher rules for banks? Australian miners such as BHP Billiton were down. The industry got a boost on Thursday after a dramatic slide in support for the government, largely because of a 40% tax on mining companies, ushered into power a new prime minister for Australia. Hong Kong’s Hang Seng reversed earlier losses to trade flat, after HSBC was the biggest drag on the market, down 0.8%. Banks in the United States could face tougher curbs on trading but would be able to hold limited hedge fund positions under a proposal unveiled by Senate Democrats on Thursday. US stocks ended about 1.7% lower overnight and have dropped nearly 4% this week, underperforming European and Japanese shares by a wide margin. Retailers and banks were under pressure throughout the session. With world leaders increasingly speaking about fiscal austerity, investors have seriously questioned the implications for growth. Indeed, US new home sales plunged by a record 33% in May from April and the Baltic Exchange’s sea freight index, which is used as a leading economic indicator, was down 39% so far in June, on track for the biggest monthly decline since October 2008. Goldman Sachs economists said in a note that global growth will slow to a 4 to 4.5% pace from a 5 to 5.5% quarter-on-quarter annualised pace in the first half in the second half. Currencies were hemmed into tight trading ranges on Friday, with the euro at $1.2328, well off a four-year low of $1.1875 hit on 7 June. Beijing set the yuan’s daily mid-point at the highest since the July 2005 revaluation, pushing it up 0.6% this week. However, market reaction was limited, with many traders resigned to the view that the yuan’s appreciation in the spot market will be slow and managed. Source: Home - Livemint.com | 24 Jun 2010 | 9:13 pm Bespoke algorithms, the new buzz on StreetThus, users are able to utilise their experience and improve returns, which would otherwise be affected by many market participants using similar trading programmes.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 5:47 pm After IIT and IIM, how about affordable spas?But once in a while, one comes across somebody who's been there, done that and still thought nothing of leaving the comfortable, high-paying job that the combination helped secure, for a much harder life.Source: Daily News & Analysis: Money News | 24 Jun 2010 | 5:43 pm Law threatens low-cost private schoolsHyderabad: In a small hamlet in Andhra Pradesh’s Ghatkesar district, 20km from Hyderabad, Indus Academy is one of four schools offering private education for the poor. Run by Career Launcher India Ltd’s foundation, its three single-storey buildings house around 40 children in the age group of 4-10. The walls of the school are festooned with bright-coloured pictures, and the school boasts a laptop, a television, a DVD player and plentiful study materials. But the appearance of prosperity can be deceiving. Charging as it does a student fee of less than Rs200 a month, Career Launcher is planning intensive door-to-door canvassing next year to enroll an additional 60 students—at least to recoup its Rs1.5 lakh investment on its educational tools. At the same time, three other groups are furiously developing a chain of affordable private schools, or non-government schools for poor families, in and around Hyderabad. The corporate race, which started two years ago, includes microfinance firm SKS Microfinance Ltd, a Singaporean private investor, India’s No. 2 drug maker Dr Reddy’s Laboratories Ltd, and local entrepreneurs. Click here to view a slideshow of photos of affordable private schools in and around Hyderabad  Photo: Bharath Sai / Mint Even as these entrepreneurs search for low-cost teacher training and curriculum improvements to add “high quality” to the “affordable” label, the Right to Education (RTE) Act of April 2010, which seeks to ensure primary education for all 6-14-year-olds, threatens to fracture their efforts. This law requires all schools to be government-recognized—a bribe-ridden and expensive process, costing at least Rs50,000 per school, according to school operators and policy advocates. The law also mandates higher teacher salaries. Last week, amid increasing pressure from states, Union human resource minister Kapil Sibal signalled that a committee would work on exempting poor schools from some requirements. “We are readying for a big confrontation,” says Parth Shah, president of the Centre for Civil Society, a Delhi-based policy advocacy. “Politically, the government will find it hard to close down affordable private schools. But people may have to pay higher bribes to meet higher infrastructure standards, pumping up fees and pricing out the poor.” Andhra Pradesh is known to have 18,000 such schools, according to a yet-to-be published budget schools rating report by Gurgaon-based Micro-Credit Ratings International Ltd (M-CRIL). The pilot study of 35 schools, which offers a sort of report card for parents and financiers, signals better reading skills in students attending poor-private schools but abysmal arithmetic capabilities compared with the average student’s performance in Hyderabad. To support better education, funding agencies such as the Michael and Susan Dell Foundation (MSDF) are offering computer-aided materials and financing the training of a few schoolteachers in Hyderabad and Bangalore. What will be key for these schools is whether they can continue upgrading themselves without grant money or fee increases.  But James Tooley, a British academic known for his groundbreaking 2006 study on budget private schools catalyzed by his observations in Hyderabad’s slums, believes he has an inexpensive polish for a shiny pedagogy. After nearly a decade of observing these schools under the microscope, Tooley, a professor of education policy at the Newcastle University, stepped under the lens himself last year. He set up Empathy Learning Systems, a chain of 12 low-cost schools, investing Rs65 lakh along with Mohammed Anwar, an education entrepreneur featured in The Beautiful Tree, Tooley’s 2009 book on poor-private schools. Tooley is hoping to treat two primary ailments without stretching his purse: shoddy instruction and teacher attrition. The monthly salaries of private budget-school teachers are in the Rs1,500-4,000 range, only 10-20% of government school salaries. Many private-school instructors thus switch jobs even for Rs100-200 increments, says the M-CRIL report. But teacher salaries are often the largest chunk of these schools’ expenses; keeping salaries low keeps fees low. At Empathy’s schools, detailed lesson plans are used to combat higher teacher turnover, so that new teachers can immediately fill in the shoes of their predecessors. “A low-cost teacher training model ensures that you are not investing in instructors so much that the whole system collapses when they leave,” says Tooley, whose current business interests have not diluted his reputation as a researcher. Empathy’s teaching tools and training are also offered at a monthly charge of Rs15, to teachers from the 22 competing schools in the business. This reduces its dependency on school fees, which are often paid erratically due to the irregular salaries of parents. As Anwar and Tooley look to increasing their school count next year to 15, by providing curriculum and training to 50 schools they might break even. But there’s pressure to squeeze rates even further. For teachers such as Ayub Shad of Jawahar High School, located a stone’s throw away from Hyderabad’s historical mosque Charminar, even the Rs15 rate is a tad unaffordable.  Cost challenge: Students at the Career Launcher-operated Indus Academy in Ghatkesar near Hyderabad. Over the last decade, the number of such private schools has risen to 75,000, according to a study. Bharath Sai / Mint While the parties refuse to clarify the reasons for their split, one thing is clear—the competition is intensifying. Dr Reddy’s Foundation is the latest entrant, with four Pudami—“earth” in Telugu—neighbourhood schools in and around Hyderabad, catering to around 1,000 children. The hope is that an aggregation of dispersed poor private schools into a chain run by a single management will ultimately shrink tariffs of teachers and curriculum providers, as vendors need to knock on fewer doors. But the RTE Act, with its mandate for playgrounds and kitchens in schools, may yet put the brakes on this revolution. “These businesses are striving to provide world-class education through a sustainable model, which like microfinance is not dependent on charity,” says Gurcharan Das, chairman of SKS Educational Society. “The threat from the government to close down these schools persists. How can a school in the slum have a football-field-sized playground and pay minimum salaries of Rs20,000? If they had to pay such salaries, the fees would go up fourfold.” Prashant Nanda in New Delhi contributed to this story. Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 1:45 pm RIL pays less for second shale assetWhen Reliance Industries Ltd (RIL) made its first acquisition in the shale gas space, it had seemed like it had overpaid to some extent. Shares of Atlas Energy Inc., which sold Reliance a stake in its shale gas assets, rose by 20% soon after the deal. There’s no such luck for investors of Pioneer Natural Resources Co., which has sold a stake in its Eagle Ford shale assets to RIL. The company’s shares have been flat since the deal was announced. Also See Price Tag (Graphic) In terms of the per acre valuation of the deal, RIL will be paying around 20% less compared with what it did for the Marcellus shale assets. It will have a 45% stake in the joint venture and would pay a total consideration of $1.315 billion (Rs6,075 crore) for its implied share of 118,000 acre. This translates into a valuation of $11,144 an acre. In April, when RIL entered into a joint venture with Atlas Energy for a 40% interest in the Marcellus shale formation, the deal valuation was around $14,000 per acre. The structure of both the deals is similar. RIL would make an upfront payment of $263 million in the Pioneer deal, and will contribute up to $1.05 billion towards drilling costs. In the Atlas deal, it made an upfront payment of $340 million and agreed to contribute up to $1.36 billion towards drilling costs. According to analysts, the Pioneer deal worked out cheaper for two reasons. One, Pioneer would be in need of cash, given that it posted net loss of $245.25 million for the March quarter. Secondly, an increasing supply of natural gas in the US has adversely hit gas prices. A JPMorgan report on the deal states that the deal valuation is at a 12% discount compared with the implied value of the Eagle Ford shale asset, using a long-term gas price assumption of $6.8 per mmBtu (million British thermal unit). Besides, while Pioneer will be the operator, RIL has the option to operate parts of the acreage; this will give it added experience in this new field. While the deal seems positive for RIL from a valuation perspective, the benefits from the deal will accrue only in the long term. This is perhaps why the stock didn’t react much after the announcement. On Thursday, RIL fell by 0.6% on the Bombay Stock Exchange on a day when the benchmark Sensex index declined 0.14%. Graphic by Yogesh Kumar/Mint We welcome your comments at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 1:03 pm Monsoon watchThe India Meteorological Department is expected to give a crucial, updated forecast for the monsoon on Friday. Importantly, this forecast is likely to gauge the monsoon’s performance during July, the most bountiful of the four rainy months. Across India, most states begin sowing key kharif, or summer, crops such as rice and maize around this time.  Compiled by Tanya Mehndiratta Graphics by Ahmed Raza Khan/Mint Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 12:59 pm Colgate’s cash pile limits growth in returnsColgate-Palmolive (India) Ltd’s 2009-10 report shows how it outperformed the oral-care market by holding back price hikes. Its toothpaste volumes rose by 14% during fiscal 2010, following a 13% growth in the previous fiscal, when it had followed a similar strategy. Colgate’s price realizations in the soaps, cosmetics and toiletries category rose by just 1.6% while that in the toothbrushes and shaving brushes category rose by around 5%. Though Colgate does not give a separate break-up for individual categories, since oral care contributes around 90% of sales, these numbers provide a good approximation. Despite a small increase in prices, sales growth was higher due to a volume growth of 14% in soaps, cosmetics and toiletries and 25% growth in brushes. Colgate also benefited from lower raw material costs on a per unit basis. It managed to keep other costs, such as employee and advertising costs, low. Royalty payments increased significantly, however, rising by 45% to Rs87 crore and the firm has not given any explanation as to why it has risen by nearly 1 percentage point to 4.3% of sales, compared with last year. Also See Overflowing Coffers (Graphic) Margins improved during the fiscal and consolidated net profit rose 52%. Cash generated from operations, however, rose by only 19% to Rs484 crore due to an increase in working capital. Even so, the sheer amount of cash being generated by its operations is creating a problem for Colgate. Its cash balance and loans, at Rs430 crore, account for nearly 70% of its assets. This cash lowers its asset efficiency ratios, as the interest it earns is much lower compared with returns from its business operations. After rising sharply for three years till fiscal 2009, Colgate’s return on capital employed rose by just 2 percentage points in fiscal 2010 to 157%. The figure by itself is quite impressive, but if Colgate rids itself of the excess cash, it can get even better. Indian multinational firms have limited avenues of utilizing their surplus cash, as they rarely make acquisitions. The only option is to buy back shares or return cash by way of bonus debentures. If Colgate takes either of these routes, its returns could improve further. Graphic by Yogesh Kumar/Mint We welcome your comments at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 12:53 pm IPL owners for free players marketEight of the 10 franchisees of the Indian Premier League (IPL) today rejected a proposal by the Board of Control for Cricket in India (BCCI) to allow existing teams to retain seven of their players four Indian and three foreign for next years Twenty20 tournament.Source: Business Standard | Front Page Headlines | 24 Jun 2010 | 12:51 pm Pioneer deal adds twice the punch to RIL's shale gas plansAfter picking up 40 per cent interest in the Marcellus shale gas acreage of Atlas Energy in April, Reliance Industries Ltd (RIL) on Thursday announced a $1.3-billion (Rs 6,000 crore) acquisition of 45 per cent interest in the Eagle Ford shale acreage of Pioneer Natural Resources. This is its second acquisition in two months in US shale gas assets, the former nearer the east coast and the latter in Texas.Source: Business Standard | Front Page Headlines | 24 Jun 2010 | 12:49 pm PowerGrid's new bidding norms to hit Chinese vendorsIn what could close the doors for import of Chinese equipment in power transmission, state-run Power Grid Corporation is making it mandatory for suppliers to have manufacturing facilities in India within three years.Source: Business Standard | Front Page Headlines | 24 Jun 2010 | 12:46 pm My company best companyThe following paragraph of text is reproduced from a press release dated 11 December 2000. It announced that the company in question had just been listed 22nd on Fortune magazine’s annual list of “100 Best Companies To Work For In America”: XYZ adds the “100 Best Companies to Work For in America” distinction to its “Most Innovative Company in America” accolade, which it has received from Fortune magazine for the past five years. The magazine also has named XYZ the top company for “Quality of Management” and the second best company for “Employee Talent”. The press release also said: The Fortune survey is based primarily on feedback from employees, who were randomly selected to fill out a 57-question survey... The remaining... was based on a culture audit and a detailed human resources questionnaire. The identity of this “XYZ” I will disclose later in this edition of Cubiclenama. But first I want you to do some soul searching. How impressed are you by the press release? Does it make you want to drop everything you are doing now, pick up your laptop, run to the conference room and fire away a resume, accompanied by a sporadically fictitious covering letter? Perhaps you are already looking for contacts in XYZ on LinkedIn.com? The enterprising among you may have already printed out XYZ’s Wikipedia profile so that you can impress during interviews: “Good. Finally, do you have any questions to ask us Mr Vadukut?” “Indeed. I have many. (Casually peeks at Wikipedia printout.) Firstly, how successful was your decision to focus on the telecom segment of your business in 2007 citation needed?” Or are you, like me, laughing a guttural cynical laugh? Every few months you suddenly see an advertisement by a company stating that, after a rigorous research exercise conducted by a survey company of virginal virtue, the company is now officially India’s 12th most sought after employer. Or the third most exciting place to work in, or the most preferred destination for MBAs, or top ranker when it comes to “People Equity and Talent Leveraging” in the IT industry. Such triumph usually leads to two things. First, many of these companies, believing that this announcement has fundamentally changed their positioning in the labour market, rush to hire from business schools. The company prints extravagant posters, T-shirts, mouse pads, bandanas and other youthful merchandise in order to “connect” with the kids, and communicate the company’s new status. They finally fly down a huge interview panel, to handle the barrage of brainwashed applicants, and wait. On the day of reckoning, dozens of enthusiastic students rush to the company’s interview rooms, then past it, and up the staircase to the McKinsey and Co. panel upstairs. This is because I don’t think anyone, except maybe the company itself, takes these rankings seriously. (In fact, does anyone take any of the hundreds of survey results that come out every day seriously? Do you really care for the safest city, worst airport, saddest people or blandest national foods? As long as these surveys don’t portray India in a negative light, I think they should be fully ignored.) What reiterates this futility nicely is the other thing that happens after such announcements. Soon after the results of the survey are announced, news websites and blogs post reports. And then all hell breaks loose. Disgruntled employees descend in hordes. And leave comments. “Best company? HA HA HA. It is worst company. There is a manager in Tuticorin in this same company who is purposefully trying to prevent the assistant manager from getting bonus and promotion. It is a violation of human rights. I don’t know this person directly, but his friend told me. Fraud survey! Poor fellow’s name is S. Saravanan. He doesn’t know me.” Supposed employees will go on to explain in detail how the survey is make-believe, and how their company is really a sweatshop run by the Devil himself, where lunch is old socks, salary is paid in tuber vegetables and the restroom is a window. So given that no one takes these surveys seriously, how do you really, accurately measure up an employer? Most career advice websites indicate that you should be talking to employees themselves. Anything else, including Googling or surveys, are poor short cuts. Also, someone once told me that the state of a company’s lobby itself could tell plenty. Unwatered plants, trophies more than five years old and any pictures of the proprietors on the wall, I was told, all prescribed immediate escape. Surely you have some personal short cuts for employer selection. Kindly share them. Email ID below. Which leaves us with one question. Which was that XYZ company? Enron. Cubiclenama takes a weekly look at the pleasures and perils of corporate life. Your comments are welcome at cubiclenama@livemint.com To read Sidin Vadukut’s previous articles, go to www.livemint.com/cubiclenama Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 12:33 pm Quick Edit |Reader rivalryKindle or iPad? Which one will you buy? The factors you consider while making that choice could well determine the future of electronic publishing. More and more people are reading their books in tree-friendly electronic form. Steve Jobs recently said that five million books had been downloaded to the iPad in the first 65 days of the device going on sale. Amazon, meanwhile, slashed prices on the Kindle this week. Many analysts have written off the Kindle as a one-trick pony. But, in fact, this might be the Kindle’s redemption. If Amazon is able to price it as a cheap book reader with access to a vast library, it might still be able to thrive on a services-plus model. But for that it desperately needs to keep publishers happier than it previously has. If Amazon does that, it might yet become the double-SIM Micromax mobile phone of the e-book market. Source: LatestNews-Home - Livemint.com | 24 Jun 2010 | 12:32 pm ‘Help me spend less!’ British PM writes to public sector workersBritish Prime Minister David Cameron and his deputy Nick Clegg wrote to six million public sector workers on Thursday asking for ideas on how to save money and tackle a record peace-time deficit.Source: HindustanTimes.com - Top Business News Headlines | 24 Jun 2010 | 12:17 pm Fiscal risk divides G20 in roadmap to recoveryWorld leaders will warn against taking the global economic recovery for granted while noting that the huge costs of stimulus could hurt long-term growth, a draft G20 document shows.Source: HindustanTimes.com - Top Business News Headlines | 24 Jun 2010 | 12:04 pm RIL announces shale buy, to pay $263 mn upfrontReliance Industries Ltd (RIL) on Thursday formally announced its $1.3 billion (Rs 5,980 crore) deal to acquire a 45 per cent stake in Pioneer Natural Resources’ shale gas assets south of Texas — its second US shale gas buy in less than three months.Source: HindustanTimes.com - Top Business News Headlines | 24 Jun 2010 | 12:00 pm New York’s iPhone 4 crazeHundreds of people stood on a line that snaked around the corner of Apple’s flagship store in New York waiting to get their hands on the latest iPhone 4, which released in the US on Thursday. It’s 6am on Thursday morning and the line snakes around the block here. The doors to the Apple store open at 7am and the first people to get into the store after hours and hours of waiting, were greeted with lots of fanfare. There’s a separate line for those who pre-ordered the phone –600,000 pre orders were made before Apple’s site came crashing down – and a line for those who didn’t pre-order. But there’s no doubt that for iPhone fans, it’s been worth the wait Source: Tech News - Livemint.com | 24 Jun 2010 | 11:19 am Fans scramble for Apple’s iPhone upgradeNew York/Paris/Tokyo: Apple fans queued overnight by the hundreds outside stores in the United States, Europe and Japan to snap up the latest iPhone, setting a new benchmark in the fast-growing smartphone market. It sold a record 600,000 in pre-orders in a single day last week, and BGC analyst Colin Gillis expects Apple to set a record for being the first company to sell a million smartphones in a single day. In midtown Manhattan, Apple employees and eager shoppers cheered as the doors of the flagship store allowed the first buyers in at 7 am EDT. Many had camped out for more than a day to pick up phones they had pre-ordered. As sales began, a line of hundreds more, who did not order online, circled an entire city block. First in line was Evan Windczan, a high school student from Boston who waited 48 hours to pick up his new phone. He said he was excited about the new design and video features. And what’s the first thing Windczan will do with the new device? “I’ll probably call my mother. She was very skeptical of the idea (of going to New York for a phone) when I told her. But I think she accepted it now,” he said. The iPhone 4 makes possible video calls, can handle multiple tasks simultaneously and has longer battery life than previous versions — adding specifications that some rivals already have to its trademark design. For the current quarter, which ends on Saturday, analysts expect Apple to sell 8 million to 9 million iPhones, including sales of older models. Analysts expect Apple to ship 10 million or more a quarter, as output ramps up to meet demand. Apple’s Pie? Apple’s latest salvo in the battle for the smartphone market, which IT research firm Gartner expects to grow 46% this year to more than 250 million units, comes as phones based on Google Inc’s Android software gather steam. Analysts estimate that Android’s 4% of the market last year will rise to 11% this year, while Apple’s share is seen steady at 14%. Top phone maker Nokia’s smartphone strategy has faltered recently, while BlackBerry maker Research in Motion — due to report results later on Thursday — has been losing momentum. In Paris, Apple aficionados began queuing at lunchtime on Wednesday for a midnight iPhone launch at France Telecom’s flagship Champs Elysees store. “I’ve heard a lot of good things about it. I couldn’t resist any more,” said Virginie, a 27 year-old marketing assistant and first-time iPhone buyer, and one of the few females queuing. Security guards said the crowd was far smaller than for previous iPhone launches, but Delphine Emotte, head of France Telecoms’ French operations, said the operator had wanted to do a special launch for the “Apple-maniacs.” Apple Addicts In London, 27-year-old business consultant Alex Lee queued for 32 hours outside Apple’s central London store. A Canadian who lives in Dubai, Lee made the trip just for the launch and said the queuing was as important as the phone itself. “It’s a good bonding experience and you make lifelong friends,” said Lee, who previously stood in line for the last iPhone version, the 3GS, without any intention of buying one. The phone has become Apple’s main growth driver, and is expected to become its biggest source of revenue. Some analysts estimate that more than two-thirds of iPhone sales come from outside its home US market. At the Apple store in Tokyo’s Ginza shopping district, there were only enough phones for customers who had been queuing since at least a day before the launch. “The hardest part was the heavy rain during the day yesterday,” said Akira Nakazawa, an 18-year-old student who had been waiting since Tuesday to be the first of 500-plus people. In Frankfurt, the Apple store opened two hours earlier than usual and limited the number of phones sold to two per person. Supply shortages, worsened by a lack of LCD display panels, could cap initial sales and hurt Apple when it faces a slew of new competitors, especially high-powered handsets based on Google’s Android. “The Droids are coming and current demand for the iPhone 4 implies a titanic battle between Apple and Google is imminent,” said analyst Jeremy Copp of industry tracker comScore. Source: Tech News - Livemint.com | 24 Jun 2010 | 6:23 am
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