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LT Infra gets Infra NBFC status from RBILT Infrastructure Finance Company, a subsidiary of Larsen Toubro, has received the status of \"Infrastructure Finance Company\" from the Reserve Bank of India within the overall classification of \"NonBanking Finance Company.\"Source: Moneycontrol Top Headlines | 8 Jul 2010 | 8:17 am ICICI Direct trading site down; won\'t restart todayIf you try to log in you get a message that the site is down and will be available by 2.15 pm.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 8:13 am Reliance Power gets funding for Rs 17500 crore projectReliance Power said on Thursday it had achieved financial closure for its Rs 17500 crore (USD 3.7 billion) power project in the southern part of the country.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 6:43 am IOC against frequent fuel price revisionStaterun Indian Oil Corp (IOC) the country\'s biggest oil retailer, does not want fuel prices to be revised too often, its chairman B.M. Bansal said on Thursday.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 6:42 am May launch microhybrid Xylo by 2010end: MMMahindra Mahindra (MM) will decide on bidding for South Korea\'s Ssangyong by July 20, said Pawan Goenka, its President of Auto and Farm Equipments. \"We are currently doing due diligence on Ssangyong.\"Source: Moneycontrol Top Headlines | 8 Jul 2010 | 6:20 am IDFC to raise Rs 840cr via pref issue to Actis, KhazanahInfrastructure Development Finance Company (IDFC) has raised Rs 2,600 crore via a qualified institutional placement.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 6:01 am RBI Governor D Subbarao writes to FM on ULIP ordinanceWanting the unitlinked insurance product ordinance to lapse, the Reserve Bank of India Governor D Subbarao has written to the Finance Minister, saying that if it does not happen, it would result in restricting the ambit to ULIP issue.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 6:00 am Reliance Power achieves fin closure for 2nd UMPPReliance Power has achieved financial closure of its second ultramega power project (UMPP). The project is expected to be commissioned eight months ahead of schedule.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 5:36 am Gitanjali Gems\' maiden realty project to generate Rs 400crGitanjali Gems\' realty project, spread over an area of 4,00,000 sq feet, is expected to generate Rs 400 crore, said Chairman and Managing Director Mehul Choksi. \"The revenues will start from FY11,\" he added.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 4:52 am No crossholdings post restructuring: Raghav BahlNetwork18 on Wednesday approved a reorganisation plan to create a simplified two listed entity structure for the group.Source: Moneycontrol Top Headlines | 8 Jul 2010 | 4:28 am TRAI report lopsided; no one-time charge for spectrum: Mittal - Economic Times
Source: Business - Google News | 8 Jul 2010 | 4:15 am Satyam scam trial: Andhra Pradesh court pulls up Ramalinga Raju's lawyersThe special court trying the Satyam case today pulled up the counsel for B Ramalinga Raju, for not submitting an affidavit on whether he can be examined through a questionnaire given by the court.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 4:04 am Daiichi's Rs 113.62/share offer for Zenotech fair: SC - Business Standard
Source: Business - Google News | 8 Jul 2010 | 3:56 am Sensex stays firm...Nifty hovers around 5300 - India Infoline.com
Source: Business - Google News | 8 Jul 2010 | 3:40 am Singapore's Temasek says BP stake talk is "speculation"SINGAPORE (Reuters) - Singapore state investor Temasek Holdings dismissed talk it had held discussions with troubled British oil company BP Plc for a strategic stake.Source: Reuters: Money News | 8 Jul 2010 | 3:35 am India gold buying tapers off as prices recoverMUMBAI (Reuters) - India gold buying tapered off on Thursday afternoon as prices recovered partly to trade above $1,200 an ounce, dealers said.Source: Reuters: Money News | 8 Jul 2010 | 3:24 am ANALYSIS - China steel makers seek global clout in consolidationHONG KONG (Reuters) - China's drive to consolidate its fragmented steel sector is set to forge a handful of global giants, turning up the heat on top producers including ArcelorMittal and enabling it play hardball with material suppliers such as Rio Tinto.Source: Reuters: Money News | 8 Jul 2010 | 3:24 am China reaffirms yuan stance, loose monetary policyBEIJING (Reuters) - The People's Bank of China will maintain an appropriately loose monetary stance but will use its various policy tools flexibly, the central bank said on Thursday.Source: Reuters: Money News | 8 Jul 2010 | 3:22 am Coal India to come out with India's largest IPO in October - Economic Times
Source: Business - Google News | 8 Jul 2010 | 3:21 am Reliance Power gets funding for Rs175 billion projectThe 4,000-megawatt project received funding from more than 15 Indian banks and financial institutions, the company said in a statement.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 3:19 am BP says does not expect to halt oil spill until AugustLONDON (Reuters) - BP does not expect to plug its leaking Gulf of Mexico well until August, a spokeswoman for the company told Reuters on Thursday, following press speculation that it could happen earlier.Source: Reuters: Money News | 8 Jul 2010 | 3:17 am IOC against frequent fuel price revisionLast month, India granted autonomy to oil firms to fix retail prices of gasoline and raised prices of diesel, kerosene, and cooking gas.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 3:06 am Car sales to grow at 12-13 pc this year - The Hindu
Source: Business - Google News | 8 Jul 2010 | 3:05 am Rupee rises on higher shares, euro - Economic Times
Source: Business - Google News | 8 Jul 2010 | 3:03 am Audi set for record year sales after solid JuneFrankfurt: Volkswagen’s luxury brand Audi reaffirmed its forecast to post record vehicle sales in 2010, only one year after the biggest crisis the auto industry has seen in decades. Audi said on Thursday deliveries to customers rose 8.7% to 99,250 vehicles in June thanks to another surge in demand in China, which overtook Germany this year as the company’s single largest market. In the first half, sales volume rose 19.1% to 554,950 vehicles as above-average demand in the US and British markets also helped to drive results and compensate for a 5.1% decrease in Germany. “Over the past year in particular we have been investing considerable amounts in our brand and the dealer network in the United States. We are now reaping the rewards,” Audi sales chief Peter Schwarzenbauer said in a statement. “This year, our aim is to break through the barrier of 100,000 cars in the United States for the first time ever.” Audi said it was on track to post an overall record for vehicle sales at more than 1 million in 2010. Source: LatestNews-Home - Livemint.com | 8 Jul 2010 | 3:02 am HC defers Vodafone case against IT for tax dues to August 2The Bombay High Court on Thursday deferred till August 2 the hearing on an appeal filed by Vodafone International challenging income tax department's decision to levy tax on the company for acquiring stake of Hutchison International in Hutchison-Essar in a $11.1 billion deal in February 2007.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 2:52 am Network18 group shares fall; analysts upbeat - Reuters India
Source: Business - Google News | 8 Jul 2010 | 2:51 am Govt clears 3-yr drilling moratorium for oil explorersFaced with global shortage of offshore drilling rigs, the government today decided to give a three-year drilling holiday or moratorium to firms such as state-run Oil and Natural Gas Corporation and Reliance Industries.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 2:38 am Mahindra working as per schedule to enter US: Pawan GoenkaAuto major Mahindra & Mahindra said today, it is working as per its original schedule to enter the US market by December 2010, despite facing a lawsuit filed by its exclusive American distributor.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 2:33 am Thaicom entering Indian market, sees profit in 2010Bangkok: Thai satellite operator Thaicom said it would formally launch a high-speed Internet service via its broadband satellite, IPSTAR, in India in the third quarter and it was on track to make a net profit this year. “We will return to net earnings this year, which will be mainly driven by revenue from IPSTAR,” chief executive Arak Chonlatanon told reporters on Thursday, saying some revenue was already coming in from India. “Service in India already started from 1 July and the contract signing will eventually take place in the third quarter,” Arak said. Thaicom, indirectly owned by Singapore’s Temasek Holdings, also gets revenue from users in Japan, Malaysia and the Philippines, among other countries. The Indian market, accounting for about 17% of IPSTAR’s capacity, is potentially its second largest after China. The company is forecast to post a net profit of 133.5 million baht ($4.1 million) in 2010, according to Thomson Reuters StarMine. Shares in Thaicom had fallen 3.97% to 6.05 baht at the mid-session break, underperforming the broader market’s 1.2% gain after reports the authorities had found the company in breach of its concession agreement. Disputes Newspapers reported that an investigation set up by the information and communications technology (ICT) ministry as part of a mooted government plan to buy control of the company’s satellites had concluded Thaicom may have violated the concession. One of the charges is that a $6.7 million insurance reimbursement that Thaicom used to lease foreign transponders violated its concession in that the funds should have been returned to the concession owner, the ICT ministry. “All I can say is that our company has done nothing wrong in terms of the concession and was in full compliance,” Arak said. The government said in June that it wanted to buy back control of the satellites, citing reasons of national security. Thaicom is 41% owned by Shin Corp, which was founded by former prime minister Thaksin Shinawatra, a figurehead for recent anti-government protests in Bangkok. Thaksin’s family sold Shin Corp in 2006 to Temasek, a Singapore government sovereign wealth fund, in a controversial $1.9 billion deal. Arak said it was waiting for the government’s response to its request to launch a sixth satellite. Source: Home - Livemint.com | 8 Jul 2010 | 2:09 am Suzlon bags wind turbines order from Hindustan Petroleum CorpWind power equipment-maker Suzlon Energy today said it has bagged an order from state-run Hindustan Petroleum Corp for supplying turbines for the oil company's 25.5-MW project at Jaisalmer in Rajasthan.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 2:08 am Food inflation eases to 12.63%; fuel prices up 18%Vegetable prices fell by over 4% year-on-year, led by a massive decline in rates of potato and onion. Potato became cheaper by over 42%, while onion by 8.75% on an annual basis.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 2:00 am Stocks to watch: IDFC, Kingfisher Airlines, Reliance Infra, Aegis Logistics ... - Economic Times
Source: Business - Google News | 8 Jul 2010 | 2:00 am Oil jumps to $75 as equities rally; US supplies dropSingapore: Oil jumped to a one-week high above $75 on Thursday alongside positive sentiment in Asian equities, reinforcing overnight gains triggered by an industry report showing US crude inventories plunged last week. The euro surged to a two-month high and Asian stocks climbed to their highest in more than a week on Thursday after a bullish forecast from State Street a day earlier fuelled optimism about the coming US earnings season and underpinned growing tolerance for risk, sending Wall Street higher. “The fear over a double-dip recession or something more dramatic has eased a little bit from a month ago,” said Yingxi Yu, a Singapore-based commodities analyst with Barclays Capital. “Market sentiment remains a very important driver. Oil really follows equity markets and other risky assets.” US crude for August rose as much as $1.03 or 1.4% to $75.10 a barrel, the highest intraday price since 1 July, and was up 53 cents at $74.60 by 12:38pm, on the New York Mercantile Exchange. ICE Brent crude for August rose 34 cents to $73.85. Oil prices are still more than $12 away from a 19-month peak above $87 reached in early May, though they have rebounded by about $10 from a trough below $65 on 20 May. Crude inventories in the United States tumbled by 7.3 million barrels last week, the American Petroleum Institute reported late on Wednesday, more than three times the expected drop. “We have seen a very quick response in the market,” Barclays’ Yu said. “Perhaps it’s a reflection of the temporary closures on the US Gulf coast due to Hurricane Alex.” Stockpiles fell after Hurricane Alex forced some producers in the US Gulf to curb production and Mexico to close loading terminals that send most of their output to US refiners. A tropical depression formed over the northwestern Gulf of Mexico late on Wednesday, heading towards the Texas-Mexico border, a region still recovering from Alex, the US National Hurricane Center said. A tropical storm warning was issued in the lower Rio Grande valley along the border, from south of Baffin Bay, Texas to Rio San Fernando, Mexico. The warning signalled the storm could make landfall within the next 24 hours. The expected course takes the weather system away from main oil-producing regions of the Gulf. Government statistics on US oil inventories and demand from the Energy Information Administration follow the API data on Thursday at 8:30pm. “We have to wait and see what the EIA tells. If it’s a confirmation, it would provide support to the market in the short term,” Yu said. Expectations are for crude stockpiles to have dropped 2.3 million barrels, according to a Reuters survey. Gasoline stocks fell 191,000 barrels, the API said, in line with analysts’ projections, while distillates including heating oil and diesel fell 1 million barrels, contrary to a forecast for a 1.4 million-barrel gain. Another serious storm in the Gulf of Mexico could further disrupt efforts to contain BP’s massive oil spill off the Louisiana coast. BP boss Tony Hayward met with an Abu Dhabi state investment fund on Wednesday, part of a quest for cash to ward off takeovers and help pay for the worst oil spill in US history. Source: Home - Livemint.com | 8 Jul 2010 | 1:52 am Car sales growth seen solid but slowingNEW DELHI (Reuters) - Car sales in India are set to rise 12-13 percent in 2010/11 on the back of an expanding economy but rising interest rates and commodity prices remain a worry, an industry body said on Thursday.Source: Reuters: Money News | 8 Jul 2010 | 1:46 am BP aims to leak fix sooner, U.S. court fight loomsWASHINGTON (Reuters) - BP is aiming to plug its leaking Gulf of Mexico well by July 27, weeks sooner than forecast, according to a newspaper report on Thursday, while a battle between the U.S. government and the oil industry over a deepwater drilling ban heads to court.Source: Reuters: Money News | 8 Jul 2010 | 1:41 am ‘Mahindra working as per schedule to enter US’New Delhi: Auto major Mahindra & Mahindra on Thursday said it is working as per its original schedule to enter the US market by December this year, despite facing a lawsuit filed by its exclusive American distributor. The company, however, said the actual launch of the product would depend on the outcome of the ongoing litigation. “We are going as per (our) original plan for the launch of the pick-up truck in the US, but can’t say on the actual time of launch, as it will depend on the outcome of the litigation,” Mahindra & Mahindra (M&M) president (automotive and farm equipment) Pawan Goenka told reporters. Last month, M&M’s exclusive US distributor, Global Vehicles — which claims to have made an overall investment of $103.5 million (about Rs480 crore) along with franchisees for the launch of the vehicle —- filed a lawsuit against the Indian firm before an Atlanta District Court, alleging an inordinate delay in the launch of the pick-up truck. The domestic auto major had subsequently filed a dismiss suit motion in a US court, countering the lawsuit by asserting that GV’s claims were without merit. M&M, which had planned to launch the vehicle by the end of 2009, has missed two deadlines since, due to regulatory issues. It had later set end-2010 as the possible launch date for the vehicle in the US. The utility vehicle manufacturer had said it was diligently working towards satisfying all US homologation (making the vehicle comply with regulatory standards) requirements and intended to submit its final application as soon as possible. In its lawsuit, GV said that it had spent close to $35 million in preparation for the launch of Mahindra vehicles in the US and had signed with as many as 360 dealers nationwide. This also includes an initial distribution appointment fee of $8.5 million. GV had also claimed that that the US dealers have spent more than $60 million in franchisee fees for the right to sell Mahindra vehicles and asked the court to prevent M&M from selling its vehicles through any other dealer or distributor. M&M and Global Vehicles had entered into an agreement on 28 September, 2006, according to which the latter became the sole distributor of the Indian company’s motor vehicles in the US. Source: LatestNews-Home - Livemint.com | 8 Jul 2010 | 1:40 am Fuel inflation jumps; rate hike seen comingNEW DELHI (Reuters) - Food inflation eased, but fuel inflation accelerated in late June and a recent hike in fuel prices kept the case for the Reserve Bank to top up its last Friday's rate hike when it reviews policy on July 27.Source: Reuters: Money News | 8 Jul 2010 | 1:35 am Car sales growth seen solid but slowingNew Delhi: Car sales in India are set to rise 12-13% in 2010/11 on the back of an expanding economy but rising interest rates and commodity prices remain a worry, an industry body said on Thursday. Analysts said the forecast was conservative and India, along with China, was one of few bright spots for the automobile sector, particularly while recovery in the United States and Europe continues to be unsteady. “We expect car sales to grow at least 15% and commercial vehicles sales to rise about 25%,” said Jatin Chawla, auto analyst for institutional clients of brokerage India Infoline. “So long as the economy is growing along the expected growth rate, jobs are there and salaries are rising, there will be demand.” The Society of Indian Automobile Manufacturers (SIAM) forecast car sales to rise to 1.7 million units in the year to end March 2011. It also forecast truck sales, a barometer of economic activity, to rise 17-18% and motorcycles to climb 9-10%. Car sales rose an annual 30.8% in June, but lower than the record sales seen in the previous month as pent-up demand waned and a rise in vehicle prices also dampened sentiment. Global car makers are queuing up to invest in India to tap that growth. Earlier this week, Toyota Motor Corp said it would invest about ¥9 billion ($103 million) to produce engines and transmissions for its compact car Etios in India. Volkswagen’s luxury brand Audi is building its facility in India to boost output. German automaker Daimler said it was consolidating its truck operations in India by handling sales and marketing of Mercedes-Benz trucks to increase its footprint in the country. Interest rates, commodity prices A rise in interest rates and higher fuel prices might put off some prospective buyers, but with the trillion-dollar economy expected to expand around 8.5% in 2010/11 from 7.4% last year demand should remain robust. “Consumer confidence is very high,” said Pawan Goenka, president of SIAM. “There is some slowdown, but still we hope to see robust growth somewhere in the mid-teens for rest of the quarters.” After depressed sales in the last half of 2008 and early months of 2009, demand for automobile sales have been on a rising trajectory as a resilient Indian economy bounced back from a global depression. Goenka said the biggest challenge was rising commodity prices and what impact it would have on demand. India has raised its key lending rate by 75 basis points since mid-March, and the central bank is widely expected to hike again when it reviews policy on July 27. [ID:nSGE6610J3] In June, the government freed state-subsidised gasoline prices and raised prices of other fuels as one of the measures to trim its budget deficit. [ID:nSGE65R006] June sales Firms sold 141,184 cars in June, compared with 107,948 units a year ago, but lower than the record 148,481 units sold in May, SIAM data showed. India’s top car maker, Maruti Suzuki, had earlier reported a 28% fall in June sales compared to May due to a six-day shutdown of its plant for maintenance. Sales of trucks and buses, rose 44% to 52,211 units in June, while motorcycle sales rose about 30% to 715,985 units. By 0705 GMT, the sector index was up 1.2% whole the main index was up 1.4%. The sector index has risen more than 11% in 2010, outperforming the main index that has gained 1.4%. Source: Home - Livemint.com | 8 Jul 2010 | 1:34 am IMF raises 2010 world GDP forecast, flags Europe risksHONG KONG (Reuters) - The International Monetary Fund upgraded its 2010 global growth forecast on Thursday, citing robust expansion in Asia and renewed U.S. private demand, but warned the euro area's debt crisis posed a big risk to recovery.Source: Reuters: Money News | 8 Jul 2010 | 1:25 am Mahindra to decide on Ssangyong after due diligenceMahindra is among the six bidders short listed, who had submitted letters of intent to buy the Korean auto maker that has been under court-led restructuring since early 2009.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 1:21 am BP aims to fix leaking oil well by July 27The July 27 target date is the day the company is due to report second-quarter earnings and will speak to investors.Source: Daily News & Analysis: Money News | 8 Jul 2010 | 1:19 am IOC against frequent fuel price revisionState-run Indian Oil Corp, the country's biggest oil retailer, does not want fuel prices to be revised very often, its chairman B M Bansal said on Thursday.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 1:14 am Fuel inflation jumps; rate hike seen coming - Economic Times
Source: Business - Google News | 8 Jul 2010 | 1:14 am Food inflation at 12.63 per centIndia's food price index rose 12.63 per cent in the year to June 26, while the fuel price index climbed 18.02 per cent, government data released today showed.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 1:05 am Khazanah extends $835 mn Parkway offer to 26 JulyKuala Lumpur: Malaysian state investor Khazanah extended its $835 million partial offer for Singapore hospital operator Parkway until 26 July, as it takes more time to counter Fortis Healthcare’s better bid. Both India’s Fortis Healthcare and Khazanah want to use Parkway, which runs hospitals in Singapore, Malaysia, India and China, to spearhead their regional expansion in the booming healthcare market. Fortis and its founding family have offered to buy Parkway for S$3.80 a share, valuing the firm at $3.1 billion, above Khazanah’s S$3.78 a share offer. Khazanah’s Integrated Healthcare Holdings said the partial offer, which will double its stake in Parkway to 51.5%, will close on 26 July at 0930 GMT, confirming an earlier Reuters story that the date for the offer will be extended. The offer had been due to expire on Thursday. “This isn’t very surprising, as Fortis’ offer makes Khazanah’s partial offer look less attractive,” said Lynette Tan, an analyst at DMG & Partners in Singapore. “Khazanah may want to extend the date of its offer to give themselves more time to come up with a counter offer.” The Malaysian firm, which needs 313 million shares for the offer to succeed, said it has received acceptance from shareholders who hold 14.19 million shares. By 0620 GMT, Parkway shares were up 0.3% to S$3.88. Khazanah is also waiting for Fortis to release offer documents to shareholders later this month before it can make a final judgment about its next move, a source with knowledge of the deal told Reuters. Fortis controls Parkway with roughly 25% of the shares and four of 12 directors including chairman Malvinder Singh. Khazanah has just under 24% and two seats on the board. Deutsche Bank and CIMB are advising Khazanah and Fortis is being advised by Macquarie and RBS. Morgan Stanley is acting as an independent adviser to Parkway. Source: Home - Livemint.com | 8 Jul 2010 | 12:40 am Rel Power achieves financial closure of Krishnapatnam UMPP - Economic Times
Source: Business - Google News | 8 Jul 2010 | 12:31 am Apple says to open second flagship store in ChinaShanghai: Apple Inc will open its second flagship store in China, in the heart of Shanghai’s financial district on Saturday, the company said on Thursday. The retail outlet, featuring a 40-foot glass cylindrical wall, is located near Shanghai’s famous Oriental Pearl Tower. “We are thrilled to open the first of many new stores in China in this incredible location,” said Ron Johnson, Apple’s senior vice president of retail The company opened its first China store in 2008 in Beijing. Apple products are currently sold in China through resellers, this is the company second direct-selling outlet. Apple, which makes popular electronic devices such as the iPhone and iPad, competes in an extremely price-conscious market. Due to the long lead time for Apple to bring products to China, consumers often turn to the gray market for smuggled Apple goods or buy pirated versions. Lenovo Group Chairman Liu Chuanzhi was quoted as saying earlier this month that Apple was missing out on the opportunity to further expand in China. China Unicom is the only mobile operator to sell the iPhone in China, although rivals such as China Mobile have previously expressed interest in offering the smartphone. Apple is on track to have 25 retail outlets in the country by the end of next year. Apple executives said in April that they saw the Chinese market as a major growth opportunity. Source: Home - Livemint.com | 8 Jul 2010 | 12:30 am Apple says to open second flagship store in ChinaShanghai: Apple Inc will open its second flagship store in China, in the heart of Shanghai’s financial district on Saturday, the company said on Thursday. The retail outlet, featuring a 40-foot glass cylindrical wall, is located near Shanghai’s famous Oriental Pearl Tower. “We are thrilled to open the first of many new stores in China in this incredible location,” said Ron Johnson, Apple’s senior vice president of retail The company opened its first China store in 2008 in Beijing. Apple products are currently sold in China through resellers, this is the company second direct-selling outlet. Apple, which makes popular electronic devices such as the iPhone and iPad, competes in an extremely price-conscious market. Due to the long lead time for Apple to bring products to China, consumers often turn to the gray market for smuggled Apple goods or buy pirated versions. Lenovo Group Chairman Liu Chuanzhi was quoted as saying earlier this month that Apple was missing out on the opportunity to further expand in China. China Unicom is the only mobile operator to sell the iPhone in China, although rivals such as China Mobile have previously expressed interest in offering the smartphone. Apple is on track to have 25 retail outlets in the country by the end of next year. Apple executives said in April that they saw the Chinese market as a major growth opportunity. Source: World Business - Livemint.com | 8 Jul 2010 | 12:30 am Fuel inflation jumps; rate hike seen comingNew Delhi: India’s food inflation eased, but fuel inflation accelerated in late June and a recent hike in fuel prices kept the case for the central bank to top up its last Friday’s rate hike when it reviews policy on 27 July. The second straight weekly fall in food inflation would give little cheer to policymakers as the recent fuel price hike could push up by over 1 percentage point what is already the highest headline inflation level among the G-20 major economies. Data released on Thursday showed the food price index rose an annual 12.63% in the year to 26 June, slower than the previous week’s 12.92%, largely as prices in the year-ago period were high. The fuel price index went up by 18.02% during the period, compared with the previous week’s 12.90%. The index will see another jump in its next reading, with the government having raised fuel prices from 26 June. The primary articles index rose by 16.08%, compared with 14.75% in the previous week. Following the fuel price decision, the Reserve Bank of India (RBI) lifted its key rates earlier-than-expected by 25 basis points, the third hike so far this year, as it struggles to bring down inflation that a senior government official said could hit 11% in June. “When the full pass-through of the hike comes, there will be more of an impact on the prices of commodities,” N R Bhanumurthy, an economist with New Delhi-based think tank National Institute of Public Finance and Policy said. “I would expect another 25 basis points hike in the 27 July review and after that one more round of an off-cycle hike.” A Reuters poll after the interest rate decision showed analysts raised their outlook for interest rates this year. Nearly all of those polled expect a 25-basis point hike during the quarterly policy review. The yield on the benchmark 10-year bond briefly went up 1 basis point to 7.61% after the data. The government is pinning its hopes for cooling food prices on the progress of the summer monsoons, which irrigate the bulk of India’s farms. After early shortfalls, the rains have improved and have covered all of the country, brightening the outlook for crops. With over 40% of India’s 1.2 billion people living on under $1.25 a day, high prices are a liability for the ruling Congress party which could see voters deserting it in the eight upcoming elections this year and next. The hike in fuel prices saw some of the largest protests in recent years and rallied together the often-squabbling opposition parties against the government. Source: Home - Livemint.com | 8 Jul 2010 | 12:24 am Apple says to open second flagship store in ChinaApple Inc will open its second flagship store in China, in the heart of Shanghai's financial district on Saturday, the company said today.Source: HindustanTimes.com - Top Business News Headlines | 8 Jul 2010 | 12:20 am Bombay HC to hear Vodafone tax case on 2 AugustMumbai: An Bombay high court on Thursday rescheduled hearing of Vodafone’s appeal against the country’s tax department to 2 August, a Vodafone representative said. The Bombay high court gave a new date after the counsel for the Indian tax office asked for adjournment of the matter, the representative said in a statement to Reuters. Vodafone, fighting a tax bill in India from its 2007 purchase of Hutchison Whampoa Ltd’s mobile business in the country, had filed an appeal with the Bombay court in June challenging the tax department’s jurisdiction over the tax bill. Vodafone has not said how much the authorities were seeking, but a person with knowledge of the matter has said it was about Rs1,200 crore. Source: LatestNews-Home - Livemint.com | 8 Jul 2010 | 12:12 am Fall in output, prices may hit cement cos' Q1 profitsSharp fall in production coupled with high input cost and dip in prices may impact the profitability of cement companies in the first quarter of thisSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Solar power pilot: Govt to select developers by AugDevelopers of solar power generation projects with a total installed capacity of 100 MW are likely to be chosen by August-end, according to the Solar Energy Manufacturers Association of India and SEMISource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Vivimed Labs (Rs 183.1): BuyInvestors with short-term trading perspective can consider buying the stock of Vivimed Labs. It is seen from the charts of the stock that it has been on a steady long-term uptrend from its November 2009 low of Rs 32. Both medium- as well asSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am SEZ developers step up demand for continued tax sopsThe likelihood of new units in Special Economic Zones losing Income-Tax exemptions in the Direct Taxes Code regime has stepped up representations to the Centre.Source: Business Line - Home Page | 8 Jul 2010 | 12:00 am Day Trading GuideFresh long position is recommended only if the stock surges above Rs 2,800 levels with tightSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Japan Steel Works bullish on Indian N-reactor parts marketTokyo-based Japan Steel Works Ltd, a major global supplier of heavy forgings with a market leadership in specialised nuclear components, is bullish on the emerging market opportunities inSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Retail stocks soar as Govt unveils FDI plansShares of multi-retail firms soared on Wednesday after the Government's plans to consider FDI investments in the organised retailSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Banks can now access info on suspect activitiesBanks can now access and share information on high-risk activities, thanks to CIBIL Detect – a nationwide database of reported fraudulent and suspectSource: Business Line - Home Page | 8 Jul 2010 | 12:00 am Re 1 levy on bottled water to pay for supply to urban poorMaharashtra is considering a levy of Re 1 on every unit of packaged drinking water sold in the State. With 800 crore bottles sold annually in the State (according to the water supply department's estimate), the Government stands to earn Rs 800Source: Business Line - Home Page | 8 Jul 2010 | 12:00 am Base rate effect: Corporates turn to commercial papersCompanies have stepped up enquiries with entities such as banks and mutual funds about investing in their commercial paper issues to keep funding costs down.Source: Business Line - Home Page | 8 Jul 2010 | 12:00 am Puyol header takes Spain to first finalDurban: A headed goal by defender Carles Puyol carried Spain to their first World Cup final on Wednesday when they beat Germany 1-0 in the semi-finals. Spain will face Netherlands at Soccer City in Johannesburg on Sunday. The Dutch have been in the final twice before but have never won it so a new world champion is guaranteed. The Spaniards dominated the match but struggled to finish off a German side lacking their usual pace until Puyol struck with a powerful header from a Xavi corner in the 73rd minute. “Players from defence to attack were extraordinary and played a great game,” said Spain coach Vicente del Bosque. Striker David Villa added: “We’ve shown that in the big moments we’ve risen to the occasion. “It’s the best game we’ve played. We deserved to score more but a Puyol goal put us in the final and we’re exultant.” The European champions dominated possession early on and needed only five minutes to carve out their first chance against a nervous German defence. Spain forward Pedro, who started ahead of the misfiring Fernando Torres, played the ball for David Villa, who caught Arne Friedrich napping but could not beat keeper Manuel Neuer. Spain pressure With the Germans, who lost the Euro 2008 final to the Spaniards by the same score, boxed into their own half, Spain kept up the pressure, with Puyol heading an Andres Iniesta cross from the right narrowly over the bar after 15 minutes. Germany’s Piotr Trochowski, who replaced the suspended Thomas Mueller on the right, stretched Spain goalkeeper Iker Casillas with a well-struck low drive. Pedro and Sergio Ramos continued to single out Germany left back Jerome Boateng as a weakness, cutting the ball back from the wing for midfielder Xabi Alonso who twice fired wide early in the second half. The Spaniards came agonisingly close in the 58th minute with a Pedro shot that forced a spectacular save from Neuer before Iniesta cut the ball across the face of goal a metre ahead of the sliding Villa. Germany remained on the backfoot and 17 minutes from time were punished when Puyol headed the winner leaving Spain to soak up some late pressure before reaching the final. “I believe they (Spain) will win this tournament,” said Germany coach Joachim Loew. “Spain let the ball roll so well and you just can’t keep up with them. We played a great tournament but weren’t as sharp tonight as we’ve been.” “It was very difficult tonight,” added Germany captain Philipp Lahm. “We knew Spain were a favourite to win the tournament. Spain is a very strong team.” Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 11:58 pm Mahindra to decide on Ssangyong after due diligenceMahindra & Mahindra ,India's largest utility vehicles and tractor maker, will decide after a due diligence whether to make a bid for Korean firm Ssangyong, Mahindra President Pawan Goenka told reporters today.Source: HindustanTimes.com - Top Business News Headlines | 7 Jul 2010 | 11:57 pm June local car sales up 30.8 pct y/yCar sales in India rose an annual 30.8 per cent in June, an industry body said today, as a rapidly expanding economy continues to pull buyers to showrooms.Source: HindustanTimes.com - Top Business News Headlines | 7 Jul 2010 | 11:45 pm Nikon eyes ties with online, mobile device firmsTokyo: Nikon Corp said on Thursday it intended to form wide-ranging ties with online and mobile device companies to provide more ways of storing and sharing photographs taken on its digital cameras. No details are available on which companies Nikon would like to cooperate with, a spokeswoman said. Nikon, the world’s No. 2 maker of digital single-lens reflex cameras, high-end models that use interchangeable lenses, already offers an online service for storing and sharing images, which is compatible with Apple Inc’s iPhone. Makoto Kimura, who took over as Nikon’s president last month, expressed concern earlier in the year that growth in the digital camera market would slow over the coming decade due to market saturation and said he was looking for other ways of spurring growth. In an interview with the Nikkei business daily published on Thursday, Kimura said he was not considering expanding by buying any other camera company, but did not rule out acquiring a firm in a complementary field such as software. Source: Home - Livemint.com | 7 Jul 2010 | 11:41 pm Airlines stocks zoom 6 pc on FDI proposalAirline stocks rose as much as 6 per cent in early trade on the BSE, led by Jet Airways, amid a media report that foreign carriers may be permitted to purchase up to a 26 per cent stake in domestic airlines.Source: HindustanTimes.com - Top Business News Headlines | 7 Jul 2010 | 11:40 pm IMF raises world growth forecast but risks risingBeijing: The global economy is recovering faster than expected but Europe’s debt crisis might stall the rebound and governments need to shore up shaky public confidence, the International Monetary Fund said Thursday. The IMF raised its 2010 world growth forecast to 4.6% from 4.1% in April and boosted estimates for the United States and China. But its quarterly World Economic Outlook warned that “risks have risen sharply” and Europe has to quickly resolve debt problems and restore confidence in its banks. Europe’s problems “could spill over to other regions and stall the global recovery,” said Jose Vinals, director of the fund’s monetary and capital markets department, at a news conference in Hong Kong. “Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track,” Vinals said. Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the Washington-based fund said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations. “The numbers for economic activity have come in strong — in fact, stronger than we have forecast,” said Olivier Blanchard, director of the IMF’s research department. The fund raised this year’s US growth forecast from 2.7% to 3.3%. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1%. A global “double dip,” or relapse into recession, is “very unlikely,” Blanchard said. Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said. The fund raised its 2010 growth forecast for China to 10.5% from 10% in April, for Japan to 2.4% from 1.9% and for India to 9.4% from 8.8%. The estimate of the region’s growth rose to 7.5% from 7%. However, it warned that weakness in Europe “would affect Asia through both trade and financial channels.” Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year’s recession. The fund’s forecast for 2011 growth was unchanged at 4.3%, a decline from this year’s rate. In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for China from 9.9% to 9.6%, for Japan from 2% to 1.8% and for Britain from 2.5% to 2.1%. In Europe, the IMF said governments must resolve uncertainty about banks’ exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity. It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation. “In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired,” the IMF said. Source: Home - Livemint.com | 7 Jul 2010 | 11:33 pm ‘Tata Group in JV with Lockheed’Mumbai: The defence and aerospace arm of Tata Group has forged a joint venture with Lockheed Martin Corp to make defence equipment and aircraft parts, the Economic Times reported on Thursday. Unlisted Tata Advanced Systems has sought the Indian government’s approval for the venture in which Lockheed will have a 26% stake, while the remaining will be held by the Indian partner, the newspaper said. Citing the proposal submitted by Tata to the government, it said Lockheed would invest 428 million rupees ($9 million) and Tata would put in Rs122 crore. Officials at the Tata Group and Lockheed Martin could not immediately be reached by Reuters for comment. Source: Home - Livemint.com | 7 Jul 2010 | 11:29 pm Markets climb 1.4%; banks, autos upMumbai: Indian shares climbed 1.4% on Thursday on hopes a rally in world markets will bolster global risk appetite and help foreign portfolio investments. Financials led the rise as investors shrugged off a hawkish stance by the central bank and bet demand for loans would eventually rise in the fast-expanding economy, which is expected grow 8.5% in the fiscal year ending March. Optimism about the upcoming US earnings season lifted markets in Asia, but traders said they would await European bourses to open for further direction. By 10:21am, the 30-share BSE index was trading up 1.43% at 17,719.842, with 28 of its components gaining. “The gains for today may be capped at current levels. We will have to see how Europe fares in the day,” said Ambareesh Baliga, vice-president of Karvy Stock Broking. Shares in auto firms were trading up after an industry body forecast a 12-13% rise in car sales for 2010/11 after posting a near 31% rise in sales in June. Truck, bus and car maker Tata Motors rose 1.5% and utility vehicles and tractor maker Mahindra & Mahindra gained 1.4%. Top car maker Maruti Suzuki firmed 0.7%. Top lender State Bank of India rose 2.35% while rivals ICICI Bank and HDFC Bank gained 2.1% and 1.6% respectively. A new survey showed the central bank may again raise interest rates at its quarterly policy review at 27 July, after a surprise hike last Friday. Weekly food and fuel prices data due by 12:00pm, and headline June inflation next week will be watched for cues. Metal makers rallied as LME base metals gained cheering the rally in global equities. Non-ferrous metals producer Sterlite Industries climbed 3.1%, while aluminium producer Hindalco was up 1.6%. Tata Steel the world’s eighth-largest producer of the alloy, was up 2.1%. Bharti Airtel rose 0.7% after the top mobile operator said late on Wednesday it would invest $600 million in Nigeria over the next three years, half within the next 12 months. In the broader market, gainers were nearly four times the number of losers on volume of 108 million shares. The 50-share NSE index was up 1.4% at 5,312.60. STOCKS Infrastructure Development Finance Co was up 1.9% at Rs182.50 after the Economic Times reported the comapny would raise Rs8.4 billion by selling convertible securities to Malaysian state fund Khazanah and private equity firm Actis. Oil explorer Cairn India rose 1.5% to 301 rupees as crude oil prices rose to $75 per barrel. Source: Home - Livemint.com | 7 Jul 2010 | 11:17 pm Oil tops $75 in Asian tradeNew York's main contract, light sweet crude for delivery in August, touched an intra-day high of $75.10 a barrel before easing to trade at $74.75 a barrel, up 68 cents from the previous day.Source: Daily News & Analysis: Money News | 7 Jul 2010 | 11:11 pm Rupee gains 18 paise against dollar in early tradeThe rupee had closed lower by 13 paise at 47.03/04 against the dollar in yesterday's session.Source: Daily News & Analysis: Money News | 7 Jul 2010 | 10:46 pm Market recovers 228 points on firming global trendThe wide-based National Stock Exchange's Nifty rose by 68.40 points to 5,309.50 points at the same time.Source: Daily News & Analysis: Money News | 7 Jul 2010 | 10:29 pm Peugeot may finalise Andhra Pradesh for car plant this monthCompany had zeroed in on Nellore in JanuarySource: Daily News & Analysis: Money News | 7 Jul 2010 | 2:33 pm Orissa to reserve jobs for locals in private sectorOrissa intends to make it mandatory for the private sector setting up shop here to reserve for locals 90 per cent jobs in the unskilled and semi-skilled category, up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre.Source: Business Standard | Front Page Headlines | 7 Jul 2010 | 1:05 pm RBI moves Finmin to secure autonomyThe Reserve Bank of India (RBI) has urged Finance Minister Pranab Mukherjee to allow the Securities and Insurance Laws (Amendment and Validation) Ordinance 2010 to lapse, since it could affect the autonomy of all regulators, including the central bank.Source: Business Standard | Front Page Headlines | 7 Jul 2010 | 1:02 pm Quick Edit | Fighting over RamA petitioner railing against a “blasphemous” essay on the Ramayan in the Delhi University history curriculum is only to be expected. That the Supreme Court should demand a response from the university, however, is strange. The essay, Three Hundred Ramayanas by the much-respected scholar, A.K. Ramanujam, examines multiple narratives of the epic. The essay does two things that cannot sit well with the Hindu right. First, it allows narrative space to people traditionally granted no voice; one Kannada narrative belongs to an untouchable musician, and in a Jain tale, Ravana is a noble man. Second, it exhibits precisely the sort of critical thinking that’s absent in history education today—the sort of thinking that would seek to question the “official” version of Indian history that the right wants so desperately to establish. Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:54 pm BoA to focus on corporate segment for growth in IndiaMumbai: Bank of America Merrill Lynch (BoA-ML) will focus on corporate banking as it seeks to tap into a growing economy and healthier company profits, said Kaku Nakhate, 43, the new president and country head of the firm. “We want to build (the institution) brick by brick, end to end...provide universal banking services to consumers,” said Nakhate in an interview. “We to want to enhance risk parameters, increase product penetration and offer a lot more in the large corporate space.” It could be simple things such as an e-commerce platform or cash management system, she added. Nakhate, who took over on 1 July, has joined at a time when a robust economy forecast to grow at 8.5% is prompting companies to raise capital for expansion and also chase merger and acquisition opportunities. Although this is creating growing business for investing banking firms, Bank of America Merrill Lynch has slipped a bit. According to Dealogic data, Bank of America Merrill Lynch had an 8.8% share in the Indian investment banking market in 2008. That dipped to a low of 3.6% last year before inching back to 5.4% in 2010. Moreover, investment banking profits typically hostage to the vagaries of markets, firms such as Bank of America Merrill Lynch are looking to beef up their presence in the corporate banking segment. The firm wouldn’t disclose the break-up of revenues and earnings between its various segments. Nakhate said she wanted to tap into the growing number of multinational companies that are entering India. However, the company will stay clear of the retail business and also not look to service the small and medium enterprises, she said. “I am not saying we will not look into it; right now, we want to focus on larger corporates,” Nakhate said. The push towards a stronger corporate banking business was also part of Bank of America wanting to strengthen this business in the Asia-Pacific region, she added. Nakhate will report to Brian Brille, president, Bank of America Merrill Lynch, Asia-Pacific. A graduate of the Narsee Monjee Institute of Management Studies in Mumbai, she worked for 18 years with Merrill Lynch and Co., rising to the head of global markets at the local unit before joining JPMorgan in April 2009. She takes over from Kevan Watts, who is retiring at the end of this month. ravi.k@livemint.com Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:51 pm India-Malaysia trade pact to be ready by SeptemberKuala Lumpur: India and Malaysia on Wednesday said the Comprehensive Economic Cooperation Agreement between the two countries is expected to be ready by September, in time for Indian Prime Minister Manmohan Singh’s visit here in November this year. Indian Trade and Commerce minister Anand Sharma and his Malaysian counterpart Mohammad Mustapha met for a bilateral meeting and discussed the CECA, with both noting that though a few issues remained on the table, it would be done by September. However, sources who did not want to be named said though the issues on table were not unsurmountable, time was needed to resolve them. Later, Sharma told a press conference that despite last year’s economic downturn, was hopeful of achieving 15% growth in its exports. “Yes, we will achieve our target, the world lives on hope and we are very much focused on our target for doubling our share by 2015,” he added. Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:32 pm Railways had surplus of Rs1 cr in FY10New Delhi: The deterioration in the finances of the Indian Railways is far worse than what the government has let on. A review of provisional data for 2009-10 shows that its revenue surplus has dropped to a low of Rs1 crore, compared with Rs4,456.78 crore in 2008-09. In the Budget presented on 24 February, the government had pegged the revised estimate of revenue surplus at Rs951.03 crore.  Paras Jain/Mint The marginal revenue surplus is the result of a significant reduction in the amount Indian Railways has put into its depreciation reserve fund, which is used to replace aging assets. In 2009-10, the railways put in around Rs2,300 crore into the fund—much less than the Rs4,500 crore it had originally claimed it would—while withdrawing in excess of Rs5,000 crore from its accumulated reserves (which includes funds in the depreciation reserve fund), leaving a balance of less than Rs10 crore. This is the worst performance since the last financial crisis in the railways in 2000-01, which forced it to default on dividend payments to the Centre. The Indian Railways doesn’t follow commercial accounting norms followed by firms in India. A spokesperson for the railways declined to divulge details on the revenue surplus or the current fund balances, but conceded that fund balances had taken a hit in 2009-10. “Now that the arrears of pay commission are behind us and the economy looking up, the fund balances will again be built up,” he said. To be sure, rail minister Mamata Banerjee had in her very first budget flagged the fact that the finances of the railways were in distress. She commissioned and released a white paper on the finances that argued that accounting tweaks had masked the true status of the railways’ finances. The latest revelations have surfaced during the compilation of the final estimates for 2009-10. It showed that the ministry’s earnings in 2009-10 are, at Rs86,963 crore, marginally lower than that reported in the revised estimates issued this year. After accounting for operating costs, other expenses and an estimated dividend payout of Rs5,543 crore, this should leave a surplus of about Rs1 crore. The Indian Railways, which has steadily increased its freight business over the past six years, has been affected in the last two years by factors beyond its control, such as vastly increased pay scales for its 1.4 million employees (mandated by the Sixth Central Pay Commission) and a global economic downturn. The year 2009-10 was particularly hard on the railways. In an internal meeting of the rail board staff in March this year, senior railway officials said the national transporter’s earnings till February had grown by 9.3% (down from the 13% average of the previous five years) while working expenses went up by 25% over 2008-09. A former railway official said the national transporter has in the past resorted to decreasing the amount of money it flows into its various funds to shore its surplus. In lean years, the railways would put less money into the funds while drawing on the accumulated reserves and the reverse when revenues were buoyant. “The severe drawdown of fund balance only means that adequate appreciations to the funds will have to be provided in the next budget,” the spokesperson said, adding that final accounts for 2009-10 have been sent to the Comptroller and Auditor General. Analysts say the railways will have to initiate radical measures to cut costs while growing freight business. “They will have to do some significant cost cutting. For example, on the manpower side, they are very proud of the fact that they are the largest employer. They will have to look at cost reductions,” said Amrit Pandurangi, who heads the infrastructure and transport practice at consulting firm PricewaterhouseCoopers. rahul.c@livemint.com Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:15 pm Stocks rally on banking sector hopes, oil gainsNew York: Global stocks rallied on Wednesday, spurred by a brighter outlook for banks on both sides of the Atlantic, while oil prices snapped a six-day slide on expectations US crude inventories will decline. A bullish earnings forecast by State Street Corp, the world’s second-largest custodian bank, lifted US and European banking shares. Higher crude prices boosted stocks in the energy sector. Shares of State Street jumped almost 10% after it forecast second-quarter operating earnings that were sharply above analysts’ expectations. Banks rebounded from recent heavy losses, driving the KBW bank index up 2.5%. “Having a bank give this kind of pre-announcement is very encouraging,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. “It’s giving a more positive tone to the market in general.” MSCI’s all-country world equity index rose 0.8%, but its emerging market index remained in the red, down 0.2%. The Dow Jones industrial average was up 142.74 points, or 1.46%, at 9,886.36. The Standard & Poor’s 500 Index was up 15.44 points, or 1.50%, at 1,043.50. The Nasdaq Composite Index was up 27.61 points, or 1.32%, at 2,121.49. European shares reversed early losses in response to the State Street outlook and gained on optimism stress tests planned for banks in the euro zone and other countries might not be as bad as initially feared. The FTSEurofirst 300 index of top European shares rose 1.5% to close at 1,006.01 points, capping a 4% rise over the past two sessions. Spanish banks featured among top gainers, with heavyweights Banco Santander and BBVA up 6.5% and 6.3%, respectively. “State Street’s statement makes people think banking earnings will be good for the quarter,” said Joshua Raymond, market strategist at City Index. “And there’s hope of transparency on the stress tests.” The Committee of European Bank Supervisors was due to outline its methodology for a test that simulates the impact of a severe economic shock on about 100 banks and mimics last year’s US tests, sources close to the process said. Oil rebounded, lifted by hopes of a strong earnings season that were stirred by State Street and on expectations data will show a drop in US crude inventories. US crude was up $1.46 to $73.44 a barrel, having fallen to $71.44 earlier. ICE Brent crude futures were up $1.50 at $72.95. US Treasuries slid and Bund futures shed earlier gains to settle lower after the State Street outlook improved risk appetite and curbed demand for safe-haven government debt. Bund futures fell to a session low of 129.12 as equities turned higher, but trading volumes were thin ahead of the European Central Bank’s monthly meeting on Thursday. Treasury traders booked profits on recent safe-haven buying driven by worries the US economic recovery has hit a wall. The modest pullback in bonds did not dispel chatter over a US double-dip recession. Recent disappointing data on the labor and housing markets have emboldened bond bulls who bet the Federal Reserve will keep short-term interest rates near zero well into the second half of 2011, analysts said. The benchmark 10-year US Treasury note was down 6/32 in price to yield 2.96%. “You are seeing a bit of an unwind of the moves into the back end of the curve. It’s just profit-taking,” said Jessica Hoversen, an analyst with MF Global Research in Chicago. The euro fell from seven-week highs against the dollar on lingering concerns about the global economy as investors scrutinized the plans for European stress tests. The euro was down 0.25% at $1.2591, against the yen, the dollar was down 0.40% at 87.20. The US Dollar Index was break-even. “The euro remains vulnerable to another downturn as investors begin to look to the 16-member bloc’s growth prospects amid a back drop of strict budget cuts and the potential for another downturn in the global economy,” said Omer Esiner, a chief market analyst at Commonwealth Foreign Exchange in Washington. Spot gold prices increased $2.65 to $1,194.90 an ounce. Copper fell more than 1%, retreating after Tuesday’s rally as weaker data knocked the demand outlook and a rising dollar deterred non-US investors. Asian stocks slipped as investors worried that global growth was faltering, with the MSCI index of Asia Pacific shares outside Japan shedding almost 1%. Japan’s Nikkei average ended down 0.6%. Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:13 pm Banks lead markets up in rebound from recent lossesNew York: US stocks advanced more than 1% on Wednesday, rebounding from recent losses as a bullish earnings forecast from State Street Corp encouraged investors going into the earnings season. Equities have been pressured in recent weeks, with the Dow down seven of the past eight sessions as concerns persist about the strength of the global economy. “We were deeply oversold and thus were due for a healthy bounce like this,” said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. Krosby noted that markets gained more than 1% in Tuesday’s session, though they later pared those gains to close only modestly higher. “If we end higher today, that will give us a clue as to whether this rally is just a bounce, or a prelude to more sustainable gains,” she said. Institutional investor State Street rose 9.4% to $36.45 after it forecast second-quarter operating earnings that were sharply above expectations. Major company quarterly earnings reports begin in earnest next week. The KBW bank index climbed 3%, while State Street rivals Northern Trust Corp rose 4.7% to $48.11 and Bank of New York Mellon Corp was up 5.3% to $26.05. “Having a bank give this kind of preannouncement is very encouraging, and it’s giving a more positive tone to the market in general,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. The Dow Jones industrial average was up 145.69 points, or 1.50%, at 9,889.31. The Standard & Poor’s 500 Index was up 16.22 points, or 1.58%, at 1,044.28. The Nasdaq Composite Index was up 28.49 points, or 1.36%, at 2,122.37. Energy shares were also among the day’s gainers as August crude futures advanced 2.4% to $73.69 per barrel, sending the S&P energy index up 1.9%. Crude climbed on the expectation that upcoming data would show a drop in US inventories, a positive sign for demand, as well as weakness in the US dollar. The fall in the dollar “suggests that risk is coming back into the market a little bit,” Krosby said. 1,350. The firm said the reduced view reflected modestly weaker earnings growth and longer-term secular headwinds. In earnings news, Family Dollar Stores Inc tumbled 8.6% to $36.05 after it forecast fourth-quarter earnings below expectations. Among its discount retailer peers, Dollar Tree Inc slipped 2.9% to $41.66 while BJ’s Wholesale Corp was off 1.8% at $42.42. BP Plc Chief Executive Tony Hayward met with officials from Abu Dhabi’s investment authority as speculation mounted the sovereign fund would make a fresh investment. BP’s US-listed shares rose 2.4% to $32.66. Source: LatestNews-Home - Livemint.com | 7 Jul 2010 | 12:02 pm Asia next in line of fire for U.S. tax policeZURICH/SINGAPORE/CHARLOTTE (Reuters) - After forcing Switzerland's top bank UBS to its knees for helping U.S. residents dodge taxes, U.S. authorities are moving on other banks and countries used to hide clients' cash.Source: Reuters: Money News | 7 Jul 2010 | 10:29 am
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