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Inflation up, marginally
Gold dearer by Rs 1,265
Lloyds TSB buys HBOS for £12.2 b
CST relief to Maruti: More Cos line up
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Now, Morgan Stanley in merger talks
Tatas ring in Blackberry, at last
Steel PSUs hike prices despite ban
Ranbaxy hires ex-NY Mayor as adviser
3G Spectrum Auction
PNB, HDFC hike NRE deposit
RIL eyes gas in Peru
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Inflation up, marginally
New Delhi, September 18 However, inflationary pressures do not heed to crossed fingers and it once again showed a sign of moderate rise from 12.10 per cent last week to 12.14 per cent. Having shown some moderation during the past three weeks, inflation rose again mainly on account of the rise in primary and food articles. Prices of primary articles were up by 1 per cent, food articles prices rose 1.4 per cent and non-food articles 0.2 per cent. Fuel, power and light, however, were down 0.2 per cent and manufacturing products 0.1 per cent. The moderation in inflation during the past weeks can partly be attributed to the decline in international prices of crude oil and edible oils following the improved supply side conditions. However, despite a significant decline in global oil prices, with domestic prices of LPG, petrol and kerosene being regulated, it would take some time for inflation in fuel group to moderate substantially, said Dun & Bradstreet in its economy forecast on Wednesday. RBI Governor Duvvuri Subbarao said last week that inflation was showing signs of moderating, but it was too early to conclude whether this was a trend, signalling he would wait and see before taking any fresh steps. This would be the 24th consecutive week that inflation would be above the RBI’s 7 per cent target by the end of March. The government had earlier said inflation would hit 13 per cent and thereafter start moderating from December, before settling at 8-9 per cent by the end of the fiscal year in March. A slide in prices of oil, India’s biggest import, to near $90 a barrel this week, from a record high above $147 in mid-July, is expected to ease the pressure on inflation. |
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Gold dearer by Rs 1,265
Mumbai, September 18 Suresh Hundia, president of Bombay Bullion Association (BBA), said strong dollar boosted the precious metals and investors sought a safe haven in bullion amidst the drifting global stocks. There was some good festival demand mainly from jewellery makers, silver .999 finesses variety opened high at Rs 19,950 on better buying support. Later, it rallied and ended at Rs 20,660, with a massive gain of Rs 1,795 per kg from its previous close on encouraging advices from global markets. Standard and pure gold too opened high to touch 13k at Rs 13,050 and Rs 13,120 per 10 gm, respectively, on sustained demand from ornament makers.— UNI |
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Lloyds TSB buys HBOS for £12.2 b
London, September 18 The share deal comes after HBOS shares plummeted in recent trading following days of global economic turmoil, but marks yet another point of distress in the global financial crisis. Sir Victor Blank, chairman of Lloyds TSB, said the deal offered a "good deal for customers and shareholders" while his HBOS counterpart Dennis Stevenson said it was "the right transaction for HBOS". HBOS shares were down 19.2 per cent at the close of trading yesterday, against the backdrop of the dramatic collapse of US investment bank Lehman Brothers, nationalisation of US insurance giant AIG, and shock after shock in financial markets. Heavy losses yesterday prompted the Financial Services Authority (FSA) to issue a statement saying HBOS was well-funded, in an attempt to avoid a flood of savers trying to withdraw their money. Prior to the reports of the takeover talks, HBOS shares had nosedived 52 per cent to a low of 88 pence, as investors took fright at the state of the global banking sector despite news of the rescue for AIG, which was on the verge of bankruptcy. News of takeover talks for HBOS had helped push the bank's stock back into the black, at one point rising to 220 pence. But at the close of trading, HBOS was down 19.2 per cent at 147.1 pence, its third day running of heavy losses. Lloyds TSB shares were unchanged at 279.75 pence. —AFP |
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CST relief to Maruti: More Cos line up
Chandigarh, September 18 While MSIL has got relief on Central Sales Tax (CST), the crane-manufacturing JCB unit had sought relaxation on VAT from 12.5 per cent to 4 per cent. This demand, too, has been acceded to by the government, though only partially. Finance minister Birender Singh said following the demand raised by crane-manufacturing group, the government has decided to give relief only in sales made to the armed forces or to any government department or agency. While they would be required to pay 4 per cent VAT on all such sales, the rate of VAT on the remaining sales will continue to be 12.5 per cent. The government had reduced the CST from 2 to 1 per cent on inter-state sale of vehicles by MSIL while asking the manufacturers to pass on this benefit to consumers. This done, now, Hero Honda and Honda Scooter and Motorcycles Limited have put up their case for the government’s consideration. They are seeking relief on the grounds that they, too, have pumped in substantial investment in the state and are also operating from Haryana’s soil which makes them eligible candidates for similar relief. Sources said pleading its case, Honda Scooter and Motorcycle India Limited, Gurgaon, has asked for a reduction on CST from 3 to 2 per cent. However, since the Government of India has already approved this reduction and in view of the fact that MSIL has got greater relief from the state government, its officials, too, are learnt to have asked for a revision on the concession it has sought. In the case of Hero Honda, Dharuhera, which gets most of its supplies of parts from ancillary units and assembles them together, there is a demand to bring down the 4 per cent tax on these vendors to 2 per cent. Also, since there are only 10 to 12 per cent sales of the manufacturer within Haryana and inter-state sales comprise the rest, the manufacturer wants a reduction similar to that extended to MSIL in CST on inter-state sales also. Sources said that MSIL, which had represented to the Haryana Government about a year back, have committed to expand their manufacturing operations within the state, also announcing an investment worth Rs 9,000 crore in the future. MSIL had also cited the example of Tamil Nadu where the CST on inter-state sales is one per cent for a select few. |
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Now, Morgan Stanley in merger talks
Hong Kong/London, September 18 Morgan Stanley was discussing a deal with US regional banking powerhouse Wachovia, according to a source familiar with the matter, while CNBC said HSBC Holdings and China's CITIC Group were also eyeing Wall Street's second-largest investment bank. Morgan Stanley shares were up 5 per cent in trading before the New York Stock Exchange opened. As Morgan Stanley cast around for a lifeline, the Government of Singapore Investment Corp (GIC) said it would consider all possibilities, including taking a stake if approached. A Morgan Stanley spokesman in Hong Kong declined to comment. A spokeswoman at HSBC, which this week became the world's biggest bank by market value, also declined to comment, though a source told Reuters the bank wasn't interested. A senior executive at the Chinese group's CITIC Securities arm said his firm was not in any talks about investing in Morgan Stanley, and an official at the CITIC group could not be reached for comment. With the financial landscape undergoing its most dramatic transformation since the Great Depression, top US savings bank Washington Mutual was also tipped for takeover.— Reuters |
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Tatas ring in Blackberry, at last
New Delhi, September 18 Tatas were denied permission to launch services by the government amidst security concerns, although other leading cellular operators like Bharti Airtel, Vodafone-Essar and Reliance Communications have been offering these services for more than a year now. It was only after telecom secretary Siddartha Behura said recently that no permission was required from the government to launch the services, Tatas firmed up plans to roll out the service. ‘MNP by June’: Meanwhile, the government said today it would invite bids to appoint an agency for implementing the Mobile Number Portability (MNP) within a week, which will allow a customer to change his service provider while retaining the number. But the the consumer-friendly facility is some time away from the mobile users as the service can start from next June only. This was announced by telecom secretary Siddharth Behura today. — PTI |
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Steel PSUs hike prices despite ban
Chandigarh, September 18 Though these public sector steel producers have not shown the increase in the official price list of the company, they have stopped releasing the MS (mild steel) Round to the industry, if it refuses to lift the stocks on the enhanced price list. This has now led to a standoff between the companies like Rashtriya Ispat Nigam Limited (RINL) and the small-scale industry in auto parts, fasteners and cycle and cycle parts manufacturing units in the region. While thousands of tonnes of goods are now lying in the stock yards of the steel PSU, the steel-consuming industry has come to a grinding halt for want of material. The steel-consuming industry is being sent offer letters by the company officials stating that the MS Round will now be made available to them only at Rs 49,610 (as against Rs 43,050 per tonne mentioned in the company’s price list). Even the letter forwarded by the company to the Chandigarh Industrial and Tourism Development Corporation (CITCO), mentions a price hike over and above the price quoted in the official price list. The RINL officials, however, denied that they had increased the prices of MS round and wire rod. When asked why the small-scale industry in the region had refused to lift their stocks, the official said that the industry could be getting cheaper steel from other sources. Even SAIL has been accused of not releasing its new price list for this month, and charging a higher price than the price mentioned in its old price list. S.C. Ralhan, regional chairman of Engineering Export Promotion Council, said because of this malpractice being adopted by the steel producers, the small-scale sector has been worst hit. “With the company earlier sending offer letters, the large steel consumers could negotiate the hike in price and get a better deal. But the small-scale units, which consume less steel, could not do so,” he added. A.L. Aggarwal, president and Pardeep Aggarwal, secretary of Chandigarh Industrial Fasteners Association, rued that when public sector becomes a hoarder, where would the small industry go. |
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Ranbaxy hires ex-NY Mayor as adviser
New York, September 18 The US Food and Drug Administration (FDA) has issued two warning letters to Ranbaxy claiming procedural violations at its plants in Dewas and Paonta Sahib in India. Giuliani, a high-profile Republican leader and former US attorney in Manhattan, would provide advice and review compliance issues. Ranbaxy has been accused of selling generic drugs which did not meet FDA standards. The regulators said they would not approve more drugs manufactured at the two plants until their concerns were met and the firm said it would try to swiftly resolve the issues. The regulators alleged that the company used raw chemicals from unapproved sources and fabricated data to meet FDA standards. Announcing the appointment of Giuliani, Ranbaxy affirmed its commitment to work cooperatively with FDA to address the issues and put into place measures which will allow its products to be released in the US market.— PTI |
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3G Spectrum Auction
New Delhi, September 18 Apparently, some of the American companies, keen on rolling out the 3G services in India, have written to the ministry of telecom, raising objections to the norms laid out for the 3G spectrum auction process that impedes their entry into the world’s second-largest market. While the government today said it would allow foreign telcos to bid on their own without a domestic partner for the 3G spectrum but US players feel that the present norms and regulations, which allows the prevalent and the new players to bid for just about 5 MHz of the spectrum, do not allow them to roll out the 3G services satisfactorily. They will have to find a local player before starting services. As per the Indian laws, foreign companies can own up to 74 per cent stake and thus they would be required to form a joint venture with an Indian company before starting the services, telecom secretary Siddharth Behura told reporters here. As per the other rules, DoT incidentally, also feels that 10 MHz shall be needed for practical purposes to start the 3G services and admits that 15 MHz in 2.1 GHz band is ideally required for 3G services. This would mean that foreign telcos have three options: First, wait in line for 2G spectrum after acquiring a UASL licence. Second, foreign telcos can acquire up to 74 per cent in any of the existing 2G licence holders and third, they could merge with an existing player. Although the DoT has amended its 3G policy and said that the existing merger norms will apply only to existing licence holders. This would mean that foreign telcos, who are successful in their 3G bids, would be able to buy an existing licence holder without having to wait for three years, the lock-in period specified earlier. The other implication is that foreign telcos who bag 3G licences would also be able to buy out existing operators who hold 2G radio frequencies. But other side of the issue is that this would also mean no economic sense as the existing 2G licence holders would want their piece of flesh and sell out at very high prices, quivering the pitch again for the foreign players. US companies feel the 3G policy forces them to enter as a newcomer and pay at least twice as much as incumbent operators for 3G services. Moreover, the new entrants would have to pay an additional Rs 1,651 crore to acquire a basic UASL pan-India licence in addition to the money they bid for spectrum needed to offer 3G services. As a result, now the US companies have approached the government seeking more time to make a business case before committing huge investments in the auctioning of 3G spectrum. The US players want DoT to allow them to bid as 100 per cent foreign entities or give them a minimum of six to seven months after announcement of bidding details to enable them form JV with Indian firms before the spectrum is auctioned.
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PNB, HDFC hike NRE deposit rates
Chandigarh, September 18 FCNR (B) deposits in US dollar for PNB having a maturity of 1-2 years will now attract an interest of 2.96 per cent, while deposits with maturity rate of 2-3 years at 3.06 per cent, 3-4 years at 3.38 per cent and 4-5 years at 3.60 per cent. The rate of interest on Euro deposits has been revised to 5.08 per cent for first maturity, 4.63 per cent for secondf maturity and 4.53 per cent for third maturity. Similarly, interest rate for NRE deposits having tenure of 1-2 years have been increased to 3.71 per cent. Meanwhile, HDFC Bank said FCNR (B) deposits in US dollar for having a maturity of 1-2 years will now attract an interest of at 2.95 per cent, while rate with maturity 2-3 years and 3-4 years has been revised to 3.05 per cent and 3.38 per cent, respectively. For euro deposits, which will mature in 1-2 year period, the revised rate stood at 5.07 per cent while for 2-3 years and 3-4 years, the revised rates are 4.63 per cent and 4.52 per cent, respectively. For NRE deposits having a maturity 1-2 years the bank has revised the deposits to 3.71 per cent while for 2-3 years and 3-5 years, the rates have been revised to 3.81 per cent and 4.13 per cent, respectively. |
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RIL eyes gas in Peru
New Delhi, September 18 Reliance Exploration and Production DMCC, a fully-owned subsidiary of Reliance Industries, along with China National Petroleum Corp (CNPC) and Argentina's Pluspetrol last week won rights to explore for gas in Block 155, in the southern highland department of Puno, next to the border with Bolivia, industry sources said. — PTI |
3D Internet tool launched ADB to lend $608 m Lupin buyout 79 cr for loss-making PSUs 5-star rating for Surya Roshni
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