|
|
|
|
China cuts rates, Fed and others to follow
String of bailouts
Danish low-cost airline to file for bankruptcy
|
|
Mobile operators charge for SMS on Diwali
Asia Pacific at greater risk amid economic slowdown: Moody’s
Finally, Sensex ends in green
Power, coal firms lock horn over FSA
Unitech sells 60 % telecom stake to Telenor
Dark clouds over IT industry
|
|
China cuts rates, Fed and others to follow
New York/London, October 29 The Europe Central Bank and Britain are expected to add to the worldwide monetary easing next week as authorities remain fearful that the worst financial crisis in 80 years will cause a long global recession. China increasingly appears to be the world’s last center of growth and has said it would not fall victim to the crisis. It cut its interest rate to 6.66 percent from 6.93. The Federal Reserve is widely expected to cut U.S. rates by at least half a point to 1 percent, the lowest level since June 2004. Norway’s central bank cut rates by 50 basis points to 4.75 percent, ending more than three years of tightening. The rate cuts lifted stock markets for much of the day but analysts said any recovery would be short-lived given that a sharp economic downturn was already in progress. “Enjoy the party while you can,” said David Buik, market commentator at Cantor Index in London. Japan’s Nikkei index ended up 7.7 percent and European shares climbed 5 percent, with sentiment boosted by China’s rate cut. U.S. shares opened lower, following the second-biggest ever rise a day earlier. The United States has entered a recession which will last longer and do more damage than any other since World War Two,the former head of the U.S. National Bureau of Economic Research, Martin Feldstein, was quoted
as saying.
Japan plans a cut
The Bank of Japan will consider cutting rates at a policy meeting on Friday but will watch market conditions before deciding, a source with knowledge of the matter told Reuters. A cut by the world’s second-biggest economy would “send a message to the world that Japan is cooperating with other nations in tackling the financial crisis,” said Koichi Haji, chief economist at NLI Research Institute
in Tokyo. The European Central Bank and the Bank of England are expected to ease policy at their regular meetings next week. The ECB is expected to cut a half point off rates to 3.25 per cent, their lowest in two years, according to a Reuters poll. An executive board member of the ECB said growth in the euro zone would be lower than
expected. “Confidence will not return until we stop to think about the measures which have been taken and we can see financial institutions resuming their normal activity,” Jose Manuel Gonzalez Paramo said in a newspaper
interview. — Reuters
|
|
Danish low-cost airline to file for bankruptcy
Copenhagen, October 29 “During the last few weeks, the management, board of directors, and the shareholder of Sterling Airlines have been fighting a battle to keep the company alive,” the company said in a statement. “Sadly, this has not had a positive outcome, and we have, therefore, decided to file for bankruptcy which will be done later today,” it added. Sterling has cancelled all of its flights, leaving many passengers stranded, and travellers holding tickets would not be refunded by the company, it said. Other Scandinavian carriers such as SAS and Norwegian were helping stranded travellers book empty seats on their flights, media reports said. Sterling is owned by Northern Travel Group, comprised of Icelandic investment groups Fons, FL Group and Sund. — AFP |
|
Mobile operators charge for SMS on Diwali
Chandigarh, October 29 Though the TRAI has allowed the cellular operators to have five blackout days, including Diwali, wherein they can charge a standard tariff on SMS, the operators decided to charge these rates even on a day before Diwali. Lakhs of consumers across the region have had to pay Re 1 for a local SMS, Rs 2 for national and Rs 5 for an international SMS, even on the Diwali eve. According to the latest Tariff Order issued by the TRAI, which has come into effect from September 15 (the customary/festival days on which free/confessional calls/SMS are not available), the TRAI has reduced the number of blackout days to five days in a calendar year. These are Diwali, Christmas, Valentine’s Day, Friendship Day and New Year. The TRAI has also added that the mobile operators will have to be pre-informed to their customers via SMS or voice calls. Officials in Airtel and Vodafone, however, denied that they had flouted the TRAI guidelines. Senior functionaries in both companies denied having knowledge about the blackout days being restricted to five, and said they had informed customers through press advertisements and SMSes. |
|
Asia Pacific at greater risk amid economic slowdown: Moody’s
New Delhi, October 29 “The Asia-Pacific region has escaped relatively unscathed from the financial effects of the credit crisis. But the region will not remain immune from its economic effects,” Moody’s Economy.com, a subsidiary of Moody’s Corporation, said in its latest report. Impact of the global economic slowdown would be so much that a major slowdown in Asian exports is on the cards later this year and in early 2009, the report added. “The greatest risk to Asia is not a financial crisis but an economic slowdown, considering that exports are such a major contributor to regional output,” Moody’s Economy.com senior economist Daniel Melser said. The recent tumble in global equity markets illustrates that the global credit crisis is entering a new phase, Moody’s Economy.com said, adding that concerns about financial failure are starting to ease, but worries about prospects for growth are mushrooming. Recent weeks have seen carnage in regional share markets as well as massive falls in exchange rates. China has sustained by far the largest share market fall, as its equity bubble burst. Share prices in India, Indonesia and other countries have also significantly declined. “Unfortunately, a weakening global economy represents a far greater risk to Asia than recent financial developments,” the report said. Trade is a major contributor to the gross domestic product of the Asia Pacific than any other region in the world. This means any changes in overseas demand will have a pronounced impact on growth. “As demand from global consumers withers, as is readily apparent at present Chinese exports will slump, as will demand for imported components and commodities from around the region,” the report added. Growth is set to slow across the board, China would post a growth of around 9 per cent over the next few years compared with 11.9 per cent in 2007. And the rest of the Asia-Pacific region will follow suit. Meanwhile, other countries in the region that have come to rely on China to propel their economies will also see their growth rates decline. Overall, Asia Pacific region has gotten off relatively lightly. No government bailouts have been required unlike in the US and Europe as no banks have failed or come close to failing as a result of asset write-downs. And although liquidity problems have certainly arisen, they are manageable. Asia, excluding West Asia, holds around $795 billion of agency debt, the largest
holdings of mortgage backed securities and consisting almost entirely of securities issued by Fannie Mae and Freddie Mac and hence intimately linked to the US
housing market. These holdings did not create any major problems for their Asian owners as they are of higher quality and are not derived from subprime or Alt-A mortgages. — PTI |
|
Finally, Sensex ends in green
Mumbai, October 29 Besides China and Korea, most Asian stock markets rose today after a dazzling rally on Wall Street last night as investors awaited possible interest rate cuts from central banks in the US and Japan.
Brokers expected that the market would gain further momentum looking at sharp rally in New York yesterday, but yesterday’s strong rebound on the Samvat 2065 proved to be short-lived. However, the Bombay Stock Exchange 30-share barometer resumed sharply higher by nearly 290 points but remained unpredictable throughout the day and fell below 8,900-level before recovering to some extent on domestic funds buying to settle the day at 9,044.51, a rise of 36.43 points or 0.40 per cent over previous close. Yesterday, the Sensex had gained a whopping 498.52 points or 5.86 per cent to end the special one-hour muhurat trading session. Similarly, the 50-issue benchmark Nifty index of the National Stock Exchange also ended slightly better by 12.45 points or 0.46 per cent to 2,697.05 from its last close. According market players, the local market is still reeling under global credit crisis and as a result foreign funds are pulling out heavily from bourses, which is mainly affecting the market sentiment. The Dow Jones industrial average shot up by 889.35 points, second largest point gains, and the Nasdaq Composite Index by 143.57 points yesterday. European markets also displayed a mixed trend with an upward bias this morning. Despite remarkable falls in realty, pharma, FMCG and banking segments, a smart rise in some of the metals, refinery and auto counters helped the Sensex end in the green. Meanwhile, finance minister P Chidambaram today held a meeting with the country’s top economic brains to deliberate on the implications of the global meltdown and the stand India should take at the crucial G-20 Summit called by the US on the crisis next month on November 15. According to provisional data, FII sold shares worth Rs 69.18 crore while Domestic Financial Institutions (DIIs) bought shares to the tune of Rs 24.78 crore. — PTI |
|
Power, coal firms lock horn over FSA
New Delhi, October 29 “We won’t sign the fuel supply agreement (FSA) if the company (CIL) cannot assure 90 per cent of the committed coal supply to us,” NTPC chairman and managing director R.S Sharma said. As per the New Coal Distribution Policy, companies requiring over 4,200 tonnes of coal annually need to enter into FSA with Coal India. Of about 1,400 companies from power, steel, cement and sponge iron sectors, nearly 1,100 are believed to have entered into FSA with Coal India. Much to the discomfort of CIL, however, only seven power units out of the total 25 are said to have inked the pact. “Unless companies sign FSA, we will not be able to know their exact coal requirement that may later create problem for us in supplying the raw material,” a CIL official said. On their parts, the power companies have refrained from signing the agreement over fixing of the ‘trigger level’ or the level of supply below which CIL has to pay a penalty. Not buying the idea, CIL said the power companies’ demand for ‘trigger level’
was unjustified. Even as power utilities and CIL lock-horns over the FSA, the government has decided to review the arrangement. — PTI |
|
Unitech sells 60 % telecom stake to Telenor
New Delhi, October 29 Unitech was awarded pan-India mobile telecom license for Rs 1,651 crore early this year and has got GSM spectrum in 13 circles. The company plans to launch services in the first half of 2009. “This is a landmark deal. At a time when lot of foreign exchange is outflowing, this deal will bring in much needed foreign exchange into the country,” Unitech’s telecom venture chairman Sanjay Chandra said. The deal has put the enterprise value of Unitech’s telecom business at a whopping Rs 11,620 crore ($2.35 billion), he said, adding the company would now start the process of rolling out network through out the country. Telenor, world’s seventh largest mobile operator, has operations in Europe and Asian countries, including 100 per cent subsidiary in Pakistan. Chandra said the approval for sale of 49 per cent stake has already been received and the company would soon approach Foreign Investment Promotion Board for 60 per cent stake-sale. In a filing to the Bombay Stock Exchange, Unitech said its telecom arm intended to play a significant role in India’s story of telecom growth and become a long term and successful telecom operator. “In light of this aspiration, the company will be investing over $3 billion over the next three years,” it said. Unitech Wireless has pan-India
telecom licenses in all 22 circles and plan to launch its services in first half of 2009. Headquartered in Oslo, Norway, Telenor is a global provider of high quality telecommunications, data and media communication services. It is owned 54 per cent by the ministry of industry and trade, Norway. — PTI |
|
Dark clouds over IT industry
Bangalore, October 29 However, there has been two to three per cent decline in pricing and the profit margins are expected to go down to three per cent due to weaker rupee. There has been a downward trend also in manpower utilisation levels by five per cent and employment levels by three to five per cent in the sector during the period. The industry is expected to show mixed performance in October-March as compared to April-September. Industry leaders predict that the demand would increase by five per cent and revenue by three to five per cent during the period. The industry expects a growth in overseas billing by up to three per cent during the period. Decline in demand due to recession in the US and other regions like Europe are a major concern for the industry. Some of the industry leaders are of the view that there has been a decline in the skill level of workforce over the past few years. The industry leaders want the government to take measures to contain the spiralling real estate price for boosting the IT industry. The survey of the five southern states - Andhra Pradesh, Karnataka, Kerala, Puducherry and Tamil Nadu - was carried out with the objective of analysing the performance of five important sectors in each state during April-September of the financial year 2008, providing an outlook for October 2008-March 2009 period and identifying the issues and concerns for key sectors. Views of senior executives of leading companies were obtained for the purpose. According to the survey, Karnataka’s electronics industry witnessed positive growth in its performance parameters during April-September 2008, compared to October 2007-March 2008. The industry witnessed five to seven per cent increase in production and consequent increase in the sales by up to seven per cent. The exports increased by two to three per cent. The engineering industry also recorded a good performance in April-September 2008 compared to October 2007-March 2008. The automotive and auto components industry and the steel industry registered moderate growth during this period. For the steel industry, demand fluctuation has become one of the major concerns. |
|
Corporate Results
New Delhi, October 29 Lufthansa posts 75-pc loss
Lufthansa Airline reported a 75-per cent nosedive in net profit in the third quarter today, blaming high fuel costs and weakened sales because of the global financial crisis. The airline posted 149 million euros ($189 million) in net profit between July and September, after saying it would cut its 2008 operating profit target to 1.1 billion euros from 1.38 billion euros, the same figure it posted last year. Operating profit in the third quarter plunged by 53.4 per cent to 279 million euros, the company said. Cairn India profit up
Cairn India has reported a 12.6-fold jump in its third quarter net profit to Rs 293.3 crore on the back of high crude oil prices and said it has enough liquidity in place to tap first oil from its Rajasthan fields from second half of 2009. Net profit in July-September quarter jumped to Rs 293.3
crore, from Rs 23.2 crore in the same period the previous year, the company said. Its consolidated revenue for Q3 was Rs 320.6 crore against Rs 265.81 crore in the same period last year. Sony net plunges 90 pc
Japan's Sony Corp said today its operating profit plunged 90 per cent in the second quarter of the financial year. Operating profit dropped to 11.0 billion yen ($113 million) in the three months through September, down from 111.6 billion in the same period of the previous year, a company statement
said. Bharati Shipyard
Bharati Shipyard as said its net profit grew by 28.77 per cent at Rs 33.16 crore for the second quarter ended September 30 over the corresponding period year ago. The firm had a net profit of Rs 25.75 crore in the second quarter of FY'08, Bharati Shipyard said. Net sales rose by 44.40 per cent to Rs 213.77 crore for the quarter under review, from Rs 148.03 crore in the same period last fiscal. M&M Q2 net dips
Mahindra & Mahindra has said its consolidated profit declined 4.92 per cent to Rs 373.3 crore for the second quarter ended September 30 on the back of increasing material cost and global economic crisis. The firm had a net profit of Rs 392.6 crore in the September quarter of last fiscal, M&M said. — Agencies |
|||||
Rupee improves by 21 p Himalya International signs pact with US company Bharat Biotech bags
Rs 100-crore project PNB likely to further cut
in interest rates State Bank of Bikaner & Jaipur
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
Copenhagen, October 29
