|
|
|
|
Japan unveils $277 b stimulus package
Inflation eases to 10.68 per cent
Need to cut CRR, repo rate further: IEG
DLF seeks softer interest rates
|
|
IMF offers $100-b loan to nations facing crisis
Delta acquires Northwest Airlines
Global meltdown to hit growth: Montek
Sterlite still keen on Asarco
Asian stocks rally, Europe firm
A woman looks at a computer screen showing stock index at the Korea Stock Exchange in Seoul on Thursday. South Korean shares closed 11.95 per cent higher, their largest ever percentage gain, after the US Federal Reserve reached a currency swap deal with Seoul's central bank. — AFP
US stocks gain after Fed makes another rate cut
Aid from ‘friends’ now conditional, says Pak
EGoM defers decision on tax sops to IT SEZs
RIL open to price KG gas higher: Govt
|
|
Japan unveils $277 b stimulus package
Tokyo, October 30 Aso, trailing in polls and under pressure from the opposition to call snap elections, instead pressed parliament for quick approval of the 26.9 trillion yen ($277 billion) plan, including five trillion yen in new spending. With the economy teetering on recession, the package's highlight is sending back a total of two trillion yen ($20.3 billion) all households. "The global financial crisis is a once-in-a-century event," Aso told a nationally televised news conference. "An overwhelming majority of people put importance on policies, especially economic measures, rather than political affairs," he said. The package includes cuts in tolls on expressways, tax breaks for housing loans and capital gains, along with support for child care, elderly care and regional economies. Aso also pledged help for the growing number of young Japanese without steady jobs by giving businesses incentives to provide stable work to some 600,000 people. "In this kind of situation, we need to relieve people's insecurities. We should not be fearful of the violent storm, nor should we just stand and let the typhoon blow us away," Aso said. But Credit Suisse economist Hiromichi Shirakawa doubted the package could stop Japan's slowdown, saying that unemployment would likely rise as US and other countries' demand for Japanese exports slumps. "With tax breaks in a climate of heightened employment insecurity, we expect only limited stimulus effects on individual consumption and housing investment," he wrote in a report. Aso, who took over a month ago from the unpopular Yasuo Fukuda, breaks with predecessors in his Liberal Democratic Party (LDP) with his advocacy of government spending to boost the economy. But Aso said the government would not issue any new bonds, which would worsen Japan's already ballooning public debt. The package was far larger than some 1.81 trillion yen in new spending announced in late August by Fukuda to ease the impact of soaring commodity prices. Parliament approved the package earlier this month, with the opposition supporting it. But the opposition has warned that further legislation will not have such an easy ride through parliament if Aso refuses to call elections. The LDP chose Aso, a flamboyant campaigner, with a mission to lead them into elections, which must take place by September 2009. In another hint he would not call elections now, Aso noted that the United States, the world's largest economy, was undergoing a transition period between presidents. "I don't think the world thinks it's the best to see both number one economic power in the world and the number two economic power, Japan, messing around with elections and what not," Aso said. But analysts said that the LDP's main concern was losing. The party has been in power for all but 10 months since 1955 but has had four premiers over the past two years as it reels from corruption scandals and a slowing economy. The Nikkei business daily estimated that the LDP would lose about 130 seats in the 480-member lower house if the election were held now, with the opposition taking the majority. — AFP |
|
Inflation eases to 10.68 per cent
New Delhi, October 30 The wholesale price index rose 10.68 per cent in the week ended October 18 from a year earlier after gaining 11.07 per cent in the previous week, the commerce ministry said in a statement here. Economists had expected the index to close at 10.80 per cent. The annual rate of inflation was at 3.11 per cent a year-ago. The three major commodities group showed a decline in the week ended October 18. Inflation rate for primary articles group declined to 10.92 per cent in the reporting week as against 11.53 per cent a week-ago, because of lower prices of wheat and arhar and urad. However, the index for food articles rose by 0.2 per cent because of higher prices of bajra, maize, jowar and fruits and vegetables. The index for manufactured products, which has more than 63 per cent weightage in the WPI, declined by 0.1 per cent in the reported week. Lower prices of imported edible oil, oilcakes, rice bran oil, gingelly oil and groundnut oil contributed to the fall in index number for this group. Inflation for the week ended September 5 this year was revised upwards to 12.76 per cent as against an earlier provisional rate of 12.34 per cent. Experts here pointed out that the bigger-than-expected decline in the inflation rate may prompt RBI to switch focus to supporting economic growth from controlling inflation amid the threat of a global recession. Prices are falling here because of waning consumer demand and a decline in commodity prices, they said. RBI had last week reduced its growth forecast to as low as 7.5 per cent from 8 per cent in the current fiscal. It is expected that RBI may cut its benchmark repurchase rate by 200 basis points by the end of 2009 along with a 150 basis-point reduction in the cash reserve ratio, or the proportion of deposits lenders need to set aside as reserves. RBI had lowered the repurchase rate by one percentage point to eight per cent and reduced the CRR by 250 basis points to 6.5 per cent this month to cushion the economy from a global credit crunch. It was followed with a quarterly monetary policy statement on October 24 that aimed to place equal emphasis on controlling inflation and backing economic expansion. |
|
Need to cut CRR, repo rate further: IEG
New Delhi, October 30 "There is a need for further cut in both CRR and repo rate to stimulate the economy," the Institute of Economic Growth (IEG) said in its monthly report. The RBI had earlier this month cut the CRR by 250 basis points for the first time in almost five years to inject liquidity into the cash-starved banking system. Besides, it also slashed rate at which it lends short-term funds (repo) by 100 basis points to 8 per cent. The measures taken by RBI infused Rs 1,85,000 crore in the system. However, the liquidity situation has once again tightened during this week. Interest rates are not falling in line with easing inflation that has been declining for five weeks in a row. "There is a need to reduce the overall interest rate structure as it would hamper growth more than it offsets inflation in the medium term. But this reduction is insufficient to prop-up economic activity and need further cut in repo rate," the report said. "Although the cut in CRR is to ease the liquidity constraints in the short term money market, the cut in repo rate should be seen as a medium term policy to stabilise growth." — PTI |
|
DLF seeks softer interest rates
New Delhi, October 30 "There should be a drastic reduction in interest rates and mortgage rates," Singh told reporters here after a meeting with Chidambaram. He, however, refused to specify why he met the finance minister, but said neither the industry nor the company had submitted any memorandum to the government. "Make more money accessible to real estate sector... more money for development," Singh said. He said that there was a feeling of lack of money supply among industry players. — PTI |
|
IMF offers $100-b loan to nations facing crisis
New York, October 30 The new three-month loans, aimed at economies the IMF judges to be troubled but basically sound, wouldn't require countries to make the often severe changes in their policies that the IMF has demanded for decades, a media report said today. That makes it potentially easier for crisis-hammered countries such as Mexico, Brazil and South Korea —which the IMF judges to have basically sound economic policies — to shore up cash reserves, their currency, and their ability to help ailing companies as shaken foreign investors withdraw, the Wall Street Journal said. Those countries, it noted, have shunned the IMF because of the strings attached to the loans, which often force sharp budget cuts or interest-rate increases. The conditions are designed to help governments save money and pay for necessary imports, but they also often deepen an economic downturn, making the IMF deeply unpopular around the world. Now it essentially is dividing developing countries into an A-list of nations that qualify for loans without strings, and a B-list of everyone else, the Journal said. The new programme, which will use up to about half the IMF's resources, represents a big break from such requirements. "Exceptional times call for an exceptional response," it quoted IMF managing director Dominique Strauss-Kahn as saying. — PTI |
|
Delta acquires Northwest Airlines
Minneapolis, October 30 The company will keep Delta's name, Atlanta headquarters, and chief executive Richard Anderson, who used to run Northwest. Delta executives said travelers will see no differences right away. New uniforms will be phased in next year, and Northwest's fleet with its signature red tail will be repainted over the next two years, the companies said. "I will tell you from a customer perspective and a frequent-flier perspective it is business as usual," Anderson said. The combined airline would carry more traffic than either Air France-KLM (currently the world's largest) or American Airlines, the biggest US carrier. But antitrust regulators rejected worries that the new Delta would hurt consumers, or competition. — AP |
|
Global meltdown to hit growth: Montek
Bangalore, October 30 Ahluwalia and Union minister of state for commerce and power Jairam Ramesh were here today at a function organised by the software services giant Infosys at its campus here. Attempting to downplay the likely drop in the growth rate, the Planning Commission deputy chairperson said even at 7 per cent, India would have the maximum rate of growth among the emerging markets. He said “the pain the country was undergoing now” was caused by the drop in the growth rate to 7 per cent from 9 per cent. Ahluwalia said it was still an unfolding situation in the country and appropriate measures were being taken to arrest the crisis. Responding to a question, he said the financial deficit of the central government would also go beyond the initial projection owing to the international financial problems. However, on a reported Assocham prediction of 25 per cent job cut in the Indian industry, Ahluwalia said it was unlikely to happen. He said it was possible that 25 per cent fewer jobs would be created than the number of jobs created in the corporate sector the previous year. But, there was no possibility of 25 per cent cuts in the existing jobs, he said. Jairam Ramesh said the Assocham report was “outrageous” and ruled out possible cuts in 25 per cent of jobs in the corporate sector. On inflation, Ahluwalia said it was not as serious a concern as it was two months back.”I have been saying that inflation has moderated as a result of policies the government followed and therefore it is not as serious a concern as it was two months ago”, he said. |
|
Sterlite still keen on Asarco
New Delhi, October 30 Vedanta Group firm Sterlite Industries' had called off its earlier bid to buyout Asarco last week, saying its original offer of $2.6 billion was over-valued given the global financial meltdown and falling copper prices. Sterlite Industries spokesperson declined to comment on lowering of the offer price by the company for buying Asarco. During an investors conference last week, however, company's vice-chairman Navin Agarwal had said that Sterlite was "not willing to pay $2.6 billion for the deal". — PTI |
|
Asian stocks rally, Europe firm
New York/London, October 30 The spending measures would complement a series of interest rates cuts, including the latest round of global monetary easing from China, Norway and the United States on Wednesday. Japan may cut rates on Friday and the European Central Bank, Britain and Australia are expected to follow next week, which would come just as data show a rapid deterioration in major economies. The world's largest economy shrank at a 0.3 per cent annual rate in the third quarter, the sharpest contraction in the United States in seven years. The spectre of recession prompted businesses to cut investment and unnerved consumers, who slashed spending at the sharpest rate in 28 years. While the data was not as bad as some feared, economists expected a sharp deterioration in during the final three months of 2008, which began this month with a stock market crash, a credit freeze, and huge jobs cuts by US companies. "The economy is pretty lousy. It's unlikely to improve in the near term," said Keith Hembre, chief economist, at FAF Advisors in Minneapolis. A leading member of Germany's ruling Social Democrats (SPD) told a newspaper that the government planned to introduce a range of steps to bolster the economy next week. "All together we are talking about a volume of perhaps 20 billion euros to 25 billion euros," Peter Struck, parliamentary floor leader of the SPD, which shares power with Chancellor Angela Merkel's conservatives, told the Berliner Zeitung. The package will include support for car makers and building renovation as well as tax breaks enabling companies to write off a share of their investments, German newspapers reported. There was encouraging news from the banking sector. Closely watched rates on bank-to-bank borrowing fell on Thursday, helped by the US Federal Reserve's rate cut on Wednesday and also currency swap lines to ease dollar funding tightness around the world. Japan's benchmark Nikkei average index closed up 10 per cent, a third straight day of gains. European shares climbed 2 per cent and on Wall Street, the Dow also opened 2 per cent higher. — Reuters |
|
US stocks gain after Fed makes another rate cut
New York, October 30 In late afternoon trading, the Dow rose 229.22, or 2.53 per cent, to 9,294.34.Broader stock indicators rose in choppy trading. The S&P 500 index rose 23.95, or 2.55 per cent, to 964.46, and the Nasdaq composite index advanced 48.71, or 2.95 per cent, to 1,698.18.The Russell 2000 index of smaller companies rose 19.75, or 4.09 per cent, to 502.30. The market's back-and-forth trading, typical in the minutes after a Fed rate move, drew all the more scrutiny a day after an 889-point surge in the Dow Jones industrials Tuesday, its second-largest daily point gain after the 936-point surge on Oct 13 that later evaporated as fears about the economy grew.The stock market has been extremely volatile lately — beyond a simple case of investor indecision, Wall Street's back-and-forth moves may also be part of its attempt to establish a bottom. The yield on the three-month Treasury bill, regarded as the safest investment around and an indicator of investor sentiment, fell to 0.61 per cent from 0.74 per cent Tuesday. A drop in yield indicates an increase in demand. Meanwhile, the yield on the benchmark 10-year Treasury note rose to 3.87 per cent from 3.84 per cent late Tuesday.— AP |
|
|
Aid from ‘friends’ now conditional, says Pak
The "Friends of Pakistan" forum has made its financial aid to Pakistan conditional on the International Monetary Fund’s (IMF) certification of the country’s economic programme, finance adviser Shaukat Tareen has said.
The forum is due to meet on November 17 according to a report from Abu Dhabi. Another report from Dubai said the IMF in talks with Pakistani team has promised $ 9.5 billion to Pakistan under the stabilisation programme during next two years. Tareen told the media after the Senate session in Islamabad that Pakistan had already been asked to submit its economic programme with the fund. Tareen said the IMF had also already reviewed the option of discounting the economic programme in the provision of financial aid. He told the media that financial aid from the ‘Friends of Pakistan’ would be warmly welcomed. The finance adviser earlier told the Senate that a loan from the IMF would be used as a last resort. He also told the House about the government’s plan to deal with the economic crisis – which would be based on consolidating foreign exchange reserves, reducing the fiscal deficit, cutting down expenditure, agriculture-and manufacturing-led growth, a safety net for the poor and human resource development. Briefing members on the current situation, he said the country’s economy was in a shambles. The government would have no other option but to go to the IMF in case it did not get $4 to $5 billion from elsewhere over the next 15-20 days, he added. He said the budget for fiscal 2008-09 adopted by the National Assembly in June last was unrealistic and failed to anticipate the possible down turn in economy. He said the government wanted funds from the IMF on Pakistan’s terms. |
|
|
EGoM defers decision on tax sops to IT SEZs
New Delhi, October 30 "It (decision on Section 10 (AA) of the Income tax Act) is deferred till next EGoM. Discussions are still on," commerce secretary G.K. Pillai told reporters here. Industry and commerce minister Kamal Nath said the EGoM discussed the issue and will take a decision. "It is very obvious that there is an aberration and that aberration needs to be corrected. So the chairman of the EGom (external affairs minister Pranab Mukherjee) has heard all the points made by every body and decision will be taken," he said. The Section 10 (AA) of Income Tax Act provides exemption from income tax to the SEZ units on the export income. For calculating the exemption, export turnover is divided by the total turnover of the assessee. But an assessee may have a unit outside the SEZ as well. In the absence of change in the law, the IT SEZs promoted by most of the big groups such as Wipro, TCS, Satyam and Infosys stand to lose. Of the 531 SEZs approved, 320 are IT and ITeS units. Nath added, "Everybody has own views, but my view is very clear that at this point of time we need enhanced economic activity...not to cause any decline in the economic activity". — PTI |
|
|
RIL open to price KG gas higher: Govt
New Delhi, October 30 In a presentation on pricing of natural gas to the Parliamentary Standing Committee on September 11, the ministry said the minutes of the EGoM meeting held on September 12, 2007, suggest that the price formula approved was for valuation of the gas for the purpose of determining government share. "But we have been referring to it as selling price in ministry's communications," the ministry informed the Parliamentary panel. — PTI |
|
|
Corporate Results
New Delhi, October 30 The company paid Rs 12,663 crore for subsidising fuel in the second quarter, up by 233.3 per cent over previous year. However, sales grew by 13.1 per cent to Rs 17,492 crore in the quarter. Aban Offshore net up 30-fold
Drilling and oil field services provider Aban Offshore today said it has posted a 30-fold jump in its net profit at Rs 267.62 crore for the quarter ended September 30, over the corresponding period a year ago. Total income rose to Rs 984.12 for the quarter under review, from Rs 515.96 crore for the same quarter last fiscal. BPCL posts 2,625-cr loss
State-run oil major Bharat Petroleum Corporation today said its net loss for the second quarter ended September 30 stood at Rs 2,625.27 crore. The total income rose 49.32 per cent to Rs 38,148.73 crore for the quarter under review, from Rs 25,548.14 crore in the year-ago period. JSPL profit up 62 pc
Integrated domestic steel producer Jindal Steel and Power Ltd today reported a 62.17 per cent increase in its net profit at Rs 450 crore for the quarter ended September 30, against the year-ago period. The firm's total income rose by about 75.40 per cent to to Rs 2,231.08 crore for the September quarter of FY 2009, against Rs 1,271.94 crore it reported in the corresponding period last year, it said. Sun TV Network
Kalanidhi Maran-led Sun TV Network today said the company's net profit rose by 35.11 per cent at Rs 108.31 crore for the second quarter ended September 30, over the corresponding period year ago. — PTI |
Oil nears $70 in Asian trade Vodafone, Russia's MTS in pact V-Mart to invest Rs 40 cr Dong Fang Electric in India Dabur reconstitutes board Markets closed Religare fixes rights issue price
|
|||||
|
| 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 | |
New York/London, October 30
