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Import duty on steel, crude soya oil
Global markets battered again
Sensex loses 353 points
RBI: Decision on interest rates at appropriate time
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Rupee sheds 33 paise
Payment defaults hit diamond trade
Ford to cut stake in Mazda
Yahoo! CEO Jerry Yang to step down
Govt should facilitate housing: DLF
Citigroup layoffs to have ‘limited’ impact on India
Rs 50,000 cr for infra projects
Panel pitches for air fare cut
SBoP hikes NRE deposit rates
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Import duty on steel, crude soya oil
New Delhi, November 18 While the iron and steel products such as pig iron, semi-finished products, sheets and rods will attract a customs duty of five per cent, imports of crude soyabean oil will become costlier by 20 per cent, said an official release. The duty comes into effect from today. Terming the move to slap five per cent import duty on steel products as inadequate, Ispat Industries vice-chairman and managing director Vinod Mittal said "we were expecting a higher import tariff" as the industry faces the threat of cheaper imports from countries like China and Ukraine. Commenting on imposition of 20 per cent duty on crude soyabean oil, the Indore-based Soyebean Processors Association Coordinator Rajesh Agrawal said "the step is in the right direction but it is not complete unless the government imposes similar duty on crude palm oil and refined edible oils too". The government has imposed duties on iron and steel products and soyabean oil "in wake of the recent fall in the international prices of commodities and with a view to safeguard the interests of domestic producers," the release added. The government had seven months ago abolished import duty on steel and crude soyabean oil as part of the inflation management exercise. In the wake of global financial crisis, steel industry has been facing slump in demand and dip in prices by about 30 per cent in the last few months. Besides, the industry was also facing the threat of cheaper imports China, Thailand and CIS countries and it has been demanding protection by way of customs duty of at least 15 per cent. Echoing Mittal's sentiments, RINL chief P.K. Bishnoi said the industry had earlier demanded 15 per cent import duty on all categories of steel and was expecting at least 10 per cent. "But as long as government continues moving forward in helping the industry, it is a welcome step," he said. Endorsing the industry's concern, the steel ministry
had last month recommended
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Global markets battered again
London, November 18 The dollar was higher against the euro but lost versus the yen. Oil fell below $55 a barrel for a 19 per cent loss this month. Despite relatively stable conditions in short-term credit markets, banks were struggling to contain climbing losses on bad loans, with
Citi, second-largest US bank, reducing its workforce by 15 per cent in a dramatic move to restore itself to health. HSBC also laid off an additional 500 staff in Asia after announcing 1,100 job cuts in September. The state of the global economy remained the main concern. British inflation came in below expectations, reflecting the global decline in demand. Chief executives of General Motors, Ford and Chrysler and the president of the United Auto Workers union were to testify in Congress later on a hotly debated bailout plan. The pan-European FTSEurofirst stock index was down 1.7 per cent, having failed to maintain early gains. Global stocks as measured by MSCI were also down 1 per cent for an 11 percent loss this month and a nearly 48 per cent decline in the year-to-date. MSCI's benchmark emerging market stock index was down 3.2 per cent, reflecting concern about the impact on traditionally volatile sectors from the global downturn. Japan's Nikkei average slipped 2.3 percent, with exporters such as Sony Corp battered. The benchmark Nikkei shed 194.17 points to 8,328.41. Dollar stronger
The dollar rose against the euro as the stream of bad economic news prompted more unwinding of currency positioning in favour of the US currency. "The big issue is whether we are going to see a continuation of dollar repatriation," said James Shugg, economist at Westpac in London. "There's likely (to be) nothing to stop this from happening in the short term." The euro was down about 0.1 percent to $1.2632, off its lows. The dollar lost 0.2 per cent against the yen to 96.17 yen. Euro zone government bond futures edged
higher. — Reuters |
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Sensex loses 353 points
Mumbai, November 18 The benchmark index fell 353 points to close at 8,937 levels while in the broader markets, the Nifty fell by 116 points to close at 2,683 points. After falling sharply in the opening, the markets erased some of the losses following the statement of finance minister P Chidambaram that the government would take steps to stimulate the economy. However, the bears were back shortly afterwards and the markets slipped deeper into the red. Among the major losers today included technology, metal and banking stocks. While BSE technology index was down 5 per cent, the BSE Bankex fell 4.5 per cent. The IT index, too, slipped 4.7 per cent. Among the tech stocks, Wipro and Moser Baer were down more than 8.6 per cent. In the banking sector, Kotak Mahindra Bank, Karnataka Bank and IndusInd Bank were the major losers. |
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RBI: Decision on interest rates at appropriate time
New Delhi, November 18 "We are hearing what everyone is saying and the decision will be taken at an appropriate time," Subbarao told reporters after his meeting with finance minister P Chidambaram, when asked whether the RBI was mulling further rate cuts. Subbarao is believed to have discussed current liquidity situation in the country's banking system at a meeting with the finance minister here, where private sector banking giant ICICI Bank CEO and CII president K.V. Kamath was also present. "The RBI is constantly and continuously monitoring the situation," RBI Governor said. Asked if ICICI Bank would cut interest rates, Kamath said that interest rate "is a play of demand and supply". "Nobody has asked us to cut interest rates. I am among the first to say interest rates have to decline ...Confidence in business has to come back," Kamath noted.
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Mumbai, November 18 The rupee closed at 49.67/69 cheaper, its lowest level in more than two weeks. Moving in sync with weak trends in local stocks, it hit a low of 49.80 level during intra-day before recovering some losses. Dealers in foreign exchange said growing fears of exports being hit by a longer worldwide recession cast a shadow on rupee sentiment. — PTI
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Payment defaults hit diamond trade
Mumbai, November 18 Nearly every diamond exporting company run by the closely knit Palanpuri Jain community, which is a major player globally and operates from India and Amsterdam, has been badly affected by the recession. “Many companies are unable to recover dues from importers in the US even as they are being besieged by creditors,” a player in the business said. Some of the players in the diamond business are now desperately trying to raise funds from various sources, including sale of property. According to the trade, flats costing crores of rupees in the plush Napean Sea Road, Walkeshwar, Pedder Road areas of South Mumbai have been sold off by diamond merchants who had been accumulating property during the boom times. The recession in the industry, which coincides with a crash in the stock and property markets, has badly hit diamond merchants, say trade sources. For instance, diamond merchants who had booked offices in the Bharat Diamond Bourse in the Bandra-Kurla complex are looking for buyers. Unfortunately, only members of the bourse are allowed to own property in the building. And most of them are suffering from the market downturn. One diamond jewellery manufacturer said exports to the US from India, Dubai and Amsterdam by the Indian diamond merchants have virtually stopped except for a few big players who are still honoring contracts from some of the big players. Worst hit has been the export units at the Santacruz export processing zone (SEEPZ) in suburban Mumbai, one of the oldest EPZs in the country. Many units have gone bust after they were unable to realise payments from their clients in the US, according to trade sources. Outstanding amounts from US importers are said to be running into millions of dollars. Unlike in the US, Indian companies do not have bankruptcy protection and those who had invested in processing facilities using bank loans face the prospects of their properties being seized and auctioned off by banks, sources here say. Already, diamond cutting and polishing units have sent employees on three-month long leave since work has come to an end. More than 75,000 workers have been affected so far. Meanwhile, the Gem and Jewellery Export Promotion Council of India (GJEP) had last week advised its members to stop importing rough diamonds for a month from November 25 onwards. “The global financial situation is causing a strain on the players throughout the diamond value chain. In order to protect the interests of the industry at large, the Indian diamond industry has decided to curtail import of rough diamonds. This will also send a signal to the banking system that the diamond industry will not increase its indebtedness,” the GJEP said in its statement. Vasant Mehta, chairman, GJEPC, said the aim of the advisory was to reduce the entry of rough diamonds in the supply pipeline. With the exports to the US falling sharply, exporters are demanding financial assistance from the Centre. Ashok Minawala, chairman of the All India Gems and Jewellery Association, said
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Ford to cut stake in Mazda
Tokyo, November 18 Ford, which owns 33.4 per cent of Mazda, will sell about a 20 per cent stake, the companies said in a separate statements. The sale would net Ford some $540 million based on the closing price of Mazda's shares Tuesday. The shares rose 6.4 per cent to 184 yen amid media reports of a coming sale. Hit by a slump in the US, Ford is burning through its reserves and, along with General Motors Corp. and Chrysler LLC, is seeking a $25 billion government lifeline to weather the deepening economic crisis. General Motors said yesterday it would sell its remaining 3.02 per cent stake in Japan's Suzuki Motor Corp. for $230 million. Ford racked up a loss of $8.7 billion in the second quarter, its worst ever result, and has used up $11 billion of its cash stockpile in the past year. Hiroshima-based Mazda, which makes the RX-8 sports car and Miata roadster, said the two companies will continue their strategic relationship. The Japanese automaker said it would purchase the shares sold by Ford along with "several of its strategic business partners."
— AP |
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Yahoo! CEO Jerry Yang to step down
New York, November 18 Yang's decision to step down follows months of criticism from various quarters on a range of issues, including his move to shun Microsoft's $47.5-billion buyout offer. "Jerry and the Board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level," Yahoo! chairman Roy Bostock said in a statement on Monday. However, the 40-year old Yang would return to his "former role as Chief Yahoo!" — the position for corporate strategy — once the successor is appointed, and would continue in the company's board. Both external and internal candidates are being looked for replacing Yang. "We are deeply grateful to Jerry for his many contributions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved with Yahoo! as a key executive and member of the Board," Bostock said.
— PTI |
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Govt should facilitate housing: DLF
New Delhi, November 18 "The government has to ensure, through regulatory mode and policies, to facilitate a larger supply of housing in the market because it is only then that the prices will come down," DLF chairman K.P. Singh told reporters on the sidelines of the India Economic Summit here. "We have already cut prices and they have come down from what they were before," he said. No direction needs to be given, he added. Housing prices that were seen as affordable have come down, Singh said, adding "market forces will bring them down further". When asked if the future launches of housing projects would be at lower rates, Singh said, "My feeling is that they would." The rates will be tied to input prices, which are also coming down, he said, adding "so it will be reflected automatically". Freezes projects, fires staff
The liquidity squeeze-induced slump in demand has forced real estate leader DLF to fire some employees, put a number of hotel and housing projects on hold and yearn for 7 per cent home loan rates. "We must have laid off some employees somewhere," DLF chairman K P Singh told reporters, but did not give the number of jobs that were cut. The company has also deferred some of its projects due to poor demand. "In hotels, residential and commercial everywhere... deferred because of lower demand and liquidity crisis," he said, again without sharing the specifics. Singh also said high interest rates have taken a toll on demand. "There are no takers for housing sector... Ideally, the interest rate should be around 7 per cent." Asked if the current prices of the realty projects are inflationary, Singh denied and said: "It cannot be inflationary as it has to be competitive. It also depends on supply and demand." Because of demand going down, many projects have been closed down by many developers across the country, he
added. — PTI |
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Citigroup layoffs to have ‘limited’ impact on India
New Delhi, November 18 "The headcount reduction announced globally will have limited impact in India, " the company said in a statement issued here today. The Citigroup has about 22,000 employees currently working in India. Of which, 12,000 work for Citigroup Global Services Ltd (CGSL). Infact, the company in its statement has attributed the reason for a possible relief to a limited impact in India to the sale of Citigroup Global Services Ltd (formally e-serve) to Tata Consultancy Services, which is expected to be completed in the current quarter itself. The Vikram Pandit-led Citigroup had created a flutter in the job market announcing to slash more than 52,000 jobs in the coming months and reduce expenses by 20 per cent in 2009. — PTI
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Rs 50,000 cr for infra projects
New Delhi, November 18 "The plan is to spend Rs 50,000 crore on infrastructure...its specific contours will be announced anytime," minister of state for industry Ashwani Kumar said today. He said the money would be spent on projects that would be built through the Public-Private-Partnership (PPP). Prime Minister Manmohan Singh yesterday chaired a meeting of a committee, which discussed further liquidity injection into the cash-starved Indian economy that has started receiving blows from the global meltdown. Earlier, addressing the India Economic Summit, Kumar said the government has finalised an extensive programme for giving a stimulus to the infrastructure sector. "We are committed to give a major jump-start and technology will be a part of The minister said the government has received Tata Group's head Ratan Tata's suggestion for creating a separate fund in a few banks to enable domestic companies meet global exigencies. "The proposal has come and it will definitely be considered," he said. Kumar said few sectors of the economy are in greater need for funds. "In fulfilling their needs, whatever help the government can, it will provide," he said. The minister has convened a meeting of industry associations tomorrow to assess their requirements.
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Panel pitches for air fare cut
New Delhi, November 18 The committee, headed by cabinet secretary K.M. Chandrasekhar, which is studying the severe financial crunch faced by the airline industry, asked the finance ministry to examine the pros and cons of making jet fuel a 'declared good' to bring down its prices and help the ailing aviation industry come out of the red, official sources said. The inclusion of aviation turbine fuel (ATF) in the list of Declared Goods would allow imposition of a flat four per cent tax on it across the country. The taxes, including state sales tax, raise the ATF price by almost 30 to 40 per cent. The committee expressed concern over the "drastic" fall in passenger traffic and asked the civil aviation ministry to look into the possibility of lowering air fares, not only to increase traffic but also to ensure connectivity. The civil aviation ministry made a pitch for rationalising taxes on ATF so as to bring them down to international levels. The cost of jet fuel in India is almost 45-50 per cent higher than that in several foreign cities, including Singapore, Dubai, Bangkok and Hong Kong.
— PTI |
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SBoP hikes NRE deposit rates
Patiala, November 18 Interest rates on FCNR (B) deposits in US dollar have been increased to 4.17 per cent per annum for a period of 1 year and above but less than 2
years and 3.66 per cent per annum for 2 years and above but less than 3
years. Rates have been increased to 4.14 per cent per annum for 3 years and above but less than 4 years, to 4.49 per cent per annum for 4 years and above but less than 5 years and to 4.76 per cent per annum for a period of 5 years. |
OVL wins two blocks in Colombia Parsvnath, Spanish Co in pact Pantaloon Retail divests stake BHEL bags 1,325-cr order Infosys BPO awarded Iffco-Tokio insurance plan HSBC to cut 500 jobs |
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Europe loses 1 pc, Japan 2.3 pc;
