Helsinki, October 18
Nokia Corp. has reported a third-quarter net loss of 969 million euros (US $1.27 billion) as revenue plunged 19 percent and sales of its flagship Windows Phone fell under 3 million units.

The Q3 results were better than expected ahead of next month's launch of new smartphones it hopes can win back market share from Apple and Samsung. The results were helped by its telecoms equipment firm, Nokia Siemens Networks which the firm said had achieved record profits.

The struggling company said that revenue dropped to €7.2 billion ($9.45 billion) and gave a grim outlook for the rest of the year. A year ago Nokia reported a third-quarter net loss of €68 million on revenues of €8.9 billion.

The company's third-quarter underlying loss before one-off items was €0.07 per share compared to a profit of €0.03 a year earlier. Analysts had forecast a loss of €0.11 in a Reuters poll.

Nokia's net cash position fell to €3.6 billion ($4.7 billion) by the end of the quarter from €4.2 billion in June but still came in ahead of market forecasts of €3.4 billion.

Once the world's biggest mobile phone maker, Nokia has fallen behind rivals in smartphones, and its partnership with software giant Microsoft has yet to challenge the dominance of Apple's iPhones or Samsung's Galaxy models.

The Finnish group is now pinning its hopes on new, top-of-the-range Lumia 820 and 920 phones, which use Microsoft's latest Windows 8 software and are due to hit stores in November. — Reuters

Mumbai/New Delhi, Oct 18
Price pressures are likely to outweigh political influence when the Reserve Bank of India reviews interest rates later this month, after the latest inflation data reinforced the central bank's cautious stance despite calls from the new finance minister to ease policy.

Since his appointment at the end of July, Finance Minister P. Chidambaram has brought greater urgency to policymaking, backing a series of bold reforms that cost his coalition government an ally and reduced it to a minority last month.

Now, Chidambaram wants central bankers to take a few risks to help restore momentum to an economy stagnating near its slowest growth rate in three years.

The RBI, however, is not yet satisfied with New Delhi's fiscal consolidation measures and awaits more steps to reduce the deficit before it pulls the trigger on rates, officials close to policymaking said.

"There will always be pressure from the ministry, but we have to be clear in explaining to them the problems on inflation," said one RBI official, who declined to be identified due to the sensitivity of the matter.

"There is hardly any room to cut rates unless there is more action on the ground on reducing the fiscal deficit."

The best that New Delhi may get this month from the RBI is a gesture of support in the form of a cut in the cash reserve ratio (CRR) for banks that many in the market predict.

There is general acceptance that India's interest rates, among the highest in the world's major economies, should be cut at some point — the question is when.

With the policy repo rate standing at 8.0%, RBI governor D. Subbarao would be even more reluctant to cut rates after data released on Monday showed inflation at a 10-month high near 8%, with worse expected in coming months.

The fiscal deficit is forecast by analysts to reach 5.8 percent for the financial year ending in March due to weak revenue and hefty subsidies, giving credit rating agencies one of several reasons to think about relegating India's sovereign debt rating to junk status.

Upward pressure on inflation was inevitable after New Delhi's decision to raise fuel prices. If it fails to come down before the next review in mid-December, Chidambaram could find it harder to persuade the central bank to cut rates, as the government is expected to return to the market for more borrowing to meet its fiscal shortfall. — Reuters

New Delhi, October 18
A high-level panel, headed by Consumer Affairs Minister K.V. Thomas, will be constituted by the end of this month to look into internal trade issues that may arise following FDI in multibrand retail.

Last month, the cabinet gave green signal to 51% foreign direct investment in multi-brand retail. It had also asked to set up a high-level committee under chairmanship of the consumer affairs minister to recommend on internal trade reforms to the government.

"We’ll set up a high-powered committee on internal trade reforms earliest by the month-end. We’re working out the modalities, including the terms of reference," Thomas said. The committee will interact with state governments and traders to find out their difficulties following FDI in multi- brand retail and come out with solutions, Thomas added.

Talking about the foreign direct investment in retail, Thomas said: “My ministry has been entrusted the responsibility of interacting with various stakeholders including the trade unions, the states and others to find out what are the problems they would face when the FDI in the small trades comes into force.”

On the issue of interstate trade barriers, the minister said the government was quite aware of all these complex issues — problems being faced by transporters who traverse through different states and union territories with each region having its own set of rules and regulations vis-à-vis trade and industry, the environmental issues and a vast area which include laws that are considered to be outdated.

“These issues need to be tackled in a systematic manner for permanent solutions”, Thomas added.

New Delhi, October 18
India is expected to see a slower economic growth of 5.9 per cent in the current fiscal even as there are reasons to believe the "economy has turned the corner", a United Nations agency report said Thursday.

The UN Economic & Social Commission for Asia and the Pacific (ESCAP) said India's growth has been slowing down since 2011, mainly on account of "severe" monetary tightening by the Reserve Bank of India.

"India is projected to grow at 5.9 per cent in 2012-13 compared with 6.5 per cent in 2011-12," ESCAP said in the report titled South and South-West Asia Development Report 2012-13.

Projecting a GDP growth of 6.8% for 2013-14, it said there are reasons to believe the economy has turned the corner.

"Firstly, in Sept 2012, the government signalled its determination to pursue pending economic reforms including FDI in multibrand retail and civil aviation and the partial phasing out of fuel subsidies," it noted. The report added this year's monsoon season was not as weak as initially feared.

The Indian economy has been slowing down since 2011, after clocking over 8% average growth in the previous three years. — PTI

New Delhi, October 18
The commerce & industry ministry has referred to the Reserve Bank of India the issue of alleged violation of foreign direct investment norms by US retail giant Walmart in its Rs 456-crore investment made in a Bharti Group company.

The department of industrial policy & promotion (DIPP), which was directed by the Prime Minister’s Office to look into the matter, has written to the RBI to examine whether there was any violation of the Foreign Exchange Management Act (FEMA).

"Since the RBI is the focal point for foreign remittances, the matter has been referred for examination," a senior official in the ministry said.

When contacted a Walmart spokesperson said, "We are in complete compliance with India's FDI laws. All procedures and processes have been duly followed and details filed with relevant Indian government authorities, including the RBI."

According to the ministry official, in a letter written on October 10, DIPP had asked the central bank to examine whether the investment, first made by Walmart in Cedar Services, was passed on to Bharti Retail, which runs Easyday chain of stores, in violation of FDI regulations and FEMA. — PTI