Corporates meeting norms to get banking licence: FM

Finance Minister P Chidambaram has said that companies fulfilling the banking regulator's guidelines should quality for banking licences. The Reserve Bank of India (RBI) is expected to issue final rules on new banking licences to private entities in the coming weeks.

"The RBI has drawn up draft guidelines, guidelines say that more licences will be given to the private sector... the governor told me he will give out guidelines in two weeks," Chidambaram told Reuters Television in an interview in London on Tuesday: "Whether any corporate or any kind of corporate will be excluded I cannot say."

"But if the guidelines are made out and transparently spelt out and if a corporate satisfies those guidelines, I don't see any reason why a corporate should not be given a licence."

The central bank had issued a draft set of guidelines in August 2011 barring entities with 10 per cent or more income or assets from real estate, construction and broking activities from starting banks. RBI is understood to have sent the guidelines to Delhi for vetting by the finance ministry. Chidambaram said in the interview that checks would be put in place to prevent misuse. "There will be clear firewalls and red lines which cannot be crossed."

The finance minister also said that the Budget next month will be a "responsible" one as general elections are 15 months away. Addressing global investors, on the fourth leg of his overseas roadshow that began last week, he said the government will implement many of the decisions and changes in the run-up to the polls. Chidambaram expressed confidence that foreign investment flows into India will improve after these roadshows which have shown that India has enormous goodwill.

Chidambaram said during the meeting in London, investors expressed reservations over political stability and capacity of the government to take reforms forward.

"I assured them that the polls are 15 months away and that the Budget that will be presented in February will be a responsible Budget, that we will implement many of the decisions and changes in the run-up to the polls," he said after the meeting.

Chidambaram said there is no reason for investors to doubt that "in the run-up to the polls, we will be anything but responsible". The finance minister said after the roadshows in the four cities "there is enormous interest in India. There is enormous goodwill for India, that India must get back to the high growth path and they want us to recapture what we achieved between 2004 and 2009. I am very positive and I am very hopeful".

Maintaining that foreign direct investment (FDI) are robust, he said figures till October show that it continue to be good. "But I think after these road shows in Hong Kong, Singapore, Frankfurt and now in London, I think FDI interest will improve and FDI flows will improve," he said.

Source: http://www.indianexpress.com/news/corporates-meeting-norms-to-get-banking-licence-fm/1067020/0

New BlackBerry won't be released in US until March

Research In Motion Ltd. unveiled new, versatile BlackBerrys after excruciating delays allowed Apple, Samsung and others to build commanding leads in an industry that is redefining society. But the first phone won't come out in the United States until March, and one with a physical keyboard will take at least a month longer.

The stock fell 12 percent after Wednesday's kickoff, despite mostly positive reviews about the new BlackBerry 10 operating system. There's concern the phone isn't coming out sooner, and there's worry BlackBerry 10's advances won't be enough to turn the company around.

In a move underscoring the stakes riding on its make-or-break product lineup, RIM used the occasion to announce that it is changing the company's name to BlackBerry. It's a pioneering brand that lost its cachet not long after Apple's 2007 release of the iPhone, which reset expectations for what a smartphone should do.

Pioneered in 1999, BlackBerry became a game-changing breakthrough in personal connectedness. It changed the culture by allowing on-the-go business people to access wireless email. President Barack Obama couldn't bear to part with his BlackBerry. Oprah Winfrey declared it one of her "favorite things.'' It was so addictive at times that it was nicknamed "the CrackBerry.''

As the BlackBerry began to cross over to consumers, rivals came out with a new generation of phones that could do more than just email and messaging, starting with the iPhone and followed by devices running Google's Android system. Suddenly, the BlackBerry looked ancient.

RIM promised a new system to catch up, using technology it got through its 2010 purchase of QNX Software Systems. But it has taken more than two years to unveil new phones that are redesigned for the new multimedia, Internet browsing and apps experience that customers are now demanding.

CEO Thorsten Heins, who one year ago replaced longtime executives who had presided over BlackBerry's fall, formally unveiled the much-delayed smartphones and software Wednesday in New York. Simultaneous events were held in Toronto, London, Paris, Dubai, Johannesburg, New Delhi and Jakarta, Indonesia.

The first device in the new crop of revamped BlackBerrys will be the Z10 _ pronounced "zee-10'' in the U.S. and "zed-10'' elsewhere. As RIM previously disclosed, it will have only a touch-screen keyboard, like Apple Inc.'s trend-setting iPhone and most phones running Android, including Samsung Electronic Co.'s popular Galaxy line. Although the Z10 will go on sale Thursday in the U.K. and next Tuesday in Canada, it won't be available in the U.S. until March.

The Q10 will follow and will have a physical keyboard, a feature that has kept BlackBerry users loyal over the years because it makes typing easier. RIM said the Q10 will start going on sale on some global carriers in April, but it couldn't say when U.S. carriers will have it.

Heins said U.S. carriers need more time to test the devices. All the major U.S. carriers plan to sell the new BlackBerrys. Verizon Wireless said the Z10 will be available for $200 with a two-year service agreement, in line with what other major smartphones cost. In Canada, it will cost about $150 with a three-year contract.

Frank Boulben, RIM's chief marketing officer, said some of the delay in the U.S. stems from specific testing requirements imposed by the Federal Communications Commission. There was a similar delay when the iPhone first came out, though subsequent models were released more quickly after their announcements.

The U.S. has been one market in which RIM has been particularly hurting, even as the company is doing well in many places overseas. According to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the U.S. market in 2008 to 2 percent in 2012. The iPhone and Android now dominate.

BGC Financial analyst Colin Gillis said the new phones' tardy arrival in the U.S. threatens to cause even more BlackBerry users to defect. By the time the Z10 goes on sale in the U.S., Gillis suspects many people will be waiting to see what Google plans to unveil in mid-May at an annual conference that usually includes new gadgets and an Android software update. Speculation of a new iPhone also may be building by then.

Wednesday's event flopped on Wall Street. RIM's stock fell $1.88 to $13.78. The stock has more than doubled from its nine-year low of $6.22 in September, but is still nearly 90 percent below its peak of $147 reached in 2008, when the iPhone was still a novelty trying to break into the mainstream.

Despite their limited availability until March, the new BlackBerrys will be hailed in a commercial Sunday during CBS's telecast of the Super Bowl. RIM declined to say how much it is paying, but some 30-second spots during the game have been sold for as much as $4 million. RIM said the spot is designed to signal to U.S. customers that the BlackBerry is back.

RIM also decided to make a touch-only version first, despite its strength with physical keyboards, in hopes of luring new customers.

"The idea that we are launching BlackBerry 10 just to upgrade the existing physical keyboard customer base is wrong,'' Boulben said in an interview. ``The new platform we are introducing will have much wider appeal on the market. It's for all the people looking for the next generation in smartphone experience.''

But RIM won't abandon physical keyboards. The Q10 will have a square screen and sport a 35-key physical keyboard with a back light, with language-specific arrangements such as QWERTY and AZERTY depending on the market. It's meant to cater to people who still prefer that over a touch screen.

The touch-screen keyboard itself promises such improvements as learning a user's writing style and suggesting words and phrases to complete, going beyond typo corrections offered by rivals.

The new BlackBerrys also are supposed to run faster and enable people to separate their professional and personal lives with a feature called Balance. They also promise to let people easily switch between multiple applications by swiping on the screen. The new BlackBerrys won't have a home button, which is fundamental to the iPhone.

"Gone are the days of going back and forth and in and out between applications,'' said Andrew MacLeod, RIM's managing director for Canada. ``It's cumbersome, it's inefficient and it's slow.''

The new software and BlackBerrys were supposed to be released a year ago, only to be delayed while Apple and Android device makers won more zealous converts to their products. In the meantime, Microsoft Corp. rolled out a new Windows operating system for smartphones, confronting RIM with another technology powerhouse to battle.

The delays in developing the new BlackBerrys helped wipe out $70 billion in shareholder wealth and 5,000 jobs.

"It is the most challenging year of my career,'' said Heins, whose anniversary leading the company occurred last week. ``It is also the most exhilarating and exciting one.''

Some analysts have questioned whether the company that helped create the smartphone market will survive, especially as its losses have mounted in the past year.

"We'll see if they can reclaim their glory,'' Gillis said. "My sense is that it will be a phone that everyone says good things about but not as many people buy.''

Ovum analyst Adam Leach said he believes the new system will appeal to existing BlackBerry users, but that won't be enough to undercut the popularity of the iPhone and Android devices. He predicted that BlackBerry ``will struggle to appeal to a wider audience, and in the long-term will become a niche player in the smartphone market.''

That said, RIM won't need a knockout. As smartphone sales grow overall, RIM can still succeed with the BlackBerry 10 without requiring iPhone and Android users to switch.

Regardless of BlackBerry 10's advances, though, the new system will face a key shortcoming: It won't have as many apps written by outside companies and individuals as the iPhone and Android.

RIM said it plans to launch BlackBerry 10 with more than 70,000 apps, and with 100,000 apps by the time it comes to the U.S. But some of those were developed for RIM's PlayBook tablet, first released in 2011, and weren't necessarily adapted to run on the BlackBerry 10. In addition, popular services such as Instagram and Netflix won't have apps on BlackBerry 10.

Source: http://www.indianexpress.com/news/new-blackberry-wont-be-released-in-us-until-march/1067214/0

PM for transparent regulatory regime to meet environment goals

Prime Minister Manmohan Singh today pitched for transparent regulatory regimes to ensure that environmental and economic objectives are pursued in tandem.

Stressing that protection of the environment and promoting development need not amount to a zero sum game, Singh said what is required is regulatory regimes that are

transparent, accountable and subject to oversight and monitoring.

"Indeed, regulatory regimes are often the basic necessary condition to ensure that environmental and economic objectives are pursued in tandem," Singh said inaugurating the Delhi Sustainable Development Summit (DSDS) organised by the Energy and Resources Institute (TERI) here.

Singh said growing population, changing consumption patterns and the consequent pressure on precious natural resources are real challenges that India face in its pursuit

of economic growth and the amelioration of poverty.

"The present global inequities built into the global economic order are patently unsustainable," he said, advocating re-engineering of economies in ways that are both

"frugal and innovative" in their use of scarce resources.

"This is where we must look for solutions in the future. India looks forward to working closely with the global community in this endeavour," he said.

Singh said that climate change has become the face of many challenges in the pursuit of sustainable development and this problem can only be tackled through coordinated global action.

"It is, therefore, crucial to look at sustainable development from a global rather than a purely national perspective," Singh said.

Hailing the industrialised world for adopting a second commitment period till 2020 under the Kyoto Protocol for emissions reductions, Singh said real progress cannot be

achieved if developed countries are not willing to enhance their ambition levels.

"For its part, our country is committed to meeting its domestic mitigation goal of reducing the emissions intensity of our GDP by 20-25 per cent by year 2020 compared with 2005 levels," he added.

Source: http://www.indianexpress.com/news/pm-for-transparent-regulatory-regime-to-meet-environment-goals/1067302/0

Jet Airways stake sale: Etihad top-brass, Naresh Goyal meet Ajit Singh

Top Etihad Airways and Jet Airways executives today met Civil Aviation Minister Ajit Singh here amid the possibility of the Abu Dhabi-based carrier picking up 24 per cent stake in the premier Indian airline.

The stake sale talks were attended by Jet Airways promoter Naresh Goyal and the Etihad delegation led by its CEO James Hogan.

While neither Hogan, nor Goyal spoke about the meeting, Singh said both airlines have been "in consultation (over possible stake sale). So the Etihad delegation was here today. They were discussing details with Goyal."

Replying to questions, the Minister said, "Any foreign airline investing money has many concerns -- what's the policy, what's the cost structure (so that) you make money out of that. They have been discussing this deal for over a month. Since the government allowed FDI (by airlines), talks have been going on."

Asked by when the deal would be finalised, Singh merely said, "It is up to them." He said whatever agreement was arrived at between the two carriers "should be within the regulatory framework."

The government changed its FDI policy in aviation in September last year to allow foreign airlines to acquire up to 49 per cent stake in an Indian airline.

Earlier this month, Jet had informed the Bombay Stock Exchange that it was in talks with Etihad "regarding a potential investment...The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams."

Reports have said that Etihad may buy 24 per cent equity in Jet Airways valued at about Rs 1,800 crore.

Source: http://www.indianexpress.com/news/jet-airways-stake-sale-etihad-topbrass-naresh-goyal-meet-ajit-singh/1067272/0

Punjab National Bank posts near 14% growth in Q3 profit at Rs 1,306 cr

Punjab National Bank today reported a 13.53 per cent rise in net profit during the third quarter ended December 31, 2012 at Rs 1,305.62 crore.

The public sector bank had reported a net profit of Rs 1,150 crore in the same period of 2011, PNB said in a filing to the BSE.

Total Income of the bank rose to Rs 11,518.95 crore in the October-December quarter ended 2012 from Rs 10435.12 crore over the same quarter of previous year, it said.

The gross non performing assets (NPAs) were at Rs 13,997.82 crore compared to Rs 6,442 crore in the year ago quarter, but was lower than Rs 14,024 crore in the

September-ended quarter.

Provisions were at Rs 801.59 crore, compared to Rs 946 crore last year, and lower than Rs 1,074 crore in the preceding quarter.

Shares of the bank were trading at Rs 891.60, up 6.87 per cent from its previous close on the BSE in the afternoon trade.

Source: http://www.indianexpress.com/news/punjab-national-bank-q3-net-profit-jumps-14-/1067290/

ICICI Bank standalone net profit jumps 30% to Rs 2,250 crore

Largest private sector lender the Chanda Kochhar-led ICICI Bank today reported a 30 per cent jump in standalone net profit at Rs 2,250 crore in the December quarter against Rs 1,728 crore a year ago.

The consolidated net rose 22 per cent year-on-year to Rs 2,645 crore from Rs 2,174 crore, the bank said in an exchange filing to the BSE.

The reporting quarter saw the city-based lender improving its net interest margin by 37 basis points to 3.07 per cent.

Advances rose 16 per cent to Rs 2,86,766 crore, led by a 17 per cent spike in retail advances to Rs 96,528 crore. Net interest income rose 29 per cent to Rs 3,499 crore from Rs 2,712 crore.

The net non-performing asset ratio improved to 0.64 per cent from 0.70 per cent a year ago. Sequentially too, it improved a bit from 0.66 per cent.

Capital adequacy ratio stood at 19.53 per cent with the tier-1 capital adequacy being at 13.25 per cent.

ICICI Bank Q3 net profit jumps 30.2%, beats forecast

(Reuters): India's No. 2 lender ICICI Bank Ltd posted a forecast-beating 30.2 percent rise in third quarter net profit, led by strong loan growth and fee-based income, it said on Friday.

The bank posted a net profit of 22.5 billion rupees ($421.39 million) in October-December, compared with 17.28 billion rupees a year earlier.

BlackBerry 10 launch: Take a stand

Net interest income, or the difference between income earned and interest expended, rose 29 percent to nearly 35 billion rupees.

Analysts, on average, had estimated net profit of 20.8 billion rupees.

Net non-performing loans at the bank stood at 0.76 percent of its total assets compared with 0.83 percent a year earlier.

Net interest margin, a key gauge of profitability for banks, improved by 37 basis points to 3.07 percent in the December quarter compared with a year earlier.

Source: http://www.indianexpress.com/news/icici-bank-standalone-net-profit-jumps-30--to-rs-2250-crore/1067289/0

Facebook's mobile ad revenue doubles in fourth quarter

Facebook Inc doubled its mobile advertising revenue in the fourth quarter, a sign that the No. 1 social network is seeing early success in expanding onto handheld devices as more of its users migrate to smartphones and tablets.

Investors want to see evidence that CEO Mark Zuckerberg's 8-year-old company is delivering on promises to develop a full-fledged mobile advertising business, a challenge facing many of today's technology leaders including Google Inc .

But the growth trailed some of Wall Street's most aggressive estimates. Shares of Facebook were down roughly 3 percent at $30.21 in after-hours trading on Wednesday, regaining ground after falling more than 8 percent immediately after the numbers were released.

Mobile revenue estimates among some analysts and investors were unreasonably high, said Sterne, Agee & Leach analyst Arvind Bhatia.

"As a result the stock was set up for disappointment," he said. Overall, he said, Facebook's results were encouraging.

The company's overall advertising business grew at its fastest clip since before its May initial public offering, helping the company's revenue expand 40 percent and surpass Wall Street targets.

Facebook has rolled out a wide variety of new services in recent months as the company seeks to stay ahead in the fast-moving Web market and to convince Wall Street that it can turn its audience of more than 1 billion users into a sustainable business.

Zuckerberg said the company plans to spend heavily to recruit talent in 2013 as the company pushes forward with new product development, particularly "mobile-first" services.

"We aren't operating to maximize our profit this year but we're doing what we think will build the best service and business over the long term," Zuckerberg said during a conference call with analysts on Wednesday.

The strategy makes sense for an Internet company, said Stifel Nicolaus Jordan Rohan. But it will force Wall Street analysts to "ratchet down" their profit expectations.

"The conference call was a bit of a sobering event," said Rohan. "The company advised analysts and investors to expect lower margins, and downplayed the near-term opportunity for revenues from Gifts," Facebook's recently-launched online commerce service.

FUTURE OPPORTUNITIES

Facebook shares, which lost more than half their value following a rocky IPO, have regained ground in recent months as concerns about its mobile ad business and insider selling have eased. Shares have surged roughly 60 percent since mid-November.

Zuckerberg said that recently introduced products such as Gifts, which allows Facebook users to purchase retail goods for their friends, as well as its new social search tool could become important businesses in the future. But in the near term he said that Facebook's advertising efforts will be the core of its business.

The number of monthly active users on the social network reached 1.06 billion at the end of last year, with 618 million daily active users, Facebook said. But much of that growth again came from emerging markets like Asia, rather than the United States or Europe, where revenue per user is several times higher. For instance, average revenue per user is $13.58 for the United States and Canada, but just $2.35 in Asia.

Overall fourth-quarter revenue came to $1.585 billion, up 40 percent versus $1.131 billion a year earlier. Analysts were looking for revenue of $1.53 billion.

Executives said some revenue from its payments business dating back to September 2012 had been booked in the October-December quarter, inflating the number somewhat. Excluding those deferred sales, overall revenue would have been up just 34 percent in the quarter.

But it was the fledgling mobile business that dominated Wednesday's discussion on the call. Finance Chief David Ebersman said Facebook had "basically doubled" mobile ad revenue from the third quarter to the fourth quarter.

"Two quarters ago we really had no mobile revenue," Ebersman told Reuters in an interview. "In the course of a pretty short period of time, we've dramatically ramped up our ability to monetize mobile."

Facebook said net income in the fourth quarter was $64 million, or 3 cents a share, compared to $302 million, or 14 cents a share a year earlier.

Excluding certain items, Facebook said it earned 17 cents a share, compared to the 15 cents a share expected by analysts polled by Thomson Reuters I/B/E/S.

Facebook expects expenses -- excluding stock-based compensation for employees -- to jump 50 percent in 2013, likely outpacing revenue growth. Capital investments may climb to $1.8 billion, up 14 percent from last year's $1.575 billion.

"They're going to have to continue to develop new products, which will cost them," said Bhatia of Sterne, Agee & Leach.

But he said, "the market would be less happy if they were not finding enough opportunities."

Source: http://www.indianexpress.com/news/facebooks-mobile-ad-revenue-doubles-in-fourth-quarter/1067245/0

Indian consumers cut down on discretionary spend: Credit Suisse

Indians are cutting down on discretionary purchases like apparel, electronics and automobiles as consumer optimism in the country is on a decline, according to an emerging markets consumer survey report by Credit Suisse.

High inflation and slower growth continues to worry Indian consumers with more people expecting lower salary increases, said the survey, which interviewed 2,602 respondents across 10 cities and rural areas in India.

This is in sharp contrast with other fast-growing economies like Indonesia, where the increase in minimum wages is likely to keep consumer sentiment robust, and in China, where sentiment remains strong on the back of purchases by consumers from lower income groups, the report released on Wednesday said.

"There are signs of down trading in discretionary items in India. Fewer people are buying smartphones and more now want to buy an entry-level car," said Arnab Mitra, research analyst with Credit Suisse.

"More and more consumers are postponing big-ticket purchases.. This situation will take more than a couple of quarters to improve," he said.

Last week, investors knocked down shares of India's largest consumer company Hindustan Unilever by 5 percent after the it reported weak volume growth as consumers cut purchases of products such as packaged foods and personal care items.

The report, however, said the long-term growth potential in India remained intact due to low product penetration in most categories.

Source: http://www.indianexpress.com/news/indian-consumers-cut-down-on-discretionary-spend-credit-suisse/1067227/

Business sentiments remain weak, RBI says

MUMBAI: Citing high inflation and widening current account deficit (CAD) as big constraints, Reserve Bank on Monday said there is limited scope for monetary actions like interest rate cut to boost growth in the third quarter policy to be announced on Tuesday.

"Given the preponderance of non-monetary factors behind the current slowdown in an environment where risks from high inflation, current account and fiscal deficits still remain, the scope for supportive monetary policy action is constrained", RBI said in its report on macroeconomic and monetary developments issued on the eve of policy.

The central bank, however, said that with the government executing economic reforms measures, it would be possible for the monetary policy to increasingly focus on revival of growth.

Meanwhile, the professional forecasters sponsored by the RBI has lowered the growth projection for the current fiscal to 5.5 per cent from 5.6 per cent projected earlier. They have also cut the growth forecast for the next financial year to 6.5 per cent from 6.6 per cent.

As regards inflation, RBI said it was likely to moderate below its projection of 7.5 per cent by March-end. However, it added, "suppressed inflation continues to pose a significant risk to the inflation in 2013-14. As some of the risks materializes, inflation path may turn stick."

Referring to recent reforms initiatives, it said, "(they) have reduced immediate risks, but there is a long road ahead to bring about a sustainable turnaround for the Indian economy. Business sentiments remain weak despite reform initiatives and consumer confidence is edging down.

More reforms needed

The Reserve Bank of India said recent reforms have reduced the immediate risks for the economy but emphasized on the need for more measures to restore investor confidence.

Flagging concerns about fiscal and external imbalances in the economy, the apex bank said that more reforms are required, especially in road and power sectors, to remove the investment bottlenecks.

"The fresh round of reforms that were initiated in September 2012, after a hiatus, has reduced the immediate risks facing the Indian economy ...

"On the whole it appears that the reform measures taken so far have not decisively lifted business sentiments and further action may be needed to restore confidence," RBI said in its third quarter review of Macroeconomic and Monetary Development.

The monetary policy, RBI said, could focus more on boosting growth after the reform actions get executed.

"While government has embarked on a fiscal adjustment path, staying on this course over the medium-term is necessary for providing sufficient space for monetary policy to stimulate growth," RBI said.

In the past couple of months the government has taken a host of reforms initiative including opening the multi-brand retail chain to FDI, and also the Cabinet has approved hiking foreign investment limits in the insurance and pension sectors.

Earlier this month, the government also allowed partial deregulation of diesel prices, besides limiting the number of subsidized LPG cylinders to nine per family a year.

"Fiscal risks have somewhat moderated in 2012-13, but a sustained commitment to fiscal consolidation is needed to generate monetary space," RBI said.

Source:http://timesofindia.indiatimes.com/business/india-business/Business-sentiments-remain-weak-RBI-says/articleshow/18223617.cms

Economic growth could slip to 5.5% this fiscal: RBI survey

 MUMBAI: India's economic growth could fall to 5.5 per cent this fiscal before seeing gradual recovery next year, a RBI-sponsored survey said today.

The latest estimate, coming a day ahead of the RBI quarterly monetary policy review, is lower than the government's revised annual growth estimate of 5.7 per cent. The median growth projection has been revised downwards to 5.5 per cent on the back of slower growth for 2012-13 fiscal, said the 22nd round of survey by professional forecasters of RBI. While the government expects the economy to grow by 5.7 per cent in the current fiscal, the RBI had earlier projected a growth rate of 5.8 per cent.

The RBI sponsored survey said that there would be a gradual recovery in 2013-14 and the economy could clock a growth of 6.5 per cent. The Indian economy grew at over over 8 per cent for two consecutive years before declining to 6.5 per cent in 2011-12 fiscal. "Growth in 2012-13 is likely to fall below the reserve Bank's baseline projection of 5.8 per cent," the RBI said in its third quarter review of Macroeconomic and Monetary Developments. It said due to supply and infrastructure bottlenecks and slack in external demand, the industrial output is contracting. This has also impacted the economic growth in the first half of the current fiscal which stood at 5.4 per cent.

"Even though a modest recovery may set in from Q4 of 2012-13 as reforms and efforts to remove structural constraints get underway, sustaining this recovery through 2013-14 would require all-round efforts in removing impediments for business activity. "With global recovery likely to stay muted in the near term, closing the output gap in India would be challenging," the RBI said. To boost growth, the government has taken a host of fiscal measures including liberalization of FDI in multi-brand retail, amendment of Banking Regulations Act and setting up of Cabinet Committee on Investment to accord fast track clearances to large value projects.

"It is imperative that reform measures continue to be executed efficiently and domestic inflation recedes further to support sustainable recovery in India," RBI said.

Source:http://timesofindia.indiatimes.com/business/india-business/Economic-growth-could-slip-to-5-5-this-fiscal-RBI-survey/articleshow/18224203.cms

Puravankara Q3 net profit rises 101%

BANGALORE: Puravankara Projects' net profit rose by 101% to Rs 64 crore for the third quarter ended December 31, over the same period a year ago.

This is the third straight quarter in which the real estate developer has posted a net profit growth of over 60%.

Revenues stood at Rs 311 crore, a growth of 60% over Rs 194 crore reported in the same period last year.

Source:http://timesofindia.indiatimes.com/business/india-business/Puravankara-Q3-net-profit-rises-101/articleshow/18227487.cms

Air India puts Boeing's Dreamliner planes up for sale, leaseback

NEW DELHI: Air India has put all its newly-acquired Boeing 787-8 Dreamliner planes for sale and leaseback and invited bids from prospective lessors by February first week, even as all of these aircraft remained grounded across the world.

Air India and other Dreamliner operators across the world have grounded their entire fleet of 50 B-787s delivered so far following a directive from the US Federal Aviation Authority after a fire risk reportedly caused by a battery problem.

In spite of this, the national carrier has gone ahead with its plan of sale and leaseback, which has already been approved by the government as part of its turnaround and financial restructuring plans.

Sale-leaseback is an arrangement in which an owner sells an asset to a leasing firm and, at the same time, leases it (as a lessee) on a long-term basis to retain exclusive possession and use. This frees capital tied up in a fixed asset, while the lender obtains a guaranteed lease.

The airline can also claim tax deductions as the asset was no longer owned but leased, which would help it in streamlining its operations and cut costs.

Air India has invited quotations from lessors on or before February 5 on a request for proposal (RFP) which said it "would sell the aircraft to the lessor and immediately leaseback them under an operating lease for a period of 12 years, with an option to extend".

Though the Indian flag carrier has received six Dreamliners between September and December last and is expected to get one this month, it announced in the RFP the sale and leaseback of seven of them. However, delivery of the seventh plane could be deferred due to the prevailing problem.

Air India plans to sell all its 27 Dreamliner aircraft to a lessor and lease them back to operate by paying monthly rentals, a common fund-raising practice among airlines.

Source: http://timesofindia.indiatimes.com/business/india-business/Air-India-puts-Boeings-Dreamliner-planes-up-for-sale-leaseback/articleshow/18225431.cms

Hyderabad stock exchange voluntarily ceases to be a stock exchange

MUMBAI: Market regulator Sebi on Monday allowed Hyderabad stock exchange to cease as a stock exchange. In the process HSE has become the first exchange among 25 in the country to voluntarily opt out of the exchange space.

Since the advent of online trading in the country in mid-1990s, regional stock exchanges like HSE have been finding it tough to compete with pan-India bourses like NSE and BSE.

According to Sebi, currently of the 25 exchanges most are non-operational and only five — NSE, BSE, MCX-SX, USE and CSE — have trading on their platform.

Source: http://timesofindia.indiatimes.com/business/india-business/Hyderabad-stock-exchange-voluntarily-ceases-to-be-a-stock-exchange/articleshow/18228382.cms

Ankesh Shahra the flag bearer of Ruchi group

A young dynamic entrepreneur is all set to the charge the business world, with his fresh attitude and strategic knowledge the company is set to ride to success. Ankesh Shahra is currently based in Singapore and managing the international businesses for Ruchi Soya. It includes establishing a cross-commodity global trading platform headquartered in Singapore

His work in business world is highly appreciated and lauded which bagged him the prestigious Globoil Global Young Entrepreneur Award which he received from Member of Parliament and lawyer Ram Jethmalani. He has also has been invited to attend the Rabo Bank Food & Agribusiness Advisory Board Meeting that was held in Hong Kong.

He dons the role of Director, Business Development for Ruchi Agritrading Pte Ltd.
Ankesh has a background in Finance, Economics and International Trade and represents the third generation of the Shahra family that started the business conglomerate Ruchi Group. With his distinctive attributes and rich pedigree he is set to take the business in great space.

The Group has business interests across the sectors ranging from Edible oil, Soya foods, Steel, Dairy, Featuring among the top five FMCG players in India; Ruchi Soya Industries is the flagship company of Ruchi Group of Industries. A leading manufacturer of high-quality edible oils, soya food, vanaspati and bakery fats, it is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, it is the largest producer and marketer of vegetable oils and soya food, the largest oilseed crusher and edible oil refiner, the largest importer of vegetable oil and the largest exporter of soya derivatives from India. Ruchi Soya has also diversified into Renewable Energy and Plantations in the recent past.

Ankesh Shahra’s ideology is to work towards renewing, to reinterpret and reaffirm Ruchi Soya’s backwards integration strategy into agricultural plantations in Asia and Africa

His stance towards Food security is indeed a prevalent concern, he stresses upon the on three pillars Food security is built upon
* Food availability: sufficient quantities of food available on a consistent basis.
* Food access: having sufficient resources to obtain appropriate foods for a nutritious diet.
* Food use: appropriate use based on knowledge of basic nutrition and care, as well as adequate water and  sanitation.

That enables the group to introspect and look ahead, to clarify and consolidate company’s positions as top FMCG players in India.
 

Govt's public debt rose to over Rs 40 lakh crore

The government's total public debt in the October-December period in this financial year grew by 3.6 per cent to Rs 40,48,219 crore from Rs 39,06,828 crore in the previous quarter.

"This represented a quarter-on-quarter increase of 3.6 per cent (provisional) compared with an increase of 3.8 per cent in the previous quarter (Q2 of FY13)," the Quarterly

Report on Debt Management released by the Finance Ministry said. The total debt excludes liabilities that are not classified under public debt.

Internal debt constituted 90.7 per cent of public debt, compared with 90.5 per cent at the end of the September quarter.

The outstanding internal debt at Rs 36,69,823 crore constituted 36.1 per cent of GDP compared with 34.8 per cent at September 2012 end.

The report further said the liquidity conditions in the economy remained tight during the quarter with the liquidity deficit. The RBI reduced CRR by 25 basis points, effective November 3, 2012 and purchased securities worth Rs 39,057 crore through OMO auctions during the quarter.

The net amount provided under Liquidity Adjustment Facility (LAF) operations increased almost consistently during the quarter, it added.

The cash position of the government during third quarter was comfortable and remained in positive territory for the entire quarter, the report said, adding the issuances of treasury bills were reduced during the quarter in view of the cash position.

On slowdown in net inflows from foreign investment during October-November, the report said that the decline was mainly on account of FDI as gross investment into India [ Images ] showed lower inflow while outbound investment increased.

Gross tax collections during April-November at 50.5 per cent of budget estimate (BE) were marginally lower than 50.7 per cent a year ago.

The report revealed that non-tax revenue at 46.3 per cent of Budget Estimates was lower than 57.7 per cent in the same period of the previous year.

The debt report said that total expenditure showed containment as per cent of BE at 58.2 per cent during April-November 2012-13 as compared with 60.5 per cent during the corresponding period of the previous year.

Expenditure reduction in terms of percentage to BE was seen under both categories -- revenue and capital.

"As a result of expenditure containment outweighing the revenue shortfall, revenue deficit and fiscal deficit during April-November 2012 at 91.2 per cent and 80.4 per cent of BE were lower than 91.3 per cent and 85.6 per cent, respectively, during the same period a year ago," it added.

Slowdown in net capital inflows coupled with pressure in trade account balance strained the exchange rate leading to depreciation of Rupee from 52.7 (per USD) at end-September 2012 to 54.5 at end-November 2012. Pressure on Rupee continued in December and it closed at 54.8 at end-December 2012.

In the third quarter, the government issued dated securities worth Rs 1.55 lakh crore taking the borrowings during April-December 2012 to Rs 5.1 lakh crore constituting 89.5 per cent of Budget Estimates for the fiscal.

Source: http://www.rediff.com/business/report/govts-public-debt-rises/20130124.htm

Consumers should get lowest mobile rates: Siba

A day after mobile charges were hiked by leading operators, Telecom Minister Kapil Sibal [ Images ] on Thursday said consumers should be offered the lowest call rates. "We want consumers to be offered calls at lowest rates," Sibal told PTI.

Bharti Airtel [ Get Quote ], India's [ Images ] largest mobile phone operator, and Idea Cellular [ Get Quote ] have raised call charges mostly by way of a reduction in free minutes or air-time available on most plans.

Others like Vodafone are likely to follow suit soon. Another mobile services provider Uninor, however, said it has no plans as of now to increase call rates.

"As a young operator focused on the mass market through basic services on a pre-paid only platform, Uninor has made a commitment to remaining 'Sabse Sasta' for its customers. This has been our position so far and will continue to be so in all the circles we operate in," Uninor said in a statement.

Meanwhile, government sources said the Centre is likely to approach sectoral regulator Trai regarding yesterday's hike in call rates.

"We will nudge Trai to do something," a source said. Meanwhile, Trai Chairman Rahul Khullar said, "Forbearance does not mean that we have closed our eyes.

Forbearance reposes faith on operators and we realise there is competition in the market." The Telecom Regulatory Authority of India (Trai) had decided to continue with forbearance in tariff regime that gives freedom to decide on call and other services rates.

Indian mobile phone industry, known for the lowest telecom services rates, is witnessing a hike in call rates now.

The hike in call charges come as companies face thousands of crore in one-time surcharge on airwaves they hold beyond a threshhold.

Source: http://www.rediff.com/business/report/consumers-should-get-lowest-mobile-rates-sibal/20130124.htm

Reforms have dispelled policy paralysis fears: Kochhar

Recent measures by Indian government to push economic reforms have dispelled fears of policy paralysis, while some more steps are needed for reviving investments and ensuring that household savings go into productive sectors, top banker Chanda Kochhar [ Images ] said.

She said positive momentum is expected to be seen in the Indian economy going forward.

On the macro-economic scenario, Kochhar, ICICI Bank [ Get Quote ] MD and CEO, told PTI in an interview: "Firstly, with inflation stabilising, monetary policy is likely to be supportive of growth.

"Secondly, the recent policy actions by the government, such as the steps with respect to fiscal consolidation and the passage of key legislations, have demonstrated its commitment to creating an enabling environment for growth, and gone a long way in dispelling the fear of policy paralysis."

Kochhar, who is here for the World Economic Forum's annual meeting added: "Thirdly, India's [ Images ] growth is driven by strong domestic factors, as a result of which we are much better placed than other countries.

"We need to focus on reviving the investment cycle, for which we need effective decision making to ensure that projects move on the ground. Looking at the world, we are seeing a recovery in China and some positive indicators in the US, though resolution of fiscal issues in the US remains a key factor to watch."

About the global economic scenario, Kochhar said Europe is seeing continuing growth challenges, but policy measures taken in the last few months have helped to stabilise markets and substantially remove the risk of a systemic shock event.

Asked about her wish list for this year's Union Budget, she said: "All stakeholders are keenly awaiting the Budget's it comes on the back of a range of policy measures announced by the government.

"We hope that the Budget would take forward the process of fiscal consolidation and at the same time focus on measures that promote growth."

Kochhar further said: "Measures to encourage financial savings would also be important, given the need to ensure that household savings are channelised into productive sectors."

Concerns have been raised in the recent past about household savings going into idle assets like gold, even as many productive sectors wait for funding.

The government has recently taken some steps to discourage imports of gold. The industry is seeking measures to make other asset classes, such as equity, more attractive to discourage a huge flow of savings into unproductive asset class like gold.

Besides, the government has liberalised FDI norms for retail as well as aviation sectors and partially decontrolled diesel prices, among other similar steps.

Source: http://www.rediff.com/business/report/reforms-have-dispelled-policy-paralysis-fears-kochhar/20130124.htm

RBI may cut repo rate by 25 bps: RBS

British banking major RBS on Thursday said it expects the Reserve Bank to cut key rate by 25 basis points or 0.25 per cent in its monetary policy review next week, leaving the cash reserve ratio (CRR) unchanged.

"Our house view is that the RBI will go for a 25 bps cut in repo (the short-term lending rate) but will not cut the cash reserve ratio (which is the portion of deposits banks park with the RBI for solvency purposes).

Instead, it will continue doing open market operations to inject liquidity," RBS India Managing Director and head of markets Ramit Bhasin said.

Quoting from its survey, in which 109 clients, including corporates, banks, insurance companies and mutual funds participated, Bhasin said a large majority (80 per cent) of the polled clients expect a cut in the repo rate while the rest expect a CRR cut.

"We have never seen such unanimity on rate cut. Almost all of them expect either a cut in the repo rate or the CRR."

However, the market is very cautious on the long-term scenario and expects a cut of only 0.50 per cent in the repo rate till the end of 2013 as against the RBS' prediction of a 1 per cent cut, the RBI Managing Director said.

Bhasin said due to so many years of government inaction, expectations within the market are subdued, leading to a fatigue but traditionally the policymakers have delivered only when pushed against the wall, as is the case now, and hence they will deliver above the expectations.

He said factors like the commitment to rein in fiscal deficit, steps like the recent hike in railway fares, a cut in subsidies, inflation coming in the 6-7 per cent band, and the recent announcements on the fuel front, make it possible for a 100 bps cut through the course of the year.

"I think there would be a cut per quarter with some pauses in between to signal that we are not there in a rate cut cycle," Bhasin said.

Additionally, as the Finance Ministry takes pro-growth steps, there would also be pressure from the political side on the RBI to bring down lending rates, Bhasin said.

RBI Governor Subabrao will be announcing the quarterly credit policy review on Tuesday and analysts widely expect a 0.25 per cent cut in the key rates.

The RBI has maintained rates at a high level, citing the uncomfortable headline inflation, which has of late been showing signs of cooling off.

On the currency front, the survey findings said the rupee will appreciate marginally to trade at 52.75 per USD dollar by December. But RBS expects the Indian unit to gain more lost grounds and trade at 50-52 levels, he said.

Bhasin said an appreciation in the domestic currency will be possible largely because of a jump in capital inflows.

Source: http://www.rediff.com/business/report/rbi-may-cut-repo-rate-by-25-bps/20130124.htm

Govt to set up committee to probe Walmart issue: Pilot

The government on Thursday said it will set up a committee to look into the allegations that US retail giant Walmart indulged in lobbying activities in India to gain entry in the country's market.

Corporate Affairs Minister Sachin Pilot said the government will set up a committee to look into the matter.

"Minister of Parliamentary Affairs (Kamal Nath) has assured Parliament that he will set up a committee to look into the allegations (in the Walmart case) that have come in the media and we are working on that," Pilot said after meeting senior executives from country's top firms.

As per the proposal, the government will set up one-man commission to be headed by a retired High Court Chief Justice or a judge.

The move comes over a month after the proceedings of Parliament during the Winter Session were paralysed over the allegations that the US retail giant indulged in lobbying here to gain entry into the Indian market.

According to the proposal of the Corporate Affairs Ministry, the Commission, to be set up under the Commission of Inquiry Act, 1951, will submit its report within three months of its constitution.

The Terms of Reference include probe into "recent media reports regarding their lobbying activities" and "whether Wal-Mart undertook any activity in India in contravention of any Indian law".

Under the Commission of Inquiry Act, it is obligatory on part of the government to table the probe report as well as the action report in Parliament.

Source: http://www.rediff.com/business/report/govt-to-set-up-committee-to-probe-walmart-issue/20130124.htm

High airfares: DGCA to look into tariff structure

The DGCA would look into the tariff structure of Indian airlines in view of the wide range of the base prices of air tickets, after the Supreme Court observed that the price bands were too wide and directed it to examine the matter.

Efforts would be made to compress these price bands, which range from 12 to as high as 22 set by different airlines on each sector, and make air fares more transparent so that the travelling public are clear about the cost of travel, official sources said.

While there was a need to make the price bands more transparent, there should also be some rationale behind the huge differences between the highest and the lowest air fares in these price bands, they said.

Justifying the higher price bands, airline industry sources said that they have to take into account, apart from the actual costs of air travel, the variable costs on inputs like jet fuel, whose prices continue to rise, and staff costs.

While the Airlines Passengers Association of India (APAI) has welcomed the apex court's directions, some aviation experts have also objected to the inclusion of congestion charges or extra charges of Rs 50 for giving a printout of the ticket.

"When most airlines are showing high on-time performance, then why should they charge congestion charges," asked Debashish Saha of the Aeronautical Society of India.

Giving an example, he said there used to be severe congestion earlier at the IGIAirport with planes hovering for 30 minutes before being cleared to land.

"Now it has three operational runways and there are generally no delays, barring the foggy days. Then what is the justification for the congestion charge," he asked.

Regarding the price for a ticket printout, Saha said under the Carriage by Air Act, it is the contractual obligation of an airline to provide a ticket to the passenger. "Why should an extra fee be levied?"

The Carriage by Air Act of 1972, in the section 'Documents of Carriage', says that "for the carriage of passengers, the carrier must deliver a passenger ticket" with details like the place and date of issue, the departure place, the destination and name of the carrier or carriers.

Expressing concern over the massive differential between the lowest and highest air fares, the Supreme Court had on Wednesday directed the DGCA to examine the tariff structure of the airlines, observing that there were several price bands for fixing the base price for an air ticket.

"We are of prima facie view that regarding wide range of basic fair, it would be necessary for the DGCA to examine the tariff structure of the airlines," the bench had observed. It had also restrained Indian carriers from levying transaction fee in any form.

While most of the major carriers have 13-14 fare levels on most sectors, no-frill carrier GoAir has as many as 22 one-way basic fares ranging from Rs 3,770 to Rs 24,200 for one-way travel between Delhi [ Images ] and Mumbai [ Images ] in December last year.

Its no-frill competitor IndiGo's [ Images ] tickets ranged from the lowest of Rs 3,770 to the highest level of Rs 16,449, while SpiceJet's was Rs 3,770 and Rs 15,489.

On the same sector in the same month, Air India [ Images ] charged the lowest fare of Rs 3,920 and the highest of Rs 17,308, while the fares of Jet Airways [ Get Quote ] ranged from Rs 3,970 to Rs 23,950. Similarly, Jet Konnect fares on Delhi-Mumbai sector was Rs 3,970 and Rs 24,100.

Over and above these basic fares, a passenger also has to pay a passenger service fee, airport charges and a fuel surcharge.

Source: http://www.rediff.com/business/report/high-airfares-dgca-to-look-into-tariff-structure/20130124.htm

Global economic recovery 'weakening', warns IMF

The International Monetary Fund (IMF) has warned again of a weakening global economic recovery despite government efforts to stimulate growth.

The IMF said in its latest report that the global economy is likely to grow at a slower rate than previously forecast over the next two years.


It said it now expected the eurozone to remain in recession in 2013, having previously predicted growth, reports the BBC. The UK''s growth forecasts have also been revised down. The IMF said continued problems in the eurozone were weighing on the global economy.

The eurozone''s economy is now forecast to shrink by 0.1 per cent this year. Just three months ago the IMF had forecast 0.2 per cent growth. Earlier there were signs that some confidence had returned to European markets, with Portugal returning to the bond market to borrow money from investors for the first time since seeking a eurozone bailout in 2011.

Its offering of 2bn euros of five-year bonds was four times oversubscribed by investors. But overall, the IMF now forecasts that the world economy to grow by 3.5 per cent this year and 4.1 per cent in 2014, 0.1 percentage points lower than stated in October''s forecasts.

Most of that growth is predicted to come from developing economies, rather than the developed countries still emerging from recession.

The prospects for the UK''s economy have also worsened in the last three months, the IMF forecasts suggest. Previously it forecast growth of 1.1 per cent this year and 2.2 per cent next year.

That has now been revised down to 1 per cent and 1.9 per cent growth respectively. The IMF said the challenges facing developed economies remained the same.

First, they need steady and sustained fiscal consolidation. Second, financial sector reform must continue to decrease risks in the financial system. Addressing these challenges will support recovery and reduce downside risks, the report said.

Source: http://www.rediff.com/business/report/global-economic-recovery-weakening-warns-imf/20130124.htm

ITC becomes most influential stock in Sensex

Diversified group ITC on Thursday surpassed Reliance Industries [ Get Quote ] as the most influential stock on the Sensex, following a spurt in the stock price.

At the end of trade, ITC commanded 9.69 per cent weight in the BSE 30-share index, Sensex, while RIL had 9.61 per cent weight, followed by Infosys [ Get Quote ] (8.06 per cent).

Shares of ITC ended with a gain of 1.64 per cent, while RIL was down 0.98 per cent on the BSE, in an overall weak stock market.

Weight of a stock is measured by the value of a company's free-float or non-promoter shares that can be freely traded in the market.

ITC had first replaced RIL as the most influential stock on Indian bourses on April 17 last year, but the very next day the energy major regained the status.

RIL, however, remains the country's most valued company in terms of market capitalisation. The energy major commands a market value of Rs 2,95,840 crore.

ONGC [ Get Quote ] is the second most value company with a m-cap of Rs 2,87,721 crore, followed by TCS [ Get Quote ] (Rs 2,59,478 crore), ITC (Rs 2,34,300 crore) and Coal India [ Images ] (Rs 2,17,093 crore).

Source: http://www.rediff.com/business/report/itc-becomes-most-influential-stock-in-sensex/20130124.htm

Premji says son will not be CEO of Wipro

IT czar Azim Premji has said his son Rishad will never be the chief executive of his company Wipro, but will represent promoter ownership on the company’s board.

Rishad, 35, joined Wipro in 2007 as Business Head for Special Projects in the banking and financial services vertical and rose to become Chief Strategy Officer three years later.

Premji, who founded Wipro, said becoming CEO was not the career path for the eldest of his two sons.

“He (Rishad) is not going to be the chief executive officer, that’s not the career plan for him but, he would be representing ownership obviously,” Premji, chairman of Wipro, said in television interviews on sidelines of World Economic Forum here.

Azim Premji directly owns 3.7 per cent in the company, while entities related to him own over another 74 per cent.

Rishad has a direct ownership of 0.03 per cent shares in Wipro.

Rishad has for long been speculated to be a natural choice for taking over the company’s operations.

Prior to joining Wipro, Rishad, a management graduate from Harvard Business School, worked with Bain & Co, working across segments like consumer products, automobiles, telecom and insurance.

There have been speculations of him being appointed as the CEO of the now demerged entity of Wipro, which will include the non-IT business.

The non-IT businesses of Wipro, which includes lighting, furniture, consumer care products and infrastructure engineering services, was hived off last year to focus on the core information technology business. It contributes about 10 per cent of the company’s revenues.

There have also been discussions around succession plans at Wipro after the retirement of Azim Premji, who is 67 now.

ING to sell its stake in Vysya Life Insurance

ING announced on Wednesday that it has agreed to sell its 26 per cent interest in ING Vysya Life Insurance Company Ltd to its joint venture partner Exide Industries Ltd.

ING’s exit from the Indian life insurance joint venture is part of the previously announced intended divestment of ING’s Asian insurance and investment management businesses.

Subject to regulatory approvals, the transaction is expected to close in the first half of 2013.

ING has a 44 per cent stake in ING Vysya Bank and also a presence in the fund management business in India.

Exide Industries is India’s largest producer of automotive and industrial batteries, with seven manufacturing plants located across the country. Exide Industries has been a shareholder of ING Vysya Life Insurance since 2005.

Rajat Gupta seeks reversal of insider trading conviction

Former Indian-American director of Goldman Sachs, Rajat Gupta, has asked a US court to reverse his insider trading conviction, objecting to prosecution’s use of wiretaps supposedly implicating him.

In a brief filed Friday at the 2nd US Circuit Court of Appeals in New York, Gupta’s lawyers argued wiretaps of now-imprisoned Sri-Lankan American hedge fund manager Raj Rajaratnam amounted to “hearsay statements” and should not have been presented to the jury.

“Without a proper basis for admission, these untestable, unreliable hearsay statements had no place in a criminal trial, and their admission alone compels reversal,” Gupta’s lawyers wrote.

A federal jury convicted Gupta, 64, in June of leaking Goldman boardroom secrets to Rajaratnam, the convicted Galleon Group hedge fund manager, who is currently serving an 11-year prison term for insider trading.

US District Judge Jed Rakoff in Manhattan sentenced Gupta to two years in prison. But a federal appeals court in Manhattan in December granted his request to remain free during his appeal.

Rakoff, who presided over the trial, originally ordered Gupta to begin serving his sentence on January 8.

The judge erred when he allowed the government to present wiretaps of conversations not involving Gupta and limited Gupta’s defence case by barring evidence that Rajaratnam had alternative sources of non-public information about Goldman Sachs, his lawyers wrote.

Rakoff “significantly curtailed” Gupta’s principal defences and made erroneous rulings in the prosecution’s favour that “decisively tipped the scales” against him, they argued.

Gupta challenged the government’s use of court-authorised wiretaps, saying Rakoff shouldn’t have permitted prosecutors to play recordings of September and October 2008 telephone calls between Rajaratnam and others that didn’t include Gupta.

Rakoff also erred when he didn’t allow Gupta’s daughter to testify that he told her he had discovered that Rajaratnam had “swindled” him when he’d withdrawn money from the fund. Gupta lost $10 million, his lawyers said.

Google’s profit rises despite Motorola woes

Google’s net profit rose in its fourth quarter despite the financial drag caused by its Motorola Mobility unit.

Google earned $2.9 billion during the fourth quarter as compared to a net income of $2.7 billion at the same time last year.

The numbers are not comparable as Google Inc didn’t own Motorola Mobility in 2011, having completed its $12.4 billion acquisition of the troubled handset maker eight months ago.

Google’s revenue during the fourth quarter of 2011 surged 36 per cent from the previous year to $14.4 billion.

More advertising poured into Google during the holiday shopping season, fueling a moneymaking machine that has steadily churned out higher profits since the company went public in 2004. Google’s fourth-quarter ad revenue totaled $12.1 billion, a 19 percent increase from the previous year. (With AP inputs)

Asian Paints shares gain as Q3 net jumps 31 per cent to Rs 335 cr

Asian Paints has reported consolidated net profit of Rs 335.23 crore for the third quarter ended December 31, 2012.

The company had posted net profit of Rs 256.86 crore during the same period last financial year, Asian Paints Ltd said in a filing to the Bombay Stock Exchange.

Net sales in the third quarter stood at Rs 3,037.14 crore. It had reported net sales of Rs 2,558.86 crore during the same period of 2011-12.

Asian Paints said the consolidated results for the quarter were not comparable to the year-ago period due to the restructuring of its business during the period.

Shares of Asian Paints surged 2.42 per cent to Rs 4,400.30 on the Bombay Stock Exchange. Similarly, the scrip jumped 2.92 per cent on the National Stock Exchange to Rs 4,413.05.

Bharti Airtel stock surges over 4%

 Mumbai, Jan 23:  Shares of Bharti Airtel on Monday were up by over 4 per cent as it hiked rates for pre-paid services and reduced free minutes usage barely a month after hiking price of 2G data plans.

After surging nearly 5 per cent during the day, shares of the telecom major finally closed at Rs 367.25, up 4.44 per cent on the BSE.

At the NSE, the stock ended at Rs 367.65, up 4.55 per cent from its previous close.

The scrip was the top gainer among blue-chip companies on both the key indices – Sensex and Nifty.

Idea Cellular was up 0.72 per cent at Rs 118.50.

“Telecom stocks rose on the back of news that Bharti Airtel has raised mobile phone call tariffs,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.

According to market sources, Airtel has reduced free minutes by 10 to 25 per cent and has increased price of SPVs in the range of Rs 5 to Rs 15.

Another operator Idea Cellular has also withdrawn some of the promotional offers in various circles, sources said.

Budget 2013-14 should facilitate a better business environment

The government should be looking at outcome-based spending and not just outlays. It should in no way interfere with the price discovery process of any commodity and create price caps that impede supply, create shortages and price rises. It’s time the government moves away from a cash system of accounting to an accrual system of accounting.

The fiscal deficit, urban planning and facilitating better environment for businesses that create more jobs should be the priority of the government.

Taxation should be for everybody, however minor, as it brings in a sense of accountability and contribution. Yes, there is a definite case to increase income tax rates on the rich, especially the ones with inherited wealth. The cut-off in income for the rich can be anything above Rs 20 lakh.

Our level of expectation for budgets has come so low that anything that government comes up with, we rate it 7 on 10.

Kingfisher needs at least 10 billion rupees to restart: Ajit Singh

(Reuters) - Kingfisher Airlines(KING.NS) needs at least 10 billion rupees to restart its grounded operations and must also demonstrate an ability to sustain itself for at least 6 months, Civil Aviation Minister Ajit Singh said on Tuesday.

Earlier in the day, a senior government source said India was willing to support a rescue plan from Kingfisher if it could settle months of salary due to frustrated employees, sending the airline's shares up as much as 9 percent.

The comments came after Kingfisher Chief Executive Sanjay Aggarwal met officials at the ministry of civil aviation to discuss the plan, which was earlier rejected by the regulatory Directorate General of Civil Aviation (DGCA).

Singh said all stakeholders, including banks, airports and oil companies, will have to give no-objection certificates for the carrier to fly again.

Kingfisher has already received no-objection certificates from oil companies and some aircraft leasing companies to restart operations, a senior regulatory source said last week.

The airline, which is estimated to owe $2.5 billion in debt to banks, staff, vendors and others, has submitted a $119 million revival plan to the regulators.

An official at the DGCA said earlier this month that the plan would not be sufficient to rescue the airline.

Kingfisher shares, which hit a lifetime low of 7.05 rupees last August, closed up 7 percent at 14.45 rupees on the National Stock Exchange.

($1 = 53.8650 rupees)

World Economic Forum: Coca-Cola pledges $100,000 for projects by young people

DAVOS: Beverages giant Coca-Cola today announced $100,000 fund for a WEF initiative aimed at helping young people take action on issues they care about in more than 200 cities worldwide.

The Global Shapers Community, set up by the World Economic Forum in 2011 with the aim of engaging young people as active agents of change, is also supported by DST Global Advisors and Reliance Industries.

The funding is offered in a competition aimed at more than 1,700 entrepreneurs, social activists and "positive disruptors" who make up the 'Global Shapers Community', WEF said in a release.

"It will provide seed financing for Shapers' projects that address some of the most pressing problems in their communities," it said.

Muhtar Kent, Chairman and CEO of Coca-Cola Company said a challenge to spark and expand innovative ideas from the young leaders is what the world needs.

"With more than half of the world's population under age 27, it is clear that solving current and future challenges is dependent upon involving the ideas and energy of the millennial generation," he said.

To win, the release said, Shapers must demonstrate the benefits of their initiatives over the next 12 months.

The winning project will be granted $ 50,000 to expand its reach, while five additional projects will each be granted $ 10,000 to sustain and expand their efforts.

Global Shapers are 20 to 30 years of age, with exceptional potential for future leadership roles in all sectors of society.

World Economic Forum meet begins; India to hard sell retail, IT sectors

DAVOS: Indian leaders are all set to showcase the country as an attractive investment destination, especially for retail and IT, at this year's WEF meet that began today at the snow-laden Swiss town amid uncertain global economic environment.

This year's edition of World Economic Forum (WEF) meet on the theme 'Resilient Dynamism' would see participation of high profile leaders like German Chancellor Angela Merkel. The meet is expected to mostly deliberate on ways to contain fiscal woes and boost global growth.

Urban Development and Parliamentary Affairs Minister Kamal Nath accompanied by Commerce and Industry Minister Anand Sharma, Heavy Industries and Public Enterprises Minister Praful Patel and Power Minister Jyotiraditya Scindia would hard sell India investment story to global audience.

Indian corporate honchos including Mukesh Ambani, Lakshmi Mittal, Anand Mahindra, Rahul Bajaj, Sunil Mittal, Azim Premji and well known banker Chanda Kochhar are expected here.

With Indian government moving ahead with reforms, retail sector is expected to be the eye candy from the Indian side.

'Its (India) is a land of land of billion opportunity with 260 per cent retail business growth by 2020,' read a banner on city buses. The banner, put out by the India Brand Equity Foundation (IBEF) also reflects optimism over FDI in retail, mainly after the government on Monday approved Swedish major IKEA's Rs 10,000 crore investment proposal.

At the same time, Infosys, TCS, Wipro, HCL and Mahindra Satyam, among others, would present the country's potential in the growing IT sector. Ambani, Mahindra and other businessmen would assert the growth potential offered by India for investors in various other sectors.

Among the galaxy of global leaders like British Prime Minister David Cameron and Russian Prime Minister Dmitry Medvedev, heads of World Bank, IMF and CEOs of many blue-chip firms would be in attendance.

After approving Swedish major IKEA's Rs 10,000 crore investment proposal, Anand Sharma on Monday had said the decision would "resonate not only in Davos but in the all major countries of the world".

The Indian delegation, comprising of about 100 business and political leaders, is headed by Union Minister Kamal Nath, who emerged as one of the key strategists in the passage of contentious retail FDI bill in Parliament last month.

Representatives of world's largest retailer Walmart are also present at the WEF meet.

Apart from exchanging views on continuing financial turmoil in the US and euro zone as well as recent developments in the African continent, the WEF meet would deliberate on finding avenues to revive global growth and create more jobs.

This edition of WEF meet is anticipated to host over 1,500 top leaders and thousands of others including spouses of rich and powerful, journalists and support staff.

The streets of Davos are brimming full of huge banners put out by various nations including India and Russia, all of them pushing themselves as attractive investment destinations.

Meanwhile, anti-WEF protesters have also pitched their tents in the snowy ambience.

Providing room for optimism, a WEF survey yesterday had said that sentiments about global economy improved in the 2013 first quarter, primarily due to positive signs debt-laden euro zone and hopes that worst fears about US debt turmoil would be allayed.

America has multiple budget deficits: Lawrence Summers

Since the election, American public policy debate has been focused on prospective budget deficits and what can be done to reduce them. The concerns are in part economic, with a recognition that debts cannot be allowed, indefinitely, to grow faster than incomes and the capacity repay.

And they have a heavy moral dimension with regard to this generation not unduly burdening our children. There is also an international and security dimension: The excessive buildup of debt would leave the United States vulnerable to foreign creditors and without the flexibility to respond to international emergencies.

While economic forecasts are uncertain, the great likelihood is that debts will rise relative to incomes in an unsustainable way over the next 15 years without further actions beyond those undertaken in the 2011 budget deal and the end of year agreement that averted a fall over the "fiscal cliff." So even without the risk of self-inflicted catastrophes - like the possible failure to meet debt obligations or the shutting down of government - it is entirely appropriate for policy to focus on reducing prospective deficits.

Those who argue against a further concentration on prospective deficits on the grounds that - contingent on a forecast that assumes no recessions - the debt to gross domestic product ratio may stabilize for a decade counsel irresponsibly. Given all uncertainties and current debt levels, we should be planning to reduce debt ratios if the next decade goes well economically.

Reducing prospective deficits should be a priority - but not an obsession that takes over economic policy. This would risk the enactment of measures such as pseudo-temporary tax cuts that produce cosmetic improvements in deficits at the cost of extra uncertainty and long-run fiscal burdens. It could preclude high-return investment in areas such as infrastructure, preventive medicine and tax enforcement that would, in the very long term, improve our fiscal position.

Economists have long been familiar with the concept of "repressed inflation." When concern with measured inflation takes over economic policy and drives the introduction of price controls or subsidies to hold down prices, the results are perverse. Measured prices may not rise and so the appearance of inflation is avoided. But shortages, black markets, and enlarged budget deficits appear. The repression is unsustainable. When it is relaxed, measured inflation explodes, as in the case of the Nixon price controls in the early '70s.

Just as repressing inflation is misguided, so also repressing budget deficits can be a serious mistake. As with corporate managements judged only on a single year's earnings take perverse steps that are ultimately harmful to shareholders, government officials in the grip of a budget obsession repress rather than resolve deficit issues. When arbitrary cuts are imposed, government agencies respond by deferring maintenance leading to greater liabilities later. Or compensation is provided in the form of promised retirement benefits that are less than fully accounted for, with the ultimate burden on taxpayers increased. Or measures like the recent Roth IRA legislation are enacted, encouraging taxpayers to accelerate their tax payment while reducing their present value.

As important as avoiding the repression of budget deficits is insuring that focus on the budget deficit does not come at the expense of other equally real deficits. Interest rates in the United States and much of the industrialized world are remarkably low right now. Indeed in real terms the government's cost of borrowing has recently been negative for horizons as long as 20 years.

Microsoft in talks to invest up to $3 billion in Dell: CNBC

(Reuters) - Microsoft Corp (MSFT.O) is in discussions to invest between $1 billion and $3 billion of mezzanine financing in a buyout of Dell Inc (DELL.O), CNBC cited unidentified sources as saying on Tuesday.

Private equity outfit Silver Lake Partners is trying to finalize a bidding group to take the world's No. 3 PC maker private, and has opened discussions with potential equity partners, sources familiar with the matter have said.

Dell also has formed a special committee to take a close look at any potential deal on the table, multiple sources with knowledge of the matter told Reuters. If successful, it would be one of the largest corporate buyouts since before the global financial crisis.

Microsoft, which accelerated its foray into computer hardware in 2012 with the launch of the Surface tablet, will provide the capital in the form of mezzanine financing according to CNBC, which is a hybrid of debt and equity.

Microsoft and Dell both declined to comment on the CNBC report. Shares in Dell gained climbed 2 percent to $13.08 in late morning trade.

(Reporting by Edwin Chan; Editing by Gerald E. McCormick and Tim Dobbyn).

Ruchi Group: Spreading Prosperity, Fostering Growth, Enriching Lives

Ruchi Group of Industries is a well-known Indian conglomerate with business interests in diverse field like FMCG, Oils, Steel, Cement, Power, Information Technology, Real Estate, Dairy Products, Agro Commodities, Logistics and Warehousing. The group has its corporate headquarters in Indore, with offices and plants located at major business centers in the country. Ever since our foundation, we have pursued an untainted path of growth despite national and international competition.

Hot tips for 2012

No, that’s not a typo. The ‘hot tips for 2013’ articles are upon us. Less common are the articles on how last year’s tips fared.

The winners, of course, crow loudly about their great skill. The losers go quietly about their business, making more predictions for this year, hoping they’ll get lucky. It’s like being the CEO of a publicly listed company—all upside, no downside.

Of course, some publications and predictors don’t take their share recommendations too seriously, incorporating a dartboard or a celebrity tipster.That’s an appropriate way to treat ‘hot tips for the year’ articles. If you really needed to invest over just 12 months, the sensible approach would be to hold cash, term deposits or bonds.

So how did the 2012 tipsters go?Let’s go international to avoid any difficult conversations in the pub. Forbes magazine’s ‘Experts top stock picks for 2012’ was loftily acclaimed and self-described as ‘some of the best picks from some of the best minds on Wall Street’.

They did about as well you’d expect—from a dartboard. Chart 1 shows that, compared to the US’s S&P 500 index, the panel of experts had three outperformers, five underperformers and two shockers.

That shouldn’t surprise you. As equity market performance in 2012 was largely driven by banks and other high yielding shares, those that didn’t opt for yield (and who would in a ‘pick a winner’ article?) missed the boat entirely.

Chart 1: Forbes Top 10 Share Tips vs S&P 500 Index (US)

If you follow newspaper share recommendations this raises an important point. ‘Hot tips for the year’ articles encourage the predictors to go for broke—the all upside, no downside, phenomena at work. If you win, you’re a hero; if you don’t, no one remembers anyway and you won’t be held to account.

So going for broke makes a lot of sense to the tipsters, but it’s probably not how you want to select stocks for your portfolio. Even regular share recommendations are a cause for concern. The average investor has no way of understanding the experience, methodology or long term track record of the typical newspaper commentator.

If you can’t rely on newspaper share tips, what recommendations can you trust?

There are some simple rules of thumb. First, only trust advice you’ve paid for (or stolen from someone who paid for it). The adage, ‘if you pay peanuts, you get monkeys’ was invented for share recommendations.

Secondly, get access to the long-term performance of all your advisor’s recommendations, preferably through several market cycles. If they’re not easily available, there’s usually a reason for it. 

Finally, if your advisor has a history of outperformance, establish why that might be. By definition, outperformance is a rarity. If you think you’ve stumbled on someone that can deliver it to you, find out what they’re doing differently from everyone else. If you don’t do any of these things, then you may as well get your share tips from a newspaper, or a dartboard.

Richard Livingston is the managing director of Intelligent Investor Super Advisor, an online service providing SMSF and investing advice. This article contains general investment advice only (under AFSL 282288).


Read more: http://www.theage.com.au/money/investing/hot-tips-for-2012-20130116-2cshv.html#ixzz2ITP7NtTr

Passenger records for airports

AUSTRALIA'S major airports
 experienced substantial growth in 2012,
with a record number of passengers
passing through Sydney Airport.

Sydney Airport served 36.9 million passengers in 2012, a 3.6 per cent increase on the previous year, while Melbourne Airport's passenger numbers exceeded 29 million, a 5 per cent increase on 2011.

December was Sydney's busiest month, with passenger numbers growing by 5.2 per cent.

Sydney Airport chief executive Kerrie Mather said international passenger numbers grew by 5.3 per cent and domestic over 2.7 per cent for the year.

''It was exciting to see such a significant increase in both international and domestic low-cost-carrier capacity, in particular Scoot, Jetstar and AirAsia X internationally and the expansion of domestic services by Jetstar and Tiger,'' she said.

She said the biggest international growth was from Malaysia and Singapore, with incoming passengers increasing by 59 per cent and 34 per cent respectively.

Outbound international passengers from Sydney Airport grew by 5.9 per cent for the year, while inbound international numbers increased by 4.8 per cent in 2012.

Brisbane Airport also saw a record 21.5 million passengers pass through its terminals, up 4.5 per cent on 2011.

Managing director Julieanne Alroe attributed the rise to the resources boom fuelling demand for flights to Queensland, as well as cheaper airfares.

Melbourne Airport chief executive Chris Woodruff said continuing international passenger growth and increased capacity on domestic services had led to the number of passengers reaching 29,297,387 in the Victorian capital in 2012.

There had been an increase of 6 per cent in international passengers compared to 2011, with strong growth from New Zealand, Hong Kong, China, India, Sri Lanka and Vietnam.

''During the year, airlines introduced significant capacity increases on domestic routes which stimulated demand,'' Mr Woodruff said.

Read more: http://www.theage.com.au/business/passenger-records-for-airports-20130118-2cyug.html#ixzz2ITOBxiY1