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{"root":[{"title":"Airtel, Idea, RCOM drop on fears of fierce bidding","content":"Biswajit Baruah, ET Bureau Mar 28, 2015, 04.07AM IST(Reflecting the mood, analysts\u2026) MUMBAI: Shares of telecom companies such as Bharti Airtel, Idea Cellular and Reliance Communications (RCOM) dropped more than 5% on Friday on fears of aggressive bidding for airwaves, a development that may exert pressure on companies' balance sheets and cash flow, and restrict their expansion plans. Reflecting the mood, analysts maintained a cautious outlook on the sector, saying fresh buyers should stay away from this space in the near-term. On Friday, the department of telecommunications (DoT) released details of bidders at the recently concluded airwaves auction, where the government mopped up Rs 1.1 lakh crore from the spectrum put up for auction. The prices for the spectrum were considerably higher than the reserve price, said analysts. \"Bharti Airtel and Idea Cellular have paid a little more for the spectrum than what the markets were expecting,\" said Mayuresh Joshi, VP, (institutional) Angel Broking. \"Going forward, Reliance Jio's pricing for its services would be closely watched. However, investors should note that the overhang on telecom stocks over spectrum is probably over.\" Telecom stocks came under intense selling pressure on Friday \u2014 Bharti Airtel fell 5.64% to Rs 376. Idea Cellular dropped 4.96% to Rs 171 after touching new 52-week high of Rs 187 in early trade. RCOM touched a new 52-week low of Rs 56.90 before closing at Rs 58.25, down 3.56%, while Tata Teleservices (Maharashtra) ended 1.54% lower at Rs 7.68. Shares of some telecom companies \u2014 Bharti Airtel, Idea Cellular \u2014 have had a good run in the past one year, gaining 21% and 23%, respectively, while Reliance Communications dropped 53%; all these stocks have underperformed the ET 100 Index which gained nearly 27% over the same period. \"We reiterate our cautious view on the telecom sector, given the stretched balance sheets, rising capital expenditure, regulatory pushback, Reliance Jio's launch overhang, and expensive valuations,\" said Vinay Jaising, analyst at Morgan Stanley. They are also sceptical of Indian telecom companies due to a number of structural issues such as cannibalisation of voice by data, rapid expansion and network operational cost to deliver data, pricing impact from the imminent entry of Reliance Jio, and stretched balance sheets due to spectrum prices. \"Telcos will further bloat their balance sheet with debt, which is already under severe strain. We maintain 'hold' rating for Bharti Airtel and Idea Cellular with a price target of Rs 399 and Rs 167\/share, respectively,\" said Amar Mourya, research analyst at IndiaNivesh. Most telecom companies may report negative free cash flow in 2015 as they are required to pay a quarter of the committed amount in the spectrum auction upfront, and the rest will be paid in installments over 10 years from 2017.","pubdate":"Sat, 28 Mar 2015 04:07:22 +0530","newspaper":"Economic Times"},{"title":"Sustained growth makes Kajaria Ceramics a good long-term bet","content":"Narendra Nathan, ET Bureau Jan 26, 2015, 08.00AM IST(Analysts say Kajaria Ceramics\u2026) We recommended Kajaria Ceramics a year back because of its high growth rate and decent valuations. The company has rewarded its investors by outperforming the benchmark index, Sensex, handsomely during this time. Kajaria Ceramics continues to grow at a fast pace. It has reported a 30 per cent growth in revenue in the third quarter of 2014-15 compared to the same quarter previous year. The net profit jumped 55 per cent because of a 29 per cent increase in earnings before interest, tax, depreciation and amortisation, and a fall in interest cost due to reduction in debt.  Analysts say Kajaria Ceramics will maintain its high growth in the coming years, largely because of conducive industry dynamics. For the past several years, the Indian tiles industry has been growing due to urbanisation, affordability of tiles, and consumers' focus on home aesthetics, aided by rising disposable incomes. This growth rate is expected to accelerate in the coming years because of the new government's increased focus on affordable housing and the Swachh Bharat Abhiyan. Going by its performance, Kajaria should be able to beat the industry growth rates. In the next five years, Kajaria Ceramics is aiming to grow its revenue at a compound annual growth rate of 20 per cent. Close to 15 per cent of this growth will come from an increase in volume. The remaining will be a result of an increase in prices and a customer shift to premium brands. Kajaria Ceramics is also expanding capacity. It will be spending up to Rs 200 crore in the next fiscal year towards this purpose. Though the company will continue to focus on its tiles business, which accounts for 90 per cent of its turnover, it has entered the sanitaryware and sanitary-fittings segment. Its sanitaryware plant is already operational and is expected to reach full production by March 2015. Even though margins are expected to remain at the current 15 per cent-plus level, the fall in the natural gas price will bring down costs and should help the entire sector expand margins. The historical PE of 35 may appear high, but analysts say, because of the strong volume growth, pricing power, healthy margins and a strong balance sheet\u2014very low debt, which is being cut further\u2014it is justified. But, bear in mind, the company, and the entire Indian tiles industry, faces a threat from Chinese imports. Any policy shift that serves to boost tiles export from China, will adversely impact the entire industry, including Kajaria. Selection Methodology: We pick up the stock that shows the maximum increase in 'consensus analyst rating' in the past one month. Consensus rating is arrived at by averaging all analyst recommendations after attributing weights to each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong sell). Any improvement in consensus analyst rating indicates that the analysts are getting more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search is restricted to stocks that are covered by at least 10 analysts.  ","pubdate":"Mon, 26 Jan 2015 08:00:04 +0530","newspaper":"Economic Times"},{"title":"Consumer durables stocks like Whirlpool, Voltas, Blue Star & Hitachi growth may not match early spark","content":"Jwalit Vyas, ET Bureau Jan 13, 2015, 05.14AM IST(The festive sales were split\u2026) MUMBAI: Investors riding high on strong returns generated by consumer durable stocks like IFB Industries, Whirlpool, Voltas, Blue Star and Hitachi should turn a little cautious as the last two quarters' strong growth trend may not continue. These companies are unlikely to reap the full impact of the festive season in the December 2014 quarter. The festive sales were split between September and December due to early Navratri and Diwali in 2014. Along summer and an early festive season led to a strong first half for these companies, giving many investors an impression that the demand has bounced back for discretionary products post-election. A base effect, thanks to lower sales in the year-ago period, also boosted the numbers and fuelled sentiment.  There was a growth of 27-57% in sales for the September quarter and 25-39% in the first half of FY15. The earnings growth figures were even higher. The result was a surge in stock prices (See table). But, random checks (while talking to dealers and mall outlets) suggest that the sales in the December quarter have been less than impressive. One spots a similar trend in other consumer discretionary sectors like passenger vehicles and two-wheelers. For instance, Hero Moto reported minus 2% growth YoY for the December quarter, Bajaj Auto recorded minus 1% growth YoY while M&M closed the quarter minus 12% YoY growth. Maruti was an exception, generating a 12% growth YoY. While analysts are justifying current high valuations \u2014 claiming that these companies will benefit from the correction in steel, copper and aluminium prices \u2014 a weak sales growth may keep sentiments sombre.","pubdate":"Tue, 13 Jan 2015 05:14:13 +0530","newspaper":"Economic Times"},{"title":"Balkrishna Industries: A long-term bet after the recent correction","content":"Narendra Nathan, ET Bureau Jan 5, 2015, 08.00AM IST(Balkrishna Industries\u2026) The profits of Balkrishna Industries fell by around 40% after reporting poor numbers in the second quarter of 2014-15. The tyre company's net profit went down by 17% compared to the corresponding period last year and by 22% compared to the preceding quarter. Lower volume from European markets (the region contributes around 50% of its sales volume) and the discounts offered to clients to compensate the fall in natural rubber prices are the primary factors behind the fall in net profit.  Balkrishna Industries could not take advantage of the lower prices of natural rubber in the second quarter because it had a huge inventory of rubber purchased at higher prices. Rising employee costs following partial commissioning of its new tyre plant with 1.5 lakh per annum capacity in Bhuj, Gujarat, was another factor. The recent correction in its price has brought the valuations of Balkrishna Industries to reasonable levels. In addition to the fall in price, analysts are getting bullish on this niche player because of its improving fundamentals. Its Bhuj plant is expected to become fully operational by April 2015. This will help the company to foray into much bigger radial tyres (expected to move up from 35 inches to 57 inches) and, therefore, its tyre portfolio will be more comprehensive. Radial tyres have higher realisations (3-4% higher) and with this new plant, its radial sales volume is expected to move up from around 30% now to above 40% over the next three years. Balkrishna Industries is also working towards increasing its global market share in the off -highway tyres (OHT) from 5% to 8% in the next three years. To realise this goal, the company plans to set up warehouses in the US and other overseas markets in the near future to increase its penetration levels. Though the global fall in agricultural product prices has resulted in less demand for new tractors (lower demand for OEM tyres), existing tractors continue to work (normal demand for tyres in the replacement segment , which is nearly 80% of its total sales volumes). New tractor sales are also expected to improve following the stability in the American farm sector reported recently. With around 90% of its revenues coming from exports, Balkrishna Industries will also benefit from the sudden depreciation of the rupee in the last six months. Selection methodology  We choose a stock that has shown the maximum increase in consensus analyst rating during the past month. Consensus rating is arrived at by averaging out the recommendations of all analysts and after attributing weightages to each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong sell). Any improvement in consensus rating indicates that analysts are becoming more and more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search will be restricted to stocks that have been covered by at least 10 analysts.","pubdate":"Mon, 05 Jan 2015 08:00:53 +0530","newspaper":"Economic Times"},{"title":"Orient Cement: Despite the recent rally, enough value left in the counter.","content":"Narendra Nathan, ET Bureau Dec 29, 2014, 08.00AM IST(Orient Cement is a good long-term\u2026) Cost competitiveness is the main advantage of this south-based, CK Birla Group cement company. Orient Cement's per tonne cement production cost is around 13% lower than the industry average. Therefore, the company could repeat its stellar performance in the third quarter of 2014-15 as well. In its second quarter sales, EBITDA (earnings before interest, taxes, depreciation and amortisation) and net profit grew by 20%, 123% and 200%, respectively, compared to the corresponding period last year, or on a year-on-year basis. The company could also improve its third quarter EBITDA per tonne to `785, which is among the highest in the industry. The rise in EBITDA per tonne was due to the strong volume growth (up by 4% y-o-y) and improvement in realisations (up by 15% y-o-y). Orient Cement is a good long-term bet because of the infrastructure growth expected in the company's two key markets\u2014Maharashtra and Andhra Pradesh\u2014in the coming years. Industrial demand is expected to pick up in Maharashtra following the initiatives by the new state government. Andhra Pradesh, however, is the best example of the amount of harm political uncertainties can do to even well-established companies. The market size of cement has shrunk to 13 million tonnes in the state from the peak levels of 18 million tonnes in 2008-09. However, due to the low cost of production, Orient Cement could increase its market share.  Cement consumption should jump in Andhra Pradesh in the coming years as massive construction projects are lined up at the new state capital. To benefit from this, the mid-sized cement company is in the process of increasing capacity through green-field and brown-field projects. The company's 3 million tonne green-field project in Gulbarga (northern Karnataka) is progressing smoothly. Its trial production and, subsequently, commercial production is expected from April 2015 and June 2015, respectively. This project also includes a 45MW thermal plant and a 7MW waste-heat-recovery plant. Despite the key advantages, such as low-cost cement production, high return on equity (ROE) and return on capital employed (ROCE), this stock is still attractively priced compared to its peers. The discount should narrow down if it produces 8 million tonnes in 2015-16. This will also help it climb up the valuation ladder further Selection methodology  We choose a stock that has shown the maximum increase in consensus analyst rating during the past month. Consensus rating is arrived at by averaging out the recommendations of all analysts and after attributing weightages to each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong sell). Any improvement in consensus rating indicates that analysts are becoming more and more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search will be restricted to stocks that have been covered by at least 10 analysts. ","pubdate":"Mon, 29 Dec 2014 08:00:39 +0530","newspaper":"Economic Times"},{"title":"Credit rating agency Care to benefit from the expected increase in debt issuances","content":"Narendra Nathan, ET Bureau Dec 15, 2014, 01.35PM IST(The cyclical recovery in\u2026) Credit Analysis and Research (Care) surprised the Street with its performance during the second quarter of 2014-15. While its net profit rose by 50% year-on-year, it zoomed by 98% on a quarter-on-quarter basis. The rise in net profit was primarily due to two factors: first, there was a 316% y-o-y jump in its other income which was triggered by the profit it made from sale of investments. Second, the company reported 14% y-o-y increase in rating revenues, which was significantly higher than the 5% achieved by its main competitor Crisil during the period under consideration. In addition to the increase in surveillance income, Care also added 761 clients during the quarter and its total volume of debt instruments rated increased by 16% y-o-y.  Analysts are now getting bullish on the long-term (2-3 years) growth opportunities for the credit rating sector because it is best placed to benefit from the cyclical recovery in corporate capex and bank credit growth. The sector is already doing well because of the pickup in debt issuances in the recent past. According to Prime Database, debt placements during the first half of 2014-15 went up by 22% compared to the corresponding period last year. Another factor helping credit rating agencies is the improvement in credit environment. For example, Care's modified credit ratio (MCR) has improved from 1.05 times to 1.25 times in the second quarter, y-o-y. MCR is calculated by dividing the number of rating upgrades with downgrades. An increase in MCR means that the financials of the rated companies are stable and improving. With a turnaround in the economy, MCR is expected to improve further in the second half of 2014-15. With the revival in market sentiments, debt issuances are expected to rise manifold, increasing business opportunities for rating agencies like Care. Since the company provides 'grading' for equity public offerings, revival in stock market sentiments also bodes well for it. While analysts are bullish on the sector, Care is their preferred choice. This is so because it is the cheapest stock based on valuations and the recent correction has brought down its valuations further to reasonable levels. It is quoting at 35 times trailing price-to earnings ratio compared to 51 times for Crisil and 45 for Icra. Care is also continuing with its liberal dividend policy and has announced 650% dividend during the second quarter, taking the total interim dividend announced in 2014-15 to 710%. Selection methodology We choose a stock that has shown the maximum increase in consensus analyst rating during the past month. Consensus rating is arrived at by averaging out the recommendations of all analysts and after attributing weightages to each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong sell). Any improvement in consensus rating indicates that analysts are becoming more and more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search will be restricted to stocks that have been covered by at least 10 analysts. ","pubdate":"Mon, 15 Dec 2014 13:35:31 +0530","newspaper":"Economic Times"},{"title":"Flat UK FTSE lags euro zone peers as energy stocks weigh","content":"PTI Nov 27, 2014, 05.44PM IST(Britain's top equity index\u2026) LONDON: Britain's top equity index lagged its continental peers on Thursday, held back by energy shares hit by an oversupply of oil sending crude prices to a four-year low. Oil majors such as Shell and BP were the biggest drag on a flat FTSE 100 index after Brent crude hit a a 50-month low of $75.48. Ministers from the Organization of the Petroleum Exporting Countries were unlikely to agree a production cut to support prices at their meeting in Vienna on Thursday, sources close to the cartel said. Oil prices having sunk 30 percent since June. \"Oil companies can't help but react to the spot oil prices as it drills down to their bottom line,\" Alastair McCaig, market analyst at IG, said. \"Low prices might force companies to alter their production, but demand for oil is quite low anyway.\" Energy stocks knocked 13 points off the FTSE 100, which was down 0.78 points at 6,728.39 points at 1142 GMT. It lagged a 0.5 percent gain for Germany's DAX and a 0.3 percent rise for the Euro STOXX 50, supported by expectations of further stimulus measures from the European Central Bank. The FTSE, which is hovering just below a recent two-month high hit on Wednesday, is roughly flat for the year. Among individual stocks, Barclays rose 1.8 percent after Goldman Sachs raised its stance on the stock to \"buy\" from \"neutral\" and raised its price target to 300 pence from 272 pence. Mid-cap Stagecoach rose 7.2 percent after Britain said it would award a contract to run trains between London and Scotland to a Stagecoach and Virgin partnership.","pubdate":"Thu, 27 Nov 2014 17:44:40 +0530","newspaper":"Economic Times"},{"title":"S&P, NASDAQ edge higher but IBM results drag Dow","content":"NEW YORK: US stocks were mixed on Monday, with the S&P 500 and  Nasdaq posting modest gains, but the  Dow falling as quarterly results from  IBM disappointed.IBM shares slumped 7.3 per cent to $168.69 as the biggest drag on both the Dow and S&P 500 after the company's third-quarter earnings fell well short of Wall Street expectations. IBM had earlier said it would pay Globalfoundries $1.5 billion in cash over the next three years to take its loss-making semiconductor unit.IBM's weakness produced an outsized drop in the Dow Jones Industrial Average, accounting for over 80 points to the downside for the price-weighted index.The weak IBM results helped spur speculation the Federal Reserve may be reluctant to end its massive bond-buying stimulus program this month.\"On a number like that, with the forecast they gave you would expect the broader market would come under more pressure, and maybe it will,\" said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York.\"But what it is telling you is, based on IBM's report, that the odds are lining up we may hear some more dovish comments out of the Fed next week than not.\"At 9:43 a.m., the Dow Jones industrial average fell 67.84 points, or 0.41 per cent, to 16,312.57, the S&P 500 gained 2.33 points, or 0.12 per cent, to 1,889.09 and the Nasdaq Composite added 14.61 points, or 0.34 per cent, to 4,273.05.Earnings season will ramp up significantly this week, with nearly 130 S&P 500 companies scheduled to report, include Apple Inc after the close on Monday.According to Thomson Reuters data through Friday, of 81 companies in the S&P 500 that have reported quarterly earnings, 64 per cent beat analyst expectations, slightly above the 63 percent average since 1994 but below the 67 per cent rate for the past four quarters.Third-quarter earnings are expected to grow 6.9 per cent from a year ago, on revenue growth of 3.8 per cent.The largest percentage gainer on the S&P 500 was Tesoro Corp , which rose 7.5 per cent, while the largest percentage decliner was IBM.The largest percentage gainer on the Nasdaq 100 was  SANDISK , which was rising 3.0 per cent, while the largest percentage decliner was NetApp, down 1.8 per cent.","pubdate":"Mon, 20 Oct 2014 20:11:15 +0530","newspaper":"Economic Times"},{"title":"Housing Development and Infrastructure shares jump as promoters revoke pledged shares","content":"PTI Sep 30, 2014, 10.58PM IST(Housing Development and\u2026) MUMBAI: Shares of Housing Development and Infrastructure (HDIL) rose by over 5 per cent before closing nearly 2 per cent higher as company promoters revoked all shares pledged with IL&FS Trust Company. At the NSE, shares closed up by 1.89 per cent at Rs 83.65. The stock ended 1.64 per cent higher at Rs 83.45 on the BSE. During the day, it jumped 5.29 per cent to Rs 86.45. Realty player HDIL had yesterday said its promoters have revoked all shares pledged with IL&FS Trust Company. \"Promoters of HDIL have revoked all shares earlier pledged with IL&FS Trust Company and now the entire 100 per cent shares in the promoters category is non-pledged,\" a company release had said. IL&FS Trust has released over 7.54 crore equity shares of promoters, including those of Rakesh Kumar Wadhawan. The released shares in the latest tranche comprise 51.89 per cent of the total shares pledged by promoter group. On July 4, IL&FS Trust had released 7 crore equity shares, comprising 48.11 per cent of the total pledged shares of promoter group. With the latest release of pledged shares by IL&FS Trust, the total number of pledged shares by HDIL promoters now stands nil, the release had said. ","pubdate":"Tue, 30 Sep 2014 22:58:19 +0530","newspaper":"Economic Times"},{"title":"Sony shares plunge 12% on ballooning loss forecast","content":"TOKYO:  Sony shares plunged 12 per cent at the open in Tokyo on Thursday after the electronics giant warned it would lose $2.14 billion this fiscal year, more than four times its earlier forecast. The shares fell to 1,865.5 yen ($17) in the first few minutes of frenzied trading, erasing most of the gains made since the start of the year, in response to Sony's announcement, which came after Japanese  markets had closed Wednesday. The company, whose dual-listed shares slid nearly 7.0 per cent in  New York, blamed the ballooning loss estimate on struggles at its mobile phone business, where it said it would cut staff by 15 per cent, or about 1,000 jobs. Demand for Sony's smartphones has come under increasing pressure from rivals including  Samsung and Apple, which is releasing its newest  iPhone in several key markets, including  Japan, this week. Sony also said it would not pay dividends for the first time since its shares started trading in Tokyo in 1958. The company, whose  credit rating has been slashed to junk, has issued a string of downward earnings revisions over the past two years as it undergoes a sweeping overhaul led by chief executive Kazuo Hirai. The restructuring has included thousands of layoffs, exiting the personal computer business and liquidating assets that saw the $1.0 billion sale of its Manhattan headquarters. News that the company was heading for a 230 billion yen ($2.14 billion) net loss in the fiscal year to March 2015 comes only months after it tipped a shortfall of just 50 billion yen, citing a turnaround in its television unit. The announcement was likely to resurrect fears that what used to be the world's leading electronics company has a lot more work ahead to cast off years of losses. Hirokazu Kabeya, senior strategist at  Daiwa Securities in Tokyo, said the share plunge was inevitable after the firm's latest worrying forecast. \"Market players are getting used to (Sony's downward revisions) but a temporary fall was still unavoidable,\" he said. Sony has been cutting expectations for sales in the money-losing smartphone business amid weaker-than-expected results in emerging markets and the soaring presence of rivals in its home market. \"Other firms are also offering new products with innovative technology -- this business experiences dramatic changes in products and services,\" Hirai told reporters in Tokyo when asked about struggles in the mobile phone unit. \"The environment is changing and becoming more severe,\" he added. Hirai, who took over in 2012, said Wednesday that the firm would continue to focus on more profitable areas of its vast business, which ranges from televisions and portable music to a movie division and little-known insurance business. Despite his bid to slim down the firm, Hirai has repeatedly shrugged off pleas to abandon a money-losing television division, which he insists remains central to Sony's core business. Japanese manufacturers have suffered badly in their TV divisions as razor-thin margins and fierce overseas competition hammered profits. Kabeya at Daiwa Securities said Sony cannot afford to get into a price war with lower-cost rivals, including Chinese smartphone makers, or beat Samsung and  Apple in global market share. \"It is difficult to cut into the dominance of the big two: Samsung and Apple,\" Kabeya said. \"(Sony) would be wise to shift its business resources to where it is strong -- such as movies and music.\" Following Thursday's share price drop, investors may take a step back and see Hirai's efforts to slim down the company as a positive, Kabeya said. \"But it's unlikely we'll see a rapid turnaround and the company will likely continue to go through a difficult time for a while,\" he added. ","pubdate":"Thu, 18 Sep 2014 08:11:08 +0530","newspaper":"Economic Times"},{"title":"The most and the least volatile global markets for investing","content":"(Most global indices fell\u2026) Most global indices fell during the week, but Argentina's MerVal and Japan's Nikkei 225 rose smartly. Figures are weekly % change. All data on this page as on 12 September 2014, unless specified.Source: ETIG Database\/Bloomberg ","pubdate":"Mon, 15 Sep 2014 08:49:22 +0530","newspaper":"Economic Times"},{"title":"How good are the returns in alternative investments?","content":"(The scope and attractiveness\u2026) The scope and attractiveness of alternative investments is increasing. Here's a weekly tracker of returns from such investments. But don't compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.  Overall Diamond Index is based on actual transactions from 20 different market players and reflects price movements in the global diamond market. The index is updated daily.","pubdate":"Mon, 15 Sep 2014 08:49:00 +0530","newspaper":"Economic Times"},{"title":"HUL sinks ahead of Q4 results; PAT seen up 7.5%; higher ad spend to hit growth","content":"ET Now Apr 28, 2014, 12.23PM IST(The stock came under selling\u2026)  NEW DELHI: Hindustan Unilever Limited ( HUL) is scheduled to report its results for the quarter ended March 31 on Monday. India's largest Fast Moving Consumer Goods Company is expected to report 7.5 per cent YoY growth in its standalone net profit number to Rs 840 crores, as compared to Rs 781 crores reported in the corresponding quarter last year, according to an ET Now Poll. Ahead of the results, the stock came under some bit of selling pressure and was trading nearly 1 per cent lower at Rs 574 at 12:00 p.m. It hit a low of Rs 565.10 and a high of Rs 588 in trade today. Net sales for the FMCG major are likely to grow by 9.6 per cent to Rs 6980 crores for the quarter ended March 2014, from Rs 6367 crores reported in the year ago period. EBIDTA is seen at Rs 1080 crore, or a 11 per cent rise in the fourth quarter of the financial year 2014, compared to Rs 971 crore reported in the year ago period. EBITDA margins are seen flat at 15.47 per cent as compared to 15.25 per cent reported in the year ago period. According to the ET Now estimates, consumer demand are likely to get worsen QoQ across categories and higher Ad expenses are likely to curtail bottom line growth. Analysts see Volume growth between 3-4 per cent. Volume growth in 4QFy13 was 6 per cent while in Q3Fy14 it was 4 per cent. Soaps & Detergents Co took price hikes in Soaps to pass on palm oil inflation Soaps & Detergents see muted growth Co unwound promotional offers and increased prices Soaps & detergents could grow at 9- 10% and PP at 9% Personal Products Segment could register growth of 8-9% F&L relaunch is witnessing encouraging response Beverages Beverages could post a better quarter QoQ Price growth in Beverages to come down Watch out for - Comments on volume growth - Consumer demand environment","pubdate":"Mon, 28 Apr 2014 12:23:54 +0530","newspaper":"Economic Times"},{"title":"United Spirits is a very good long term bet: Vinay Khattar","content":"ET Now Apr 15, 2014, 03.47PM IST(One of the largest distribution\u2026) In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited, shares his views on United Spirits. Excerpts: ET Now: What is the advice to your clients on United Spirits, people who are sitting on the stock believe that they can hold this stock for the next couple of years, would you advise them to tender into the open offer or stay with United Spirits?  Vinay Khattar: United Spirits has been a good trade for people who are looking at short time gains. It makes sense for you to tender in the open offer. But if you want to stay long with investment view of five to seven years, it is a very good stock to hold on to. You have a new management which has come in. You have one of the largest distribution set up in India which you could use to introduce new products, premium whiskeys and premium liquors into the country. Now the only thing that you may want to keep an eye for is very high valuations, you are not buying the stock cheap and if you are looking at short term returns, then certain degree of that has already factored into the price. Both gentlemen as well as ladies are beginning to consume liquor so new segments in the market are opening up which is clearly positive and a dominant brand position with a good distribution reach this could be a very-very good play the Indian consumption.","pubdate":"Tue, 15 Apr 2014 15:47:40 +0530","newspaper":"Economic Times"},{"title":"Suzlon\u2019s unit to get Euro 850 million as working capital; stock gains","content":"ECONOMICTIMES.COM Apr 9, 2014, 10.28AM IST(Its's \u00a0wholly owned owned\u2026) MUMBAI: Shares of Suzlon Energy surged higher in trade after its Germany-based wholly owned subsidiary Senvion SE signed an agreement with a consortium of banks for syndicated working capital facilities of EUR 850 million for the period of 3 years. The consortium of banks is headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG. This move enables Senvion SE to secure follow-on financing early for the credit facilities of EUR 750 million agreed in May 2012 for the period up to August 2014. \"This enhanced facility with long tenure is of importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects strong confidence of global banks in business fundamentals of the company,\" Marcus A Wassenberg, CFO of Senvion said. At 09:25 a.m., the stock was at Rs 14.78, up 5.87 per cent, on the BSE. It touched a high of Rs 14.90 and a low of Rs 14.50 in trade today.","pubdate":"Wed, 09 Apr 2014 10:28:52 +0530","newspaper":"Economic Times"},{"title":"Savvy investors make big gains in OFS of Rural Electrification Corp","content":"MUMBAI: Several savvy investors made a killing in the offer for sale (OFS) of  Rural Electrification Corp (REC) on Wednesday. Instead of investing a lump-sum in the REC OFS, they spread their subscription money across demat accounts to make themselves eligible for the retail investor category, which received shares at a 5% discount. To be eligible to invest in the retail category, the investment cap is Rs 2 lakh per application formWhile these investors used the demat accounts of their family members, they also borrowed demat accounts from their brokers to put in more bids in the REC OFS. \"Due to the 5% discount on offer, and retail limit of Rs 2 lakh, savvy investors used multiple demat accounts of family members to up their returns,\" says  Vinay Agarwal, chief executive officer,  Angel Broking. The retail category in the REC OFS was subscribed 9.02 times.Brokers were more than happy to arrange the dormant demat accounts for these investors as they borrowed money to place bids in the OFS. \"Depending on client relationship, brokers are happy to extend margins to clients, though it varies on a case to case basis,\" said Agarwal. The arrangement worked well for investors as they made quick money in the REC OFS.\"Retail investors who got it right made an absolute return of 5.5% in RECs OFS issue,\" says  Sumit Bagadia, associate director, Choice Broking. Retail investors, who placed bids at Rs 333.30 and above, got full allotment of 600 shares on their invested amount. After factoring in a 5% discount for retail investors, the net cost to  retail investors is Rs 316.65.On Thursday, these investors sold at an average price of Rs 336-338. After deducting brokerage expenses, their profit was anywhere between Rs 10,000 andRs 11,000 \u2014 an absolute return of 5.5% on an investment of Rs 2 lakh. Investors who used multiple demat accounts to subscribe made much more in a matter of three days.In the Coal India OFS in February, investors made about 4.5% returns in three days. But, fewer investors used multiple demat accounts in that issue.In the REC OFS, this arrangement was widespread as the outlook for the stock has been strong.  ","pubdate":"Fri, 10 Apr 2015 04:02:16 +0530","newspaper":"Economic Times"},{"title":"VRL Logistics sets Rs 195-205 price band for IPO","content":"MUMBAI: Parcel delivery company VRL  Logistics is coming out with an initial public offer (IPO) to raise between Rs. 451 crore and Rs. 468 crore to give a partial exit to  private equity investor New Silk Route, and pay off some debt and buy additional fleet. VRL Logistics fixed a price band of Rs. 195 to Rs. 205 per equity share, which comprises of primary and secondary offering. The issue opens of April 13 and closes on April 17. The bid can be for minimum 65  shares and in multiples of 65 thereafter. The issue constitutes a fresh issuance of Rs. 117 crore worth of equity shares and Rs. 351 crore from secondary sale of shares from New Silk Route and promoters  Vijay Sankeshwar and  Anand Sankeshwar. Promoters are offloading shares to meet Securities Exchange Board of India's ( SEBI) minimum mandatory requirement of 25% public float. New Silk Route currently owns about 22.5% stake in VRL Logistics. After the public listing next week it will continue to own only 5% stake. The private equity form had invested Rs. 175 crore in the company three years back. The PE is expected to get anything between Rs. 284 crore and Rs. 298 crore from the  IPO. HSBC Securities and Capital  Markets (India) and  ICICI Securities are the book running lead managers to the issue and Karvy the registrar and transfer  agent. VRL Logistics reported a net profit of Rs. 71.69 crore on revenue of Rs. 1,273.8 crore for the nine months ended December 31, 2014. ","pubdate":"Tue, 07 Apr 2015 17:44:58 +0530","newspaper":"Economic Times"},{"title":"Gold near one-week low as US rate hike bets buoy dollar","content":"SINGAPORE:  Gold remained near a one-week trough on Friday and was expected to end a three-week rally pressured by renewed expectations for a US rate hike this year despite recent soft economic data. Bullion has surrendered gains inspired by a weak US employment report last week as  Federal Reserve officials suggest a US rate hike in June could still be in play, lifting the dollar to three-week highs versus a basket of major currencies. Spot gold was steady at $1,194.51 an ounce by 0225 GMT, after hitting a session low of $1,192.30 on Thursday. Bullion is down 1.3 percent so far this week after pulling back from Monday's seven-week top of $1,224.10. US gold for June delivery was nearly flat at $1,194.40 an ounce. \"What is changing rapidly is people's expectations as the actual rate hike timing approaches,\" said Mark To, head of research at Hong Kong's Wing Fung Financial Group, who believes the Fed is on track to raise rates in June. Data on Thursday showed the number of Americans filing new claims for jobless benefits rose less than expected last week and the four-week moving average of claims hit its lowest level since 2000, suggesting an abrupt slowdown in job growth in March was likely a fluke. Investors tend to shun gold, which doesn't pay interest, when market expectations point to US interest rates rising. \"But whether the Fed raises rates in June or decides to wait till September is a moot point in our view since we think that once the first rate hike takes place, the Fed will likely stand aside for a period of time to see what the repercussions of its move will be,\" INTL FCStone  analyst Edward Meir said in a note. Gold could drop to a five-year low of $1,100 this year, before a recovery in 2016 spurred by Asian demand, GFMS analysts at  Thomson Reuters said. Demand from India and China, the world's top two gold consumers, has been slack so far this year, with Beijing's anti-corruption drive hurting Chinese appetite. Premium for physical gold at the Shanghai Gold Exchange stayed at just about a dollar over the global spot benchmark on Friday. In India, gold demand risks falling for a second straight year as millions of Indian farmers hit by erratic weather and falling commodity prices trim purchases. ","pubdate":"Fri, 10 Apr 2015 08:57:48 +0530","newspaper":"Economic Times"},{"title":"Brent rallies 4% on Iran, German data, but strong dollar curbs rise","content":"NEW YORK: Oil prices rose on Thursday on strong German economic data and uncertainty about negotiations on Iran's nuclear program, even as a strong dollar curbed oil's bounce a day after futures tumbled 6 percent. Brent crude rallied 4 percent intraday as European equities strengthened on German industrial output and trade data and Greece's repayment of a loan to the International Monetary Fund. Also supportive was Iran saying it will only sign a final nuclear accord if all sanctions imposed over its disputed nuclear program are lifted the same day. \"The German data provided some lift early because it comes even before the expected economic boost from central bank quantitative easing and any sign that an agreement with Iran isn't going to get done is bullish,\" said  Phil Flynn, analyst at Price Futures Group in Chicago. Dollar-denominated oil pared gains on the strong dollar, which was driven higher by sentiment that US  interest rates inevitably will rise. Brent May crude rose $1.02 to settle at $56.57 a barrel, having reached $58.02. US May crude rose 37 cents to settle at $50.79, after hitting $52.07. US crude's Tuesday close near $54 was the strongest since Dec. 30. \"The dollar's strength helped pull crude off the highs and the big jump in inventories is still a factor,\" said Gene McGillian, senior analyst at  Tradition Energy in Stamford, Connecticut. Government data on Wednesday showed US crude inventories surged 10.95 million barrels to a record 482.4 million last week, the biggest weekly gain in 14 years. News late Tuesday that Saudi Arabia's production rose to 10.3 million barrels a day (bpd) in March also sparked Wednesday's tumble. An adviser to Saudi  oil minister  Ali al-Naimi struck a hopeful note on Thursday, saying that this price slide was temporary and that global oil demand was expected to grow annually by up to 1 million bpd. Iranian oil minister  Bijan Zanganeh said in  Beijing on Thursday that  OPEC would \"coordinate\" to accommodate Iran's return to oil markets without causing a price crash. OPEC's strategy of holding output steady is not working and members should discuss production levels before June's meeting, Zanganeh said. OPEC's ability to coordinate will be under scrutiny as the situation in Yemen and other conflicts in the region keep relations between Iran and  Saudi Arabia tense. ","pubdate":"Fri, 10 Apr 2015 02:22:42 +0530","newspaper":"Economic Times"},{"title":"Dollar rallies on rate differentials, policy forecasts","content":"ATHENS: Greece on Thursday made a scheduled 459 million euro ($495 million) loan payment to the IMF but failed to dispel market concerns Thursday over its solvency as it labours to reach a loan deal with its international creditors. Athens has until the end of the month to reach an agreement, with an April 24 meeting of eurozone finance ministers seen as the last chance for a deal. Despite making the payment, Greek  Finance Minister Yanis Varoufakis remained typically defiant. \"We are not going to sign on the bottom line of whatever you're giving us just to get the (money),\" Varoufakis said on a visit to Paris. \"We are not promising anything just to get the next loan tranche,\" he added. From Moscow, where he is on a two-day official visit, Prime Minister Alexis Tsipras called for an \"honourable compromise\" to ensure continued access to the European Union-International Monetary Fund bailout cash. \"I am confident that despite the difficulties, all the forces will come to an honourable compromise,\" Tsipras said. Athens had earlier authorised the loan repayment to the IMF after days of uncertainty. \"Yes, I've got my money back,\" IMF head  Christine Lagarde replied when asked at an Atlantic Council think tank event in Washington whether Athens had made the payment. \"What matters is now for the Greek authorities and the three institutions, the IMF, the ECB ( European Central Bank) and the  European Commission, to get on with the work,\" she said later on CNBC. Tsipras' decision to go on a Russia charm offensive -- while his government is locked in loan talks with its EU peers -- has irritated Greece's European partners. Athens is trying to persuade the EU and IMF to continue lending it money while easing austerity requirements in order to boost economic growth. After talks with President  Vladimir Putin on Wednesday, Tsipras also met Russian Prime Minister  Dmitry Medvedev on Thursday. Speaking to students in Moscow, Tsipras said his priority remained to reach a deal with the EU. \"The goal of the government is for Greece to remain in the euro. To remain in the eurozone. We consider this problem facing us a common European problem and for this reason we seek a joint European solution,\" the 40-year-old prime minister said. Experts from the IMF and the EU are scrutinising a list of economic reforms proposed by Athens in a bid to unlock another 7.2 billion euros in loans to stave off possible bankruptcy. The Greek government has insisted it can meet its payments, but Tsipras himself fuelled market fears when he warned German Chancellor  Angela Merkel in a letter last month that Athens would not be able to service its debt without more financial help from the EU. Later this month, Athens has to make interest payments of nearly 400 million euros and roll over 2.4 billion euros in six- and three-month treasury bills due to mature on April 14 and 17. Athens on Wednesday raised 1.14 billion euros in six-month treasury bills. On Thursday it announced the sale of another 625 million euros in three-month bills next week. Greek banks are dependent on the ECB for financing, but the eurozone's central bank no longer accepts Greek sovereign bonds as collateral for loans. The ECB on Thursday raised its emergency liquidity assistance to Greek banks by 1.2 billion euros to 73.2 billion euros. Since 2010, Athens has received two successive loan packages from the EU and the IMF worth up to a total 240 billion euros in exchange for tough austerity measures and sweeping economic reforms. In a sign of attempts by the new Greek government to make good on promises to ease the pain of austerity, parliament began Thursday considering the reinstatement of about 4,000 sacked state employees, ranging from police officers to bureaucrats. Putin and Tsipras exchanged warm words on Wednesday and a vague \"joint action plan\" on cooperation was agreed upon, but Putin insisted Athens had not asked for financial aid. Greece has been particularly hard-hit by the embargo slapped down last year in retaliation for sanctions imposed by the bloc against Moscow, as more than 40 percent of its exports to Russia were farm products. Although the embargo will remain, there was a sign of a potential compromise in the shape of a proposal to set up joint Russian-Greek companies based in Russia that would provide a loophole in the ban, according to a government source. Under the mooted arrangement, Greek fruits and vegetables would not be considered as exports. Also prominent on Wednesday's agenda was gas and energy cooperation, with Putin and Tsipras mentioning the possibility of Greek involvement in Moscow's new Turkish Stream pipeline project. Tsipras is expected to return to Russia for an economic forum in Saint-Petersburg on June 18-20. In Brussels, eurozone experts were on the second day of a working meeting Thursday poring over the reform plans Greece submitted at the end of March. The discussions were only making \"small steps\" a source said Wednesday. ","pubdate":"Fri, 10 Apr 2015 02:28:26 +0530","newspaper":"Economic Times"},{"title":"Dollar to take a breather on delayed Fed hike expectations: Poll","content":"Any gains for the dollar will be more subdued going forward, as doubts over the timing of an eventual  US interest rate hike put the brakes on an historic rally over the past year, a Reuters poll found. The greenback has had an almost uninterrupted run against a basket of major currencies, rising almost 13 percent in 2014 and a further 9 percent this year on the view the Fed could raise rates as soon as in June. But that rally has stalled, hit by weaker US economic data in recent months, which, coupled with a more dovish central bank, has pushed market expectations for a rate hike to later in the year and possibly not until 2016. The latest poll of over 60 foreign exchange strategists taken this week suggested the dollar index will rise only 3 percent more by the end of 2015. \"A much more dovish than expected Fed post-the March  FOMC has created doubt about the USD bull market. However, the Fed's concern about a strong USD will delay, but not cancel, Fed normalisation,\" Jeremy Hale, head of macro strategy at Citi, said in a note. Still, if the dollar does rise by as much as expected, it would start to hurt the US economy, according to a smaller sample of analysts who answered an extra question. \"It (the dollar rally) is already hurting exports to some extent and the higher it goes, the more it hurts,\" said Dag Muller, financial markets analyst at  SEB. A separate Reuters poll of equity strategists last month forecast more modest gains for US shares this year than in 2014 as the firmer dollar not only drags on economic growth but threatens US corporate earnings. New York Fed President William Dudley told Reuters on Wednesday the central bank could still hike earlier than markets expect although he suggested the bar was higher for a June hike after a series of disappointing economic data. The minutes of the Fed's March meeting showed there was a wide divergence of views among policymakers and as such there is no real consensus on when the Fed will move. That suggests more volatility ahead in foreign exchange markets, especially given that the European Central Bank has just embarked on a quantitative easing programme to bring inflation back up towards its target. The poll predicted the euro will likely fall further over the next year after sliding 12 percent in 2014 and a further 11 percent so far this year. The single currency is seen holding near Thursday's trading level of $1.07 in a month. It is then expected to ease to $1.05 by end June and to $1.04 in a year. That is down from the March poll's consensus of $1.12, $1.10 and $1.08. In the latest poll, there are now more analysts calling for the euro to reach or fall below parity against the dollar compared to previous months. Others took a starkly different view, predicting an end to the euro's slide. Latest CFTC data showed currency speculators had piled up bets against the euro to a record high, suggesting the fundamental outlook will need to turn much more pessimistic for the single currency to fall any further. \"The current euro movement is a bit overdone, went too far, but there will be a slight pullback on that since we do not have an aggressive rate view on the U.S side,\" said Marko Elo, foreign exchange analyst at Pohjola Bank, one of the most accurate forecasters on the euro so far this year. Sterling is forecast at $1.47 in one month, $1.46 in three and then to gain slightly to $1.48 in a year, on expectations the Bank of England will trail the Fed in its first rate hike. That was also originally expected by mid-year but has now been pushed to late this year or early 2016. Britons go to the polls next month. When asked how the outcome of one of the closest-fought national elections in decades would affect sterling, most forecasters polled did not answer. Those who did had wildly conflicting views. ","pubdate":"Thu, 09 Apr 2015 21:36:09 +0530","newspaper":"Economic Times"},{"title":"CLP India issues bonds to raise Rs 476 crore","content":"MUMBAI:  CLP India arm Jhajjar Power has raised Rs 476 crore through issue of bonds, with partial credit enhancement, to refinance existing debt, the company said on Thursday. The company issued corporate non-convertible bonds for its 1,320 mw coal-fired power plant at Jhajjar in Haryana. The bond, which carries a 50% guarantee from CLP India, has a semi-annual coupon of 9.99% a year and has been issued in two series of equal amounts and will mature in April 2025 and April 2026. CLP India is the wholly owned subsidiary of Hong Konglisted China Light and Power Holdings. CLP entered the Indian power sector in 2002 with the acquisition of a 655 MW gas-fired power plant in Gujarat. \"The Jhajjar plant was financed in 2009 right after the global financial crisis when the cost of funds was very high. That was limiting the profitability of the project. The fund raised now will help us refinance our most expensive Rupee loan,\"  Rajiv Mishra, managing director, CLP India told ET. The Jhajjar plant was set up at a cost of Rs 6,300 crore, which included Rs 4,000 crore of debt. The funds raised would replace a long-term debt with interest rate of 13.5% and give a savings of almost 350 basis points on interest payment to the company. \"The innovative structure achieves the twin objectives of accessing long-term funds at competitive rates for the issuer and an attractive longterm investment opportunity for the investors. It opens up financing avenues for infrastructure projects which have been a big thrust area for the government,\" said Kaustubh Kulkarni, managing director & head, debt capital markets, South Asia, Standard Chartered Bank. Standard Chartered Bank and  IDFC Limited are the lead managers to the issue. Credit-enhanced bonds are debt instruments issued by lower-rated companies to improve the credit profile of their debt issuances. In this instance, Jhajjar Power first improved its credit rating to ' A+' from 'BBB' and then with the partial guarantee from parent CLP India, their rating was enhanced to ' AA+'. \"This is a first of its kind bond issuance and we see insurance companies are getting comfortable with such opportunity. Other companies may look at this route as well but the success of it will depend on the operational performance of the company itself and the reputation of the company backing it,\" said Jayen Shah, Head-Debt Capital Market, IDFC. ","pubdate":"Fri, 10 Apr 2015 02:50:43 +0530","newspaper":"Economic Times"},{"title":"Bond prices continue to fall; call rates end soft","content":"MUMBAI: The  government bond (G-Sec) prices weakened further on the back of sustained selling from corporates and market participants. Call money rates turned bit soft at the overnight call money market due to lack of demand from borrowing banks amidst comfortable liquidity situation in the banking system. The 8.60 per cent government security maturing in 2028 eased to Rs 106.58 from Rs 106.5850, while its yield held steady at 7.79 per cent. The 8.27 per cent government security maturing in 2020 declined to Rs 101.94 from Rs 101.98, while yield moved up to 7.80 per cent compared to 7.79 per cent. The 8.15 per cent government security maturing in 2026 fell to Rs 102.76 from Rs 102.78, while yield held stable at 7.78 per cent. The 8.83 per cent government security maturing in 2023 drifted to Rs 105.89 from Rs 105.99, while yield gained to 7.87 per cent against 7.86 per cent. The 8.28 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 also quoted lower at Rs 103.36 and Rs 111.45, respectively. However, the benchmark 8.40 per cent government security maturing in 2024 gained marginally to Rs 103.99 from Rs 103.9875 yesterday, while its yield held steady at 7.79 per cent. The interbank call rates opened higher at 7.40 per cent against Tuesday's close of 6.60 per cent and edged up further to 7.70 per cent before sliding back to end at 6.50 per cent. Meanwhile, the  Reserve Bank of India ( RBI), under the  Liquidity Adjustment Facility ( LAF), purchased securities worth Rs 19.29 billion in 7-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 228.98 billion from 35-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday. ","pubdate":"Wed, 08 Apr 2015 20:28:33 +0530","newspaper":"Economic Times"},{"title":"China stocks rise on easing hopes; HK market fever spills into B shares","content":"\n\nSHANGHAI (Reuters) - Shares in China and Hong Kong rose on Friday and looked set for solid gains on the week as tepid inflation data reinforced expectations of more policy easing.\nChina's annual consumer inflation rate (CPI) stayed flat at 1.4 percent, data showed early in the day, while producer prices (PPI) contracted 4.6 percent, highlighting the pressures facing Chinese companies as the economy slows.ANZ said in a research note that \"the soft inflation data in March means the central bank needs to further loosen monetary policies.\" ANZ expects another 25 basis point interest rate cut in the second quarter, and an additional 100 basis point cut in banks' required reserve ratios by the end of the third quarter. The CSI300 index .CSI300 rose 1.2 percent at the end of the morning session, while the Shanghai Composite Index .SSEC gained 1.4 percent. For the week, they looked set for gains of 3.4 percent and 3.9 percent, respectively.The Hang Seng index .HSI added 0.4 percent, to 27,047.32 points, on track to end the week up over 7 percent, its biggest weekly gain in three years. The Hong Kong China Enterprises Index .HSCE gained 0.6 percent, and was set to advance 9 percent on the week as mainland investors piled into the market in search of China-related shares with cheaper valuations.\"I want to say we should all take a deep breath after these record setting days and remember we're on a long road,\" Charles Li, chief executive of the Hong Kong Exchanges and Clearing Ltd (HKEx) (0388.HK) said in a blog post on the exchange's website.\"Staying calm and exercising caution in a more active market will be a challenge to each investor in Hong Kong.\" On Friday morning, mainland investors used about 4 billion yuan ($644.29 million) buying Hong Kong shares under the Shanghai-Hong Kong Stock Connect scheme, or about 40 percent of the daily quota. The quotas were exhausted on Wednesday and Thursday.The rally in Hong Kong is spilling over into China's B-share market, a long neglected corner of China's stock market.The Shanghai's dollar-denominated B-share index .SSEB jumped 9 percent on Friday to a seven-year high and its largest one-day rally since 2009, with every single component of the index rising by 10 percent, the maximum daily limit.The Hong Kong dollar-denominated B-shares in Shenzhen .SZSB surged over 6 percent.    \"Investors were starting to realize that B shares, like Hong Kong stocks, are also much cheaper\" than Chinese stocks, said Wu Kan, head of equities trading at Shanghai-based investment firm Shanshan Finance.     ($1 = 6.2084 Chinese yuan) (Editing by Kim Coghill)","pubdate":"Fri, 10 Apr 2015 10:47:48 +0530","newspaper":"Reuters"},{"title":"Mom sneaks kids to Mickey D\u2019s amid fast-food backlash, won\u2019t tell Dad","content":"\n\nLOS ANGELES (Reuters) - Carolin Wood, an artist and graduate student from Brooklyn's trendy Greenpoint neighborhood, has a secret that she keeps from her husband and some foodie friends. Once a month, she takes her two young children to McDonald's for inexpensive breakfasts or ice cream.\n\"We call it our 'sneaky meal' because my husband thinks it's absolutely disgusting,\" said Wood, 35. \"He doesn't want to know anything about it.\"Even though Wood has fond memories of her own childhood visits to McDonald's, that doesn't mean she thinks the food is healthy. At home, she buys organic milk and meat as often as a tight family budget allows.The fact that young mothers like Wood are teaching their children not to tell their dads that they've been to McDonald's may underscore how hard it may be for the world's largest restaurant chain to remake its image and revive U.S. sales. To lure back consumers, McDonald's Corp's (MCD.N) new Chief Executive Steve Easterbrook recently pledged to eliminate chickens fed human antibiotics at its U.S. restaurants.That won't make a difference for Wood, who said she's never eaten a Chicken McNugget and has no plans to try one, even after the antibiotic change.McDonald's didn't comment for this story. The company doesn't break out what percentage of its customers are young adults and\/or mothers. \"There is still a negative health connotation,\" said Morningstar restaurant analyst R.J. Hottovy. \"It can be fixed, but it isn't an easy fix.\"Hottovy said he expects McDonald's to eventually turn around its business, but not within the next couple years. McDonald's shares fell 30 cents to $96.55 on Thursday. The shares are down 1.8 percent from a year ago, compared with a 11.7 percent gain by the benchmark Standard & Poor's 500 Index in the same period.Sixty percent of American adults would like more restaurants to serve antibiotic-free meat, according to a recent Reuters\/Ipsos survey of 1,364 participants. Among parents with children under the age of 18, 40 percent said they would be more likely to take the kids to McDonald's if it had antibiotic-free chicken on the menu. The Reuters\/Ipsos online poll was conducted between March 27 and 30, roughly two weeks after McDonald's announced its plan for antibiotics in chicken.According to another poll by Morgan Stanley of 3,000 U.S. adults, the cohort known as Millennials, generally defined as being 18 to 34 years old, care more about all-natural and organic ingredients than older generations. Millennials also are more likely than other groups to eat out on a weekly basis. And while they still eat more traditional fast food than other generations, they express more dissatisfaction with the category, according to the Morgan Stanley poll. That helps explain why chains like Chick-fil-A and Chipotle Mexican Grill Inc (CMG.N), which have committed to sourcing 100 percent antibiotic-free meats, have been taking a bite out of McDonald's sales. More than one-third of parents who answered the Reuters\/Ipsos poll said they take their children to McDonald's at most a few times a year.MULTIPLE MAKEOVERSA series of critical documentaries over roughly the last decade, including \"Super Size Me\" in 2004, amplified consumer concerns about the health effect of eating fast food. McDonald's has repeatedly tried to change that image. Among other things, it introduced salads to its menu and tweaked its Happy Meals for children by adding apple slices and cutting the french-fry portion by more than half.Last year, McDonald's sought direct feedback from its U.S. diners with an online campaign called \"Our food. Your questions.\" Frequent queries included \"Is 'pink slime' in a Chicken McNugget?\" and \"Why doesn't your food rot?\" Food industry experts have said the move toward mostly antibiotic-free chicken will accelerate similar efforts by other fast-food chains and major supermarkets. It may also help curb the rise of antibiotic-resistant superbugs that contribute to thousands of U.S. deaths every year.Samantha Trujillo, 33, a stay-at-home mother of four from Yuma, Arizona, said McDonald's vow to wean chickens off most antibiotics makes her feel a little bit better about the chain and its food.\"I probably would eat the chicken a little more often,\" said Trujillo, who takes her kids out every month or two to get Happy Meals and visit the air-conditioned play area for a respite from Arizona's sweltering heat.Asked whether McDonald's antibiotic move could move the needle for the company that saw 2014 revenue, profit and traffic fall, Mark Kalinowski, restaurant analyst for Janney Capital Markets, said: \"My best guess is that it'll help only a little bit at most.\"People who care about antibiotic-free meats want them to be completely antibiotic free, Kalinowski said. \"If you're going to do it, do it. Don't be half pregnant.\"Amanda Libby, 46, a mom from Danvers, Massachusetts, agreed. She used to take her two sons for Happy Meals fairly regularly during baseball season, something she now regrets after seeing films like 2011's \"Forks Over Knives,\" which says that many common diseases can be prevented by avoiding processed foods. She now only occasionally allows her boys to eat McDonald's hamburgers, and would like the chain to use 100 percent antibiotic-free meats before making more frequent trips.\"Mostly (antibiotic-free) won't cut it for me,\" said Libby.  (Reporting by Lisa Baertlein in Los Angeles, editing by John Pickering)","pubdate":"Fri, 10 Apr 2015 10:45:22 +0530","newspaper":"Reuters"},{"title":"HK Exchange says to raise quotas for mainland investors, inflows pressuring peg","content":"\n\nHONG KONG (Reuters) - The Hong Kong stock exchange expects to increase quotas for mainland China investors by more than 30 percent, its chief executive said, a day after heavy capital inflows from the mainland forced the city's central bank to sell Hong Kong dollars to defend its currency peg.\nFor the first time since August, the Hong Kong Monetary Authority (HKMA) intervened on Thursday to sell HK$3.1 billion ($400 million) in Hong Kong dollars as the local currency hit the strong end of its official trading range.The intervention came as Hong Kong stocks surged to a seven-year high, powered by mainland Chinese buyers after Beijing last week encouraged institutions, including mutual funds and insurers, to purchase Hong Kong shares. [.HK]Speaking at a media briefing on Friday, Hong Kong Exchanges and Clearing Ltd (HKEx) (0388.HK) Chief Executive Charles Li said the exchange could boost the current quotas under the Hong Kong-Shanghai stock connect program by more than 30 percent.The quotas limit how much mainland investors can buy Hong Kong stocks, and how much Hong Kong-based investors can buy stocks in China.Li did not say when the quotas would be raised.Chinese investors snapped up all of the 10.5 billion yuan ($1.7 billion) daily quota .SQUOTA.HS for buying Hong Kong stocks on both Wednesday and Thursday. It was the first time this has happened since the program was launched in October last year.The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.John Zhu, greater China economist for HSBC, said it was still too early to say whether HKMA would need additional tools to cope with pressure on the peg arising from the increase in capital inflows.\"As with everything, when the facts change then you should probably start to have a rethink but I don\u2019t think things have changed that drastically, certainly not from the macro level,\" Zhu said. (Reporting By Michelle Chen and James Pomfret; Writing by Kazunori Takada and Lawrence White; Editing by Simon Cameron-Moore)","pubdate":"Fri, 10 Apr 2015 10:43:50 +0530","newspaper":"Reuters"},{"title":"Strong turnout for world's first glimpse at Apple Watch","content":"\n\nSYDNEY\/SAN FRANCISCO (Reuters) - Consumers in Australia flocked to Apple Inc's (AAPL.O) store in Sydney on Friday to get the world's first up-close look at the tech giant's smartwatch, which the company expects will be its next runaway hit.\nThe Apple Watch, CEO Tim Cook's first new major product, was available for pre-order online and to try out in stores - but not take home.On April 24, consumers will be able to buy it online or by reservation at retail locations including high-end fashion boutiques in Paris, London and Tokyo, part of Apple's strategy of positioning the wearable computer as a must-have accessory.On Friday morning Apple's Australian flagship store in Sydney's financial district was packed with those hoping to peek at the device, although just around 20 die-hard fans queued out front, modest by the standards of a major Apple launch.Alexander Bock, a backpacker from Germany, stood outside the shop's towering glass facade. He hopes to save enough money to buy the sports version of the watch, he said.The Apple Watch sport starts at $349 while the standard version comes in at $549 in the U.S. High-end \"Edition\" watches with 18-karat gold alloys are priced from $10,000 and go as high as $17,000.\"I feel naked without a watch. I think I will buy the Apple watch with the sports band ... I'm working very hard right now so I can buy this watch,\" Bock told Reuters.The watch marks the Cupertino, California company's debut in a fledgling wearable technology market.Based on recent customer interest at its stores, Apple expects demand for the watch, which allows users to check email, listen to music and make phone calls when paired with an iPhone, to exceed availability at launch, it said on Thursday.Reviewers this week praised the watch, which also helps users monitor their health and exercise, as \"beautiful\" and \"stylish\" but gave it poor marks for relatively low battery life and slow-loading apps.For women, the various sizes and wrist bands make this smartwatch more pleasing than earlier versions from Samsung Electronics Co Ltd (005930.KS) and others, said Kantar World Panel market analyst Carolina Milanesi, who has been wearing the watch for a few days.At the Apple Store in Omotesando, a high-end shopping district in the heart of Tokyo, dozens of shoppers huddled around two glass displays, snapping pictures of the range of options available on the different watch models.\"I actually tried it on briefly, and it's so light it doesn't feel like it's on my wrist,\" 26-year-old salesman Yosuke Hosoi told Reuters.NOT FOR EVERYONESales estimates for 2015 vary widely. Piper Jaffray predicts 8 million units and Global Securities Research forecasts 40 million. By comparison, Apple sold nearly 200 million iPhones last year.\"Is it for everybody? No, but I don't think any wearables are yet,\" Milanesi said.Apple's watch is widely expected to outsell those by Samsung, Sony Corp (6758.T) and Fitbit, that have attracted modest interest from consumers. It will likely account for 55 percent of global smartwatch shipments this year, according to Societe Generale.Underscoring its marketing strategy, Apple is selling the watch through a handful of high-end stores including Selfridges in London, Galeries Lafayette in Paris and Isetan in Tokyo.Still, experts said Apple's offering was unlikely to displace the market share of luxury-brand watch makers.\"This is just Apple's interpretation of the watch, I don't think watch makers should be worried at all,\" Stephen Fenech, editor of the Tech Guide website, told Reuters.\"This is just Apple's expression where they've combined what they are good at with the fact that it's a watch with style so I think there's going to be room for everyone.\"JMP analyst Alex Gauna said he and others on Wall Street would be at stores this weekend to gauge consumer reaction.But the typically long queues at its stores on product launch days could be a thing of the past as the company emphasizes online sales, according to a leaked internal memo from retail chief Angela Ahrendts, reported by Business Insider.\"The days of waiting in line and crossing fingers for a product are over for our customers,\" she wrote.\"This is a significant change in mindset, and we need your help to make it happen. Tell your customers we have more availability online, and show them how easy it is to order.\"A spokesman for Apple in Sydney declined to comment on the memo, citing company policy.At an Apple Store in Hong Kong there was no queue, although half a dozen customers gathered near the shop door, cheering when it was opened. Demos were by online registration, after which a Reuters reporter received a demo without having to wait.\"I didn't know it's the first day. I am here to buy an iPad,\" said a 26-year-old customer who gave her name only as Ms Jian, visiting from China's Chongqing. \"I will take a look at the watch later.\"Apple shares closed 0.76 percent higher at $126.56 on Thursday. (Writing by Matt Siegel in SYDNEY; Additional reporting by Devika Krishna Kumar in Bengaluru and Teppei Kasai in Tokyo; Editing by Bernard Orr, Dean Yates and Christopher Cushing)","pubdate":"Fri, 10 Apr 2015 10:17:05 +0530","newspaper":"Reuters"},{"title":"Asian shares on track for weekly gain","content":"\n\nTOKYO (Reuters) - Asian shares advanced close to recent highs on Friday, and were on track for weekly gains, while the dollar gave up some of its overnight rise.\nMSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up about 0.5 percent, not far from the previous session's peak which was the highest since September, and on track for a robust weekly gain of over 3 percent.Hong Kong's benchmark Hang Seng Index .HSI was up about 0.5 percent after surging to seven-year highs in the previous session on money inflows from mainland China investors who are seeking cheaper shares. The Shanghai Composite Index .SSEC added 1.4 percent.Foreign-currency denominated B-shares trading in Shanghai and Shenzhen also rallied. Shanghai's dollar-denominated B-share index .SSEB rose 9 percent to a seven-year high in its largest one-day rally since 2009, with every index component rising by 10 percent, the maximum daily limit.    Japan's Nikkei stock average .N225 was up 0.1 percent after earlier breaking the 20,000 level for the first time since April 2000.Markets showed little reaction to data showing China's consumer inflation stayed flat at 1.4 percent in March, while producer prices fell slightly less than projected, keeping pressure on profit margins at Chinese companies as Beijing struggles to stimulate growth.    \"Overall, the Chinese economy is still facing serious downward pressure without any substantial improvement, and the deflationary risk is still there,\" said Yu Pingkang, chief economist at Hutai Securities in Shenzhen, adding that the central bank should roll out more monetary easing measures to lower real financing costs and boost growth.        Wall Street posted solid gains overnight, and European markets ended higher after German industrial output and trade data showed the continent's largest economy improving in February. Europe's EuroFirst 300 index .FTEU3 surged 1.1 percent to its highest level since July 2007.    News that Greece had made a 450 million euro loan payment to the International Monetary Fund, securing extra emergency lending for its banks and helped improve global risk sentiment, though it remained unclear whether Athens could satisfy creditors who remain sceptical on the country's economic reforms.U.S. Treasury yields rose overnight on the Greek news, weak demand at a sale of 30-year bonds, and a smaller-than-expected rise in weekly jobless claims that alleviated some concern about the U.S. labour market after last week's dismal March payrolls report.The yield on the benchmark 10-year Treasury note US10YT=RR stood at 1.954 percent in Asian trade, not far from its U.S. close of 1.958 percent on Thursday.    The U.S. Labor Department said workers filing for first-time jobless benefits totalled 281,000 last week, fewer than what analysts had forecast, and bringing the four-week average of claims to its lowest since 2000. \"Investors are still unwinding post-payroll pessimism so a relatively innocuous initial claims print touched off a USD and bond yield rally,\" Steven Englander, global head of G10 FX strategy at CitiFX in New York, said in a note.                Against the yen, the dollar climbed to a three-week high of 120.74 JPY= overnight, moving well away from its post-payrolls low of 118.71 yen a week ago. It was last at 120.54 yen, down slightly on the day.The euro added about 0.2 percent on the day to $1.0676 EUR= after dipping to a three-week low of $1.0637 on Thursday. The common currency's recovery helped push down the dollar index .DXY to 98.877, down about 0.3 percent on the day and moving away from its 12-year peak of 100.390 set last month. Brent crude oil futures remained firm after rising on Thursday on strong German economic data and uncertainty about negotiations on Iran's nuclear program. Brent LCOc1 added about 0.4 percent to $56.79 a barrel.  (Additional reporting by China economics team; Editing by Shri Navaratnam & Kim Coghill)","pubdate":"Fri, 10 Apr 2015 09:52:40 +0530","newspaper":"Reuters"},{"title":"China inflation flat in March, producer pricing power stays weak","content":"\n\nSHANGHAI (Reuters) - China's inflation data for March produced small positive surprises, but remained tepid, with little sign that Beijing's easing measures to date have significantly cut worrisome deflationary pressure. \nThat has led many to predict more easing measures in the pipeline, including more cuts to reserve requirement ratios for banks, although there is debate over how effective those might be at juicing inflation.In March, China's annual consumer inflation rate (CPI) stayed flat at 1.4 percent, above a poll's projected 1.3 percent. Producer prices (PPI) fell slightly less than projected, contracting 4.6 percent rather than the forecasted repeat of February's 4.8 percent pace.The March inflation data is the first in a batch of key economic data that will climax with release of first-quarter growth numbers on April 15. A Reuters poll expects growth to be a six-year low of 7 percent.PRESSURE ON MARGINSPPI has now been in negative territory for three years, highlighting sustained pressure on profit margins at Chinese companies - in particular heavy industry - as Beijing struggles to restimulate headline growth.The higher-than-expected CPI was driven by a sudden rise in pork prices, which been a drag on CPI every month since December 2013.But consumer inflation is still far short of Beijing's official 3 percent target for 2015, and some economists see that goal at risk.\"Consumer price inflation held steady in March but we expect a drop in food price inflation to pull it lower over the coming months,\" wrote Julian Evans-Pritchard of Capital Economics in a research note.Producer prices were dragged down again by mining and raw materials components. Friday's data follows a surprise recovery in manufacturing activity for March, with the official Purchasing Managers' Index (PMI) edging up to 50.1, in expansionary territory, from February's 49.9.WORRIED POLICYMAKERSPolicymakers have publicly expressed worry that the risk of deflation is rising for the world's second-largest economy, as the drag from a property market downturn and widespread factory overcapacity is compounded by an uncertain global outlook and soft commodity prices.But while lower commodity prices have punished the extraction and power production sectors, the pain is not felt across the board, as some companies have taken advantage of lower input costs to maintain profit margins. The People's Bank of China (PBOC) has made multiple cuts to guidance lending rates, and one cut to reserve requirement ratios at banks. It also launched a long-awaited deposit insurance program in April, but economists said those moves have had little impact on real borrowing costs.\"The weak inflation profile suggests that further monetary policy easing is still needed in spite of recent retreats of onshore money market rates,\" ANZ economists Zhou Hao and Liu Ligang wrote after Friday's data release.\"We believe that only permanent liquidity injection will be able to sustain the current favorable monetary conditions to head off the risk of deflation,\"  they said.The central bank has guided benchmark short-term money rates down sharply in recent weeks, and the interest rate yield curve has risen and steepened slightly as short term rates have fallen while longer term expectations have risen.  (Additional reporting by Nate Taplin and the Shanghai Newsroom, and Kevin Yao in BEIJING; Editing by Richard Borsuk)","pubdate":"Fri, 10 Apr 2015 09:27:46 +0530","newspaper":"Reuters"},{"title":"Oil up on Iran, German data, but strong dollar curbs rise","content":"\n\nNEW YORK (Reuters) - Oil prices rose on Thursday on strong German economic data and uncertainty about negotiations on Iran's nuclear program, even as a strong dollar curbed oil's bounce a day after futures tumbled 6 percent.\nBrent crude rallied 4 percent intraday as European equities strengthened on German industrial output and trade data and Greece's repayment of a loan to the International Monetary Fund. [MKTS\/GLOB]Also supportive was Iran saying it will only sign a final nuclear accord if all sanctions imposed over its disputed nuclear program are lifted the same day.\"The German data provided some lift early because it comes even before the expected economic boost from central bank quantitative easing and any sign that an agreement with Iran isn't going to get done is bullish,\" said Phil Flynn, analyst at Price Futures Group in Chicago.Dollar-denominated oil pared gains on the strong dollar, which was driven higher by sentiment that U.S. interest rates inevitably will rise. [USD\/]Brent May crude LCOc1 rose $1.02 to settle at $56.57 a barrel, having reached $58.02.U.S. May crude CLc1 rose 37 cents to settle at $50.79, after hitting $52.07. U.S. crude's Tuesday close near $54 was the strongest since Dec. 30.\"The dollar's strength helped pull crude off the highs and the big jump in inventories is still a factor,\" said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.Government data on Wednesday showed U.S. crude inventories surged 10.95 million barrels to a record 482.4 million last week, the biggest weekly gain in 14 years. [EIA\/S]News late Tuesday that Saudi Arabia's production rose to 10.3 million barrels a day (bpd) in March also sparked Wednesday's tumble.An adviser to Saudi oil minister Ali al-Naimi struck a hopeful note on Thursday, saying that this price slide was temporary and that global oil demand was expected to grow annually by up to 1 million bpd.    Iranian oil minister Bijan Zanganeh said in Beijing on Thursday that OPEC would \"coordinate\" to accommodate Iran's return to oil markets without causing a price crash. OPEC's strategy of holding output steady is not working and members should discuss production levels before June's meeting, Zanganeh said.     OPEC's ability to coordinate will be under scrutiny as the situation in Yemen and other conflicts in the region keep relations between Iran and Saudi Arabia tense. (Additional reporting by Himanshu Ojha and Christopher Johnson in London and Henning Gloystein and Florence Tan in Singapore; editing by Jason Neely, Pravin Char and Ted Botha)","pubdate":"Fri, 10 Apr 2015 06:52:08 +0530","newspaper":"Reuters"},{"title":"GE close to selling nearly all its real estate holdings: source","content":"\n\n(Reuters) - General Electric Co is nearing a deal to sell practically all of its $30 billion real estate portfolio to a consortium led by Blackstone Group and Wells Fargo & Co, according to a person familiar with the matter.\nThis would be the biggest commercial real estate deal since Blackstone's acquisition of office landlord Equity Office Properties Trust in 2007 for $39 billion, including debt. It comes as the Federal Reserve is widely expected to raise interest rates later in the year, pushing up financing costs.A deal could be announced as early as Friday, said the source, who requested anonymity because the deal is not yet public. GE and Blackstone declined to comment.\"We're in that sweet spot of 2007 when there's a lot of money, commercial real estate looks really attractive, and you could do some mega deals,\" said Ken Riggs, president of Situs RERC, a firm does commercial real estate valuations.GE has been retreating from its property investments globally as it focuses on improving profits from sales of industrial products such as jet engines, generators, electric grid gear and oil field equipment. GE's industrial operations are expected to post a rise of at least 10 percent in profit this year. Revenue from the company's real estate business fell 24 percent in 2014, partly due to a decrease in net gains on property sales.Chief Executive Jeff Immelt has said he expects profits from the company's aviation, power & water and other industrial businesses to rise to 75 percent of the company's total by 2016 from 55 percent in 2013.To achieve that goal, he has been remaking GE's portfolio of businesses, spinning off a retail finance operation, selling GE's appliance business to Sweden's Electrolux AB and agreeing to buy Alstom SA's power generation and electric grid business for $14 billion.\n        \n        Blackstone said in November it would buy GE's property unit in Japan in a deal worth more than $1.6 billion. The private equity firm also bought warehouses and development land in the United States from GE's real estate unit.GE shares ended 2.9 percent higher at $25.73.The news was first reported by the Wall Street Journal.Real estate accounted for about 7 percent of GE Capital's total $499 billion in assets related to continuing operations as of Dec. 31.In his letter to shareholders last month, Immelt said his plan is to reposition GE Capital \"as a smaller, safer specialty finance leader with less leverage and more liquidity.\" (Additional reporting by Sagarika Jaisinghani in Bengaluru; Editing by Savio D'Souza, Don Sebastian, Andrew Hay and Richard Chang)","pubdate":"Fri, 10 Apr 2015 05:52:19 +0530","newspaper":"Reuters"},{"title":"GE close to selling nearly all its real estate holdings: source","content":"\n\n(Reuters) - General Electric Co is nearing a deal to sell practically all of its $30 billion real estate portfolio to a consortium led by Blackstone Group and Wells Fargo & Co, according to a person familiar with the matter.\nThis would be the biggest commercial real estate deal since Blackstone's acquisition of office landlord Equity Office Properties Trust in 2007 for $39 billion, including debt. It comes as the Federal Reserve is widely expected to raise interest rates later in the year, pushing up financing costs.A deal could be announced as early as Friday, said the source, who requested anonymity because the deal is not yet public. GE and Blackstone declined to comment.\"We're in that sweet spot of 2007 when there's a lot of money, commercial real estate looks really attractive, and you could do some mega deals,\" said Ken Riggs, president of Situs RERC, a firm does commercial real estate valuations.GE has been retreating from its property investments globally as it focuses on improving profits from sales of industrial products such as jet engines, generators, electric grid gear and oil field equipment. GE's industrial operations are expected to post a rise of at least 10 percent in profit this year. Revenue from the company's real estate business fell 24 percent in 2014, partly due to a decrease in net gains on property sales.Chief Executive Jeff Immelt has said he expects profits from the company's aviation, power & water and other industrial businesses to rise to 75 percent of the company's total by 2016 from 55 percent in 2013.To achieve that goal, he has been remaking GE's portfolio of businesses, spinning off a retail finance operation, selling GE's appliance business to Sweden's Electrolux AB and agreeing to buy Alstom SA's power generation and electric grid business for $14 billion.Blackstone said in November it would buy GE's property unit in Japan in a deal worth more than $1.6 billion. The private equity firm also bought warehouses and development land in the United States from GE's real estate unit.GE shares ended 2.9 percent higher at $25.73.The news was first reported by the Wall Street Journal.Real estate accounted for about 7 percent of GE Capital's total $499 billion in assets related to continuing operations as of Dec. 31.In his letter to shareholders last month, Immelt said his plan is to reposition GE Capital \"as a smaller, safer specialty finance leader with less leverage and more liquidity.\" (Additional reporting by Sagarika Jaisinghani in Bengaluru; Editing by Savio D'Souza, Don Sebastian, Andrew Hay and Richard Chang)","pubdate":"Fri, 10 Apr 2015 05:10:48 +0530","newspaper":"Reuters"},{"title":"With primetime TV, Apple hopes to hook customers for new Watch","content":"\n\nLOS ANGELES\/SAN FRANCISCO (Reuters) - As Apple Inc (AAPL.O) debuts its smartwatch on Friday, the technology company focused efforts to drum up buzz on U.S. television, using expensive primetime spots to entice customers to the fledgling wearable technology market.\nSince showing off the watch at a March 9 event, Apple has spent $38 million on its \"Watch Reimagined\" television campaign, according to figures from iSpot.tv, which tracks U.S. TV ads and digital responses in real time.That's a little less than the $42 million Apple spent over the past five months on TV ads for the iPhone 6 and 6 Plus. Unlike the iPhone 6, which has developed a loyal customer base, the watch is Apple's first new product under CEO Tim Cook and the Cupertino, California company's first foray at in the emerging wearable technology market.\"The iPhone 6 was a barn burner from the get-go. But with the Apple Watch, which is new product category with less familiarity, it makes sense that they'd go after it with more intensity,\" said JMP analyst Alex Gauna.Starting Friday, the Apple Watch will be available for preview in stores and preorder on the Internet ahead of its April 24 on-sale date. An Apple spokesman declined to comment on the company's marketing strategy.Out of 300-plus airings of the Apple Watch commercial since March, almost half have been in primetime spots tied to shows such as AMC's \"The Walking Dead,\" the National Collegiate Athletic Association (NCAA) basketball tournament and NBC's talent competition \"The Voice.\" Data also showed that Apple Watch advert airings were ramped up on Monday this week, capitalizing on a widely viewed NCAA final between Duke and Wisconsin.Apple's device will likely account for 55 percent of global smartwatch shipments this year in a market worth about $11 billion, according to market analysis group Societe Generale.But Apple still faces a challenge in selling the new concept. Reviewers, dismayed by short battery life and slow-loading apps, said it is more for tech pioneers than the masses.Nevertheless, Apple is out-spending other smartwatch makers like Samsung Electronics (005930.KS) and has a history of getting a big return from its TV advertising spending.\"Apple occupies 13 percent of spending in the smartphone category, while generating 40 percent of the buzz garnered from TV ads\", said Sean Muller, CEO of iSpot.tv. (Editing by Mary Milliken)","pubdate":"Fri, 10 Apr 2015 03:33:22 +0530","newspaper":"Reuters"},{"title":"Apple expects strong demand in smartwatch consumer debut","content":"\n\nSAN FRANCISCO (Reuters) - Apple Inc (AAPL.O) expects tremendous interest for its new smartwatch and demand to outstrip supply as consumers get an up-close look on Friday at CEO Tim Cook's first major product.\nThe Apple Watch, which also marks the Cupertino, California company's debut in a fledgling wearable technology market, will be available for pre-order online and to try out in stores - but not take home.On April 24, consumers will be able to buy it online or by reservation at retail locations including high-end fashion boutiques in Paris, London and Tokyo.Based on recent customer interest at its stores, Apple expects demand for the watch, which allows users to check email, listen to music and make phone calls when paired with an iPhone, to exceed availability at launch, it said on Thursday.Reviewers this week praised the watch, which also helps users monitor their health and exercise, as \"beautiful\" and \"stylish\" but gave it poor marks for relatively low battery life and slow-loading apps.For women, the various sizes and wrist bands make this smartwatch more pleasing than earlier versions from Samsung Electronics (005930.KS) and others, said Kantar World Panel market analyst Carolina Milanesi, who has been wearing the watch for a few days.\"Is it for everybody? No, but I don't think any wearables are yet,\" she said.Still, Apple's watch is widely expected to outsell those by Samsung, Sony (6758.T) and Fitbit, that have attracted modest interest from consumers. It will likely account for 55 percent of global smartwatch shipments this year, according to Societe Generale.The Apple Watch sport starts at $349 and the standard version of the watch starts at $549. High-end \"Edition\" watches with 18-karat gold alloys are priced from $10,000 and go as high as $17,000.Underscoring its strategy to market the watch as a fashion accessory, Apple is selling it through a handful of high-end stores including Selfridges in London, Galeries Lafayette in Paris and Tokyo's Isetan department store.JMP analyst Alex Gauna said he and others on Wall Street would be at stores this weekend to gauge consumers' reactions to the watches.Sales estimates for 2015 vary widely. Piper Jaffray predicts 8 million units will be sold and Global Securities Research forecasts 40 million. By comparison, Apple sold nearly 200 million iPhones last year.Apple shares closed 0.76 percent higher at $126.56 on Thursday. (Additional reporting by Devika Krishna Kumar in Bengaluru; Editing by Bernard Orr)","pubdate":"Fri, 10 Apr 2015 03:00:02 +0530","newspaper":"Reuters"},{"title":"Citigroup's head of franchise risk, Brian Leach, retiring","content":"\n\nNEW YORK (Reuters) - Brian Leach, head of franchise risk and strategy for Citigroup Inc (C.N), said on Thursday that he is retiring and does not know what he will do next.\nLeach's departure was announced to employees in memos from him and from CEO Mike Corbat.Leach joined Citigroup during the financial crisis in 2008 and worked under previous CEO Vikram Pandit.Corbat noted that when he became CEO, he asked Leach to stay on and lead all control functions at the company. Members of Leach's team will have new reporting lines beginning May 1, Corbat said. (Reporting by David Henry in New York)","pubdate":"Fri, 10 Apr 2015 02:58:35 +0530","newspaper":"Reuters"},{"title":"Japan's Eisai to cut about 450 jobs in U.S.","content":"\n\n(Reuters) - Japanese pharmaceutical company Eisai Co Ltd (4523.T) said it would cut about 25 percent, or about 450 jobs, in the United States as part of a realignment to create a more efficient and focused company.\nThe company's U.S. unit Eisai Inc employs about 1,800 people in the United States, according to its website, across operations such as research and development, manufacturing, sales and administration.Eisai does not have plans to close any of its main offices or facilities in the United States, it said in a statement. (Reporting by Rosmi Shaji in Bengaluru; Editing by Savio D'Souza)","pubdate":"Fri, 10 Apr 2015 02:48:23 +0530","newspaper":"Reuters"},{"title":"Wall Street ends up on energy rebound; early earnings weak","content":"\n\nNEW YORK (Reuters) - U.S. stocks closed higher on Thursday, with energy shares leading the advance as crude oil rebounded off a sharp decline, while investors bet that companies would top lowered expectations this earnings season.\nThe day's gains were broad, with eight of the S&P 500's ten industry sectors up on the day. The market extended its gains in afternoon trading, putting the S&P 500 about 1.3 percent away from its record close.Equities have struggled for direction of late, with investors seeing limited upside potential in equities, but also few alternatives for yield. Many investors are looking ahead to the first-quarter earnings season for market guidance.Earnings for S&P 500 companies are seen falling 2.8 percent in the first quarter, according to Thomson Reuters data, compared with the rise of 5.3 percent that had been forecast on Jan. 1. The drop in profits, especially for companies with multi-national exposure, is partially attributable to strength in the U.S. dollar. However, analysts said the currency impact would not necessarily be a long-term detriment to stock prices.\"To the extent the dollar means companies are losing business, it's a problem, but if earnings are just being translated into a stronger dollar, that's less of a problem,\" said Jim McDonald, chief investment strategist at Northern Trust Asset Management in Chicago. \"An earnings recession is only a real problem for stocks if it is accompanied by an economic recession, which isn't the case here. We're positioned for an upside move as expectations have been lowered to the point where we're set up for a positive surprise.\"Among early reporters, Alcoa Inc (AA.N) fell 3.3 percent to $13.22 a day after it reported revenue that missed expectations. Bed Bath & Beyond (BBBY.O), which also reported weaker-than-expected results late Wednesday, fell 5.4 percent to $73.46.The energy sector .SPNY climbed 1.5 percent on the back of a 1.8 percent rise in Brent crude LCOc1, which rebounded from a drop of 6 percent on Wednesday. Continued uncertainty about an agreement on Iran's nuclear program also provided a lift. ConocoPhillips (COP.N) rose 3.4 percent to $67.In the latest economic data, jobless claims rose in the latest week, though the rise was smaller than anticipated.The Dow Jones industrial average .DJI rose 56.22 points, or 0.31 percent, to 17,958.73, the S&P 500 .SPX gained 9.29 points, or 0.45 percent, to 2,091.19 and the Nasdaq Composite .IXIC added 23.74 points, or 0.48 percent, to 4,974.57.After the market closed, PriceSmart Inc (PSMT.O) fell 2.6 percent to $83 after it reported it second-quarter results, while Medicines Co (MDCO.O) sank 8.3 percent to $25.50 after giving a first-quarter revenue outlook.Declining issues outnumbered advancing ones on the NYSE by 1,513 to 1,506, for a 1.00-to-1 ratio on the downside; on the Nasdaq, 1,393 issues fell and 1,314 advanced for a 1.06-to-1 ratio favoring decliners.The benchmark S&P 500 index was posting 13 new 52-week highs and 1 new lows; the Nasdaq Composite was recording 76 new highs and 29 new lows.  About 6.07 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.25 billion. (Editing by Meredith Mazzilli)","pubdate":"Fri, 10 Apr 2015 02:30:41 +0530","newspaper":"Reuters"},{"title":"Oil up on Iran, German data, but strong dollar curbs rise","content":"\n\nNEW YORK (Reuters) - Oil prices rose on Thursday on strong German economic data and uncertainty about negotiations on Iran's nuclear program, even as a strong dollar curbed oil's bounce a day after futures tumbled 6 percent.\nBrent crude rallied 4 percent intraday as European equities strengthened on German industrial output and trade data and Greece's repayment of a loan to the International Monetary Fund. [MKTS\/GLOB]Also supportive was Iran saying it will only sign a final nuclear accord if all sanctions imposed over its disputed nuclear program are lifted the same day.\"The German data provided some lift early because it comes even before the expected economic boost from central bank quantitative easing and any sign that an agreement with Iran isn't going to get done is bullish,\" said Phil Flynn, analyst at Price Futures Group in Chicago.Dollar-denominated oil pared gains on the strong dollar, which was driven higher by sentiment that U.S. interest rates inevitably will rise. [USD\/]Brent May crude LCOc1 rose $1.02 to settle at $56.57 a barrel, having reached $58.02.U.S. May crude CLc1 rose 37 cents to settle at $50.79, after hitting $52.07. U.S. crude's Tuesday close near $54 was the strongest since Dec. 30.\"The dollar's strength helped pull crude off the highs and the big jump in inventories is still a factor,\" said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.Government data on Wednesday showed U.S. crude inventories surged 10.95 million barrels to a record 482.4 million last week, the biggest weekly gain in 14 years. [EIA\/S]News late Tuesday that Saudi Arabia's production rose to 10.3 million barrels a day (bpd) in March also sparked Wednesday's tumble.An adviser to Saudi oil minister Ali al-Naimi struck a hopeful note on Thursday, saying that this price slide was temporary and that global oil demand was expected to grow annually by up to 1 million bpd.    Iranian oil minister Bijan Zanganeh said in Beijing on Thursday that OPEC would \"coordinate\" to accommodate Iran's return to oil markets without causing a price crash. OPEC's strategy of holding output steady is not working and members should discuss production levels before June's meeting, Zanganeh said.     OPEC's ability to coordinate will be under scrutiny as the situation in Yemen and other conflicts in the region keep relations between Iran and Saudi Arabia tense. (Additional reporting by Himanshu Ojha and Christopher Johnson in London and Henning Gloystein and Florence Tan in Singapore; editing by Jason Neely, Pravin Char and Ted Botha)","pubdate":"Fri, 10 Apr 2015 01:01:42 +0530","newspaper":"Reuters"},{"title":"Google anti-trust foes see friend in new EU competition chief","content":"\n\nBRUSSELS (Reuters) - After waiting more than four years for Brussels to resolve his anti-trust complaint against Google while traffic to his website plunged by 80 percent, Michael Weber of German online mapping service Hot-Map.com held out little hope of success. Until now.\nHe says a meeting with the new competition chief of the European Commission has left him with newfound hope that Brussels will take action at last to curb behavior by the U.S. Internet giant, which he blames for hurting his business.Danish politician Margrethe Vestager, who took over the EU competition portfolio in November, inherited an anti-trust complaint by more than a dozen companies against Google, left unresolved by her Spanish predecessor Joaquin Almunia.Almunia launched an investigation in 2010 and initially concluded that Google may have hurt competitors by favoring its own products and services in search results and blocking advertisers from moving their campaigns to rival platforms.Since then, Google has offered three settlement proposals to resolve the case. Most recently, just over a year ago, it offered to give competing products and services bigger visibility on its website, let content providers decide what material it can use for its own services and make it easier for advertisers to move their campaigns to rivals.Almunia initially accepted that deal, only to reverse his decision six months later and demand more concessions, leaving the ultimate decision to his successor.So far, Vestager has said nothing in public that would explicitly signal what course she is considering.She has also indicated that she will not rush into a decision. Asked whether enforcement regulators should emphasize quick action in cases involving fast-moving technologies, Vestager told Reuters: \"I don't think that speed should be the priority. We should be even handed and open minded in interpretation of the facts. Of course it is better to be fast than slow but it's even better to be just.\"Nevertheless, executives from some of the companies that brought the complaint against Google say they are more optimistic now than they have been for years, and that they believe action is finally coming soon.\"With Almunia, there was no real dialogue. With Vestager, it is different. The questions she asked us show that she understands the complainants' problems,\" said Weber.Another of the complainants, who spoke on condition of anonymity because a meeting with Vestager was confidential, said: \"The first thing she said at the meeting was that she understands the harm we have suffered.\"The European Commission declined to comment on the case.Google also would not comment. Spokesman Al Verney said he would not discuss anti-trust issues.HIGH STAKESThe stakes are high for Google which faces a fine of as much as $6.6 billion if found guilty of anti-competitive behavior. Even more disruptive, it may have to modify its business practices.Google's dominant positions in markets like online search, advertising and smartphone operating systems have drawn regulatory scrutiny in various jurisdictions around the globe.Its longstanding position is that competition is \"just a click away\" - a phrase meant to indicate that users have easy access to use rival services - and that its products are popular because people find them useful.Vestager, 46, was a free-trading economy minister in Denmark who jolted Danes with deep cuts to the social welfare system, earning a reputation as a firm negotiator before coming to Brussels.She has spoken in general terms of the need to keep fast-changing industries open and contestable and said both large and small players should be able to compete on the merits of their products, comments that some of the Google complainants have interpreted as sympathetic toward their case.They also note that she met some of the complainants before seeing Google's executive chairman Eric Schmidt and general counsel Kent Walker last month.In one sign of movement in recent weeks, the European Commission has asked some of the Google opponents to allow regulators to declassify some of the confidential data they submitted to justify their accusations, a step that would be necessary to present the data to Google for its response.Wilko van Weert, a partner at law firm McDermott Will & Emery and specialist in the field, said Vestager could push for a settlement that would require Google to provide more information about its search ranking formula.\"Coming from a Scandinavian culture where transparency is very important, I would not be surprised if she pushes for maximum transparency in the way Google organizes and manages its search results,\" he said.Any ruling by Vestager might have to be able to survive a potential court challenge from Google, which could be tougher to withstand because of Almunia's previous reversals.Vestager may initially want to play hard ball, but that does not mean she will close the door to a settlement, said Mario Mareniello, a former economist at the Commission's competition unit and now an expert at think tank Breugel.\u201cIf at a certain point in the process effective remedies addressing her objections would be offered by Google, I guess it would be hard for her to say no,\u201d he said. (Reporting by Foo Yun Chee; Editing by Peter Graff)","pubdate":"Fri, 10 Apr 2015 00:34:55 +0530","newspaper":"Reuters"},{"title":"BlackRock bullish on emerging markets debt","content":"\n\n(Reuters) - BlackRock sees opportunities to invest in emerging markets debt, despite the rising U.S. dollar and an expected increase in U.S. interest rates this year, executives said Thursday.\nGiven the amount of deleveraging in some emerging markets countries over the past several years, and the unpredictability of other markets, like the European credit market, investors should consider emerging markets debt, BlackRock's bond managers said at a breakfast roundtable Thursday morning in New York.Traditionally when the Fed moves, the thinking is that investors have to get out of emerging markets, but that is no longer true, said Rick Rieder, chief investment officer of fundamental fixed income and co-head of Americas fixed-income at BlackRock.\"We think you can create opportunities in more stable parts of the world,\" Rieder said.Specifically, BlackRock sees opportunities in India, Indonesia and Mexico, which it views as  high-quality countries with strong balance sheets, said Amer Bisat, an emerging markets portfolio manager in BlackRock's fixed income group.\"We are happy to take on the interest rate risk in these local markets,\" he said.The firm also sees opportunities in the sovereign credit of  countries like Mexico, Indonesia as well as Slovenia, Bisat said.Meanwhile, the firm is short or underweight Venezuela, Ukraine, South Africa and Turkey, which have deteriorating credit.To be sure, emerging markets is facing an \"inhospitable environment,\" Bisat said.Headwinds include collapsing commodity prices; a deterioration in global trade as more developed countries rely on emerging markets less; an increasing cost of capital and the rising value of the U.S. dollar, Bisat said.The spread between emerging markets growth and developing markets growth has dropped from seven percent in the mid 2000s to two percent currently, he said.But many emerging markets countries have stronger balance sheets than they have had in the past 30 years and are better equipped to deal with these challenges, Bisat said.\"There are buckets of value that are actually quite interesting,\" he said.Still, the foreign exchange market as the U.S dollar rises in value will continue to be a headwind for emerging markets, Bisat said.\"We have so far continued to play the emerging markets FX for the short side,\" Bisat said.(Corrects day in first and second paragraphs) (Reporting by Jessica Toonkel; Editing by David Gregorio)","pubdate":"Thu, 09 Apr 2015 22:40:57 +0530","newspaper":"Reuters"},{"title":"GM mulls $1.3 billion expansion of Texas assembly plant","content":"\n\n (This April 8 story corrects second paragraph to say GM is adding 589 jobs, raising the required minimum to 3,179 at the plant, not adding 589 jobs to existing 3,179)\n(Reuters) - General Motors Co (GM.N) is mulling a $1.3 billion expansion of its Arlington, Texas, assembly plant to boost production of its sport-utility vehicles, according to documents from the city.The U.S. automaker will add 1.2 million square feet (111,000 square meters) of space to the plant, adding 589 jobs and raising the plant's required minimum employment level to 3,179, the city said. The plant currently employs 4,125, more than the required level, the city said.The city council is scheduled to hold a public hearing on April 14 to consider establishing a reinvestment zone at the location. The city has also proposed reducing taxes by 80 percent for 10 years on the expanded plant and its equipment and waiving building permit and development fees, according to a city staff report.The company, which is among the top 10 employers in Arlington according to the city's website, will spend $307 million on the physical expansion and $986 million on new equipment. \"GM is developing a business case for a potential future investment at Arlington Assembly. An investment would fund facility improvements aimed at strengthening the plant's manufacturing capability. We cannot share details at this time,\" GM spokeswoman Jennie Ecclestone said in an emailed statement.GM had said it would begin construction to expand its Lansing Delta Township assembly plant in Michigan in a $63 million project last October.   If the council approves the reinvestment zone on April 14, it could vote on incentives as soon as April 28, the report said. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Lisa Shumaker)","pubdate":"Thu, 09 Apr 2015 22:19:56 +0530","newspaper":"Reuters"},{"title":"LinkedIn to buy online education company lynda.com for $1.5 billion","content":"\n\n(Reuters) - Professional social network operator LinkedIn Corp (LNKD.N) said it would buy privately held online education company lynda.com in a cash-and-stock deal valued at about $1.5 billion.\nLynda.com offers courses in a number of languages aimed at improving business, technology and creative skills. Subscription fees for its courses range between $250 and $375 per year, according to its website.With the integration of lynda.com and LinkedIn, users will know what skills are needed for the available jobs in their desired city, Ryan Roslansky, LinkedIn's head of content, wrote in a blog.LinkedIn said it would pay about 52 percent in cash and about 48 percent in stock for the acquisition.The deal will bolster LinkedIn's hiring business, which has clocked revenue growth of nearly 50 percent in each of the last three quarters, helped by rapid expansion in international markets such as China.LinkedIn shares edged up 0.1 percent at midday. (Reporting by Devika Krishna Kumar and Subrat Patnaik in Bengaluru; Editing by Ted Kerr and Saumyadeb Chakrabarty)","pubdate":"Thu, 09 Apr 2015 21:45:10 +0530","newspaper":"Reuters"},{"title":"Greece makes IMF payment, gets bank funds, but doubts remain","content":"\n\nBRUSSELS\/ATHENS (Reuters) - Greece made a crucial payment to the International Monetary Fund and won extra emergency lending for its banks on Thursday but it remained unclear whether Athens can satisfy skeptical creditors on economic reforms before it runs out of money.\nEuro zone partners gave Greece six working days to improve a package of proposed reforms in time for finance ministers of the currency bloc to consider whether to release more funds to keep the country afloat when they meet on April 24.After weeks of contradictory statements, Finance Minister Yanis Varoufakis announced that Athens was resuming the sale of state assets halted when a leftist-led government was elected in January, but would do so on different terms.\"We are restarting the privatization process as a program making rational use of existing public assets,\" Varoufakis told a conference in Paris. \"What we are saying is the Greek state does not have the capacity to develop public assets.\"He did not specify which tenders would go ahead and said the government wanted public-private joint ventures with a minimum investment commitment required from bidders, and the state retaining a stake to generate pension funds.A government official confirmed Greece had transferred the 450 million euro ($485 million) loan repayment to the IMF, reassuring financial markets after earlier doubts about whether it had money to redeem the debt and pay wages and pensions. EU officials said the Greek delegate made an urgent plea for cash at a meeting of deputy finance ministers in Brussels on Wednesday evening but was told there must first be progress on a stalled list of measures to make public finances sustainable.\"From the Greek side there was a strong statement that liquidity is getting really bad and there was an appeal to release some type of liquidity support before the euro zone finance ministers' meeting on April 24,\" a euro zone aide said.\n        \n        \"But no one knows how this could be done -- there is no willingness to provide support before there is some progress in terms of the reform program,\" the official said.In a small short-term boost, the European Central Bank agreed to increase the ceiling on emergency lending assistance to Greek banks by 1.2 billion euros to 73.2 billion euros, a banking source told Reuters. The ECB is reviewing the limit weekly while euro zone negotiations continue.Leftist Prime Minister Alexis Tsipras, elected on a promise to end austerity, is balking at politically sensitive reforms of the pension system and labor markets to which his conservative predecessor had agreed. EU sources said Brussels was pushing Athens towards more rapidly applicable measures to liberalize product and service markets instead.Greece's creditors -- the euro zone and the IMF -- are using the leverage provided by its acute cash predicament to press for those measures to be implemented.DETAILS, NUMBERS MISSINGA European Commission spokesman stressed the importance for Greece of the finance ministers' session in Riga, telling reporters: \"Obviously, everything that happens before April 24 in terms of reaching an agreement will be greatly welcome.\"Athens submitted a 26-page list of planned reforms last week but euro zone officials said they lacked key details and proper assessments of the financial implications.The officials said trust was so low that ministers would want to see legislation going through the Greek parliament, not just promises, before they released more funds.Varoufakis accused the euro zone of inflicting toxic medicine on his country, and starving it of cash. \"Tragically we find ourselves today in a similar situation,\" he told an economic conference. \"As a finance minister ... in order to create the liquidity which is necessary to see these negotiations through hopefully to a sustainable solution, I have to make the same request that we are allowed to issue T-bills over and above a certain limit to create the liquidity necessary to see us through to the end of the month or the next month or June, so as to be able to redeem payments to the former troika -- to the IMF in this case.\"A secret memorandum drafted by the finance ministry of Finland, one of the most hardline creditor countries, raised the prospect of Greece effectively being pushed out of the euro zone if fails to meet obligations under its 240 billion euro bailout program.The newspaper Helsingin Sanomat quoted the memo, dated March 27, as saying Helsinki must be prepared for the possibility that Greece would run out of cash before the end of June. That could lead to a situation where \"by silent approval of the other euro zone countries a process is started which in effect results in Greece being expelled from the euro\", it said. The finance ministry was not available for comment.On the second day of a visit to Russia, Tsipras said in a speech at Moscow University that Russia could not be an alternative \"solution\" for Greece's debt problems to negotiations with the euro zone.But he called on the European Union to restore dialogue with Moscow despite differences over Russia's role in Ukraine.\"It is impossible to build European security without Russia, let alone against it,\" Tsipras told students. \"In this context, we must ...\u00a0restart the EU-Russia dialogue in order to address global challenges, energy cooperation and to promote mobility among citizens.\"   (Additional reporting by Philip Blenkinsop and Ingrid Melander in Brussels, Renee Maltezou in Moscow and Anna Ercanbrak in Helsinki; Writing by Paul Taylor; Editing by Giles Elgood)","pubdate":"Thu, 09 Apr 2015 21:41:36 +0530","newspaper":"Reuters"},{"title":"Fresh Harvard graduates can't be analysts in India","content":"
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\n\tIf you have just finished studying at a top global university, the Indian financial markets may not be the place for you.\u00a0
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\n\tThose who have studied from top-tier financial market education institutions including the London School of Economics, Yale, Oxford or Cambridge would all fail to meet the criteria for research analysts in India. The new regulations say they must have a post-graduate degree from an institution recognised by Indian bodies such as the University Grants Commission.\u00a0
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\n\tThis would mean that no foreign-educated analyst is qualified to practice the profession in India until he has acquired at least five years experience. However, a fresher from any Indian university who meets the minimum criteria can start off on day one.\u00a0
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\n\tThe regulations say that an analyst must have \u2018a professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets\u2019.
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\n\tThis must come from a university which is recognised by University Grants Commission or similar body. It can include an institute associated with such a university, one which the central or state government has set up, or an autonomous institute under the Government of India\u2019s administrative control. The qualification can also be one which is accredited by the All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation\u2019 or other similar bodies.\u00a0
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\n\tAn analyst who does not have a post-graduate degree or professional qualification must have five years of financial market experience.\u00a0
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\n\tYogesh Chande, Associate Partner, Economic Laws Practice said that this position can only be modified, if the regulator makes an amendment to the regulations. Interestingly, he added that the draft regulations did allow for foreign qualifications.\u00a0
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\n\t\u201cThe consultation paper issued by Sebi for public comments on 29 November 2013, did contain in the proposed draft regulations a provision which permitted individuals having professional qualification\/post-graduate degree\/post graduate diploma provided by a university\/ institution \/association which is recognized\/ accredited by a foreign government or recognized\/ accredited by any corporate\/ institute which has been created\/recognized by such foreign government for the purpose, as a qualification to act as a research analyst. However, the same does not find place in the notified regulations,\" said Chande.\u00a0
\n","pubdate":"Fri, 10 Apr 2015 10:48:00 +0530","newspaper":"Business Standard"},{"title":"Markets remain subdued; BSE Midcap index up 0.5%","content":"
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\nBenchmark indices continue to trade in a narrow range with negative bias weighed down by financials and index heavyweight ITC. However, gains in select index heavyweights such as Reliance Industries and Infosys capped losses.
\nBenchmark indices continue to trade in a narrow range with negative bias weighed down by financials and index heavyweight ITC. However, gains in select index heavyweights such as Reliance Industries and Infosys capped losses.Further, market participants will keep an eye on the Index of Industrial Production (IIP) numbers for February to be unveiled in the course of the day.At 10:17AM, the 30-share Sensex was down 45 points at 28,841 and the 50-share Nifty was down 14 points at 8,764.However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 0.5%. The market breadth is strong with 1,234 advances versus 765 declines on the BSE.\"The market is likely to trade sideways, before making a sharp upside move. For the Sensex resistance is seen at 28939 above 29183 and support is at 28785 below 28669. For the Nifty resistance is seen at 8791 above 8849 while Support is at 8745 below 8718,\" Geojit BNP Paribas Financial Services said in a note.In the currency front, the rupee depreciated by 15 paise to 62.39 against the dollar in early trade today on the Interbank Foreign Exchange as the American currency firmed up overseas on upbeat US jobs report.ASIAN MARKETSJapan's Nikkei share average slipped on Friday when the initial euphoria as it topped the psychological milestone of 20,000 was quickly taken over by selling to lock in the past few months' solid gains.The Nikkei fell 0.2% to 19,897.97, reversing its course after having risen above the 20,000 mark for the first time in 15 years.The rally has been driven by many factors, including hopes of higher shareholder returns, rise in corporate earnings, recovery in domestic consumption and more share buying, both real and imagined, by Japanese public investors.The market expects Japanese corporate earnings to rise 10 to 15% this year, but with the Nikkei already up 14% so far this year, some investors see limited justification to chase more gains.SECTORS & BUZZING STOCKSBSE Oil & Gas, Realty and Consumer Durables indices are trading higher by almost 1%. However, BSE Metal index has slipped by 0.2%.Hindalco is the top Sensex loser, down almost 2% after US-based aluminium major reported lower-than-expected revenues.Bharti Airtel is down by almost 1%. Telecom Regulator Authority of India reduced the tariffs on roaming for outgoing local calls and incoming calls on roaming. It has also mandated telecom service providers to offer a special roaming plan.From the financial space, HDFC, HDFC Bank and ICICI Bank have slipped between 0.3-1%. Banking shares ended higher yesterday after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.Other notable losers from the Sensex pack are Cipla, Tata Steel, ITC, Bajaj Auto and Coal India.On the gaining side, SBI, Sesa Sterlite, ONGC, BHEL and M&M have gained between 1-1.5%.SMART MOVERSIDFC is trading higher by 3% at Rs 178 on the NSE after the company said it has got the shareholders approval for the demerger of its financial undertaking into IDFC Bank.Shares of Neyveli Lignite Corporation are up 4% at Rs 78 after the state-owned company said it has commenced the second phase of the Tuticorin Power project.Biocon has gained by 3% at Rs 481 on the National Stock Exchange (NSE) in early morning trade after the biopharmaceuticals major said it has received approval for its Insulin Glargine by Cofepris, the Mexican health authority, through its partner PiSA Farmaceutica.Shares of all three listed rating agencies \u2013 ICRA, CRISIL and Credit Analysis and Research (CARE) \u2013 were rallied by up to 12% on back of strong foreign institutional investors (FIIs) buying in January-March 2015 quarter.ICRA has rallied 12% to Rs 4,993, CRISIL surged 7.5% to Rs 2,340 and CARE gained 3% to Rs 1,786 on the Bombay Stock Exchange (BSE). All these shares hit their respective record highs on the bourses.IndusInd Bank Ltd said it would buy Royal Bank of Scotland's diamond and jewellery financing business in India and the related deposit portfolio. The stock is marginally positive.","pubdate":"Fri, 10 Apr 2015 10:17:00 +0530","newspaper":"Business Standard"},{"title":"Rating agency shares in demand; CRISIL, ICRA, CARE hit record high","content":"
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\n\tShares of rating agencies \u2013 ICRA, CRISIL and Credit Analysis and Research (CARE) \u2013 rallied by up to 12% after foreign institutional investors (FIIs) hiked their stake during the fourth quarter (January-March 2015).ICRA has rallied 12% to Rs 4,993, CRISIL surged 7.5% to Rs 2,340 and CARE gained 3% to Rs 1,786 on the Bombay Stock Exchange (BSE). All these shares hit their respective record highs on the bourses.
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\n\tAccording disclosure made by the CARE and CRISIL to the stock exchange, shows that FIIs have increased their stake in both these companies during January-March 2015 quarter. ICRA has yet to declare its shareholding pattern.In CARE, the overseas investors raised their stake to 31.19% in March quarter against 28.95% at the end of December 2014 quarter. FIIs holding in CRISIL increased to 7.44% from 6.93% during the recently concluded quarter.
\n\t\u00a0","pubdate":"Fri, 10 Apr 2015 10:14:00 +0530","newspaper":"Business Standard"},{"title":"Neyveli Lignite gains on synchronising Unit II of Tuticorin power project","content":"
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\n    Shares of Neyveli Lignite Corporation were up 4% at Rs 78 after the state-owned company said it has commenced the second phase of the Tuticorin Power project.Shares of Neyveli Lignite Corporation were up 4% at Rs 78 after the state-owned company said it has commenced the second phase of the Tuticorin Power project.Unit II of 500MW of Tuticorin Power Project of its subsidiary company NLC Tamilnadu Power Ltd has been test synchronised with the Grid on April 09, 2015, the company said in a release after market hours on Thursday.The stock opened at Rs 76.90 and touched a high of Rs 79.40 on the Bombay Stock Exchange. At 10AM, over 310,000 shares were traded on both the stock exchanges.","pubdate":"Fri, 10 Apr 2015 10:01:00 +0530","newspaper":"Business Standard"},{"title":"IDFC up 3% as shareholders approve demerger","content":"
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\n\tShares of IDFC were trading higher by 3% at Rs 178 on the National Stock Exchange (NSE), after the company said it has got the shareholders approval for the demerger of its financial undertaking into IDFC Bank.\u201cThe Court Convened meeting of the equity shareholders of IDFC was held on April 9, 2015 as per the order of the Hon\u2019ble High Court of Madras, in which the equity shareholders have unanimously approved the Scheme of Arrangement among IDFC Limited and IDFC Bank Limited and their respective shareholders and creditors,\u201d IDFC said in a filing.With this approval most of IDFC to IDFC Bank conversion process will be completed. In October last year, the IDFC board had approved a proposal to demerge its financial undertaking into its wholly-owned step-down subsidiary IDFC Bank.Each IDFC shareholder will get 1 share of IDFC Bank as a consideration for the demerger of financing undertaking of IDFC into IDFC Bank, to the shareholders holding shares of IDFC as on the record date.The stock opened at Rs 175 and touched a high of Rs 179 on the NSE. The counter has seen huge trading activity with a combined 3.68 million shares changed hands till 0946 hours, against an average around 6 million shares that were traded daily in past two weeks on the NSE and BSE.","pubdate":"Fri, 10 Apr 2015 09:51:00 +0530","newspaper":"Business Standard"},{"title":"Markets open flat; Nifty hovers around 8,775","content":"
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\nMarkets continued to trade with marginal losses in early trades weighed down by profit taking in financials and FMCG major ITC.
\nMarkets continued to trade with marginal losses in early trades weighed down by profit taking in financials and FMCG major ITC.At 9:40AM, the Sensex is at 28,868, lower by 28 points and the Nifty is at 8,768, down 10 points.However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-0.3%.The benchmark indices had gained in five straight sessions hitting one-month closing highs; with the Nifty ending comfortably above the 8750 mark in Thursday's session on the back of India's outlook upgrade by Moody's.The markets will keep an eye on the Index of Industrial Production (IIP) numbers for February to be unveiled in the course of the day.Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 193.81 crore yesterday, 9 April 2015, as per provisional data.\"Technically, the market has extended its recent pull bull back beyond 50% retracement resistance and that might have triggered short covering in the market. Weak stocks have taken active interest in moving the market upward like Reliance Inds and Tata Steel,\" said Shrikant Chouhan, head of technical research at Kotak Securities in a note.\"We feel that it\u2019s a \u201cV\u201d shape recovery trend of the market and major volatility above major supports 8700\/8680 may be an indication of major up move in the near term. In such a scenario, we may even see the nifty very close to 8950\/9000 in the near term. Fresh buying will trigger if Nifty manages to break 9130 in next 3 weeks of time. Expect weakness only below the level of 8680,\u201d he adds.GLOBAL MARKETSAsian shares extended gains to hit fresh 15-year highs tracking overnight gains on Wall Street while loan payment of 450 million euros by Greece also aided market sentiment. Japanese shares advanced further with the benchmark Nikkei topping the 20,000 mark for the first time since April 2000.However, profit booking above 20,000 capped further gains and the Nikkei was trading flat. Meanwhile, Hong Kong shares also witnessed profit taking after sharp gains in the previous few sessions which lifted the Hang Seng to fresh seven-year highs. The Hang Seng was trading flat with negative bias. Further, Shanghai Composite staged a recovery today and was up 0.7% while Straits Times was up 0.3%.Major US share indices ended higher on Thursday amid a rally in energy shares after Brent crude prices rebounded after a sharp decline on Wednesday. Exxon Mobil gained 0.7% while Chevron Corp gained 0.27%. The Dow Jones industrial average ended up 0.3% at 17,958.73, the broader S&P 500 ended up 9 points at 2,091.19 and the tech-laden Nasdaq rose 24 points at 4,974.57.SECTORS & STOCKSBSE Healthcare index has slipped by over 0.5% followed by counters like Banks, Capital Goods, Metal and Realty, all declining marginally. However, BSE Oil & Gas, Power, Metal and IT indices are up 0.1-0.3%.The main losers on the Sensex are Cipla, Hindalco, HDFC Bank, ICICI Bank, GAIL and Sun Pharma.Hindalco has slipped over 1% after US-based aluminium major reported lower-than-expected revenues.On the gaining side, RIL, ONGC, Infosys, Wipro and Coal India have gained between 0.4-1%.Telecom stocks are in focus after the Telecom Regulator Authority of India reduced the tariffs on roaming for outgoing local calls and incoming calls on roaming. It has also mandated telecom service providers to offer a special roaming plan. Bharti Airtel is down almost 1%.","pubdate":"Fri, 10 Apr 2015 09:40:00 +0530","newspaper":"Business Standard"},{"title":"Biocon gains on approval for insulin Glargine in Mexico","content":"
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\n\tShares of Biocon were trading higher by 3% at Rs 481 on the National Stock Exchange (NSE) in early morning trade after the biopharmaceuticals major said it has received approval for its Insulin Glargine by Cofepris, the Mexican health authority, through its partner PiSA Farmaceutica.Insulin Glargine will augment the affordable insulins therapy for diabetes management. Galactus by PiSA is the first Insulin Glargine to be approved in Mexico as per the biocomparable approvals pathway defined in 2012, Biocon said in a release.The stock opened at Rs 481 and touched a high of Rs 483 on the NSE so far. A combined 331,033 shares changed hands on the counter till 0927 hours on the NSE and BSE.
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\n","pubdate":"Fri, 10 Apr 2015 09:28:00 +0530","newspaper":"Business Standard"},{"title":"Markets may open higher; Telecom stocks in focus","content":"
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\nMarkets are likely to open higher, amid firm global cues, after they gained in the previous five straight sessions hitting one-month closing highs. However, profit taking later in the day is likely to cap upside gains.
\nMarkets are likely to open higher, amid firm global cues, after they gained in the previous five straight sessions hitting one-month closing highs. However, profit taking later in the day is likely to cap upside gains.At 8:30AM, the early indicator SGX Nifty was down 3 points at 8,806.\"Technically, the market has extended its recent pull bull back beyond 50% retracement resistance and that might have triggered short covering in the market. Weak stocks have taken active interest in moving the market upward like Reliance Inds and Tata Steel,\" said Shrikant Chouhan, head of technical research at Kotak Securities in a note.\"We feel that it\u2019s a \u201cV\u201d shape recovery trend of the market and major volatility above major supports 8700\/8680 may be an indication of major up move in the near term.\u00a0 In such a scenario, we may even see the nifty very close to 8950\/9000 in the near term.\u00a0 Fresh buying will trigger if Nifty manages to break 9130 in next 3 weeks of time.\u00a0 Expect weakness only below the level of 8680,\u201d he adds.GLOBAL MARKETSAsian shares extended gains to hit fresh 15-year highs tracking overnight gains on Wall Street while loan payment of 450 million euros by Greece also aided market sentiment.Japanese shares advanced further with the benchmark Nikkei topping the 20,000 mark for the first time since April 2000. However, profit booking above 20,000 capped further gains and the Nikkei was trading flat.Meanwhile, Hong Kong shares also witnessed profit taking after sharp gains in the previous few sessions which lifted the Hang Seng to fresh seven-year highs. The Hang Seng was trading flat with negative bias. Further, Shanghai Composite staged a recovery today and was up 0.7% while Straits Times was up 0.3%.Major US share indices ended higher on Thursday amid a rally in energy shares after Brent crude prices rebounded after a sharp decline on Wednesday. Exxon Mobil gained 0.7% while Chevron Corp gained 0.27%. The Dow Jones industrial average ended up 0.3% at 17,958.73, the broader S&P 500 ended up 9 points at 2,091.19 and the tech-laden Nasdaq rose 24 points at 4,974.57.STOCKS IN FOCUSHindalco could see some pressure after US-based aluminium major reported lower-than-expected revenues.Telecom stocks will be in focus after the Telecom Regulator Authority of India reduced the tariffs on roaming for outgoing local calls and incoming calls on roaming. It has also mandated telecom service providers to offer a special roaming plan.Max India may gain after the Competition Commission approved Max India's proposed corporate restructuring plan to vertically split the company through a demerger into three separate listed firms.Biocon may gain on reports that it has received approval for its Insulin Glargine by Cofepris, the Mexican health authority, through its partner PiSA Farmaceutica.Neyveli Lignite will be in action after the company said that Unit II (500MW) of Tuticorin Power Project has been test synchronized with the Grid on April 09, 2015.
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\nMangalore Refinery and Petrochemicals could see some action after the board at its meeting on Thursday formed a committee to explore and evaluate options for integration of the company and ONGC Mangalore Petrochemicals Ltd for better synergy within the group.","pubdate":"Fri, 10 Apr 2015 08:34:00 +0530","newspaper":"Business Standard"},{"title":"SEBI eases foreign investment rules in govt bonds","content":"
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\nThe Securities and Exchange Board of India (Sebi) has permitted foreign investors to reinvest in government bonds the same day, giving them the option to churn their portfolio, according to four traders with direct knowledge of the matter and an email of the new rules.
\nThe Securities and Exchange Board of India (Sebi) has permitted foreign investors to reinvest in government bonds the same day, giving them the option to churn their portfolio, according to four traders with direct knowledge of the matter and an email of the new rules.Sebi, in an email sent on Wednesday to custodian banks of foreign investors, said the facility to buy and sell government bonds the same day would be applicable on the entire $30 billion ceiling on government debt purchases. Currently, the entire government bond limit for foreign investors is almost fully exhausted.\u201cUpon sale or redemption or maturity of government securities the FPIs (foreign portfolio investors) shall be permitted to buy government securities on the same day,\u201d Sebi said in the email.While currently foreign investors get a five-day window to reinvest government bonds if they have purchased the limit by paying a fee at the auction, the current rules will be applicable when the limits are freely available, traders said.The limits were auctioned since September when the quota was 90 per cent used up.","pubdate":"Fri, 10 Apr 2015 00:10:00 +0530","newspaper":"Business Standard"},{"title":"FY16 expected to see muted rural show","content":"
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\nFactors such as unseasonal rainfall, lower construction\/mining activity and weakening agricultural and non-agricultural incomes will impact companies heavily dependent on rural economies in FY16, believe analysts.
\nFactors such as unseasonal rainfall, lower construction\/mining activity and weakening agricultural and non-agricultural incomes will impact companies heavily dependent on rural economies in FY16, believe analysts.Thus, Mahindra & Mahindra, M&M Financial Services, Shriram Transport, Hero MotoCorp, Hindustan Unilever and Maruti, among others, could see subdued growth. The key short-term monitorable are the monsoons, as it plays a key role in cash flows and the purchasing power of farmers. Bad news on this front could worsen the situation.\u201cWe see little chances of a positive earnings surprise in FY16 for stocks levered to the rural economy. In the near term, one should be underweight the (basic) rural plays, given that erratic rainfall has damaged two crops in succession, low levels of activity (construction, mining) and rationalisation of subsidies have impacted non-farm incomes, and land price increases have moderated and fallen in a few places,\u201d says Suhas Harinarayanan, head of research, JM Financial Institutional Securities.Notably, key statistics such as tractor\/automobile sales, consumer durables sales, and rural inflation and wage growth indicate a softening of that economy. Analysts believe this trend will improve only at a gradual pace, leading to muted near-term performance by companies having a high exposure to this economy. Sectors such as agri chemicals, consumer goods, automobiles and banks\/financial institutions will be more vulnerable to a weakening rural economy.Rakesh Arora, head of research at Macquarie Capital, says: \u201cWe are underweight on staples and positioned for a consumption slowdown in the rural economy. We believe slowing rural incomes will affect demand for building materials, two-wheelers and tractors. In this backdrop, we believe M&M and Hero MotoCorp will be more impacted.\u201dAbout 67 per cent of M&M's passenger vehicle sales and its entire tractor sales come from the rural segment. For two-wheeler companies, the rural economy contributes 40-50 per cent of sales volumes. In the consumer sector, HUL and Dabur derive about half their revenue from rural areas; this metric is about 45 per cent for Britannia. Thus, these companies will witness higher sales pressure than peers as the rural economy slows down. Interestingly, most consumer companies have invested in increasing their reach and revenues in rural areas over the past few years. This has led to higher sales contribution from these areas.
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\nThe volume growth estimates for FY16 can be misleading, given the low base of the preceding two years. Bajaj Auto and M&M\u2019s utility vehicle portfolio saw volume contraction in FY14 and FY15. M&M tractor sales volumes also fell in FY15.\u201cWe maintain our underweight-rural and preference for urban themes. Declining cash flows for the sector will have significant impact on rural themes, including consumer goods, automobiles, agri inputs and public sector banks,\u201d says Dhananjay Sinha, head of institutional equity at Emkay Global Financial Services.Agro chemicals and complex fertilisers will be hit the most by rural slowdown, though the impact on their financials will come in only with a lag effect. Falling commodity prices, though, provide some relief at the margin for these companies. \u201cOur preference remains for companies with asset-light and flexible business models such as Sharda Cropchem and Dhanuka Agritech or for companies with export exposure like UPL and PI Industries,\u201d adds Sinha of Emkay.As a large part of M&M Financial and Shriram Transport's branches are in rural areas, these lenders will see impact on asset quality and credit offtake. Most banks will witness increased stress on their agricultural loans and will need to keep an eye on their asset quality. The possibility of debt waivers on agri loans could further impact this sector.","pubdate":"Thu, 09 Apr 2015 22:48:00 +0530","newspaper":"Business Standard"},{"title":"Moody's red flags banking sector; cites asset quality concerns","content":"
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\nAlthough Moody\u2019s Investor Service changed India\u2019s outlook to \u2018positive\u2019 from \u2018stable\u2019 on Thursday, the rating agency also highlighted concerns regarding India\u2019s banking sector\u2019s asset quality.
\nAlthough Moody\u2019s Investor Service changed India\u2019s outlook to \u2018positive\u2019 from \u2018stable\u2019 on Thursday, the rating agency also highlighted concerns regarding India\u2019s banking sector\u2019s asset quality.While Moody\u2019s remains optimistic on the outlook for the economy and the government\u2019s reform process, it has warned that Indian banking system\u2019s asset quality, loan loss coverage and capital ratios are relatively weak.According to the rating agency, this poses sovereign credit risks due to the banking sector\u2019s role in financing growth and the government\u2019s deficits through its purchase of government securities, and the contingent liabilities owing to the government\u2019s ownership of a major portion of the banking sector.\u201cIn the absence of any improvement in banking system metrics over the coming months, India\u2019s sovereign credit profile will remain constrained,\u201d it says. However, Moody\u2019s believes the ability of policymakers to strengthen India\u2019s sovereign credit profile to a level consistent with a higher rating will only become apparent over the next 12-18 months.Despite Moody\u2019s flagging off concerns, banking stocks gained ground on Thursday with the Bank Nifty gaining 2.5 per cent to 18,876 levels. In comparison, the benchmark indices, the S&P BSE Sensex and the CNX Nifty, ended 0.7 per cent higher.Punjab National Bank (PNB), IndusInd Bank, Kotak Mahindra Bank, Bank of India, Axis Bank, Canara Bank, State Bank of India (SBI) and YES Bank were among the top gainers among the banking stocks, that moved up between 2.5 and seven per cent.
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\nSlow road to recovery
\nAnalysts believe the concerns highlighted by Moody's are not new and going ahead, the problems in the banking sector will mend. However, they caution this will be a long-drawn process.Directionally, they suggest, things have started to improve for the banking sector, although the pace of improvement is a little slow. Banks\u2019 earnings in the fourth quarter of FY15 and the next two quarters of FY16 might not be good and the stressed assets should peak in the March 2015 quarter. By the end of FY16, the level of stressed assets in the system should be lower than in the previous year.\u201cIt is quite evident from the data the kind of stress there is in the banking system, primarily in the public sector banks (PSBs). But from a forward looking view, the government\u2019s reform process should start revising the core sectors like infrastructure, power, metals etc. So, the stress levels in these banks should start coming down from FY16 and FY17 onwards,\u201d said Vaibhav Agra-wal, vice-president (research - banking) at Angel Broking.\u201cIf we put together power, infrastructure and roads, they in total account for 60-70 per cent of the restructured assets. What\u2019s left, then, is textiles and chemical sectors that are export-oriented and have stress. As regards agriculture, there are well-defined systems in place that address issues like erratic monsoon or crop failure where banks need to deal with such accounts,\u201d he adds.Ankit Ladhani, an analyst tracking the sector with Karvy Stock Broking, also expects asset quality concerns for the banking sector to continue in the fourth of FY15 results as well. The performance of private banks, however, is expected to be better than that of PSBs, although they are also expected to report higher slippages and restructuring. He maintains a \u2018buy\u2019 rating on Axis Bank, DCB Bank, Federal Bank, ICICI Bank and YES Bank; and a \u2018hold\u2019 rating on HDFC Bank.Santosh Singh, an analyst tracking the sector with Societe Generale, maintains a \u2018buy\u2019 recommendation on HDFC Bank, SBI and ICICI Bank in a March 2015 report. Key catalysts would be an interest rate cut or signs that the economy is recovering, he says.","pubdate":"Thu, 09 Apr 2015 22:47:00 +0530","newspaper":"Business Standard"},{"title":"Tea Board to try and push export","content":"
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\nThe Tea Board says it has identified more export markets, to make up for a slide in shipments elsewhere.
\nThe Tea Board says it has identified more export markets, to make up for a slide in shipments elsewhere.\"The government has added Chile and China to the list of markets,\" said Azam Monem, Indian Tea Association vice-chairman. The focus, it says, is KRUCIAL - Kazakhstan, Russia, USA, China, Iran, Arab Republic of Egypt and Latin America.Exports have been slipping in recent years. From a high of 222 million kg in 2010, it dropped to 201 mn kg in 2014. The current year is not looking particularly good, too.India happens to be the fourth largest tea exporter in the world, after China, Sri Lanka and Kenya. Traditionally, our major export destinations have been Russia, UAE and Britain. Though production has been growing consistently at a compounded annual rate of three per cent, exports have been on a decline or, at best, flat. The main reason is an increase in domestic consumption, which has ensured firm prices.The unit price for exports during April 2014 to January 2015 was Rs 196.27 a kg, compared to Rs 202.60 a kg in the year-ago period. In contrast, during January-December 2014, prices at the Jakarta auction were down by Rs 14.75 a kg and Mombasa by Rs 18.03 a kg, though that at Colombo was higher by Rs 18.62 a kg.\"Firm prices have led to increasing competition from other producing countries, especially Kenya that has seen successive bumper crops,\" Monem said. Sri Lanka is also giving stiff competition.Tea production is in one of two styles, termed orthodox and non-orthodox; the latter is also commonly referred to as CTC (crush, tear, curl). Kenya is entirely a CTC producer; orthodox production accounts for almost the entire produce of Sri Lanka. In India, CTC accounts for around 90 per cent of output. Thus, Kenyan tea is in direct competition with Assam CTC, while Assam orthodox is pitted against Sri Lanka. Malawi, Mozambique and Uganda's tea are of the same quality as South Indian tea.India exports most of its orthodox production but only a small portion of CTC. Only 13 per cent of total North India (the term here refers to everything outside South India) production is exported. An ICRA report says most exports from North India are high-quality orthodox and CTC teas; South India exports medium to low quality teas that are used mainly as \"fillers\" in blending.Over the past decade, annual exports have stayed around 200 mn kg. The strategy for each of the markets the Tea Board plans to focus on would be different. For China, it would be taken up at the diplomatic level, as there are non-tariff barriers. China is predominantly a green tea market but is warming up to black tea. \"In Iran, there is a plan for joint promotion with packers. In Russia, the rupee-rouble mechanism needs to be worked on,\" Monem said.The industry is hoping that June-September, the time for exports, would see better weather and so, more production. So far, a dry spell has affected production.","pubdate":"Thu, 09 Apr 2015 22:34:00 +0530","newspaper":"Business Standard"},{"title":"Govt to re-introduce technology upgradation fund for textiles","content":"
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\nThe Union government is to re-introduce the Technology Upgradation Fund Scheme (Tufs), perhaps for at least 10 years, in the new textile policy, scheduled to be out by month-end.
\nThe Union government is to re-introduce the Technology Upgradation Fund Scheme (Tufs), perhaps for at least 10 years, in the new textile policy, scheduled to be out by month-end.In the revised policy, the onus of funding the sector is likely to be put on the states where factories exist. \u201cWe have increased states\u2019 share in central taxes to 42 per cent from 32 per cent earlier. So, we are looking to introduce Tufs with some tweaks; states might be asked to fund it. We are looking for a long-term policy, for at least 10-15 years. However, a final decision is yet to be taken,\u201d said Sanjay Kumar Panda, secretary, ministry of textiles, here on Thursday.Tufs, implemented from April 1999, was introduced to catalyse investments in the textile and jute industry, with a five per cent interest reimbursement. The scheme was initially approved from April 1999 to March 2004, extended to 2007 with modifications and further restructured with effect from April 2011, to March 2012.In 2012, then commerce minister Anand Sharma announced its continuation for the 12th Plan period of 2012-17, with an outlay of Rs 11,900 crore. Of this, Rs 6,000 crore has been released so far.\u201cWe will ask for the remaining Rs 6,000 crore for the rest of the Plan period. Depending upon the money available, the ministry will take a final decision on allocation in the various sectors,\u201d Panda added.The industry utilised Rs 12,383 crore against the budgetary allocation of Rs 13,785 crore during the 11th Plan. Restructured Tufs allocations did not prescribe sectoral ceilings for the spinning, powerloom and handloom sectors. Investments in spinning were Rs 34,347 crore and in the weaving sector, including powerlooms and handlooms, Rs 9,750 crore.\u201cLooking at the scheme\u2019s success in the past, we are pushing for Tufs very aggressively. Its nature and allocation is yet to be decided, though,\u201d said Kiran Soni Gupta, textile commissioner.The government started with a capital subsidy when it was introduced in 1999. Later, the mode of relief was changed to interest subvention.","pubdate":"Thu, 09 Apr 2015 22:33:00 +0530","newspaper":"Business Standard"},{"title":"Gold prices bottomed out in local currencies, may fall further in dollar terms: survey","content":"
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\nGold prices could fall further in the US, but, for other countries, in terms of their local currencies, gold has bottomed out, shows the GFMS Gold Survey 2015.
\nGold prices could fall further in the US, but, for other countries, in terms of their local currencies, gold has bottomed out, shows the GFMS Gold Survey 2015.The survey, released on Thursday, says, \u201cThere are signs that confidence is starting to return, however, as the physical market adjusts and takes comfort from the price stabilisation since November 2014.\u201d Most investors have discounted gradual increase in US interest rates. However, the survey sees demand improving and so prices, which could average to $1,170 in 2015 and $1,250 in the following year, the survey says.\u201cThe dollar is likely to retain currency supremacy, given monetary policy elsewhere in the world, and non-dollar-denominated gold prices are believed to have bottomed.\u201d In dollar terms, however, the GFMS team at Thomson Reuters, \u201cis looking for further slippage towards $1,100 per ounce during 2015, with an annual average of $1,170 per ounce in 2015, with prices rising towards year-end; this should lead to an average of $1,250 per ounce in 2016, as buying picks up in Asian markets and institutional investment in these markets offsets the recent decline in over-the-counter demand in the West.\u201dThe reasoning behind bottoming out of prices in local currencies is that a strengthening dollar would result in depreciation of other currencies and, hence, even if gold\u00a0 slips further in dollar terms, depreciation in other countries\u2019 local currency would not let the dollar price to fall much.Like most markets, gold also takes time to recover from periods of turbulence and, in early 2015, it is continuing the stabilisation of 2014 following the hurricane that swept through it in the previous year.For gold prices to go up, there is a need for fresh investment. Hence, the survey sees possibility of further shorts in gold.\u201cIndeed, there is still the possibility of short-side sales in response to any unsettling news or economic development. Once the new rate cycle is in place (or signalled), asset reallocation is likely to commence and we expect gold to benefit accordingly,\u201d the survey says.Official sector gold transactions in 2014 amounted to an estimated net purchase of 466 tonnes, up 14 per cent from 2013 and the second highest level since the end of the gold standard. The renewed eastward shift in physical gold demand (following the westward lurch following the start of the financial crisis) stalled last year, but is expected to resume as the markets continue to stabilise.A study conducted by StratWon Business Consulting for Platinum Guild International (PGI) showed the growth in platinum sales at 28 per cent in 2014. Sales by PGI\u2019s strategic retail partners were up by 33 per cent during 2014 while other outlets reported a growth of 19 per cent.\u201cGiven the overall market scenario, the platinum growth for 2014 has been very positive and consistent which comes from continuous improvement of consumer sentiment, higher conversion at the retail stores and improving the disposition for platinum among our key target audience. With the launch of Platinum Evara on the back of strong consumer research at the end of the year we are looking at further accelerating growth. The initial response to this new category has been very positive,\u201d said Vaishali Banerjee, country manager India, PGI.The jewellery fabrication business has increased six per cent in 2014 globally, except in China. The result of the massive surge in jewellery demand in China in 2013 was a fall of 35 per cent in Chinese jewellery consumption and 31 per cent in local jewellery fabrication last year. Even so, the Chinese jewellery fabrication in 2014 was seven per cent higher than in 2012 and the second highest on record. Heavy leasing activity in the local market has led to suggestions that retail demand was much higher than was actually the case. India, despite import restrictions, reached another record in both fabrication and consumption terms, reflecting the determined affinity of the people for gold. China and India together accounted for 54 per cent of the world\u2019s jewellery, bar and medal demand in 2014.","pubdate":"Thu, 09 Apr 2015 22:32:00 +0530","newspaper":"Business Standard"},{"title":"Headless FMC's senior member, directors also moving out","content":"
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\nThe Forward Markets Commission (FMC), regulator for commodity derivatives, is headless with chairman Ramesh Abhishek\u2019s term having ended on Wednesday and no successor appointed.
\nThe Forward Markets Commission (FMC), regulator for commodity derivatives, is headless with chairman Ramesh Abhishek\u2019s term having ended on Wednesday and no successor appointed.Sources say this is preparation for merging FMC with the securities market regulator, Securities and Exchange Board of India (Sebi), proposed in this year's Union Budget. However, the senior-most member has also been transferred and three directors who were on deputation from various government departments have also left.Meanwhile, the government has appointed a four- member committee headed by Ajay Tyagi, additional secretary, finance ministry, on the merger. The latter is expected to take another four to six months. However, says a leading entity in the market, \u201cIf a problem arises, someone should be in charge\u201d. He said the committee appointed to oversee the merger should take charge of commodity derivatives till Sebi formally does so.","pubdate":"Thu, 09 Apr 2015 22:31:00 +0530","newspaper":"Business Standard"},{"title":"Today's picks- 9 April 2015","content":"
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\n    NIFTYCurrent: 8,778 (fut: 8,807)Target: NA
\nStop-loss short positions at 8,880. Stop-long positions at 8,725. A long 8,900c (67), short 9,000c (25) costs 42. It could gain 15-20 if the futures hits 8,875.NIFTYCurrent: 8,778 (fut: 8,807)Target: NA
\nStop-loss short positions at 8,880. Stop-long positions at 8,725. A long 8,900c (67), short 9,000c (25) costs 42. It could gain 15-20 if the futures hits 8,875.BANK NIFTYCurrent: 18,876 (futures: 18,947)Target: 19,000 (futures: 19,100)
\nKeep a stop at 18,850 and go long. Add to the position between 19,050 and 19,075. Book profits at 19,100.TATA STEELCurrent price: Rs 346Target price: Rs 352
\nKeep a stop at Rs 344 and go long. Add to the position between Rs 350 and Rs 351. Book profits at Rs 352.ZEE ENTERTAINMENTCurrent price: Rs 357Target price: Rs 363
\nKeep a stop at Rs 354 and go long. Add to the position between Rs 361 and Rs 362. Book profits above Rs 363.IDEACurrent price: Rs 188Target price: Rs 192
\nKeep a stop at Rs 186 and go long. Add to the position between Rs 190 and Rs 191. Book profits at Rs 192.
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\n\tTarget prices, projected movements in terms of next session, unless otherwise stated","pubdate":"Thu, 09 Apr 2015 22:30:00 +0530","newspaper":"Business Standard"},{"title":"Sensex near 1-month closing high","content":"
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\n    The BSE Sensex on Thursday closed at its highest in nearly a month, gaining for a fifth session, with lenders such as State Bank of India rising after rating agency Moody\u2019s revised India\u2019s sovereign rating outlook. The Sensex gained 177.46 points, or 0.62 per cent, to 28,885.21 points, its highest closing level since March 12. The Nifty rose 63.90 points, or 0.73 per cent, to 8,778.30 points.The BSE Sensex on Thursday closed at its highest in nearly a month, gaining for a fifth session, with lenders such as State Bank of India rising after rating agency Moody\u2019s revised India\u2019s sovereign rating outlook. The Sensex gained 177.46 points, or 0.62 per cent, to 28,885.21 points, its highest closing level since March 12. The Nifty rose 63.90 points, or 0.73 per cent, to 8,778.30 points.","pubdate":"Thu, 09 Apr 2015 22:28:00 +0530","newspaper":"Business Standard"},{"title":"FY15 sees number of new equity MF accounts beat demat openings","content":"
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\nIndia\u2019s mutual fund (MF) sector has in the past financial year recovered a fifth of the equity investors it had lost after the 2008 global finance crisis.
\nIndia\u2019s mutual fund (MF) sector has in the past financial year recovered a fifth of the equity investors it had lost after the 2008 global finance crisis.According to statistics from the capital market regulator, Securities and Exchange Board of India, the sector added 2.5 million new equity accounts, taking the total to nearly 31.7 mn. March alone saw half a mn additions. With this, equity MF folios surpassed demat accounts, as the latter saw only 1.5 mn new ones in the year, taking the total to 23 mn.
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\nBetween 2008-09 and 2013-14, the sector lost 12 mn equity accounts, bringing the investors\u2019 base closer to the pre-crisis level. However, 2014-15 was a turning point. Sentiment in the stock markets improved with a new government in Delhi under Narendra Modi and investors flocked to open accounts with fund houses. A substantial increase in new fund launches, mostly closed-end ones, with higher commissions attached, acted as a big catalyst to bring investors for three to five years. Gross sales touched a historic high of Rs 1.5 lakh crore, while inflows (net of redemptions) surpassed the previous high of 2007-08 at Rs 71,000 crore.The participation from investors hailing from beyond the top 15 (B-15) cities was overwhelming. Data from the Association of Mutual Funds in India show accounts from B-15 cities and towns were almost equivalent to the bigger urban peers.
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\nThere has also been an increase in the pace of account additions in recent months. For instance, in March alone, the sector saw a fifth of the total increase during the whole of the year. Fund houses tried their best to garner as much of assets as they could, ahead of the implementation of an upfront commission cap on April 1, said observers.
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\n\tAltogether, gross sales in the equity category was over Rs 17,000 crore in March. Moreover, during the month there were 12 new equity launches gathering assets worth Rs 1,450 crore.","pubdate":"Thu, 09 Apr 2015 22:19:00 +0530","newspaper":"Business Standard"},{"title":"Inox Wind, REC bring cheer to primary market","content":"
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\nPrimary market investors had a reason to cheer on Wednesday, with shares of power solution company Inox Wind soaring 35 per cent on debut and that of state-owned Rural Electrification Corporation (REC) gaining two per cent, a day after its offer for sale (OFS).
\nPrimary market investors had a reason to cheer on Wednesday, with shares of power solution company Inox Wind soaring 35 per cent on debut and that of state-owned Rural Electrification Corporation (REC) gaining two per cent, a day after its offer for sale (OFS).Shares of Inox Wind ended at Rs 438, compared to its issue price of Rs 325 a share. REC\u2019s stock closed at Rs 336.25, up nearly four per cent from its OFS price of Rs 325. The gains were even sweeter for retail investors (those investing up to Rs 2,00,000), as an extra five per cent discount was offered to them in both the share sales.Inox had raised around Rs 1,000 crore from an initial public offering (IPO), which witnessed 13 times more demand than the shares on offer. The IPO, biggest since Bharti Infratel\u2019s Rs 4,500-crore-offering in December 2012,\u00a0 attracted 400,000 retail applications. The Rs 1,550 crore REC stake sale, 2015-16\u2019s first disinvestment, also saw huge retail interest.Investment bankers said the gains made on these primary market transactions would attract more investors towards the IPOs and boost prospects of companies waiting to hit the market.About two dozen companies have filed offer documents with market regulator Sebi to launch their IPOs.\u201cThe momentum to invest in IPOs is slowly picking up. As investors make returns from a few issuances, they will come back with greater propensity to the primary markets. Issuances from quality companies and from promoters with a good record will be an important trigger,\u201d said S Ramesh, joint managing director & member of the board, Kotak Investment Banking.
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\nIPO Wind\u2019s listing day gains follows theme park operator Adlabs Entertainment, whose shares rose 15 per cent on its debut last week. Only two of eight IPOs since 2014 have given negative returns on listing day.\u201cInvestors are willing to support deals that are priced well\u2026 Investors also need to be explained the story,\u201d saidS Subramanian, managing director and head of investment banking at Axis Capital, one of the bankers which managed the IPO Wind offering.Satyen Shah, head (equity capital markets), Edelweiss Financial Services, said, \u201cA couple of IPOs didn\u2019t do well. Inox has helped reverse that trend. All categories of investors made money in this transaction. This will help the primary market. The IPO line is good and we will see a lot more issues this year compared to last year.\u201d","pubdate":"Thu, 09 Apr 2015 22:16:00 +0530","newspaper":"Business Standard"},{"title":"Q4 earnings likely to be weakest in many quarters","content":"
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\nThe March quarter (Q4) of 2014-15 is expected to be brutal for investors. Thanks to a sharp fall in commodity prices and currency turmoil, sales growth of Sensex 30 companies as well as India Inc is expected to contract sharply. While Crisil Research expects India Inc\u2019s revenue growth to slip to a seven-quarter low of 2.5 per cent, other research houses expect Sensex revenue growth to be flat to minus seven per cent. On the other hand, Sensex earnings growth is estimated in the range of -7.6 per cent to 5.6 per cent for the March quarter. In the December quarter, Sensex earnings had contracted five per cent.
\nThe March quarter (Q4) of 2014-15 is expected to be brutal for investors. Thanks to a sharp fall in commodity prices and currency turmoil, sales growth of Sensex 30 companies as well as India Inc is expected to contract sharply. While Crisil Research expects India Inc\u2019s revenue growth to slip to a seven-quarter low of 2.5 per cent, other research houses expect Sensex revenue growth to be flat to minus seven per cent. On the other hand, Sensex earnings growth is estimated in the range of -7.6 per cent to 5.6 per cent for the March quarter. In the December quarter, Sensex earnings had contracted five per cent.Worse, a dramatic moderation in profit growth of defensive sectors, which had propped the broader market in recent years. Over the past few weeks, analysts have downgraded earnings estimates of Sensex companies on more than one occasion. The result is a lack of consensus among equity strategists. Not many were expecting earnings\u2019 downgrades of so many sectors in a short span. This has made forecast of earnings growth a lot more difficult, leading to a divergence in estimates (see table). In fact, there is scope for further downgrades.Currently, even the most optimistic estimate suggests Sensex earnings growth by no more than six to nine per cent in FY15. Edelweiss says: \u201cGiven the poor earnings expectations, another two-three per cent downgrade in EPS (earnings per share) is likely.\u201dKotak Institutional Equities writes: \u201cVery few stocks offer any value on reasonable earnings assumptions. Some are terribly expensive and some face earnings downgrades from tenuous earnings assumptions.\u201dAmbit Capital\u2019s Nitin Bhasin writes, \u201cFollowing a disappointing third quarter and with signs of moderation across sectors, our analysts have downgraded their estimates for Q4 from three months ago for the majority of sectors. The more notable downgrades are in the automobile, consumer, cement, financials and E&C (engineering & construction) sectors.\u201dThe sharp drop in earnings of commodity-oriented sectors, oil & gas and metals & mining, are expected to dent the performance of cyclicals. While defensives matter from an earnings perspective, cyclicals account for 58 per cent of the benchmark\u2019s revenues. The big worry is the defensives (information technology or IT, pharmaceutical & consumer goods). Their revenue growth is expected to almost halve to 10.7 per cent year-on-year (y-o-y), against the 20.2 per cent y-o-y rise in Q4 of FY14, says ICICI Securities.
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\nThe sharp pullback in government spending over the past two quarters, impact of deficient and unseasonal rain on rural India, and the dollar\u2019s strength against all other currencies have come together to hurt the earnings trajectory of corporate India.For IT companies, Q4 is historically weak. This one is expected to be worse, due to cross-currency headwinds. The dollar\u2019s strengthened by four to 10 per cent against most other major currencies, which would hurt the earnings of companies with a strong presence outside America. Sequential dollar revenue growth might remain flat or fall up to three per cent for many. Earnings growth, too, for most large IT companies is likely to be muted.Among other key sectors, metals might be the worst hit. While domestic steel demand is weak, a 60 per cent surge in Chinese imports is hurting business. Led by global cues, domestic prices are down eight to 10 per cent, impacting profit. Edelweiss estimates Tata Steel\u2019s net profit to fall by 95 per cent, while Kotak estimates a net loss of Rs 130 crore versus a consolidated profit of Rs 1,060 crore in Q4 of FY14. Profits of Jindal and JSW Steel are also seen falling sharply. Base metal companies Hindalco and Sesa Sterlite are expected to see a sharp decline in profit. The decline here of Tata Steel, Sesa Sterlite and Hindalco means their contribution to the Sensex profit after tax (PAT) will shrink from over five per cent last year to about one per cent in Q4.Engineering and capital goods companies will also see pressure on profits, particularly Bharat Heavy Electricals expected to be a drag for this sector. Positively, banking, financial services and insurance is expected to deliver healthy earnings growth. A big contributor to the Sensex PAT (13.5 per cent in the year-ago quarter), it has a strong influence on overall numbers. Earnings will be led by private sector banks Axis and HDFC, seen posting an 18-22 per cent rise in profit. Edelweiss analysts, led by Nilesh Parikh, say: \u201cIndustry credit growth, running at multi-year lows, will exert pressure on top-line growth of banks, especially public sector players facing capital and asset quality challenges, while private banks will continue to outpace industry growth.\u201dOil & gas will also be a mixed bag but broadly positive. Oil marketing companies should deliver good operating performance, led by strong gross refining margins (GRMs). However, there is no clarity on net realisations. Among Sensex companies, strong GRMs mean Reliance Industries will deliver good performance. Estimates peg its profit at Rs 5,900-6,300 crore. Though oil prices are down (so, lower contribution on account of its stake in Cairn\u2019s oilfields), Oil & Natural Gas Corporation should benefit on account of a lower subsidy burden.So, too, with automobiles. Two-wheelers have seen pressure on volumes, while passenger cars and commercial vehicles have fared better. The sector is expected to grow headline revenues in low single digits but net profit growth is expected to be about 10 per cent, led by better margins (lower input costs and currency gains).","pubdate":"Thu, 09 Apr 2015 22:14:00 +0530","newspaper":"Business Standard"},{"title":"More reforms in store for debt market in FY16","content":"
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\n\tThe financial year 2015-16 is set to turn out to be a year for debt market reforms as experts believe there are many positive steps in the offing after the already announced measures. Though it is agreed that these reforms were long pending since many years, the street believes among the other measures Credit Default Swaps (CDS) could be relaunched, steps to enhance liquidity in corporate bonds may be announced and a full fledged screen based trading system for corporate bonds may be put in place.
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\n\tIn the Reserve Bank of India's (RBI) first bi-monthly monetary policy earlier this week, the central bank said that they will formulate a scheme for market making by primary dealers in semi-liquid and illiquid government securities.
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\n\t\"A similar step could perhaps be taken by asking merchant bankers in corporate bonds by asking them to provide liquidity in bonds. That will add to substantial amount of liquidity in bonds. Today once the bonds gets sold in the market, these merchant bankers no longer provide liquidity to the market,\" said R Sivakumar, head of fixed income and products, Axis Mutual Fund.
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\n\tRBI also announced steps to boost retail participation in government securities. These measures include a web-based solution for all mid-segment and retail investors who have gilt accounts to participate in the government securities market and providing these investors direct access to both primary and secondary market platforms without any intermediary. For this, alternate channels of distribution of government securities would be created, RBI said.
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\n\t\"Retail participation in government securities will take a long time as fixed deposit rates are more attractive. There is scope for reforms in corporate bond market. For instance, it is critical to have a full fledged screen based trading system for bonds,\" said S Prabhu, head of fixed income at IDBI Federal Life Insurance.
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\n\tCurrently, secondary market activity in corporate bonds continues to be negligible when compared with the volumes in government securities. Besides that though CDS made its debut in 2011, but the instruments failed to take off. CDS are instruments where the buyers receives credit protection while the seller of the swap guarantees the credit worthiness of the debt security.
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\n\t\"The CDS market is needed because those who invest in corporate bonds, are exposed to interest rate risks as well as credit risks due to which there is a need for this instrument. We may also see reissue of bonds by corporates so that there is more liquidity in the market,\" said K P Jeewan, head of fixed income, Karvy Stock Broking.
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\n\tAccording to Nirakar Pradhan, chief investment officer of Future Generali India Life Insurance, with respect to corporate bond market, there is also a need for more transparent settlement mechanism.","pubdate":"Thu, 09 Apr 2015 19:22:00 +0530","newspaper":"Business Standard"},{"title":"Sebi eases rules for foreign investment in govt bonds","content":"
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\n\tIndia's market regulator has allowed foreign investors to reinvest in government bonds the same day, according to a emailed circular seen by Reuters, hoping to sustain outside interest in the country's debt market.
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\n\tIndia limits the amount of government bonds available to foreign investors, and some 90% of that allocation was filled in September last year, following the election of Prime Minister Narendra Modi's government earlier in 2014.
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\n\tLevels of foreign investment have since risen, with the Securities and Exchange Board of India (Sebi) auctioning the remaining portion at frequent intervals.
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\n\tHowever, foreign investors who bought government bonds before September had been unable to switch those bonds to different tenors - once debt was sold, they could not buy back in without going through the lengthy auction process.
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\n\t\"This will revive foreign investor interest in government bonds and help investors to switch to longer end bonds from shorter end, given a benign interest rate outlook in India,\" said Ajay Manglunia, head of fixed income markets at Edelweiss Securities.
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\n\tAllowing foreign investors to reinvest in sovereign paper could also indicate that the government has no intention of relaxing overall limits on their investment anytime soon, Manglunia added.
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\n\tSebi, in an email sent late on Wednesday to the custodian banks of foreign investors and seen by Reuters, said the facility to buy and sell government bonds the same day would be applicable on the entire $30 billion ceiling on government debt purchases by foreign investors.
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\n\t\"Upon sale or redemption or maturity of government securities the FPIs (foreign portfolio investors) shall be permitted to buy government securities on the same day,\" Sebi said in the email, confirmed by four dealers.
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\n\tForeign investors have been aggressively buying Indian debt since Modi came to power in May, promising a quicker and stronger economic recovery.
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\n\tThe benchmark 10-year bond yield has fallen by 104 basis points since May last year driven by foreign buying. Foreign investors have poured in $7.9 billion so far this year into Indian debt, on top of $26.2 billion in 2014.","pubdate":"Thu, 09 Apr 2015 18:05:00 +0530","newspaper":"Business Standard"},{"title":"MF exposure to bank stocks drops to Rs 73,000 crore in March","content":"
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\nMutual fund (MF) managers dropped their exposure in bank stocks to over Rs 73,000 crore in March after raising it for six consecutive months.
\nMutual fund (MF) managers dropped their exposure in bank stocks to over Rs 73,000 crore in March after raising it for six consecutive months.MF investments in bank stocks declined to Rs 73,575 crore as on March 31 after hitting an all-time high of Rs 77,805 crore in the preceding month, according to the latest data available with Securities and Exchange Board of India (Sebi).In comparison, the investment in banking stocks stood at Rs 40,293 crore in March 2014.Mutual Fund investment in banking stocks account for 20.42 per cent of the total equity assets under management (AUMs) of Rs 3.6 lakh crore.It had been continuously raising exposure to banking shares since September last year.According to market participants, funds have been showing interest in banking stocks since September last year amid rising equity markets and the current decline is mainly due to profit-booking.Fund houses have shown strong interest in overall equity market on the back of positive returns.MFs are investment vehicles made up of a pool of funds collected from a large number of investors and invest in stocks, bonds and money market instruments, among others.","pubdate":"Thu, 09 Apr 2015 15:57:00 +0530","newspaper":"Business Standard"},{"title":"Nifty ends above 8,750 on Moody's India outlook upgrade","content":"
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\nMarkets gained for the fifth straight session led by a rally in bank shares after global rating agency Moody's revised India's sovereign outlook to positive from stable while Reliance Industries extended gains on talk of huge gas find.
\nMarkets gained for the fifth straight session led by a rally in bank shares after global rating agency Moody's revised India's sovereign outlook to positive from stable while Reliance Industries extended gains on talk of huge gas find.The 30-share Sensex ended higher by 177.46 points at 28,885.21 and the 50-share Nifty gained 63.90 points at 8,778.30.Among broader markets, BSE Midcap index inched up 0.2.5% whereas the BSE Smallcap index gained over 0.7%. The market breadth was positive with 1,586 advances against 1,256 declines on the BSE.Meanwhile, a Reuter\u2019s poll of economists hinted that factory growth slowed for a third month running in February.Weaker growth and inflation below the RBI's goal of 6% by January 2016 would give the central bank room to ease policy further this year to spur activity. The survey of 17 forecasters predicted India's industrial production (IIP) increased 2.4% in February from a year earlier, below January's 2.6%.\"After the recent underperformance, banking sector finally witnessed strong rebound on Thursday and ended on strong note. We believe this move will extend further in the coming sessions and it would further fuel the prevailing recovery in the benchmark index. In banking space, we reiterate our advice to restrict your stock selection to private banking counters for trading and investment,\" said Jayant Manglik, President-retail distribution, Religare Securities.MOODY'S OUTLOOKRating agency Moody's today upgraded India's credit outlook to positive from stable, saying that the measures taken by the policymakers would enhance economic strength.\"The Modi government's push towards a hassle-free business environment in the country impressed Moody's to shift its outlook on Asia's No. 3 economy from stable to positive. India's Baa3 rating was affirmed and the outlook was revised from stable,\" Moody's said in a statement Thursday in Singapore.\"Moody's decision continues to reaffirm that rating agencies, global investors and our own domestic businesses have faith in India's growth outlook and our financial strength as a sovereign,\" Minister of State for Finance, Jayant Sinha said reacting to the development.SATYAM CASEA Hyderabad-based special court set up to try the Satyam Satyam Computer Services fraud case has convicted former chairman B Ramalinga Raju and other nine accused following a seven-year trial. The court will announce the quantum of punishment on Friday. Reacting to the news, Tech Mahindra which has acquired the company ended marginally lower.SECTORS & STOCKSBSE Bankex and BSE Metal index surged between 1-2.5%. However, BSE Healthcare, Capital Goods and Realty indices dipped between 1-2%.Banking shares ended higher after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.Kotak Mahindra Bank rallied 5% to Rs 1,439, while Punjab National Bank (PNB) gained 4% at Rs 159 on the National Stock Exchange (NSE). IndusInd Bank, Bank of India, YES Bank, Axis Bank, Bank of Baroda, ICICI Bank and Canara Bank were up 2-5%.RIL extended the gains of the previous session, soaring by almost 4% on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin.India's summer monsoon rains are expected to be normal this year, the chief economic adviser at the finance ministry said on Thursday. Monsoon rains are vital for India's farm sector, which accounts for 14 per cent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation. Tracking the news FMCG major HUL firmed up and gained over 1%.Other notable gainers were Tata Steel, Hindalco, Coal India, Maruti Suzuki and Hero Moto. On the losing side, Sun Pharma, GAIL, Bharti Airtel, Cipla and BHEL fell between 1-4%.Sun Pharmaceutical Industries, Lupin, Cipla, Dr Reddy\u2019s Laboratories, Torrent Pharmaceuticals, Strides Arcolab, Wockhardt, Glenmark Pharmaceuticals and Cadila Healthcare were down 2-3% on the BSE among the pharma sector stocks.Among other shares, agrochemical companies rallied by up to 15% on the bourses on back of heavy volumes. PI Industries, Insecticides and Sharda Cropchem touched their respective all-time high price on the BSE.GLOBAL MARKETSWorld stocks marched higher again on Thursday, drawing support from European auto sales and German trade data, while expectations that the first US interest rate increase will come in the latter part of the year continue to grow.Investors also breathed a sigh of relief as Greece confirmed it will pay a 450 million-euro loan tranche to the International Monetary Fund on Thursday, meeting a deadline and taking the immediate heat off the cash-strapped country.MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.7% to its highest since mid-September. That marks nine straight winning sessions, its best run since September 2013.Japanese stocks rose 0.75% to a 15-year high, while Hong Kong powered up 2.7% to a seven-year peak. Hong Kong is up nearly 7% so far this week, by far its best week since December 2011.","pubdate":"Thu, 09 Apr 2015 15:46:00 +0530","newspaper":"Business Standard"},{"title":"Markets end higher amid volatile trading session","content":"
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\nBenchmark indices ended higher amid volatile trading session led by index heavyweight Reliance Inds and bank shares.
\nBenchmark indices ended higher amid volatile trading session led by index heavyweight Reliance Inds and bank shares.The 30-share Sensex provisionally ended higher 161 points at 28,869 and the 50-share Nifty gained 61 points at 8,775.
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\n(Updated at 14:40)
\nBenchmark indices continue to remain volatile in late trades even as gains in bank shares helped offset losses in pharma shares. Meanwhile, a Reuter\u2019s poll of economists hinted that factory growth slowed for a third month running in February.Weaker growth and inflation below the RBI's goal of 6% by January 2016 would give the central bank room to ease policy further this year to spur activity. The survey of 17 forecasters predicted India's industrial production (IIP) increased 2.4% in February from a year earlier, below January's 2.6%.At 14:40PM, the 30-share Sensex was up 18 points at 28,725 and the 50-share Nifty was up 14 points at 8,729.Among broader markets, BSE Midcap index has slipped 0.2% whereas the BSE Smallcap index has gained over 0.1%.The market breadth is strong with 1,513 advances against 1,110 declines on the BSE.GLOBAL MARKETSTokyo's benchmark index hit a 15-year high on Wednesday after Japanese retail investors ploughed a sizable amount of cash into new stock mutual funds and as regional bourses appeared to\u00a0 benefit from rotation of funds out of U.S. equities.Retailers and other domestic-demand oriented shares led the gains, with department store operator Takashimaya erasing earlier losses to gain sharply despite reporting modest earnings.The Nikkei rose 0.8% to 19,789.81, closing at its highest level since April 2000, even as Wall Street shares posted small losses the previous day.SECTORS & STOCKSBSE Bankex and BSE Metal index have surged between 1-2%. However, BSE Healthcare index has slumped over 2% followed by counters like Realty, Consumer Durables and Capital Goods, all dipping between 1-1.6%.Banking shares are trading higher up to 5% on the bourses after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.Kotak Mahindra Bank has rallied 5% to Rs 1,439, while Punjab National Bank (PNB) gained 4% at Rs 159 on the National Stock Exchange (NSE). IndusInd Bank, Bank of India, YES Bank, Axis Bank, Bank of Baroda, ICICI Bank and Canara Bank up 2% to 3%.RIL has extended the gains of the previous session, soaring by 2% on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. However, HPCL and BPCL, besides ONGC are trading marginally in the red.India's summer monsoon rains are expected to be normal this year, the chief economic adviser at the finance ministry said on Thursday.Monsoon rains are vital for India's farm sector, which accounts for 14 per cent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation. Tracking the news FMCG major HUL firmed up and gained over 1%.Other notable gainers are Tata Steel, Coal India, Maruti Suzuki and Hero Moto.On the losing side, Sun Pharma, GAIL, Bharti Airtel, Cipla and BHEL have fallen between 1-3.5%.Shares of frontline pharmaceutical companies are trading lower 2-4% on the bourses on profit bookings.Sun Pharmaceutical Industries, Lupin, Cipla, Dr Reddy\u2019s Laboratories, Torrent Pharmaceuticals, Strides Arcolab, Wockhardt, Glenmark Pharmaceuticals and Cadila Healthcare were down 2%-3% on the Bombay Stock Exchange (BSE).","pubdate":"Thu, 09 Apr 2015 15:33:00 +0530","newspaper":"Business Standard"},{"title":"Gold drops Rs 400, silver plunges by Rs 1,350 on global cues","content":"
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\nGold prices tumbled by Rs 400 to hit one-week low of Rs 26,750 per 10 grams at the bullion market today amid a weak global trend and low demand from jewellers and retailers.
\nGold prices tumbled by Rs 400 to hit one-week low of Rs 26,750 per 10 grams at the bullion market today amid a weak global trend and low demand from jewellers and retailers.Silver also plunged by Rs 1,350 at Rs 36,650 per kg on poor offtake by industrial users and coin makers.Bullion merchants said apart from sluggish demand from jewellers and retailers, a weakening global trend where gold declined to over one-week low after minutes of the Federal Reserve's last meeting showed that some policymakers favoured raising interest rates in June, mainly dampened the sentiments here.Gold prices in Singapore, which normally determines trends on the domestic front, fell by 0.8 per cent to $1,192.74 an ounce, the lowest since April 1 and silver dropped 1.8 per cent to $16.23 an ounce, the lowest since March 20.In the national capital, gold of 99.9 per cent purity suffered a sharp set-back of Rs 400 each at Rs 26,750 and Rs 26,600 per 10 grams, respectively, a level last seen on April 1. The precious metal has lost Rs 100 in the past two days.Sovereign, however, held steady at Rs 23,700 per piece of eight grams.Tracking gold, silver ready also dropped by Rs 1,350 at Rs 36,650 per kg and weekly-based delivery by Rs 1,270 at Rs 36,450 per kg.Silver coins also nosedived by Rs 2,000 at Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.","pubdate":"Thu, 09 Apr 2015 15:28:00 +0530","newspaper":"Business Standard"},{"title":"Reliance Industries gains over 7% in two-days on talk of gas find","content":"
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\n\tShares of Reliance Industries (RIL) have moved higher by 3.5% at Rs 896, extending its previous day\u2019s 4% gain on the National Stock Exchange (NSE) on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. CLICK HERE TO READ FULL REPORT.The counter has seen a huge trading activity with a combined 6.67 million shares changed hands till 1514 hours, against an average 4.4 million shares that were traded daily in past two weeks on the NSE and BSE.
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\n","pubdate":"Thu, 09 Apr 2015 15:19:00 +0530","newspaper":"Business Standard"},{"title":"Agrochemicals shares rally; PI Industries, Insecticides hit record high","content":"
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\n\tShares of agrochemical companies have rallied by up to 15% during intra-day trade on the bourses on back of heavy volumes.PI Industries (up 15% at Rs 750), Insecticides (12% at Rs 940) and Sharda Cropchem (up 10% at Rs 354) have touched their respective all-time high price on the Bombay Stock Exchange (BSE).Atul was up 4% at Rs 1,158, while Punjab Chemicals and Crop Protection rose 3% at Rs 209 and Bayer CropScience was up 1% at Rs 3,300 on the BSE. The S&P BSE Sensex was trading flat at 28,756 points at 1444 hours.Insecticides (India) have rallied 12% to Rs 940, extending its 15% surge in past two trading sessions on the BSE, after the company fixes April 17, 2015 as the record date for the purpose of issue of bonus shares.The board recommended the issue of bonus shares in the ratio of 1:2 i.e. 1 bonus equity share for every 2 \u00a0equity shares held by member as on date of book closure.The trading volumes on the counter jumped more than three-fold with a combined 416,173 shares changed hands on the BSE and NSE till 1455 hours.Meanwhile, the foreign institutional investors (FIIs) have increased their stake in Sharda Cropchem and Atul during the recently concluded quarter.In Sharda Cropchem, the overseas investors holding increased to 5.70% in March 2015 quarter from 3.87% at the end of December 2014 quarter. They raised their stake in Atul to 6.70% from 5.74% in previous quarter.
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\n","pubdate":"Thu, 09 Apr 2015 14:55:00 +0530","newspaper":"Business Standard"},{"title":"Commexes' turnover dips by 39% in FY15 due to CTT","content":"
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\nThe turnover of Indian commodity exchanges dropped 39 per cent to Rs 61.68 lakh crore last fiscal due to higher transaction costs and decline in prices of bullion and metals.
\nThe turnover of Indian commodity exchanges dropped 39 per cent to Rs 61.68 lakh crore last fiscal due to higher transaction costs and decline in prices of bullion and metals.The business at these bourses was at Rs 101.44 lakh crore in the previous fiscal, 2013-14, according to the data released by the Forward Markets Commission (FMC).The turnover of bullion fell by over 49 per cent to Rs 21.88 lakh crore in 2014-15, from Rs 43 lakh crore a year-ago.Similarly, the turnover of energy commodities declined by 34 per cent to Rs 16.46 lakh crore, from Rs 24.72 lakh crore, while that of metals dipped by 28 per cent to Rs 12.74 lakh crore from Rs 17.61 lakh crore in the review period.The business from agricultural commodities also fell by 34 per cent to Rs 10.58 lakh crore in the 2014-15 fiscal, from Rs 16.02 lakh crore in 2013-14.\"The turnover has declined due to higher commodity transaction tax (CTT), which is in place since July 1, 2013. There has also been decline in prices of gold, silver and other metals,\" commodity brokerage SMC Comtrade Chairman and Managing Director D K Aggarwal said.The CTT need to be scrapped sooner or later, else the sluggish turnover trend will continue this year as well, he added.There are four national and six regional level exchanges operating in the country.CTT is a tax levied on exchange-traded commodity derivatives in India on the lines of the Securities Transaction Tax.Industry argues that CTT on commodity derivatives increases the cost of hedging transactions. Sellers have to pay 0.01 per cent tax, that is, Rs 10 for a transaction value of Rs 1 lakh.","pubdate":"Thu, 09 Apr 2015 14:22:00 +0530","newspaper":"Business Standard"},{"title":"Markets erase gains; Sun Pharma falls nearly 4%","content":"
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\n\tBenchmark indices have erased early gains and have turned extremely choppy with Sensex and Nifty swinging between negative and positive zone.At 14:12PM, the 30-share Sensex was up 8 points at 28,716 and the 50-share Nifty was up 7 points at 8,722.****************************************
\n\tUpdated at 1:25 PMBenchmark indices are set to register gains for the fifth straight session led by a rally in banking stocks after global rating agency Moody's revised India's sovereign ratings outlook to positive and index heavyweight Reliance Industries.
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\n\tHowever, the upside gains are capped as healthcare stocks dropped with Sun Pharmaceutical Industries falling 2.5% after Bank of America Merrill Lynch (BoFA-ML) downgraded several pharma stocks.
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\n\tAt 1.25 pm, the Sensex is at 28,806, higher by 98 points and the Nifty is at 8749, up 34 points.
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\n\tMOODY'S OUTLOOK
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\n\tThe Finance Ministry today said the NDA government has restored the faith of investors and rating agencies on the growth outlook of the Indian economy.
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\n\t\"Moody's decision continues to reaffirm that rating agencies, global investors and our own domestic businesses have faith in India's growth outlook and our financial strength as a sovereign,\" Minister of State for Finance, Jayant Sinha told reporters here.
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\n\tRating agency Moody's today upgraded India's credit outlook to positive from stable, saying that the measures taken by the policymakers would enhance economic strength.
\n\t\tSATYAM CASE
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\n\t\tA Hyderabad-based special court set up to try the Satyam Satyam Computer Services fraud case has convicted former chairman B Ramalinga Raju and other nine accused following a seven-year trial. The court will announce the quantum of punishment on Friday. Reacting to the news, Tech Mahindra which has acquired the company is trading flat with a negative bias on the BSE.\u00a0
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\n\tOil prices inched up after falling nearly 7% on Wednesday after the Energy Department reported oil in storage was about triple what analysts had estimated. Brent crude gained 67 cents to $57.36 after falling $3.55 overnight to close at $55.55 in London.
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\n\tThe rupee is trading flat against the US dollar after opening higher at the Interbank Foreign Exchange following rating agency Moody\u2019s upgraded India\u2019s outlook from stable to positive.
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\n\tKEY STOCKS
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\n\tOn the sectoral front, BSE Bankex is the top gained up 2% followed by Metal index. However, BSE Healthcare, Realty, Capital Goods indices are trading lower up to 2%.
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\n\tBanking shares are trading higher up to 5% on the bourses after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.
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\n\tKotak Mahindra Bank has rallied 5% to Rs 1,439, while Punjab National Bank (PNB) gained 4% at Rs 159 on the National Stock Exchange (NSE). IndusInd Bank, Bank of India, YES Bank, Axis Bank, Bank of Baroda, ICICI Bank and Canara Bank up 2% to 3%.
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\n\tHealthcare shares fall after the Bank of America said in a report that absolute returns on pharma stocks are unlikely in the next 12 months after recent rally. Sun Pharma was cut to underperform from buy, while Lupin, Cipla, Cadila Healthcare to neutral from buy.Sun Pharma is down 2%, Lupin dropped 3% while Cipla lost 1.6%.
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\n\tIndia's summer monsoon rains are expected to be normal this year, the chief economic adviser at the finance ministry said on Thursday.
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\n\tMonsoon rains are vital for India's farm sector, which accounts for 14 per cent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation. Tracking the news FMCG major HUL firmed up and gained over 1%.
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\n\tIn the oil space, RIL has extended the gains of the previous session, soaring by 2% on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. However, HPCL and BPCL, besides ONGC are trading marginally in the red.
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\n\tThe broader markets are almost in line with the large counterparts. BSE Midacp and Smallcap indices are trading higher up to 0.8%. The market breadth is strong with 1,513 advances versus 1,110 declines on the BSE.","pubdate":"Thu, 09 Apr 2015 14:15:00 +0530","newspaper":"Business Standard"},{"title":"Aurobindo Pharma gains on USFDA nod for anesthesia injections","content":"
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\n    Shares of Aurobindo Pharma were up over 1% at 1,340 after the company said it has received approval from USFDA to manufacture and market Atracurium Besylate Injection, 10mg\/ml, 5 ml single-dose vials and 10 mg\/ml, 10ml multi-dose vials.Shares of Aurobindo Pharma were up over 1% at 1,340 after the company said it has received approval from USFDA to manufacture and market Atracurium Besylate Injection, 10mg\/ml, 5 ml single-dose vials and 10 mg\/ml, 10ml multi-dose vials.The said injections are bioequivalent and therapeutically equivalent to the reference listed drug product Atracurium Besylate Injections USP of Eurohealth International Sarl, the company said in a release today.The injections are indicated as an adjunct to general anesthesia, to facilitate endotracheal intubation and to provide skeletal muscle relaxation during surgery or mechanical ventilation, the release added.The stock opened at Rs 1,330 and touched a high of Rs 1,354. At 13:35, over 1.3 million shares were traded on both the stock exchanges.","pubdate":"Thu, 09 Apr 2015 13:35:00 +0530","newspaper":"Business Standard"},{"title":"Sugar extends gains on spot demand","content":"
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\nSugar prices rose by Rs 25 to Rs 2,600 per quintal in futures market today amid summer season demand from bulk consumers and retailers at spot market.
\nSugar prices rose by Rs 25 to Rs 2,600 per quintal in futures market today amid summer season demand from bulk consumers and retailers at spot market.At the National Commodity and Derivatives Exchange, sugar for delivery in July was trading higher by Rs 25, or 0.97 per cent, at Rs 2,600 per quintal with an open interest of 11,640 lots.The May contract added Rs 18, or 0.72 per cent, to Rs 2,510 per quintal in 40,200 lots.Analysts said persistent rise in sugar prices at futures trade was mostly driven by pick-up in summer season demand from bulk consumers, including ice-cream makers, but ample stocks in the market and higher output reports, capped the gains.Meanwhile, India's sugar production went up by 13 per cent to 24.72 million tonnes in the first six months of the current marketing year, ending September.","pubdate":"Thu, 09 Apr 2015 13:22:00 +0530","newspaper":"Business Standard"},{"title":"Chana rises 0.8% on firm demand, lower output","content":"
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\nChana prices advanced 0.80 per cent to Rs 3,924 per quintal in futures trading today as speculators enlarged positions, tracking a solid trend at spot market on high demand.
\nChana prices advanced 0.80 per cent to Rs 3,924 per quintal in futures trading today as speculators enlarged positions, tracking a solid trend at spot market on high demand.Expectations of lower output due to unseasonal rains in growing regions fuelled the uptrend.At the National Commodity and Derivatives Exchange (NCDEX), chana for delivery in April gained Rs 31, or 0.80 per cent, to Rs 3,924 per quintal with an open interest of 91,400 lots.Similarly, the commodity for delivery in May moved up by Rs 20, or 0.51 per cent, to Rs 3,923 per quintal in 1,27,590 lots.Analysts said besides rising demand in the spot market, expectations of a lower output due to unseasonal rains in growing regions kept chana prices elevated at the futures trade.","pubdate":"Thu, 09 Apr 2015 13:22:00 +0530","newspaper":"Business Standard"},{"title":"Zinc softens by 0.4% on global cues","content":"
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\nZinc prices declined by 0.41% to Rs 133.70 per kg in futures trade today as speculators trimmed positions after the metal weakened at the London Metal Exchange (LME) amidst subdued domestic demand.
\nZinc prices declined by 0.41% to Rs 133.70 per kg in futures trade today as speculators trimmed positions after the metal weakened at the London Metal Exchange (LME) amidst subdued domestic demand.At the Multi Commodity Exchange, zinc for delivery in April declined by 55 paise, or 0.41%, to Rs 133.70 per kg in business turnover of 257 lots.Likewise, the metal for delivery in May shed 40 paise, or 0.30%, to Rs 134.55 per kg in three lots.Analysts said the decline in zinc at futures trade was mostly due to weakness in base metals at the London Metal Exchange.","pubdate":"Thu, 09 Apr 2015 13:13:00 +0530","newspaper":"Business Standard"},{"title":"Lead declines by 0.2% on overseas cues","content":"
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\nLead softened by 0.17% to Rs 119.80 per kg in futures trade today amid a weak trend overseas and subdued demand from battery-makers in the domestic spot market.
\nLead softened by 0.17% to Rs 119.80 per kg in futures trade today amid a weak trend overseas and subdued demand from battery-makers in the domestic spot market.Lead for delivery in April fell by 20 paise, or 0.17%, to Rs 119.80 per kg in a business turnover of 215 lots at the Multi Commodity Exchange.Similarly, the metal for delivery in May traded lower by 15 paise, or 0.12%, to Rs 120.50 per kg in just 1 lot.Marketmen said besides subdued demand from battery-makers in the domestic spot market, a weak trend in copper and other base metals at the London Metal Exchange weighed on lead prices at futures trade.","pubdate":"Thu, 09 Apr 2015 13:13:00 +0530","newspaper":"Business Standard"},{"title":"Jeera gains 0.58% on spot demand","content":"
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\nJeera prices moved up by 0.58 per cent to Rs 16,460 per quintal in futures trade today, tracking a firm trend at spot market on pick-up in demand.
\nJeera prices moved up by 0.58 per cent to Rs 16,460 per quintal in futures trade today, tracking a firm trend at spot market on pick-up in demand.Besides, restricted supplies from producing belts in the physical market supported the upside.At the National Commodity and Derivatives Exchange, jeera for delivery in April rose by Rs 95, or 0.58 per cent to Rs 16,460 per quintal with an open interest of 5,436 lots.The May contract gained Rs 75, or 0.45 per cent to Rs 16,785 per quintal in 13,338 lots.Analysts attributed the rise in jeera futures to pick-up in demand in the spot market amid restricted supplies from producing belts.","pubdate":"Thu, 09 Apr 2015 13:13:00 +0530","newspaper":"Business Standard"},{"title":"Silver falls by 0.8% on weak global cues","content":"
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\nSilver prices fell by Rs 297 to Rs 37,135 per kg in futures trade today in tune with a weak trend overseas as speculators reduced their exposure.
\nSilver prices fell by Rs 297 to Rs 37,135 per kg in futures trade today in tune with a weak trend overseas as speculators reduced their exposure.At the Multi Commodity Exchange, silver for delivery in far-month July traded lower by Rs 297, or 0.79%, to Rs 37,135 per kg in a business turnover of 20 lots.Similarly, the white metal for delivery in May declined by Rs 289, or 0.78%, to Rs 36,669 per kg in a business volume of 382 lots.In the international market, silver traded 0.7% lower at $16.41 an ounce in Singapore today.Analysts said the fall in silver prices at futures trade was due to a weak trend in precious metals in global markets.","pubdate":"Thu, 09 Apr 2015 13:07:00 +0530","newspaper":"Business Standard"},{"title":"Cardamom rises 1.82% on spot demand","content":"
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\nCardamom prices recovered 1.82 per cent to Rs 819 per kg in futures market today as speculators created fresh positions, taking positive cues from spot market on improved demand.
\nCardamom prices recovered 1.82 per cent to Rs 819 per kg in futures market today as speculators created fresh positions, taking positive cues from spot market on improved demand.At the Multi Commodity Exchange, cardamom for delivery in April rose by Rs 14.60, or 1.82 per cent, to Rs 819 per kg in business turnover of 2 lots.The May contract edged up by Rs 1.20, or 0.14 per cent, to Rs 879.70 per kg in 100 lots.Analysts said fresh positions built up by speculators supported by rising demand in the spot market amid restricted supplies from producing belts mainly influenced cardamom prices at the futures trade.","pubdate":"Thu, 09 Apr 2015 12:57:00 +0530","newspaper":"Business Standard"},{"title":"Crude palm oil loses ground as demand wanes","content":"
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\nContinuing its losing streak for the third day, crude palm oil prices tumbled another 0.62 per cent to Rs 435.90 per 10 kg in futures trading today as speculators offloaded positions amid subdued demand in the spot market.
\nContinuing its losing streak for the third day, crude palm oil prices tumbled another 0.62 per cent to Rs 435.90 per 10 kg in futures trading today as speculators offloaded positions amid subdued demand in the spot market.At the Multi Commodity Exchange, crude palm oil for delivery in April eased Rs 2.70, or 0.62 per cent, to Rs 435.90 per 10 kg in business turnover of 64 lots.The May contract traded lower by Rs 2.70, or 0.61 per cent, to Rs 436.60 per 10 kg in 62 lots.Market analysts said continued trimming of positions by traders triggered by subdued spot market demand mainly kept crude palm oil prices depressed at futures trade.","pubdate":"Thu, 09 Apr 2015 12:57:00 +0530","newspaper":"Business Standard"},{"title":"Banking shares gain after Moody's revises India outlook","content":"
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\n\tBanking shares were trading higher up to 5% on the bourses after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.Kotak Mahindra Bank has rallied 5% to Rs 1,439, while Punjab National Bank (PNB) gained 4% at Rs 159 on the National Stock Exchange (NSE). IndusInd Bank, Bank of India, YES Bank, Axis Bank, Bank of Baroda, ICICI Bank and Canara Bank up 2% to 3%.At 1211 hours, Bank Nifty was up 2% or 359 points at 18,776 compared with 0.22% rise in the CNX Nifty. \u00a0The banking share index hit a high of 18,780, bouncing back 379 points from intra-day low of 18,401 touched in early morning trade.Moody's Investors Service \u00a0in a statement said that the decision to revise the ratings outlook to positive from stable is based on its view that there is an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years.Meanwhile, the rating agency has affirmed the long-term ratings and changed the outlook to positive from stable for 12 Indian government-owned financial institutions.
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\n","pubdate":"Thu, 09 Apr 2015 12:17:00 +0530","newspaper":"Business Standard"},{"title":"Nickel up by 0.1% on good demand","content":"
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\nNickel prices moved up by 0.15% to Rs 792.90 per kg in futures market today after speculators enlarged positions, tracking a firming trend in spot market on increased demand from alloy-makers.
\nNickel prices moved up by 0.15% to Rs 792.90 per kg in futures market today after speculators enlarged positions, tracking a firming trend in spot market on increased demand from alloy-makers.Besides, the metal's gain in global markets supported the upside.At the Multi Commodity Exchange, nickel for delivery in April gained Rs 1.20, or 0.15%, to Rs 792.90 per kg in business turnover of 1,550 lots.In a similar fashion, the metal for delivery in May rose 90 paise, or 0.11%, to Rs 800 per kg in 23 lots.Market analysts said apart from hardening domestic demand from alloy-makers, firmness in base metal at the London Metal Exchange influenced nickel futures here.","pubdate":"Thu, 09 Apr 2015 12:07:00 +0530","newspaper":"Business Standard"},{"title":"Mentha oil up by 0.3% on high demand","content":"
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\nMentha oil prices edged higher by 0.29% to Rs 901.90 per kg in futures trade today as participants created fresh positions after demand picked up from consuming industries in the spot market.
\nMentha oil prices edged higher by 0.29% to Rs 901.90 per kg in futures trade today as participants created fresh positions after demand picked up from consuming industries in the spot market.At the Multi Commodity Exchange, mentha oil for delivery in May went up by Rs 2.60, or 0.29%, to Rs 901.90 per kg in a business turnover of 33 lots.Likewise, the oil for delivery in April contracts gained Rs 2.50, or 0.28%, to Rs 890.40 per kg in 222 lots.Analysts said fresh positions built up by speculators, driven by pick-up in demand from consuming industries in the spot market against restricted arrivals from Chandausi in Uttar Pradesh, mainly pushed up mentha oil prices at futures trade.","pubdate":"Thu, 09 Apr 2015 12:07:00 +0530","newspaper":"Business Standard"},{"title":"Gold futures drop Rs 150 on weak global cues","content":"
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\nGold futures fell by Rs 150 to Rs 26,610 per 10 grams today as speculators reduced their exposures amid a weak global trend.
\nGold futures fell by Rs 150 to Rs 26,610 per 10 grams today as speculators reduced their exposures amid a weak global trend.At the Multi Commodity Exchange, gold for delivery in June dropped by Rs 150, or 0.56 per cent, to Rs 26,610 per 10 grams in a business turnover of 452 lots.August gold shed Rs 147, or 0.55 per cent, to Rs 26,765 per 10 grams in 3 lots.Market analysts said the fall in gold futures was mostly in tandem with a weak trend overseas after minutes from the Federal Reserve's last meeting showed that some policy makers favoured raising interest rates in June.Meanwhile, gold prices fell by 0.3 per cent to $1,198.97 an ounce in Singapore today.","pubdate":"Thu, 09 Apr 2015 12:02:00 +0530","newspaper":"Business Standard"},{"title":"Markets in consolidation mode; Nifty sustains 8,700","content":"
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\nThe benchmark indices are consolidating the gains witnessed in the past four trading sessions. At 12.00pm, the Sensex is at 28,749, higher by 41 points and the Nifty is at 8730, up 16 points.
\nThe benchmark indices are consolidating the gains witnessed in the past four trading sessions. At 12.00pm, the Sensex is at 28,749, higher by 41 points and the Nifty is at 8730, up 16 points.The benchmark indices had a gap-up opening this morning, with the Sensex racing ahead by more than 100 points, after the global rating agency Moody's changed India's outlook to positive and affirmed the country's Baa3 rating. However, the gains seen in the previous four trading sessions seemingly led the market participants to take some profits off the table and drag the Sensex to an intra-day low of 28,622, down nearly 100 points. But the benchmark indices have staged a recovery thereafter and now trading marginally in the green.The broader market universe is continuing it outperformance vis-a-vis the benchmark indices. The midcap and smallcap indices is up about half a per cent each at 11,076 and 11,715 respectively as against the Sensex's gains of about 0.4%. The BSE small-cap index has hit a fresh seven-year high of 11,735 points, its highest level since January 2008.SECTORS AND STOCKSThe banking index, especially the private banking space, is attracting investor interest after being subdued in the previous session. The private sector Yes Bank, ICICI Bank, HDFC Bank and Axis Bank have gained between 1% and 2% each.In the oil space, RIL has extended the gains of the previous session, soaring by 1.9% at Rs 882, on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. However, HPCL and BPCL, besides ONGC are trading marginally in the red.The pharma space is witnessing profit-booking post the recent gains. Sun Pharmaceutical Industries, Lupin, Cipla, Dr Reddy\u2019s Laboratories, Torrent Pharmaceuticals, Strides Arcolab, Wockhardt, Glenmark Pharmaceuticals and Cadila Healthcare are down 2%-3% on the Bombay Stock Exchange (BSE). Bank of America Merill Lynch has downgraded Sun Pharma to underperform from buy and downgraded Lupin, Cipla and Cadila Healthcare to neutral from buy despite being positive on long term prospect. Sun Pharma, Dr Reddy's Labs, Cipla and Lupin dropped 2-3 percent.The auto and FMCG sectors are subdued.On the stock-specific front, Inox Wind is trading at Rs 419 on BSE, a premium of 24.91% over the initial public offer price of Rs 325. The company had made the public offer at a price band of Rs 315-325. The stock debuted at Rs 400 on BSE, a premium of 23.08% over its initial public offer (IPO) price. The stock hit a high of Rs 426.65 and a low of Rs 399.15 during the day.Biocon has shed 2% to Rs 475 on the BSE after turning ex-dividend for an interim dividend of Rs 5 a share for the year ended March 31, 2015.GLOBAL MARKETSAsian stocks are trading mixed with shares in Japan and Hong Kong hitting fresh multi-year highs. Japan's benchmark Nikkei was up 0.7% after hitting a 15-year high the previous day.\u00a0 Shares in Hong Kong also hit 7-year highs. The Hang Seng index has climbed 3.8% to its highest level since May 2008, boosted by strong buying from Chinese investors who used up the entire 10.5 billion yuan ($1.69 billion) daily investment quota in a cross-border program for the first time.","pubdate":"Thu, 09 Apr 2015 11:58:00 +0530","newspaper":"Business Standard"},{"title":"Pharma shares dip on profit booking","content":"
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\n\tShares of frontline pharmaceutical companies were trading lower 2%-3% on the bourses on profit bookings.\u00a0Sun Pharmaceutical Industries, Lupin, Cipla, Dr Reddy\u2019s Laboratories, Torrent Pharmaceuticals, Strides Arcolab, Wockhardt, Glenmark Pharmaceuticals and Cadila Healthcare were down 2%-3% on the Bombay Stock Exchange (BSE).At 1141 hours, S&P BSE Healthcare index was down 2% or 363 points at 18,217 against 0.13% or 38 points rise in the S&P BSE Sensex. The pharma index touched a low of 18,178 during intra-day trade so far.Thus far in 2015, the S&P BSE Healthcare index has outperformed the market by surging 26% against 4% gain in the benchmark index till yesterday.Wockhardt (94%), Lupin (46%), Sun Pharmaceutical Industries (39%) and Strides Arcolab (28%) from the index stocks have rallied more than 26% so far in the current calendar year.Aarti Drugs, RPG Life Sciences, Natco Pharma, Hester Biosciences, SMS Pharma, Claris Lifesciences, Anuh Pharma, Suven Life Sciences and Ajanta Pharma from the mid-and-small-sized pharma stocks zoomed between 50%-90%.
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\n","pubdate":"Thu, 09 Apr 2015 11:45:00 +0530","newspaper":"Business Standard"},{"title":"Copper falls by 0.2% on global cues","content":"
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\nCopper prices moved down by 0.24% to Rs 376.25 per kg in futures trade today as speculators reduced positions amid a weak trend overseas and low demand in the spot market.
\nCopper prices moved down by 0.24% to Rs 376.25 per kg in futures trade today as speculators reduced positions amid a weak trend overseas and low demand in the spot market.At the Multi Commodity Exchange, copper for delivery in April shed 90 paise, or 0.24%, to Rs 376.25 per kg in a business turnover of 408 lots.Likewise, the metal for delivery in far-month June traded lower by 65 paise, or 0.17%, to Rs 381.20 per kg in 11 lots.Analysts said the fall in copper prices at futures trade was largely in tune with a weak trend in base metals at the London Metal Exchange (LME) and Shanghai.Besides, low demand from domestic industries had negative impact, they added.Meanwhile, copper for delivery in three months retreated 0.4% to $5,986 a metric tonne at the LME, while at Shanghai, the metal lost 0.7% to 43,150 yuan ($6,955) a tonne.","pubdate":"Thu, 09 Apr 2015 11:42:00 +0530","newspaper":"Business Standard"},{"title":"Easyjet cancels nearly 600 flights","content":"\n                        Stranded passengers queue at Nice airport in the south of France\n                    \n                Easyjet has cancelled hundreds of flights as the second day of strike action by French air traffic controllers took its toll.The airline did not operate 331 flights after cancelling 248 on Wednesday.Some passengers have been stranded in European cities after Easter breaks, prompting Easyjet to operate five \"rescue\" flights on Friday.The flights will bring three parties of schoolchildren back to the UK.The additional flights will run from Luton to Paris, Paris to Barcelona, Barcelona to Luton, Gatwick to Madrid, and Marrakech to Gatwick.Easyjet says it will put larger aircraft on routes that have been most affected to allow more passengers to get home.A spokesman said the \"unnecessary\" strike had caused \"considerable and disproportionate disruption for passengers and airlines across Europe\".'Held to ransom'Rival low-cost airline Ryanair said it had been forced to cancel more than 500 flights over the last two days.\"We again call on the EU [European Union] and French authorities to act now and prevent  thousands of travellers being held to ransom by these French [air traffic control] workers,\" the Irish airline said.Johanna Booth, from Liverpool, has been stuck in Barcelona after two Ryanair flights were cancelled due to the industrial action. \"We have a four-month-old baby and his formula milk has ran out and he is not drinking much of the other variety, so I am concerned,\" she told the BBC. \"The support we have received from Ryanair has been minimal.\"'Inconvenience'Air France said it was operating one-in-four flights to and from Orly airport in Paris, about 40% to and from cities in the rest of France, and 50% of medium-haul flights to and from Paris-Charles de Gaulle airport.No long-haul Air France flights were affected on Thursday.Air traffic controllers are planning further industrial action from 16 to 18 April and from 29 April to 2 May 2 - both key holiday periods.Roger Rousseau, head of the SNCTA union that represents French air traffic controllers, said: \"We can assure our passengers that we are doing everything possible to limit the inconvenience of this strike on them.\"Among the issues upsetting members is that the retirement age will be raised from 57 to 59.\n    ","pubdate":"Thu, 09 Apr 2015 23:48:00 +0530","newspaper":"BBC"},{"title":"Japan's Nikkei hits 15-year high","content":"\n                        Japanese shares hit another 15-year high on Friday\n                    \n                Investors were focused on Japan as the country's benchmark Nikkei 225 index traded above 20,000 for the first time since April 2000.In Tokyo, the index was down 0.1% to 19,909.32 after hitting 20,004.99 in early trade.Investors hoped for larger shareholder returns and a recovery in domestic consumption.Shares were also boosted by Wall Street ending higher after US energy stocks performed strongly.The Nikkei is up nearly 15% this year.China inflation unchangedChinese shares were higher with inflation data coming in slightly above expectations.Consumer inflation stayed at 1.4% in March compared to the same month last year, but that was above market expectations of 1.3%.China's producer price index remained in negative territory, down 4.6%, with forecasts for a 4.8% annual fall.The Hang Seng index continued its week-long rally, up 1.1% to 27,252.32, while the Shanghai Composite traded flat at 3,956.61. Meanwhile, the chief executive of the Hong Kong Stock Exchange said they would \"substantially increase\" the quotas for the stock connect program between Hong Kong and Shanghai.His comments come after Chinese investors used up the entire 10.5bn yuan ($1.7bn; \u00a31.1bn) daily quota for buying Hong Kong stocks through the trading link for the first time on Wednesday, sending turnover to a record.Australian shares were higher, with the S&P\/ASX 200 index up 0.2% to 5,945.2.Shares of mining giant BHP Billiton weighed on the benchmark, down 0.8% on lower iron ore prices.In South Korea, the Kospi was up 0.9% to 2,078.21.\n    ","pubdate":"Fri, 10 Apr 2015 08:53:17 +0530","newspaper":"BBC"},{"title":"Gatwick oil find 'significant'","content":"\n                        UK Oil & Gas believes its exploratory well at Horse Hill, Surrey, shows great promise\n                    \n                There could be up to 100 billion barrels of oil onshore beneath the South of England, says exploration firm UK Oil & Gas Investments (UKOG).Last year, the firm drilled a well at Horse Hill, near Gatwick airport, and analysis of that well suggests the local area could hold 158 million barrels of oil per square mile.But only a fraction of the 100 billion total would be recovered, UKOG admits.The North Sea has produced about 45 billion barrels in 40 years. \"We think we've found a very significant discovery here, probably the largest [onshore in the UK] in the last 30 years, and we think it has national significance,\" Stephen Sanderson, UKOG's chief executive told the BBC.UKOG says that the majority of the oil lies within the Upper Jurassic Kimmeridge formation at a depth of between 2,500ft (762m) and 3,000ft (914m). It describes this as a \"world class potential resource\" and that the well has the \"potential for significant daily oil production\".  Compared with similar geology in the US and West Siberia, it estimates that 3% to 15% of the oil could be recovered. Underground riches Oil has been produced onshore in the South of England for decades. There are currently around a dozen oil production sites across the Weald, a region spanning Kent, Sussex, Surrey and Hampshire. Last year, a report for the government by the British Geological Survey estimated that the region may have shale oil resources in the range of 2.2-to-8.5 billion barrels, with a central estimate of 4.4 billion barrels of oil.\n\n    \n        \n            Horse Hill oil find \n            \n            \n                        \n            \n            \n                        \n            \n                                          5%-15% of the oil will be eventually recovered (estimated) \n                                    \n                                \n                                          2,500ft-3,000ft  depth at which the oil is thought to lie \n                                    \n                                \n                                          45 billion barrels extracted from the North Sea in 40 years \n                                    \n                            \n        \n        \n                    Getty Images\n            \n\nUKOG says that it drilled the deepest well in the region in the last 30 years and that the results  \"comprehensively change the understanding of the area's potential oil resources\". \"Based on what we've found here, we're looking at between 50 and 100 billion barrels of oil in place in the ground,\" says Mr Sanderson. \"We believe we can recover between 5% and 15% of the oil in the ground, which by 2030 could mean that we produce 10%-to-30% of the UK's oil demand from within the Weald area.\"'Significant'Work currently under way at Imperial College also suggests that there may be more oil in the region than previously thought. Professor Alastair Fraser has used some of the most sophisticated equipment in the world, based at the University of Utah in Salt Lake City, to analyse rock samples. His study of a third of the Weald came up with a resource of 13 billion barrels. \"So if I scaled that up, we are coming up to numbers of 40 billion barrels,\" he told the BBC. \"Now that's getting significant. That's a resource. That's what's there in the ground. We've still got to get it out.\"Fracking unnecessaryMost experts believe fracking, or hydraulic fracturing, will be needed to get commercial quantities of oil from the region. Concerns over fracking led to large-scale protests when Cuadrilla drilled at Balcombe, West Sussex, in 2013.But UKOG has consistently stated that it is not intending to use fracking, which involves pumping water, sand and chemicals into rocks at high pressure to liberate the oil and gas trapped within. It says that the oil at Horse Hill is held in rocks that are naturally fractured, which \"gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques\".The company says further drilling and well testing will be needed to prove these initial results.\n    ","pubdate":"Thu, 09 Apr 2015 11:42:46 +0530","newspaper":"BBC"},{"title":"LinkedIn buys learning firm for $1.5bn","content":"\n                        LinkedIn has about 300 million members who use the site's business networking tools\n                    \n                LinkedIn has bought US online learning business Lynda for $1.5bn (\u00a31.1bn), making it the professional networking site's biggest acquisition to date.LinkedIn is trying to boost the business content it offers to its 300 million users.Lynda, based in California, has made hundreds of videos that teach subscribers everything from coding to business skills.Subscribers pay $375 per year to access the tutorials.Although the company was founded nearly 20 years ago, it has expanded rapidly in the past two years, adding several languages to its video offerings and increasing outside investment.\"The mission of LinkedIn and the mission of lynda.com are highly aligned,\" said LinkedIn chief executive Jeff Weiner in a statement. \"Both companies seek to help professionals be better at what they do.\" Shares in LinkedIn rose more than 1.5% on the New York Stock Exchange after news of the acquisition was released.\n    ","pubdate":"Fri, 10 Apr 2015 03:30:35 +0530","newspaper":"BBC"},{"title":"Eurozone: Six days for Greek deal","content":"The eurozone has said only six working days are left for Greece to come up with a revised list of reforms to seal a deal on its next rescue bailout.Eurozone deputy finance ministers want an agreement on the \u20ac7.2bn loan in time for a Eurogroup meeting on 24 April.An EU official said: \"If you take into account weekends and Orthodox Easter, there are only six days left.\"It comes as Greece said it had met Thursday's deadline to repay \u20ac460m to the International Monetary Fund.A Greek government official told the Reuters news agency: \"The payment has been made.\"Financial helpOther, much larger, debt repayments are due within a few weeks.Analysis: Chris Morris, BBC News, AthensGreece has fulfilled its financial commitments today, but the situation is becoming rather desperate. There is precious little cash left in the national coffers, and if the government fails to procure further funding soon, it will be in trouble. There are salaries and pensions to pay, and more debt repayments looming. EU officials are also turning the screw by saying there are only six working days left in which to reach agreement on a new package of reforms to the Greek economy. Only if eurozone finance ministers are satisfied with the Greek plan when they meet later this month will more money be released. On the second day of his visit to Moscow, the Prime Minister, Alexis Tsipras, said he still hoped for an honourable compromise. But his radical left-wing government is ideologically opposed to many of the policies that its eurozone partners have endorsed - that's one of the reasons why it is proving so difficult to strike a deal. And Greece is feeling the squeeze.Greek prime minister Alexis Tsipras has said that Athens will not be able to service its debt without financial help from the European Union.Without new money it will struggle to renew \u20ac2.4bn in treasury bonds due to mature in the middle of April, or pay back another \u20ac0.8m to the IMF on 12 May.It also has to find the funds to pay wages and pensions.It is still trying to negotiate an easing of the reforms that are part of the conditions of the rescue bailout.Joint venturesGreek Finance Minister Yanis Varoufakis said on Thursday that the government would restart the privatisation of state-owned businesses.In January, the sell-off of businesses such as the power corporation, PPC, and Pireus port were put on ice. This came the week after Mr Tsipras' government came to power and was part of its pledge to rein in the austerity measures imposed by its creditors.But on Thursday, Mr Varoufakis said: \"What we are saying is the Greek state does not have the capacity to develop public assets. \"We want private-public joint ventures....we want to retain a stake for the state so as to have an income stream with which to finance pension funds.\"Last month, the Financial Times reported that the country was using reserves from its health service and state owned utilities to pay off debts.Mr Tsipras met Russian President Vladimir Putin this week in Moscow, but Mr Putin said he did not ask for financial aid from Russia during their talks.\n    ","pubdate":"Thu, 09 Apr 2015 19:24:36 +0530","newspaper":"BBC"},{"title":"US markets close up on energy shares","content":"(Close): US markets closed higher on Thursday, buoyed by energy shares which rose along with the oil price.The Dow Jones rose 56.22 to 17,958.73, while the S&P 500 gained 9.28 points to 2,091.18. And the tech-based Nasdaq added 23.74 points to 4,974.56.Brent crude rose 1.9% to $56.60 per barrel and the price of US oil edged up 0.22% to $50.53.General Electric shares rose nearly 3% on reports it was planning to sell its real estate holdings.US media, citing sources, said the firm was close to selling nearly $30bn (\u00a320bn) worth of investments in office buildings and other commercial property. Investors had fretted that GE's investments in real estate - made through its banking arm, GE Capital - were too risky. Anadarko Petroleum rose 3.2% and Marathon Oil shares climbed 2.9% on the stabilisation of the oil price.Metals business Alcoa kicked off the earnings season after the bell on Wednesday, giving a mixed earnings report which led to its shares falling 3.3%.Shares in game-maker Zynga plunged nearly 18% after the firm said it was bringing back founder Mark Pincus to run the company.\n    ","pubdate":"Fri, 10 Apr 2015 01:59:21 +0530","newspaper":"BBC"},{"title":"Scrutiny for discount stores' tie-up","content":"\n                        Poundland and 99p Stores have a combined network of 800 stores\n                    \n                Discount store Poundland's proposed purchase of rival 99p Stores for \u00a355m faces an in-depth investigation by competition authorities.The tie-up could worsen the position for shoppers in local areas owing to a cut in quality, fewer promotions and store closures, an initial probe found.Poundland wants to buy its closest rival in an agreed deal worth \u00a347.5m in cash and \u00a37.5m in shares.The Competition and Markets Authority (CMA) said this could hit 80 areas.These were where the companies, which have a combined network of 800 stores, currently overlap. There was a further 12 areas where they would be competitors in the near future.Following an initial investigation, the CMA said there was \"a realistic prospect of substantial lessening of competition\" in these areas.The authority said it would now move to a more in-depth investigation unless these concerns were addressed in a \"clear-cut manner\" by the companies.\n    ","pubdate":"Thu, 09 Apr 2015 17:15:30 +0530","newspaper":"BBC"},{"title":"Hummus recall due to listeria scare","content":"Sabra Dipping Co has recalled 30,000 cases of hummus due to possible contamination with listeria bacteria.The Food and Drug Administration announced the recall after inspectors discovered the bacteria during random testing at a Michigan retail store.Listeria is a food-borne organism which can cause fever and nausea in most cases, and people make full recoveries. But it can be fatal to people with weakened immune systems, and lead to miscarriages among pregnant women. The national recall applied to Sabras Classic Hummus brand of the blended chickpea snack - five of its 60 products - although no illnesses have so far been reported.The contamination was discovered on 30 March at a Kroger grocery store in Port Huron, Michigan.  This is the second food recall related to listeria in the US this week. On Thursday Blue Bell Creameries expanded an earlier recall after an additional three people in Texas were made ill by its products, according to the US Centers for Disease Control. Three people in Kansas have already died from the same outbreak.Sabra has not yet responded to a BBC request for comment.\n    ","pubdate":"Thu, 09 Apr 2015 22:54:49 +0530","newspaper":"BBC"},{"title":"UK interest rates kept at record low","content":"UK interest rates have been held at 0.5% for another month by the Bank of England.The decision by the Monetary Policy Committee comes more than six years after the record low was introduced.The half-dozen years of ultra-low interest rates have cut returns on savings, while mortgage borrowers have reaped the benefits of lower repayments.Rates have been at a record low for the entire Coalition government period.Expectations of a rise any time this year have been put on hold with Consumer Price Index (CPI) inflation at zero.'Fragile'David Kern, chief economist at the British Chambers of Commerce, said the decision was the right one, \"particularly at a time when inflation is down to zero and likely to fall into negative territory in the next few months\".He added: \"While official interest rates are very low, the fall in inflation over the past year has effectively raised interest rates in real terms, for both businesses and consumers. \"The UK recovery is on course, but remains fragile and should not be unsettled by an unnecessary interest rate rise. Business confidence will be strengthened if the MPC states clearly that official interest rates are likely to stay at their low levels for at least another 12 months.\"Last month, official ONS figures showed that the UK economy grew by 2.8% in 2014, the highest rate of growth since 2006.But other data released by the ONS on Thursday showed the UK trade deficit widened in February by more than expected, with the deficit in goods and services widening to \u00a32.86bn from \u00a31.54bn in January.Meanwhile, purchasing managers' index (PMI) surveys earlier this week showed accelerating growth in manufacturing and services sectors last month, but construction losing momentum.The MPC has indicated rates could be reduced further, should low inflation persist longer than expected. However, comments from most Bank policymakers suggest they still expect the next move in rates to be upwards.The Bank left the scale of its quantitative easing (QE) programme to boost the money supply unchanged at \u00a3375bn.It will release the minutes of the April meeting in just under two weeks' time.\n    ","pubdate":"Thu, 09 Apr 2015 16:52:14 +0530","newspaper":"BBC"},{"title":"HSBC faces French criminal tax probe","content":"HSBC says it has been placed under formal criminal investigation by French magistrates over alleged past tax-related offences at its Swiss private bank.It added that bail of \u20ac1bn ($1.075bn; \u00a3726m) has been imposed.HSBC said it believed the French magistrates' decision was \"without legal basis and the bail is unwarranted and excessive\".It added that it would appeal and \"defend itself vigorously\".The French claims relate to the conduct of HSBC's Swiss private bank in 2006 and 2007.HSBC has come under fire over what it knew about some clients' tax affairs.Details of some 30,000 accounts at HSBC's Geneva-based private bank were leaked to the French authorities by a whistleblower, Herve Falciani, in 2007.Information about 3,600 UK account holders were passed to HMRC.\n    ","pubdate":"Thu, 09 Apr 2015 19:06:37 +0530","newspaper":"BBC"},{"title":"Fraudsters hide behind fake invoices","content":"Computer malware hidden in fake invoices is being used to steal businesses' banking details, investigations have found.Fraudsters email the invoices on text or spreadsheet documents to firms, claiming to be from a regular supplier or a trusted organisation.Opening them triggers instructions which log the firm's financial data.Anti-fraud group Financial Fraud Action UK said there had been a surge in this type of trick in recent weeks.Protection techniquesThe fraud operates because victims unwittingly enable a macro - a big block of code - on their computer system when they think they are opening the invoice.It contains malicious software which logs online banking details and other financial information and sends them back to the fraudster.This information is then used to raid the firm's bank account.Experts have warned that con-artists are increasingly targeting businesses, rather than individuals. This is because they generally have larger amounts in their bank accounts and because individuals are becoming wiser to scams and phishing emails.Firms are being urged to keep an eye out for unexpected invoices and not to open macros on documents that staff do not trust. Accounts departments might also consider keeping a separate computer specifically for making online payments.Fraud prevention service Cifas recently reported that fraud hotspots were found in London, Leicester, Birmingham, Manchester, Leeds and Glasgow.Among individuals, men were 1.7 times more likely than women to have their identities stolen, it found. Young adults were being increasingly targeted, but the typical ID fraud victim is still a man aged 46.  \n    ","pubdate":"Thu, 09 Apr 2015 16:22:50 +0530","newspaper":"BBC"},{"title":"UK trade deficit widens in February","content":"\n                        A fall in oil exports was one factor behind the weaker trade figures\n                    \n                The UK trade deficit widened in February by more than expected, figures from the Office for National Statistics (ONS) show.The trade deficit in goods and services worsened to \u00a32.86bn from \u00a31.54bn in January, the ONS said.The deficit in goods was \u00a310.34bn, up from \u00a39.17bn in January, which was partly offset by a surplus of \u00a37.5bn on services. Goods exports were \u00a323.16bn, the lowest total since September 2010.That drop was largely thanks to weaker sales to the US. For the three months to the end of February, the ONS said exports to the European Union were at their lowest since records began in 1998, leaving the EU goods deficit at a record high of \u00a321.1bn, thanks particularly to a fall in oil exports. UK trade figures show the extent of import and export activity. The figures could add to concerns that the UK economy remains too dependent on consumer spending, which accounts for more than 70% of economic activity.Howard Archer, chief UK economist at IHS Global Insight, said: \"The trade data are undeniably disappointing and deal a significant blow to hopes that net trade helped UK GDP growth in the first quarter.\"However, he said trade was likely to improve in the coming months: \"While UK GDP growth will likely remain largely reliant on domestic demand, it is realistic to hope that exports will increasingly benefit as 2015 progresses from a significant pick-up in eurozone growth.\"David Kern, chief economist of the British Chambers of Commerce said: \"Unless we see firm action to improve our export performance, it is not clear how we will sustain strong growth in the long-term.\"The UK's trade deficit with the EU reached a record high in the last three months, and while the EU is our largest trading partner, it is vital that we capture more of the export market in the fast growing economies beyond Europe.\" \n    ","pubdate":"Thu, 09 Apr 2015 16:08:42 +0530","newspaper":"BBC"},{"title":"Bendy battery promises safety, speed","content":"\n                        The researchers say the battery is less of a fire hazard than lithium-ion batteries\n                    \n                Scientists have built a flexible aluminium battery which they say could be a cheap, fast-charging and safe alternative to current designs.The protoype consists of a soft pouch, containing aluminium for one electrode and a graphite foam for the other - all surrounded by a special liquid salt.It can recharge in less than a minute and is very safe and durable compared to lithium-ion batteries, but currently only delivers about half the voltage.The work appears in the journal Nature. The researchers say it has advantages over lithium-ion batteries, common in electronic devices like smartphones, as well as traditional alkaline batteries.Other scientists have said the work is exciting but still at a very early stage.\"We have developed a rechargeable aluminium battery that may replace existing storage devices, such as alkaline batteries, which are bad for the environment, and lithium-ion batteries, which occasionally burst into flames,\" said senior author Prof Hongjie Dai from Stanford University in California.\"Our new battery won't catch fire, even if you drill through it.\" In fact, a video made by the research team shows that the battery even continues to work for a short period after being punished in this way. We may not expect batteries to withstand such treatment routinely - but this demonstration certainly sets the new design apart from lithium-ion batteries, which have faced safety concerns including recent bans on air transport.Because it is lightweight and inexpensive, aluminium has attracted interest from battery engineers for many years, but it has never yielded a viable product.Key to the new discovery was the choice of material for the other, positive electrode (the cathode) to go with aluminium for the negative electrode (or anode). Graphite - a form of carbon in which the atoms form thin, flat sheets - turned out to deliver very good performance, while also being similarly lightweight, cheap and widely available.\n                        The cathode looks like a graphite sponge, pictured here using a microscope (white line is 1cm in the inset, 0.3mm in the main image)\n                    \n                To connect the two electrodes, the pouch is filled with liquid. \"The electrolyte is basically a salt that's liquid at room temperature, so it's very safe,\" said PhD student Ming Gong, another of the study's authors. This contrasts with the flammable electrolytes used in lithium-ion batteries. \nI think it's very exciting and it gives new pointers as to how one might get that type of chemistry to workProf Clare Grey, University of Cambridge\n'Early days'The battery performed particularly well when the team made the graphite cathode into a foam: a sponge-like pattern of tiny whiskers of the stuff, surrounding many empty pockets. This allows ions in the electrolyte solution very easy access to the graphite, helping the battery to work faster.When the battery discharges, aluminium dissolves at the anode, while aluminium-containing ions slide into the spaces between atomic graphite layers at the cathode. When it charges again, the reverse occurs, depositing metallic aluminium metal back on the anode.Crucially, this can take place through more than 7,500 complete cycles without the battery losing any capacity - several times more than most lithium-ion batteries, and hundreds of times better than any previous experimental designs that used aluminium.Similarly, the device's two-volt output is the best seen from an aluminium battery. It is also better than common 1.5-volt alkaline batteries, but lags behind the output of the lithium-ion batteries we use in smartphones and laptops.\n                        Lithium batteries are commonly used but have faced safety concerns\n                    \n                \"Our battery produces about half the voltage of a typical lithium battery,\" Prof Dai said. \"But improving the cathode material could eventually increase the voltage and energy density.\"Nonetheless, his team has high hopes for their design. Already, just by strapping two of the pouch batteries together and plugging them into an adaptor, they managed to charge up a smartphone in a minute. They also suggest it could be very useful in flexible displays, one of the proposals for the next generation of electronics.Prof Dai clearly believes its voltage is the battery's single main limitation: \"Our battery has everything else you'd dream that a battery should have: inexpensive electrodes, good safety, high-speed charging, flexibility and long cycle life.\"I see this as a new battery in its early days. It's quite exciting.\"Problem of scaleClare Grey, a materials chemist at the University of Cambridge, said the work was \"definitely a step-change\" for aluminium batteries.\"Aluminium batteries are very difficult technology and I think their method of storing the charges inside the graphite is rather clever,\" Prof Grey told BBC News.But she added that turning the prototype into a larger commercial product would be challenging. One problem is that the process of squeezing ions in between the graphite sheets can cause the material to expand and contract, which is \"bad news for the battery\", Prof Grey explained.\"And then also, the bigger the graphite sheets are, the further the ions have got to diffuse in - so the slower it gets. So part of reason it's got this high rate is that it's got very small platelets of graphite.\"She was impressed by the concept and the demonstration of the new design, however.\"I think it's very exciting and it gives new pointers as to how one might get that type of chemistry to work,\" Prof Grey said.Follow Jonathan on Twitter\n    ","pubdate":"Tue, 07 Apr 2015 22:13:14 +0530","newspaper":"BBC"},{"title":"Tesco wins \u00a31.50 milk compensation","content":"\n                        Every little helps: Tesco requested compensation for the milk\n                    \n                Supermarket giant Tesco has won \u00a31.50 compensation from a customer who spilt a bottle of milk in one of its stores.Shopper Cornelius Price, 40, threw the six-pint bottle in a temper, Llandrindod Wells Magistrates' Court heard.It was claimed he was verbally abusive and escorted off the premises.Admitting criminal damage, Price said he threw the milk towards the store manager saying \"catch it\" but it accidentally spilt.\"He was told to return the milk he was holding and leave the store and he threw it at the floor in temper,\" said Julie Sullivan, prosecuting.\"\u00a31.50 compensation is requested for the milk.\"Phil Sherrard, defending, said: \"This is minor criminal damage. He knows he should have been more careful with the milk.\"Price was told to pay \u00a31.50 compensation to Tesco, fined \u00a375, ordered to pay \u00a320 victim surcharge and \u00a385 costs. The money will be deducted from his benefits at \u00a310 a fortnight.\n    ","pubdate":"Sat, 04 Apr 2015 17:14:59 +0530","newspaper":"BBC"},{"title":"VIDEO: India computer boss jailed for fraud","content":"An Indian court has sentenced the former head of Satyam Computers and nine others to seven years in prison in one of the country's biggest ever corporate scandals.B Ramalinga Raju, who founded the software services giant, denied charges of conspiracy, cheating and forgery but admitted to accounting malpractices.The case has received a lot of publicity, and has been described as \"India's Enron\".Samira Hussain reports from Mumbai.\n      ","pubdate":"Thu, 09 Apr 2015 23:16:56 +0530","newspaper":"BBC"},{"title":"VIDEO: France's air traffic headache","content":"Hundreds of flights to and from France were cancelled on Wednesday as air traffic controllers launched a two-day strike over working conditions. The situation is expected to worsen on Thursday with around half of all flights cancelled. Theo Leggett reports.\n      ","pubdate":"Thu, 09 Apr 2015 12:53:51 +0530","newspaper":"BBC"},{"title":"VIDEO: Deadline day for Korea wage dispute","content":"It's the deadline day for North and South Korea to settle a row over wages in the Kaesong joint industrial zone.More than 50,000 North Korean citizens work in the North Korean town, but for South Korean companies. Their wages are paid in dollars to the North Korean government, which unilaterally increased these wage levels by 5%.This increased the wage bill for the South Korean companies and led to the current dispute.In 2013, a similar dispute over Kaesong saw the zone shut down for months. The BBC's Seoul correspondent, Stephen Evans, reports. \n    ","pubdate":"Fri, 10 Apr 2015 06:21:10 +0530","newspaper":"BBC"},{"title":"VIDEO: Co-operative Group returns to profit","content":"After being battered for several years with big losses and scandals which dented its ethical credentials, the Co-operative Group has returned to profit. It made \u00a3124m last year compared with a loss of \u00a3255m in 2013. In the past year, it has sold its pharmacy chain and farms raising \u00a3216m.Kamal Ahmed reports.\n      ","pubdate":"Thu, 09 Apr 2015 18:42:03 +0530","newspaper":"BBC"},{"title":"VIDEO: Hong Kong tourism numbers fall","content":"The number of tourists visiting Hong Kong from mainland China has fallen dramatically in recent weeks, reports Juliana Liu.A spate of protests by local shopkeepers against Chinese day traders has apparently put visitors off.The protestors believe these traders buy goods for re-sale back in China, and that this is putting up prices. But some Chinese shoppers now say they fear for their safety on the streets of Hong Kong.The Hong Kong government has promised to tackle the issue. \n    ","pubdate":"Thu, 09 Apr 2015 07:23:01 +0530","newspaper":"BBC"},{"title":"VIDEO: Designers flock to Shanghai fashion week","content":"Over the next few years much of the growth in the retail fashion market is expected to be driven by China.Its burgeoning middle class displays a seemingly insatiable appetite for luxury brands.But are Chinese consumers ignoring home-grown designer talent in favour of better-known westerners? John Sudworth has more from Shanghai fashion week.Watch more reports on Asia Business Report's website\n    ","pubdate":"Thu, 09 Apr 2015 05:52:35 +0530","newspaper":"BBC"},{"title":"VIDEO: 'Why I gave up my non-dom status'","content":" The BBC's Robert Peston speaks to Labour peer Lord Noon about his decision to give up his non-dom status - which allows some wealthy UK residents to limit the tax paid on earnings outside the country.Labour leader Ed Miliband has pledged to axe the rules - a move he said would raise \"hundreds of millions\" in tax.Lord Noon said he gave up non-dom status because he decided ''this is my country - my commercial life is here''.\n      ","pubdate":"Wed, 08 Apr 2015 23:57:24 +0530","newspaper":"BBC"},{"title":"VIDEO: Outrage in Nairobi over bank freeze","content":"Kenyan authorities have suspended the licences of 13 money transfer firms believed to be involved in funding al-Shabab.They have frozen the accounts of 86 individuals in response to the Garissa university attack last week.This will affect many Somalis who rely on remittances sent by relatives living abroad.The BBC's Milton Nkosi has been to Eastleigh in Nairobi which has a predominantly Somali community. \n    ","pubdate":"Thu, 09 Apr 2015 01:14:17 +0530","newspaper":"BBC"},{"title":"Kurdistan's budget battle with Baghdad","content":"\n                        A Kurdish Peshmerga fighter standing guard on the frontline, 25 miles (40km) south of Erbil\n                    \n                In Iraqi Kurdistan, the Kurds' battle with Islamic State has been complicated by the halving of global oil prices over the past year and a dispute with the central government in Baghdad that has seen the region's revenues dry up. Many in Kurdistan have not been paid for months.Commander Faridon Jwanroyi holds up his AK-47 rifle and fires off a few rounds, purely for my benefit. \"I wish there was Islamic State here, I could fire at them!\" he jokes. I would have asked for a more dramatic display, but the Peshmerga - the Kurdish fighting force here - are a bit short on weaponry. In fact they're a bit short on ammunition, too. And since December, they've even run out of money to pay their soldiers.\"Some haven't been paid in three months,\" he confides, when we met in late March. \"It's hard. They have to pay for their rent, for the children's clothes. But still, we fight on. We have belief.\" Weaker oil pricesBut with talk now of a combined Iraqi-Kurdish operation to liberate Iraq's second city, Mosul, it is an open question whether belief alone can bring victory. Indeed, a financial crisis has been brewing for several months. The halving of the global oil price - undercutting Kurdistan's main source of revenue - and the effect of the war have both had a deleterious effect, especially after fighting in August saw the black flags of Islamic State (IS) come just 19 miles (30km) from Erbil, the capital of the Kurdish autonomous region in northern Iraq.\"When IS is at the door, logically it's hard to convince foreign investors that Erbil's safe and nothing's wrong,\" says Govan Haji Akravi, chief executive of Fastnet, an internet systems provider for foreign companies in the city. \"Almost from one day to another, many of them packed up and left.\" \n                        Some Kurdish fighters have not been paid for three months, says their commander, Faridon Jwanroyi\n                    \n                \n                        Islamic State fighters came within 19 miles (30km) of the regional capital Erbil last summer\n                    \n                Displaced peopleThere's also been a major refugee crisis. Some one-and-a-half million displaced people have arrived in Kurdistan, fleeing the fighting in Syria and northern Iraq. That's a 30% increase in the population of the region, leading to huge extra stresses, I'm told, on local services like water and education. The refugees are mostly housed in improvised camps. One of the more bizarre is the Ankawa Mall - a half-built shopping centre on the outskirts of Erbil. Like many building projects, it was abandoned by its developer as the crisis hit last year. Now the raw concrete shell is occupied by some 4,000 Iraqi Christians from the Mosul region, sleeping in alcoves created for designer boutiques. A makeshift wickerwork crucifix hangs over the entrance. One of the refugees, Issa, charges about 30 cents for a haircut and shave in his makeshift barber's shop in the main atrium at the foot of two massive escalators that are now derailed and disintegrating. \"I'm cheaper than the Kurdish barbers here,\" he tells me. \"No one wants to look hairy like the guys from Islamic State, so they come to me!\" he laughs. But the smile quickly fades. Life in the shopping centre is miserable, he says: \"It's like a camp for chickens.\" He dreams of escaping to Europe.    \n                        About 1.5 million refugees have fled to Kurdistan\n                    \n                \n                        The population of the region has risen by 30%\n                    \n                \n                        \"No one wants to look hairy like the guys from Islamic State,\" says Issa, a barber in one of the refugee camps\n                    \n                Dispute with BaghdadPerhaps the biggest economic challenge for Kurdistan stems from its troubled relations with central government. For the last year, Baghdad has only fitfully been paying the regional government in Erbil its share of the national budget. Under the constitution, Baghdad requires the Kurdish Regional Government (KRG) to share its own oil production with the rest of the country. The Kurds should then be reimbursed with 17% of the total nationwide budget, which is currently set at $105bn (\u00a371bn).  Baghdad has accused Erbil of selling oil illegally, without its authority, and of failing to meet production quotas - allegations the Kurds deny. \"Baghdad knows very well we are selling oil - we have to pay people's salaries,\" says Dr Ali Sindi, the KRG's minister of planning. \"Meanwhile five million Iraqi citizens have been cut off from their rightful share of the nation's resources. This is a threat to the stability and the sustainability of the region,\" he says.The anger in Kurdistan is all the greater since Baghdad is continuing to pay salaries to government workers living under Islamic State. Even some refugees - civil servants displaced from Mosul - are, it is said, receiving their salaries from within the camps, whilst some of those caring for them haven't been paid since December.In the last three weeks, Baghdad has announced a breakthrough, saying it is renewing budget payments, although so far these amount to less than half what is owed for just March alone. Salaries for most workers, including soldiers, remain many months in arrears. The Iraqi Prime Minister, Haider Al-Abadi, has been quoted as blaming delays on a wider economic crisis in Baghdad. \n                        Under Iraq's constitution, the Kurds have to share their own oil output with the rest of the country\n                    \n                \n                        Kurdistan should be getting $105bn (\u00a371bn) from the central government in Baghdad\n                    \n                'We don't give up'\"If we don't reach a lasting solution, we will have to handle it through our own export of oil,\" says Dr Sindi. Kurdistan is this month said to be completing a new pipeline to its northern neighbour, Turkey. But despite the threats, few in Erbil believe Kurdistan has the political power to cut its own deals with the wider world.  In the meantime, some state employees are getting desperate. Civil servant Najad Amin and his wife Iqbal say they expect the last of their savings to run out in the next month. They've started growing vegetables in their back garden, to help feed the family. Do they blame the politicians in Baghdad or in Erbil, I ask?\"They're all to blame,\" they say. \"But we Kurds are used to depending on ourselves. We will find a way. We don't give up, absolutely.\" \n    ","pubdate":"Fri, 10 Apr 2015 04:45:26 +0530","newspaper":"BBC"},{"title":"Cybersecurity v human rights in Africa","content":"\n                        As internet usage rises in Africa, so does cybercrime\n                    \n                Think cybercrime and Africa, and most people in the developed world think of the notorious 419 email scam.This involves gangs extorting money from the likes of great aunt Mabel by promising her riches, if she'll just send some cash and\/or her bank details to a nice man in Nigeria. But cybercrime on the continent has moved far beyond this, with gangs embracing more sophisticated ways to use technology, such as malware and botnets, to get what they want.Internet usage is rising rapidly in Africa, and with it, cybercrime.This growth is making it easier than ever for criminals to operate. And it has created a new pool of potential victims lacking the knowledge and experience to be able to protect themselves effectively.VictimsSecurity expert Kaspersky says more than 49 million cyber-attacks took place on the continent in the first quarter of last year, with most occurring in Algeria, ahead of Egypt, South Africa and Kenya.But cybercrime is actually most pervasive in South Africa, with security firm Norton saying 70% of South Africans have fallen victim to cybercrime, compared with 50% globally.McAfee, another cybersecurity firm, reported that cybercrime cost South African companies more than $500m (\u00a3340m) last year.\n                        In South Africa 70% of people have been victims of cybercrime, says Norton\n                    \n                Baby stepsAfrica has long lacked a legal framework for tackling cybercrime.But in June 2014, the African Union (AU) approved a convention on cybersecurity and data protection that could see many countries enact personal protection laws for the first time.For it to be implemented, however, 15 of the 54 AU member states will need to ratify the text. As yet, not one country has done so, though there is optimism it will happen in the next three-to-five years. \"Cybersecurity is a growing concern for the nations of the African Union as more people come online,\" says Drew Mitnick, junior policy counsel at human rights organisation Access, which has called on member states to ratify the convention as soon as possible.\"It is critical for the countries to adopt cybersecurity policies that better protect users while respecting their privacy and other human rights.\" \n                        The African Union (AU) is made up of 54 member states - only Morocco doesn't belong\n                    \n                Access believes the AU should lead these efforts. The group has tracked proposed cyber and data protection laws in Kenya, Madagascar, Mauritania, Morocco, Tanzania, Tunisia and Uganda. In each case, the legislation would either fail to provide basic protection for user data, or allow the government to violate the rights of privacy, expression, and assembly, Access believes.But Beza Belayneh, managing director of the African Cyber Risk Institute (ACRI), says there are positives.\"[The convention] is a jumpstart for many countries who do not have any legal ground or appreciation to combat cybercrime,\" he says.\"It is a good guide to develop... computer or cybersecurity laws in a localised manner. It is the best way just to start the job. It has to start somewhere.\"It is apparent that many, if not all, African countries lack the capabilities to defend their ever-growing cyber infrastructure.\"Cybersecurity is finally receiving the attention it deserves, he added.Ducks in a rowAs a guide to helping African nations get their \"cyber ducks in order\", as Mr Belayneh puts it, the AU convention isn't too bad. Mr Mitnick says the convention contains a data protection provision covering control of personal data, with a large part of it mirroring the data protection framework and language developed by the European Union.He also commends the protection of human rights. \"The text requires governments to uphold the African Charter on Human and Peoples' Rights, along with other basic rights such as \"freedom of expression, the right to privacy, and the right to a fair hearing, among others,\" he says.\"The inclusion of privacy is most welcome, considering it is not explicitly found in the African Charter.\"\n                        The AU proposals include giving judges unlimited power to issue search and seizure warrants on data or computers - causing understandable concern about human rights\n                    \n                'Negative effects'However, there are real concerns about some of the provisions. The Centre for Intellectual Property and Information Technology Law at Strathmore University, Kenya, is against implementation in its current form.It believes the convention could limit freedom of expression and allow authorities to intercept private data too easily. Judges would be given unlimited power to issue search and seizure warrants on data or computers, for example.All this could have \"substantial negative effects on online economies and social cultures across Africa,\" it says.\n                        A woman uses a tablet at an internet cafe in Dakar, Senegal\n                    \n                Mr Belayneh agrees that the document gives too much power to judges and law enforcement arms of governments, and says it fails to take into account the roles of education and consultation in combating cybercrime.\"It was written by lawyers,\" he says. \"Cybersecurity and cybercrime need a multi-sectoral approach - cybersecurity educators, researchers, NGOs [non-governmental organisations], vendors, ethical hackers were supposed to be involved so they could present a multi-dimensional framework instead of legal paper.\"\n                        Does criminalising \"insulting language\" allow governments to clamp down on dissent?\n                    \n                Some of the convention's phrases seem to be in direct conflict with protecting human rights. For instance, while the convention limits the processing of personal data, it contains an exception for a task \"carried out in the public interest or in the exercise of official authority\" - a loophole ripe for abuse, some experts believe.Mr Mitnick says the convention could also pave the way for harsh criminal convictions. \"In one example, it limits the use of insulting language, which could describe a significant portion of the language on the internet and is likely to lead to subjective prosecutions,\" he says.Though the experts believe the convention is satisfactory as a first step, the negatives are certainly clear for all to see. \n    ","pubdate":"Fri, 10 Apr 2015 04:48:55 +0530","newspaper":"BBC"},{"title":"Australian firms take to four wheels","content":"Hairdresser Ep Weatherhead has a business that is going places.The owner of the first mobile barber's shop in Australia, from Tuesdays to Saturdays she parks her converted van at different locations across Sydney's beachside suburb of Maroubra.Together with one part-time member of staff, she cuts the hair of 40 men and boys on an average day.The business - called The Barber Van - was set up in 2011 with 60,000 Australian dollars ($46,000; \u00a331,000) of investment. Ms Weatherhead, 46, says she now has up to 1,000 regular customers paying 25 Australian dollars for a haircut.She maintains a timetable on her website, so that users can check where to find her on a particular morning or afternoon. And she has all the permits she needs from the local authority to allow her to park and run her business.\n                        Ep Weatherhead (left) now has up to 1,000 regular customers coming for haircuts\n                    \n                When Ms Weatherhead launched the mobile operation, she had been running a traditional bricks and mortar hairdresser salon for a number of years, but as the van quickly grew in popularity she closed the store to focus her efforts.The Barber Van is part of a growing trend of Australian small firms hitting the road.Led by the food sector, but now extending to other industries, more and more businesses are embracing the flexibility and significantly lower overheads that come from running their business on four wheels.Mobile back rubsAndrew Ward, founder of Sydney-based massage business 3 Minute Angels, says that launching a mobile massage centre is the next logical step for his firm.Set up in 2002, his trained masseurs are currently hired by businesses to provide massages in the workplace, or at events such as conferences and trade shows.\n                        Andrew Ward is hoping that members of the public will help fund his planned Divine Truck\n                    \n                Mr Ward also says that running a massage van could enable people to enjoy a neck and back rub while enjoying a better view.\"I thought if you could look out over the beach or mountains whilst getting a massage - that would be an awesome personal experience,\" he says.To help fund the van, which he plans to call The Divine Truck, he has launched a crowdfunding campaign, hoping to raise money from members of the people in exchange for them being the first to be able to use the service.\n                        Andrew Ward wants his customers to be able to have a massage while looking at a good view\n                    \n                He aims to raise 10,000 Australian dollars, to which he will need to add up to 15,000 Australian dollars.\"Even at maximum cost of 25,000 Australian dollars the truck would be a business premises that is less than half the bond on a prime retail lease in Sydney that I was previously looking at,\" he says.Mr Ward already has a hi-tech design for his van drawn up, including transparent plastic walls.\"I thought when people see other people getting a massage it will make them want one too,\" he says.\"Of course we have internal blinds, so if a customer doesn't want to look out, or have people look in, we can make any of the three transparent walls private.\"Shark on wheelsPaul Sharp's travelling business - a museum called Shark in a Bus - is a labour of love.Containing a varied collection of marine artefacts, the star of the show is a 5m-long (16ft) preserved great white shark called Frankie.\n                        The Shark in a Bus museum tours Australia in a converted 1957 Leyland bus\n                    \n                \n                        But customers can be thin on the ground in Australia's outback\n                    \n                \"It's my family collection,\" says Mr Sharp.\"Dad started collecting in the 1960s, and the exhibition has been displayed at various places. Before my father died he passed on the bulk of the collection to me. So I decided to re-interpret the display as a Shark in a Bus - a transportable museum.\"Mr Sharp, who tours the museum around Australia, charges a five Australian dollar entry fee.\"Business is extremely variable,\" he says. \"I have had anywhere between six to over 1,000 people through in a day. Last year... we had 15,000 people view the collection.\"Mobile laundryThe voluntary sector in Australia has also caught the mobile bug, such as Orange Sky Laundry.Launched in October of last year, the mobile laundry van provides free clothes washing for homeless people in Brisbane.\n                        Nicholas Marchesi (left) and Lucas Patchett allow homeless people to wash their clothes for free\n                    \n                Founders and friends Nicholas Marchesi and Lucas Patchett have their own generator and arrange to source a water supply for free from either local businesses or a council.Today, they have a team of 130 volunteers and average anywhere from 10 to 20 wash cycles per day across their two vans, each of which has a pair of washing machines and dryers.Growth plansBack at Ms Weatherhead's mobile hair salon, she cannot afford to secure water supplies for her van.\"We only do dry cuts,\" she explains. \"If you had to wash hair you would require a clean water supply, waste water supply and a whole lot of other stuff. I have priced it and it would be prohibitive.\" Yet despite the restrictions on what haircuts she can offer, she has plans to expand across Australia.In the meantime she has secured a regular contract with the Royal Australian Navy to drive her van to three naval bases.\"This represents the growth I have been waiting for,\" she says.\n    ","pubdate":"Thu, 09 Apr 2015 04:30:58 +0530","newspaper":"BBC"},{"title":"Q&A: What is a non-dom?","content":"\n                        Non-dom status has been a source of debate for some time\n                    \n                The non-domicile rule, that allows some UK residents to limit the tax paid on earnings outside the country, has been a regular topic of debate in recent years.Various changes have been made to the way people face charges in the UK if they wish to keep their non-dom status.Still, the tax status remains, and there is an element of mystery about it - with the number of non-doms in the UK a matter of informed guesswork.Now the Labour Party has vowed to scrap non-dom status, with some caveats to protect temporary workers, if it wins power in the general election.What is a non-dom?A non-dom is a UK resident whose permanent home, or domicile, is outside of the UK. A domicile is usually the country his or her father considered his permanent home when he or she was born, or it may be the place overseas where somebody has moved to with no intention of returning.That means somebody can be born, be educated and work in the UK but still hold non-dom status. It also means that some may inherit their non-dom status from their parents.For proof to the tax authority, they have to provide evidence about their background, lifestyle and future intentions, such as where they own property or intend to be buried.Key to non-dom tax status is that an individual must pay UK tax on UK earnings, but need not pay UK tax on foreign income or gains unless they bring that income back to the UK.Has this system been around for a while?Yes, for more than 200 years.The FT says it was originally introduced in 1799 and allowed people with foreign property to shelter it from wartime taxes.It became a regular point of debate during and after the financial crisis when the legal tax affairs of wealthy residents was put under the spotlight.\n\n\t\t\t\n\t\t\n\t\t\n\t\t\tPolicy guide: Taxation\n\t\t\n\n\t\t\n\t\t\tThis election issue includes income tax and national insurance levies and business taxes.\t\t\n\n\n\t\t\t\n\t\n\tHow many non-doms are there?This is where things become a little more opaque.People do not necessarily have to indicate their domicile status on their UK tax return. The UK tax authority believes there was a general trend of rising numbers to 2008 when charges came in, but a fall since.There were an estimated 114,800 non-doms in 2012-13, according to the latest figures available.Non-doms have included some super-wealthy household names, but also include some foreign doctors and nurses working for the NHS, as well as some students.What tax charges do non-doms face?Non-doms who have lived in the UK for seven of the last nine years must pay \u00a330,000 each year to maintain their tax status.Those living in the UK for 12 of the last 14 years must pay \u00a350,000 to do so.Non-doms living in the UK for 17 of the last 20 years must pay \u00a390,000 to keep their non-dom status.About 5,000 people pay these charges, raising an estimated \u00a3300m this year for the Treasury.Some other countries have similar regimes, but the seven-year period of grace is unusual internationally.What would scrapping non-dom status mean?There would still be a period of time where temporary workers and students can legally maintain their domicile overseas.However, the big questions raised by effectively scrapping non-dom status include:Whether there will be a flight of non-doms who paid an estimated \u00a36.2bn in UK tax in 2012-13\nHow much can be raised in UK taxes if former non-doms decide to stay?\nWill that tax income outstrip the amount raised from non-dom charges? Labour says it would do so by several hundred million pounds but this is very difficult to quantify\nWhat will be the effect on jobs and business creation in the UK?\nWhether this will create a more even playing field among entrepreneurs irrespective of their domicile\nThe debate is likely to continue whichever party wins the election.","pubdate":"Wed, 08 Apr 2015 18:42:52 +0530","newspaper":"BBC"},{"title":"Funding an art renaissance in the US","content":"US art museums took a knock in the wake of the 2008 financial crisis and attendances continue to fall. But some major investments and new approaches to fundraising have helped them rebound. On an unseasonably warm day in January, as the price of oil dropped by 50%, a group of Texans gathered at a swanky New York restaurant to present a multi-million dollar plan for the redevelopment of the Museum of Fine Arts, Houston.There were a number of jokes about the impact of oil prices on the portion sizes offered by the restaurant - two salad leaves and a pea, however artfully placed on a teaspoon of green mousse and a coin sized piece of fish, do not make a meal in Texas.But there was no joking about the importance of art to Houston's economy, which is fuelled by oil and energy and has been rocked by the plunge in prices.The city hopes the new campus, with its world class collections, international art school and conservation centre, will help attract the type of workers it needs to diversify and sustain future growth.\"Building a green park of two acres in a downtown city - that's meaningless today,\" says Texan pipeline tycoon Rich Kinder, one of the richest men in America with a personal net worth estimated at $11.9bn (\u00a38bn).\"This is a massive extension of the south west's largest museum of fine arts, but it's also much more than that. It's transformational for Houston.\" US Art FundingIndividual philanthropy remains the strongest source of support for art museums in the US. In 2013 museums were given six times as many works of art as they purchased.Endowments, trusts and foundations provide 28% of art museum funding.  The government funds 6% and corporate giving accounts for just 4%.Visitors spend an average of $8 when they go to a museum.Each visitor costs the museum an average of $53 in terms of investment.Figures from the Association of Art Museum DirectorsAlmost all the $350m cost of the project has been met by wealthy individuals, including Mr Kinder, who is chairman of the museum's board of trustees. He donated $50m. Due to be completed by 2019, the museum campus is expected to generate $334m in economic activity over 20 years. That's in line with a new report from the National Endowment for the Arts (NEA), a government grant-making agency, which says arts and culture contribute almost $700bn to the US economy, outperforming the construction industry. The sector also employs some 4.7 million workers, and for every 100 jobs created by demand for the arts, 62 jobs are created in other areas.On the downside, the report also shows that museum, gallery and theatre attendances are continuing to fall. According to the NEA, the vast majority of Americans \"consume\" the arts online and only 21% actually visit art museums.  \"But we do ourselves a disservice when we look at only one measure of engagement with the arts,\" says NEA chairman Jane Chu. \"Our reports show that the arts are a formidable presence in America and the ways in which people participate are expanding.\"\n                        Baltimore Museum of Art uses special events to encourage children to visit\n                    \n                She says technology provides an early entry point to the arts which may peak interest in live performances and trips to museums. But institutions need to find new ways to engage with audiences and become more relevant to their communities, she adds.\"Museums were founded years ago on the idea that they were treasure troves or libraries of objects. Today they have to be destinations for people to have experiences that they can create and be a part of,\" says Doreen Bolger, director of the Baltimore Museum of Art in Maryland.The museum has an international reputation and holds the largest collection of works by Henri Matisse. It is supported by a $100m endowment that enables it to offer art making days for local families, outreach programs for city schools, and interactive mobile phone tours for visitors. In 2006 it introduced free admission.'Financially stable'\"We were of course affected by the 2008 downturn because all of our diverse [revenue] sources were affected. But our trustees and donors have been truly astounding. \"Our funding from them was sustained throughout the downturn and many people increased their giving when the museum went free. They felt it was important to provide that for the community,\" says Ms Bolger.Endowments remain the most significant source of museum revenue, but new figures from the Association of Art Museum Directors (AAMD) show that funding has become more diversified.Admission fees play a relatively small part, but memberships, foundations and trusts, store purchases and local government funding make important contributions. Corporate donations have fallen.\"Museum attendance dropped off in 2008 and some museums underwent some staffing cuts, cut back a little on programming. They did what they needed to do to weather the storm,\" says AAMD director Christine Anagnos.\"But they're [now] financially stable because they receive their money from a variety of sources,\" she says.\"They're not just relying on one source, whether it's endowment income or earned revenue or corporate memberships. They are really diversified in their revenue streams.\"Oil dependenceIronically, Houston was sheltered from the worst effects of the financial crisis because of its dependence of oil. But today that dependence is making it vulnerable.\n                        Baltimore Museum of Art says community relevance is vital for survival.\n                    \n                \"People will tell you that Houston is not nearly as wedded to energy as it was a generation ago,\" says Rich Kinder.\"We have the largest medical centre in the world, a tremendous port and a number of universities. But [the falling price of oil] still has a definite impact and will have an impact on philanthropic giving.\"But Gary Tinterow, the director of Houston's Museum of Fine Arts, says he doesn't expect any dramatic decline in donations, and philanthropy remains a better bet than public funding.\"There is something very satisfying and secure when you have government support. You know what your budget is each year and you move forward. But as we've seen with the recent downturn, sometimes massive cuts are necessary in order to fill the mandates from the government.\"The Obama administration has proposed a $2m increase to funding for the NEA next year, bringing the total to $148m. The advocacy group Americans for the Arts says that won't meet the needs of the 95,000 non-profit arts organisations and local agencies the NEA helps support.But the good news is that donations to the arts were up by almost 8% in 2013, according to the latest figures from Indiana University, which tracks charitable giving. The total, $16.66bn, is now touching pre-recession levels.Even if Americans don't go to museums as much as they used to, they clearly think the arts are important enough to support.\n    ","pubdate":"Wed, 08 Apr 2015 05:05:22 +0530","newspaper":"BBC"},{"title":"Latin America's wake-up call on global school tests","content":"\n                        Chile is the top-performing Latin American country in both OECD and Unesco school tests\n                    \n                There have been concerns that the quality of education has been stagnant in too many countries across Latin America.This is a major problem in a globalised economy, where rewards go to the most highly-skilled and most productive workers, and where there is more importance than ever attached to high-quality education.But how do we measure the quality of education in Latin America against global standards if there is an unwillingness to take part in international tests? How can would-be reformers compare results across international borders?Among the most widely recognised international comparisons are the Pisa tests - the Programme for International Student Assessment - conducted every three years by the Organisation for Economic Cooperation and Development (OECD).In Latin America, the regional rankings of these international tests taken by 15 year olds in maths, reading and science, are headed by diminutive Chile, ahead of economic powerhouses like Brazil and Mexico.But most countries remain off the ranking completely.Missing the testsPart of the reluctance for many Latin American countries might be a fear of being compared with world leaders in education like Finland and Japan. Even Chile, the highest ranking country in the region, is considerably below the global average for these tests, with the average in the Pisa tests being countries such as the UK and France.Latin America: Countries in Pisa testsChile\n51st (out of 65 countries and regional education systems)\nMexico\n53rd\nUruguay\n55th\nCosta Rica\n56th\nBrazil\n58th\nArgentina\n59th\nColombia\n62nd\nPeru\n65th\nSource: OECD\n\nBut the Pisa exam has also generated significant controversy over its methodology and design, leading to concerns - common to many standardised tests - that it does not adequately measure the quality of instruction. Or that it does not truly capture the diversity of contexts facing such different school systems.These concerns are reflected in the fact that fewer than half of Latin American countries currently participate.But there are other tests that can provide a global scale for measurement. Unesco's Third Regional Comparative and Explanatory Study (TERCE) covers a much larger part of the region. This has evaluated 15 countries, including Brazil, Mexico, Argentina, and Colombia, as well as smaller participants such as Costa Rica, Honduras, Guatemala, the Dominican Republic and Uruguay. \n                        Unesco's tests measure pupils in countries such as Guatemala against international standards\n                    \n                The assessment also has a broader range than Pisa, looking at children at different stages of development (at the ages of eight and 11), and evaluating the context of each school.What TERCE found was reason for cautious optimism - but also renewed effort. Its comparison between its last evaluation in 2006 and today showed a modest but broad improvement in test results across the majority of Latin American countries. These rankings were also headed by Chile, followed by Costa Rica and Uruguay. But they also allowed a comparison with countries missing from the Pisa tests, such as Guatemala and Paraguay, which appear in the lower half of the TERCE test scores.Falling behindBut despite - or even because of - the surrounding controversy, these tests have already served an important purpose. Whatever their flaws, they have brought attention to the fact that the massive expansion of access to education in the region, a major victory in itself, isn't sufficient without an equal improvement in quality. \n                        Uphill struggle: Peru is at the bottom of the Pisa rankings, but midway on the Unesco scale\n                    \n                No longer can policymakers ignore the reality that even Latin America's best performing countries, much less its average ones, are far behind the developed world, and far behind where they need to be to compete in the global economy. A student from Honduras or Paraguay is competing for jobs with graduates in Singapore and South Korea. Latin America: Unesco tests for 11 year olds in literacy, mathematics and scienceChile\n557 pts\nCosta Rica\n546\nUruguay\n532\nMexico\n529\nColombia\n526\nBrazil\n524\nArgentina\n509\nPeru\n505\nEcuador\n491\nGuatemala\n489\nPanama\n482\nHonduras\n479\nNicaragua\n479\nParaguay\n469\nDominican Republic\n456\nSource: Unesco TERCE tests\n\nAs a result, demand for better education is swelling from the bottom up, as individual students, parents, and civil society groups are gaining greater awareness of how their schools stack up to international standards.Not about spendingThe international comparisons have also imparted a necessary lesson - that increased investment alone cannot solve education problems. Latin America's education systems spend nearly as much as the OECD average, with some spending as much as 6% of GDP, while producing lacklustre results.More funding is in some cases necessary, but without a rigorous and targeted approach to ensure that it is spent well, the extra money may just be wasted.That's why a new conversation is needed in Latin America, one that focuses on innovative ways to improve quality - and quickly.A wave of new participants - social entrepreneurs, private businesses, investment funds, foundations, and advocacy groups - are taking the lead in introducing new pedagogies, new technologies, and structural reforms in their education systems.And projects like Pisa and TERCE are helping to put these issues front and centre on the public policy agenda.The next generation of students has little time to lose. Gabriel Sanchez Zinny is author of Educaci\u00f3n 3.0: The Struggle for Talent in Latin America\n    ","pubdate":"Wed, 08 Apr 2015 05:02:37 +0530","newspaper":"BBC"},{"title":"Technology to take fireworks nuclear","content":"\n                        Big bang theory: Modern firework displays whether for New Year in New York, or Chinese New Year in Beijing, rely heavily on technology to make them bigger and better than ever\n                    \n                Every year, on the evening before New Year's Eve, thousands of people in New York City amble through the neon glow of Times Square. Most are tourists looking up in awe at the LED screens that dominate the landscape.  Nobody notices the tiny dark figure 350 feet above the pavement clinging to the side of the century old Times Building, home of the New Year's Eve Ball.Jeff Rolfe is a cross between Spider Man and Guy Fawkes, gingerly making his way up and down the side of the building with a bitter winter wind attacking him from every angle as he dangles. In his arms are pre-configured wooden racks full of small explosives. He has to install enough to put smiles on a billion TV viewers worldwide. Thankfully these are the finishing touches to a display of fireworks that in just over 24 hours will hopefully also elicit oohs and aahs from a million New Years Eve revellers in the Square. \n                        Jeff Rolfe on top of One Times Square\n                    \n                Short but sweetFor almost everyone the thrill of fireworks is an experience that can be traced back to childhood. Yet if you were able to time travel backwards two, three or four decades into history and stand once again in front of your local town display, you would likely be  disappointed. Mr Rolfe, from Fireworks By Santore, says few people realise that fountains, rockets, wheels and bursts have all taken a huge step forward thanks to technology.\"The shows used to be much much longer, over an hour in duration. But attention spans are shorter now,\" he says.\"Today, 30 minutes is considered a very long display. Technicians used to manually shoot big shells from steel tube mortars that would need to cool down before the next ones could be fired. It was more relaxed. Now we shoot multiple smaller shells per second from several locations, remotely.\"\n                        Fireworks are something most of us learn to love as children. This group is celebrating July 4th in 1940 with sparklers\n                    \n                \n                        The fireworks at the closing ceremony of the Los Angeles Olympics in 1984 might leave modern audiences slightly underwhelmed\n                    \n                Songs were played in their entirety rather than the mixed snippets that are favoured today. And any notion of syncing the beats to the bursts was usually a happy accident rather than anything pre-planned.New software and hardware means shells and cannons can be fired remotely up to two miles away and timed to within 1\/100th of a second. And in a world full of giant LEDs, laser beams and light shows, fireworks are frequently asked to become team players, which is why \"syncing\" is one of the most sought after skills in the industry.\"Using computer software, we mark where we want the highs and lows of the display to be in relation to the music,\" says Mr Rolfe. \"And then we backtrack all the timings, and create digital cues alongside the music track for the firing sequence in an FSK (Frequency Shift Keying) file. When you hear it, it sounds like the noise made by an old modem.\"\n                        The fireworks business has always been dangerous - these men are making fireworks by hand for King George V's coronation celebrations in 1911\n                    \n                \n                        Health and safety has come a long way since 1929, when these women were pictured in France\n                    \n                Like clockworkBig events, especially those on live TV are usually produced using \"timecode\".  A highly accurate digital clock signal is generated from a central source and every person, computer, device and camera at the event uses it as their only time reference. Music tracks, lighting and fireworks can be pre-programmed digitally to flow together perfectly.But it can take months of work by specialist designers to produce a dazzling display. One thing on their side is that the chemical compounds have become more sophisticated.  The colours are brighter, the variety of effects has greatly increased and there is far less residual smoke that once might have blocked subsequent bursts.\n                        Fireworks have become ubiquitous at sporting events - here during the opening ceremony for the 2015 Cricket World Cup in New Zealand\n                    \n                Fireworks today are so chemically precise and stable, a horizontal rocket with a label that says 60 feet will shoot off a building straight out exactly 60 feet, and predictably reach its peak explosion right at the end of that distance without letting gravity pull it down prematurely. Of course timecode and technology are not always perfect, and when things go wrong the motto invented for the digital age - \"all or nothing\" definitely applies. Perhaps the most famous incident was the 2012 Big Bay Boom display in San Diego, which saw about 18 minutes worth of fireworks explode in just 15 seconds thanks to a timecode issue. It could have been the most expensive fireworks display ever (on a per second basis). But firework displays that often cost cities as much as a teacher's annual salary have an upside - successful or not.Officials in San Diego worked out their firework display fiasco still generated about $10m in revenue from local restaurants, tourism, boat hires, and hotel stays. And accidents don't happen as much these days. The biggest problem with older displays was explosions due to sparks from other fireworks in the display. Now the devices are smaller and more spread out so it doesn't happen as often.\n                        Accidents at modern events are now rare - this traditional display however is created by throwing molten metal against a cold wall in Nuanquan, Hebei province, China to celebrate the Spring Festival\n                    \n                Corporate communicationsCorporate requests often drive the direction of the fireworks industry. Companies are increasingly asking for daytime fireworks which have been around for years, but now look much better because once again there are brighter colours and cleverer chemical combinations which make them more dramatic against a bright blue backdrop.\n                        Flogos are created using a portable bubble container, and allow you to create airborne company logos\n                    \n                Despite the many developments one request that is harder than you'd think is to reproduce corporate logos. Mr Rolfe acknowledges that static logos are easy to do. But firing words and exact shapes from the ground into the sky with 100% accuracy for the entire audience to read from different vantage points is an art form that's in its infancy. \"We are just starting to work with it. The new firing systems allow us to shoot from the same location over and over again to basically form line art. It's not a cheap effect. It takes a bit of trial and error to get the sizing right but when it's done right it's pretty incredible.\"Other companies offer a variation of ways to reproduce airborne corporate designs closer to the ground, such as Flogos, which are made in a portable bubble container and sent off into the sky at a rapid pace.\n                        The view from the top: This is the angle the public doesn't see\n                    \n                \n                        The preparations go on, far above the heads of revellers\n                    \n                But Mr Rolfe believes the future of fireworks is solid. Despite the rising costs of insurance, security, transportation and storage he thinks that beautiful explosions in the sky will never be trumped by holograms or video screens or anything else.Everyone over five loves sparks and sparkle.\n    ","pubdate":"Tue, 07 Apr 2015 04:32:24 +0530","newspaper":"BBC"},{"title":"Brazil\u2019s burger king likes his companies lean","content":"\n                        Jorge Paulo Lemann is head of 3G Capital\n                    \n                Brazil's richest man Jorge Paulo Lemann does not eat burgers. A former tennis player, who competed in Wimbledon in the 1960s, he is an advocate of healthy eating.But when it comes to business it appears he has a rather different appetite, one that stretches to ready meals and processed foods.His company 3G Capital - which already owned Heinz and Burger King - bought the US food giant Kraft last month, in partnership with billionaire investor Warren Buffett.\nTheir firms have discipline, high productivity and low waste - qualities many companies in Brazil are still lacking today\nThe products may have a tendency to stretch your waistline, but Lemann, who was born in Rio de Janeiro, is obsessed with lean companies.In late 2008, barely months after acquiring Anheuser-Busch, makers of Budweiser beer, Lemann and his associates overhauled the company, shedding 1,400 jobs, some 6% of its workforce.In one year, 3G Capital found $10bn in savings and divestments.Executives lost all sorts of privileges: walls were torn down and personal offices were joined together in open plan spaces. The number of company Blackberries issued to employees fell from 1,200 to 720.Freebies like free baseball tickets, free beer or first-class tickets were cut. Private jets belonging to Anheuser-Busch were sold.\"They take cost-cutting very seriously,\" says Cristiane Correa, a journalist and author of Dream Big, a book on the rise of Lemann and his two fellow countrymen and partners Marcel Telles and Beto Sicupira.\"Some people get really scared by that. Afterwards, of course, the company grows and they end up hiring again, but at start it is ugly.\"Desire to get richCost-cutting is one of 3G Capital's obsessions. But there are others too, such as meritocracy and investing in the right people.Some of 3G Capital's top executives that today are in charge of leading global brands have been with Lemann since the early days of Garantia - the bank he founded in the 1970s.Back then, the magnate had already coined the term PSD to describes his ideal employees: \"Poor, Smart, with a Deep Desire to Get Rich.\" Marcel Telles, one of 3G's three strongmen and with a net fortune estimated upwards of $13bn, started out his career as a sort of office boy in Garantia.One trait that is conspicuously absent in 3G Capital's business model is innovation.\n                        3G Capital owns Burger King\n                    \n                The company makes its fortunes by finding optimum ways of producing something simple - like a burger or ketchup - and repeating that formula on a larger scale, without requiring much creativity.\"This model is well-suited to the food industry, where you can make a lot of money if you are disciplined enough to avoid waste when producing,\" says Leni Hidalgo, a professor at Brazil's Insper business school, who worked in one of Lemann, Telles and Sicupira's businesses in the 1990s.Last month's Heinz-Kraft merger turned Lemann into a food tycoon, now leading the third largest food and beverage conglomerate in the US.Brazil - from hype to slowdown:In the 2000s:Massive offshore oil discovered20 million people lifted from povertyAchieved investment grade rating in credit agenciesWon bids to host Olympics and World CupNow:Austerity measures and spending cutsLarge scale Petrobras corruption scandal0.1% GDP growth in 2014Rising inflation (7.7% compared with a target of 4.5%) and unemployment (5.9% up from 4.8% in January 2014)Currency close to its lowest point in 12 years - $1 is worth almost twice as much as five years agoIt has been almost a decade since the business world saw the rise of another ambitious Brazilian - mining tycoon Eike Batista.For much of the past 10 years, Batista - a flashy maverick with an extravagant lifestyle - was the world's seventh richest billionaire, and seen by many as the international face of Brazil's then vibrant economic growth on the world stage.Much of Batista's wealth was made during a cycle of high commodity prices. But once that cycle came to an end, a mixture of economic downturn and bad decisions meant he lost much of his lustre and fortune.Discreet lifestyleIn a way, Batista's story is a chronicle of Brazil's journey from hype to economic downturn, in which the fortunes of South America's largest country roughly followed the same timescale.Now the subject of a series of criminal charges his fall from grace was absolute, while Lemann claimed the post of Brazil's richest person.Many commentators see him as the \"anti-Batista\" - a prudent manager with a low profile and discreet lifestyle who is not given to grandiose statements.\n                        The maker of Budweiser is also owned by 3G Capital\n                    \n                But just as with Batista in the 2000s, Lemann now seems like an appropriate choice to be the \"face\" of Brazil's tougher economic reality in 2015.His philosophy of cost-cutting and efficiency savings is currently in vogue in his home country - as the government turns to austerity measures in a bid to put the Brics nation back on a path of sustainable growth.But Prof Hidalgo says 3G Capital is, in many ways, the opposite of the typical Brazilian industry. Their firms have discipline, high productivity and low waste - qualities many companies in Brazil are still lacking today.\"Brazilian businesses have much to learn from them,\" says the professor.\n                        Eike Batista has lost much of his fortune\n                    \n                Brazil's government must surely be hoping that the country's fortunes also mirror one of its most successful sons.\n    ","pubdate":"Tue, 07 Apr 2015 05:24:31 +0530","newspaper":"BBC"},{"title":"How much? The crazy cost of children's parties","content":"Installing a temporary ice rink in your home and inviting replicas of the Disney on Ice team to perform, may seem a bit over-the-top for a child's fifth birthday party.But this is exactly what one client asked luxury events firm Quintessentially Events & Weddings to organise.\nIf you don't do a big party you're not a bad parentProf Bill Doherty, Birthdays Without Pressure\nFor another child's winter birthday, the firm created \"a bringing the outside in\" themed party, which involved installing an indoor lawn complete with trees, flowers, swings and slides.The price tag for events like this can stretch to a dizzying \u00a3100,000, says event manger Chloe Astin.After all, cocktails and canap\u00e9s for the adults, and party bags including tiny Tiffany necklaces for the kids, don't come cheap.Party inflationBut I can't be alone among parents feeling that this pressure to throw ever-more-fancy parties for our kids and their increasingly hard-to-impress friends is getting out of control.My son is just five but has already been to actress-led drama parties; a pizza making session in a restaurant kitchen; a T-shirt printing workshop; and even a theme park hotel sleepover. Will there be no end to this party inflation?\n                        One parent tried to get the Disney on Ice team to perform for their child's fifth birthday\n                    \n                Quintessentially says it has seen an undoubted increase in extravagant requests. \"What kids are watching and digesting is giving them higher expectations,\" says Ms Astin.Alice in WonderlandOften the children involved are too young to have any expectations at all.Steven Duggan, founder of his eponymous events firm, which counts pop stars Sir Elton John and Leona Lewis as clients, says he has seen increased demand for parties aimed at children aged three and under.He recently organised a \u00a370,000 event with a joint Peter Pan and Alice in Wonderland theme, including fairground rides and entertainers. \n                        Guests were invited to \"walk the plank\" at a party with Peter Pan and Alice in Wonderland themes\n                    \n                \n                        The joint-themed party to celebrate the birthday of one-year-old twins cost \u00a370,000\n                    \n                \n                        The price included props such as these colourful giant mushrooms\n                    \n                All this was to celebrate the first birthday of twins - an occasion which he concedes was more a celebration of the children than for them.Using his services to arrange a child's special day usually costs between \u00a315,000 and \u00a320,000. But he says he can organise something \"a level up from what you would do yourself\" from \u00a35,000.Ostentatious kids' parties such as these are relatively rare. Quintessentially organises a maximum of two a year, while Mr Duggan says he organises between five and eight.Hollywood howlersYet even at the more normal end of the scale, many parents are spending more on their child's special day.The Young Film Academy, whose main business is running film making courses for young people, organised 150 children's film parties last year, up from 120 in 2013. While prices start at \u00a3540, almost half of the bookings were for its most expensive MoviePartie starting at \u00a31,950, which stars the birthday child and their friends in a Hollywood-style epic\n                        At Young Film Academy children can star in their own Hollywood-style film\n                    \n                \"There's a real sense from parents that they want to do something different from the usual parties,\" says director James Walker.The fragmented nature of the party market - which includes cake, hall hire and entertainment - makes costs difficult to monitor. But insurer LV's latest annual survey of the cost of raising a child from birth until 21 put the total at \u00a3229,951, with its \"other\" category - which includes birthday and Christmas presents, as well as driving lessons - increasing by 60.2% between 2003 and 2015.On average, parents spend \u00a3135 on their child's party, with one-in-six parents admitting to splashing out over \u00a3300, according to parenting website Netmums.Given that there are nearly eight million families with dependent kids in the UK, the party market could be worth nearly \u00a31.1bn.Affluenza?Of course, having a few friends over for cake does not cost that much, but then that's rarely on the agenda these days.While a mother billing a five-year-old \u00a315.95 for failing to attend her child's birthday party made the headlines earlier this year, the fact the party was at a dry ski slope went largely unremarked.Yet it's a good example of how children's parties have become less simple affairs. \n                        The days of jelly and ice-cream in the back garden appear to be over\n                    \n                The trend seems to be part of what author Oliver James termed \"affluenza\" - an epidemic of obsessive, envious, keeping-up-with-the-Joneses.Sarah Ockwell-Smith, mother-of-four and founder of the Gentle Parenting website, says the media circus surrounding celebrities has helped to push the party bar higher. But ultimately, the motivation to make a big deal out of relatively minor milestones all stems from the parents, she believes.As she points out, a young child can often find all the fuss and attention overwhelming, resulting in tears of exasperation rather than tears of joy.Her advice to parents is to \"think about who you're doing it for and what will make your child happy.\"\n                        Young children often don't react to a big event in the way their parents expect\n                    \n                Present-free birthdays?Bill Doherty, professor of Family Social Science at the University of Minnesota, founded US group, Birthdays Without Pressure, for precisely these reasons.He says the group stemmed from local parents' dissatisfaction with the escalation of children's birthday parties, and a sense that parents were creating the problem themselves.He credits the group with having \"some influence\" in the growth of \"present free\" birthdays in the US - the invitation makes it clear there are to be no gifts, or that a donation to charity should be made instead.But he cautions that the idea only works if all the parents agree collectively not to have party bags or presents.\n                        Not all children will appreciate a present-free birthday\n                    \n                Not making this crystal clear can have unfortunate consequences.One member of his group hosted a party where one invitee who didn't receive a goody bag declared the party \"a rip off\", prompting the birthday girl to burst into tears.He says it's also important to be honest with a child about the reasons for not having presents,.Other group members suffered the humiliation of having neighbours fundraise to pay for a party they thought the parents couldn't afford.\"It's about giving parents permission to simplify their plans to fit with their family values,\" says Prof Doherty. \"There isn't just one way to do this. \"If you don't do a big party you're not a bad parent.\"\n    ","pubdate":"Mon, 06 Apr 2015 04:31:09 +0530","newspaper":"BBC"}]}