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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":"Companies queue up for IPOs as markets rally","content":"With the  stock markets remaining on a strong wicket, companies are finally getting into IPO (initial public offering) mode. Nearly a dozen companies have filed draft offer documents with  market regulatorSebi in the last one month for launching IPOs. The Catholic Syrian Bank, Amar Ujala Publications and Prabhat Dairy are among them. Despite a strong rally in the markets following the formation of a stable government at the Centre, companies raised a meagre Rs 3,019 crore from  IPOs in 2014-15. There were no big-ticket markets debuts during the year either. Only eight mainboard IPOs hit the market collectively raising just Rs 2,769 crore in 2014-15. This included only one Rs 1,000-crore plus IPO (Inox Wind--Rs 1,020 crore). The highest-ever mobilization through IPOs was in 2007-08 when companies raised Rs 41,323 crore. Fund-raising from equity markets doubled to hit a five-year high of Rs 58,801 crore in 2014-15 despite a lacklustre showing by IPOs. There has, however, been some improvement on the IPO front with companies turning active in filings from the third week of March. \"The markets are remaining quite strong. The confidence about growth is also still there. So, there would be a revival in the IPO market this year,\" says G Chokkalingam, founder and managing director (MD), Equinomics Research and Advisory. \"There are likely to be more IPOs and mobilization from them would also be higher than the last three to four years,\" says  Pranav Haldea, MD, PRIME Database, which compiles data on the primary capital markets. \"There are a lot of companies where  private equity investors are looking for an exit. If the business is good and valuations are right, companies would get good response from IPOs,\" he says.    But unlike in the past, IPOs will not get overwhelming response from investors, say experts. \"There will be selective investor interest in IPOs,\" Haldea says. Incidentally, the IPO of Adlabs Entertainment managed to scrape through only on its final day last month after it reduced the offer price and extended the offer period by three days. As many as 103 companies, which received approval from Sebi since April 2009 to collectively raise Rs 48,150 crore, allowed these to lapse despite approvals being valid for a period of one year as markets remained lacklustre for nearly three years. In addition, 58 companies which had filed their offer documents with Sebi since April 2009 to collectively raise Rs 17,685 crore withdrew their offer documents. If these 161 companies had been able to hit the market, an additional Rs 65,835 crore, almost the same as the Rs 73,909 crore which was raised in the six-year period, would have been raised. ","pubdate":"Mon, 13 Apr 2015 08:55:29 +0530","newspaper":"Economic Times"},{"title":"Orix, Abu Dhabi Investment Authority buy unsold ILFS shares in latest rights issue","content":"MUMBAI:  Orix Corporation of Japan and Middle East sovereign fund Abu Dhabi Investment Authority have both marginally increased their stake in India's largest private infrastructure development and financial services firm  ILFS by buying unsold shares in its Rs 750-crore rights issue, two people with direct knowledge of the development said. Both companies \u2014 existing investors in ILFS \u2014 purchased the shares recently after three founder shareholders, State Bank of India,  Central Bank of India and  HDFC Ltd did not subscribe to their rights. The largest share holder, Life Insurance Corporation, India's largest insurer, maintained its stake these people said.Orix Corporation will now become the second largest shareholder, marginally up to 25% from 23.16%, while Abu Dhabi Investment Authority will raise its stake to 14% from 12.56%. The rest is held by LIC, Central Bank of India, State Bank of India, HDFC and IL&FS Employees Trust.\"The unsubscribed portion of the issue was purchased by Abu Dhabi Investment Authority and Orix Corporation of Japan,'' said a person with direct knowledge of the development. \"We have maintained our stake by investing in the rights issue,\" said an  LIC executive. He cannot be quoted as he is not allowed to speak to the media. Officials at Orix Corporation and Abu Dhabi Investment Authority were unavailable for comment.The rights issue, which sought to raise around Rs 750 crore was priced atRs 763 a piece, much less than the previous sale of a 2% stake in the company to LIC in 2014 at Rs 1,100 a share, thus valuing the infrastructure fund company then at $5 billion. \"The valuation has fallen due to the economic slowdown and regulatory hurdles in the infrastructure sector, the primary focus of ILFS,'' the first person with direct knowledge of the deal said.''In general, infrastructure lenders are seeing lower valuation because of the stress in the sector,\" said  Abizer Diwanji, who is national head financial services at EY. \"Infrastructure lending is in a mess and that will have an impact on their valuation.''\"But rights issue is not priced to market. Since the issue is available to existing shareholders only it does not reflect the market valuation of the company,\" he added.LIC \u2014 one of the founder promoters of ILFS \u2014 has teamed up with the company to float an infrastructure debt fund to provide long-term finance to infrastructure companies building power plants, roads and ports.Until now, IL&FS has raised Rs 700 crore (about $110 million) through the infrastructure debt fund. It plans to increase the corpus to $5 billion by 2019 to fund infrastructure companies.  ","pubdate":"Sat, 11 Apr 2015 03:36:14 +0530","newspaper":"Economic Times"},{"title":"Gold holds above $1,200, but US rate hike worries weigh","content":"SINGAPORE: Gold steadied above $1,200 an ounce on Monday after rising more than 1 percent in a chart-based rebound the session before, but persistent concern that the  US central bank is on course to lift rates this year should cap any gains. Federal Reserve  official Jeffrey Lacker repeated on Friday his call for the US central bank to consider hiking  interest rates in June, and said there was no shame in adjusting them lower again if economic data demanded it. Spot gold was flat at $1,206.93 an ounce by 0212 GMT.  Bullion climbed 1.1 percent on Friday as bulls attempted to push the price past the $1,210 resistance level. US gold for June delivery was up 0.2 percent at $1,207.20 an ounce. The timing of the first US rate hike in nearly a decade remains the \"key wildcard\" for gold, said Barnabas Gan,  analyst at OCBC Bank. \"If the Fed rate hike doesn't occur in June and if the (next) labour print doesn't come in as good as the market expects, gold could rise up to $1,250,\" said Gan. US jobs grew at the slowest pace in more than a year in March, sending gold to a seven-week high of $1,224.10 on April 6 amid speculation the Fed could delay the rate increase. Hopes of a delay pushed hedge funds and money managers to raise their bullish bets on COMEX gold futures and options for the second straight week during the week ended April 7, US Commodity Futures Trading Commission data showed on Friday. Demand in No. 2 gold consumer China remained tepid with the premium on physical gold on the Shanghai Gold Exchange at just above a dollar over the global spot benchmark on Monday from a small discount late on Friday. The state-run Shanghai Gold Exchange said it was working on launching new price benchmark fixing products. Sources said in February that the bourse would launch a yuan-denominated gold fix this year as China, the world's top  gold producer, seeks to gain more of a say over pricing. ","pubdate":"Mon, 13 Apr 2015 09:13:53 +0530","newspaper":"Economic Times"},{"title":"Should you buy platinum now that prices are down?","content":"Once the preferred metal for buyers of high-end jewellery because of its high density ability to hold diamonds firm,  platinum today has lost much of its sheen.Traditionally more expensive than gold, platinum is now at par with the yellow metal.It is selling for around Rs 26,800 per 10 gram against the Rs 26,790 per 10 gram that  gold commands. In the international market, platinum is trailing gold at $1,166.50 an ounce against gold's $1,200 an ounce. However, as platinum is not listed on the Indian commodity exchanges, it is difficult to track its price on a daily basis. Till 2002-03, jewellers used to sell platinum at a fixed price.Now each  jeweller has a price of the day and there can be a difference of 4-5% in platinum rates from store to store. With prices dropping just before the May-June wedding season, the demand for the rare metal has risen by almost 8%. However, before you head out to buy, keep the following points in mind.Though the outlook for the metal is bullish, with a price rise of 15 to 20% expected this year, it is a good idea to buy platinum in small proportions to start with. If you are keen on investing in the white metal, you need to procure made-to-order coins and bars. However, they are not easy to sell as there aren't too many ready buyers and the market is not mature enough.  According to  Vaishali Banerjee, Country Manager of Platinum Guild International (India), the price depression is good news for buyers of jewellery. Platinum jewellery is hallmarked\u2014Pt950 denotes 95% purity. The remaining 5% is an alloy of platinum group metals like palladium and rhodium. Banerjee advises buying platinum only from The Platinum Guild International-authorised jewellers, the list of which is mentioned on the guild's website. Platinum products are also authenticated by a third-party certification, the  Underwriters Laboratories, also known as the UL card. Insist on this card from the jeweller to authenticate your purchase.Too high a priceThe making charge of platinum jewellery is around 10-30% more than gold. The more intricate the design, the more it costs to make.\"There is high wastage or manufacturing loss during the making process. As the metal is very dense, it requires highly-skilled workers to make jewellery out of it. A platinum jewellery worker can make gold jewellery, but not vice versa. Also the alloys that go into platinum jewellery are as expensive as platinum. Silver and copper alloy used in gold jewellery are cheaper than gold,\" says  Vastupal Ranka, Director,  Ranka Jewellers (West).Moreover, jewellers are not allowed to make platinum jewellery in-house. According to  Kalpanik Chokshi, Director, Ishwarlal Harjivandas Jewellers, Ahmedabad, platinum jewellery is manufactured by Platinum Guild International. Authorised jewellers have to place an order with the guild to procure a piece. As platinum is a hard metal, it requires a high melting point and can only be handled in specialised manufacturing units.The buyback policy for platinum is similar to that of gold, but there is no standardisation, with each jeweller following his own policy. A hallmarked piece can be exchanged for jewellery or cash at an authorised store.You will get back 85-90% of the value of platinum. In case of gold, the deduction is 0.5%. As a result of the downsides, the demand for platinum is largely concentrated to bigger cities. Even in Mumbai and Pune, less than 1% of all jewellers sell platinum jewellery.The Platinum Guild International (India) is also particular about who can sell the metal.For those attracted to platinum because of its look, a safer option could be white gold, which has a matured market in India. However, the white look of white gold can wear off over time, unlike platinum.The good part about platinum not being traded in India is there is no price speculation around it like in the case of gold. Platinum prices are market driven, and tend to rise slowly.","pubdate":"Mon, 13 Apr 2015 08:00:36 +0530","newspaper":"Economic Times"},{"title":"Dollar gains for 5th straight day","content":"NEW YORK: The  US dollar headed higher against the euro Friday for the fifth straight day, riding on expectations that the US  economy will pick up pace after the winter slowdown. The dollar pushed barely past the $1.06 threshold to the euro last seen three weeks ago, before US growth worries sent the greenback tumbling on expectations the  Federal Reserve would hold off on a rate rise. The dollar dropped to $1.10 per euro after that, but with the Fed news baked in, buyers returned and pushed it to $1.0599 Friday. Kathleen Brooks of Forex.com said that as the European Central Bank builds its quantitative easing stimulus program, and the fed heads in the opposite direction, better yields on the west side of the Atlantic are the draw. \"Interestingly, the euro is coming under pressure even though economic data has been surprising on the upside,\" she said. \"But in this environment, economic data is not determining the direction of the world's major currencies, yields are. \"As the ECB continues to expand its balance sheet, this is likely to boost the amount of euro in circulation, and may continue to weigh on the single currency.\" ","pubdate":"Sat, 11 Apr 2015 04:17:29 +0530","newspaper":"Economic Times"},{"title":"Rupee ends lower by 7 paise vs dollar","content":" MUMBAI: The  rupee ended lower by 7 paise to 62.31 against the American currency on fresh dollar demand from banks and importers as the greenback firmed up overseas on upbeat US jobs report. The rupee resumed lower at 62.30 per dollar against the last closing level of 62.24 at the  Interbank  Foreign Exchange (Forex) market and dropped further to 62.42 per dollar on initial dollar demand from banks. However, it recovered to 62.29 per dollar on some dollar selling from banks on the back of good foreign capital inflows into  equity market before ending at 62.31, showing a loss of seven paise or 0.11 per cent. It moved in a range of 62.29 and 62.42 per dollar during the day. Fresh dollar demand from banks and importers in the view of firm dollar in the overseas market mainly affected the rupee value against dollar, a  forex dealer said. In the international market, the dollar came off its overnight highs today in Asia as a rebound built on renewed hope of a US interest-rate rise in the coming months lost steam. The dollar index, a gauge of six major global rivals, was up by 0.38 per cent today. The greenback rose to three-week highs against the euro and the yen in the New York market yesterday, recouping all the losses made after disappointing jobs data last week that caste doubt on the strength of the US labour market. Oil prices were trading mixed in Asia after recovering from a steep dive, with buying sentiment shackled by a global supply glut, analysts said. Meanwhile, the Indian benchmark 30-share index  Sensex declined marginally by 5.83 points or 0.02 per cent to 28,879.38. In the forward market, premia dropped further on sustained receiving by exporters. The benchmark six-month premium payable in September moved down to 224.5-226.5 paise from 230-230.5 paise yesterday and forward contracts maturing in March 2016 also fell to 447.5-459.5 paise from 456-457 paise previously. The Reserve Bank of India fixed the reference rate for dollar at 62.3660 and for the euro at 66.4884. The rupee firmed up further against the pound sterling to 91.09 from 92.35 yesterday and also advanced further against the euro to 66.01 from 67.01. The local currency firmed up further against the Japanese Yen to 51.76 per 100 yens from 51.88 previously. ","pubdate":"Fri, 10 Apr 2015 18:34:47 +0530","newspaper":"Economic Times"},{"title":"Government agencies line up Rs 40,000 crores of bonds; yields may be lower than last year","content":"MUMBAI\/NEW DELHI: Retail investors in fixed income may soon have a reason to cheer, though a shade lesser than what it was in 2013-14 when Rs 49,200-crore tax-free bonds with high yields and sovereign backing were sold to them. Now, after a gap of more than a year, government agencies are lining up nearly Rs 40,000 crores of bonds in the next few months, but the yields may be lower by as much as a one-and-a-half percentage points, thanks to falling  interest rates and rising investor appetite for such bonds.  Indian Railways Finance Corporation (IRFC), may obtain the highest allocation of about Rs 15,000-17,000 crore to issue such securities aimed at tapping retail money to meet the country's infrastructure needs.The rate of interest is likely to be in the range of 7-7.25% with a spread or gap of 75-85 basis points below the ten-year benchmark bond yield. These rates are lower than 8.75-9% that such bonds offered in fiscal 2014. However, tax is not payable on the interest earned on such bonds, making them look more attractive than taxable debt instruments. \"Tax-free bonds will evince interest from retail investors, but it has to come at the right time before interest rates slid further,\" said Ajay Manglunia,  senior vice-president at  Edelweiss Securities. \"Any rate above 7% is enough to attract retail investors, who are mostly long-term investors,\" he said. \"Some high net worth individuals too would be investing with an aim for capital appreciation.\"The government has already approved state-owned IRFC and the National Highway Authority of India (NHAI), to sell such bonds.Railway minister Suresh Prabhu has announced ambitious plans to revamp the ailing railways, and has promised even bullet trains. In his Budget speech, he had said that about Rs 1.27 lakh crore would be spent on renovating tracks and other safety measures, and Rs 7.29 lakh crore on capital expenditure next five years. The ministry also intends to fast track the sanctioned works on 7,000 km of double\/third\/fourth lines and commission 1,200 km in 2015-16 at an investment of Rs 8,686 crore. Prabhu had also announced plans to focus on PPPs to meet the funding gap.So is the case with NHAI. Roads minister Nitin Gadkari has targeted to award 15,000 kms of roads in two fiscals by March 2016. The target was at 8,500 km in 2014-15. The government is also working on hybrid models to raise funds for these projects since many of the companies in this segment are already sunk in debt. For the irrigation sector, many including  National Bank for Agriculture and Development (Nabard), Housing and Urban Development Corporation (Hudco), Rural Electrification Corporation (REC) and India Infrastructure Finance Company (IIFCL), have proposed to the economic affairs and finance ministries for approval to tap the bond market.  ","pubdate":"Mon, 13 Apr 2015 08:05:43 +0530","newspaper":"Economic Times"},{"title":"HDFC Ltd to raise up to $500 million from Exteral Commercial Borrowing","content":"NEW DELHI: Housing Finance company  HDFC Ltd today said it has got  RBI clearance to raise up to $ 500 million (about Rs 3,100 crore) as  Exteral Commercial Borrowing (ECB) to fund its business growth. The approval to raise up to $ 500 million is valid for six months, HDFC Ltd said in statement. HDFC would be raising the money under the ECB window for housing finance companies that the Reserve Bank of India (RBI) allowed for funding affordable housing projects. Last year, it raised $ 300 million through ECB, the first by an housing finance company under the low-cost affordable housing scheme of RBI. Low-cost affordable housing units have been defined as units where the property cost does not exceed Rs 30 lakh, loan amount is capped at Rs 25 lakh and the carpet area does not exceed 60 square metres. Meanwhile, HDFC today cut home loan rate by 0.2 per cent to 9.9 per cent for new as well as existing borrowers. Besides, it is also revising its deposit rates. Earlier this week, many banks including  State Bank of India,  ICICI Bank,  HDFC Bank and  Axis Bank cut lending rate by up to 0.25 per cent after RBI Governor Raghuram Rajan's tough talk with bankers. The central bank kept its policy rate unchanged at 7.5 per cent in its monetary policy on April 7. ","pubdate":"Fri, 10 Apr 2015 22:53:09 +0530","newspaper":"Economic Times"},{"title":"Oil edges up as financial traders bet on higher prices","content":"\n\nSINGAPORE (Reuters) - Oil prices inched up on Monday following a strong session on Friday, as financial traders increased their bets on higher prices amid a slowdown in U.S. drilling, but analysts warned fundamentals remained weak.\nFront-month Brent crude futures LCOc1 were trading at$57.89 a barrel by 0356 GMT (7.56 a.m. ET), up 2 cents since their last settlement, while U.S. crude CLc1 was up 14 cents at $51.78.Many money investors are calling a bottom in oil prices, as speculators in U.S. crude oil futures and options raised net long positions by some 52 million barrels in the week to April 7, data from the U.S. Commodity Futures Trading Commission showed. That was the biggest one-week rise in bullish bets since 2011, according to CFTC data.Reuters data shows that open interest in WTI strike options for $60, $70, $80, $90 per barrel on Nymex has risen steadily since the beginning of the year, showing that many traders are betting on rising prices. Even options volumes for $100 a barrel have increased by almost 20 percent this year.\"Speculative market participants appear to be calling for a bottom in oil prices,\" ANZ said in a note.While prices may not fall much further, the bank said that a big price rally also remained unlikely.\"Although there are tentative signs of demand improving and rig counts fell to the lowest level since 2010, an ongoing global market surplus \u2013 driven by swelling U.S. inventories (the biggest weekly jump since March 2001) and Saudi Arabian output to record high levels \u2013 should limit any potential rally.\"Other analysts were even more cautious, warning that supply and demand fundamentals were deteriorating.\"Global oil fundamentals have been quite strong YTD (year-to-date), but we now see signs that physical markets are weakening. Global refining margins, while still healthy, have fallen materially. With U.S. runs set to ramp over the coming weeks, global turnarounds rising and product demand weakening seasonally, we expect product builds and pressure on global refining margins, which should diminish the appetite for non U.S. crudes,\" Morgan Stanley said.The bank said that production from exporters like Libya, Saudi Arabia and Russia as well as slowing demand for West African crude were also indicators of weak market fundamentals.\"All of these factors were a precursor to the price correction last summer,\" Morgan Stanley said, referring to the halving of oil prices since June last year as soaring output clashes with slowing demand. (Editing by Richard Pullin and Joseph Radford)","pubdate":"Mon, 13 Apr 2015 09:34:56 +0530","newspaper":"Reuters"},{"title":"China's March exports shrink 15 percent year-on-year in surprise fall","content":"\n\nBEIJING (Reuters) - China's exports contracted 15 percent in March from a year earlier in a surprise drop that will exacerbate concerns about the slackening Chinese economy.\nAnalysts had expected exports to rise 12 percent in March on a yearly basis.In a sign of soft domestic demand, imports into the world's second-biggest economy also shrunk 12.7 percent last month compared with a year ago, data from the General Administration of Customs showed. That compared with a Reuters poll forecast for a 11.7 percent drop in imports.\"The slump in the exports figure is mainly due to the weak global demand, while the appreciation in dollars against other currencies in the past quarter was also negative for China's exports,\" said Nie Wen, a strategist at Hwabao Trust in Shanghai.\"More stimulus measures are needed in the future.\"The trade performance left China with a trade surplus of $3.1 billion last month, much smaller than forecasts for a $45.4 billion trade gap.In line with the slowing Chinese economy, China's trade sector has been buffeted by lackluster foreign and domestic demand in the past year, raising concerns among policymakers.Chinese vice premier Wang Yang was quoted by Xinhua state news agency as saying earlier this month that authorities must act to arrest China's export slowdown lest it further dampens economic growth.\n        \n        Wang was quoted as saying that local governments should offer \"preferential policy support\" and encourage more private investment in the export sector.Tepid growth in the trade sector could hurt jobs, which the government wants to protect for fear that widespread unemployment could fuel social discontent and trigger unrest. So far, China's labor market appears to be holding up well, despite signs that economic growth is steadily grinding to its lowest in a quarter of a century of around 7 percent.Data on growth in the first quarter will be released on Wednesday.China expanded grew its trade sector by 3.4 percent in 2014, according to government data, missing the government's growth target of 7.5 percent by more than half.Taking that disappointing outcome into account, the government has lowered its growth target for 2015 combined imports and exports to around 6 percent.(This story has been refiled to remove 'growth' from first line) (Reporting by Koh Gui Qing; Editing by Richard Borsuk)","pubdate":"Mon, 13 Apr 2015 09:00:55 +0530","newspaper":"Reuters"},{"title":"Asian shares, dollar have a lackluster start to the week","content":"\n\nTOKYO (Reuters) - Asian shares got off to a shaky start on Monday as recent rallies offered traders a profit-taking opportunity, while the dollar edged away from recent peaks in early trading. \nMSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down about 0.1 percent after touching its highest levels since September in the previous week.  Japan's Nikkei stock average .N225 was nearly flat in early trade, after rising above the 20,000 on Friday for the first time in 15 years.Wall Street marked solid gains for both the day and the week on Friday, while the pan-European FTSEurofirst 300 share index .FTEU3 reached a 15-year high and Germany's DAX .GDAXI rose to a record.A renewed drop in the euro powered the European gains, with the single currency slumping to a 3-1\/2 week low on Friday. On Monday, it edged up slightly on the day to $1.0609 EUR=.Against its Japanese counterpart, the dollar lost 0.2 percent to 120.11 yen JPY=, though divergent monetary policy expectations were expected to bolster the greenback in the long term.\"The U.S. Federal Reserve is in fact the only G10 central bank expected to raise interest rates in the coming 12 months, and as long as this remains the case we expect the U.S. currency to hold its gains against lower-yielding counterparts,\" David Song, currency analyst at DailyFX said in a note.Crude oil prices edged down after logging weekly gains as an agreement on Iran's nuclear program seemed more elusive, lessening the chances of a rapid return of Iranian oil to the market.Brent LCOc1 was down about 0.1 percent at $57.84 a barrel, after adding 5.3 percent for the week. U.S. crude CLc1 edged down about 0.2 percent to $51.54 after an increase of 5.0 percent last week, its fourth consecutive weekly rise.World powers and Iran announced the interim accord last week, but on Thursday, Iranian leaders said all sanctions on the country must be lifted on the same day as any final agreement.Spot gold XAU= was nearly flat on the day at $1,207.81 an ounce, after snapping a three-week winning streak on a stronger dollar.Later on Monday, China will release trade figures for March. They might offer some clues ahead of its spate of data on Wednesday, which include first quarter economic output, and monthly factory activity, retail sales and investment reports. (Editing by Richard Borsuk)","pubdate":"Mon, 13 Apr 2015 07:19:36 +0530","newspaper":"Reuters"},{"title":"GM mulls $1 billion renovation of technical center near Detroit: Bloomberg","content":"\n\nNEW YORK (Reuters) - General Motors Co (GM.N) is considering plans to spend as much as $1 billion renovating its Technical Center, a facility that is more than 50 years old, Bloomberg reported.\nThe renovations would include offices for 2,500 new employees specializing in electrical engineering, software development and information technology, Bloomberg reported on Friday.A GM representative was not immediately available. The automaker is also mulling a $1.3 billion expansion of its Arlington, Texas, assembly plant to produce more of its sport-utility vehicles. (Reporting by Elizabeth Dilts; editing by Matthew Lewis)","pubdate":"Mon, 13 Apr 2015 06:50:05 +0530","newspaper":"Reuters"},{"title":"Airbus needs more time to decide on A380 changes: paper","content":"\n\nPARIS (Reuters) - Airbus (AIR.PA) will not abandon its A380 jumbo jet program despite slow sales, its chief executive told Les Echos newspaper, and needs more time to decide whether to redesign its engines as major customer Emirates Airline has requested.\nEmirates, the leading buyer of the existing A380 jet with 140 orders, has been pushing Airbus to revamp the plane with newer engines, a move that could lower the number of seats airlines must sell to break even.Airbus boss Fabrice Bregier appeared to rebuff the request in the interview with Les Echos published online on Sunday.\"We are already working on ways to make the A380 more attractive economically by adding seats while preserving the amazing comfort of the plane,\" he said.\"Long-term, the question will be how to improve its performance by working on aerodynamics and motorization. But we will not do that until a good business plan can be found. That is not the case now and we have no intention to spend indiscriminately.\"The CEO added that the A380 program would break even by the end of the year, and that Airbus hoped to maintain its financial performance. On Airbus' other new relatively new model, the A350, Bregier said that Qatar Airways has seen no issues with the plane after two months of service. Airbus aims to deliver about 15 A350s this year and eventually up to 10 per month by 2018.  (Reporting by Leila Abboud, editing by David Evans)","pubdate":"Mon, 13 Apr 2015 00:33:29 +0530","newspaper":"Reuters"},{"title":"IEA sees sharp rise in Iran oil output in 3-5 years post nuclear deal","content":"\n\nNEW DELHI (Reuters) - World oil markets will not see a significant rise in Iranian supplies for up to five years even if the OPEC member and world powers clinch a final nuclear deal by end-June, Fatih Birol chief economist and future head of International Energy Agency (IEA) said.\nWhile the likelihood of an immediate jump in Iranian supplies looks slim, the chance of a steep fall in deliveries from other regions is rising as IEA estimates companies will cut investments by as much as $100 billion in 2015 in oil exploration and production due to lower prices.Iran and six world powers reached a framework nuclear agreement on April 2, spurring hopes for a final deal by end-June that would lift economic sanctions imposed by the West against Tehran's disputed nuclear program.\"In three to five years we may see stronger (oil production) growth coming from Iran assuming Iran and global powers strike a final deal in June,\" Fatih Birol, who will head the IEA from September, told Reuters in an interview in New Delhi.He said there may not be a big growth in Iranian oil production immediately as Tehran's huge and geological complex fields have not been maintained \"in the best way\" due to the sanctions.Western sanctions have cut Iran's oil exports by more than half to around 1.1 million bpd from a pre-2012 level of 2.5 million bpd, with the loss of oil income making it difficult to invest in new development and pay for the equipment and services needed to keep its production operating smoothly.Birol sees a limited impact of the lifting of sanctions on Iran on global oil prices, which have been halved since June on supply glut mainly from the United States.Global economic growth mainly in Asia and Europe and investment in boosting oil output will be important factors determining movement in future global oil prices.\"We see a very sluggish economic growth prospects in Europe which is very important to determine the demand of oil growth,\" he said.While lower oil prices have taken $100 billion of investment from the oil sector in 2015, geopolitical tensions in the Middle East have raised questions over the security of investments by global oil companies in the region, he said.\"We have never seen such a big cut even at the time of financial crisis,\" he said, referring to a 20 percent cut in investment by global oil firms in 2015 over 2014.\"If the slowing down of production and strong growth of demand come together, this may well put upward pressure on oil (prices) in the future,\" he said.IEA sees a big chunk of the 20 percent investment drop in the United States, Canada and Brazil.\"This means production growth in the United States may well slow down and this is of course an important input for oil markets in next quarters to come ... It is difficult to give a number but there may be a slowdown which may have an effect on oil coming from the U.S. in 2016,\" he said.Birol wants to build stronger ties with emerging economies such as India, China, Indonesia and Mexico and if possible bring  these countries into any joint IEA emergency supply response.IEA's 29 member nations jointly accounted for some 70 percent of global oil demand when it was formed 41 years ago. Now the group accounts for about 50 percent of overall demand as new consumption centers such as India and China have emerged. (Reporting by Nidhi Verma, editing by David Evans)","pubdate":"Sun, 12 Apr 2015 23:36:24 +0530","newspaper":"Reuters"},{"title":"Italy pins hopes on Milan Expo after corruption, delays","content":"\n\nMILAN (Reuters) - Three weeks before the Milan Expo opens on May 1, the site of the showpiece event is still a mass of trucks raising dust and workers in hard hats racing to finish building after delays, graft and cost overruns.\nItaly has had four different governments in the seven years since Milan was chosen to follow the 2010 Shanghai Expo and has undergone its most severe economic crisis since World War Two.But 40-year-old Prime Minister Matteo Renzi is counting on the event to reinforce fragile signs of recovery and help his drive to put a more modern face on Italy after the years of recession.Officials are counting on some 20 million visitors to the six month-long exhibition of products and technologies from around the world. They hope it will bring in 10 billion euros ($10.75 billion), half of it from foreign visitors.Some 9 million tickets have already been sold, a third of them outside Italy, for an event seeking to broaden its appeal with interactive exhibits such as a supermarket of the future, cultural events and shows at an arena and an artificial lake.\"Expo will be the litmus test for the great ambitions which Italy has,\" Renzi said in a speech in Milan last month to promote the event. \"With the Expo, we'll be able to see what Italy will be in the coming years.\"Intended as a celebration of Milan's openness to the world and an exploration of new approaches to sustainable food, the event has so far stood out for the chronic corruption and waste that have blighted public works projects in Italy for decades.Several top officials, including the Expo's former public procurement manager, were arrested last year and the whole event was placed under the oversight of the national anti-bribery authority in a bid to ensure transparency.\"REALISTICALLY CONFIDENT\"The Italian pavilion, a centerpiece of the event, was originally expected to cost 63 million euros ($67.69 million) but will end up costing 92 million and may not be completed in time. A number of transport projects planned to accompany Expo will also not be ready.A defendant who opened fire in a Milan court last week, killing three people including a judge, also underlined the potential security problems around a major event of this size.Buffeted by the scandals and facing disputes with architects and building contractors, Expo Commissioner Giuseppe Sala says construction work at the 110-hectare (272 acre) greenfield site on the outskirts of Milan will be essentially complete by opening day.\"I am realistically confident about the work we're doing but I am surprised and sometimes a bit disconcerted by the climate which has developed,\" he told reporters in Milan earlier this month, denying press reports that organizers would be forced to hide embarrassing gaps with camouflage panels.\"When has it ever been the case for a project like an Expo or Olympic Games, that all the building work has been finished 30 days before the opening?\" he said. \"If we end up looking bad, the fault will be mine. The government and local partners have done everything they should.\"CHINA PRESENCEIn all, 145 countries are taking part but China, a growing presence in the Italian economy following a spree of acquisitions ranging from luxury yacht maker Ferretti to tyre maker Pirelli, will be particularly well represented.As well as a 5,000 square meter official pavilion, there are separate halls for property developer Vanke and other Chinese corporations. A million tickets have already been sold in China, adding to a rising flow of Chinese visitors to Italy.\"A Milan delegation went to China two months ago and was given a rapturous welcome,\" said Claudio Artusi, who is coordinating Milan's plans for events across the city.\"Getting visas is a bit of a bottleneck, but the Chinese are keen to have the chance of explaining the country to those who don\u2019t know it.\"  In the noise and confusion of the building site, it is still hard to picture how it will all look, although the intricate woodwork of the Japanese pavilion and the futuristic swoop of France's hall suggest an eye-catching architectural display.Visitors will see exhibits on \"feeding the planet\" with plant samples and technology, while dozens of restaurants will give a taste of various national cuisines including Italian specialties from the upmarket delicatessen chain Eataly.But Expo will also have plenty of room for the mass-produced food industry. Both Coca-Cola and McDonald's are hosting pavilions, fuelling worries that the green-tinged rhetoric of \"sustainability\" will hide a familiar big-money business agenda.A \"No Expo\" movement is already planning protests for the May 1 opening, and even away from anti-globalization groups there has been criticism about the capacity of a mega-spectacle like Expo to promote more eco-friendly agriculture. Slow Food, a campaign group which has done much to promote sustainable and traditional foods, is taking part to press its message against waste and over-industrialized production, but it remains skeptical about many aspects of the event.\"It was absurd to have used 1 million square meters of ground that was not cemented over, that was still fertile, to construct the Expo site,\" said Roberto Burdese, head of the group's Italian section.\"But you can't leave an empty seat at the discussion table. We've decided to be there but it was a very difficult decision.\" ($1 = 0.9307 euros) (Additional reporting by Stephen Jewkes, Ilaria Polleschi; editing by Philippa Fletcher)","pubdate":"Sun, 12 Apr 2015 21:55:20 +0530","newspaper":"Reuters"},{"title":"Volkswagen chairman appears isolated on board after CEO criticism","content":"\n\nBERLIN\/STUTTGART, Germany (Reuters) - Volkswagen Chairman Ferdinand Piech is facing growing resistance within the supervisory board to his criticism of Chief Executive Martin Winterkorn, deepening a leadership crisis at a time when Europe's largest carmaker is struggling to revive profits.   \nPiech on Friday publicly withdrew his confidence in Winterkorn who has been at the helm of the automaker since 2007, telling German magazine Der Spiegel he has \"distanced\" himself from the CEO.Piech's remark, exposing unusual dissent between VW's (VOWG_p.DE) two top leaders, undermines the CEO's prospects of extending his contract beyond 2016 or to become chairman himself when Piech retires, most likely in 2017, analysts said.Wolfgang Porsche, chairman of the Porsche SE (PSHG_p.DE) holding company which controls 51 percent of VW common stock, on Sunday threw his backing behind Winterkorn, siding with the state of Lower Saxony, VW's second largest shareholder and its labor leaders.    \"The comment from Dr Piech represents his personal opinion which has in substance and factually not been coordinated with the family,\" said Porsche, a cousin of Piech and a member of VW's supervisory board.The state of Lower Saxony, where VW is based and which owns one fifth of VW's voting shares, as well as the carmaker's labor leaders who represent half of the 20 members on VW's supervisory board on Friday gave their backing to Winterkorn.Winterkorn, who in his eight-year reign has overseen VW's transformation from a struggling German group saddled with high labor costs into one of the world's most successful automakers, will fight for his job and feels emboldened by support from strong allies, company sources said on Saturday.Piech's remark has plunged VW into turmoil at a time when it is seeking to cut billions of euros of costs to boost profitability at its troubled core division while struggling to forge a long-planned alliance of truck brands and to revive operations in the United States.While the reasons for Piech's campaign remain unclear, a senior labor representative said the chairman had criticized Winterkorn at past board meetings, particularly with regard to the weak U.S. operations.VW's $1 billion plant in Chattanooga has been underutilized for more than a year after demand dried up for the locally-built Passat saloon, a model that Winterkorn had personally lobbied for, a company source said.      \"This falling-out is destabilizing VW at a critical time,\" said London-based Evercore ISI analyst Arndt Ellinghorst. \"The top-level succession is the biggest challenge the carmaker has been facing in the past 20-30 years.\"The supervisory board's steering committee will meet next week to discuss the leadership crisis, another company source said, without being more specific.Besides labor's 10 seats, Lower Saxony has two seats on the 20-member panel, the same as the Porsche family members. Piech, whose family holds three seats, has run the board since 2002.  (Additional reporting by Jan Schwartz; Editing by Madeline Chambers and David Evans)","pubdate":"Sun, 12 Apr 2015 21:23:09 +0530","newspaper":"Reuters"},{"title":"Greek finance ministry hits back at German newspaper report","content":"\n\nATHENS (Reuters) - Greece's finance ministry dismissed on Sunday a report by a German newspaper which said that euro zone officials were shocked at Greece's failure to outline plans for structural reforms at last week's talks in Brussels.\nThe mood between Greece's newly-elected leftist government and its euro zone partners has been tense during negotiations that will determine whether the cash-strapped country deserves further financial aid by its EU\/IMF lenders.Frankfurter Allgemeine Sonntagszeitung cited participants at last week's meeting as saying that they were disappointed by Athens' lack of movement in its plans, adding that the Greek representative just asked where the money was \"like a taxi driver\" and insisted his country would soon be bankrupt.\"When the readers of FAS read the minutes of the Euro Working Group meeting the newspaper will have difficulty justifying its headline and the content of its article,\" the finance ministry said. \"Such reports undermine the negotiation and Europe.\"   A meeting of deputy finance ministers - called the Euro Working Group - on Thursday gave Athens a six working day deadline to present a revised economic reform plan before euro zone finance ministers meet on April 24 to decide whether to unlock emergency funding to keep Greece afloat.Technical teams from Greece and its international lenders held a teleconference on Saturday to outline the agenda of talks in the coming days, a Greek finance ministry official said.  Greece's biggest creditor Germany has said the euro zone would give Athens no extra funds until it has a more detailed list of reforms.      (Reporting by Renee Maltezou; editing by Susan Thomas)","pubdate":"Sun, 12 Apr 2015 20:04:37 +0530","newspaper":"Reuters"},{"title":"UPS to invest $1.06 billion in Europe: Wirtschaftswoche","content":"\n\nBERLIN (Reuters) - United Parcel Service Inc. (UPS.N) plans to invest 1 billion euros ($1.06 billion) in Europe to expand its package delivery network, German magazine Wirtschaftswoche reported on Sunday, without citing its sources.\n\"We will strongly expand our network in Germany and the rest of Europe,\" the magazine quoted UPS Germany chief Frank Sportolari as saying in the article, adding the number of parcel shops and sorting centers would rise with the investment.FedEx Corp (FDX.N) is to buy Dutch package delivery firm TNT Express (TNTE.AS) for an agreed 4.4 billion euros ($4.66 billion), stepping up the challenge to rivals UPS and Deutsche Post (DPWGn.DE).Sportolari said UPS \"has lost time\" after its own attempt in 2013 to take over TNT was blocked by European regulators due to concerns it would stifle competition. (Reporting by Andreas Cremer; editing by Jason Neely)","pubdate":"Sun, 12 Apr 2015 18:20:14 +0530","newspaper":"Reuters"},{"title":"Julius Baer CEO says has not held deal talks with Credit Suisse: paper","content":"\n\nZURICH (Reuters) - Julius Baer (BAER.VX) has not held talks with larger rival Credit Suisse (CSGN.VX) about merging, the Swiss private bank's chief executive said in comments made in the weekly Schweiz am Sonntag.\n\"There have been no such talks,\" Boris Collardi, head of Zurich-based Julius Baer, was quoted as saying when asked whether the two banks had discussed a tie-up.Talk in Swiss banking circles has long linked Credit Suisse to Julius Baer, which with 291 billion Swiss francs ($297.18 billion) in assets is the fourth-largest private bank in Switzerland behind UBS UBSN.VX, Credit Suisse and Geneva-based Pictet & Cie.The chatter has fueled Baer's shares to their highest level since the purchase of three private banks and asset manager GAM from UBS UBSN.VX in 2005.A spokeswoman for Credit Suisse would not comment on Collardi's remarks or a potential deal.His comments come as the Swiss private banking industry is rapidly being reshaped by dealmaking aimed at branching out from a struggling home market and surviving regulatory changes. Three weeks ago, Geneva-based Union Bancaire Privee said it would buy the international business of 300-year-old British wealth manager Coutts.Collardi said that while he believed his bank to be an attractive target, he did not see what the value of a deal would be for Baer's clients and employees.Julius Baer is still involved in a criminal investigation into its role in helping wealthy Americans evade taxes, a probe that Credit Suisse set aside nearly one year ago by paying $2.5 billion and pleading guilty to a U.S. criminal charge. (Reporting by Katharina Bart; editing by Jason Neely)","pubdate":"Sun, 12 Apr 2015 18:16:44 +0530","newspaper":"Reuters"},{"title":"BDI industry group sees German growth of 2 percent in 2015","content":"\n\nBERLIN (Reuters) - Germany's BDI industry association is more optimistic about the prospects for Europe's biggest economy than it was three months ago due to cheap oil, strong private consumption and a weak euro, its president said on Sunday.\n\"For this year we expect gross domestic product (GDP) growth of about 2 percent,\" BDI President Ulrich Grillo told Handelsblatt business daily. In January, the group forecast growth of 1.5 percent.While expressing concern about economic developments in Russia and Brazil, Grillo pointed to India, the United States, Spain and Britain as bright spots that could help Germany, traditionally strong on exports. \"Europe is profiting from the stimulus of low interest rates, but in the long term structural reforms are required,\" he told the paper.  Last month, Germany's panel of economic advisers raised their growth forecast to 1.8 percent for 2015 from its previous estimate of 1.0 percent, citing cheaper oil and a weaker euro.Last year the German economy grew 1.6 percent.  (Reporting by Madeline Chambers; Editing by Andrew Heavens)","pubdate":"Sun, 12 Apr 2015 16:04:55 +0530","newspaper":"Reuters"},{"title":"United States loses sparkle as Europe shows signs of hope","content":"\n\nFRANKFURT (Reuters) - Investors will cast a wary eye on the latest gauges of the United States' economic health this week, while troubled Europe shows early signs of turning the corner.\nAs finance ministers and central bankers from the Group of 20 top economies gather in Washington, on the sidelines of the International Monetary Fund's Spring meeting, they view a subdued global landscape where even the United States' prospects seem tarnished. For a change, however, there are reasons for hope in the euro currency bloc, despite still low growth and high unemployment.European Central Bank President Mario Draghi will be able to claim an early success in the bank's fledgling money printing program with figures on Friday set to confirm that falling prices throughout the 19-country euro zone are beginning to stabilize. Bank lending too is improving.\"We're seeing the opposite of 2014,\" said Carsten Brzeski, an economist at ING bank. \"Now there are more doubts about the U.S. and China than the euro zone.\"The ECB's long-awaited scheme to buy 60 billion euros a month of chiefly government bonds is also helping to steady nerves in wrangling with debt-strapped Greece.Greece has until mid-week to improve a package of reforms required for the release of euro zone loans that it needs to stay afloat, and that will be a hot topic in Washington.Were Greece to tumble out of the currency union, it could upset an already delicate global picture where even the U.S. economy, a beacon of economic strength, is losing some of its shine.SOBER PROSPECTSOn Tuesday, the United States will release March retail sales data. Although economists expect a rebound, shoppers are being cautious, holding back much of the savings made on lower petrol prices.Consumer inflation, one way of taking the pulse of the economy, has also slowed as oil prices drop.But even stripping out the impact of energy prices and the cost of food, analysts expect only a 0.1 percent month-on-month gain in U.S. consumer prices in March, due on Friday.Such signs of a sagging economy, including disappointingly low hiring last month, are leading investors to bet that the Federal Reserve will wait before hiking the cost of borrowing until October or even December.Many had previously pencilled in a mid-year U.S. rate hike, which will be the first in more than eight years and likely to send ripples around the globe. For many of the central bankers and officials attending the IMF meeting, the later the United States moves to hike rates the better.The IMF's economic outlook report, due early in the week, will likely make for sober reading.China, previously the main growth engine for the world economy, is likely to continue to slow despite two recent interest rate cuts.On Wednesday, the world's second-largest economy will unveil its economic output for the first quarter, alongside readings of factory activity, retail sales and investment.Economists expect growth slowed to 7 percent in January-March. Although far stronger than Europe or the United States, that would increase the chance that China's growth this year will be the weakest in a quarter of a century.  \"We expect to see two more interest rate cuts this year and larger fiscal spending for the economy, but this will not change the fundamental path of slower growth,\" said Xiaojia Zhi, China economist at BofA Merrill Lynch. She pointed to central government efforts to tackle high local government debt and an anti-corruption drive as possible drags on investment.With the euro zone gradually healing, Britain is becoming the focus in Europe as investors brace for volatility in the value of sterling ahead of a tightly contested national election on May 7.The two main parties are close in opinion polls. That makes the outcome unpredictable for a vote that could ultimately determine Britain's future in the European Union, as David Cameron's Conservatives promise a referendum on EU membership if they win.\"The classic safety valve is the currency market. We are starting to see some jitters,\" said Brian Hilliard an economist with Societe Generale in London. \"It's going to get very messy this time.\" (Additional reporting by David Milliken, Jan Strupczewski in Brussels, Kevin Yao in Beijing and Timothy Ahmann in Washington; Editing by Susan Fenton)","pubdate":"Sun, 12 Apr 2015 13:40:43 +0530","newspaper":"Reuters"},{"title":"Greece may have blown best hope of debt deal","content":"\n\nBRUSSELS (Reuters) - Even if it survives the next three months teetering on the brink of bankruptcy, Greece may have blown its best chance of a long-term debt deal by alienating its euro zone partners when it most needed their support.\nPrime Minister Alexis Tsipras' leftist-led government has so thoroughly shattered creditors' trust that solutions which might have been on offer a few weeks ago now seem out of reach.With a public debt equivalent to 175 percent of economic output and an economy struggling to pull out of a six-year depression, Athens needs all the goodwill it can summon to ease the burden. It owes 80 percent of that debt to official lenders after private bondholders took a hefty writedown in 2012. Since outright debt forgiveness is politically impossible, the next best solution would be for Greece to pay off its expensive IMF loans early, redeem bonds held by the European Central Bank and extend the maturity of loans from euro zone governments to secure lower interest rates for years to come.\"This step would save Greece's budget billions of euros, while reforming the Troika arrangement, eliminating the IMF's and the ECB's financial exposure to Greece,\" said Jacob Funk Kirkegaard, senior fellow at the Peterson Institute for International Economics, who advocates such an arrangement.It would lower the effective interest rate on Greek debt to less than 2 percent, far less than Athens was paying before the euro zone debt crisis began in 2009, and radically reduce the principal amount to be repaid over the next decade, giving Greece fiscal breathing space to revive its economy.And unlike ideas floated by Greek Finance Minister Yanis Varoufakis to swap euro zone loans for GDP-linked bonds and ECB holdings with perpetual bonds, paying out the IMF and the ECB early would be legal and supported by precedent. But if the economics make sense for Greece, the politics no longer add up for its partners.A euro zone official said there had been exploratory talks with the previous conservative-led Greek government about such a plan last year, before then Prime Minister Antonis Samaras chose to bring forward an election he lost rather than complete a bitterly unpopular bailout program.\"Now it's a political non-starter,\" said a euro zone official. \"There's just no appetite in the euro zone for a grand bargain to take over Greece's debt to the IMF and the ECB.\"LEVERAGETsipras' denunciations of EU-prescribed austerity, demands for German war reparations and cosying up to Russian President Vladimir Putin, and Varoufakis' foot-dragging on reform negotiations and initial calls for a \"haircut\" on Greek debt, have dried up the reservoir of sympathy for Athens. Creditors like Germany, the Netherlands and Finland are bent on keeping the IMF involved as an enforcer of economic reform and fiscal discipline because they don't trust the Greeks to keep their word, nor the European Commission to hold them to it.\"They would prefer to provide debt relief on an annual basis so they keep leverage on Greece to stick to the program,\" said Miranda Xafa, senior scholar at the Centre for International Governance Innovation and a consultant on Greek debt.True, euro zone peers Ireland and Portugal, which received international bailouts after Greece, won EU agreement to pay off their costlier IMF loans faster, raising hopes in Athens.But Dublin and Lisbon were able to do so by borrowing more cheaply from private lenders after completing their bailout programs and regaining access to the capital markets.\"Ireland and Portugal are governments in difficulty, but they are not difficult governments,\" said Elena Daly, principal at EM Conseil, a Paris-based sovereign debt management adviser. Since Greece is stalling on its program and lacks market access, the only way it could pay off 24 billion euros owed to the IMF and redeem 27 billion euros of bonds held by the ECB would be for the euro zone's rescue fund to lend it the money.That in turn would require euro zone governments to convince their parliaments to risk more taxpayers' money than the roughly 170 billion euros they have already lent Greece in two bailouts totalling 240 billion euros.Many economists and euro zone officials believe Athens will anyway need a third bailout of around 30 billion euros this year, even though Tsipras insists Athens does not want that.Euro zone finance ministers promised in 2012 to \"consider further measures and assistance\" to ease Greece's debt provided it stuck to the terms of its program, which it has not done.Both Xafa and Daly said Tsipras had put himself in a near impossible position by making election promises incompatible with keeping the confidence of Greece's creditors.He needs to change the politics fast to have a chance of fixing the economics without resorting to capital controls, paying civil servants with IOUs or defaulting on foreign governments and being forced out of the euro zone, they argue.A referendum asking Greeks if they want to stay in the euro at the price of painful economic reforms, or a quick coalition change to bring in pro-reform centrists, may be his best options, even if they split his Syriza party.Greece's official creditors meanwhile are torn between wanting to keep it in the euro zone to avoid the precedent of a country exiting, and fearing that if Tsipras manages to roll back austerity and secure debt relief, he could embolden like-minded political forces in Ireland, Portugal and Spain. \u00a0\"So they want Greece to prosper and stay in the euro while at the same time wanting the new administration to fall on its face and become an object lesson for other electorates who may be toying with the idea of rebellion,\" Daly said.   (Writing by Paul Taylor; Editing by Susan Fenton)","pubdate":"Sun, 12 Apr 2015 13:35:12 +0530","newspaper":"Reuters"},{"title":"China-led AIIB will be lean, clean and green - official","content":"\n\nBEIJING (Reuters) - The China-led Asian Infrastructure Investment Bank (AIIB) will be lean, clean and green, its interim chief said, playing down concerns over transparency and standards governing the institution.\nThe $50 billion bank, expected to start operations by the end of the year, is attracting a growing list of countries, from Britain to India to New Zealand.The AIIB is seen as a potential rival to established lenders the World Bank and Asian Development Bank, which are dominated by the United States and Japan.\"Lean is cost effective; clean, this bank will have zero- tolerance on corruption; green means it's going to promote the economy,\" China's Xinhua news agency quoted Jin Liqun, secretary general of the bank's multilateral interim secretariat, telling a forum in Singapore on Saturday.The bank would not be run politically, Jin said. \"AIIB is a bank, not a political organization or political alliance. This guaranteed that it would be impossible to operate it in an untransparent way,\" he said.More than 40 countries have applied to join the AIIB, with the United States and Japan being notable absentees. The United States, worried about China's growing diplomatic clout, suffered a diplomatic reverse after trying to dissuade its allies from joining the Chinese initiative.Washington has questioned whether the AIIB will have sufficient standards of governance and environmental and social safeguards. (Reporting by Michael Martina; Editing by Simon Cameron-Moore)","pubdate":"Sun, 12 Apr 2015 07:59:37 +0530","newspaper":"Reuters"},{"title":"Volkswagen in full-blown crisis as CEO vows to fight: sources","content":"\n\nBERLIN (Reuters) - Volkswagen (VOWG_p.DE) has plunged into a full-blown leadership crisis after Chief Executive Martin Winterkorn let it be known on Saturday he will fight for his job even though the carmaker's chairman has reportedly withdrawn confidence in the CEO.\nFerdinand Piech, who has spent almost 22 years at the helm of VW, nine as CEO, said he has \"distanced\" himself from Winterkorn, Der Spiegel reported on Friday, exposing unusual dissent between VW's two top leaders.Piech's remark is viewed by analysts as undermining the CEO's prospects of renewing his contract, due to expire in December 2016 and to become chairman himself when Piech retires.It comes as VW is seeking to cut billions of euros of costs to boost profitability at its troubled core division while struggling to forge a long-planned alliance of truck brands and to revive operations in the United States.    Winterkorn, who in his eight-year reign has overseen VW's transformation from a struggling German group saddled with high labor costs into one of the world's most successful automotive companies, will not run away from his job and feels emboldened by support from strong allies, two sources at Wolfsburg-based VW told Reuters on Saturday.A spokesman for Volkswagen declined to comment on the report. Piech's office in Salzburg, Austria, didn't return calls seeking comment.   Germany's Frankfurter Allgemeine Sonntagszeitung reported earlier on Saturday that Winterkorn would not allow himself to be edged out of VW, citing unnamed sources at the carmaker who referred to his successful track record as CEO.Under Winterkorn's watch, VW has expanded from eight to twelve brands, more than doubled the number of production plants to over 100 and boosted sales 64 percent to a record 10.1 million vehicles last year.The state of Lower Saxony, where VW is based and which owns a fifth of VW's voting shares, as well as the carmaker's labor leaders who represent half the 20 members on VW's supervisory board on Friday came out backing Winterkorn.Together they have majority control of the panel which appoints and dismisses executives. Important decisions such as the building and shuttering of plants need a two-thirds majority.    Still, VW's chairman has a track record of undermining his own executives. In a Wall St Journal interview published in March 2006, Piech, already chairman of the supervisory board at the time, said it was an \"open issue\" whether the contract of then-CEO Bernd Pischetsrieder would be extended because of opposition from labor representatives.In November 2006, VW announced that Pischetsrieder had agreed to resign, and in 2007 it installed Winterkorn, then a close ally of Piech and head of VW's Audi division.In 2009, Piech publicly damaged the reputation of Porsche CEO Wendelin Wiedeking and chief financial officer Holger Haerter. Both executives quit within two months. (Reporting by Andreas Cremer; Editing by Madeline Chambers and Rosalind Russell)","pubdate":"Sat, 11 Apr 2015 18:58:02 +0530","newspaper":"Reuters"},{"title":"German economy minister plays down boost from EU-U.S. trade deal: magazine","content":"\n\nBERLIN (Reuters) - Germany's economy minister warned on Saturday against overblowing expectations for an economic boost from a trade deal between the United States and European Union but said the pact was needed to set high common standards for consumers.\nThe European Commission is trying to finalize a deal on the Transatlantic Trade and Investment Partnership (TTIP), which some experts say could generate $100 billion a year in additional economic output on both sides of the Atlantic. It would eliminate all tariff barriers between the United States and EU members, which together account for almost half the global economy.\"I don't believe in the wondrous calculations for economic growth from (the trade deal) TTIP,\" said Sigmar Gabriel, also chairman of Germany's Social Democrats (SPD) which shares power with Chancellor Angela Merkel's conservatives. \"All the estimates about its impact ... give an impression of voodoo economics,\" Gabriel told Focus weekly.However, Gabriel, who has long expressed reservations about some aspects of TTIP, said Europe urgently needed a deal.\"Our companies would profit because, with equal standards, they wouldn't have to go through approval procedures twice.\"\"Overall, Europe would profit because we could influence the standards for world trade for the coming 20 or 30 years,\" he said, adding without a deal, other countries, including China, would end up setting environmental and consumer standards. Gabriel repeated the SPD's concerns about allowing U.S. mulitnationals to use so-called investor-to-state dispute settlement mechanisms to challenge Europe's food, labor and environment laws on the grounds that they restrict free trade.The United States will not accept a deal without that.Asked by Focus when TTIP could be finalised, Gabriel said the view in Brussels was that hopes a deal could be concluded this year were very ambitious. (Reporting by Madeline Chambers; Editing by Susan Fenton)","pubdate":"Sat, 11 Apr 2015 18:26:56 +0530","newspaper":"Reuters"},{"title":"Shock therapy to spur wave of mergers among Italy's 'popolari' banks","content":"\n\nMILAN\/VICENZA (Reuters) - Italy's biggest cooperative banks are bracing for a wave of mergers following a government reform that forces them to convert into joint stock companies within 18 months.\nThe reform aims to strengthen Italy's banking sector, which fared the worst in a Europe-wide health check of lenders last year. The government says it will also ultimately support bank lending to businesses, which has been shrinking for the past three years as Italy grappled with its longest post-war recession.Its most immediate effect will be to spur a long-delayed consolidation by making it easier for ownership of the so-called \"popolari\" banks to change, bankers say. They say the shake-up could also help find a buyer among the cooperative banks for troubled Monte dei Paschi di Siena (BMPS.MI) or Carige (CRGI.MI), the two Italian lenders that emerged as the weakest in the European checks.\"The measure has had the effect of an electric shock for the popolari,\" Piero Giarda, chairman of the supervisory board of Banca Popolare di Milano (PMII.MI), told a shareholder meeting on Saturday.  The bank is one of the 10 largest cooperative lenders affected by the reform, which was approved by parliament last month and scraps voting rules giving shareholders one vote each regardless of the size of their stake. The others are UBI (UBI.MI), Banco Popolare (BAPO.MI),  Popolare dell'Emilia Romagna (EMII.MI), Popolare di Vicenza, Veneto Banca, Popolare di Sondrio (BPSI.MI), Credito Valtellinese (PCVI.MI), Popolare di Bari, Popolare dell'Etruria e del Lazio (PEL.MI). Talks over possible tie-ups have already started, at least informally. \"We are talking to the cooperative bank world that has the same problems as us,\" Banco Popolare Chairman Carlo Fratta Pasini told shareholders.\"We're not looking to take over anyone, there are no predators and preys, we're just trying to find out whether there are traveling companions.\"Critics of the \"one-head, one-vote\" rule say it, together with ownership restrictions and limits on proxy voting, have distorted governance at the banks by allowing minority shareholders to block unwanted change. The rules have also long been seen as an obstacle to mergers and to attracting new investors. The expected wave of consolidation will help banks shoulder rising costs as regulators push lenders to increase their loss-absorbing capital, popolari executives say. Some also see domestic tie-ups as a defensive move against possible foreign takeovers. \"Looking for a partner, listed or not listed, is the most logical and safest solution for our future,\" said Gianni Zonin, chairman of unlisted Popolare di Vicenza. He said he hoped regional rival Veneto Banca \"accepts this invitation.\" Both lenders have hired investment banks to advise them on strategic options. They have also written down the value of their shares by 23 percent in an unusual move that is seen as smoothing the way for a possible tie-up.Monte dei Paschi, which is due to carry out a 3-billion euro rights issue to plug a capital shortfall laid bare by last year's review, said on Friday it had been told by the European Central Bank it also needs to find a merger partner. Bankers say UBI would be the most likely domestic candidate to take over the Tuscan bank.Another combination under consideration is between Popolare Milano and Banco Popolare, and possibly also with Popolare Emilia Romagna, according to a source close to the matter. The CEO of Banco Popolare has said Popolare Milano would be his ideal merger candidate. The Milan-based bank declined to comment.     (additional reporting by Gianluca Semeraro in Novara, Andrea Mandala in Milan. Editing by Jane Merriman)","pubdate":"Sat, 11 Apr 2015 18:06:46 +0530","newspaper":"Reuters"},{"title":"France's Vivendi says will not bid for Lagardere","content":"","pubdate":"Sat, 11 Apr 2015 16:27:47 +0530","newspaper":"Reuters"},{"title":"GE to sell bulk of finance unit, return up to $90 billion to investors","content":"\n\n(Reuters) - General Electric Co will shed most of its finance unit and return as much as $90 billion to shareholders as it becomes a \u201csimpler\u201d industrial business instead of an unwieldy hybrid of banking and manufacturing.\nThe company on Friday outlined a restructuring plan that includes buying back up to $50 billion of its shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations. GE stock jumped 8.5 percent.\"The stock has been under-owned by institutional investors, and that's going to change now,\" said Tom Donino, co-head of equity trading at First New York Securities.The repurchase program, which will be partly funded by $35 billion through money returned from GE Capital, is the second-biggest in history after Apple Inc's $90 billion plan. GE, which had 10.06 billion shares outstanding on Jan. 31, said it expected to reduce that by as much as 20 percent to 8 billion to 8.5 billion by 2018.\n        \n        In all, GE said it planned to shed $275 billion in GE Capital assets. That includes the previously announced spinoff of its Synchrony Financial credit card unit, the real estate transaction announced on Friday, and future sales of commercial lending and consumer banking businesses with assets of about $165 billion.The company plans to keep $90 billion in finance assets directly related to selling its products such as jet engines, medical equipment and power generation and electrical grid gear.GE has forecast earnings of $1.70 to $1.80 per share for this year, including 60 cents from GE Capital, but expects profit to be \u201csubstantially higher\u201d in 2018, executives said on a conference call with analysts. Shrinking GE Capital will reduce earnings by 25 cents per share, they said, but the stock buybacks should offset that impact.The company already had a significant number of inquiries about GE Capital units before Friday\u2019s announcement, said Keith Sherin, the finance unit's chief.\n        \n        Blackstone Group LP and Wells Fargo & Co confirmed that they were buying most of the assets of GE Capital Real Estate for about $23 billion.\u00a0\u00a0\u00a0 This is the biggest deal in the commercial property market since Blackstone's acquisition of office landlord Equity Office Properties Trust in 2007 for $39 billion, including debt.FOCUS ON INDUSTRIALThe moves announced on Friday will dramatically reduce GE\u2019s exposure to lending and other financial businesses.GE Chief Executive Officer Jeff Immelt told investors the company would try to generate 90 percent of its profits from industrial operations by 2018. He had previously forecast that share would grow to 75 percent by 2016 from 55 percent in 2013.\u201cWe just think the market timing is very good vis-a-vis the value of financial service assets,\u201d Immelt said in an interview. \u201cThere have been moments in the past when there weren\u2019t a lot of buyers. Now there are.\u201d Immelt and other GE executives said they planned to spend $3 billion to $5 billion a year on industrial acquisitions.GE said it could return up to $90 billion to investors through a combination of dividends, the $50 billion in share buybacks, and completion of the Synchrony spinoff planned for late this year.\tExecutives gave several reasons for GE's accelerated retreat from financial businesses. One is that since the financial crisis, it has become more difficult for GE to fund its lending operations.GE funded many of its loans and leases by borrowing money from bond markets. During the financial crisis it lost access to that funding, bringing it uncomfortably close to running out of cash. Lenders like GE Capital and CIT Group Inc, which cannot rely on bank deposits to fund their assets, have had to rethink the way they do business since the crisis. Many decided to either shed assets or become banks.GE Capital\u2019s size and the potential risks in its lending portfolio made it subject to government regulation as a systemically important financial institution. GE said it would apply to escape that oversight in 2016 as it reduces the financial business' size. GE said it would take after-tax charges of about $16 billion for the restructuring in the first quarter, of which about $12 billion would be non-cash.Shares of GE were sluggish for the past year despite previous moves to reposition itself around the industrial businesses. Still, Friday\u2019s more dramatic move away from finance caught some analysts by surprise.\"What we did not expect was the speed with which management would move to undertake this transformation,\" Sanford Bernstein analyst Steven Winoker wrote. \"We view today's announcement as an overwhelming positive for the company.\"During the conference call, Barclays analyst Scott Davis told executives that while he had been a critic, \u201cthis is good stuff ... I guess you can keep your jobs a little longer.\"JPMorgan Chase & Co and Centerview Partners provided general financial advice to GE, while Bank of America Corp and Kimberlite Advisors advised on the real estate deal. Eastdil Secured and Wells Fargo Securities were advisers to Blackstone and Wells Fargo. (Additional reporting by Sagarika Jaisinghani in Bengaluru; Editing by Lisa Von Ahn)","pubdate":"Sat, 11 Apr 2015 15:38:13 +0530","newspaper":"Reuters"},{"title":"Markets have a quiet start; Nifty hovers at 8,775","content":"
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\nThe markets are listless in early trades despite the encouraging industrial output in February and the positive trends across the Asian bourses.
\nThe markets are listless in early trades despite the encouraging industrial output in February and the positive trends across the Asian bourses.At 9:40AM, the Sensex is quoting at 28,881, up two points and the Nifty is at 8775, down five points.In the IIP numbers announced post market hours on Friday, the industrial growth jumped to a three-month high of 5% in February from 2.8% in January, with strong performances in almost every segment, barring consumer durables and intermediate goods. February was only the third month in 2014-15 to have recorded industrial growth of five per cent or more.Among Asian peers, the Chinese and Hong Kong markets are having a good session of trade.Markets had registered gains last week after global rating agency Moody\u2019s raised India\u2019s credit outlook to \u2018positive\u2019 from \u2018stable\u2019, anticipating policymakers' actions will lift India\u2019s economic growth.
\n\u00a0
\nThe rupee has opened flat at 62.33 per dollar on Monday against 62.31 on Friday.Global MarketsThe Chinese markets are leading gains to touch fresh seven-year highs early Monday. In Hong Kong, the Hang Seng index has jumped 0.4% to its highest level since January 2008 and South Korea's Kospi index has hit its highest level since August 2014. On the other hand, Japan's Nikkei is struggling to find momentum shy of the key 20,000 mark.The major US share indices ended with marginal gains with General Electric leading the gains on Wall Street after the global major announced plans to divest GE Capital business and also buyback of shares upto $50 billion. The Dow Jone gained 0.6% to end above 18,000 at 18,057.65, the tech-laden Nasdaq gained 0.4% at 4,995.98 and the broader S&P 500 ended up 0.5% at 2,102.06.","pubdate":"Mon, 13 Apr 2015 09:40:00 +0530","newspaper":"Business Standard"},{"title":"Shriram EPC surges on conversion of CDR loans to equity","content":"
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\n    Shares of Shriram EPC surged nearly 15% to Rs 45.45 on the Bombay Stock Exchange after the company said that a part of the loans under corporate debt restructuring (CDR) package have been converted to equity.Shares of Shriram EPC surged nearly 15% to Rs 45.45 on the Bombay Stock Exchange after the company said that a part of the loans under corporate debt restructuring (CDR) package have been converted to equity.The board has approved conversions of funded interest term loan to the maximum of Rs 313 crore of the CDR lenders into equity shares, the company said in a release after market hours on Friday.The board also approved issue of equity shares in lieu of the conversion to the maximum of Rs 185 crore to the CDR lenders and issue of equity shares to promoters, Shriram Industrial Holdings to the extent of Rs 389 crore on a preferential basis, the release added.The stock opened at Rs 42 and touched a high of Rs 46.65. At 9:34AM, over 63,000 shares were traded on the Bombay Stock Exchange.","pubdate":"Mon, 13 Apr 2015 09:32:00 +0530","newspaper":"Business Standard"},{"title":"Sanghvi Movers hits 52-week high on fund buying","content":"
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\n\t
\n\tShares of Sanghvi Movers has surged 7% to Rs 310, also its 52-week high on the Bombay Stock Exchange (BSE), in early morning trade after the domestic mutual funds bought nearly three million equity shares or 6% stake in the company through open market purchase.On Friday, April 10, 2015, HDFC Mutual Fund bought 1.7 million shares, Sundaram Mutual Fund acquired 1.07 million shares and Reliance Mutual Fund purchased 0.75 million shares of Sanghvi Movers at an average price of Rs 261 per share, the BSE bulk deals data shows.Meanwhile, Olympus India Holdings Limited sold its entire 6.21% or 2.68 million equity shares at price of Rs 261 per share, data shows.Till 0916 hours, a combined 61,235 shares changed hands on the counter on the BSE and NSE.
\n\t\u00a0
\n","pubdate":"Mon, 13 Apr 2015 09:18:00 +0530","newspaper":"Business Standard"},{"title":"Analysts see limited impact of base rate cuts on banks' margins","content":"
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\n\t
\n\tAt a time when most bankers are crying foul about the likely negative impact of base rate cuts on their net interest margins (NIM), analysts believe otherwise. Firstly, most of the banks have already cut their deposit rates in select maturities over the last 4-5 months.\u00a0
\n
\n\t\"The cuts in deposit rates coupled with reasonable liquidity and lower wholesale funding rates has been leading to reduction in cost of funds and was reflected in better margins in December 2014 quarter and likely in March 2015 quarter as well,\" says Manish Karwa, research analyst at Deutsche Bank. He says that while margin impact of these cuts will be limited, any further rate cuts over the course of the year will impact NIMs for the banks.\u00a0
\n
\n\tAjay Srinivasan, Director, CRISIL Research, echoes this view. \"Lowering of base rate indicates the cost of funds for banks has declined, since base rate is calculated using deposit rates as the benchmark. Thus, decline in base rate would not impact net interest margins (NIMs).\"\u00a0
\n
\n\tOn the contrary, CRISIL Research expects NIMs to improve slightly in 2015-16, backed by a gradual economic recovery and improving proportion of retail loans, which have higher yields, he says.
\n
\n\tLast week, three large banks- SBI, ICICI Bank and HDFC Bank cut their base rates by 15-25 basis points post RBI's monetary policy. Experts believe these cuts were long overdue given that RBI has already cut rates by 50 basis points in 2015 so far. While other banks could also trim their base rates, the impact of these cuts will be limited.\u00a0
\n
\n\tState Bank of India officials estimate about Rs 1,200-1,300 crore hit on interest income due to 15 basis point cut in base rate. Analysts believe SBI could witness a 4-5 basis points NIM impact while for ICICI Bank, the hit could be of about 5-6 basis points. In case of HDFC Bank, the impact will be negligible given that a relatively low (20%) proportion of its loan book is linked to the base rate. In case of ICICI Bank and SBI, this ratio stands at 50% and 80%, respectively. However, NIM movement is not contingent on just rates and is determined by other key factors such as credit costs as well.
\n
\n\t\t\t\tHOW THEY STACK UP
\n\t\t\t
\n\t\t\t\t\u00a0
\n\t\t
\n\t\t\t\tBank
\n\t\t\t
\n\t\t\t\tNIM (%)
\n\t\t\t
\n\t\t\t\tBase rate (%)
\n\t\t
\n\t\t\t\tSBI
\n\t\t\t
\n\t\t\t\t3.2
\n\t\t\t
\n\t\t\t\t9.85*
\n\t\t
\n\t\t\t\tPNB
\n\t\t\t
\n\t\t\t\t3.2
\n\t\t\t
\n\t\t\t\t10.25
\n\t\t
\n\t\t\t\tBoB
\n\t\t\t
\n\t\t\t\t2.2
\n\t\t\t
\n\t\t\t\t10.25
\n\t\t
\n\t\t\t\tICICI Bank
\n\t\t\t
\n\t\t\t\t3.5
\n\t\t\t
\n\t\t\t\t9.85*
\n\t\t
\n\t\t\t\tHDFC Bank
\n\t\t\t
\n\t\t\t\t4.4
\n\t\t\t
\n\t\t\t\t9.75*
\n\t\t
\n\t\t\t\tAxis Bank
\n\t\t\t
\n\t\t\t\t3.9
\n\t\t\t
\n\t\t\t\t9.95*
\n\t\t
\n\t\t\t\tNIM: Net interest margin as on 31st December, 2014
\n\t\t\t
\n\t\t\t\t\u00a0
\n\t\t\t
\n\t\t\t\t\u00a0
\n\t\t
\n\t\t\t\t*Revised base rates
\n\t\t\t
\n\t\t\t\t\u00a0
\n\t\t\t
\n\t\t\t\t\u00a0
\n\t\t
\n\tMeanwhile, for the quarter ending March 2015, Vaibhav Agrawal, VP Research \u2013 Banking, Angel Broking, says, \"We believe banks' NIMs should improve in the March 2015 quarter due to 3-4 basis points savings in cost of funds. Notably, March quarter would have the full impact of deposit rate cuts and hence may aid NIMs. However, higher credit costs on account of increased non-performing assets could offset these gains to some extent\", he says. \u00a0
\n
\n\tIDBI Bank executives, too, indicate that when clubbed with credit costs - amounts set aside for stressed loans - NIM impact will be more pronounced. Thus, public sector banks which have much higher credit costs as compared to their peers in the private sector will witness higher margin contraction. The actual impact though will vary from one bank to another.
\n
\n\t\"We believe bank-specific NIMs would vary quite meaningfully. Historical margin profiles show that the movement of bank-specific margins in an easing\/tightening cycle are dependent on other factors as well, such as share of fixed rate loans, share of wholesale deposits and changing asset-liability profile\", analysts at Ambit Capital said in a recent report. They believe IndusInd Bank is best placed to protect its margins due to its high fixed rate portfolio, higher share of floating rate liabilities and improving liabilities.
\n
\n\tWhile most analysts believe the margin impact for banks will be limited, some have a contrarion view. Adarsh Parasrampuria of Nomura says, \"Given that banks have cut deposit rates by 25-50 basis points in the last 6-9 months, we would expect them to accelerate base rate cuts now. This will have a negative impact on bank margins, especially for PSUs, in the interim. We believe bank margins, especially for corporate\/PSU banks, will be negatively impacted, due to faster transmission in a falling rate environment. The impact on retail private banks will be lower, given 40-50% of the loan book is fixed in nature.\"","pubdate":"Mon, 13 Apr 2015 08:52:00 +0530","newspaper":"Business Standard"},{"title":"Nifty seen heading towards 8,800; HDFC, SBI in focus","content":"
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\n    
\nMarkets are likely to open higher amid encouraging industrial output in February while select financials will be in focus after they announced cut in home loan rates over the weekend. Meanwhile, the government will release data for March consumer price inflation later today.
\nMarkets are likely to open higher amid encouraging industrial output in February while select financials will be in focus after they announced cut in home loan rates over the weekend. Meanwhile, the government will release data for March consumer price inflation later today.At 8:25AM, the early indicator SGX Nifty was up 10 points at 8,827India\u2019s industrial output grew 5% for the month of February, its strongest rise in three quarters, on back of strong growth in capital goods and consumer goods sector, data released by the Central Statistics Office on FridayGlobal MarketsAsian markets were trading flat as investors booked profits at higher levels after some of the benchmark share indices in the region such as Japan's Nikkei hit multi-year highs last week. Japanese shares were trading flat after the Nikkei topped the 20,000 mark for the first time in 15 years last week. The benchmark was trading below 20,000 at 19,882 down 0.1%. Hong Kong's Hang Seng firmed up further after closing at 7-year high on Friday. However, shares in Hong Kong firmed up with the benchmark Hang Seng was up 0.3%.
\nMeanhile, China's trade data is expected later in the day. The benchmark Shanghai Composite was up 1.3%.Major US share indices ended with marginal gains with General Electric leading the gains on Wall Street after the global major announced plans to divest GE Capital business and also buyback of shares upto $50 billion. The Dow Jone gained 0.6% to end above 18,000 at 18,057.65, the tech-laden Nasdaq gained 0.4% at 4,995.98 and the broader S&P 500 ended up 0.5% at 2,102.06.Stocks in focusMortage lender HDFC will be in focus after it announced cut in home loan rates by up to 20 basis points to 9.9%. State-owned banking major SBI will also be in action after it reduced interest rate on home loans by up to 25 basis points for new borrowers.Jindal Steel, Adani Power would be in focus on reports their allocated coal blocks are likely to be referred to the Competition Commission of India.Larsen & Toubro may gain after the engineering major said it has signed an agreement with AREVA for Jaitapur Nuclear Power Project.Info Edge may see some action after the company said it has invested Rs 155 crore in Zomato Media Pvt Ltd thereby increasing its stake to 50.1% in Zomato.Shriram EPC would be in focus amid conversion of the funded interest term loan to the maximum of Rs. 313 Crores of the CDR Lenders into equity shares of the company.Sanghvi Movers may gain after several mutual fund houses such as Reliance MF, Sundaram MF and HDFC MF bought shares in the company through block deals on Friday.","pubdate":"Mon, 13 Apr 2015 08:25:00 +0530","newspaper":"Business Standard"},{"title":"Domestic portfolio managers hail Jaitley call","content":"
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\nDomestic portfolio management service (PMS) providers are in the process of setting up offshore funds to tap investors from financial centres like Singapore, Mauritius and Dubai. The move follows the Union Budget proposal to allow domestic fund managers to also manage offshore funds without adverse tax implications.
\nDomestic portfolio management service (PMS) providers are in the process of setting up offshore funds to tap investors from financial centres like Singapore, Mauritius and Dubai. The move follows the Union Budget proposal to allow domestic fund managers to also manage offshore funds without adverse tax implications.According to sources, brokerages Edelweiss, Karvy, Centrum and IndiaNivesh are looking to start offshore funds, domiciled abroad but managed by their PMS fund mangers. Some have already approached the market regulator, Securities and Exchange Board of India (Sebi), for a go-ahead.Earlier, domestic fund managers managing offshore money were construed as \"permanent establishment\" and thereby exposed them to additional tax liability. As a result, many operated from abroad, though they managed India investments from there.\"We have filed with Sebi. We are confident that whatever the issues on the tax front will be resolved. The demand from foreign investors to invest into Indian equities is tremendous. We are getting queries from places as far as Europe at this point,\" said Sandeep Jain, director, IndiaNivesh.Sector officials said there was a sharp increase in demand from investors in offshore jurisdictions, including Hong Kong and Singapore, to invest in Indian offerings. \"At this point, very established players are looking to launch offshore funds,\" said Swapnil Pawar, chief investment officer, Karvy Capital.Offshore funds and managers of these funds are required to fulfill certain requirements, specified in the current Finance Bill. These funds have to maintain a monthly average corpus of Rs 100 crore. The participation of Indians in such funds should not exceed five per cent of the corpus. There should be a minimum of 25 investors in each fund.\"The challenge for such funds would be the eligibility requirement, for funds and their managers. There is also some ambiguity on tax-related issues,\" said Pranay Bhatia, partner-direct tax, BDO India.Domestically, PMS providers need to have a minimum net worth of Rs 2 crore. They mainly cater to wealthy clients and must have a minimum size of Rs 25 lakh.Experts said starting of offshore funds would be an easy extension of the existing business for PMS providers. More entities are awaiting further clarity on the tax front before taking a decision. Clarifications from the Central Bureau of Direct Taxes are expected soon, they say.The interest generated by the Indian market among investors abroad in the past year has created interest among PMS providers on tapping this relatively unexposed business opportunity.\"The present taxation structure has an inbuilt incentive for fund managers to operate from offshore locations. To encourage such offshore fund managers to relocate to India, I propose to modify the permanent establishment (PE) norms to the effect that mere presence of a fund manager in India would not constitute PE of the offshore funds, resulting in adverse tax consequences,\" Finance Minister Arun Jaitley had said in his Budget speech on February 28.Sectoral officials also said in cases where PMS providers already have offshore funds, many fund managers have started returning to India. They named Motilal Oswal and ASK Wealth management in this regard.EXPANDING WINGS
\n\t\tFour portfolio management service providers looking at launching offshore products
\n\t
\n\t\tEdelweiss, Centrum, Karvy, IndiaNivesh all said to be considering the launch of these products
\n\t
\n\t\tOfficials said trigger is the Budget proposal to allow fund managers to locate back to India
\n\t
\n\t\tEarlier, fund managers were located in financial hubs like Singapore and Mauritius where these funds were launched
\n\t
\n\t\tSectoral players said sharp increase in demand for these products from clients in Singapore, Hong Kong and Dubai
\n","pubdate":"Mon, 13 Apr 2015 00:26:00 +0530","newspaper":"Business Standard"},{"title":"More reforms likely for debt market in FY16","content":"
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\n    
\nThis financial year, 2015-16, seems set to be one of debt market reform. Experts believe there are many positive steps in the offing after the already announced measures.
\nThis financial year, 2015-16, seems set to be one of debt market reform. Experts believe there are many positive steps in the offing after the already announced measures.The Street believes credit default swaps (CDS) could be relaunched, steps to enhance liquidity in corporate bonds might be announced and a full-fledged and screen-based trading system for corporate bonds could be put in place.In the Reserve Bank of India's (RBI) bi-monthly monetary policy review last week, it had spoken of\u00a0 formulating a scheme for market making by primary dealers in semi-liquid and illiquid government securities. \"A similar step could perhaps be taken by asking merchant bankers in corporate bonds to provide liquidity. Today, once the bonds get sold, these merchant bankers no longer provide liquidity to the market,\" said R Sivakumar, head of fixed income and products, Axis Mutual Fund.RBI also announced steps to boost retail participation in government securities. These include a web-based solution for all mid-segment and retail investors who have gilt accounts to participate in the G-Sec market, and providing them direct access to both primary and secondary market platforms without any intermediary. For this, alternate channels of distribution in G-sec would be created, RBI said.\u201cRetail participation in G-secs will take a long time, as fixed deposit rates are more attractive. There is scope for reforms in the 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.Currently, secondary market activity in corporate bonds is negligible when compared with G-sec volumes. Besides, though CDS made its debut in 2011, the instruments failed to take off. CDS are instruments where the buyer receives credit protection, while the seller of the swap guarantees the creditworthiness of the security.\u201cThe CDS market is needed because those who invest in corporate bonds are exposed to interest rate and credit risks. We might also see reissue of bonds by companies, so that there is more liquidity in the market,\u201d said K P Jeewan, head of fixed income, Karvy Stock Broking.According to Nirakar Pradhan, chief investment officer of Future Generali India Life Insurance, the corporate bond market also needs a more transparent settlement mechanism.","pubdate":"Mon, 13 Apr 2015 00:25:00 +0530","newspaper":"Business Standard"},{"title":"Rollover of MFs beyond 36 months not capital gains: CBDT","content":"
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\nIn a major relief to investors, the rollover of mutual fund fixed maturity plans (FMPs) beyond 36 months will not attract capital gains. A tax of 20 per cent will be charged at the time of redemption of plans. The Central Board of Direct Taxes has issued the clarification with regards to taxation on rollover of FMPs beyond 36 months.
\nIn a major relief to investors, the rollover of mutual fund fixed maturity plans (FMPs) beyond 36 months will not attract capital gains. A tax of 20 per cent will be charged at the time of redemption of plans. The Central Board of Direct Taxes has issued the clarification with regards to taxation on rollover of FMPs beyond 36 months.\u201cThe rollover...will not amount to transfer as the scheme remains the same. Accordingly, it is hereby clarified that no capital gains will arise at the time of exercise of the option by the investor to continue in the same scheme. The capital gains will, however, arise at the time of redemption of the units or opting out of the scheme, as the case may be,\u201d CBDT said.FMPs are closed-ended funds having a fixed maturity date wherein the duration of investment is decided upfront.Finance Minister Arun Jaitley had last increased the concessional capital gains tax rate from 10 to 20 per cent on debt-oriented mutual funds and also the holding period from 12 months to 36 months. Short-term capital gains are taxed at income tax rate of individuals.As a result, gains arising out of any investment in the units of FMPs made before July 7, 2014 and sold\/redeemed after the date would be taxed as short-term capital gains if the unit was held for a period of 36 months or less.To enable the FMPs to qualify as long-term capital asset, some Asset Management Companies (AMCs) administering mutual funds have offered extension of the duration of the FMPs to a date beyond 36 months from the date of original investment by providing an option to investors to rollover of FMPs.Representations were received in the CBDT seeking clarification regarding applicability of tax on capital gains at the time of roll over of FMPs.Market regulator SEBI has also said the scheme remains the same in case of roll-over and does not constitute a different scheme.","pubdate":"Mon, 13 Apr 2015 00:24:00 +0530","newspaper":"Business Standard"},{"title":"Edible oils outlook: Is the worst over for the sector?","content":"
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\n    
\nDuring the oilseed year 2014-15, total soymeal exports between October 2014 and January 2015 were a dismal 438,135 tonnes, compared with 1.5 million tonnes during the corresponding period in 2013-14. The 70 per cent fall in soymeal exports is sharp and is raising viability concerns for crushers. Soymeal is a by-product in the process of crushing soybean to produce soy oil. Lower crushing will lead to higher import of soy oil. Import of soy oil have, in fact, grown steadily over the years and touched 1.95 million tonnes in 2014-15.
\nDuring the oilseed year 2014-15, total soymeal exports between October 2014 and January 2015 were a dismal 438,135 tonnes, compared with 1.5 million tonnes during the corresponding period in 2013-14. The 70 per cent fall in soymeal exports is sharp and is raising viability concerns for crushers. Soymeal is a by-product in the process of crushing soybean to produce soy oil. Lower crushing will lead to higher import of soy oil. Import of soy oil have, in fact, grown steadily over the years and touched 1.95 million tonnes in 2014-15.Soymeal exports are usually robust during October-February. They start declining after this period, when importers (our foreign customers) shift to other origins like South America, which begins harvesting a new soybean crop. With production rising and demand falling year-on-year, soybean stocks at the end of 2014-15 are expected to be higher if the demand doesn't see any pick-up.With the Indian soymeal season drawing to an end on a drastically poor note and world supplies set to rise in the coming days, Indian soymeal is set to face severe headwinds.If we take a look at the palm oil scenario, the production cycle in Malaysia is likely to turn to a high-yielding phase from March, recovering from the setbacks of weather anomalies, which will add to the supply side. If the weather remains conducive through the year, we could see production estimates revised higher. Production for 2015 is expected to be 20.5 mt, up from 20.2 mt in 2014. Also, one must watch out for crude oil prices and implementation of the bio-diesel mandate. If crude oil prices continue to remain under pressure, it would eventually make production of bio-diesel unviable. This would be mean further addition to the surplus palm oil available for consumption.After a sharp fall in crude oil prices, we have seen a drop in bio-diesel production. But if crude oil bottoms out, which looks likely, and gradually moves up, it will lead to an uptick in demand from bio-diesel sector.We will see arrivals of soybean from the world's two largest producing countries in full swing. This would mean higher crushing and, thereby, higher soy oil production.In India, we would also witness higher arrivals of rabi oilseeds from mid-March, likely to add to domestic vegetable oil supplies.According to the latest data, India's vegetable oil stockpiles stand above two mt, a level not seen at this point of time over the past few years. Therefore, higher supply of oils will dominate the market in 2015. However, prices of edible oils, which have remained under pressure, seem to have discounted the glut.The focus will be on sowing in the US and India. Any delay or drop in sowing can support prices. Pick up in Chinese demand and gradual increase in crude oil prices can also trigger an uptick in edible oil prices.
\n\tThe author is head of commodities research, Nirmal Bang","pubdate":"Mon, 13 Apr 2015 00:18:00 +0530","newspaper":"Business Standard"},{"title":"Retail investors miss out on REC offer for sale","content":"
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\n    Most retail investors failed to get any allotment in the Rural Electrification Corp (REC) offer for sale (OFS) conducted last week. Most retail bids were made around the floor price of Rs 315, while the allotment price was nearly Rs 330. The retail segment for the first time saw aggressive bidding and was subscribed nine times.Most retail investors failed to get any allotment in the Rural Electrification Corp (REC) offer for sale (OFS) conducted last week. Most retail bids were made around the floor price of Rs 315, while the allotment price was nearly Rs 330. The retail segment for the first time saw aggressive bidding and was subscribed nine times.
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\n\"Most investors bid low and were not able to revise their bid prices later. Also, a lot of HNIs made applications in the retail category and pocketed a neat 5 per cent arbitrage,\" said a broker.Pramerica joins the Deutsche Mutual Fund sale raceThe race to buy Deutsche Mutual Fund is getting hotter by the day. Since January, YES Bank was the only one doing due-diligence. Industry sources said Pramerica has also joined the race since late March. \"For YES Bank, it will be a good entry point because it will become number 20 in terms of average assets under management. For Pramerica, it means a significant rise in the pecking order as it has collected Rs 2,300 crore since its launch,\" said an industry player. As in March 2015, Deutsche Mutual Fund was managing Rs 22,000 crore of assets.'Bright lines' to deal with 'control' conundrumThe regulator is taking notice of representations asking for more clarity on what defines 'control' over a company. Currently, the definition is based on a set of defined principles, rather than any set rules. The application of these principles seem open to multiple interpretations of the term when someone buys a chunk in a listed company. Whether or not the control has been acquired can significantly increase the cost of acquisition, leading to a lot of confusion. It is an issue the regulator is looking to address, according to its last board meeting minutes. Sebi is now looking to define 'bright lines' which would provide a single objective application of the word control.","pubdate":"Mon, 13 Apr 2015 00:11:00 +0530","newspaper":"Business Standard"},{"title":"Equity MFs see highest redemptions in four years","content":"
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\nEquity mutual fund schemes witnessed highest-ever net inflows of about Rs 40,000 crore in 2014-15. The inflows would have been even higher if not for the heavy redemptions of Rs 77,142 crore,third-most in a decade. High redemptions signaled large number of investors preferred to take money off the table amid a sharp rally.
\nEquity mutual fund schemes witnessed highest-ever net inflows of about Rs 40,000 crore in 2014-15. The inflows would have been even higher if not for the heavy redemptions of Rs 77,142 crore,third-most in a decade. High redemptions signaled large number of investors preferred to take money off the table amid a sharp rally.According to industry players, these investors include high networth individuals (HNIs), especially those who were able to participate at the start of the rally and also retail investors, who had invested during the high of 2007-08.In the previous financial year, units worth Rs 55,362 crore were redeemed.Ajit Menon, executive vice-president of DSP BlackRock Mutual Fund, said, \u201cThere is no doubt that redemptions have happened. Investors have been booking profits, which include retail as well as sophisticated investors who were in much ahead of rally.\u201d According to him, the money redeemed might have found its way into income funds, gold or banks\u2019 fixed deposits.
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\nJimmy Patel, chief executive officer of Quantum Mutual Fund, said, \u201cProfit booking is one part which can\u2019t be ruled out, especially for those investors who were buying when majority did not. However, at the same time, churning of investors\u2019 money by distributors due to mushrooming of close-ended schemes is equally to be blamed,\u201d he said.Some experts say the high redemption number is justified as a lot of investors would have preferred to book profits after a strong rally. \u201cA lot of investors exited after making profits \u2014 that\u2019s what fund houses are here for to create wealth for investors,\u201d said a top industry executive.The mutual fund industry also witnessed record sales of equity schemes at nearly Rs 1.5 lakh crore surpassing what it sold at the peak of previous bull run in 2007-08.Interestingly, the gross redemptions in FY16 were only Rs 2,000 crore less than that see in FY08 amid a meltdown in the market due to the global financial crisis.","pubdate":"Sun, 12 Apr 2015 23:50:00 +0530","newspaper":"Business Standard"},{"title":"ICAR developing new rice varieties","content":"
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\nAs part of its efforts towards nutritional security, the Indian Council of Agricultural Research (ICAR) is developing new nutrient-rich rice varieties, according to its deputy director-general (crop sciences) JS Sandhu.
\nAs part of its efforts towards nutritional security, the Indian Council of Agricultural Research (ICAR) is developing new nutrient-rich rice varieties, according to its deputy director-general (crop sciences) JS Sandhu.\"We are moving from food security to nutritional security. We have identified two varieties of rice that are rich in nutritional content, and are currently developing them,\" he said at the inauguration of Golden Jubilee Annual Rice Research Group meeting at the Indian Institute of Rice Research (IIRR) here on Sunday.\"India achieved food security and the next step is that we should move towards nutrition security. The rice varieties that are available now in India lack protein content. We are increasing protein content in the new zinc-rich rice varieties that we are developing,\" he said.According to him, India currently has 44 million hectare (ha) area in rice cultivation, and there was no increase in the area since the last 15 years.Stating that owing to unseasonal rains and hailstorms, country's foodgrain production was estimated to slightly decline to 257 million tonne this year, Sandhu said foodgrain production stood at 265.57 million tonne in 2013-14, of which 106.65 million tonne was rice.\"New technological tools have to be used to enhance rice productivity. We can get arms and other things from outside (other countries), but not foodgrains, rice in particular,\" said ICAR director-general S Ayyappan.According to IIRR project director V Ravindra Babu, till date, 1,100 rice varieties, including 75 hybrids, and several other technologies have been developed and made available to the rice farming community.","pubdate":"Sun, 12 Apr 2015 20:32:00 +0530","newspaper":"Business Standard"},{"title":"MP may scale down wheat procurement target","content":"
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\nIn view of the large number of cases of damaged crop arrival at procurement centers, wheat procurement is unlikely to reach the target of 10 million metric ton this year. State government, if highly-placed sources are believed, will scale down its procurement target this year. Wheat procurement season has started from 25th of the previous month and will last till mid-May.
\nIn view of the large number of cases of damaged crop arrival at procurement centers, wheat procurement is unlikely to reach the target of 10 million metric ton this year. State government, if highly-placed sources are believed, will scale down its procurement target this year. Wheat procurement season has started from 25th of the previous month and will last till mid-May.
\n\t\"Central government has allowed the state government to procure even damaged, shriveled and broken wheat up to an extent of 40% but procurement would not reach more than 7 million metric ton this year against targeted 10 million metric ton,\" a highly-placed government official told Business Standard.
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\n\tBuoyed up with the combined highest growth in agriculture and allied sector during the past three years Madhya Pradesh government had expected 20 million metric ton of wheat production this rabi season from an acreage of 58 lakh hectare. But unseasonal rains and hailstorms has destroyed crop in approximately five lakh hectare of an official value of Rs 2163 crore. A fresh spell of rains at isolated place has also dampened the speed of wheat arrival at mandis.
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\n\t\"Anticipating low arrival of good quality wheat at mandis and government procurement centers, state government also exempted private traders who have turnover up to Rs 300 crore from purchase tax on wheat. This would boost private players to buy state wheat to a certain extent,\" the official said adding, \"however this would may go up to one million ton. Also carry over stock of the previous year is nearly 800,000 lakh ton and hence there is sufficient wheat for public distribution system (PDS).\"
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\n\tThe state wheat is also supplied to Maharasthra, Gujarat and Karnataka for distribution in PDS while state's own requirement under PDS stands at 2.5 to 2.8 million metric ton.
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\n\tPrivate companies like ITC, Cargill, Unilever, etc, buy 'Sharbati' variety (also known as Sujata) of wheat to make chakki fresh atta. Years ago previous state government had allowed them to procure wheat directly from farmers on payment of mandi fee in lump-sum. Yet, the last five years have witnessed a lukewarm response from big private players though Sharbati variety wheat has high demand in various parts of the country. Also 'Durum' variety of the state is also popular among exporters who export the commodity to those countries who make 'Pasta' at industrial scale.
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\n\tWheat prices stood at Rs 1000-2290 per quintal (LOK-1 variety), Rs 1225-3100 (Sujata or Sharbati variety) and Rs 900-1681 per quintal (normal variety) at various mandis.","pubdate":"Sun, 12 Apr 2015 16:24:00 +0530","newspaper":"Business Standard"},{"title":"Sebi to raise headcount; to hire officers from tax depts","content":"
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\nTo beef up its surveillance and enforcement teams, capital markets regulator Sebi has decided to hire 50 officers this year, including on deputation from tax departments and other government institutions.
\nTo beef up its surveillance and enforcement teams, capital markets regulator Sebi has decided to hire 50 officers this year, including on deputation from tax departments and other government institutions.As part of its recruitment plan for the fiscal 2015-16, Sebi has initiated the process for bringing on board at least 11 officers on \"deputation basis\" from various government departments and public sector institutions.These would include those currently working with Income Tax, Customs, Central Excise, Service Tax, Public Sector Banks, Government Financial Institutions, Asset Reconstruction Companies and Debt Recovery Tribunals.Besides, Sebi would recruit four officers for its Information Systems department, 10 in Legal department and 25 officers in the general stream.The regulator is looking to beef up its enforcement operations by roping in experts from the tax and excise departments, among other agencies, to help in its crackdown on frauds and to conduct search and seizure operations.Armed with powers to carry out search and seizure as well as arrest violators, the market watchdog has been cracking the whip on illegal money pooling activities.The workload of the regulator's enforcement department has significantly increased in the recent times, making it necessary to have more hands with adequate experience, skills and expertise.The Securities and Exchange Board of India (Sebi) is looking to strengthen its manpower at its head office in Mumbai as also in regional offices for its enforcement division in other parts of the country.The recovery of dues involve lengthy process, co-ordinating with various external agencies, passing quasi-judicial orders, conducting public auctions and handling litigations, among others.Hence, staff members dealing with recovery process are required to have necessary expertise to deal with defaulters, police authorities and the public.Sebi, which has over 600 officers across various divisions, has been given the power to conduct search and seizure and initiate recovery process.Under the amended securities laws, Sebi has been given greater powers like attachment of properties, launch of recovery proceedings, seeking call data records to investigate cases and conducting search and seizure activities.Under its proposed Plan of Action for 2015-16, Sebi will also provide training to its staff members in behavioural and functional areas. These would include training on market intelligence, macro economics, investigations, anti-money laundering, financial derivatives and risk management.","pubdate":"Sun, 12 Apr 2015 15:22:00 +0530","newspaper":"Business Standard"},{"title":"BSE hopes to operationalise IFSC exchange in 12-18 months","content":"
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\nIndia's premier bourse BSE, which was the first exchange to enter the just-launched International Financial Services Centre (IFSC) in Ahmedabad, has said it hopes to commission its exchange there within 12-18 months.The BSE Brokers Forum had picked a 300,000 sq ft space at the country's first IFSC at the GIFT City in January this year for about Rs 150 crore, which now they have increase to 500,000 sq ft.\"It will take about 12-18 months to operationalise the exchange at the IFSC, provided all the contentious issues regarding taxation, dispute resolution mechanism and IPR regime are resolved,\" BSE managing director and chief executive Ashish Kumar Chouhan told PTI.He also said that the BSE's investment through its brokers forum will be much higher than the initial Rs 150 crore as it has decided to increase the space to 500,000 sq ft. But he did not disclose the additional outgo.On the key issues that need to be resolved at the IFSC, which was formally launched by Finance Minister Arun Jaitley last Friday, he said there are three main issues that need urgent attention of the government and the regulators -- taxation as well as setting up a dispute resolution mechanism and a strong IPR regime.He also welcomed the stringent RBI guidelines issued on first of this month, wherein the monetary authority has said no cash transaction or account opening\/cheque book facilities will allowed by banks at the centre.\"It is better that we plug all the loopholes well in time so that money laundering issues wont crop up there and scuttle the future of the centre,\" Chouhan said.The BSE, which is Asia's oldest stock exchange, was one of the first to announce establishing the country's first International Exchange at the IFSC on January 12. The NSE followed.Currently, the BSE Brokers' Forum has 742 trading members in the equity segment and 93 trading members (associates) of the commodity segment as its members. The BSE Brokers hold around 40 percent stake in the BSE.Leading banks like State Bank of India (SBI), Bank of Baroda, Bank of India, Syndicate Bank, Corporation Bank, HDFC Bank among others have also already been allotted space in IFSC.Chouhan said that much like Hong Kong's achievements over the past 35 years, since it set up its IFSC in 1978, with regard to mobilising resources for economic development in China, the IFSC at Gift City also has a potential to play a similar role for India.The government aims at creating a vibrant IFSC on the lines of those in Dubai, Singapore and Hong Kong which can help check the flight of trading in rupee and securities to such offshore financial hubs.","pubdate":"Sun, 12 Apr 2015 13:02:00 +0530","newspaper":"Business Standard"},{"title":"Nine of top-10 Sensex cos add Rs 1,02,729 cr in m-cap","content":"
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\nThe total market capitalisation of nine of the top-10 Sensex firms advanced by Rs 1,02,729 crore last week, with RIL and TCS stealing the show with maximum rise in valuation.
\nThe total market capitalisation of nine of the top-10 Sensex firms advanced by Rs 1,02,729 crore last week, with RIL and TCS stealing the show with maximum rise in valuation.Barring HDFC, rest nine bluechip companies, including ITC, ONGC, HDFC Bank, Infosys and CIL made gains in their market valuation for the week ended Friday.The m-cap of RIL surged Rs 22,358.6 crore to Rs 2,92,392.91 crore, the most among the top-10 Sensex firms.TCS's valuation soared Rs 21,262 crore to Rs 5,19,444.87 crore and that of CIL jumped Rs 15,917.24 crore to Rs 2,45,106.52 crore.The valuation of SBI zoomed Rs 11,978.32 crore to Rs 2,16,128.73 crore, ITC added Rs 11,021.34 crore to Rs 2,77,377.05 crore and Sun Pharma saw its m-cap going up by Rs 8,263.71 crore to Rs 2,31,642.64 crore.Infosys' market cap rose by Rs 7,011.43 crore to Rs 2,56,488.33 crore and that of ONGC climbed Rs 2,823.32 crore to Rs 2,65,006.31 crore.Similarly, the m-cap of HDFC Bank went up by Rs 2,092.92 crore to Rs 2,61,226.94 crore.On the other hand, HDFC lost Rs 6,849.91 crore to Rs 2,03,182.44 crore in market cap.In the ranking of top-10 firms, TCS continued to retain its numero-uno position followed by RIL, ITC, ONGC, HDFC Bank, Infosys, CIL, Sun Pharma, SBI and HDFC.The benchmark BSE Sensex ended with a gain of 619.24 points at 28,879.38 last week.","pubdate":"Sun, 12 Apr 2015 10:42:00 +0530","newspaper":"Business Standard"},{"title":"Inflation data; TCS, RIL earnings key for stock markets","content":"
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\nInflation data, quarterly results of bluechips like TCS and RIL are expected to keep markets volatile in a holiday-shortened week ahead, say experts.
\nInflation data, quarterly results of bluechips like TCS and RIL are expected to keep markets volatile in a holiday-shortened week ahead, say experts.Stock markets will remain closed on Tuesday for Baba Saheb Ambedkar Jayanti.Besides, investment trend by foreign investors, movement of rupee against dollar and crude oil prices will also dictate trends on the bourses.\"For now, market is keeping a close watch on Q4 earnings season for its short-term direction, which kick-starts this week,\" said Hitesh Agrawal, Head Research at Reliance Securities.\"Further, notwithstanding any policy specific developments, we expect heightened stock-specific action based on earnings delivered by companies. CPI and WPI inflation data are other points which could induce some volatility in the market,\" he said.Markets on Monday are expected to react to IIP data for February that was announced post-market hours on Friday.Raising hopes of investment cycle uptick, industrial growth jumped to nine-month high of 5 per cent in February on better performance of manufacturing sector and higher offtake of consumer durables as well as capital goods.\"Though majority of market players are expecting subdued results this quarter, major trigger lies with the earning guidance for the next first half of financial year.\"Besides, government will unveil crucial macroeconomic data, CPI and WPI data -- on April 13 and 14, respectively,\" said Jayant Manglik, President of retail distribution at Religare Securities.Participants would first react to the IIP data, he added.India's largest software services firm Tata Consultancy Services will announce its set of numbers on April 16.Reliance Industries' results will come out on April 17.For the week, benchmark BSE Sensex ended with a gain of 619.24 points at 28,879.38.","pubdate":"Sun, 12 Apr 2015 10:42:00 +0530","newspaper":"Business Standard"},{"title":"Foreign fund inflows cross Rs 81,000-cr mark in 2015","content":"
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\nWith overseas investors pumping in over Rs 2,000 crore in the Indian capital markets so far this month, total foreign fund inflows have crossed the Rs 81,000 crore mark since the beginning of the year.
\nWith overseas investors pumping in over Rs 2,000 crore in the Indian capital markets so far this month, total foreign fund inflows have crossed the Rs 81,000 crore mark since the beginning of the year.Analysts expect the inflows to accelerate further going ahead, helped by clearance of reform bills for insurance, coal and mining, as also on assurances on controversial issues like General Anti Avoidance Rules (GAAR).Foreign Portfolio Investors (FPIs) have bought shares worth Rs 2,392 crore till April 10 this month, while they pulled out Rs 337 crore from the debt markets, taking their net investment to Rs 2,054 crore ($329 million), as per the data compiled by Central Depository Services Ltd.This has taken their total net investment in the country's capital markets (equity and debt segments) so far in 2015 to Rs 81,030 crore (about $13 billion).Market participants attributed the robust inflows to positive investor sentiment driven by several reform measures announcement by the government.Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in the his Budget for 2015-16.Besides, he has deferred the controversial GAAR by two years to soothe investors' nerves, saying its immediate applicability can create \"panic\" in markets.The net inflows by overseas investors in debt markets stood at Rs 1.59 lakh crore in last year 2014, while the same for equities was Rs 97,054 crore.Overall, the net investment by foreign investors stood at Rs 2.56 lakh crore last year.","pubdate":"Sun, 12 Apr 2015 10:42:00 +0530","newspaper":"Business Standard"},{"title":"Hiring remains at 'sky-high' levels","content":"\n                        Static productivity of UK workers remains a concern for the economy.\n                    \n                Employers in the UK plan to keep hiring more staff, but concerns remain about the country's failure to raise productivity, a new report has warned.The latest Business Trends Report by BDO gave an employment index reading of 113.0 for March.That was almost the same as February's figure  and well above the 100 level that indicates growth above the long-term trend.The report indicated that companies were likely to keep creating jobs.\"The hiring intentions of UK firms are at 'sky-high' levels with figures stronger than the heady days of the mid-2000s boom,\" BDO said.UK unemployment fell by 102,000 to 1.86m in the three months to January, with the unemployment rate at 5.7%, according to official figures. The report's optimism index showed that business confidence remained well above the 100 mark.\nProductivity ultimately determines our prosperityPeter Hemington, BDO partner\nHowever, it also highlighted the static level of British workers' output per hour, a situation \"unique amongst advanced economies\".Recent Office for National Statistics figures showed that productivity has not increased since 2007, which was unprecedented in the post-war period.The weakness has perplexed economists and been described by the International Monetary Fund as a major risk to growth.BDO partner Peter Hemington said the UK's continuing poor labour productivity performance was a significant concern.\"Although employment growth in recent years has been strong, much of this has been in part-time jobs,\" he said.\"Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policy makers of all persuasions must take on this productivity puzzle\".\n    ","pubdate":"Mon, 13 Apr 2015 04:37:38 +0530","newspaper":"BBC"},{"title":"Online shopping drives record van sales","content":"\n                        Ford makes engines for its Transit van at Dagenham in east London\n                    \n                The rising popularity of online shopping has helped drive van sales in the UK to a record high.Almost 100,000 vans were registered in the first three months of 2015 - 22.3% higher than the same period last year.The Society of Motor Manufacturers and Traders said on Monday that 108,456 commercial vehicles were registered in the quarter.That is the highest number of vans and lorries sold since the trade body began compiling figures in 1987.Online sales in the UK hit \u00a3103bn last year, according to the IMRG Capgemini e-Retail Sales Index, creating a booming market for home delivery of orders.The figure is expected to rise by 12% in 2015 to about \u00a31 in every \u00a34 spent by Britons.An SMMT spokesperson said: \"Van registrations have risen consistently over the past two years, mainly as a result of steadily increasing business confidence and a range of attractive finance deals. The move towards online shopping and home deliveries is an important contributor to this growth - particularly that of large vans.\"Ford accounted for more than a fifth of van sales in the quarter, with the mid-sized Transit Custom the most popular on 12,627 sales.\n                        The commercial vehicle sector is dominated by van sales (in blue, with lorries in red)\n                    \n                The Vauxhall Vivaro was in second place on 7,449 sales, with the Volkswagen Transporter third on 5,765 units.Ford also took sixth place with the long-wheelbase Transit model, which sold 5,276 units, and the small Transit Connect variant in eighth place with 4,096 sales.Mike Hawes, SMMT chief executive, said: \"Commercial vehicles are crucial to the functioning of Britain's economy and these latest figures paint a very encouraging picture. As business confidence grows, demand for the latest vans and trucks is now back to pre-recession levels - outpacing the rest of Europe.\"Commercial vehicle sales mirror the buoyant new car market. Almost 493,000 cars were registered in March - up 6% up on the same month in 2014 and the best monthly figure since August 1998, the SMMT said.Its figures suggest that there are about 4.4m vans and trucks on British roads, delivering 81% of all goods and shifting almost 3,000 tonnes of goods every minute.\n                        Volkswagen's Transporter van\n                    \n                The latest models from manufacturers including Fiat, Mercedes-Benz and Peugeot will be on display in Birmingham this week as the NEC hosts the Commercial Vehicle Show.\n    ","pubdate":"Mon, 13 Apr 2015 04:34:57 +0530","newspaper":"BBC"},{"title":"Falling iron price to hit Australia","content":"\n                        Australia is one of the world's biggest exporters of iron ore\n                    \n                Australia expects the plunging price of iron ore - its biggest export - to reduce revenue forecasts by A$25bn (\u00a313bn; $19bn) over the next four years, Treasurer Joe Hockey has said.He told the Australian Financial Review (AFR) that his May budget would be based on the anticipated price of iron ore falling further, to $35 a tonne.Iron ore is currently trading at $47 a tonne - down from $120 a tonne in 2013.The drop has been blamed partly on falling demand in China.The estimated price of $35 a tonne is even lower than the conservative forecast from December's budget update, which assumed prices would fall to $60 a tonne.\"There seems to be no floor, we are contemplating as low as $35 a tonne,\" Mr Hockey told the AFR.\n                        The falling price of iron ore is expected to hit the economy of Western Australia particularly hard\n                    \n                He said every fall of $10 in the price of the ore cost the Australian economy A$2.5bn in revenue.Mr Hockey is due to present his budget on 12 May.He told the AFR the budget would contain \"a credible path back to surplus\" but refused to say when a surplus may be achieved.He also could not guarantee that the deficit may not worsen again.He said the government would have to continue pursuing structural savings, which have included unpopular cuts to health and welfare budgets.In a separate interview with ABC News Breakfast on Monday, Mr Hockey said there was \"no doubt\" iron ore prices had a big impact on the budget.But, he said, the government would not impose new taxes to compensate for the lost revenue.The drop in the value of iron ore has been linked to a slowdown in China, as well as to steady output from Chinese producers who are competing with major Australian mining companies.\n    ","pubdate":"Mon, 13 Apr 2015 06:49:16 +0530","newspaper":"BBC"},{"title":"Tensions at VW amid leadership clash","content":"Divisions have emerged in the leadership of German car giant Volkswagen after chairman Ferdinand Piech gave an interview criticising chief executive Martin Winterkorn.Mr Piech told German news magazine Der Spiegel that he had \"distanced\" himself from Mr Winterkorn, who was widely tipped as the firm's next chairman.Mr Piech's family and the Porsche family control 51% of VW between them.Board member Wolfgang Porsche said Mr Piech had given his \"personal opinion\".Mr Porsche, who is Mr Piech's cousin, said the chairman had not cleared his remarks with family members.During his eight-year tenure as chief executive, Mr Winterkorn has overhauled VW and made it one of the world's most successful carmakers, industry analysts say.Since Mr Piech's remarks were published on Friday, Mr Winterkorn has received the backing of Lower Saxony state, a minor shareholder in VW, as well as the support of the company's employee council, which holds half the seats on the firm's 20-strong supervisory board.In 2014, VW was the world's second-biggest carmaker by sales, behind Toyota and ahead of GM.Apart from Volkswagen, the group's brands include Audi, Porsche, Lamborghini, Bugatti, Bentley, Skoda and Seat. \n    ","pubdate":"Sun, 12 Apr 2015 20:55:00 +0530","newspaper":"BBC"},{"title":"China exports miss expectations","content":"\n                        China's economy grew by 7.4% in 2014, its weakest for almost 25 years\n                    \n                China's monthly trade data shows exports fell in March from a year ago by 14.6% in yuan terms, compared to expectations for a rise of more than 8%.Imports meanwhile fell 12.3% in yuan terms compared to forecasts for a fall of more than 11%.The numbers mean the country's monthly trade surplus has shrunk to its smallest in 13 months. China's economy grew by 7.4% in 2014, its weakest for almost 25 years.Analysts said recent indicators showed further signs the slowdown is continuing.In US dollar terms, China's exports for the month fell 15%, while imports fell 12.7%.Currency conversion factors based on US dollar and Chinese yuan movements over the last year mean some official numbers from the mainland are now reported in both currencies. The official March data leaves the country with a monthly trade surplus of 18.16bn Chinese yuan ($2.92bn; \u00a31.99bn).In February, China's monthly trade surplus hit a record $60.6bn, as exports grew and imports slid back.Surprise\n                        In US dollar terms, China's exports for the month fell 15% while imports fell 12.7%\n                    \n                Analysts said the export numbers for March were a surprise. \"We can understand the imports fell because of falling imports of commodities, but exports fell so much, it was very much unexpected,\" said Shanghai-based analyst Nie Wen from Hwabao Trust. However, he said one major reason for the falling exports was yuan appreciation.Tony Nash, head of Delta Economics, said the numbers took in the lunar new year period which was typically a bit volatile.\"We usually average February and March to get a true picture of what's actually happening,\" he told the BBC.\"If we look at February's 48% rise in exports and March's 15% fall in exports, we get a moving average of 16.7%, which is closer to where we've seen exports over the past two months.\"But Mr Nash said his firm was expecting a further slowdown going forward. \"In the second quarter, we'll look for an average of 9.9% year-on-year export growth and 11.7% import growth,\" he said. \"Trade will fall towards the back half of the year and we will look for average export growth in 2015 at 8.7% year-on-year, and import growth at 10.3% year-on-year.\n    ","pubdate":"Mon, 13 Apr 2015 09:51:29 +0530","newspaper":"BBC"},{"title":"Inheritance tax plan 'about values'","content":"Chancellor George Osborne has said a Conservative plan to remove family homes worth up to \u00a31m from inheritance tax \"supports the basic human instinct to provide for your children\".It means more owners of homes in the UK would be able to pass them on to their children without paying tax.Independent economists say it would \"disproportionately\" benefit well-off families and drive up property prices.Labour said the Tories had promised such a move before and did not deliver.Deputy leader Harriet Harman contrasted the idea with Labour's plan for a \"mansion tax\", saying \"people face a big choice\".\"It's becoming clearer and clearer as we get to the election how actually the Tories are helping a few people - and we want everybody to be better off,\" she told BBC One's Andrew Marr Show.In other election news:Labour has been setting out plans to raise an extra \u00a37.5bn a year through closing tax loopholes and imposing bigger fines on tax avoiders\nLabour has also announced proposals to give victims of sexual offences the right to challenge decisions by police not to prosecute suspects\nThe Lib Dems have set out their plans to eliminate the deficit by 2017\/18, through raising taxes by an additional \u00a312bn, cutting public spending by \u00a312bn and cutting welfare by \u00a33bn\nThe latest BBC poll of polls has Labour on 34%, the Conservatives on 33%, UKIP on 14%, the Lib Dems on 8% and the Greens on 5%\nUKIP leader Nigel Farage told the BBC his party would scrap inheritance tax and says details of how it would be financed would be unveiled in its manifesto on Thursday\nLiberal Democrat Chief Secretary to the Treasury Danny Alexander said the Conservatives had \"the wrong priorities\".Meanwhile, Paul Johnson, director of the the Institute for Fiscal Studies (IFS) said the debate from all parties around tax in the election campaign had been \"deeply depressing\".He told the BBC: \"You've had the main parties ruling out whole hosts of relatively straightforward ways of increasing tax, talking about raising tax from some other group, be they the rich or the non-doms or the tax avoiders, but this is all real money and has real effects on the economy - and no sense from anybody about a serious way forward for the tax system.\"\n\t\t\tTaxation\n\t\t\n\t\tConservative\n\t\t\t\tMain pledges\n\n\t\tRaise the personal allowance from \u00a310,600 to \u00a312,500  \n\tRemove family homes worth up to \u00a31m from inheritance tax\n\tRaise the starting point for 40% higher tax rate from \u00a342,400 to \u00a350,000\n\tNo rise in VAT\n\t\tOf the inheritance tax policy, an IFS note said: \"This (and in fact any) IHT cut will also go disproportionately to those towards the top of the income distribution\", while Mr Johnson added: \"Anything... which increases the tax privilege associated with an asset like housing will drive the price up in the long run.\"The \u00a31bn cost of the Conservative policy will be paid for by reducing tax relief on the pension contributions of people earning more than \u00a3150,000, says the party, which will make the the policy a key plank of its manifesto.At present, inheritance tax is payable at 40% on the value of an estate in excess of the tax-free allowance of \u00a3325,000 per person. Married couples and civil partners can pass the allowance on to each other.If the Conservatives win the general election, then from April 2017 parents would each be offered a further \u00a3175,000 \"family home allowance\" to enable them to pass property on to children tax-free after their death.This could be added to the existing \u00a3325,000 inheritance tax threshold, bringing the total transferable tax-free allowance from both parents in a married couple or civil partnership to \u00a31m.The full amount would be transferable even if one spouse had died before the policy came into effect, the Conservatives say, and so would benefit existing widows and widowers.For properties worth more than \u00a32m, the new allowance would be gradually reduced so that those with homes worth more than \u00a32.35m would not benefit at all.Analysis, by Carole Walker, Conservative campaign correspondentDavid Cameron will be hoping his pledge to take the family home out of inheritance tax will galvanise his campaign in a week which will be critical for his prospects of staying in power.When George Osborne promised to raise the inheritance tax threshold to \u00a31m back in 2007, he delivered a huge boost to Tory morale and put Gordon Brown off holding a snap election. Subsequent promises to take more people out of the tax have not been delivered.  The threshold has been frozen since 2009 and rising property prices have dragged tens of thousands more families into the inheritance tax net. His opponents are already questioning whether voters will believe this latest promise. The announcement is likely to appeal to middle-class voters, particularly in London and the South East. But it also opens the Conservatives to the charge they are helping the wealthy.  David Cameron's team deny this - pointing out that it will be paid for by reducing pension tax relief for high earners and that many ordinary families now have to pay the tax.It is, however, a marked contrast to the promises from Labour and the Liberal Democrats to impose a \"mansion tax\" on expensive properties. Mr Osborne told BBC One's Andrew Marr Show: \"Conservatives support the basic human instinct to provide for your children. And we believe that your home that you've worked for and you've saved for should belong to you and your family, not the tax man.\"So we will take family homes out of inheritance tax, we will effectively increase the inheritance tax threshold to \u00a31m, so that only millionaires pay inheritance tax.\"It was a message repeated in a speech by Mr Cameron, who said: \"You should be able to pass it (your home) onto your children. And with the Conservatives, the tax man will not get his hands on it.\"But shadow treasury secretary Chris Leslie, for Labour, said the policy was the latest \"panicky promise\" from the Conservatives. He said: \"The Tories made a promise on inheritance tax before the last election and they broke it. \"At a time when our NHS is in crisis and most working people are paying more under the Tories, it cannot be a priority to spend \u00a31bn on a policy which the Treasury says would not apply to 90% of estates.\"Danny Alexander said: \"It is extraordinary that the Tories will go into great detail on a policy that will cut tax for a small number of estates, but steadfastly refuse to give any detail at all on the massive cuts to public services that they desire.\"However, when asked whether the Lib Dems would block the proposals if they ended up back in coalition, he declined to say he would, instead saying: \"I'm saying I strongly disagree with it. Our priority... is further increases in the income tax personal allowance... we've stopped things in this parliament including cuts to inheritance tax for millionaires.\"","pubdate":"Mon, 13 Apr 2015 00:23:36 +0530","newspaper":"BBC"},{"title":"Store workers 'claim \u00a311bn benefits'","content":"Supermarket workers paid the national minimum wage are forced to claim state benefits totalling \u00a311bn a year, according to a charity.Citizens UK said the employers of five million workers in the UK were being \"subsidised\" by the taxpayer.The minimum wage is \u00a36.50 an hour for people over 21, while the living wage calculated by the Living Wage Foundation is \u00a37.85 (\u00a39.15 in London).The British Retail Consortium said most supermarkets paid above minimum wage.When all extra earnings were considered, hourly pay was around \u00a38.40, it added.According to Citizens UK, which organises community campaigns, most of those earning less than the living wage are employed in the retail sector. The charity said this meant most supermarket staff needed in-work benefits - which it argued meant taxpayers were \"subsidising private companies by almost \u00a311bn per annum\".\n    ","pubdate":"Sun, 12 Apr 2015 04:42:38 +0530","newspaper":"BBC"},{"title":"Labour warns of tax avoidance fines","content":"Tax avoiders would face bigger fines as part of Labour's plan to raise an extra \u00a37.5bn a year, if the party wins the general election.The policy is likely to form a central part of Labour's election manifesto, which is due to be launched on Monday.Ed Balls said Labour would carry out an immediate review of the tax collection system to close loopholes it wins power in May.The Conservatives said they planned to claw back \u00a35bn from tax avoiders.Labour claims Chancellor George Osborne has not set out how this would be done.But Paul Johnson, the director of the independent Institute for Fiscal Studies, has said both main parties are \"making up numbers\" in terms of what they can raise from tax avoidance and evasion.Speaking to the Radio 4's The World this Weekend, he said: \"The Conservatives are committed to getting five billion a year extra. Labour are trumping that by saying seven and a half billion. It's almost impossible to know up front actually what you can achieve from cracking down on avoidance and evasion.\"\n\t\t\tTaxation\n\t\t\n\t\tLabour\n\t\t\t\tMain pledges\n\n\t\tRe-introduce the 50% top rate of income tax for people earning over \u00a3150,000 and the lower 10% starting rate\n\tIntroduce a \"mansion tax\" on houses worth over \u00a32m\n\tRaise an extra \u00a37.5bn a year by cutting down on tax avoidance\n\tCut business rates for small firms in 2015 and freeze them in 2016\n\t\tUnder the Labour plan, there would be an assessment of the powers currently held by HM Revenue and Customs followed by moves to beef up the agency's powers.The party wants to change the so-called \"carried interest\" rules which allow private equity managers to pay lower rates of Capital Gains Tax - instead of income tax - even when they are not investing much of their own money. Labour also want to prevent disguised self-employment and close loopholes used by hedge funds to avoid stamp duty.'Fair share'Shadow chancellor Mr Balls said: \"We will close loopholes the Tories won't act on, increase transparency, toughen penalties and abolish the non-dom rules. And our first budget will make sure that following an immediate review of HMRC, it has the powers and resources it needs to come down hard on tax avoidance and evasion. \"Working people who are paying more in tax want everyone to pay their fair share. And there shouldn't be one rule for a few and another rule for everybody else.\"Mr Balls will on Sunday set out his party's ten-point plan to tackle tax avoidance, which includes pushing a draft Finance Bill through parliament, and asking the Bank of England to \"focus on risks from the informal economy\".David Gauke, Financial Secretary to the Treasury, for the Conservatives, said: \"Ed Miliband and Ed Balls turned a blind eye to aggressive tax avoiding and evading for 13 years when they were in charge - they were the tax avoiders' friends.\"Ed Miliband has no economic plan to secure Britain's future - and it's hard-working taxpayers who will pay the price.\"He said the coalition had clawed back \u00a37bn a year in lost revenue and planned to go further.The latest Opinium poll for the Observer gives the Tories a two-point lead over Labour. The Conservatives are on 36% up 3 points, while Labour is up 1 point on 34%. ","pubdate":"Sun, 12 Apr 2015 22:34:57 +0530","newspaper":"BBC"},{"title":"Shares in Asia mostly up on Monday","content":"Shares in Asia were mostly up on Monday following gains on Wall Street and a week of highs in Asia. In Japan, the benchmark Nikkei 225 index was up 0.3% at 19,967.38 points.On Friday, the index traded above 20,000 for the first time since April 2000. The Nikkei is up nearly 15% this year.Australian shares were also in positive territory with the S&P\/ASX 200 index up 0.6% at 5,968.37 in morning trade. However, commodity prices were weighing on shares of some mining companies as iron prices remain depressed. Australia has said it expected the plunging price of iron ore to slash revenue forecasts by A$25bn (\u00a313bn; $19bn) over the next four years.Australian Treasurer Joe Hockey told the Australian Financial Review that the price for iron ore, Australia's biggest export, could fall as low as $35 a tonne. Shares of mining giant BHP Billiton were down 0.66% in early trade, while trading in Atlas Iron shares was suspended after the company said on Friday that it would stop all mining in Australia because iron ore prices were below its breakeven level.\"Despite an extensive cost-cutting program ... the global supply-demand imbalance for iron ore has driven prices down to the point where it is no longer viable for Atlas to continue production,\" the firm said.In South Korea, the Kospi was up 0.25% at 2,093.06.In China, the Shanghai Composite benchmark was up 0.86% at 4,069.17 points in early trade after crossing the 4,000 mark for the first time since 2008 on Friday.In Hong Kong, the Hang Seng index added 0.35% to 27,367.66 points after marking a seven-year high last week. \n    ","pubdate":"Mon, 13 Apr 2015 07:26:48 +0530","newspaper":"BBC"},{"title":"Capital One cuts cashback deals","content":"\n                        Rules to cap interchange fees were agreed in the European Parliament\n                    \n                Capital One, one of the biggest providers of cashback credit cards, is cutting the rewards it offers on its products.It blames a ruling in the European Parliament to cap so-called \"interchange fees\". These fees are paid by retailers to card issuers when a debit or credit card is used as payment. The European Commission claims that the fees are costing retailers across the eurozone \u20ac9bn (\u00a36.5bn) a year.It has described them as a \"direct attack on the single market\" and that they may be as high as 1.5% on every transaction made by consumers. They have traditionally been higher in countries like Poland and Lithuania, where credit cards are less commonly used.The new rules, which are due to pass into law later this month, would cap interchange fees at 0.2% for debit and 0.3% for credit transactions.The ruling follows a decade-long legal battle between Brussels and the card provider Mastercard. Lost revenueCritics claim that as well as being opaque, interchange fees can act as a bar to the introduction of new payment technology, such as fingerprint based payment systems or contactless mobile phone payments, and reform is needed at a time when alternative payment platforms like Paypal and Apple Pay are eating into market share. However, the new caps have raised concerns that credit card firms may seek to recoup lost revenue elsewhere. Capital One has written to its customers informing them that it is either cutting cashback points on its cards or axing them completely from 1 June.In a statement it said that \"following the European Parliament's resolution... the implications of significantly lower interchange revenue has meant... several (products) are no longer sustainable under current market conditions\".  It added that the changes will affect both existing and new customers. Greg Welch has had his Capital One \"Aspire World\" credit card, paying 1% cashback, for five years. He admits he uses it for almost everything, \"even buying a coffee in Costa, or petrol, paying for a hotel or flights, groceries... anything that I am going to spend over \u00a35 on.\"Fraud protectionThe card had been yielding Mr Welch an annual bonus of around \u00a3500, but he has now been told his cashback rate is being cut to just 0.25%He told BBC Radio 5 live, \"the bonus coming in January was really timely after the Christmas period. After being a loyal Capital One customer for years, I shall now try to source a better deal (elsewhere).\" The industry body, the UK Cards Association, had lobbied against the caps on fees, claiming \"they would upset the balance of cost-sharing between retailers and cardholders\".The association, whose members issue 55 million credit cards a year, has also warned that fee caps will mean less investment in fraud protection as well as fewer competitive offers for customers, indicating that other credit card rewards such as air miles or points on supermarket loyalty schemes may also be affected.  Capital One says has declined to say which of its cards, or how many customers overall, would be affected by the changes. But, it says that instead, the annual fees on cashback cards which range from between \u00a318 and \u00a3120, are to be scrapped or refunded to customers who have already paid them. \n    ","pubdate":"Sat, 11 Apr 2015 13:36:41 +0530","newspaper":"BBC"},{"title":"Weak output pushes pound lower","content":"The pound has fallen to its lowest level against the dollar for nearly five years on weak UK industrial output figures and uncertainty over the outcome of the election.Sterling fell as low as $1.4618 before recovering slightly in late trading.Earlier, the Office for National Statistics (ONS) said UK industrial output figures rose by just 0.1% in February from January.The small increase was below analysts' forecasts for a 0.3% gain.A number of opinion polls that showed Labour ahead of the Conservatives also unsettled traders. One said the pound could fall far further if there were to be a prolonged struggle to form a government in the absence of a dominant party.\"A $1.40 level for sterling\/dollar is certainly not out of reach if the election aftermath turns ugly,\" said Steve Barrow, currency strategist at Standard Bank.Oil and gas production fell sharply, while the construction sector contracted by 0.9% in February, compared with forecasts for a rise of 2%.The figures suggest the economy has slowed down this year, after a strong showing of 2.8% growth in 2014.Manufacturing output showed the best growth within the industrial output measure, with a gain of 0.4% in February, bouncing back from its drop of 0.6% in January.Chris Williamson, chief economist at Markit, said: \"Clearly this all bodes ill for economic growth in the opening quarter of the year. It's now looking like the economy slowed, and possibly quite markedly, compared to the 0.6% expansion seen in the closing quarter of 2014.\"The trend should improve in March, however, according to survey data.\"The ONS' industrial output data covers 14.6% of the UK economy.The first official estimate of gross domestic product for the first quarter of the year will be released about a week before the general election.\n    ","pubdate":"Fri, 10 Apr 2015 21:28:58 +0530","newspaper":"BBC"},{"title":"Extra flights tackle strike backlog","content":"\n                        Hundreds of flights were affected by the two-day strike\n                    \n                Easyjet will run \"rescue\" flights and may put bigger planes on busy routes to deal with the after-effects of strikes by French air traffic controllers.The airline cancelled 248 flights on Wednesday and 340 flights on Thursday, making it one of the operators worst hit by the two-day strike.No cancellations were expected on Friday, but Easyjet said some affected passengers still needed flights.Two more stoppages are expected in the coming weeks.French air traffic controllers have scheduled the first from 16 April to 18 April and the second from 29 April to 2 May.Call centre hoursSome passengers have been stranded in European cities after Easter breaks following the latest strike, 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 recognises that there are a number of passengers across the network who have been affected by these cancellations and still require flights as soon as possible,\" a spokesman said.The airline said it was extending opening hours of its call centres to help those who still needed to rearrange travel. It said it took 13,000 calls on Wednesday and 12,820 calls on Thursday.Some other airlines were affected by the strike action on Wednesday and Thursday, which affected flights to and from France, as well as flights over French airspace.Ryanair said it had been forced to cancel more than 500 flights over the past two days. A spokeswoman for the airline said: \"All operations are running as normal.  All customers affected by the two-day ATC strike have been contacted and advised of their options.\"Among those affected were Nathan Thorne, 23, from Goole on Humberside, and his sister Olivia, 14, who had their Ryanair flight from Limoges to Leeds Bradford cancelled on Thursday.Mr Thorne, who is with the army's Royal Logistics Corps, is anxious to get back as he begins a six-month tour of duty in the Falkland Islands on 22 April. His sister needs to get back for school on Monday.\"All the flights before next Thursday are booked up and the Eurostar train is extremely expensive,\" he said.Short-haul and medium-haul flights operated by Air France were also affected by the strike.\n    ","pubdate":"Fri, 10 Apr 2015 15:56:42 +0530","newspaper":"BBC"},{"title":"Which country has the least sexist banknotes?","content":"There are calls for the US and Canada to put a woman on a banknote. A similar campaign in the UK successfully convinced the Bank of England to put Jane Austen on the \u00a310 note. But is just one woman per country enough?American bills have portraits of the country's Founding Fathers and former presidents. Chinese notes have Mao Zedong and Indian ones have Mahatma Gandhi, but none of them feature any women. Many other currencies also stick to men, sometimes including a token woman or two.Now there are calls for the US to put a female on the $20 bill. \"The United States needs to show the world that we, too, recognize and value the contributions of women,\" says Susan Ades Stone, executive director of the campaign group Women On 20s.\"Our money says something about us and what we represent as a society. So if we're all about gender equality and diversity and inclusion, let's walk the walk.\"The US currently has seven bills in circulation, all of which feature distinguished, deceased American statesmen.Women On 20s conducted an online poll and asked people to choose which of 15 historical female leaders they would most like to see on the note.The candidates included civil rights activist Rosa Parks, birth control pioneer Margaret Sanger, suffragette Susan B Anthony and Harriet Tubman who escaped slavery and went on to lead other slaves to freedom.More than 200,000 people voted in the first round, and the second round - set to last a few weeks - is currently underway. \n                        Eleanor Roosevelt, pictured during her time as a representative to the United Nations...\n                    \n                \n                        ... and Rosa Parks are both finalists in the Women On 20s online poll.\n                    \n                Once the final poll closes, the group will petition President Obama to replace Andrew Jackson with the chosen woman.Many wonder why Jackson - the seventh president of the US - hasn't been removed from the $20 bill already. He is especially unpopular with Native Americans due to his signing and enforcing the Indian Removal Act of 1830, which forced tribes off their land. Thousands of Native Americans died on the journey west - known as the Trail of Tears - from exposure, starvation and disease.His controversial legacy is one of the reasons why Women On 20s chose to target this particular bill for change.Meanwhile in Canada, more than 54,000 people have signed a petition to put a woman on a banknote there after the sole female to appear on the country's currency, Therese Casgrain, was replaced in 2011 by an icebreaker ship.\"When we open our wallets and see the faces of four male prime ministers and Queen Elizabeth, the subtle message is that Canadian women aren't worthy of being celebrated,\" says author and historian Merna Forster who started the Canadian campaign.   \"Sexist banknotes are unacceptable in a country that boasts of being a world leader in promoting gender equality\u2026 If women are equal to men in Canada, they should be equally represented on our banknotes.\"\nSweden. \"We thought it was very important to feature an equal number of men and womenSusanne Eberstein, Sweden's Riksbank\nA similar petition was launched in the UK in 2013 after it was announced that Winston Churchill would replace Elizabeth Fry - a social reformer and philanthropist - on the \u00a35 note. More than 36,000 people signed it and convinced the Bank of England to put the author Jane Austen on the \u00a310 note from 2017.In both the UK and Canada, the Queen's portrait is on many banknotes. But, critics say this doesn't count because she appears as a monarch rather than for her achievements. Plus, she will eventually be replaced by a male heir.Although the UK petition was a success, campaigners in all three countries - the US, Canada and the UK - have called for only one woman on a note. But is that enough? Should half of all portraits on currencies be of women, better reflecting the makeup of the population?That's what's happened in Sweden. \"We thought it was very important to feature an equal number of men and women,\" says Susanne Eberstein, the chairman of the General Council at the country's Riksbank. \"It was well in line with our aims. It was very natural.\"Women appear on three of the banknotes there, although one of those depicted is Mother Sweden. A new line of Swedish notes, to be introduced in 2015 and 2016, will feature three men and three women - actress Greta Garbo, Pippi Longstocking author Astrid Lindgren, and opera singer Birgit Nilsson.Australia, too, has an equal number of men and women on its banknotes - each one has a male on one side and a woman on the other, apart from one with the Queen on it which has parliamentary buildings on the reverse.So why isn't Women On 20s petitioning for more than one woman to appear on American dollar bills?The organisation does believe there should be more women on notes but wanted to be realistic about its initial goal. \"We hope this is just the beginning,\" says Stone.But if bills should equally represent men and women, shouldn't they also reflect a nation's racial diversity? Again, this isn't usually the case, although there are exceptions. Australia, for example, has five bills in circulation, one of which features David Unaipon, an Aboriginal man. Unaipon was a pioneer for Aboriginal rights as well as a distinguished inventor and writer.Every US note features a white man, albeit one of the country's presidents or Founding Fathers, even though the US population comprises many races - notably, 13% are black and 17% Hispanic. The US Census Bureau lists seven different races, although Americans no doubt identify with many more ethnic backgrounds.  When the Women On 20s selection committee compiled their list of female candidates, they were conscious of diversity, but they did not set out to fill any particular quota, Stone says. Instead, they focused on the candidates' overall impact and trusted that a diverse group would result from the selection process. It did. The 15 female candidates include African, Asian and Native Americans as well as Caucasians.\n                        Another finalist in the vote - Wilma Mankiller, first female principal chief of the Cherokee Nation\n                    \n                \"I feel that the money that we have now is very last century,\" says Stone, adding that the US has changed enormously.\"We're more diverse. We're more inclusive. And the money should reflect that.\" However, \"It would be unrealistic to imagine that we could have a female representative of every ethnic group on the bills,\" she says. \"That's for another campaign.\"Perhaps a country can't fully represent the diversity of its population on a handful of notes. Euro bills - tasked with representing a huge span of people, cultures and history - depict stylised images of windows, doorways and bridges. Not even actual monuments, let alone portraits of real people.So could this be the solution - no portraits at all?Norway currently has women on two of its five banknotes. \"In a society where gender equality is an important value, having both male and female portraits on the banknotes is a matter of course,\" says Hilde Singsaas, from Norges Bank.However, Norway will soon be getting rid of both men and women when it introduces a new series of notes which will have a sea theme. The specific designs are not yet finalised but proposed motifs (below) feature ships, water and fish. This wasn't because of difficulty reflecting the diversity of Norway's population through portraits though, Singsaas says.\"All the previous banknote series featured portraits as the primary motif, without any clear connection between them,\" she explains. \"This time, the aim was to find a recurrent theme binding the banknotes together into a coherent whole.\"Similarly, Denmark recently introduced a new series of notes featuring bridges and prehistoric objects rather than people. Its previous series of five bills had women on two, men on two and one with a woman and a man. On its website, the Danish National Bank explains that the bridges symbolise links between various parts of Denmark and between the past and present.Putting bridges instead of people on the notes did not have anything to do with difficulty depicting a diverse population, says the bank's spokesman Lars Luth Mikkelsen.Another reason it might be easier to choose landscapes or buildings over people is that prominent figures are often controversial in one way or another, like Jackson in the US.Every person that you put on a banknote will garner some negative and some positive feedback, says Sweden's Eberstein. She and the Riksbank received criticism about the decision to put opera singer Birgit Nilsson on one of Sweden's new notes. Nilsson is pictured singing an opera by Richard Wagner, whose works are sometimes associated with Nazi Germany.Eberstein pointed out that Nilsson most often performed Wagner, who is still very popular today.\"She was a world famous singer,\" Eberstein says, \"and a good representative of Sweden at that time.\"And Women On 20s' Stone admits, \"You can never please everyone.\"Subscribe to the BBC News Magazine's email newsletter to get articles sent to your inbox.\n    ","pubdate":"Mon, 13 Apr 2015 04:58:42 +0530","newspaper":"BBC"},{"title":"Amazon sues four paid review sites","content":"\n                        Amazon alleges that paid reviews undermine the trust people have in its site\n                    \n                Amazon has sued four firms that pay people to produce reviews that then appear on the online retailer's site.The company alleges that the paid opinions \"undermine\" its review system which customers believe come from unbiased sources.Amazon is seeking damages from the four sites and wants them to stop producing the reviews.The four companies named in the legal complaint have not yet responded to Amazon's allegations.\"While small in number, these reviews threaten to undermine the trust that customers, and the vast majority of sellers and manufacturers, place in Amazon, thereby tarnishing Amazon's brand,\" said the retailer in documents filed to the court in Washington.As well as subverting the review process, Amazon accused the sites of trademark infringement, and violations of local consumer protection statutes and cybersquatting laws that govern who can own a domain name. It alleged that the paid reviews were being placed on its site at a slow rate designed to outwit the detection system it ran to spot such content.  In its legal papers, Amazon said it verified its allegations by surreptitiously paying one of the services to write reports about products. This resulted in them getting \"glowing\" reviews, it said.The legal papers name four review producers that operate via sites called buyazonreviews.com, buyamazonreviews.com, bayreviews.net and buyreviewsnow.com. Since the legal action was filed two of the sites named have gone offline. Those still operating have yet to respond to the BBC's request for comments. Mark Collins, who runs the Buy Amazon Reviews site, defended his business in an interview with The Seattle Times. He said the site did not provide \"fake\" reviews but provided \"unbiased and honest\" opinions about products.The sites pay between $19-$22 (\u00a313-\u00a315) for each review which typically result in products getting a four or five star rating. Higher star ratings can often translate into higher sales.\n    ","pubdate":"Fri, 10 Apr 2015 21:00:39 +0530","newspaper":"BBC"},{"title":"VIDEO: A taste for kiwifruit in India","content":"","pubdate":"Mon, 13 Apr 2015 04:50:13 +0530","newspaper":"BBC"},{"title":"VIDEO: 'Why I swapped films for education'","content":"After an outstanding career in the film industry, David Puttnam left the entertainment world behind to take on the challenge of reforming education.In an interview with the BBC's Linda Yueh, Lord Puttnam - chairman of Atticus Education - describes his own experience of the education system and why he believes passionately in the need for change.Watch: Talking Business with Linda Yueh\n    ","pubdate":"Fri, 10 Apr 2015 17:39:13 +0530","newspaper":"BBC"},{"title":"VIDEO: A full Scottish fiscal autonomy?","content":"","pubdate":"Sat, 11 Apr 2015 00:17:51 +0530","newspaper":"BBC"},{"title":"VIDEO: African telecom firms take on banks","content":"The number of people across Africa using mobile phones continues to grow. And the increasing volume of financial transactions made on these phones, has enabled telecom companies across the continent to set themselves up as major competitors in the banking business.The BBC's Russell Padmore has more for Africa Business Report.\n    ","pubdate":"Fri, 10 Apr 2015 20:28:58 +0530","newspaper":"BBC"},{"title":"VIDEO: 'Screwed up behaviour is normal'","content":"In his seminal work on the role of high-frequency traders in global stock markets, Michael Lewis shone a light on inequalities between traders in global financial markets.The central thesis of Flash Boys, which is published with an updated final chapter in paperback this week, is that electronic trading has rigged the market against ordinary investors, particularly in America.Computer algorithms allow high-frequency trading (HFT) firms to \"get ahead\" of institutions investing on behalf of our pension funds and savings schemes.Kamal Ahmed spoke to him about how markets have changed, if at all, since the publication of his book.\n    ","pubdate":"Fri, 10 Apr 2015 15:58:22 +0530","newspaper":"BBC"},{"title":"VIDEO: Saving Uganda's Ankole Longhorn cows","content":"Used for food, trade and as a measure of social wealth, cattle are an integral part of daily life in Africa.Some breeds are rarer or more sought after than others, such as the Ankole Longhorns of Uganda. Not so long ago, this rare breed was on the brink of extinction, because of cross-breeding.The BBC's Roderick Macleod travelled to the south-west of the country to find out more about a new drive to preserve these animals and help transform economies.Watch: Africa Business Report\n    ","pubdate":"Fri, 10 Apr 2015 20:26:44 +0530","newspaper":"BBC"},{"title":"VIDEO: Microfinancing small Indian firms","content":"Getting a bank loan is a struggle for most people running a small business anywhere in the world and India is no different. So to make borrowing more accessible, the Indian government has launched the Mudra Bank - a microfinance initiative. The BBC's Samira Hussain finds out more for India Business Report.\n    ","pubdate":"Fri, 10 Apr 2015 17:34:35 +0530","newspaper":"BBC"},{"title":"VIDEO: India's bid to monitor air quality","content":"India's prime minister has launched a new air quality index, designed to monitor pollution in 10 of its cities. It comes at a time when the country is trying hard to attract industry and develop the economy - but can it be friendly to business without neglecting the environment? From Delhi, the BBC's Pratiksha Ghildial has been taking a look for India Business Report.\n    ","pubdate":"Fri, 10 Apr 2015 17:32:34 +0530","newspaper":"BBC"},{"title":"Sports Direct 'needs power check'","content":"Billionaire Mike Ashley's Sports Direct International has been challenged in Parliament about how the firm is run.Mr Ashley has been criticised before for the grip he has as a majority shareholder, on the firm - famous for top trainers on the cheap and indestructible oversized mugs. The Institute of Directors says it has warned already that Mr Ashley holds too much sway and the IoD's senior advisor on corporate governance, Oliver Parry says that there is no \"effective check on [Mr Ashley's] power\". Now his firm's handling of the collapse of one of its businesses, fashion chain USC, is also under scrutiny, being described at the Scottish Affairs Committee as \"well dodgy\".When approached by the BBC, a spokesman for Sports Direct declined to comment.USC, which sells clothing aimed at the younger market, ran into trouble last year after a row with a supplier. The company was losing \u00a320m a year and collapsed into administration in January, with the loss of 83 jobs at the USC distribution depot in South Ayrshire, provoking some indignation in Scotland. When the Scottish affairs committee met last month it was determined to find out more. Members were told, though, that Mr Ashley simply wasn't available to answer parliamentarians' questions at any point during the month of March.  Mr Ashley's legal representatives then took exception to the committee's habit of publishing correspondence, citing \"concerns over confidentiality\" and going as far as to invoke the European Convention on Human Rights.Keith Hellawell, the company's chairman, was sent in Mr Ashley's place. But he told the committee he and the board hadn't known anything about the collapse of USC until the day before it folded. But, he said, chief executive Dave Forsey had begun \"consulting\" with administrators Duff and Phelps as early as 14 November. Dr Hellawell insisted the firm \"didn't want\" USC to fold.'Well dodgy'Perhaps even more controversially USC hasn't shut up shop. Almost immediately after it went into administration the fashion retailer was bought by another part of Mr Ashley's business empire, through a so-called pre-pack administration, and is trading again. But with less debt, according to MPs. Conservative MP Simon Reevell told the Scottish affairs committee: \"Sports Direct had a company that was losing money, they now have the same company where the debt liability that had been incurred has gone.\"\"At one level, to use a technical phrase, this all looks well dodgy,\" he added.\n                        Mr Ashley built up his retailing empire after leaving school\n                    \n                Committee chairman Ian Davidson lamented how the process left the taxpayer \"done over\" in having to meet redundancy costs and unpaid taxes.  Dr Hellawell countered that by saying the company had paid more than \u00a31.3bn in tax to date.Board authorityThis latest controversy builds on earlier concerns.The IoD previously criticised a \u00a3200m payment to employees, including Mr Ashley. The company didn't disclose his share of the award. But \"we expect as a majority shareholder he got the majority of that,\" said Mr Parry.Paying a dividend, which would have been shared among all shareholders, may have been more appropriate, said Mr Parry. There are even more questions swirling around the collapse of USC.\"Could they have done something about it? And could they not have told shareholders and staff?\"If there had been a failure to inform the board sooner, this would suggest a lack of respect for the board's authority, he said.Workers were given even less notice, 15 minutes, before they heard they'd lost their jobs, the committee was told.Fatter marginsTo be sure, Mr Ashley has built a very clever business model. As well as owning stores, Sports Direct owns rights to popular brands such as Slazenger, Dunlop and Lonsdale. Good margins on these products mean he can afford to sell big brand products from the likes of Nike and Adidas at a greater discount than competitors, luring in shoppers.\n                        The company's success has made Mr Ashley a billionaire - he now owns Newcastle United Football Club\n                    \n                So when a customer pops in for a pair of Nike trainers, they can also be tempted to buy a Slazenger T-shirt or a pair of Lonsdale shorts with a fatter margin for Mr Ashley.Short leases on its stores mean it can be more flexible with demand, quickly shutting up shop and moving elsewhere if sales drop.It's a formula that has brought riches to shareholders in the long run. Those who bought shares in 2007 for \u00a33 apiece when Mr Ashley floated his firm would have more than doubled their money today. Luckier punters could have snapped up shares for as little as 32p in the crisis in 2008 and sold them last year for more than \u00a38. The firm has also been criticised for its zealous use of zero hours contracts, which don't guarantee regular work. Mr Hellawell told MPs that 4,300 of the firm's 19,000 staff were permanent. The rest of its workers are employed on zero-hours contracts.In terms of what must be done at Sports Direct, the IoD's Mr Parry said: \"It's hard to be prescriptive, but power lies with shareholders\" who must voice concerns at the firm's annual meeting on 10 September.Investors, employees and customers alike can watch Mr. Ashley to see whether this time he'd like to defend himself against these new allegations \n    ","pubdate":"Mon, 13 Apr 2015 04:40:29 +0530","newspaper":"BBC"},{"title":"From Lego bricks to luxury flats","content":"For an architect well known for his attention to detail, smart phones are a godsend for Soo Chan.The Singapore-based 53-year-old uses an app on his mobile phone to keep a close eye on his various projects around the world, such as a new luxury apartment building in New York.\"When I'm in Singapore there's a 12-hour time difference [with New York], so before I go to bed at night, I check on it through this app,\" says Mr Chan.The app connects to video cameras, which give him a real time view of construction work.He adds:  \"I can even zoom in and look closely at the welding.\"\nIn Asia there are three professions - lawyer, doctor and accountantSoo Chan\nThe founder and design director of Singapore-based SCDA Architects, Mr Chan has over the past 20 years built up a business that today employs more than 100 architects and designers.Its past projects around the world range from luxury hotel resorts in Bali and the Caribbean, the National Design Centre in Singapore, a shopping centre in Beijing, a government building in New Delhi, to private houses from France to Malaysia.It is quite an achievement for an architect who built the company without the need for outside investors, after starting out with just five members of staff.'Neo-tropical architecture'Born in Penang, Malaysia, before being raised in Singapore, Mr Chan says his first work as an architect was building things with Lego bricks as a small child.He also remembers from his young childhood that he was fascinated by watching his family's new home being constructed.\n                        His latest project is a luxury apartment building in New York with private swimming pools\n                    \n                Yet despite this early interest in architecture, his family had other hopes for him. \"In Asia there are three professions - lawyer, doctor and accountant,\" says Mr Chan.But determined to study architecture after leaving school, he travelled to the US where he did a degree in the subject at the prestigious Yale University in Connecticut.\n                        SCDA's buildings often feature courtyards\n                    \n                Mr Chan subsequently spent two years in New York, working for architectural firm Kohn Pederson Fox.The lure of home then saw him return to Singapore, where in 1995 he started SCDA Architects.Mixing both Asian and Western design, Mr Chan has developed his own style, which he calls \"neo-tropical architecture\", and which often aims to blur the lines between the inside and outside of a building, often utilising - in very simple terms - lots of courtyards.Mr Chan says that the practice has grown slowly but steadily over the years.While most staff are based at the headquarters in Singapore, some are located in Shanghai and New York.And despite his reputation for attention to detail, and regular visits to the other two offices, Mr Chan says he knows the importance of delegating.\"I focus on the bigger picture, and then come in and look selectively at the small, important details. I then find that the middle bit takes care of itself,\" he says.\n                        SCDA now employs more than 100 architects and designers\n                    \n                He adds that he relies on key employees to handle the day-to-day functioning of the company, confident that everyone at the firm speaks \"the same design language\".\"We share the same thinking about how you design and use space.\"'Big moment'Married, and with no less than six sons, Mr Chan's latest big development at work is the Soori High Line apartment building, which is currently being built in Manhattan, New York.He says it is a \"big moment\" for him, as it will be the first building he has built in the city where he began his working life as an architect.\n                        When not working, Mr Chan has a big family to look after\n                    \n                The luxury scheme has raised eyebrows in the Big Apple because 16 of the building's 31 apartments will have their own private, indoor swimming pools, something of a rarity in the city.\"The pools are definitely the highlight,\" says Mr Chan, who has already built apartment blocks in East Asia with private pools.\"It certainly evokes a reaction, you either like it, or you think it's a bit crazy. People think - it's a pool. Do I swim every day? How do I maintain it?\"But true luxury means never having to worry about all these practicalities.\"The risk is not in the making of it, but in culturally getting everyone - even my own salespeople and consultants - on board.\"The building is due to be finished in 2016, and Mr Chan is confident it will be a sell-out. The prices of the apartments range from $3m (\u00a32m) to $22m.\n    ","pubdate":"Mon, 13 Apr 2015 04:37:09 +0530","newspaper":"BBC"},{"title":"Electric car buyers 'need to hurry'","content":"\n                        Britain's best-selling plug-in electric car has sold 10,000 vehicles in the last year\n                    \n                Just before Christmas 2010, the then transport secretary, Philip Hammond, declared that 2011 would be the year of the electric car.He couldn't have been more wrong.However, had he said that 2015 would be the year - history might have judged him as prophetic.Figures from the UK car industry this week suggest we might finally be waking up to the electric revolution.In March 2015, we bought more than 6,000 \"plug-in\" cars, compared with around 1200 in March 2014 - a 400% increase.Plug-in hybrids - which have a conventional engine as well as an electric motor - saw sales rise by 984% over the same period, according to the Society of Motor Manufacturers and Traders (SMMT), admittedly from a very low base.Given the fall in the oil price, which has made conventional motoring cheaper, you might have thought that electric vehicles would be falling out of favour.In fact, the opposite has happened. Indeed, if the trend continues, we could well buy more than 30,000 electric vehicles this year alone.But the good news is also the bad: The government's \u00a35,000 subsidy on each new car will run out when a total of 50,000 have been sold - and that target could now be reached before the end of the year. Going Electric: Monthly Car sales in UK\nMarch 2015\nChange on March 2014\nPlug-in pure electric\n1,905\n+ 131.5%\nPlug-in hybrid\n4,209\n+ 984.8%\nAll plug-in cars eligible for grant\n6,104\n+ 404%\nSource: SMMT 8 April 2015\n\n\nIncentivesSo what has changed since 2011?To start with, there are many more plug-in models to chose from. Then there were just six; now there are 27 models which qualify for the government grant.The network of charging points has also expanded. There are now 3,000 places in the UK where you can plug in, and by doing so take advantage of motoring costs as low as 2p a mile.\"It's a classic rolling boulder,\" says Jim Holder, the editor of What Car? magazine.\"More manufacturers have come in, the infrastructure has grown, and there are a lot of incentives behind buying a car.\"Those incentives have been key: Road tax exemption, free entry to London's congestion zone, and the fact that the government currently pays  as much as \u00a35,000 towards the cost of a car - the plug-in grant. Company car tax rates are also much lower (see below).But beware. By my calculations, based on government and the SMMT figures, 31,000 plug-in grants have now been paid - leaving another 19,000 before the scheme ends.Given that we bought 8,500 eligible cars in the first three months of 2015, the grants may well run out by the Autumn.  If you're thinking of going electric, it may pay you to put your foot down.The scheme is due to be reviewed in May, but as yet no one knows whether the subsidy will be extended.\n                        Larry Wood believes customers will still buy electric cars, even without the subsidy\n                    \n                Car taxAt his show-room in north London, car dealer Larry Wood, of Hummingbird Motors, is unperturbed. The main reason is that Mitsubishi Outlander PHEV - a plug-in hybrid SUV - has proved so popular.It is now Britain's best-selling electric car, with more than 10,000 sales in the last year. He believes customers won't stop buying them, even if the plug-in grant is no longer available.\"If that does run out in the future, I still think people will buy these cars, but it just makes them \u00a35,000 cheaper,\" he says.In any case, some of his best customers are businesses, for whom the capital cost is not the only consideration. The main attraction for them is a lower rate of car tax. While the most polluting cars pay 35% in company car tax, electric cars - even though they used to be exempt - pay 5%.As a result, any business with a fleet of vehicles could still save thousands of pounds a year by going electric.TechnologyMost of the problems initially associated with electric vehicles are gradually being resolved, or so the industry would have you believe.\"Range anxiety\" - the fear of running out of charge - does not apply if you buy a hybrid car, which switches to its conventional engine as soon as the battery runs out of power.Nevertheless, those who drive pure electric cars still worry about getting stranded. \"Range anxiety will never go away,\" says Jim Holder.But ranges are being extended. Whereas a maximum range of 100 miles used to be typical, the latest cars offer well over that. General Motors hopes that its Bolt model, currently on the drawing board, will have a 200 mile range.The super-expensive Tesla S - already on sale in the UK - will go for 310 miles without a charge, according to the manufacturer.Another problem has been the cost of batteries, the main reason that electric cars are so pricey in the first place.But advances in technology could make them cost-competitive with petrol engines in less than a decade, according to two Swedish scientists.\n                        Tesla's fast-charge station in Maidstone, Kent\n                    \n                'Ferrari'Time spent charging has been another bugbear of electric motorists - if you can find a charge point of course.The government boasts there are now 7,000 in the UK, in 3,000 locations. 500 of those are \"fast chargers\", which can offer a 50% charge in as little as 20 minutes.But in reality, most charging stops are going to be for at least half an hour.And for motorists, understanding the rival charge point networks - and the different costs for using them - still requires some tenacity.Public subsidies for infrastructure have also changed, with the government ending its specific grant of up to \u00a37,500 per charge point.However, there is still some support available for owners under the Electric Vehicle Homecharge Scheme, which pays householders up to \u00a3700 to have a charge point installed at home.What is undeniable is that the appeal of the cars themselves has certainly improved.Where once electric cars looked like garden shed conversions, the designers of BMW and Porsche have now worked magic.Performance too has improved significantly. \"You now get instant torque away from the traffic lights,\" says Jim Holder. \"Frankly, not even a Ferrari will beat you off the line.\"\n    ","pubdate":"Sat, 11 Apr 2015 02:32:14 +0530","newspaper":"BBC"},{"title":"Who would buy in Dubai?","content":"\n                        Many investors have been tempted by the combination of swanky apartments and luxury lifestyle\n                    \n                Homebuyers in Dubai can choose from an apartment block with interiors encrusted in shiny crystals or multimillion-dollar villas on a man-made island. Is investing in these desert dwellings like playing on quicksand or has the city-state learnt the lessons of its 2008 property crash when it nearly went bust? The BBC's Mark Lobel investigates.There are countless reasons why people still buy in Dubai.It is the perfect tax haven for rich foreigners.Long-term resident and British developer Andrew Lemon says: \"Sun, fun, no tax still applies - and it's a big draw.\" He has noticed some people prefer it to Monaco to flee tax laws in France.Dubai is also a safe haven for regional investors in a stormy Middle East.Lebanese-born businesswoman Nejoud Nasr left Beirut for Jordan in 1975 when the civil war began. She feels Dubai is now the safest place in the region for a family, with the rest of the Middle East \"marked by a lot of political instability\".Blend of East and WestFor wealthy Asians, it is a close-by, comfortable, retirement village.For Indian former private banker Ranjita Balasubramaniam, Dubai ticks a lot of boxes.She likes its blend of East and West, wants to settle in the Emirates and employ domestic staff to help her at home.\"We have always had help around us. Dubai allows you the ability to have that,\" she said.A surge in house prices and sales since 2013 suggests confidence is returning to Dubai's real estate sector after its disastrous past.But what went wrong and has anything actually changed?Musical chairsWhen foreigners were permitted to buy in 2002, it helped turn the obscure fishing village into a global hub.Estate agents who watched the property boom over the next six years said it was like the Wild West because the regulations were so lax.Speculators made a fast buck by selling off-plan properties for a large profit within weeks of their initial investment - with no intention of ever living there.Linda Mahoney, one of Dubai's first Western estate agents, described it as a game of musical chairs.\"It went on and on and on and there was always another place to sit\u2026 In June 2008 the music stopped and the chair wasn't there.\"\n                        Investment apartments are large and can be sumptuously appointed\n                    \n                Once the global credit crisis of 2007 spread to Dubai a year later, lending dried up, many foreign investors left and confidence in the emirate's overinflated real estate market was shattered.It was a bloody period as property prices fell from between a third to under half of their previous value in months. The stock market fell 70% and thousands of mostly Asian labourers were sent back home.Huge housing projects were stalled or scrapped.Before the crash, investors piled into one large, well-located apartment block named after Hanover Square in the West End of London.The Dubai development is 15 minutes from a golf course and the sea and half an hour from the busiest international airport in the world.In 2007 investors put down tens of thousands of dollars but have so far received nothing.Its developer ACW Holdings said it is \"rapidly nearing completion\". When I visited the site it looked about 80% ready. It should have been completed six years ago.Others have been less lucky and lost everything on cancelled projects.Surreally craftedAnother effect of the financial crisis was the alarming exposure of Dubai's huge, outstanding debt at the time.To understand it, I took a boat trip around the iconic Palm Jumeirah to see the eye-watering multimillion dollar villas on the man-made island.They represent a life of poolside and yacht-filled luxury surreally crafted in the middle of the desert.Yet in 2008 the ambitious island project, along with two others also built by the government-owned developer Nakheel, nearly brought Dubai to the brink of defaulting on its debt because so much had been borrowed to make it happen.Only a $20bn lifeline from Dubai's oil-rich neighbour, Abu Dhabi, saved it from going bust.Half the money was used to bail out Nakheel, which brought in a new man to steer it to calmer waters.The Nakheel chairman Ali Rashid Lootah told me the company had a remaining $1.2bn of debt that he expects to clear by August next year.However, other state-related entities are holding $140bn worth of debt, according to the International Monetary Fund, which it believes is a worrying amount if another downturn occurs.But real-estate regulations have improved.UnpredictableThe government has discouraged speculators by doubling a transaction tax and there are rules to help investors seek compensation if a project is cancelled.The combination of the new rules and weaker economic conditions globally, which affect investment in Dubai as foreigners make up around 90% of its population, means the market is cooling. Property prices have dropped about 5% so far this year.Yet many in the industry do not rule out another bubble forming - as Dubai remains unpredictable.Sunil Jaiswal organised the first international property show dedicated to Dubai. He told me that the question he gets asked most in any show is whether the market will crash.\"Right now the market is quite stable in Dubai. We haven't seen excessive growth... Will the market crash? Of course it will. Maybe it's three months away. I don't know,\" Mr Jaiswal said.Ms Mahoney also anticipates there may be an overheating of the market as Dubai's hosting of the Expo 2020 international trade fair nears.\n                        Emaar, a leading property developer in the UAE, also built the Burj Khalifa, the world's tallest building\n                    \n                \"By 2016-17 I think that the government will probably have to be careful and watch out for another bubble. That's my feeling,\" she said.At the top of one of Dubai's grandest designs, the Burj Khalifa, the tallest building on Earth, I met the man whose company Emaar built it and which has sold tens of thousands of properties in Dubai.StormMohamed Alabbar is one of the emirate's richest and most politically well-connected developers.He said the current dip in the market - which he prefers to call \"a nice adjustment\" - may last for up to two years and has made the city \"much more affordable\".It ties in nicely with his belief that Dubai could become the New York or London of the Middle East by rivalling the amenities and business facilities of the global cities while offering a better location and cost.\"The region around us, with two billion people, they are all looking for an interesting hub where you can live, where you can invest, where it is safe, where it is prosperous, clean and progressive,\" he said.He did concede that more needs to be done by the government to address the plight of badly paid and poorly housed construction workers, who typically earn between $130 and $380 a month with free board and lodging in often cramped conditions.Last month, a rare protest was held by hundreds of South Asian labourers on a development of Mr Alabbar's near the Burj Khalifa, despite a ban on protests in the emirate. The labourers were concerned that their pay was dramatically down after a cut in overtime work. Mr Alabbar's company, Emaar, said the contractors employing the workers had been given clear guidelines to carry out their duties properly and resolve the matter quickly.   There is also uncertainty over how the region will cope with low oil prices. Although Dubai is not directly reliant on oil revenues, many of its lenders and investors are.So there are many unknowns on which Dubai's future rests. However exciting an opportunity it may appear, estate agents recommend that only long-term investors who can weather a financial storm should consider buying in Dubai.Even then, any investment should be handled with care.\n    ","pubdate":"Sun, 12 Apr 2015 16:15:53 +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":"Pfizer walks away from $118 billion AstraZeneca takeover fight","content":"\n\nLONDON\/NEW YORK (Reuters) - Pfizer abandoned its attempt to buy AstraZeneca for nearly 70 billion pounds ($118 billion) on Monday as a deadline approached without a last-minute change of heart by the British drugmaker.\nThe decision ends a month-long public fight between two of the world's biggest pharmaceutical companies that sparked political concerns on both sides of Atlantic over jobs and corporate tax maneuvers.British rules now require an enforced cooling-off period. AstraZeneca could reach out to Pfizer after three months and Pfizer could take another run at its smaller British rival in six months time, whether it is invited back or not.Pfizer's move came two hours before a 5.00 pm (1200 ET) deadline to make a firm offer or walk away, under UK takeover rules. Its decision to quit the stage, at least for now, had been widely expected after AstraZeneca refused its final offer of 55 pounds a share.\"Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca,\" Pfizer said in a short news release.The biggest U.S. drugmaker promised it would not go hostile by taking its offer directly to AstraZeneca shareholders, leaving the fate of what would have been the world's largest ever drugs merger in the hands of its target, whose board would have had to make a complete U-turn to get a deal done.\"We continue to believe that our final proposal was compelling and represented full value for AstraZeneca based on the information that was available to us,\" said Ian Read, Pfizer's chairman and chief executive.Pfizer's final offer was at a price that many analysts and investors had previously suggested would bring AstraZeneca to the table for serious negotiations.\n        \n        But in rejecting an earlier offer of 53.50 pounds as undervaluing the company, the British group indicated it needed a bid more than 10 percent higher, or at least 58.85 pounds per share, for its board to consider a recommendation.Pfizer had urged AstraZeneca shareholders to agitate for engagement and several expressed disappointment at its intransigence, although others - encouraged by AstraZeneca's promising drug pipeline - backed the firm's standalone strategy.AstraZeneca Chairman Leif Johansson welcomed Pfizer's decision to back down, which he said would allow the British company to focus on its growth potential as an independent company.What happens next will depend upon whether AstraZeneca's share price deteriorates in the coming weeks and how hard its shareholders push for it to revisit a deal with Pfizer.BlackRock, AstraZeneca's biggest shareholder, backed the board's rejection of Pfizer's 55 pounds a share offer, but urged it to talk again in the future.POLITICAL OPPOSITIONThe proposed transaction ran into fierce opposition from politicians in Britain, Sweden - where AstraZeneca has half it roots - and the United States over the likelihood that the marriage would lead to thousands of job cuts.Ultimately, it was price and the lack of room for eleventh-hour maneuvering by Pfizer that killed the deal.Pfizer had several reasons for taking aim at AstraZeneca for what would have been its fourth mega-merger in 14 years.Highest on the list appeared to be Pfizer's desire to take part in a recent trend of so-called tax inversions, under which it could reincorporate in Britain and pay significantly lower corporate tax. Pfizer would also be able to use tens of billions of dollars it has parked overseas, avoiding high U.S. taxes for repatriating the huge cash pile.Pfizer also had its eye on a promising portfolio of drugs in AstraZeneca's developmental pipeline, especially several potentially lucrative cancer medicines.It was this pipeline that AstraZeneca management used to make its case for Pfizer significantly undervaluing the company.Chief Executive Pascal Soriot went as far as making a 10-year forecast for a 75 percent rise in sales by 2023.\"As we said from the start, the pursuit of this transaction was a potential enhancement to our existing strategy,\" Pfizer's Read said. \"We will continue our focus on the execution of our plans, bringing forth new treatments to meet patients' needs and remaining responsible stewards of our shareholders' capital.\"The merger would have restored Pfizer as the world's largest drugmaker by sales, a position it relinquished to Swiss-based Novartis when billions of dollars in annual revenue evaporated after its top-selling cholesterol fighter Lipitor began facing generic competition in 2011.(Editing by David Evans and Mark Potter)","pubdate":"Mon, 26 May 2014 21:25:17 +0530","newspaper":"Reuters"},{"title":"See you later? Slim Pfizer deal hopes prop up AstraZeneca","content":"\n\nLONDON (Reuters) - Pfizer's (PFE.N) chances of striking a deal to buy AstraZeneca (AZN.L) in the coming days look vanishingly small, but the notion it could return later this year is propping up the British drugmaker's shares.\nThe stock rose 3 percent on Wednesday, despite AstraZeneca insisting on Tuesday there wasn't the slightest chance of Pfizer's $118 billion offer being increased by a May 26 deadline set by UK takeover rules.While Pfizer agrees it cannot raise its final offer of 55 pounds a share, its advisers have been urging investors to speak up against AstraZeneca's decision to reject its proposal, according to several people familiar with the matter.One suggestion now circulating is that disgruntled AstraZeneca shareholders could call an extraordinary general meeting (EGM) to put Pfizer's offer to a vote. The support of just 5 percent of shareholders is needed to call such a meeting.Even if shareholders wanted to revive the bid - or oust the board - an EGM would not come in time to rescue the current process before the takeover rules deadline, but they could force AstraZeneca to open communications with Pfizer in late August, after a compulsory three-month cooling-off period.\"Some of the more active hedge funds, instead of selling out are buying in,\" said one hedge fund investor. \"There has been sufficient shareholder dissatisfaction about this deal that investors can use that to get a favourable outcome further down the road.\"The only way a deal could be salvaged this month would be for AstraZeneca Chairman Leif Johansson and his board to make a complete U-turn and recommend Pfizer's current 55-pound offer, which looks out of the question.More leading shareholders spoke out publicly on the deal on Wednesday, but they didn't speak with one voice, underlining the challenge facing the Pfizer camp in trying to stir an investor rebellion.\n        \n        Threadneedle Asset Management came out in support of AstraZeneca's stance, while investment and insurance group AXA said the board should not have prevented Pfizer's offer being put to investors.The AXA view was echoed by Legal & General, according to the Wall Street Journal. An L&G spokesman confirmed to Reuters that the fund manager had talked to both companies but declined to comment further.EVENLY BALANCEDTo date, investors representing around 10 percent of AstraZeneca's share base have spoken out against the board's decision, with a similar number broadly lending their support, according to Thomson Reuters data.At more than 44 pounds, the shares remain well short of Pfizer's offer but a fair way above the undisturbed price of 37.82 pounds seen before news of Pfizer's interest emerged in mid-April.A recent run of favourable clinical trial news about AstraZeneca's new drugs has also supported the stock, with UBS issuing a note on Wednesday setting a price target for the shares of 50 pounds, without a Pfizer deal.Analysts at Barclays, who have a 40 pounds target, said in a note that the market was pricing in a probability of around 15 percent that there would eventually be an agreed deal with Pfizer valuing AstraZeneca at some 60 pounds.The U.S. company's ambitions to create the world's largest drugmaker - and slash its tax bill in the process - appeared within reach at one point in talks between the two sides last weekend, with AstraZeneca indicating a desired price of 58.85 pounds.But AstraZeneca's Johansson told Reuters on Monday that Pfizer had closed down discussions after a telephone call lasting more than an hour on Sunday and had surprised AstraZeneca by issuing its final offer later that night.(Reporting by Ben Hirschler; Editing by Will Waterman)","pubdate":"Wed, 21 May 2014 23:53:11 +0530","newspaper":"Reuters"},{"title":"AstraZeneca rejects Pfizer's take-it-or-leave-it offer","content":"\n\nLONDON (Reuters) - Britain's AstraZeneca on Monday rejected a sweetened and \"final\" offer from Pfizer, puncturing the U.S. drugmaker's plan for a merger to create the world's biggest pharmaceuticals group.\nThe rebuff came nine hours after Pfizer said on Sunday night it had raised its takeover offer to 55 pounds a share, or around 70 billion pounds ($118 billion) in total, and would walk away if AstraZeneca did not accept it.The rejection left some major shareholders fuming as shares in AstraZeneca slumped 11 percent to close at 42.88 pounds after falling as much as 15 percent - their biggest ever intra-day decline. Pfizer rose 1 percent in New York.AstraZeneca Chairman Leif Johansson told Reuters he now saw no prospect of a deal with Pfizer before a deadline of May 26 set under British takeover rules, or any likelihood of that deadline being extended.Experts also said Pfizer had left itself no room to return with a last-minute higher offer due to the strict takeover code.Pfizer wants to create the world's largest drugs firm, with a headquarters in New York but a tax base in Britain, where corporate tax rates are lower than in the United States. The plan has met entrenched opposition from AstraZeneca, as well as politicians and scientists who fear cuts to jobs and research.\"It died of multiple wounds. Too little cash, too many suspicions about Pfizer's motives, and too little confidence in its assurances about jobs,\" said Erik Gordon, professor at the University of Michigan's Ross School of Business. \"Pfizer's chances are going down, despite its offer of a higher price.\"Johansson said he had made clear in discussions with Pfizer that his board could only recommend a bid that was more than 10 percent above an offer of 53.50 pounds made by Pfizer on Friday, which would amount to at least 58.85 pounds. He blamed Pfizer for calling a halt to discussions after a telephone call lasting more than an hour with Pfizer's chairman and CEO Ian Read on Sunday afternoon.\n        \n        In addition to the inadequate price, Johansson also slammed what he said was a lack of industrial logic behind Pfizer's move; the risks posed to shareholders by the controversial tax plans; and the threat to life science jobs in Britain, Sweden and the United States.\"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimization,\" Johansson said in a statement.\"From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case.\"But many of Johansson's shareholders were deeply unimpressed. \"We do not think the Astra management have done a good job on behalf of shareholders,\" said one fund manager at a top-10 investor in the group.Alastair Gunn of top-30 shareholder Jupiter Fund Management said: \"We are disappointed the board of AstraZeneca has rejected Pfizer's latest offer so categorically. They should have at least engaged in a constructive conversation with Pfizer.\"However, Pfizer's proposed takeover, which would be the largest-ever foreign acquisition of a British company, is opposed by many scientists and politicians who fear it would undermine Britain's science base.The U.S. group said its new offer was final and could not be increased. It said it would not make a hostile offer directly to AstraZeneca shareholders and would only proceed with an offer with the recommendation of the AstraZeneca board.Pfizer had also increased the cash element in its offer to 45 percent, under which AstraZeneca shareholders would get 1.747 shares in the enlarged company for each of their AstraZeneca shares and 24.76 pounds in cash.The new offer represents a 15-percent premium over the current value of a cash-and-share approach made on May 2 - worth 50 pounds a share at the time - which was also swiftly rejected by AstraZeneca.Pfizer's Read said he believed his proposal was \"compelling\" for AstraZeneca shareholders and expressed frustration at its refusal to talk, urging the British company's shareholders to pressure its board to engage.TAKE A BREAKIn the absence of further discussions or an extension of the deadline for making a firm offer under British takeover rules, Pfizer's proposal will expire at 5 p.m. (1600 GMT) on May 26. After that, it would have to wait six months before making another bid.\"AstraZeneca will have six months to demonstrate that it was right to reject Pfizer's offer, or face the prospect of a fresh approach,\" said analyst Mick Cooper at Edison Investment Research.While Pfizer would have to wait on the sidelines until November, it would be possible for AstraZeneca to initiate talks from late August, if it decided it wants coax a higher offer.The latest increased offer had been widely expected. Pfizer said last week it would consider a higher offer as it urged AstraZeneca's board to enter talks.The British firm has laid out details of its pipeline of new drugs and argues it has no need for a deal. However, many analysts believe its projections that it can increase sales by 75 percent to $45 billion a year by 2023 are over-optimistic.There has been a mounting political backlash against the proposed deal in Britain, the United States and Sweden, where AstraZeneca has half its roots.The Swedish government launched a concerted effort on Friday against a merger that it fears will lead to cuts in science jobs and research, echoing concerns aired by British lawmakers at two parliamentary hearings last week, and fears for U.S. jobs in states where AstraZeneca has a large presence.British Prime Minister David Cameron has said he wanted more assurances from Pfizer, in the event of a takeover, although as the head of the free-market Conservative Party he does not want to be seen to be deterring foreign corporate investment.Pfizer gave a five-year commitment to complete AstraZeneca's new research centre in Cambridge, retain a factory in northern England and put a fifth of its research staff in Britain, but added that these pledges could be adjusted if circumstances changed \"significantly\".The tax aspects of the deal, meanwhile, have sparked anger in the United States, where lawmakers are now considering legislation to prevent what are known as corporate inversions, under which U.S. companies re-incorporate overseas to avoid U.S. taxes.Inversions have helped fuel a wave of deals in the pharmaceuticals sector in recent months. Buying AstraZeneca would allow Pfizer to carry out the largest such deal yet.(Additional reporting by Chris Vellacott, Jemima Kelly, Kate Holton and Anjuli Davies in London; Editing by Eric Walsh, David Holmes, Alastair Macdonald and Philippa Fletcher)","pubdate":"Tue, 20 May 2014 04:07:37 +0530","newspaper":"Reuters"},{"title":"Pfizer raises bid for AstraZeneca to $117 billion","content":"\n\nLONDON (Reuters) - U.S. drugmaker Pfizer said on Sunday it had raised its offer for British rival AstraZeneca to 69.3 billion pounds ($116.6 billion), or 55 pounds a share, and would walk away if AstraZeneca did not accept it.\nPfizer wants to create the world's largest drugs company, with a headquarters in New York but a tax base in Britain, where corporate tax rates are lower than in the United States. It has met entrenched opposition from AstraZeneca, as well as many politicians and scientists who fear cuts to jobs and research.The U.S. group said its new offer was final and could not be increased. It said it would not make a hostile offer directly to AstraZeneca shareholders and would only proceed with an offer with the recommendation of the AstraZeneca board.Pfizer also increased the cash element in its offer to 45 percent, with AstraZeneca shareholders set to receive 1.747 shares in the enlarged company for each of their AstraZeneca shares and 2,476 pence in cash.Two banking sources earlier described 55 pounds a share as the \"magic number\" at which a deal could get done.Pfizer said it had written to AstraZeneca's chairman on May 16 offering 53.50 pounds a share but had been told that this still substantially undervalued the company, prompting it to make a further sweetened offer. AstraZeneca had already rejected an earlier approach worth 50 pounds a share on May 2.\"We believe our proposal is compelling for AstraZeneca's shareholders and that a Pfizer-AstraZeneca combination is in the best interests of all stakeholders,\" Pfizer Chief Executive Ian Read said in a statement.He expressed frustration at AstraZeneca's refusal to engage in talks and urged the British company's shareholders to pressure its board to start discussions.\"Following a conversation with AstraZeneca earlier today, we do not believe that the AstraZeneca board is currently prepared to recommend a deal at a reasonable price,\" Read said. \"We remain ready to engage in a meaningful dialogue but time for constructive engagement is running out.\"In the absence of further discussions or an extension of the deadline for making a firm offer under British takeover rules, Pfizer's proposal will expire at 5 p.m. London time on May 26.AstraZeneca said it had no immediate comment on Pfizer's latest move.DRUG PIPELINE HOPESThe British firm has laid out details of its pipeline of new drugs and argues there is no inevitability about a Pfizer deal, although its management also acknowledges the board would have to consider a compelling bid.Investors have backed AstraZeneca in rejecting 50 pounds a share, but many have said they would want it to engage in discussions if Pfizer came back with an improved offer.There has been a mounting political backlash against the proposed deal in Britain, the United States and Sweden, where AstraZeneca has half its roots.The Swedish government launched a concerted effort on Friday against a merger it fears will lead to cuts in science jobs and research, echoing concerns aired by British lawmakers at two parliamentary hearings last week and fears for U.S. jobs in states where AstraZeneca has a large presence.Pfizer's bid would be the largest foreign takeover of a British firm and is opposed by many scientists and politicians who fear it will undermine Britain's science base.British Prime Minister David Cameron has said he wants more assurances from Pfizer, and science minister David Willetts said last week he would like to see longer guarantees on investment than the five years currently promised by Pfizer.The UK government has also held exploratory discussions with Brussels about strengthening its ability to force Pfizer to honor commitments on jobs and research under European Union rules.But Cameron, head of the free-market Conservative Party, has also said Britain does not want to be seen to be pulling up the drawbridge to foreign companies.($1 = 0.5942 British Pounds)(Editing by Larry King and Cynthia Osterman)","pubdate":"Mon, 19 May 2014 04:27:33 +0530","newspaper":"Reuters"},{"title":"Pfizer pledges to ringfence key new drugs in AstraZeneca deal","content":"\n\nLONDON (Reuters) - Pfizer (PFE.N) said it would ringfence the development of important drugs if it acquired AstraZeneca (AZN.L), rejecting a charge from the British company that a takeover would disrupt important research and put lives at risk.\n\"As we put these companies together, we will continue with our pipeline, AZ will continue with theirs,\" Pfizer's Chief Executive Ian Read told lawmakers on a second day of questioning about what could be the biggest ever UK corporate deal.\"We would ringfence any important products and they would continue to be developed. There is absolutely no truth to any comment that some products of critical nature would be delayed getting to patients, if anything we would accelerate that to patients.\"AstraZeneca said on Tuesday that Pfizer's proposal risked disrupting its research and delaying getting life-saving new drugs to market, as well as undervaluing the business.\"What will we tell the person whose father died from lung cancer because one of our medicines was delayed - and essentially was delayed because in the meantime our two companies were involved in saving tax and saving costs?\" the British company's Chief Executive Pascal Soriot said on Tuesday.On a second day in Parliament focused on the concerns of the science community, Read faced calls from a committee of lawmakers and other speakers for Pfizer to extend its commitment to UK jobs and research from five years to 10 or more.\"I would like to see a longer period than that (five years),\" science minister David Willetts told the committee.British Prime Minister David Cameron said he was seeking the best possible guarantees from Pfizer.\"This government has been absolutely clear that the right thing to do is get stuck in to seek the best possible guarantees on British jobs, on British investment, and British science,\" he told lawmakers in parliament on Wednesday.The U.S. boss had earlier defended his five-year horizon, saying it was enough time to select medicines that had the greatest chance of approval and the biggest opportunity to meet the needs of patients.Pfizer had changed its R&D strategy to avoid lengthy, and ultimately fruitless, research by bringing in commercial and development expertise at the proof of concept stage in the assessment of experimental drugs, he said.\"It's very important for me for productivity to ... hold (scientists) accountable, to say 'I'm allocating you capital on a five-year period and I'm going to review that on five-year periods',\" he said.Pfizer has indicated it could raise its offer for Britain's second-biggest drugmaker from $106 billion, if AstraZeneca is prepared to talk, but lawmakers are deeply concerned about the impact of a takeover on the country's science base.The U.S. company has a record of making deep job cuts after past takeovers of companies including Wyeth, Warner-Lambert and Pharmacia.FEWER SCIENTISTSRead said on Wednesday there would likely be fewer scientists in a newly combined company than currently work in the two firms, but he declined to put any numbers on it.Nobel laureate Paul Nurse, the president of the Royal Society, Britain's national academy of science, wrote to the chairman of Parliament's science committee Andrew Miller to express his concern that Pfizer's promises so far were vague and inadequate.Pfizer's five-year commitment includes completing AstraZeneca's new research center in Cambridge, retaining a factory in the northwestern English town of Macclesfield and putting a fifth of its research staff in Britain if the deal goes ahead.But it has also said this could be altered if circumstances changed \"significantly\" and Scottish-born Read said he could not commit to maintaining a specific R&D budget for Britain.Nurse said a five-year pledge was simply not good enough.\"A five-year commitment to the UK is insufficient. A commitment of at least 10 years is required. Science is not a quick win,\" he wrote.AstraZeneca has rejected Pfizer's cash-and-stock offer, which was worth 50 pounds a share at the time it was made on May 2, arguing it has a bright future as an independent business, with a pipeline of promising new drugs.So-called Parliamentary select committees cannot block corporate transactions but they can question executives ferociously, as banks, energy companies and Rupert Murdoch's News Corp (NWSA.O) have all found out in the past.(Additional reporting by William James; Editing by Mark Potter, Greg Mahlich)","pubdate":"Thu, 15 May 2014 01:55:38 +0530","newspaper":"Reuters"},{"title":"UK lawmakers give Pfizer stick as it waves carrot at AstraZeneca","content":"\n\nLONDON (Reuters) - U.S. drugmaker Pfizer hinted it could raise its proposed $106 billion offer if AstraZeneca would only engage in talks, as its boss was grilled by UK lawmakers on his commitment to British research spending and jobs.\nIn response AstraZeneca said it would have to consider a compelling offer but accused Pfizer of an \"opportunistic\" proposal and a ploy to cut taxes that risked its reputation.Pascal Soriot, the French-born boss of AstraZeneca, came out fighting after Pfizer's Chief Executive Ian Read made clear the New York-based group would not rule out a hostile bid if Britain's second-biggest drugmaker did not enter merger talks.Having warned that AstraZeneca could wither without its financial muscle, Pfizer expressed its frustration at being rebuffed, and said on Tuesday that working with the UK company's board could help deliver \"optimal deal terms\" which AstraZeneca could recommend to its shareholders.Soriot - who appeared after Read to answer questions from a parliamentary select committee - said Pfizer's proposal risked disrupting its research and delaying getting life-saving new drugs to market, as well as undervaluing the business.\"What will we tell the person whose father died from lung cancer because one of our medicines was delayed - and essentially was delayed because in the meantime our two companies were involved in saving tax and saving costs?\" he asked.Pfizer's plan to cut its tax bill by re-domiciling to Britain if it buys AstraZeneca also posed a reputational risk, Soriot added.\"The proposed tax inversion structure, we are afraid, could generate substantial controversy and potentially delay this merger and potentially impact the reputation of our company.\"\n        \n        AstraZeneca rejected Pfizer's May 2 cash-and-stock offer worth 50 pounds a share and said it had a bright future as an independent business. But by early afternoon on Tuesday its shares had risen 2 percent to 47 pounds on anticipation it would have to consider a second proposal.\"If Pfizer continues to aggressively pursue the deal by raising the price, then AstraZeneca's board would have to little choice but to engage,\" said Ketan Patel, analyst at Ecclesiastical Investment Management, a holder of AstraZeneca shares.Pfizer is expected to come back with a sweetened offer for AstraZeneca this week, although people with knowledge of the matter said it would likely wait until after the parliamentary hearings. Both chief executives, who gave confident performances, will appear before another panel on Wednesday to answer questions about the science aspects of the deal.PUBLIC INTERESTPfizer's bid would be the largest foreign takeover of a British firm and is opposed by many scientists and politicians who fear it will undermine Britain's science base.Parliamentary select committees cannot block corporate transactions but they can question executives ferociously, as banks, energy companies and Rupert Murdoch's News Corp have all found out: The media coverage resulting from these sessions confirmed them as corporate bad guys for much of the public and placed future dealings under even closer scrutiny.British business minister Vince Cable told the panel Pfizer's assurances on jobs, research and manufacturing had to be meaningful and binding or the government could take action.\"When we are talking to the companies about assurances, they have to understand that as a government we would under certain circumstances consider intervention,\" he said, though he added that doing this using public interest rules was \"quite tricky\" and would have to comply with European merger law.Pfizer has a tarnished reputation in Britain after shutting down most of its research in southern England where Viagra was invented, with the loss of some 1,700 jobs.Now it faces skepticism about its long-term commitment to AstraZeneca, though Read told the panel: \"I'm a man of my word.\"Pfizer has given a five-year commitment to complete AstraZeneca's new research centre in Cambridge, retain a factory in the northwestern English town of Macclesfield and put a fifth of its research staff in Britain if the deal goes ahead.Having pledged to keep a fifth of research jobs in Britain, Scottish-born Read said he could not commit to maintaining a specific R&D budget there.\"We'll be efficient by some reduction in jobs. What I cannot tell you is how much or how many or where. We'll look at this as our global combined footprint and then we'll make decisions,\" Read said.He told the panel he expected the combined research expenditure of the merged drugmaker would be lower than that of the two separate companies, noting one of the drivers of his proposed deal was to increase efficiency to keep both firms competitive in an increasingly tough marketplace.WRONG PRESCRIPTIONAllan Black, national officer for the GMB trade union, told the select committee: \"The lawyers we've consulted don't see any obvious mechanism to make a five-year commitment binding.\"Tony Burke, Assistant General Secretary of Unite, the UK's biggest trade union, said members were \"very, very concerned\" about Pfizer's record of cutting 65,000 jobs worldwide since 2005.AstraZeneca pushed out details on its new drug pipeline late Monday and early Tuesday morning, flagging good news on drugs for asthma, rheumatoid arthritis, lupus and diabetes to prove it can stand on its own.Unite ran an advertisement in the country's biggest free morning newspaper Metro on Tuesday, saying Pfizer was \"the wrong prescription for Britain.\"(With additional reporting by William James; Editing by Sophie Walker)","pubdate":"Tue, 13 May 2014 22:33:28 +0530","newspaper":"Reuters"},{"title":"Pfizer defends 'powerhouse' Astra deal as CEO braces for grilling","content":"\n\nLONDON (Reuters) - Pfizer defended the business case behind its plan to acquire AstraZeneca on Monday and questioned the UK drugmaker's ability to stand alone for much longer as the New York-based group's CEO prepared for a grilling from British lawmakers.\nAiming to douse questions about its commitments to British jobs, Pfizer also said its agreement to complete AstraZeneca's new research centrer in Cambridge, retain a factory in northwest England and put a fifth of its research staff in Britain if the deal goes ahead were legally binding.The comments are Pfizer's latest counter to critics of its proposed $106 billion deal, which would be the largest foreign takeover of a British firm and is opposed by many scientists and politicians - as well as AstraZeneca itself.With its bid now the subject of heated debate in Britain's Houses of Parliament and across the country's news channels, the U.S. drugmaker took a harder line on Monday, saying the merger would create \"a UK-based scientific powerhouse\".It also took a swipe at AstraZeneca's go-it-alone strategy by arguing that Britain's second biggest pharmaceuticals business lacked the financial muscle to make the most of its experimental medicines.\"Looming patent expiries and near term revenue losses jeopardize its ability to deliver on its very promising pipeline,\" Pfizer said in a written submission to a parliamentary committee.Pfizer's Scottish-born Chief Executive Ian Read faces tough questions from British lawmakers on Tuesday about his plans to acquire AstraZeneca - a deal driven in large part by Pfizer's wish to cut its tax bill.Lawmakers will also interrogate AstraZeneca's French CEO Pascal Soriot and business minister Vince Cable on Tuesday. Then a second parliamentary committee on May 14 will question both CEOs again, along with British science minister David Willetts, about the science aspects of the deal.In response to worries about safeguarding the British company's research, Pfizer's R&D head Mikael Dolsten posted a video on Pfizer's website saying he had been through five different mergers which did not disrupt drug research.\"If you keep your sense of curiosity and an open mind, you can learn tremendously,\" he said.\"We must stay laser-focused on our important projects. And that's, of course, true for Pfizer scientists and AZ scientists and will be true also if we can make a potential combination come together.\"Dolsten said there was \"a really great fit\" with the products that AstraZeneca had in its portfolio, with potential for combining drugs in areas such as lung cancer to offer much more effective treatments.There is considerable skepticism about Pfizer's long-term commitment to British jobs, given its record of cost cutting after past acquisitions and after it said it could adjust those promises if circumstances change \"significantly.\"But Pfizer said the fact it had made the promises as part of its offer made them legally binding and the pledges should be given \"full weight\".Prime Minister David Cameron said on Sunday he had made \"very good progress\" in securing guarantees from Pfizer, though the firm's latest statements contained no new offers.SWEETENED OFFER?Pfizer is widely expected to come back with a sweetened offer for AstraZeneca this week, though people familiar with the matter said it was likely to wait until after the parliamentary select committee hearings.The British group rejected a May 2 cash-and-stock offer worth 50 pounds a share from its larger American rival, and CEO Soriot has been on a roadshow to meet leading investors and lay out his strategy for a prosperous independent future.Soriot has secured the backing of several high-profile shareholders, but others have told Reuters they would like him to engage with Pfizer if the U.S. group makes an improved offer.In addition to wanting a higher price - many analysts think Pfizer will have to offer around 55 pounds a share - investors are also keen to increase the proportion of cash in any deal from 32 percent at present.Pfizer is limited in the amount of cash it can offer since in order to keep the tax advantages of re-domiciling to Britain it must ensure at least 20 percent of the enlarged group is British-owned.Under British takeover rules, Pfizer has until May 26 to make a firm bid for AstraZeneca or walk away.A slide in Pfizer's share price following its first-quarter results last week has reduced the current value of its May 2 offer to just under 48 pounds. AstraZeneca shares traded 0.3 percent higher at 46.15 pounds by 1115 GMT.Pfizer has a tarnished reputation in Britain after shutting down most of its drug research in Sandwich, southern England, where Viagra was invented, with the loss of some 1,700 jobs.(Editing by Sophie Walker)","pubdate":"Mon, 12 May 2014 16:52:03 +0530","newspaper":"Reuters"},{"title":"UK research foundation concerned about Pfizer bid for AstraZeneca: FT","content":"\n\n(Reuters) - Wellcome Trust, Britain's biggest medical research foundation said it had \"major concerns\" about U.S. drug major Pfizer's (PFE.N) 63 billion pound offer for AstraZeneca (AZN.L), the Financial Times reported.\nIn a private letter to UK chancellor of Exchequer George Osborne, the trust raised doubts about Pfizer's commitment to investment in Britain and said AstraZeneca was critical to Britain's science base.\"Pfizer's past acquisitions of major pharmaceutical companies have led to a substantial reduction in R&D activity, which we are concerned could be replicated in this instance,\" Wellcome Trust Chairman Sir William Castell was quoted as saying by the British newspaper.Wellcome Trust became the latest in a series of vocal opponents to the potential merger, which would create the world's largest drugmaker.Pfizer is said to be considering raising its offer after AstraZeneca rejected its previous offer of $106 billion. The value of that cash-and-stock offer has since slipped because of a fall in Pfizer shares following weak quarterly results.The deal faces political scrutiny as pressure builds on Prime Minister David Cameron to protect Britain's jobs and research base should it go through.Wellcome Trust spends more than 750 million pounds a year on biomedical research, according to the FT. ($1 = 0.5899 British Pounds)(Reporting by Tasim Zahid in Bangalore; editing by Jane Baird)","pubdate":"Fri, 09 May 2014 01:21:39 +0530","newspaper":"Reuters"},{"title":"Molycorp slumps 17 percent to record low on bigger quarterly loss","content":"\n\n(Reuters) - Molycorp Inc (MCP.N) shares slumped 17 percent on Thursday in the wake of the U.S.-based rare earths producer's results a day earlier which showed a bigger first-quarter loss and production hiccups at a newly expanded processing plant in California.\nMarket concerns about the rate at which the Denver-area company was burning through cash and the possibility that it may have to tap the market for more funds later in the year sent the stock to an all-time low of $3.76 on the New York Stock Exchange.The company reported a net loss on Wednesday of $86.0 million as rare earth prices dropped, more than double its loss of $38.2 million a year earlier, and it produced less material than expected at its Mountain Pass facility in California.\"In one word, it is all about uncertainty... They were not able to really tell the market when Mountain Pass will be running at the levels - production and cost - that they need,\" said Luisa Morena, an analyst at Euro Pacific Canada.Molycorp has sunk $1.25 billion into modernizing and expanding the Mountain Pass facility. But production interruptions in the first quarter resulted in output being less than the company expected.The company listed on the New York Stock Exchange in 2010 at $13, and soared above $79 in May 2011 when rare earth prices were rallying.Prices of rare earths - an essential part of many high-tech products from smartphones to hybrid cars - have dropped since early 2011 as China, the world's main producer, eased export controls.It is \"pretty certain\" that Molycorp will try to raise funds in the market again, Morena said.\"They have some $1.3 billion in debt and they will have to restructure that next year or maybe later this year... if the market doesn't improve,\" she said.(Reporting by Nicole Mordant in Vancouver; Editing by Bernadette Baum)","pubdate":"Thu, 08 May 2014 23:22:07 +0530","newspaper":"Reuters"},{"title":"AMC Networks forecasts slower advertising growth","content":"\n\n(Reuters) - Cable TV broadcaster AMC Networks Inc (AMCX.O) said it expects slower advertising growth this quarter as its latest series, \"Turn\", draws fewer viewers than its older hits, sending its shares down nearly 18 percent.\nAMC also reported a first-quarter profit that missed analysts' estimates as it spent more on new programs to replace hit shows such as \"Breaking Bad\" and \"Mad Men\".The company's newest show \"Turn\" debuted in April with 2.1 million viewers, less than half of what its hit zombie show \"The Walking Dead\" started with. (r.reuters.com\/sap29v)\"It sounds like the costs will continue to be higher-than-expected in the second and third quarters, as they are replacing licensed shows with wholly owned shows,\" Evercore Partners analyst Alan Gould said.\"Turn\", which tells the story of four childhood friends who became spies during the American Revolutionary War in 1778, is facing stiff competition from HBO's hit series \"Game of Thrones\".\"The series is not doing that well. I think they'll have to write off that show,\" Albert Fried & Co LLC analyst Rich Tullo said.AMC has also lined up \"Halt & Catch Fire,\" a series set during the personal computer boom of the 1980s, for a June launch.The company's operating expenses soared 48 percent to $376.9 million in the quarter ended March 31, partly due to its purchase of Chellomedia \u2014 the former international content arm of Liberty Global Inc (LBTYA.O).Revenue jumped 37 percent to $524.6 million, beating the average analyst estimate of $507.5 million.Advertising revenue increased 27 percent as more people watched the fourth-season finale of \"The Walking Dead\".National networks revenue rose 20.7 percent to $448.7 million. Revenue from AMC's international networks category, which includes Chellomedia, rose seven-fold to $76.6 million.Net income rose to $71.4 million, or 98 cents per share, from $61.5 million, or 85 cents per share, a year earlier.Excluding items, the company earned $1.04 per share.Analysts on average had expected earnings of $1.16 per share, according to Thomson Reuters I\/B\/E\/S.AMC shares were down 9 percent at $59.61 on the Nasdaq on Thursday afternoon after falling to $53.99 earlier in the day.Almost 4 million shares changed hands by 1320 ET, about five times the stock's 10-day moving average.(Reporting By Lehar Maan in Bangalore; Editing by Sriraj Kalluvila and Simon Jennings)","pubdate":"Thu, 08 May 2014 23:06:16 +0530","newspaper":"Reuters"},{"title":"Cheetah Mobile shares rise about 13 percent in debut","content":"\n\n(Reuters) - Cheetah Mobile Inc's (CMCM.N) shares rose about 13 percent in their market debut, valuing the Chinese security software maker at about $2.2 billion, after its initial public offering was priced near the top end of the expected range.\nEarlier on Thursday, the company said its offering of 12 million American depositary shares (ADSs) was priced at $14 each, raising $168 million .Cheetah had said it expected its IPO to be priced between $12.50 and $14.50 per ADS.The Beijing-based company provides security and optimization software used both in smartphones and PCs. Its apps such as Clean Master and Battery Doctor are popular on Google Play.Cheetah's shares opened at $15.25 and touched a high of $15.89 in early trading on the New York Stock Exchange.The company is being spun out of software maker Kingsoft Corp Ltd (3888.HK), which will retain control with about 54 percent of Class B shares and 4.7 percent of Class A shares.Tencent Holdings Ltd (0700.HK), currently China's largest listed internet company and owner of the mobile messaging app WeChat, is the second-biggest shareholder in Cheetah with an 18 percent stake.Cheetah's app Clean Master, which boosts memory in smartphones and protects users' data, had 237.3 million downloads and 72.9 million average daily active users in March, the company said.The company also makes an internet browser for mobile phones and PCs. The company's rivals include Qihoo 360 Technology Co (QIHU.N), another U.S.-listed Chinese company.Cheetah's revenue more than doubled in 2013, while its profit surged 530 percent. The company had net income of $3 million and revenue of $50.8 million in the quarter ended March 31.Net proceeds from the offering will be used for marketing and other corporate purposes, Cheetah said in the filing.Morgan Stanley, JPMorgan and Credit Suisse were among the underwriters for the IPO.Chinese companies are flocking to the U.S. market in their biggest numbers since 2010, encouraged by high investor demand for technology start-ups.Some 30 Chinese companies could list in the United States this year, according to investment bankers interviewed by Reuters.Listings by overseas companies accounted for 16 percent of the 68 U.S. IPOs this year as of March 18, raising $1.9 billion.Alibaba Group Holding Ltd IPO-ALIB.N filed for its hugely anticipated IPO on Tuesday. E-commerce company JD.com Inc IPO-JD.O is also likely to go public soon.Twitter-like messaging service Weibo Corp (WB.O) had a successful debut in April, with its shares soaring as much as 19 percent when they listed.(Reporting by Avik Das in Bangalore; Editing by Sriraj Kalluvila and Kirti Pandey)","pubdate":"Thu, 08 May 2014 19:35:22 +0530","newspaper":"Reuters"},{"title":"'Candy Crush' maker King serves up bittersweet results, shares fall","content":"\n\n(Reuters) - King Digital Entertainment Plc's stock plummeted more than 13 percent on Wednesday as signs that the company may be losing steam overshadowed better-than-expected quarterly results from the maker of hit mobile game \"Candy Crush Saga.\"\nKing, reporting for the first time since a disappointing initial public offering earlier this year, told analysts on a conference call that some players of King's two-year-old signature title were spending less money in the game as it matures.Candy Crush Saga accounted for two-thirds of the company's gross bookings in the first quarter, down from 78 percent in the previous quarter.Total gross bookings rose just 1 percent from the fourth quarter 2013. And though revenue from in-game purchases was up, monthly unique payers - gamers who actually spend money in King's titles - dropped to 11.9 million from 12.2 million in the previous quarter.Moreover, King's net profit of $127 million, was up from $53 million a year ago, but slipped 20 percent from $159 million in the previous quarter. On a call with analysts, executives said the company incurred expenses in marketing its new \"Farm Heroes Saga\" game in the first quarter.King's shares dropped to $16.25 in late afternoon trading. The stock has not approached its IPO price of $22.50 since it began trading in March.Arvind Bhatia, an analyst with Sterne Agee, said Candy Crush was fading sooner than expected. \"Other games made up for it ... if you are looking at it glass half full,\" he said.\"But if you are looking at the glass half empty, you'd say their core flagship is declining really fast,\" Bhatia said. \"All the pressure is on the new games and there's no guarantee they will be sustainably successful.\"If it fails to cultivate a suite of hits beyond its marquee title, King may be unable to dodge the fate of \"Farmville\" maker Zynga Inc and \"Angry Birds\" developer Rovio Corp, which are both struggling to retain players.\"What matters is if each quarter, the rate of growth of their other games offsets the rate of decline in Candy Crush and they are diversifying and they are no longer a one-hit wonder,\" Michael Pachter, an analyst at Wedbush Securities, said.DOWNHILL RACERSInvestors have long warned about the fickle nature of the mobile gaming industry, where titles can race to the top of app-downloads charts but go downhill just as quickly.\"You can have hits and once they start declining, they decline in a very fast spurt,\" Bhatia said.King plans to launch new titles in the second half of the year, including a version of Candy Crush for the Chinese market this summer. It will also release sequels to Candy Crush and its \"Bubble Witch Saga\" game.Farm Heroes Saga, which debuted on mobile devices in January, has quickly become one of the top-10 grossing games on Apple's and Google's app stores. But whether it continues to retain users, and King's new offerings are successful, remains to be seen.\"The decline of Candy Crush Saga will be more than offset by our new IP (games),\" King's Chief Executive Officer Riccardo Zacconi told analysts.London-based King's first-quarter revenue rose three-fold to $606.7 million from the year-ago period while net profit rose to $127.2 million, or 41 cents per share from $52.7 million, or 16 cents per share, a year earlier.Excluding items, King earned 61 cents per share. Analysts on average were expecting a profit of 59 cents per share on revenue of $601.5 million, according to Thomson Reuters I\/B\/E\/S.King's shares hit a low of $15.84 on April 15 on the New York Stock Exchange.(Reporting by Malathi Nayak in San Francisco and Lehar Maan in Bangalore; Editing by Savio D'Souza and Tom Brown)","pubdate":"Thu, 08 May 2014 01:32:56 +0530","newspaper":"Reuters"},{"title":"Fiat Chrysler shares tumble on strategic plan doubts","content":"\n\nMILAN\/PARIS (Reuters) - Fiat Chrysler's FIA.MI shares fell sharply on Wednesday as analysts questioned whether the carmaker could achieve Chief Executive Sergio Marchionne's new targets - and how his ambitious expansion plan would be funded.\nTrading was briefly suspended after the shares tumbled more than 9 percent, before resuming their decline to close almost 12 percent lower at 7.48 euros, with investors still digesting Tuesday's strategy presentation in Detroit.Under the plan, outlined in 10 hours of analyst meetings, Marchionne pledged to multiply sales, raise profitability and slash debt by 2018, while investing 48 billion euros ($67 billion) in a global expansion led by the Jeep, Alfa Romeo and Maserati brands.\"These targets were almost unnecessarily bullish, leaving multiple execution challenges - even if they won't be tested for several years,\" said Citi analyst Philip Watkins.Quarterly earnings, also published late on Tuesday, were a \"major disappointment\" that served to underline the challenge, Watkins added in a note.Fiat Chrysler swung to a 319 million euro net loss in January-March from a 31 million profit a year earlier, missing expectations with a 622 million euro trading profit.The shares, which had risen 44 percent since Fiat announced a January 1 deal to take full control of Chrysler, opened late in Milan as a result of heavy trading volumes.\"The first quarter was a timely reminder of the risks associated with Fiat's plan,\" said Rabih Freiha of Exane BNP Paribas, citing North American pricing pressure that the brokerage expects to cause more trouble for Chrysler.The promise to cut debt to 1 billion euros from an expected 11 billion peak next year was \"one figure that we believe even the bulls will have trouble justifying\", Freiha added.Marchionne, who vowed to remain at the helm of the company for the duration of the five-year plan, said on Tuesday it represented a new start for a combined group that has benefited from a strong U.S. rebound while struggling through Europe's prolonged crisis.But the 61-year-old CEO conceded that the plan's success was not a certainty.Early results will soon become apparent and the company can \"put the brakes on the process if it doesn't work\", Marchionne said, adding that he was \"worried\" by the size of the debt.Other analysts suggested the group would have to raise new share capital, a move Marchionne had sought to rule out while leaving the door open to a mandatory convertible bond issue.\"Fiat's massive plan, and the necessary capital expenditure and R&D, simply do not look affordable or prudent,\" said Max Warburton of Bernstein Research.Calling its financial targets \"enormously optimistic\", Warburton said: \"Fiat would do everyone a favor, including its employees, management and shareholders, by raising capital.\"(Additional reporting by Bernie Woodall in Detroit and Lisa Jucca in Milan; Editing by Mark Potter and Pravin Char)","pubdate":"Wed, 07 May 2014 23:02:27 +0530","newspaper":"Reuters"},{"title":"AstraZeneca takeover would benefit science: Pfizer","content":"\n\nLONDON (Reuters) - Pfizer (PFE.N) sought to allay fears that its proposed $106 billion takeover of AstraZeneca (AZN.L) would deal a blow to drug research, saying the new company would bolster innovative science and speed the development of new treatments.\nThe deal would be the largest foreign takeover of a British company and has raised fears that resulting cost cutting would see the loss of thousands of skilled jobs, undermining the UK's science base.AstraZeneca, Britain's second-largest drugs company, has rejected successive approaches from its larger American rival.As political opposition to the plan grew, Pfizer reiterated its commitment to the deal, posting a graphic on its website that touted the benefits of a merger.It said the combined group would be able to expand its global research, speed up the development of treatments and broaden its footprint in emerging markets.A combined Pfizer-AstraZeneca would be the world's largest pharmaceuticals business and save Pfizer billions of dollars in taxes by shifting its domicile to Britain, although it would still be run out of New York.In a mounting war of words, Pfizer quoted the former chairman and CEO of AstraZeneca rival GlaxoSmithKline (GSK.L), Richard Sykes, saying the deal was a \"fantastic opportunity\" and \"Pfizer are serious and they've got a lot of money to spend\".But British Prime Minister David Cameron is facing growing pressure from lawmakers to secure promises about jobs, research and intellectual property. On Tuesday, Business Secretary Vince Cable said the government could use its public interest powers to intervene in the deal.On Tuesday, AstraZeneca laid out its defense strategy, touting its strong long-term growth potential as an independent company.\n        \n        (Reporting by Ben Hirschler; editing by Tom Pfeiffer)","pubdate":"Wed, 07 May 2014 21:26:02 +0530","newspaper":"Reuters"},{"title":"Insurer Allianz defends Pimco after investors take flight","content":"\n\nMUNICH (Reuters) - Europe's biggest insurer Allianz defended its U.S. asset management business Pimco on Wednesday as it came under fire for failing to stem the flow of heavy investor withdrawals.\nAllianz is under pressure from some shareholders to step up oversight of Pimco, the world's largest bond investor with nearly $2 trillion in assets, because of a run of poor returns and the departure of CEO Mohamed El-Erian amid a row with co-founder Bill Gross.But the insurer's chief executive said that investors needed to ignore short-term volatility and take a longer-term view, pointing out that Pimco had produced better returns than many of its competitors for large parts of the past 25 years.\"There is really no reason to rake us over the coals or to sense the end is at hand,\" Michael Diekmann told the insurer's annual shareholder meeting in Munich.Diekmann said customers had been supportive of the creation of a new team of six deputy chief investment officers to support Gross in the wake of El-Erian's departure.\"Responsibilities within Pimco have been redistributed and clearly regulated,\" Diekmann said. \"They now lie on more shoulders.\"Over the past year Pimco has seen investors pull $55 billion from its flagship bond fund, The Pimco Total Return Fund, which is overseen by Gross.Investors have also pulled almost $2 billion from Pimco's emerging markets debt funds during the first four months of this year as ill-timed investments in Russia, Brazil and Mexico hurt returns.In the face of investor defections, Allianz's third-party assets under management remained stable during the first quarter only because of market value increases.'HALO CRUMBLING'\"Pimco's halo is crumbling, and with it Allianz's share price,\" Union Investment portfolio manager Ingo Speich said at the AGM.Speich, whose company is Allianz's tenth-largest shareholder, according to Thomson Reuters data, pointed out that Allianz shares have underperformed both the STOXX Europe 600 insurance index and the German blue-chip DAX index by about 5 percent since the start of the year.\"What are you going to do to finally get Pimco out of the negative headlines? Are you going to get more involved at Newport Beach,\" Speich added, referring to Pimco's California base nearly 6,000 miles from Allianz's Munich headquarters.Three top shareholders told Reuters they want Allianz to rethink the six-person management structure put in place at Pimco after El-Erian's departure and provide greater detail on Pimco's long-term plan to broaden its focus beyond fixed income, among other things.Some shareholders think Gross, known on Wall Street as the Bond King, has been given too much freedom by Allianz, which bought the firm for $3.3 billion in 2000.Historically, Pimco's success has worked wonders for Allianz. In the past decade alone, Pimco's contribution to the German group's operating profit has climbed almost fourfold to 3.2 billion euros ($4.46 billion), representing a third of total core earnings. Allianz now sells nearly two thirds of its investment products to North American clients.Over the past year, however, Gross has shown signs of losing his touch. In a difficult year for bond markets, Gross's flagship Pimco Total Return Fund lost 1.9 percent in 2013, its first annual loss since 1999 and worst performance since 1994, according to Morningstar.Allianz has said little publicly until now about Pimco's performance or the internal disagreements at the fund manager.The insurer's head of investor relations, Oliver Schmidt, said in an interview published on Allianz's website that the company is working to address investor concerns about asset management and the fallout from rock-bottom interest rates.\"We are currently in the midst of extensive discussions with investors regarding both our investment and our product strategy,\" Schmidt said.Investors are also keen to hear plans about Allianz's own management, given that the contracts of six of its 11 board members - including Diekmann - are due to expire at the end of the year. Diekmann, who turns 60 in December, has not indicated whether he wants to continue in the job.Allianz has previously said that its supervisory board would look at the board positions in October, far too late for investors who fear the delay may add to uncertainty surrounding the business.(Editing by Carmel Crimmins and David Goodman)","pubdate":"Wed, 07 May 2014 15:58:53 +0530","newspaper":"Reuters"},{"title":"HTC shares fall after guidance announcement","content":"Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.\n            NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.\n        ","pubdate":"Wed, 07 May 2014 06:36:50 +0530","newspaper":"Reuters"},{"title":"Shareholders set to grill Allianz management on Pimco","content":"\n\nMUNICH (Reuters) - Top Allianz (ALVG.DE) executives are set to face a grilling on Wednesday from shareholders worried about a wobbly performance at its Pimco fund management unit.\nEurope's biggest insurer has made a strong comeback from the financial crisis, boosting net profit by 15 percent to 6 billion euros ($8.3 billion) last year and raising its dividend by nearly one fifth to 5.30 euros per share.But shareholders, including some of Allianz's largest, told Reuters last month they were concerned about Pimco, the bond powerhouse whose reputation has been tarnished by a run of poor returns and the departure of CEO Mohamed El-Erian amid a row with co-founder Bill Gross.Over the last year, Pimco has seen investors pull $55 billion from its flagship bond fund, The Pimco Total Return Fund, which is overseen by Gross.RETHINKThree top shareholders told Reuters they wanted Allianz to rethink the six-person management structure that was put in place at Pimco after El-Erian's departure and provide greater detail on Pimco's long-term plan to broaden its focus beyond fixed income, among other things.Allianz has said little publicly about Pimco's performance or the internal disagreements at the fund manager.The insurer's head of investor relations, Oliver Schmidt, said in an interview published on Allianz's Internet site that the company was working to address investor concerns about asset management and the fallout from rock bottom interest rates.\"We are currently in the midst of extensive discussions with investors regarding both our investment and our product strategy,\" Schmidt said.Extensive discussions may not satisfy everyone, however.Fund manager Union Investment, Allianz's 10th-largest shareholder according to Thomson Reuters data, said it would make its concerns public at the shareholder meeting.\"The Allianz share is currently showing a clear Pimco discount,\" Union fund manager Ingo Speich told Reuters.Allianz's share price has underperformed the STOXX Europe 600 insurance index .SXIP by around 4.5 percent since the start of the year.Investors are also keen to hear plans about Allianz's own management structure, given that the contracts of six of Allianz's 11 board members -- including Chief Executive Michael Diekmann -- are due to expire at the end of the year.Diekmann, who turns 60 in December, has not tipped his hand whether he wants to continue in the job and if so, for how long.Allianz has previously said that its supervisory board would take up the issue of board positions in October, far too late for some investors, who fear it may add to uncertainty.(Reporting by Jonathan Gould, editing by Thomas Atkins and Susan Thomas)","pubdate":"Wed, 07 May 2014 04:35:44 +0530","newspaper":"Reuters"},{"title":"Twitter shares plumb new lows as stock lock-up expires","content":"\n\n(Reuters) - Shares of Twitter Inc sank 18 percent to a new low in frenzied trading on Tuesday, wiping out more than $4 billion of its market value, as early investors sold stock in the messaging service for the first time after a six-month \"lock-up\" expired.\nThe stock closed at $31.85 on the New York Stock Exchange, as losses deepened late in the session to the lowest since its debut on November 7 at $37. On a consolidated basis, more than 130 million shares changed hands - 10 times the daily average volume for the last 50 days.The lock-up agreement that expired this week applied to about 470 million shares, or 82 percent of Twitter's equity, held by insiders, venture capitalists and other investors. Twitter allowed one batch of shares to be sold in February, but that lockup governed only about 10 million shares, most of which were held by non-executive employees.\"The move is bigger than expected and is indicative of the negative investor sentiment towards Twitter right now,\" Atlantic Equities analyst James Cordwell told Reuters.Tuesday's reaction to Twitter's lock-up expiry was in sharp contrast to that of Facebook Inc in late 2012. Facebook shares jumped 13 percent on November 14 that year, when its lock-up expiry of roughly 800 million shares did not trigger an immediate wave of insider selling.Twitter's shares have been trading at all-time lows since April 29, when the company disclosed sagging usage metrics.Indeed, concerns about user growth and engagement levels have wiped out about half of Twitter's market value, more than $18 billion, since late December, even as it has hit revenue targets in the two quarters since it went public at $26 a share.The stock does not look cheap either, despite the declines. Before Tuesday's selloff, Twitter shares were trading at 323 times forward earnings per share, according to Thomson Reuters StarMine. Facebook trades at about 39 times.\"I am starting to think that sentiment might have got too negative, but I don't see anything that can turn this around in the near term,\" Cordwell said.The largest holder of Twitter shares, private equity firm Rizvi Traverse, had no intention of selling when the lockup expired, a spokesman for the firm said on Friday.Rizvi Traverse, which owns about 85.2 million Twitter shares, could not be reached for comment on Tuesday.Lowercase Capital, which also holds a significant stake in Twitter, said Monday it had no intention of selling its shares.Twitter co-founders Jack Dorsey and Evan Williams and Chief Executive Dick Costolo said in April they did not plan to sell shares after the restrictions were lifted.Venture capital firm Benchmark, which holds a roughly 6 percent stake, has also said it would not sell its stake.But other major shareholders could see an opportunity to cash out, given that none of Twitter's insiders sold their shares during the initial public offering.Large shareholders include venture capital firms Union Square Ventures and Spark Capital. Spark declined to comment, while Union Square Ventures could not be immediately reached.Many tech companies have a lock-up clause to prevent holders from flooding the market as soon as the company goes public.(Additional reporting by Soham Chatterjee; Editing by Savio D'Souza, Ted Kerr, Bernadette Baum and Richard Chang)","pubdate":"Wed, 07 May 2014 03:00:52 +0530","newspaper":"Reuters"},{"title":"AstraZeneca fights Pfizer bid by predicting sales surge - eventually","content":"\n\nLONDON (Reuters) - AstraZeneca Plc laid out its defense against Pfizer Inc's $106-billion takeover approach on Tuesday by predicting its sales would rise by three quarters over the next decade, although only after a short-term drop.\nWith promising new medicines expected to lift annual revenue above $45 billion by 2023, up from $25.7 billion in 2013, selling out to the U.S. group now would deprive investors of huge gains, it argued.\"The increasingly visible success of our independent strategy highlights the future prospects for our shareholders,\" said Chairman Leif Johansson. \"These are benefits that should fully accrue to AstraZeneca's shareholders.\"Chief Executive Pascal Soriot said plunging AstraZeneca into a disruptive merger would also jeopardize its ability to deliver on the new drug pipeline, which is expected to account for 30 percent of the 2023 sales total.Investors and analysts agree Britain's second-biggest drugmaker has an improving experimental portfolio in areas ranging from cancer to asthma, but they remain nervous about the uncertain commercial future of many products.AstraZeneca has rebuffed three approaches from Pfizer, which wants to create the world's biggest pharmaceuticals company - and cut its tax bill - by buying the group. It said on Friday that the U.S. firm's latest offer of 50 pounds a share \"substantially\" undervalued the company.The group has not ruled out a deal altogether, however, and people familiar with the matter said it was willing to talk if there were a compelling offer. Several large shareholders have told Reuters they would be open to a deal at a higher level.Shares in AstraZeneca were down 2.7 percent at 46.80 pounds at  11:10 am ET (1510 GMT).\n        \n        \"OVERLY OPTIMISTIC\"Sales are set to fall over the next three years as older medicines lose patent protection, slipping to $24.5 billion by 2016 and $23.6 billion in 2017, according to Thomson Reuters consensus analyst forecasts.AstraZeneca has previously said it disagrees with analysts and sees sales back up at last year's level by 2017. Now it is forecasting \"strong and consistent\" growth from 2017 to 2023, driven by new treatments for cancer, diabetes, heart disease and lung disorders.It also flagged up a possible therapy for Alzheimer's disease, a notoriously high-risk area for drug development.Growth in core earnings per share, which excludes certain items, is expected to exceed revenue growth during this period, it added.Jefferies analysts said the forecasts appeared \"overly optimistic\" but the detailed product breakdown might help raise the price and cash mix in any deal. In addition to a higher bid, AstraZeneca also insists there should be more cash than the 32 percent suggested by Pfizer, with the balance paid in shares.AstraZeneca launched its 10-year sales forecast defense salvo a day after Pfizer CEO Ian Read renewed his call for the British company's board to enter talks.Read insisted his offer was \"compelling\" and signaled he was now weighing all options, including a possible hostile bid or looking at other targets, though he stressed that buying AstraZeneca remained \"Plan A\".Pfizer's pursuit of AstraZeneca has created a political stir in Britain, with critics of the U.S. group's approach fearing that a takeover will lead to big cuts in drug research, despite assurances given by Pfizer to the government.Officials have said a deal would be a commercial matter for the two companies but business minister Vince Cable said Britain could use its powers to assess if a takeover was in the public interest, while lawmakers called on Pfizer's bosses to appear before parliament.CANCER FOCUSMost investor interest centers on AstraZeneca's experimental cancer medicines designed to boost the immune system. Such drugs promise to revolutionize treatment of many tumor types and would also complement Pfizer's line-up of oncology medicines.But AstraZeneca is lagging rivals such as Bristol-Myers Squibb Co, Merck & Co and Roche Holding AG in this field.\"This is a company that has made significant progress in moving its pipeline forward over the last 18 months,\" said Alistair Campbell, an analyst at Berenberg Bank. \"Is it enough on a fundamental basis to justify the current share price? Personally, I don't think so - at least not without the certainty you need in terms of knowing clinical trial outcomes.\"Among individual products, AstraZeneca said heart drug Brilinta had the potential to deliver annual sales of around $3.5 billion by 2023, with diabetes and respiratory medicines both adding about $8 billion apiece.In cancer it forecast potential peak sales of $6.5 billion for its experimental immunotherapy drug MEDI4736 - the product that has excited most interest from investors and analysts.AstraZeneca said last month it planned to push ahead with late-stage Phase III testing of MEDI4736, following evaluation of positive Phase I data that will be presented at an American Society of Clinical Oncology (ASCO) conference on May 30-June 3.The detailed presentations on this and other experimental cancer medicines will be important for AstraZeneca and rivals, and could move its shares - but may be just too late for the Pfizer bid battle.Pfizer has a deadline of May 26 to make a firm offer or walk away under British \"put up or shut up\" takeover rules.\"They've got drug candidates in what look to be really exciting areas,\" said Dan Mahony, a fund manager at Polar Capital, who raised his stake in AstraZeneca last year. \"But it is not clear to us yet who, across the industry, has the best drug.\"(Additional reporting by Anjuli Davies; Editing by David Stamp and Will Waterman)","pubdate":"Tue, 06 May 2014 21:35:17 +0530","newspaper":"Reuters"},{"title":"Lead underwriters start Candy Crush maker with \"buy\" ratings","content":"\n\n(Reuters) - The three lead underwriters of King Digital Entertainment Plc's IPO started coverage of the stock with \"buy\" ratings or the equivalent, two days ahead of the release of the \"Candy Crush Saga\" game maker's first results as a public company.\nKing Digital's shares rose 1.7 percent before the bell on Monday, at the expiry of a 40-day \"quiet period\" for underwriters to issue recommendations after the IPO.\"Candy Crush peaked in mid-2013, but we expect it to still have a long tail of monetization driven by updated content, increased distribution, and effective marketing,\" analysts at J.P. Morgan Securities said in a research report.The analysts have an \"overweight\" rating on the stock, with a target price of $30 compared with the IPO price of $22.50.King Digital's stock was trading at $17.85 before the bell.King Digital shares closed down 16 percent in their first day of trading on March 26, underscoring the concern of some investors that the company was too dependent on \"Candy Crush Saga\" for its revenue.Credit Suisse and BofA Merrill Lynch, the other lead underwriters to the IPO, also highlighted King Digital's strength in mobile gaming.\"Smartphones and tablets are the dominant modality of play for King's games, and with nearly one third of the consumer's time spent on mobile on games, the company is highly levered to the proliferation of connected devices,\" Credit Suisse analysts wrote.Credit Suisse has an \"outperform\" rating on the stock and a price target of $28.Analysts at BofA Merrill Lynch started coverage with a \"buy\" on the stock and a price target of $23.Apart from the underwriters, at least six other brokerages also began their coverage with top ratings. Cowen and Co put a price target of $31 on the shares.King Digital shares, which have not touched the IPO price since their debut, hit a low of $15.84 on April 15.(Reporting By Lehar Maan in Bangalore; Editing by Sriraj Kalluvila)","pubdate":"Mon, 05 May 2014 18:53:13 +0530","newspaper":"Reuters"}]}