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Breaking News: 122 new 2G licenses cancelled Feb 02, 2012 at 10:35
The Supreme Court (SC) on Thursday cancelled all the new 2G licences allocated by disgraced former Telecom Minister A. Raja in early 2008.
Feb 01, 2012 at 11:00
India's manufacturing sector activity jumped to an eight-month high in January as factories stepped up production on increased demand, data released by HSBC Holdings Plc and Markit Economics showed on Wednesday.
The HSBC-Markit India manufacturing PMI rose to 57.5 in January from 54.2 in December. A reading over 50 indicates expansion while any reading below it implies contraction. India's manufacturing PMI has stayed above the 50 mark for nearly three years.
India's factory output sub-index jumped to 62.9 in January from 55.8 in December, the biggest month-on-month gain on record. Both the output and the new orders indexes rose to their highest level since May last year.
"Activity in the manufacturing sector rebounded again in January led by higher demand from both domestic and foreign clients, suggesting some recovery in sentiment in recent months," said Leif Eskesen, economist at HSBC.
New orders showed demand from both domestic and export clients. However, price pressures remained intact as input costs grew at a faster pace than in December.
"These numbers suggest it is premature for the RBI to cut policy rates and that they have to await evidence of a significant and sustained decline in inflation and/or further materialization of downside risks to growth before they can roll out rate cuts," Eskesen said.
Jan 31, 2012 at 17:30
The Government on Tuesday revised its GDP growth estimate for fiscal year 2011-12 to 8.4% from 8.5% projected earlier. Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in FY11 was estimated at Rs. 48,85,954 crore as against Rs. 45,07,637 crore in 2009-10.
Jan 24, 2012 at 11:15
The Reserve Bank of India (RBI) on Tuesday left its main lending rate unchanged as it continues to battle inflation demons even as concerns are growing over a steeper-than-anticipated deceleration in economic growth.
However, the Indian central bank slashed the cash reserve ratio (CRR) by half a percentage point to soften the tight liquidity conditions in the banking system. The CRR now stands reduced at 5.5%.
The RBI has left the repo rate unchanged at 8.5% since late October after raising it 13 times since March 2010. The reverse repo rate stands steady at 7.5%. The marginal standing facility rate is at 9.5%.
The bank rate also remains static at 6%.
Non-food manufactured products inflation continues to remain high and well above the comfort zone, the RBI said in a statement today. While indicators of pricing power suggest that the moderating trend will continue, upside risks remain significant, the central bank warned.
Jan 20, 2012 at 19:30
Reliance Industries Ltd. (RIL) has reported a net profit of Rs. 44.4bn for the fiscal third quarter ended December 31, 2011 as compared to Rs51.36bn for the corresponding quarter of last year. In the Previous quarter, it was at Rs57.03bn.
Reliance Industries Limited („RIL‟) and its associate Reliance Industrial Infrastructure Limited („RIIL‟) announced that negotiations on the contemplated acquisition by RIL and RIIL of Bharti‟s shareholding of 74% in Bharti AXA Life Insurance Co. Ltd and Bharti AXA General Insurance Co. Ltd are being jointly terminated as a result of the parties being unable to reach agreement on the long term vision and joint governance of the ventures.
RIL announced that a part of its group company‟s investments in the ETV Channels is being divested to TV18 Broadcast Limited (TV18). The promoter companies of Network18 (holding company of TV18) and Independent Media Trust (Trust), a trust setup for the benefit of Reliance Industries Limited, have also entered into a term sheet under which the Trust would be subscribing to the optionally convertible debentures to be issued by the promoter companies to enable the promoter companies to subscribe to the proposed rights issue by Network18 and TV18.
As a part of the deal, Infotel Broad Band Services Limited (“Infotel”), a subsidiary of RIL, has entered into a Memorandum of Understanding with TV18 and Network18 Media and Investments Limited (Network18) for preferential access to all their content for distribution through the 4G Broadband Network being set up by it. Reliance Industries Ltd (RIL) has been awarded Application Level A+, the highest certification by Global Reporting Initiative (GRI) for its FY 2010-11 Sustainability Report – “New Businesses. New Technologies. New partnerships. (2011)”. The A+ Level check was awarded to RIL for successfully fulfilling the required set and number of disclosures.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter, particularly in our refining and petrochemicals businesses. Notwithstanding these challenges, Reliance has delivered reasonably robust results with high operating leverage. Our focus remains on enhancing shareholder value by leveraging an exceptionally strong balance sheet, operating top decile assets and investing prudently in future growth engines.”
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
Higher crude prices resulted in consumption of raw materials increasing by 50.6% to Rs203,294 crore ($ 38.3 billion) on a year-on-year basis.
Employee costs were at Rs2,265 crore ($ 427 million) for the nine months ended 31st December 2011 as against Rs1,938 crore.
Other expenditure increased by 13.0 % from Rs11,594 crore to Rs13,106 crore ($ 2.5 billion) due to higher power & fuel expenses and exchange differences.
Operating profit before other income and depreciation declined by 4.3% from ` 28,283 crore to Rs27,055 crore ($ 5.1 billion). Net operating margin was lower at 10.7% as compared to 15.4% in the corresponding period of the previous year due to base effect and reduction in higher margin E&P operating profit arising out of lower production and due to transfer of 30% Participating Interest (PI) in KG-D6 to BP.
Other income was higher at Rs3,897 crore ($ 734 million) as against ` 2,135 crore on a year-on-year basis primarily due to higher average holdings as well as higher yield on investments.
Depreciation (including depletion and amortization) was lower by 14.5% at Rs8,734 crore ($ 1.6 billion) against Rs10,221 crore in 9M FY 2010-11 due to lower depletion charge in oil & gas as a consequence of the transfer of 30% PI in 21 blocks to BP.
Interest cost was higher at Rs1,899 crore ($ 358 million) as against Rs1,632 crore in 9M FY 2010-11 principally due to higher foreign exchange difference. This resulted in gross interest cost being higher at Rs2,286 crore ($ 430 million) as against Rs1,986 crore in 9M FY 2010-11. Interest capitalized was higher at Rs387 crore ($ 73 million) as against Rs354 crore.
Profit after tax was Rs15,804 crore ($ 3.0 billion) as against Rs14,910 crore for the corresponding period of the previous year.
Basic earnings per share (EPS) for the nine months ended 31st December 2011 was Rs48.3 ($ 0.9) against Rs45.6 for the corresponding period of the previous year.
Outstanding debt as on 31st December 2011 was Rs74,503 crore ($ 14.0 billion) compared to Rs67,397 crore as on 31st March 2011. The Company is debt free on a net basis as compared with gearing of 13.5% as on 31st March 2011.
RIL had cash and cash equivalents of Rs. 74,539 crore ($ 14.0 billion). These were primarily in fixed deposits, certificate of deposits with banks, mutual funds and Government securities / bonds.
Cash outflow on account of capital expenditure for the nine months amounted to ` 4,836 crore ($ 911 million). The net capital expenditure for the nine months ended 31st December 2011 was Rs12,458 crore ($ 2.3 billion) including Rs8,816 crore on account of exchange difference on long term loans.
RIL has domestic credit ratings of AAA from CRISIL and FITCH. RIL has investment grade ratings for its international debt from Moody‟s and S&P as Baa2 and BBB respectively.
DOMESTIC OPERATIONS
Gas available from KG-D6 fields has been supplied to various customers under GSPAs executed in line with the Government‟s Gas utilization policy and directives of Government of India thereon -
Panna-Mukta and Tapti (PMT)
Other Domestic Blocks
CBM BLOCKS
INTERNATIONAL OPERATIONS (SHALE GAS)
REFINING & MARKETING BUSINESS
During the 9M FY12 period, RIL processed 51.4 million tonnes of crude reflecting an average utilization rate of 110%. Average refinery utilization rate were lower across regions with North America at 84.1%, Europe averaging at 75.5% while Asia averaged at 82.5% in Asia. Weaker margins and lowering demand resulted in lowering of operating rates across regions vis-à-vis the same period last year.
Revenue for RIL‟s Refining & Marketing segment increased by 43.1% from ` 152,727 crore to Rs218,523 crore ($ 41.1 billion). Increase in revenue was principally due to higher price environment (higher by 39.2%) while increase in volume accounted for 3.9%.
Higher crude throughput at the SEZ refinery resulted in higher exports of refined products. RIL exported 30.8 million tonnes of refined products vis-à-vis 28.4 million tonnes for the corresponding period of the previous year. Export revenues were higher at $ 26.0 billion as against $ 20.1 billion during the corresponding period of the previous year.
Following two strong quarters, the quarter ending December 2011 saw a sharp decline in margins as lower demand and high product inventories impacted product cracks. Gasoline and Naphtha remained particularly weak even as refineries operated at high levels to address demand for diesel and fuel oil.
Higher demand for fuel oil and gradual increase in supply of light crudes from Libya has resulted in a decline in Arab light - Arab heavy crude differential. Demand for fuel oil has also created a strong demand for heavy crudes resulting in its unprecedented premium vis-à-vis the benchmark Dubai crude.
On a trailing quarter basis, gasoline cracks have also plummeted due to lower seasonal demand and increasing supplies after the refineries returned from maintenance and operated at high levels to fulfill demand for gasoil. The tightness of gasoil and robust demand from in Asia continues to support gasoil cracks. Gasoil crack was up by $ 6 /bbl in Asia during the current nine month period in comparison to the same period last year. Asian gasoil cracks remained firm even on a trailing quarter basis at around $ 19.9 /bbl.
Naphtha cracks remained negative across regions due to lower demand. Markets in the Western markets were impacted due to sluggish economic growth while Asian markets were impacted by ample supply from refineries and cracker outages. During the nine months period Naphtha cracks were lower by $ 5.5 / bbl in Asia in comparison to the same period last year.
RIL's Gross Refining Margin (GRM) for the nine months period was at $ 9.0 / bbl, higher than the $ 8.1 / bbl it achieved in the corresponding period of the previous year. On a quarter-on-quarter basis, RIL‟s GRMs were lower at $ 6.8 /bbl primarily due to weaker product cracks but also due to the impact of higher crude costs and reduced Arab light-heavy differentials.
PETROCHEMICALS BUSINESS
During the nine month ended 31st December 2011, revenue for the segment increased by 31.7% from Rs44,961 crore to Rs59,213 crore ($ 11.2 billion). Increase in volume accounted for 6.8% growth in revenue and increase of prices accounted for 24.9% growth in revenue.
EBIT margins for the nine months ended 31st December 2011 were at 11.5% as compared to 14.9% in the corresponding period of the previous year due to base effect of higher revenues. On a trailing quarter basis, EBIT margins reduced across the olefins chain, the aromatics chain and in certain key chemicals.
On a 9 months basis, production of ethylene increased by 13% to 1.4 million tonnes while the production of propylene increased by 10% to 578 thousand tonnes. This was due to normalized production during the 9M FY12 period vis-à-vis cracker turnarounds at Hazira, Nagothane and Gandhar manufacturing sites during the corresponding period of the previous year. Polymer (PP, PE and PVC) production increased by 8% to 3.4 million tonnes.
During the period, production of fibre intermediates (PX, PTA and MEG) increased by 5% to 3.6 million tonnes. Polyester (PFY, PSF and PET) production volumes decreased by 3% to 1.2 million tonnes due to changes in the product mix.
ORGANIZED RETAIL
During this period, Reliance Trends achieved the distinction of becoming India's largest fashion destination. With a presence of over 70 stores, Reliance Trends became the largest chain of large format apparel specialty store in just 4 years of its launch. Reliance Digital, Reliance Footprint and Reliance Jewels remain the fastest growing retail formats in electronics, footwear and jewelry segments respectively and are well on their way towards becoming largest specialty chains in India.
Reliance Retail also undertook rapid expansion of formats driven through partnerships. The joint venture with Grand Vision, Europe in the optical space witnessed the expansion of the network to 138 stores at the end of December while the joint venture with Marks and Spencer witnessed the expansion to 24 stores. Reliance also announced an exclusive partnership with iconic American clothing brand Kenneth Cole for distribution in India.
Currently, Reliance Retail operates over 1,200 stores spanning „Value‟ and „Specialty segments; in 15 states and more than 100 cities in India, with a total area of more than 6 million square feet. Reliance Retail‟s loyalty program „Reliance One‟, has now patronage of more than 8 million customers.
Domestic demand for polyester products decreased by 2% during the nine months due to price volatility and also due to labour and power shortage in downstream industries.
TELECOM
Jan 19, 2012 at 11:50
Food inflation in India remained in the negative territory in the first week of January, mainly due to base effect, data released by the Government showed on Thursday. But, the inflation in Primary Articles increased and that in Fuel & Power stayed steady.
The sharp drop in food inflation over the past several weeks is likely to provide much-needed breather to the consumers and the policymakers alike.
However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print and core inflation should also fall materially.
Food inflation shrank by 0.42% in the week ended January 7 after shrinking by 2.9% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 16.18% in the corresponding week last year.
Inflation in the Primary Articles group climbed to 2.47% in the week under review, from 0.51% in the week ended December 31, according to the Commerce Ministry statement. It was at 17.76% in the year-ago period.
Inflation in the Fuel & Power group stood at 14.45% in the week ended January 7, unchanged from the previous week, the Government data showed. It was at 11.53% in the comparable week of the previous year.
Meanwhile, inflation in the Non-Food Articles space rose to 1.84% in the week under review from 1.29% in the previous week, the Government data showed. It was at 24.60% in the same period a year earlier.
Inflation in the Minerals group increased to 24.06% in the week ended January 7, from 23.52% in the week ended December 31, according to the Commerce Ministry data. Inflation in this group stood at 16.21% in the year-ago period.
On an annual basis, onions turned cheaper by ~75% in the week under consideration, and vegetable prices dropped ~45.8% on an annual basis.
Fruits turned costlier by ~10% year over year, while Milk prices increased ~11.5% and Egg, Meat & Fish became pricey by ~19.6% compared to the year-ago period.
Potato prices were down ~23.8% on an annual basis while Cereal prices went up by ~2.2% year over year. Prices of Pulses jumped by ~14.3%. Annual inflation in Rice stood at ~1.4% while Wheat prices fell ~3.5%.
In the Non-Food category, prices of Fibres fell by ~8% year-on-year while that of Oilseeds rose by ~13% from a year ago.
In Fuel category, LPG prices are up ~14.3%, petrol by ~17.1% and diesel by ~9.2%.
Compared to the previous week, prices of Onions, Potato and Vegetables were down 3.8%, 1.9% and ~3.75%, respectively.
On the other hand, prices of Fruits rose by ~2% week-over-week while that of Fibres rose by 1.85% and Oilseeds by 1.2%.
The Government and the RBI expect the headline WPI inflation easing to 6-7% by the end of March.
Deputy governor of the RBI, Subir Gokarn said recently that stubbornly high inflation, especially the core Manufacturing inflation, may prevent the central bank from reversing the hawkish monetary policy.
He added that a weaker rupee and elevated crude oil prices are further undermining policy maneuvering for the RBI.
India's headline WPI inflation rate fell to a two-year low of 7.4% in December from 9.7% in November.
The RBI, which has raised its interest rates 13 times (375 bps) since March 2010, left its key lending rate - the repo rate - steady at 8.50% last month.
The central bank policy makers next meet on January 24 to take a call on interest rates.
Much of the recent moderation in inflation is due to a combination of improved supplies and a high base, while the core manufacturing inflation remains sticky.
There is a likelihood that food inflation might turn back up as the base effect starts to wear off. As a result, the RBI will most likely adopt a 'wait and watch' approach at its policy meet on Jan. 24.
The opinion on a possible CRR cut are divided at the moment.
Jan 18, 2012 at 08:50
Developing countries should prepare for further downside risks, as Euro Area debt problems and weakening growth in several big emerging economies are dimming global growth prospects, says the World Bank in the newly-released Global Economic Prospects (GEP) 2012.
The Bank has lowered its growth forecast for 2012 to 5.4% for developing countries and 1.4% for high-income countries (-0.3% for the Euro Area), down from its June estimates of 6.2 and 2.7% (1.8% for the Euro Area), respectively. Global growth is now projected at 2.5 and 3.1[1]% for 2012 and 2013, respectively.
Slower growth is already visible in weakening global trade and commodity prices. Global exports of goods and services expanded an estimated 6.6% in 2011 (down from 12.4% in 2010), and are projected to rise by only 4.7% in 2012. Meanwhile, global prices of energy, metals and minerals, and agricultural products are down 10, 25 and 19% respectively since peaks in early 2011. Declining commodity prices have contributed to an easing of headline inflation in most developing countries. Although international food prices eased in recent months, down 14% from their peak in February 2011, food security for the poorest, including in the Horn of Africa, remains a central concern.
“Developing countries need to evaluate their vulnerabilities and prepare for further shocks, while there is still time,” said Justin Yifu Lin, the World Bank’s Chief Economist and Senior Vice President for Development Economics.
Developing countries have less fiscal and monetary space for remedial measures than they did in 2008/09. As a result, their ability to respond may be constrained if international finance dries up and global conditions deteriorate sharply.
To prepare for that possibility, Hans Timmer, Director of Development Prospects at the World Bank, said: “Developing countries should pre-finance budget deficits, prioritize spending on social safety nets and infrastructure, and stress-test domestic banks.”
While prospects in most low-and middle-income countries remain favorable, the ripple effects of the crisis in high-income countries are being felt worldwide. Already, developing country sovereign spreads have increased 45 basis points on average and gross capital flows to developing countries plunged to US$170bn in the second half of 2011, compared with $309 billion received during the same period in 2010.
“An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09” said Andrew Burns, Manager of Global Macroeconomics and lead author of the report. “The importance of contingency planning cannot be stressed enough.”
Jan 17, 2012 at 07:45
China's GDP expanded by 8.9% in the fourth quarter of 2011 from a year ago, beating consensus estimates and belying expectations of a hard landing in the world's second largest economy.
Jan 16, 2012 at 14:10
The Railways have generated Rs. 49209.21 crore of revenue earnings from commodity-wise freight traffic during April-December 2011 as compared to Rs. 44789.41 crore during the corresponding period last year, registering an increase of 4.59 %.
Railways carried 704.81mn tonnes of commodity-wise freight traffic during April-December 2011 as compared to 673.31mn tonnes carried during the corresponding period last year, registering an increase of 4.68 %.
The Net Tonne Kilo Metres (NTKM) went up from 444515mn during April-December 2010 to 466968mn during April-December 2011, showing an increase of 4.68 %.
Out of the total earnings of Rs. 6102.45 crore from commodity-wise freight traffic during the month of December 2011, Rs. 2548.54 crore came from transportation of 41.01mn tonnes of coal, followed by Rs. 543.64 crore from 8.94mn tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 562.73 crore from 9.37mn tonnes of cement, Rs. 403.71 crore from 3.94mn tonnes of foodgrains, Rs. 328.89 crore from 3.52mn tonnes of petroleum oil and lubricant (POL), Rs. 369.32 crore from 3.10mn tonnes of Pig iron and finished steel from steel plants and other points, Rs. 484.77 crore from 5.61mn tonnes of fertilizers, Rs. 100.41 crore from 1.12mn tonnes of raw material for steel plants except iron ore, Rs. 303.64 crore from 3.46mn tonnes by container service and Rs. 456.80 crore from 6.74mn tonnes of other goods.
Inflation falls to ~7.5% in December Jan 16, 2012 at 12:00
India's annual inflation fell sharply in December from the previous month, data released by the Government showed on Wednesday. The headline WPI inflation for December fell below 8%, raising hope of some softening in the RBI's hawkish monetary policy.
Inflation, as measured by the wholesale price index (WPI), was at 7.47% in December as against 9.11% in November, the Union Commerce & Industry Minister said today.
The December inflation print came more or less in line with expectations.
The annual inflation rate was at 9.45% during the corresponding month of the previous year.
WPI Break-up for December 2011:
Primary - 3.07% vs 8.53% MoM.
Food - 0.74% vs 8.54% MoM.
Fuel - 14.91% vs 15.48% MoM.
Manufactured - 7.41% vs 7.7% MoM.
Source: Commerce & Industry Ministry.
The official WPI for ‘All Commodities’ for December remained unchanged at its previous month level of 156.9 (Provisional).
Build up inflation in the financial year so far (April-December 2011) was 4.95% compared to a build up of 7.12% in the corresponding period of the previous year.
The Government revised the inflation rate for October to 9.87% from a provisional estimate of 9.73% while the WPI stood at 157.0 as compared to 156.2 earlier.
Finance Minister Pranab Mukherjee today said that inflation in December fell sharply mainly because of a fall in inflation for Primary Articles, including food inflation.
Jan 12, 2012 at 11:15
India's industrial production bounced back sharply in November, comfortably beating the consensus estimates of economists, data released by the Government showed on Thursday.
The sharp reversal in the erratic IIP data could boost hopes of a policy easing by the RBI sooner or later. The Central bank is scheduled to meet on January 24.
The factory output, as measured by the index of industrial production (IIP), grew by 5.9% in November versus a 5.1% contraction in the previous month, data released by the Commerce Ministry showed today.
The Government today revised October's industrial production growth, from a preliminary figure of -5.1%, to -4.7%.
Industrial output in the April to November 2011-12 period grew by 3.8% compared to the expansion of 8.4% in the corresponding period a year earlier.
Infosys sees flat QoQ rise in Q4 dollar revenues Jan 12, 2012 at 11:05
Infosys Ltd. on Thursday announced its business outlook (consolidated) for the quarter ending March 31, 2012 and for the fiscal year ending March 31, 2012, under IFRS in USD terms.
For Q4 FY12, revenues are expected to be in the range of US$1,806mn and US$1,810mn; YoY growth of 12.7% to 13%.
Earnings per American Depositary Share (EPADS) is expected to be US$0.81, a YoY growth of 15.7%.
For the fiscal year ending March 31, 2012, revenues are expected to be US$7,029mn and US$7,033mn; YoY growth of 16.4%.
Earnings per ADS is expected to be in the range of US$3.0, a YoY growth of 14.5%.
On October 12, Infosys had predicted that FY12 revenues are expected to be in the range of US$7.08 billion and US$7.20 billion; YoY growth of 17.1% to 19.1%.
Earnings per ADS is expected to be in the range of US$3.02 to US$3.06; YoY growth of 15.3% to 16.8%.
Infosys Q3 net profit up 24% QoQ Jan 12, 2012 at 11:00
Infosys Technologies Ltd. has reported a consolidated net profit of Rs. 23.72bn for the quarter ended December 31, 2010 as against Rs. 19.06bn in the previous quarter. This implies a Quarter-on-Quarter growth of 24.4%.
Consolidated net sales for the reporting quarter (October-December 2011) stood at Rs. 92.98bn versus Rs. 80.99bn in the preceding quarter, showing a sequential improvement of 14.8%.
At the time of unveiling the Q2 FY12 results on October 12, the company had forecast revenues in the range of Rs. 88.26bn and Rs. 90.12bn for the third quarter.
The operating profit for Q3 FY12 stood at Rs. 28.99bn compared to Rs. 22.81bn in the preceding quarter. EBIT margin for the reporting quarter stood at 31.17% versus 28.16% in the second quarter.
The Earnings Per Share (EPs) for Q3 FY12 stood at Rs41.51 as against Rs. 33.36 in the July to September quarter.
EPS for Q3 FY12 was expected to be in the range of Rs. 38.51 and Rs. 39.20.
“The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry,” said S. D. Shibulal, CEO and Managing Director.
“Notwithstanding short-term challenges, we are focused on long-term growth opportunities by investing in platforms and solutions - which will accelerate innovation, enhance returns for our clients and deliver higher business value.”
Other Highlights for Q3 FY12: -
49 clients were added during the quarter by Infosys and its subsidiaries.
Gross addition of 9,655 employees (net addition of 3,266) for the quarter by Infosys and its subsidiaries. 145,088 employees as on December 31, 2011 for Infosys and its subsidiaries.
"The global currency market continues to be volatile with the Indian rupee depreciating by 11% during the quarter,” said V. Balakrishnan, Member of the Board and Chief Financial Officer.
“Managing extreme currency volatility in an uncertain economic environment is going to be a challenge for the industry. We believe our focus on high-quality growth combined with our flexible financial model will position us better during these challenging times.”
Jan 06, 2012 at 19:20
U.S. economy has added 200,000 jobs in December, according to reports.
Reports stated that the nation’s unemployment rate fell to 8.5% in December from 8.6 percent in November. The Labour Department also revised the number of new jobs added in November to 100,000 from 120,000, reports said.
Jan 05, 2012 at 11:50
Food inflation in India plunged into the negative territory in the fourth week of December mainly due to base effect, data released by the Government showed on Thursday. Fuel inflation edged up though.
The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike.
However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print should also fall sharply.
Food inflation shrank by 3.36% in the week ended December 24 after rising by 0.42% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 20.84% in the corresponding week last year.
Inflation in the Primary Articles group fell to 0.1% in the week under review, from 2.70% in the week ended December 17, according to the Commerce Ministry statement. It was at 22.68% in the year-ago period.
Inflation in the Fuel & Power group stood at 14.60% in the week ended December 24 versus 14.37% in the previous week, the Government data showed. It was at 11.63% in the comparable week of the previous year.
Food inflation in India plunged into the negative territory in the fourth week of December mainly due to base effect, data released by the Government showed on Thursday. Fuel inflation edged up though.
The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike.
However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print should also fall sharply.
Food inflation shrank by 3.36% in the week ended December 24 after rising by 0.42% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 20.84% in the corresponding week last year.
Inflation in the Primary Articles group fell to 0.1% in the week under review, from 2.70% in the week ended December 17, according to the Commerce Ministry statement. It was at 22.68% in the year-ago period.
Inflation in the Fuel & Power group stood at 14.60% in the week ended December 24 versus 14.37% in the previous week, the Government data showed. It was at 11.63% in the comparable week of the previous year.
Jan 04, 2012 at 12:40
The Union Cabinet has reportedly deferred a decision on allowing Public Sector Undertakings (PSU) to buy back their shares.
Jan 02, 2012 at 14:10
India's merchandise exports in November rose by 3.9% to US$22.32bn while imports during the same month climbed by 24.5% to US$35.92bn, data released by the Government showed on Monday.
As a result, the trade deficit for November 2011 stood at US$13.60bn versus US$7.35bn in the corresponding month a year earlier.
In Rupee terms, Indian exports were up 17.34% during November 2011 when compared to the same period last year. Imports climbed by 40.70% in Rupee terms during November 2011 over the same period last year.
Oil imports during November 2011 rose by 32.3% to US$10.30bn while non-oil imports were up 21.7% at US$25.61bn.
Merchandise exports during April-November 2011-12 were up 33.2% at US$192.69bn while imports for the same period grew by 30.2% to US$309.53bn, the Government data showed.
The trade gap for the first eight months of the current fiscal year swelled to US$116.83bn from US$93bn in the same period of the previous financial year.
Exports during April to November FY12 were up 35.1% in Rupee terms. Imports during the first eight months of the current fiscal year were up ~32.2% in Rupee terms.
Oil imports during April-November 2011-12 were up ~42.7% at US$94.11bn while non-oil imports in the first eight months of FY12 climbed ~25.5% to US$215.41bn.
Govt allows QFIs to directly invest in equity market Jan 02, 2012 at 07:30
In a new year gift of sorts, the Government has allowed Qualified Foreign Investors (QFIs) to directly invest in Indian equity market. The move is aimed at widening the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market.
Food inflation in The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike. However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print should also fall sharply. Food inflation declined to 0.42% in the week ended December 17 from 1.81% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 15.48% in the corresponding week last year. Inflation in the Primary Articles group fell to 2.70% in the week under review, from 3.78% in the week ended December 10, according to the Commerce Ministry statement. It was at 18.85% in the year-ago period. Inflation in the Fuel & Power group stood at 14.37% in the week ended December 11, from 15.24% in the previous week, the Government data showed. It was at 11.85% in the comparable week of the previous year Lok Sabha approves new Lokpal Bill by voice vote Dec 28, 2011 at 09:50
The Lok Sabha, on Tuesday, passed the Lokpal Bill to create an anti-corruption ombudsman, according to reports.
However, the government failed to get the two-thirds majority it needed to make the bill a Constitutional Body, like the Election Commission.
A visibly angry Pranab Mukherjee, termed it as a ‘sad day for democracy’. The FM blamed the BJP for the incident and threatened them that “people will teach you a lesson,” reports said.
Just before the vote began, the SP and BSP parties staged a walkout and did not vote on the Lokpal Bill, reports said. The Bill will now be sent to the Rajya Sabha.
Prime Minister Manmohan Singh's government has been the target of middle-class frustration with everyday graft and multi-billion dollar scandals in Asia's third largest economy.
Anna Hazare, who began a three-day fast to coincide with the parliamentary debate, wants the ombudsman to have greater powers to investigate high ranking scammers, reports said.
His health reportedly deteriorated on Tuesday evening as his blood pressure fell and his temperature rose above 102 degrees. The activist was already suffering from a viral infection before he commenced his fast.
Dec 27, 2011 at 14:25
Reliance Industries’ eastern offshore KG-D6 gas field production has fallen to a fresh low of 38.66 mn cubic metres per day, according to reports.
Reports stated that Natural gas production from the Dhirubhai-1 and 3 fields, the first two of the 18 gas discoveries in the KG-DWN-98/3, or KG-D6, block that were brought to production, was 31.83 mmcmd in the week ending December 18.
The MA oilfield in the same block produced another 6.83 mmcmd of associated gas, taking total production from the area to 38.66 mmcmd, reports said.
There are reports that of the 18 wells drilled, completed and put on production in the D1 and D3 fields, five wells - A2, A10, B1, B2 and B13 - had to be shut or closed due to high water cut/sanding issues.
Dec 23, 2011 at 14:15
French economic growth in Q3 has been revised down mainly due to a steeper drop in business investment than initially estimated, the national statistics institute Insee said on Friday.
The French economy grew by 0.3% in the third quarter of 2011, Insee said, scaling down its previous estimate of a 0.4% expansion during the quarter.
The Q3 upturn left French economy just 0.5% below the peak reached prior to the 2008 financial turmoil.
Business investment fell 0.6% in the July to September period from the previous quarter, revised lower from -0.3%, after having slowed to +0.3% in Q2.
Earlier this month, the Bank of France confirmed its projection for a flat GDP print in Q4.
Insee has forecast a shallow recession with a 0.2% contraction in Q4 and further drop of 0.1% in Q1 CY12. It expects recovery in Q2 CY12 with projection of 0.1% growth.
The OECD expects average GDP growth in France to slow to 0.4% next year, before picking up to 1.4% in 2013.
US economy stays on steady growth path Dec 23, 2011 at 09:25
Prospects for the US economy seem to be looking up if the recent data points are any indication. However, there are doubts whether the current upswing can sustain for long given the debt crisis in Europe, slowdown in China and political impasse on Capitol Hill.
Data released on Thursday showed that new US claims for unemployment benefit dropped to their lowest in three-and-a-half years and consumer confidence rose. The leading economic indicators also pointed to continued buoyancy.
In a slightly sour development though, the US government scaled down its estimate of Q3 GDP. Nevertheless, US stocks welcomed the positive economic statistics.
The US government’s count of first-time filings for unemployment benefits last week declined to 364,000, the lowest level since April 2008. Economists had expected initial claims to have risen to 380,000.
The four-week average of initial claims fell 8,000 to 380,250, the fewest since June 2008.
Also, the Labor Department reported that continuing claims in the week ended Dec. 10 fell 79,000 to 3.55mn, reaching the lowest level since September 2008. The four-week average of these ongoing claims fell 40,000 to 3.63mn, the lowest level since October 2008.
About 7.15mn people received some kind of state or federal benefit in the week ended Dec. 3, down about 300,000 from the prior week.
However, with more than 13mn unemployed workers across the US, the labor environment remains stressed.
There is also concern about the expiration of special federal unemployment-insurance payments, with more than 2.8mn people expected to lose benefits by the end of February, according to the National Employment Law Project.
In a related development, the House Republicans and Senate Democrats reached a deal that would allow the payroll-tax cut to be extended beyond January 1, Speaker of the House John Boehner confirmed on Thursday.
House Republicans ended their opposition to a two-month extension of the tax cut, Boehner said, in return for new language in the legislation to make it easy for payroll staff to process the tax cut.
Boehner added that leaders of both parties will ask the House and Senate to quickly pass the new measure without a recorded vote. Senate Democrats will then appoint members to a committee to work on a full-year tax extension.
Meanwhile, a gauge of consumer sentiment hit 69.9 in the final reading for December compared with 64.1 in November. This is the highest level since June. A preliminary reading for December pegged the gauge at 67.7.
Economists had expected a final December reading of 68.7.
Despite the improvement, sentiment remains at historically low levels. Last year, the index stood at 74.5.
The current-conditions gauge rose to 79.6 in December from 77.6 in November. Last year gauge was at 85.3. The expectations barometer increased to 63.6 in December from 55.4 in November. Last year the barometer was at 67.5.
Meanwhile, inflation expectations for one year remained at 3.1%. This is the lowest level this year. Expectations for inflation five-years ahead were unrevised at 2.7% in December.
The US government also reported that US economic growth in the third quarter was a little weaker than previously forecast, mainly because consumers spent less money on health care.
The largest global economy grew at a 1.8% real annual pace in the July-September quarter, compared with the 2% estimated expansion reported last month.
The figures are seasonally adjusted and adjusted for price changes.
Economists had been expecting no revision in the third estimate.
Third-quarter GDP growth was originally estimated two months ago at a 2.5% annualized rate but was revised down to 2% growth in last month’s estimate.
US economic growth has averaged a mere 1.2% so far this year. Economists are forecasting stronger growth - about 3-4% year on year - in the fourth quarter ending Dec. 31.
Separately, the Conference Board said that its index of leading economic indicators grew 0.5% in November.
Finally, the Federal Housing Agency said home prices fell 0.2% in October.
Dec 22, 2011 at 11:55
Food inflation in India declined sharply in the second week of December, falling under the 2% mark, data released by the Government showed on Thursday. Fuel inflation remained steady.
The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike.
However, it will be a while before the RBI starts considering a cut in its policy rates.
Food inflation declined to 1.81% in the week ended December 10 from 4.35% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 13.22% in the corresponding week last year.
Inflation in the Primary Articles group fell to 3.78% in the week under review, from 5.48% in the week ended December 3, according to the Commerce Ministry statement. It was at 16.94% in the year-ago period.
Inflation in the Fuel & Power group stood at 15.24% in the week ended December 10, unchanged from the previous week, the Government data showed. It was at 10.81% in the comparable week of the previous year.
Dec 21, 2011 at 18:25
Italy's economy contracted in the third quarter of 2011, raising the specter of a recession for the eurozone's third-largest economy.
Italy's GDP contracted by 0.2% in the three months ended Sept. 30 from the previous quarter, when GDP rose 0.3%, Istat said.
The numbers are seasonally adjusted and workday-adjusted.
Economists had forecast a 0.1% decline.
The average growth across the 17-nation eurozone is 0.2%.
Istat didn't report a preliminary growth estimate for the period due to ongoing work at revising historical data.
Italian GDP rose 0.2% in real terms from the third quarter of 2010, and has expanded by 0.5% so far in 2011, Istat said.
The third-quarter GDP was hurt by deteriorating domestic demand, including spending by households, a sharp drop in public-sector spending and business investments, and a negative contribution from inventories, Istat said.
BOJ leaves rates steady...Warns on recovery Dec 21, 2011 at 18:20
The Bank of Japan (BOJ) on Wednesday left its benchmark interest rate steady and monetary stimulus unchanged while scaling down the prospects for the world's third-biggest economy.
The BOJ policymakers held the overnight call rate target steady at 0-0.1% by a unanimous vote, as was widely expected.
No changes are planned in the monetary stance until prices show medium- to long-term stability, the BOJ said.
The Japanese central bank also said that the nation’s economic recovery from the March disasters has stalled due to weakness in key markets and a rising yen.
“The pick-up in Japan’s economic activity has paused, mainly due to the effects of a slowdown in overseas economies and of the appreciation of the yen ... as well as of the flooding in Thailand,” it said.
Japanese stocks pared some of the day's gains following the BOJ announcement.
On the domestic demand, the BOJ said that business fixed investment has been on a moderate increasing trend and private consumption has remained firm.
"But the strong yen and the situation in Thailand, where disastrous floods have hurt plants run there by Japanese multinationals and their suppliers, has slowed improvement in business sentiment," the Japanese central bank said.
Economic activity would likely remain more or less flat for the time being, citing risks from Europe and the US, the BOJ said.
Some economists expect the BOJ to take further easing steps - such as expanding its asset buying programme - in the coming weeks amid mounting worries over the global economic strife, especially in Europe.
Cabinet clears draft Lokpal Bill, Team Anna rejects it Dec 21, 2011 at 09:15
The Union Cabinet, on Tuesday evening, cleared the draft of the Lokpal Bill which is expected to be tabled in the Lok Sabha on Thursday and the Rajya Sabha on Friday, reports said.
Plans to extend the Winter Session of Parliament for three days from Dec 27-29 has been vetoed by parties such as BSP and Shiv Sena, reports added.
However, social activist Anna Hazare and his team have already rejected the draft mainly due to differences between their conditions and those of the Government over inclusion of the CBI in the Lokpal, reports said.
Protesting the Government’s decision, the Gandhian has announced that he will fast for three days starting Dec 27.
As against the Government’s previous stance, it has now agreed for a three-member committee comprising the prime minister, leader of opposition and chief justice of India to choose the CBI chief. Team Anna is against this decision as it is of the opinion that such a combination of individuals cannot be relied on to find a CBI head who is not 'weak or pliable'.
The Bill states that all categories of government employees, including those of group C and D which are junior bureaucrats, will be subject to the Lokpal's jurisdiction, reports stated.
The Centre has decided to include the PM within the Lokpal’s ambit, albeit with a few conditions. This has not gone down very well with Team Anna who wants the PM to be included entirely, without any conditions.
Dec 20, 2011 at 14:55
In a positive move in the otherwise disruptive Winter Session of Parliament, the UPA and the BJP came to a consensus to allow 26% FDI in the management of pension funds.
Finance Minister Pranab Mukherjee and and BJP leaders L K Advani, Arun Jaitley, Sushma Swaraj and Yashwant Sinha came to an agreement on the Bill in Parliament.
Apart from the FDI issue, another feature agreed on was that each individual could choose whether his funds were to be invested in safe government securities, or markets, which involved higher risk, or a combination of the two.
For those choosing to invest in government bonds, an assured return of 8.6% would be offered.
However, the Bill may not be passed in the current session of Parliament and may be extended to the budget session due to time constraints and the priority given to the Lokpal Bill during this session.
Dec 19, 2011 at 08:45
The Union Cabinet tonight cleared the much-awaited draft food security Bill, brightening the prospect of providing legal entitlement of food to three-fourth of the country’s rural population and half its urban dwellers.
The report stated that the objective is to provide access to nutrition at affordable rates to citizens.
The Bill is likely to be tabled in Parliament this week.
The Bill will also bring within its fold a number of ongoing schemes,”Food minister K V Thomas reportedly said.
There are reports that the draft was passed “unanimously” with all ministers agreeing to the proposals.
In rural areas up to 75% of the people will be covered by the Bill while in urban centres, it will cover up to 50% of the population, says reports.
Dec 16, 2011 at 12:00
The Reserve Bank of India (RBI) on Friday left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling.
The Central bank also refrained from cutting the cash reserve ratio (CRR) despite tight liquidity in the system.
The repo rate has been left steady at 8.5% after increasing it 13 times since March 2010. The reverse repo rate stands unchanged as well at 7.5%. The marginal standing facility rate is at 9.5%.
The bank rate also remains static at 6%.
In its mid-year policy review in October, the RBI had indicated that it might halt the rise in interest rates if the inflationary situation does not worsen
Meanwhile, the RBI today reiterated its guidance given in October that further rate increases might not be warranted based on the projected inflation trajectory.
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