NEWS 08-06-2010

Investors Pick America Over BRICs in Global Bloomberg User Poll

The U.S. has supplanted China and Brazil as the most attractive market for investors as confidence in the global economic recovery wanes in the wake of the Greek debt crisis.

Ratings agencies concerned about Hungary

Moody's said comments made by officials in Hungary's new centre-right Fidesz government suggesting the country was close to a Greek-style economic meltdown were "inflammatory" and came at "a delicate time" for global markets.

The Beijing Blues

"In many ways the financial crisis and the discrediting of the American model has been bad for us. You see, we don't really have an ideology anymore. We don't know what we believe in. We used to think it was some version of the American Dream—liberalize, open up, grow. But then you had your crisis. We can say, it proves we're strong. But where do we go now?"

Brainard Warns Asia Against Resuming Reliance on U.S. Demand
The U.S. Treasury’s top international official warned Asian nations against resuming reliance on exports to America as a main source of economic growth, singling out China and urging a more flexible yuan.

IMF urges tough action on Europe's debt crisis
"Crisis management is not an alternative to the corrective policy actions and fundamental reforms needed to reinforce the foundation of the European Monetary Union (EMU)."

Elliott Wave Intl. President says gold could fall 40%
"In terms of timing, the time to get excited about gold was back in 2001 when no one wanted it, and now everyone seems to want it, so I don't."


BP Spending Picks Up on Spill as Capture Rate Rises
About 40 billion pounds ($58 billion) has been wiped off the value of BP since the accident. The spill may cost the company as much as $37 billion in cleanup and litigation costs, Credit Suisse estimated on June 2.

India’s Rupee Slides on Speculation Fund Outflows to Accelerate 

India’s rupee slid the most in a week on speculation fund outflows from local stocks will accelerate as investors shun emerging-market assets amid concern the global economic recovery may stall.

India must hike rates: World Bank
South Asian economies, including India and Pakistan, need to raise borrowing costs to contain inflation and cut budget deficits to endure future shocks to growth, the World Bank said.

New listing norms may find few investors
"With incremental flows strongly dependent on the global macro (situation), there could be few takers for the additional capital of Rs 58,500 crore ($12.5 billion) on offer this fiscal...,"

Govt to pump money into 7 banks

The exact amount, the mode of capitalisation and other terms would be decided in consultation with the banks at the time of infusion. The Rs 15,000-crore fund infusion in tier I capital instruments of PSBs would enable them to expand their credit growth by about Rs 1,85,000 crore. This additional credit availability is likely to benefit employment-oriented sectors, especially agriculture, micro and small enterprises and entrepreneurs.

Oil Trades Near Lowest in Week on Concern Debt Will Hurt Demand
Crude oil traded near its lowest level in more than a week in New York amid concern the government debt crisis in Europe will spread and curtail the recovery in global fuel demand.


No hike in petrol, diesel prices for now
It was noted at the meeting that under-recoveries of oil marketing companies on account of current price structure and burden faced the government by way of compensating the companies during the period 2003-04 to 2009-10 was in excess of Rs 3.45 lakh crore. The possible inflationary impact of rise in the prices of petroleum products was also discussed.

Reliance Plans On Entering Nuclear Energy
Reliance industries’ which is promoted by Mukesh Ambani might enter into nuclear energy after being untied from an agreement with ADAG (Anil Dhirubani Ambani group). This group reportedly barred it from certain business like power.

GAIL to start work on Dabhol-Bidadi project
"We have opened a office in Bangalore and have recruited a team of 60 officials to start work on the project. The work will simultaneously commence at 10 locations along the proposed route for the gas pipeline. We are very confident that the project will be completed by March 2012 and the gas available for end-users,"

Govt plans windfall tax on miners
On the heels of Australia announcing 40% tax on bumper profits of miners, the mines ministry is proposing a similar windfall tax on iron ore.

India eyeing coal assets in Australia
"For one million tonnes of coal, an investment of $100-200 million is required." NTPC, which has cash reserves of Rs 18,000 crore (Rs 180 billion), has earmarked a capital expenditure of Rs 29,000 crore (Rs 290 billion) for the current fiscal.

RCom, AT&T in informal merger talks
The Wall Street report cited a person privy to the development saying that RCom was in stake sale talks with Abu Dhabi-based Emirates Telecommunications Corp (Etisalat) for about two months, but is now courting other foreign telecom firms including AT&T.

Drug firms on outsourcing high
According to data put together by Business Standard, the country's top 30 drug makers are investing over Rs 5,500 crore (Rs 55 billion) in expanding capacity, partly to meet outsourcing calls, while the next rung of companies have lined up investments of around Rs 5,000 crore (Rs 50 billion).


The Costliest Pharma Deal of all times.
Piramal Healthcare sells off-patent and inexpensive drugs also known as generics. This makes the 3.7 billion dollar offer from Abbott one of the most expensive ever, one reason why the meager 4 hours spent by Piramal on creating the 3 page note with the help of his daughter, so surprising.