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Thursday, January 08, 2009

News Flash

Satyam Founder Raju Sparks Indian Enron With $1 Billion Accounting Scandal Ramalinga Raju built Satyam Computer Services Ltd. into India’s fourth-biggest software maker over two decades. He undermined the company’s future with revelations that he overstated profit and falsified assets for years, triggering a scandal that’s being compared to Enron Corp.

Satyam May Restate Earnings, Unsure of Cash During `Unimaginable Crisis' Satyam Computer Services Ltd., India’s fourth-largest software exporter, said it is dealing with a crisis of “unimaginable proportions” after its founder admitted to $1 billion of false accounting and quit the board.

Asian Stocks Decline, Wiping Out 2009 Advance; Lenovo, BHP Billiton Slump Asian stocks declined, wiping out the benchmark index’s 2009 gains, as the deepening global recession reduced profits and drove down oil and metals prices.

Coal, Metal Prices to Plunge in 2009 on Demand; Buy Copper, Goldman Says Metal and coal prices are expected to average “considerably lower” in 2009 as demand plunges in a global recession and producers can’t cut supply fast enough, Goldman Sachs JBWere Pty said.

India Economy to Grow 7% This Fiscal Year, Fundamentals Strong, Singh Says India’s economy will grow about 7 percent in the 12 months ending March 31, Prime Minister Manmohan Singh said in Chennai today.

Peel to Head TPG's Asia Emerging Market Unit After Carroll Returns to U.S. TPG Inc., manager of a $20 billion buyout fund, appointed Stephen Peel to head the firm’s Asia emerging markets operations after Dan Carroll decided to move back to the U.S., a company spokesman said.

Hindustan Zinc Raises Zinc Prices 6.6%, Raises Lead by 11% on Global Rates Hindustan Zinc Ltd., India’s largest producer of the metal, raised zinc and lead prices for the second time in six days to match global rates.

Crude Oil Declines in New York as Concerns Deepen Over Scale of Recession Crude oil fell for a third day as the weakening equity markets and rising number of jobless workers intensified concern that the recession will cut fuel use.

Wal-Mart, Gap, Macy's Trim Forecasts After Shoppers Curb Holiday Purchases Wal-Mart Stores Inc., Macy’s Inc. and Gap Inc. slashed earnings forecasts after the worst holiday- shopping season in 40 years squeezed retail profit margins.

Stocks in U.S. Decline as Retailers Cut Forecasts; Wal-Mart Shares Tumble U.S. stocks slid for a second day after retailers from Wal-Mart Stores Inc. to Limited Brands Inc. said profit will trail forecasts as the recession limited holiday spending and sent jobless claims to a 26-year high.

BOE Reduces Interest Rate to Lowest Since Central Bank's Creation in 1694 The Bank of England cut the benchmark interest rate to the lowest since the central bank was founded in 1694 as policy makers tried to prevent the credit squeeze from deepening Britain’s recession.

Commerzbank Will Get $13.7 Billion in Capital as Germany Takes 25% Stake Commerzbank AG, Germany’s second- biggest lender, will receive 10 billion euros ($13.7 billion) of additional capital from the German government, which will receive a stake of 25 percent plus one share in the bank.

Bank of America, Citigroup May Face Restrictions After Financial Meltdown The biggest U.S. banks may face the threat of lower profits or pressure to break up under greater regulation following the financial crisis.

Madoff Investigators Find 100 Checks Worth $173 Million in Desk, U.S. Says Investigators searching the office desk of Bernard Madoff after his arrest found about 100 signed checks, totaling about $173 million, ready to be sent to family, friends, and employees, prosecutors said.

Citigroup's Phibro Anchors Tanker Off Scotland, Seeking Contango Profits Citigroup Inc.’s commodities-trading unit followed BP Plc and Royal Dutch Shell Plc in anchoring a full oil tanker offshore northern Scotland to profit from higher prices later this year.

source: Bloomberg

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