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Monday, April 06, 2009

News Flash

India's Policy Response to Be 'Tailored' to Shield Growth, Subbarao Says India’s central bank said its policy response will be “tailored” to arrest a steeper-than-estimated moderation in growth as it has done “everything” the economy needed so far.

State Bank of India, Macquarie Group Raise $1 Billion Infrastructure Fund State Bank of India, the nation’s largest lender, and Macquarie Group Ltd., Australia’s biggest investment bank, have raised $1 billion to invest in ports and power plants in the south Asian nation.

Asian Stocks Extend Four-Week Rally as Bernanke Says Policies Are Working Asian stocks rose for a fourth day, led by banks and carmakers, after the yen weakened to a five- month low and U.S. Federal Reserve Chairman Ben S. Bernanke said policies to unfreeze credit markets are working.

Sensitive Index Rises for a 4th Day on Bernanke Comments ; HDFC Advances Indian stocks rose for a fourth day after U.S. Federal Reserve Chairman Ben S. Bernanke said policies to unfreeze credit markets are working.

India Exports to Remain Weak in FY10 as Recession Damps Demand, Group Says India’s exports are likely to show negative to flat growth in the year that started April 1 as recessions in the U.S. and Europe damps demand for the nation’s products, an industry group said.

Government Bonds Decline as Indian Debt Supply This Week May Lift Yields India’s bonds fell on speculation investors will demand higher yields at a debt sale this week, the second auction since the fiscal year began on April 1.

Asian Economies Poised to `Spring Back' on Stimulus, Rate Cuts, HSBC Says Asian economies are poised to “spring back” from the biggest slowdown in more than a decade as lower interest rates, government stimulus plans and tumbling commodity prices spur domestic demand, HSBC Holdings Plc said.

Rupee Strengthens, Extending Four-Week Rally, as Stock Gains Attract Funds India’s rupee rose for a fourth day, the longest winning streak in two months, as a rally in stocks added to signs a global credit crisis is easing.

Stocks in U.S. Decline on Banking Concern; U.S. Bancorp, Suntrust Retreat U.S. stocks fell for the first time in five days as Mike Mayo, analyst at Calyon Securities, advised selling bank shares and International Business Machines Corp.’s purchase of Sun Microsystems Inc. collapsed.

S&P 500 Can't See Enough Money-Making in Final Quarter to Keep Rally Alive Investors are depending on banks more than at any time in at least 60 years to lead the U.S. out of the longest earnings slump since the Great Depression.

Mayo Says Loan Losses at Banks Will Exceed Levels Seen in Great Depression Mike Mayo, who left Deutsche Bank AG last month and joined CLSA, assigned an “underweight” rating to U.S. banks and predicted loan losses will exceed levels from the Great Depression.

Bernanke's `Green Shoots' May Be False Spring as Job Losses Keep Mounting It will be months before it’s clear whether what Federal Reserve Chairman Ben S. Bernanke calls the U.S. economy’s “green shoots” represent the early onset of recovery, or a false spring.

Earnings Freefall May Slow as Alcoa, Dow Chemical Show Signs of Recovery Earnings at companies such as Alcoa Inc. and Dow Chemical Co. may show the first signs of recovery in the second quarter after profits at Standard & Poor’s 500 Index members fell 37 percent in the first three months of 2009.

Zuckerman Sues Ezra Merkin, Gabriel Capital Over $40 Million Madoff Losses Mort Zuckerman, chairman of Boston Properties Inc. and publisher of the New York Daily News, sued Ezra Merkin and his Gabriel Capital LP for $40 million in losses suffered due to investments made with Bernard Madoff.

source: Bloomberg

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