Tuesday, December 15, 2009

Financial News Flash


Exports From India Climb for First Time in 14 Months on Christmas Demand India’s exports climbed for the first time in 14 months as an economic recovery in the U.S. and Europe increased demand for the South Asian nation’s products before Christmas.

Lyondell Evaluates Reliance Bid, Plans to Pay Bankruptcy Lenders in Full Lyondell Chemical Co. filed a plan to reorganize even as it evaluates an offer from Reliance Industries Ltd., pitting India’s biggest company against lenders in a battle for the bankrupt chemical maker.

Bombay Stock Exchange to Extend Trading Time to Attract Overseas Investors The Bombay Stock Exchange, Asia’s oldest bourse, said it will extend trading by 10 minutes to attract overseas investors.

Renaissance, Backed by Russia's Richest Man, and Kotak to Work on Mergers Renaissance Capital, the investment bank backed by Russia’s richest man, said it will work with the former Indian partner of Goldman Sachs Group Inc. to advise clients on takeovers in emerging markets.

India's Mahindra Acquires Majority Stake in Aerostaff Australia, Gippsland Mahindra & Mahindra Ltd. said it bought majority stakes in two Australian companies Aerostaff Australia and Gippsland Aeronautics for a total commitment of about 1.75 billion rupees.

DSP Merrill Lynch to Add More Advisers as Number of Millionaires Increase DSP Merrill Lynch Ltd. will add more advisers in India to manage the assets of people with more than $1 million of financial assets as the ranks of the rich swell the market by as much as 40 percent a year over the next decade.

Sensitive Index Declines Most in Two Weeks; State Bank of India Retreats India’s benchmark stock index fell to a two-week low. State Bank of India led lenders lower for the second day on speculation the central bank may tighten monetary policy to contain spiraling food costs, curtailing lending.

Indian Oil, State-Owned Refiners Spend $5 Billion on Making Cleaner Fuels Indian Oil Corp., the nation’s second-biggest refiner, and its state-run rivals are spending 235 billion rupees ($5 billion) to produce cleaner fuels and meet stricter emissions guidelines.

Rupee Declines to Five-Week Low as Quickening Inflation May Erode Returns India’s rupee closed at a five-week low on concern foreign investors will pare their holdings of local assets as accelerating inflation erodes returns.

JSW Energy Prices Initial Offer at Lowest End of Band on Waning Demand JSW Energy Ltd., a unit of India’s third-largest steelmaker, will sell shares at the lowest end of a price band after its initial stock sale received the weakest response among rival power company offerings.

U.S. Industrial Output Rises Most in Three Months as Recovery Gains Speed Industries in the U.S. boosted production in November by the most in three months, showing the world’s largest economy is gaining speed heading into 2010.

Producer Prices in U.S. Rose More Than Forecast in November on Fuel Costs Wholesale prices in the U.S. increased more than anticipated in November, led by a jump in fuel costs and a rebound in truck prices.

Wells Fargo Sells Stock to Repay Bailout Funds as U.S. Banks Exit Program Wells Fargo & Co., seeking to wipe away the tarnish of U.S. government bailout funds, kept pace with rival banks by selling $10.65 billion of common stock to help repay the Troubled Asset Relief Program.

Best Buy Lowers Profit-Margin Forecast for Fourth Quarter; Shares Retreat Best Buy Co., the largest electronics retailer, said its fourth-quarter gross margin will be lower than it anticipated as the chain relies on less profitable notebook computers and televisions to drive sales.

Bank of America Said More Likely to Tap Insider for CEO as Kelly Drops Out Bank of America Corp. is more likely to promote someone from its own ranks to be chief executive officer after the leading outside candidate withdrew, according to a person familiar with the matter.

Bank of England's Barker Sees Need for Caution on Further Bond Purchases Bank of England policy maker Kate Barker said she’s wary of increasing bond purchases further even as the U.K. economy’s “bumpy and uneven” recovery keeps a lid on inflation.

Bernanke May Hesitate to Tighten in 2010 as Congress Debates Fed's Powers Proposals in Congress to trim the Federal Reserve’s powers and subject it to greater scrutiny mean Chairman Ben S. Bernanke may have to think twice about raising rates in 2010 as long as unemployment stays high.

source: Bloomberg