Tuesday, December 22, 2009

Financial News Flash


Reliance Industries Discovers More Gas in Bay of Bengal; Shares Advance Reliance Industries Ltd., India’s most valuable company, found more natural gas in the Krishna- Godavari basin next to the nation’s biggest gas field off the nation’s east coast. Shares rose.

Sensitive Index Climbs From Six-Week Low, Led by Bharti Airtel, Hindalco India’s stocks rose from a six-week low, led by telecommunications companies and commodity producers, after the government quashed concern it would delay an auction of 3G licenses and metals prices advanced.

India May Raise Cash Reserve Soon to Curb Prices, Macquarie's Malik Says India’s central bank may drain cash from the economy on or before the next monetary policy meeting on Jan. 29 to control inflation, Macquarie Group Ltd. economist Rajeev Malik said.

India to Compensate State-Owned Refiners With Cash for Selling Below Cost India, the world’s second-fastest growing major economy, may give cash instead of bonds as compensation to state-owned oil refiners for selling cooking gas and kerosene below cost to help the government curb inflation.

Aegis Climbs to One-Year High on Plans to Buy Shell's India Gas Business Aegis Logistics Ltd. rose to the highest in more than a year in Mumbai trading on a plan to acquire Royal Dutch Shell Plc’s liquefied petroleum gas business in India.

BSE Brokers Forum Expects No Benefits From Bourses Extending Trading Hours India’s Bombay Stock Exchange brokers body said it wanted the bourse to reconsider plans to extend trading hours as there is “no clear benefit” to any of the market participants, according to an e-mailed statement.

Decade's Biggest Gain for Stoxx 600 May Last on Profits, Strategists Say European equity strategists say earnings growth can push stocks 11 percent higher in 2010 following the steepest annual rally in a decade.

Bonds Advance as Ahluwalia Says Interest Rates Can't Curb Food Inflation Indian bonds rose after Planning Commission Deputy Chairman Montek Singh Ahluwalia said monetary policy is no solution for food inflation, tempering speculation the central bank is preparing to raise interest rates.

Rupee Rises on Speculation Indian Exporters Converting Overseas Earnings India’s rupee rose on speculation exporters will convert overseas earnings into local currency, boosting the supply of dollars in the financial market.

Greek Credit Rating Cut to A2 by Moody's; Bonds Rise on One-Step Downgrade Greece had its credit rating cut one step to A2 by Moody’s Investors Service, sparking a rally in its bonds as concern eased that a steeper downgrade would make its debt ineligible as collateral at the European Central Bank.

Dubai World Said to Present Standstill Deal on $22 Billion Debt in January Dubai World will present a standstill offer to banks in early January as the state-owned company aims to restructure $22 billion of debt, said three bankers who attended a presentation on the matter yesterday.

Stocks Rise, Bonds Fall as Economies Improve; Greek Government Debt Gains Stocks rose, sending the Dow Jones Stoxx 600 Index close to a 14-month high, and government bonds fell on evidence economies around the world are improving. Greek stocks and debt rallied.

Lloyds Agrees to Pay at Least $3.6 Billion to Raise $2 Billion of Capital Lloyds Banking Group Plc, the U.K. mortgage lender bailed out by the government, agreed to pay at least $3.6 billion over 15 years to raise $2 billion in capital.

U.K. Economy Shrank 0.2% in Third Quarter, Less Than Previously Estimated The U.K. economy shrank less than previously estimated in the third quarter as a jump in construction and fixed investment brought the longest recession on record closer to ending.

AIG Said to Halt Chartis Stock Sale as CEO Benmosche Deems It Core Asset American International Group Inc., the insurer rescued by the U.S. government, halted preparations for an initial public offering of its Chartis property-casualty unit, people familiar with the matter said.

OPEC Agrees to Leave Production Target Unchanged for Fourth Time This Year The Organization of Petroleum Exporting Countries agreed to keep production targets unchanged for a fourth time this year, as expected.

source: Bloomberg