Friday, January 15, 2010

Financial News Flash


Wipro Surges to Ten-Year High on Report of $1 Billion Sponsored ADR Sale Wipro Ltd., India’s third-largest software exporter, surged to its highest in almost 10 years after the ET Now television channel reported the company may sponsor shareholders to sell $1 billion of stock to U.S. investors.

India's Steel Ministry Seeks Prime Minister Singh's Help for Posco Project India’s steel ministry has sought Prime Minister Manmohan Singh’s help to secure permits to begin work on a planned $12 billion Posco steel plant this year after land disputes stalled the project first announced in 2005.

India Overtakes China as Biggest Palm Oil Buyer on Rising Incomes, Demand India surpassed China as the world’s biggest buyer of palm oil as rising incomes increased demand for fried and processed foods and drought reduced domestic cooking oil production, according to a processor group.

Holcim to Invest $1.1 Billion Over Five Years to Increase India Capacity Holcim Ltd. plans to invest $1.1 billion in India over the next five years to expand cement- making capacity to 60 million tons, from 50 million tons at present, Paul Hugentobler, a member of the Swiss company’s executive committee, told reporters in New Delhi today.

Nomura to Hire 125 People in India, China as Fixed-Income Bond Sales Surge Nomura Holdings Inc., Japan’s biggest investment bank, will add as many as 125 people to its fixed-income teams in Asia outside Japan this year as part of a plan to increase revenue from the region by at least 30 percent.

India May Pay Cash to Refiners for Below-Cost Fuel Sales, Pandey Says India’s government may pay cash to Indian Oil Corp. and other state-owned oil refiners to partly compensate them for losses incurred from selling fuels below cost, Oil Secretary R.S. Pandey said.

Software Makers in India Favored by BNP Paribas; Infosys Joins Model Fund Indian software developers were raised to “overweight” at BNP Paribas, which said it favors them as their earnings outlook and cash flows may shield them from a possible decline in the nation’s equities this quarter.

India's Rupee Little Changed as Economic Recovery Attracts Investment India’s rupee was little changed amid speculation the improving economy will prompt overseas investors to pump more funds into the nation’s assets.

Indian Oil 5-Year Bond May Be Priced at 205-210 Basis Points Over Swaps Indian Oil Corp., the nation’s largest state-owned refiner, is expected to price its five-year bonds in U.S. dollars between 205 basis points and 210 basis points over the benchmark mid-swap rate, according to a person familiar with the matter.

Government Bonds Drop to 15-Month Low as Quickening Inflation Damps Demand India’s 10-year bonds fell, pushing their yield to a 15-month high, on concern quickening inflation will lead to higher interest rates.

Obama Says Financial-Firm Fee Aimed at Fully Recovering U.S. Bailout Funds President Barack Obama said the levy he wants to impose on as many as 50 large financial firms is aimed at getting back “every single dime” that taxpayers put in to bailing out those companies.

Treasuries Advance, Stock Rally Slows as Retail Data Dim Recovery Optimism Treasuries rose and an advance in stocks was limited as an unexpected drop in U.S. retail sales damped optimism about the pace of the economic recovery. The euro weakened as European Central Bank President Jean-Claude Trichet said the region’s outlook is unclear.

JPMorgan, Bank of America Face Tax Bill of $1.5 Billion Each in Obama Plan The Obama administration’s proposal to tax financial firms may annually cost JPMorgan Chase & Co. and Bank of America Corp. more than $1.5 billion each, hinder the industry’s recovery and stifle investor interest in bank stocks, analysts and investors said.

U.S. Retail Sales Unexpectedly Drop in Sign Economy May Be Slow to Recover Sales at U.S. retailers unexpectedly fell in December following a bigger gain than previously estimated the prior month, highlighting the risk that the largest part of the economy will be slow to recover.

Federal Reserve Fights to Keep Bank-Oversight Powers in Letter to Senators Federal Reserve Chairman Ben S. Bernanke told senators a proposal to strip the central bank of its authority to supervise banks could harm its ability to conduct monetary policy and provide emergency aid to lenders.

Cadbury Says Hershey Recently Reaffirmed Interest, No Formal Bid Received Cadbury Plc, the U.K. confectioner fighting a takeover offer from Kraft Foods Inc., said Hershey Co. remains interested in the Dairy Milk maker and would transform itself into a global business by trumping Kraft’s bid.

Disney Said to Be Seeking Netflix Streaming Block in Starz Contract Talks Walt Disney Co. is in talks with Liberty Media Corp.’s Starz that may limit the movie channel’s ability to provide films online to Netflix Inc., two people with knowledge of the talks said.

source: Bloomberg