Friday, January 22, 2010

Financial News Flash


Reliance Profit Beats Estimates as Natural Gas Sales Counter Refining Drop Reliance Industries Ltd., India’s biggest company by market value, reported its first profit increase in more than a year as higher natural gas sales outweighed lower earnings from processing oil.

Sensex Index Completes Biggest Weekly Decline in 12 on Credit, GDP Outlook Indian stocks fell, driving the benchmark index to its biggest weekly loss in almost three months, as Morgan Stanley said “upside risks” in growth and inflation may force the central bank to raise interest rates.

Emerging-Market Stocks Slide, Heading for Worst Weekly Fall Since October Emerging-market stocks fell, heading for their steepest weekly decline since October, as commodity prices dropped amid concern higher interest rates in China and proposed U.S. banking reforms will slow economic recovery.

Tata Steel, NMDC Sign Agreement to Acquire Mines and Build Steel Plants Tata Steel Ltd. signed an agreement with NMDC Ltd., India’s largest iron-ore producer, to acquire mines and set up steel plants, Tata, the nation’s biggest steelmaker, said in a statement to the Bombay Stock Exchange today.

Turnover on Commodity Exchanges May Rise 43% on Higher Prices, Volumes Turnover on commodity exchanges in India, the world’s biggest gold consumer, may rise 43 percent to a record this year on higher prices and volumes, the industry regulator said.

India Rules Out Curbs on Soybean Futures Trading to Cool Domestic Prices India, Asia’s biggest soybean meal exporter, ruled out curbs on futures trading in the oilseed to cool prices and stop a decline in livestock feed shipments.

Lodha Developers May Begin $605 Million Sale of Stock in India Next Month Lodha Developers Ltd. may have its initial public offering of shares as early as Feb. 8, managing director Abhisheck Lodha said.

Anil Ambani's Reliance Asset Sets up Malaysia Unit to Tap Shariah Market Indian billionaire Anil Ambani’s Reliance Capital Ltd., owner of the nation’s largest mutual fund manager by assets, set up a Malaysian unit to serve as a global hub for Shariah-compliant financial products.

Government Bonds Complete Best Week in Two Months on Interest Rate Outlook India’s 10-year bonds completed their best week in two months on speculation slowing food inflation will encourage the central bank to refrain from raising benchmark interest rates at a Jan. 29 policy meeting.

Sugar May Jump 20% in First Half on India Demand, Top Thai Exporter Says Sugar futures may climb 20 percent by June, extending the rally to the highest level since November 1980, as global demand exceeds supply, said Thai Sugar Trading Corp., the country’s top exporter.

JPMorgan, Goldman May Be Forced to Shed Buyout Units Under Obama Proposal JPMorgan Chase & Co. and Goldman Sachs Group Inc. may have to sell some private-equity businesses and stop investing in buyouts under a proposal by President Barack Obama to limit bets made by banks with their own capital.

General Electric Profit Exceeds Analysts' Estimates as Order Backlog Rises General Electric Co.’s fourth- quarter profit exceeded analysts’ estimates as the order backlog rose and the company benefited from a tax gain and cost-cutting efforts including job reductions.

Bank Stocks, Dollar Fall on Obama Plan; Emerging Markets, Greek Bonds Drop Financial stocks fell and the dollar weakened on concern President Barack Obama’s plan to rein in banks will dent U.S. earnings. Emerging-market shares dropped for a third day on speculation China will raise interest rates.

Corporate Spreads Widen, Boosting Yield for Morgan Stanley: Credit Markets The rally in corporate bonds that drove U.S. borrowing costs to two-year lows is sputtering after President Barack Obama unveiled plans to rein in trading by banks and concerns about the economy grew.

Obama's `Unilateral' Bank Plan Shows Lack of Global Coordination on Rules President Barack Obama’s plan to curb proprietary trading shows banking regulations are being implemented unilaterally, not on the global scale lenders urged, according to lawyers.

McDonald's Earnings Beat Analysts' Estimates as Global Sales Increase 2.3% McDonald’s Corp., the world’s largest restaurant company, reported fourth-quarter earnings that topped analysts’ estimates as global sales at established stores increased 2.3 percent.

Terror Attacks Anticipated in 2010 Fail to Alter Investing in Global Poll Most investors say a major terrorist attack is likely this year, though they’re not changing investment strategies as a result.

source: Bloomberg