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Nooyi among business leaders Obama consults

New York, July 30: Democratic presidential candidate Barack Obama has met with a bipartisan group of business and economic leaders, including India-born PepsiCo chief Indra Nooyi, and he intends convening the group periodically in the run-up to the November election.

Obama called the meeting Monday to discuss the "deteriorating" economic situation in the US and went on to lay out his strategy for "short-term relief and long-term growth". He also voiced his support for "a second round of economic stimulus", CBS News reported.

He said he would be convening the same group periodically over the next few months "because of the dynamic situation and one that the next president will need to be prepared to deal with the moment he takes office".

The impressive list of those who attended, besides Nooyi, included Warren Buffett who participated by phone, JPMorgan Chase CEO Jamie Dimon, Google CEO Eric Schmidt, New Jersey Governor Jon Corzine, former SEC chairman under President Bush, William Donaldson; former treasury secretary under Bush, Paul O'Neill; former treasury secretary under President Clinton, Robert Reich and former Federal Reserve chairman Paul Volcker.

Cadbury profits jump 46%

London, July 30: Confectionery giant Cadbury reported a 46 percent rise in first-half profits on Wednesday and said it was confident for 2008 with sales growth seen at the top of its target and margins ahead of market consensus.

The London-based group which makes Dairy Milk chocolate, Trident gum and Halls cough drops posted a first-half pre-tax profit of 223 million pounds ahead of a forecast range of 196 million to 221 million and a mean of 212 million.

The company which is the world's largest confectionery group until Mars completes its takeover of Wrigley later this year said its first-half underlying sales rose 7 percent and its operating margins increased 1.9 percentage points.

The group's first-half dividend rose 6 percent to 5.3 pence.

Zimbabwe devalues $10 bn note to $1

Harare, July 30: Zimbabwe will 10 zeros off the country's hyper-inflated currency next month, making USD 10 billion to USD 1, the nation's central bank governor said Wednesday.

President Robert Mugabe immediately warned in a televised address that he will impose a state of emergency if profiteers take advantage of the change on Aug. 1.

"Don't drive us further. If you drive us even more we will impose emergency measures. We don't want to place our country under emergency rule," Mugabe said.

Zimbabwe suffers the highest inflation rate in the world. Inflation is constraining operations of the country's computer systems, central bank Gov. Gideon Gono said.

Computers, electronic calculators and automated teller machines at banks have not been able to handle basic transactions in billions and trillions of dollars.

Just last week Gono introduced a new 100 billion-dollar note that is not enough to buy a loaf of bread.

Gono said on Aug. 1 the bank will issue a 500-dollar bill equivalent to 5 trillion dollars at the current rate.

Tata Comm net dips 24% at Rs 98.34 cr

Mumbai, July 30: Tata Communications Wednesday reported the first quarter net profit at Rs 98.34 crore, a 24.14 percent decline over the corresponding period last year.

The company, formerly VSNL, had a net profit of Rs 129.65 crore in Q1 of FY'08, Tata Communications said in a filing to the Bombay Stock Exchange.

The total income rose 3.78 percent to Rs 921.29 crore in the June quarter, from Rs 887.72 crore in the same period previous fiscal.

During the quarter, the company had entered into an agreement with South African state-owned enterprises, Eskom and Transnet, to acquire their 30 percent stake in Neotel. However, the company did not disclose the financial details of the transaction.

After the closure of this transaction, the company along with Tata Africa Holdings would hold 56 percent stake in Neotel, the filing added.

Further, during the quarter the telecom solutions provider had entered into an equity joint venture agreement to acquire 50 percent stake in China Enterprise Communications (CEC) subject to Chinese government and regulatory approvals.

Last month Tata Communications International Pte, a wholly-owned subsidiary of Tata Communications, had signed the equity joint venture agreement with the shareholders of CEC for acquiring the stake in the company.

Shares of Tata Communications touched an intra-day high of Rs 461.85 and were later trading at Rs 453, up 11.88 percent in the afternoon trade on the BSE.

Parsvnath Q1 net dips 16% on high interest, input costs

New Delhi, July 31: Realty firm Parsvnath Developers Ltd on Thursday reported a 16 per cent decline in net profit at Rs 71 crore for the quarter ended June 30, owing to higher interest, administrative and input costs.

The company had posted a net profit of Rs 84 crore in the first quarter of 2007-08 fiscal.

However, the net sales rose by five per cent to Rs 372 crore during the April-June period, against Rs 357 crore in the year-ago period.

"Profit has declined on account of increase in interest, staff and input costs," Parsvnath Chairman Pradeep Jain told reporters here.

Interest component has increased to Rs 17 crore from Rs 3 crore while staff cost has risen by about Rs 5 crore in the review period, Jain said. He pointed out that input cost has also increased by 8-10 per cent in the last 15 months.

"Our borrowing cost has gone up to 12.9 per cent from 12.67 in the last quarter," he said.

However, Jain expressed confidence that the company would not close the fiscal with decline in sales as well as profits and denied any slowdown in the property demand.

"Sales made at higher prices would be recognised in the coming quarters and therefore we expect high growth by end of the year," he noted. The company has raised its property price by 12-14 per cent since January this year.

Jain said the company was looking for foreign direct investment in some of the housing and commercial projects.

Asked about progress made on the company's plan to foray into retail sector, Jain said the talks are in an advance stage for a tie-up with global retail chain and announcement is expected in the next three-four weeks.

It plans to open stores under different formats, including hypermarkets, convenience and very large stores during the current fiscal.

Rcom Q1 net jumps 23.9%

Mumbai, July 31: Riding high on a sharp growth in subscriber base, Anil Ambani group's telecom arm RCOM Thursday reported a 23.9 percent jump in its first quarter net profit at Rs 1,512 crore and announced plans to invest over Rs 25,000 crore in the current fiscal.

The company expects "a significant acceleration in earnings from next year," RCOM Chairman Anil Ambani said, adding that its plans to launch pan-India GSM operations were on track. The company's mobile business is predominantly CDMA technology based at present.

The company's pan-India launch of GSM based mobile services is slated for roll out by the end of this fiscal.

The first quarter revenue rose 23.7 percent to Rs 5,322 crore from Rs 4,303.7 crore in the corresponding quarter last fiscal. Its shares were down marginally at close of trade at Rs 500.05.

The company said it remains "the most profitable telecom company in India" and witnessed a significant growth in its wireless as well as enterprise business segments.

The company, which recently became the fifth Asian telecom firm to attain over 50 million subscribers, said its customer base has now crossed 53 million.

Of its plan to invest Rs 40,000-50,000 crore in FY'08 and FY'09, RCOM said close to USD six billion (about Rs 25,000 crore) would be invested in the current fiscal.

RCOM's rival Bharti Airtel posted a 34 percent jump in Q1 net to Rs 2025 crore.

hdfc raises lending rate by 75 basis points

MUMBAI: Housing Development Finance Corp said on Thursday it was raising its retail prime lending rates by 75 basis points, the latest in a series of rate hikes by lenders after the central bank tightened policy.

The increase will take effect from Aug. 1 and its floating home loan rates will carry a minimum rate of 11.75 percent, a 75 basis point increase, it said in a statement.

HDFC's move follows rate hikes by Punjab National Bank, Axis Bank and Jammu & Kashmir Bank. The central bank raised its key lending rate for the third time in two months on Tuesday, taking it up 50 basis points to 9.0 percent, the highest in seven years. It also raised the cash reserve ratio by 25 basis points.

data alert foreign funds net sell 82 4 mln of indian shr jul 29

DATA ALERT: Foreign funds net sell $82.4 mln of Indian shr Jul 29
Wednesday, Jul 30
.
MUMBAI - Following are details of the investments by foreign institutional
investors in Indian stock and debt markets on Jul 29 according to the
Securities and Exchange Board of India:
.
On Jul 29 So far in Jul
Equity Debt Equity Debt
(million rupees) (million rupees)
Gross buy 23,127 1,593 582,343 59,106
Gross sale 26,450 334 594,523 24,635
Net investment (3,323) 1,259 (12,178) 34,472
.
Net investment in U.S. $ mln (82.4) 31.2 (301.9) 854.4
.
Previous months' net investments in million US dollars:
Total Equity Debt
2008
Jun (2,827.3) (2,622.3) (205.0)
May (1,198.7) (1,158.3) (40.4)
Apr (178.9) 242.9 (421.8)
Mar (187.1) 31.0 (218.1)
Feb 1,829.4 1,210.5 618.9
Jan (3,783.2) (4,270.6) 487.4
.
2007
Dec 2,022.1 1,213.8 808.3
Nov (1,236.9) (1,139.8) (97.1)
Oct 4,854.7 4,267.7 587.0
Sep 5,326.4 4,644.7 681.7
Aug (1,744.5) (1,860.9) 116.4
Jul 4,243.9 4,529.8 (285.9)
Jun 1,627.0 1,758.5 (131.5)
May 1,478.1 1,084.9 393.2
Apr 1,430.9 1,256.8 174.1
Mar 804.8 316.7 488.1
Feb 1,362.2 1,248.6 113.6
Jan (442.8) 39.6 (482.4)
.
2006
Dec (587.9) (781.2) 193.3
Nov 2,204.6 2,023.5 181.1
Oct 1,670.8 1,528.5 142.3
Sep 1,489.9 1,339.1 150.8
Aug 1,201.6 1,027.2 174.4
Jul 339.2 306.0 33.2
Jun 401.8 314.3 87.5
May (1,671.9) (1,829.2) 157.3
Apr 1,774.0 1,214.0 560
Mar 1,415.0 1,473.4 (58.4)
Feb 1,657.3 1,691.2 (33.9)
Jan 503.4 705.1 (201.7)
.
2005
Dec 1,918.0 2,103.4 (185.4)
Nov 471.8 994.7 (522.9)
Oct (1,063.9) (866.2) (197.7)
Sep 929.5 971.7 (42.2)
Aug 909.0 1,014.2 (105.2)
Jul 1,847.8 1,887.8 (40.0)
Jun 1,309.3 1,325.5 (16.2)
May (262.5) (185.1) (77.4)
Apr (406.6) (239.5) (167.1)
Mar 1,757.7 1,719.5 38.2
Feb 2,014.7 1,785.2 229.5
Jan 126.0 281.1 (155.1)
.
2004
Dec 1,978.0 1,305.1 672.9
Nov 1,774.6 1,400.8 373.8
Oct 632.6 875.9 (243.3)
Sep 625.4 601.2 24.2
Aug 546.4 612.5 (66.1)
Jul 216.4 260.6 (44.2)
Jun (112.7) 72.5 (185.2)
May (796.8) (738.5) (58.3)
Apr 758.5 924.8 (166.3)
Mar 2,087.2 1,929.8 157.4
Feb 731.3 694.2 37.1
Jan 694.0 534.8 159.2
.
2003
Dec 1,409.1 1,374.6 34.5
Nov 859.8 701.4 158.4
Oct 1,431.8 1,496.5 (64.7)
Sep 932.7 855.2 77.5
Aug 466.4 437.6 28.8
Jul 479.8 519.5 (39.7)
Jun 729.4 554.0 175.4
May 654.1 254.8 399.3
Apr 212.2 115.1 97.1
Mar 183.8 53.0 130.8
Feb 100.6 84.6 16.0
Jan 241.7 221.4 20.3
.
2002
Dec 136.8 91.1 45.7
Nov 124.8 96.8 28.0
Oct (144.2) (123.8) (20.4)
Sep 64.1 94.0 (29.9)
Aug 39.1 45.3 (6.2)
Jul 38.9 58.5 (19.6)
Jun (137.1) (35.2) (101.9)
May 24.8 (35.2) 60.0
Apr (68.46) (20.8) (47.6)
Mar 115.4 91.9 23.5
Feb 485.1 415.1 70.1
Jan 137.4 74.5 62.9
.
2001
Dec 60.7 55.1 5.6
Nov (14.1) (6.5) (7.6)
Oct 163.3 118.9 44.4
Sep (74.6) (52.8) (21.8)
Aug 56.4 54.9 1.5
Jul 91.2 156.5 (65.3)
Jun 239.9 180.9 59.0
May 170.1 196.4 (26.3)
Apr 426.5 369.1 57.4
Mar 408.1 452.8 (44.7)
Feb 366.3 363.4 2.9
Jan 980.0 921.1 58.9
.
2000
Dec (135.8) (123.3) (12.4)
Nov 195.3 201.2 (5.9)
Oct (47.6) (59.2) 11.6
Sep 47.8 31.2 16.6
Aug 281.1 300.6 (19.5)
Jul (313.7) (317.3) 3.6
Jun (212.6) (218.1) 5.5
May 57.9 110.9 (53.0)
Apr 593.4 617.2 (23.8)
Figures in parentheses indicate net sales.
End

Harkishan Singh Surjeet passes away

New Delhi, August 01: The Veteran CPI (M) leader Harkishan Singh Surjeet passed away at the age of 92 after prolonged illness. His demise came about at 1.35 pm on Friday at the Metro Hospital in Noida. Surjeet, better known as the ‘Chanakya’ of Indian politics, died due to multiple organ failure compounded by a sudden cardiac arrest.

Surjeet was infact not keeping well for long and had been in & out of hospitals for the past six months. He was even in comma in May but recovered and was recuperating at his Teen Murti Lane residence in Delhi, before being shifted to hospital again on July 07 with complaints of lung infection.

Dr Purshottam Lal of the Metro Hospital confirmed that the immediate reason for his demise was a massive cardiac arrest that was linked to the failure of other organs as well. As per Dr Lal Surjeet was not conscious during the last moments and passed away peacefully.

Surjeet’s death can be termed as the end of an era as he was one of the chief architects of the coalition experiments involving secular forces in the country. However, he was not into active politics for the last two years due to ill health.

Even within his own party he was considered in very high regards; in league with CPM patriarch Jyoti Basu. He was indeed one of the stalwarts of the Left movement in India and was the general secretary of the party from 1992 to 2005.

Surjeet was instrumental in forming a number of anti-BJP coalitions in the 1990s and for ensuring Left support the present UPA government.

Many times, including after the 2004 Lok Sabha election and even during the 1996-1998 United Front government, his role has been that of a cunning Chanakya of parliamentary politics; mending and sewing broad coalitions.

With his health declining, Surjeet was, for the first time, not included in the CPI(M) Polit Bureau in early April 2008. But considering his stature, he was instead designated as Special Invitee to the Central Committee.

Expressing grief over his demise CPI leader D Raja said, “It’s very sad to hear that Surjeet is no more. He was an outstanding comrade as he knew how to mobilise the people towards the ideology.”

Govt to auction 3G spectrum

New Delhi, Aug 01: The government Friday set the ball rolling for introduction of next generation (3G) mobile services, as also mobile number portability that would allow users to switch operators while retaining existing numbers.

The new guidelines for 3G spectrum, released today, provides for a reserve price for availing of radio frequency.

The price for a 2x5 MHz block of spectrum for Mumbai and Delhi and category-A shall be Rs 160 crore and for Kolkata and category-B Rs 80 crore and for category-C Rs 30 crore.

Government has also decided to allow up to 10 players in the 3G space, including eligible foreign players.

The guidelines for Mobile Number Portability, also released by the government today, proposes dividing the country into two zones for implementing the scheme that is prevalent in most mature telecom markets.

The 3G spectrum will be auctioned in 450 MHz band, 800 MHz and 1,900 MHz and the guidelines exempt operators from paying any annual fee in the first year of operations. Operators, however, shall be liable to pay an annual spectrum charge of one percent of AGR after a period of one year.

All those who hold a Unified Access Service Licence or those who are otherwise eligible for obtaining UASL as per DoT guidelines of December 14, 2005 would be eligible to apply for 3G radio waves.

As per the guidelines, "the applicant company shall have a minimum paid-up capital of Rs 10 crore on the date of application. Foreign equity shall be subject to extent guidelines and regulation. However, equity of foreign partner in the company shall not be less than 26 percent."

On MNP front, the guidelines said a one time non- refundable entry fee of Rs one crore is required to be paid for securing the service license.

"No single company/legal persons/MNP license applicant or MNP licensee company, either directly or indirectly, will have any equity in any of the telecom service provider and vice-versa," the guidelines said.