Breaking News & Stocks

Jet Airways expands service in Canada

Toronto, Feb 29: With the launch of daily code share service between Jet Airways and Air Canada offering facilities like convenient connection options on a single ticket, passengers will now get an increased access to major cities in both the countries.

"The code share service launched yesterday offers customers convenient connection options, one-stop check-in and seamless baggage transfer to final destination, on a single ticket," said Daniel Shurz, vice president, network planning of Air Canada in a statement.

"We now offer our customers more choice and convenience when travelling to India, in cooperation with our partner, Jet Airways," he said.

"With the addition of service to Chennai, and expanded options of travelling to India via London, in addition to Frankfurt or Zurich with our star alliance partners, the customers benefit from a vast choice of daily, year-round flights to and from the communities we serve across Canada, and four major destinations in India," Shurz said.

Air Canada in cooperation with Jet Airways has expanded its network to India from three to four destinations, and significantly increased access to India from across Canada. With the addition of Chennai, Air Canada now serves four destinations in India on a code share basis: Delhi, Mumbai, Bangalore and Chennai.

Air Canada customers travelling to India will now benefit from the non-stop flights to London Heathrow from seven cities across Canada (Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal and Halifax) which connect in London to Jet Airways operated flights to Mumbai.

In addition, flights from Toronto to Chennai via Brussels, operated by Jet Airways, are available from Air Canada on a code share b

Bank stocks plunge on loan waiver announcement

Mumbai, Feb 29: Bank stocks fell 3 percent to 9,763.90 points in late afternoon trade on Friday after the Finance Minister P Chidambaram announced a loan waiver for farmers.

The biggest loser among the banks was state-run Bank of India, which was down 3.28 percent at Rs 339 at 1250 hrs on the Bombay Stock Exchange.

Country's largest lender State Bank of India dropped nearly 2 percent and was trading at Rs 2,000. The largest private lender ICICI bank dipped 2.63 percent and was trading at Rs 1,074.

Punjab National Bank fell 2.63 percent, while Union Bank dropped 2.67 percent.

Chidambaram announced a Rs 60,000-crore relief package for farmers, including complete waiver of loans given to small and marginal farmers.

He proposed to waive agricultural loans given by scheduled commercial banks, regional rural banks and cooperative credit institutions to farmers up to March 31, 2007 and due for December 31.

RBI employees call strike in RBI offices on March 12

Kolkata, Feb 29: The All India Reserve Bank Employees Association (AIRBEA) on Friday called a one-day strike in RBI offices in the county on March 12 to press for filling up of vacancies in class three posts.

The secretary of the AIRBEA Sudipata Saha Roy said the strike has been called also to demand a stop outsourcing of RBI jobs and 'against discriminatory treatment of base level staff'.

He told agencies that there were 5,000 vacancies for a long time in class three posts in RBI offices all over the country.

As of 3 minutes ago
Wall Street Slides in Early Trading
Stocks fell in early trading Friday after disappointing earnings from American International Group Inc. and Dell Inc. underscored the challenging economic environment in which companies now operate.

Dollar Falls Again, Euro Zone Divided
Friday February 29

Dollar Keep Dropping, Spurring Some Concerns in Europe About Jobs, Exports

BERLIN (AP) -- The dollar kept spiraling lower Friday, hitting another new low against the euro, as worries about the U.S. economy depress the currency and raise thorny issues in Europe about how to cope with the growing gap.

The euro flew past its previous high to hit $1.5238, before subsiding later in the day to $1.5192. The euro topped $1.50 this week for the first time since its 1999 introduction, then surged above $1.51 after markets took comments from Fed Chairman Ben Bernanke as a sign that yet more U.S. rate cuts are on the way.

"The dollar looks set to finish the month with yet more downside pressure being heaped upon it," said Gary Thomson of CMC Markets in London.

That has some of the United States' large trading partners in Europe considering their options, and drawing two very different reactions: alarm from the French, equanimity from the Germans.

Germany's manufacturing giants are keeping an eye on the record-high euro, but are also planning for the future, devising new strategies to mitigate the effect of the strong currency on their bottom line.

In France the concern is more palpable, with politicians calling for the European Central Bank to intervene to put the brakes on the euro's surge. Budget minister Eric Woerth this week called the "very high" euro "a handicap for our exports."

Planemaker Airbus has groused that for every 10 euro cents the common currency gains against the dollar, the company will lose as much as 1 billion euros ($1.5 billion) -- and that adds up. Given that the euro has risen from $1.4726 on Jan. 2 to above $1.52, the cost to Airbus would be 500 million euros ($758.4 million) so far this year.

French President Nicolas Sarkozy even attacked the European Central Bank as part of his election campaign and has continued to harp on the ECB to do more. The bank's president, Jean-Claude Trichet, is steadfast in maintaining the institution's independence, and has stressed inflation, not the euro, as the looming problem.

In Germany, there's a mild concern about the euro's record rise of late -- but most believe that it would take another 10-cent climb before panic was to set in.

"Once it reaches $1.60 it becomes painful, not least because the time periods are expiring for which companies have hedged themselves against currency fluctuations," said Hans-Werner Sinn, the president of the Munich-based Ifo institute, which conducts monthly surveys on business and investor sentiment.

He called that level not so much a threshold but a guideline. But that's not to say that German firms aren't feeling the pinch particularly when it comes to their currency hedging.

"To a large extent, short-hedging positions are running out and the effects of the euro are being felt," said Sinn.

The euro zone's biggest companies, and some mid-sized ones, too, all practice currency hedging, which entails purchasing financial contracts on the open market to lock in exchange rates to avoid any pitfalls in the event of big swings.

Automaker BMW AG -- which employs 4,700 people at its plant near Spartanburg, S.C., where it produces the X5 SUV and the Z4 Roadster -- announced this week it would cut another 5,600 jobs in Germany as part of its cost-cutting efforts. It said it could not rule out more if the euro keeps climbing.

And Volkswagen, AG, Europe's biggest automaker in terms of sales, has said it is looking at building a new plant in the U.S. or elsewhere -- in part to avoid the high costs of the euro. Similarly, Porsche AG and Daimler AG are looking at new plants in countries not tied to the euro or the dollar, in places like India and China, to reduce costs and avoid the problems linked to the dollar's decline across many main currencies.

The dollar dipped to 104.07 Japanese yen on Friday from 105.36 yen in New York the night before, hovering around three-year lows. The British pound fell to $1.9841 from $1.9926.

As of 14 minutes ago
Stocks Fall Sharply on Economic Worries
Stocks fell sharply Friday after a series of depressing economic and corporate reports as well as high oil prices stoked concerns about the health of the economy. The major stock indexes fell more than 2.5 percent and the Dow Jones industrials lost 315 points.

Investors were unnerved by disappointing quarterly results from American International Group Inc. and Dell Inc. And an index of regional business activity that Wall Street regards as a good indicator of a broader report due next week had its weakest showing in more than six years.

Oil prices continued to stir concern about inflation after pushing past $103 per barrel for the first time.

While stocks made sharp gains in the first three days this week even amid somewhat lackluster economic readings, the litany of concerns investors succumbed to Friday reflected the undercurrent of uncertainty that has kept Wall Street on edge for months.

"We really had to face a plethora of negative news," said Art Hogan, chief market strategist at Jefferies & Co. in Boston. "We just ran out of gas this week."

Hogan said while stocks held up admirably early in the week amid an uneven flow of economic news, they couldn't hold their gains after the latest round of weak economic signals.

The Dow fell 315.79, or 2.51 percent, to 12,266.39.

Broader stock indicators also tumbled. The Standard & Poor's 500 index lost 37.05, or 2.71 percent, to 1,330.63, and the Nasdaq composite index declined 60.09, or 2.58 percent, to 2,271.48.

For the week, the Dow lost 0.93 percent, while the S&P 500 gave up 1.66 percent and the Nasdaq fell 1.38 percent. The week's losses would have been steeper had stocks not risen early in the week on hopes many of Wall Street's credit troubles were easing and after IBM Corp. announced a sizable stock repurchase plan.

Friday's losses sent stocks lower for February, the fourth straight month of declines.

Bond prices rose sharply as stocks lost ground. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.53 percent in late trading from 3.67 percent late Thursday.

The Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," jumped 12.8 percent.

The dollar hit another low against the euro and slid to a three-year record against the yen. The fall in the dollar has sent prices of commodities such as oil and gold soaring.

Light, sweet crude jumped to a record of $103.05 in early electronic trading before settling down 75 cents at $101.84 a barrel on New York Mercantile Exchange.

Insurer AIG announced a $5.29 billion quarterly loss largely because of steep declines in the value of a portfolio of contracts known as credit default swaps. Such contracts pledge to cover missed payments on debt. The company's losses caught analysts off guard, as many had expected the company to turn a profit.

While each of the 30 stocks that comprise the Dow industrials showed declines, those of AIG were the steepest. The stock fell $3.29, or 6.6 percent, to $46.86.

Computer maker Dell posted a 6 percent decline in its quarterly profit, falling below analysts' expectations, and warned that its business could suffer from reduced customer spending. Dell slid 97 cents, or 4.7 percent, to $19.90.

Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., said AIG's report left investors uneasy about the prospect of further sizable write-downs of bad debt.

"Every time we get to a point where we think we've finished, another report comes out and says we're not done yet," he said.

Schultz expects Wall Street will continue to proceed with "fits and starts" until investors sense that the bad debt from faltering mortgages has been accounted for and that balance sheets are on the mend.

Some relief for the ailing bond insurance industry is on the way, though the news didn't dislodge Wall Street's glum mood Friday. Billionaire investor Wilbur Ross agreed to invest up to $1 billion in Bermuda-based reinsurer Assured Guaranty Ltd. Assured Guaranty rose $2.87, or 12.6 percent, to $25.65.

In economic news, the Chicago purchasing managers index for February came in at 44.5, a weaker reading than the 48.5 that had been expected, according to Dow Jones Newswires. The report painted a dreary picture of the manufacturing sector and is seen as a precursor to the national Institute for Supply Management report expected Monday.

A government report showed that personal spending, when stripping out the effects of inflation, stood unchanged in January. The findings brought further worries that consumers are more hesitant to reach into their wallets amid the uncertainties facing the economy.

A parade of economic worries has weighed on consumer as well. The Reuters-University of Michigan final consumer sentiment reading for February came in at 70.8, better than the figure of 69 that had been expected. Still, the index was well off the level of 78.4 seen in January.

Declining issues outnumbered advancers by roughly 7 to 1 on the New York Stock Exchange, where consolidated volume came to 4.23 billion shares compared with 3.76 billion shares traded Thursday.

The Russell 2000 index of smaller companies fell 19.54, or 2.77 percent, to 686.18.

Overseas, Japan's Nikkei stock average closed down 2.32 percent. Britain's FTSE 100 lost 1.36 percent, Germany's DAX index fell 1.67 percent, and France's CAC-40 gave up 1.53 percent.

The Dow Jones industrial average ended the week down 114.63, or 0.93 percent, at 12,266.39. The Standard & Poor's 500 index finished down 22.48, or 1.66 percent, at 1,330.63. The Nasdaq composite index ended the week down 31.87, or 1.38 percent, at 2,271.48.

The Russell 2000 index finished the week down 9.25, or 1.33 percent, at 686.18.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 13,455.96, down 207.07 points, or 1.52 percent, for the week. A year ago, the index was at 14,271.61.

ICICI CEO expects no Indian rate cuts

New York, Mar 01: The chief executive of ICICI Bank Ltd, India`s biggest private-sector bank, said on Friday he did not expect the country`s central bank to ease interest rates soon.

"The policymakers have concentrated on inflation as the key target," Chief Executive K V Kamath said in an interview at the New York Stock Exchange, where the bank is also listed.

"Given their signals in terms of what`s happening around us, I can`t see them easing at this point in time," said Kamath, who was in New York to open the bank`s first US branch. "Inflation watch is called for."

India`s inflation rate, which in late October was below 3 percent, began inching up in recent weeks due to rising food prices.

Data on Friday showed annual wholesale price inflation in mid-February jumped to an eight-month high of 4.89 percent.

To combat inflationary pressures, the central bank kept the short-term lending rate steady at 7.75 percent in the quarterly policy review last month, but said commercial banks could lower their rates.

Some banks have since cut interest rates. Government-run State Bank of India, the country`s biggest lender, lowered its rates twice this month.

But Kamath said ICICI, which with assets of about USD115 billion is India`s second-largest bank, would wait and watch.

"Till we have clear signals, we will keep rates steady," Kamath said. "It would need to be a brave person to cut rates in the last quarter of the year."

"As of now I can`t see an easing despite liquidity conditions remaining easy," he said.

Kamath said the liquidity conditions in India allowed for companies there to find money to fund growth, but the turmoil in international credit markets would affect their global aspirations.

"Demand from India -- for global acquisitions and global moves by Indian companies -- remains strong," Kamath said. "But whatever happens out of India will have to be tempered by the ability to access money globally."

ICICI raised USD6.7 billion in international bond markets in 2007 and aims to raise a similar amount this year for purposes such as financing the global expansion plans of Indian businesses. But Kamath said it had not borrowed internationally this year as it waited for market conditions to improve.

"We are not in a hurry," Kamath said. "The global situation ... should ease in the next six months or so."

Kamath also said the bank`s plan to list ICICI Securities, its investment banking and broking unit, was still on track despite market turmoil. ICICI Bank announced plans last month to sell up to 15 percent of the unit, which is the country`s largest online player in retail broking.

Kamath declined to comment on the merits of a move this week by rival HDFC Bank to buy smaller Centurion Bank of Punjab for USD2.4 billion in shares.

The merger would create a bank with 1,148 branches, surpassing ICICI`s 955 branches, although the combined loan book of about 870 billion rupees would be far smaller than ICICI`s 2.2 trillion rupees.

Kamath said ICICI did not have any acquisitions planned.

Maruti Suzuki Feb vehicle sales up 1.3%

Mumbai, Mar 01: India's biggest car maker, Maruti Suzuki India Ltd said on Saturday it sold 63,822 vehicles in February, up 1.3 percent from 62,999 units last year.

In a statement, Maruti said it sold 59,311 units in the domestic market, up 0.4 percent from 59,095 units a year earlier. Its exports rose 15.5 percent to 4,511 units from last year's 3,904 units.

Maruti, which has nearly half the Indian market with such popular models as the Alto and the Swift hatchback, is 54.2-percent-owned by Suzuki Motor Corp.

40 dead in Pak bomb blast

Islamabad, Mar 01: A suicide bomber killed at least 38 people in an attack on a police funeral in northwest Pakistan on Friday, intelligence officials said.

Thirty-four bodies were received at the main hospital in Swat region, according to Mohammad Khan, the top doctor in the hospital in Saidu Sharif town, but intelligence officials said the toll had reached 38.

Khan said 50 more people were wounded.

More than 500 people had been attending the funeral for a senior officer who was among three police killed when their van struck a roadside bomb in another part of the province.