Mumbai: It’s a big day for Europe. The future form of the European Union will be decided today. According to a Reuters report, EU leaders have broadly agreed on new fiscal rules enshrining tougher budget discipline.
While the final deal will be known later in the day, there are enough dissenting voices to rock the summit. According to a The Telegraph report, the Finnish parliament ruled against the treaty changes proposed to the European Stability Mechanism. Finland, which reportedly has the backing of the Netherlands, wants the decision made by the European Stability Mechanism to remain unanimous and not changed to the majority as agreed by France and Germany.
Meanwhile, the European Central Bank dashed hopes of a bolder policy action. The bank, which cut benchmark interest rates, dampened speculation that it might drastically scale up the purchases of the Euro area government bonds.
The disappointment sent the US stocks lower. The S&P 500 at 1,234 is down 2.11% on selling in banking and financial services stocks.
Asian stocks are also trading lower. Japan’s Nikkei at 8,508 is down 1.80% on Euro area concerns.
Back home, SEZ developers are allowed to dilute project equity, reports Business Standard. According to the report, department of commerce and industry has allowed developers to sell their stake to other entities, including foreign ones. The development is good news for SEZ developers as they can bring in fresh equity into the projects.
Keep an eye on companies with significant merchant power capacities. According to The Economic Times report, GAIL has increased prices of the gas delivered to the merchant power producers. The company is now reportedly charging market rate of $3.5 per million metric British thermal units.
Reliance Capital is in talks to sell a 26% stake in its general insurance business. It is talking to US-based insurer Travelers Companies Inc. and Samsung Fire & Marine Insurance Co. Ltd among others.
DLF is expecting to make a ‘couple of big ticket’ sales in the current financial year. According to the Business Standard, the company is looking to close at-least two-three big ticket sales before the current financial year ends.
The new promoter of Cairn India, Vedanta Resources, is aiming to double the crude oil output from Cairn India’s Rajasthan block, according to The Economic Times.
In a setback to GMR Infrastructure, a civil court in Maldives has ruled against the airport operator from collecting development fee. The development comes after the local political party filed a case against the consortium led by GMR, challenging its right to collect development fee..
Piramal Healthcare has identified IT-enabled security systems, infrastructure consulting and portfolio investment as the areas of business that it intends to enter in the future. These sectors are in addition to insurance and infrastructure finance.
Dish TV is raising fresh money to invest in technology and fund expansion. According to the Business Standard, the company is looking to raise as much as Rs 1,000 crore. It is not yet clear how much equity the company is willing to dilute.
Finally, the George Washington Bridge, the busiest vehicular bridge in the world, is going for an overhaul. The vertical suspension ropes on the bridge, aged 80 years, will be replaced for the first time in its history. Read The New York Times report.