BackOpening Bell 22 Feb | Global markets continue to drift lower
Tata Motors, AirAsia chief Tony Fernandes may set up a JV to make and sell Tata vehicles in Malaysia
Premium(Mint)
Mumbai: Global markets continue to inch lower. Overnight, US stocks fell as concerns grew that the Federal Reserve may slow the pace of stimulus.
According to Reuters, two top Federal Reserve officials signalled support for scaling back the US central bank’s aggressive bond-buying program. While the S&P 500 lost 0.63% to 1,502, Asian markets opened on a weak note.
Japan’s Nikkei lost 0.86% to 11,212 as data from Europe signalled recession in the region. The euro zone slipped deeper into recession in the last three months of 2012. Economic output in the 17-country region fell by 0.6% in the December quarter. Read The New York Times report.
Brokerage house JPMorgan Chase has warned that emerging-market stocks may face “significant correction." Adrian Mowat, chief Asia and emerging-market strategist at JPMorgan in a report said the fundamentals and technicals of emerging markets are weakening. Read the Bloomberg report.
Back home, Tata Motors and AirAsia chief Tony Fernandes may set up a joint venture to make and sell Tata vehicles in Malaysia, reported Mint. Among the vehicles proposed to be sold through a facility to be set up in Malaysia are the Nano, light commercial vehicles-Ace, Magic and Winger.
The two-day strike by trade unions has worsened the fuel shortage in India’s power sector, reported Mint. NTPC Ltd has witnessed a power generation loss of 600 megawatts (MW) at the Farakka power plant in West Bengal. Those at Kahalgaon and Simhadri lost 200MW each.
Keep an eye on shares of Coal India Ltd. The company may fall short of its annual production target by 12 million tonnes (mt) in the current financial year, reported Business Standard. From an annual production target of 464 mt, the company revised annual output target to 452 mt.
In line with its objective to monetise non-core assets, Network18 Media and Investments Ltd has received the board’s approval to divest its stake in business directories—Yellow Pages and ASK Me. Read more.
Etihad Airways is bargaining hard with Jet Airways (India) Ltd. According to Business Standard, Etihad Airways is asking for an option to buy upto 49% stake and board representation in sync with its shareholding.
In another report, some engineers at Jet Airways are on a “go-slow" mode following the failure of talks over wage hikes and arrears. According to the report, the engineers’ move comes weeks after technicians registered their protest on wages.
Finally, here is the Reuters pictorial composition of the Pope’s summer residence. On 28 February, the Pope will go to the summer retreat at Castel Gandolfo, south of Rome, where he will stay for around two months.
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