Euro crisis impacting growth, to hurt exports: Pranab
New Delhi: Finance minister Pranab Mukherjee today said the euro zone crisis is impacting the country’s growth and will hurt exports in coming months.
“The recent development in the euro zone has heightened uncertainty in financial markets. India’s short-term growth prospects have been adversely impacted,” he said while inaugurating the India International Trade Fair (IITF) here.
The minister further said the tendency of certain developed countries to adopt protectionist measures during a downturn would have a bearing on India’s exports, which have reported impressive growth so far this year. (PTI)
Reliance Comm talking to cos for tower tenancy
Mumbai: Mobile phone carrier, Reliance Communications, said it was talking to other telecom companies to offer its telecom tower on lease, a senior company official said on Monday.
Syed Safawi, president & chief executive officer (CEO) of Wireless Business unit, did not elaborate on the companies in a conference call with analysts.
He also said the company, controlled by billionaire Anil Ambani, would welcome the entry of Reliance Industries run by his elder brother into the telecom sector.
“If there is a some responsible player going to expand the data pie, its very good news,” Safawi said. (Reuters)
Kingfisher pushed to raise $160 mn equity
Mumbai: Kingfisher Airlines has been asked to raise $160 million in equity by creditors and the cash-strapped carrier is considering a proposal to sell property to help pave the way for debt restructuring, a senior banker said on Monday.
A file photo of Vijay Mallya
“We have asked them to come up with some fresh funds,” said Hemant Contractor, managing director (MD) of State Bank of India (SBI), which leads a consortium of 13 lenders to the airline.
“One thing that is being discussed is selling some of its assets. If they do it, it is good or they would have to find some other means,” he told reporters on the sidelines of a World Economic Forum (WEF) event in Mumbai.
The Economic Times newspaper earlier reported Kingfisher’s board, which is meeting on Monday to finalise its quarterly results, would consider proposals to more than halve the company’s $1.3 billion debt.
The proposals also include converting loans from its parent company into equity and changing the terms under which it leases aircraft, it said. (Reuters)
SC questions a non-IAS officer’s appointment as UP cab secy
New Delhi: Questioning the appointment of Shashank Shekhar Singh, who is not an Indian Administrative Service (IAS) officer, as Uttar Pradesh cabinet secretary, the Supreme Court on Monday said there have to be rules and regulations for such crucial postings.
A bench of justices B. S. Chauhan and T. S. Thakur said people like Sam Pitroda, who have expertise in technical field, are appointed as adviser but for the posts like that of cabinet secretary, there have to be proper procedures.
“If someone is an expert in a field like computer and who has done exceptionally well in his field, like Sam Pitroda, he can be appointed as adviser but for these posts (cabinet cecretary etc), there have to be rules and regulations,” the bench said. (PTI)
SEC wants to question Rajaratnam, his brothers in Gupta case
New York: United States (US) regulator Securities and Exchange Commission (SEC) wants to question convicted hedge fund founder Raj Rajaratnam, his brothers as well as Goldman Sachs board members in the insider trading lawsuit it has filed against former Indian-American, McKinsey head, Rajat Gupta.
SEC lawyer, Kevin McGrath, has told US district judge, Jed Rakoff, the regulator wants to call as witnesses Rajaratnam, “one or both” of his brothers as well as “current and former employees” of Goldman Sachs and Proctor and Gamble at Gupta’s civil trial, which is scheduled to begin on 1 October 2012.
“We have a long list of witnesses including the defendant and one or both of Rajaratnam’s brothers,” McGrath said. (PTI)
Natural disasters weigh on UK insurers Catlin, Hardy
London: Insurers, Catlin and Hardy Underwriting, said natural disasters this year, including the earthquake and tsunami in Japan, have weighed on their businesses, leaving them to hope for better trading conditions in 2012.
Catlin said on Monday that losses so far from the natural disasters had amounted to $670 million.
Hardy, which in August posted an interim loss of 17 million pounds ($27 million), said that while its expectations for its full-year results were unchanged, there was still uncertainty over the impact of the year’s earthquakes and floods. (Reuters)
Italy seen clearing bond sale but challenges ahead
Milan: Italy should manage to push through a closely watched bond sale on Monday, albeit at a record yield of around 6%, as the appointment of an emergency government brings some respite from market pressures that sent funding costs soaring last week.
Saddled with a towering debt, the euro zone’s third-largest economy came close to financial disaster last week, when bond yields topped the 7% threshold that could shut it out of debt markets and in the past triggered international bailouts of Ireland and Portugal.
Italy has always been able to meet sufficient demand at its debt auctions since coming to the fore of the euro zone sovereign crisis in early July, but yields have steadily risen towards levels deemed unsustainable over the long term. (Reuters)
South Korea pledges to step up spending for rest of year
Seoul: South Korea will aggressively execute fiscal spending plans set for the rest of the year in response to the slowing global economy, the finance ministry said on Monday, marking a shift in its relatively tight fiscal stance.
“The government had put the (fiscal policy) priority on price stability during the first half, but has decided to execute as much as fiscal spending as planned due to increased economic uncertainties,” the ministry said in a statement.
South Korea has a long tradition of keeping actual budget spending short of plans and last year achieved a fiscal deficit worth 1.1% of annual gross domestic product (GDP), far smaller than the planned 2.7%.
The move does not indicate the government is abandoning its drive to keep fiscal policy relatively tight to regain fiscal surplus by 2013, but underscores its concerns about a global slowdown. (Reuters)
China shares end up 1.9%, boosted by car stocks
Shanghai: China’s main stock index ended up 1.9% on Monday at a two-and-half-month high, led by auto shares after China said it was considering relaxing restrictions on purchases of clean-energy vehicles to encourage drivers to switch to green cars.
The benchmark Shanghai Composite Index closed at 2,528.7 points, after a 1.9% fall over the week last week.
Shares in BYD Co Ltd , a Chinese carmaker backed by US billionaire Warren Buffett, jumped to its 10% daily limit on the Shenzhen stock exchange. (Reuters)
APEC leaders commit to green trade liberalization
Honolulu: Asia Pacific leaders, including US and China, committed on Sunday to slash tariffs on environmental goods and services in a bid to boost trade in products that cut fossil fuel use and reduce pollution.
The green trade initiative represented an achievement for US President Barack Obama at the Asia Pacific Economic Cooperation (APEC) summit in Hawaii, overcoming reservations from China - a major manufacturer of solar power products. (Reuters)