Opening Bell 8 August

Opening Bell 8 August

New Delhi: In case you were visiting Mars this weekend, here’s the top news: S&P has downgraded US’ rating citing blithering politicians and dithering policies. Here’s a list of other things to watch out for before trading starts:

Before the downgrade, there was a piece of good news. US payrolls rose more than expected in July.

Former Federal Reserve Chairman Alan Greenspan expects US stocks to continue their decline after S&P downgraded the nation’s credit rating. According to Greenspan, it will take ‘a while’ for the markets to bottom out.

Meanwhile, governments and policy makers are moving fast to stave-off another recession. The G-7 said that its members will inject liquidity and act against disorderly currency moves. Read more...-

Asian stocks and crude oil dropped on fears that the downgrade in US credit rating will disrupt the anaemic recovery in the global economy. The pace of fall, however, has reduced considerably.

Compared to 4% plus decline on Friday, stock markets in Japan and South Korea confined their losses to below 2%. While Nikkei is down 1.35%, South Korea’s Topix is trading with losses of 1.58%. The weak sentiment has hit the crude prices though. Brent crude at $106.71 a barrel is trading lower by 2.43%.

Sesa Goa is buying 51% stake in Western Cluster Ltd for 400 crore. A Liberian iron ore mining company, Western Cluster is estimated to have reserves of one billion tonnes of ore.

The supreme court has given conditional clearance to NMDC to operate two of its mines in Bellary. The clearance is expected to help NMDC produce one million tonnes of iron ore a month.

Maruti Suzuki will now be developing small cars for the Japanese market. Its parent company Suzuki Motor Corp. has been stepping up investments in research and development in India. The Japanese firm ultimately wants to move the entire small car development process to India.

Larsen & Toubro has received three international orders totalling $889 million. The orders includes won by the company include Abu Dhabi Gas Industries’ gas pipeline project worth $189 million and a $450 million project from Abu Dhabi National Oil Company.

Suzlon Energy has agreed to pay $490,000 as penalty for pollution violations in the US. Suzlon Rotor Corp., Suzlon Energy’s US based unit, agreed to a settlement in July for violations at its wind turbine blade manufacturing plant.

Finally, some busy Starbucks coffee shops in New York City have started blocking electrical outlets to discourage laptop users from hogging space. The decision, implemented in select Starbucks cafes, has been made to free up seats for other customers. Read more...