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Presented By :3/23/12 Mohil Srivastava

China ready to play the savior for debt-hit Europe

3/23/12

China was ready to play a bigger role in supporting debt-hit Europe, but stopped short of revealing either the scale of likely investment or how Beijing would back the proposed bailout funds. Europe considers the creation of a 500 billion European Stability Mechanism bailout fund.

Mr. Wen told that China would likely support the EU either through the International Monetary Fund (IMF) or through the proposed bailout mechanisms.

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Chinas Viewpoint

Europe is China's biggest trading partner and a key destination for China's export sector, which sustains millions of jobs. A study released this week showed that China had doubled its investment in European firms over the past year, even as investment in the United States fell.

China, however, faced a tightrope walk in calibrating its response to the euro zone crisis.

China was unlikely to directly press the EU on either the arms embargo or granting market economy status, he said, which was likely to anyway be granted in 2016.

Probably what China wants to achieve [by helping the EU] is to have a bigger voice in the IMF.
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Air India loses sole right to fly overseas

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Desperate Times

With Air India in deep financial crisis, private airlines face a lot of problem in getting rights to fly abroad. This has resulted in fewer international flights by Indian carriers. The Government itself admitted in the Lok Sabha on December 14, 2011, that in 2010-11, Indian carriers utilized only around 20 per cent of the total entitlement. India has ASAs with 109 countries. The Ministry would regularly review the bi-laterals to promote global connectivity keeping in mind the demands by the Indian carriers, international passenger traffic, trade, commerce and potential global and regional issues.

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Moody's cuts ratings of six European countries

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Italy, Malta, Portugal, Slovakia and Slovenia all had their ratings cut by one notch, with a negative outlook, while that of Spain was cut by two notches to A3, with a negative outlook.

Britain, Austria and France could lose their triple A ratings, as rating agency Moody's placed the countries on negative watch, while lowering the ratings of six other Euro Zone nations.

Moody's actions follow those of Standard & Poor, which downgraded nine.

Within Europe, the only countries not to be placed on a negative watch by any of the ratings agencies are Germany, Denmark, Sweden and Norway.

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Market Reactions

Market reaction to the downgrades which came as little surprise to most investors were muted. The pound fell 0.4 per cent against the dollar, while the euro fell 0.2 per cent.

Downgrades were altogether less controversial than those of S&P, whose downgrade of France provoked a furious reaction in France.

Downgrade of Portugal to below investment status led to a large spike in yields and a fear that it was going to be the next Greece.

Moody's actions come ahead of a crucial meeting of Euro Zone finance ministers on Wednesday, at which a decision is expected to be made about whether or not to give Greece a second 130-billion bailout package.

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61 Companies to Delist from Stock Exchanges

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61 Companies are planning to delist themselves from NSE/BSE

Companies that announced delisting plans recently include Chemplast Sanmar, MNCs such as Alfa Laval India and acquired firms such as Patni Computer and UTV Software.

Some companies seem downright disturbed with investors' refusal to view their business in favourable light.

Example - FMCG major Nirma, after diversifying from detergents into chemicals and announcing its entry into pharmaceuticals and cement, saw its stock valuation pegged down in the markets to trade at a big discount to other FMCG players.

Quite a few delisting moves have also been triggered by the minimum public shareholding norm stipulated by the Government in 2010, which cap the promoter holdings for listed companies at 75 per cent. 3/23/12

After this new rule, multinational firms with high promoter stakes have been quick to announce buyouts that make their Indian arms private. Example - Alfa Laval Corporate AB Sweden

In some cases, delisting proposals have followed a change in the ownership of the company. Example UTV Software by Walt Disney & Patni Computers by iGate Global.

In many of these cases, relatively low market levels and a weak rupee have made for an opportunity to acquire the domestic company at a low valuation.

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SEBI regulations stipulate that a company seeking to delist can only buy back shares at the price set through a reverse book-building process. That is, investors can bid the price at which they will part with their shares.

Now, with investors demanding a hefty premium in some cases, stock prices of companies tipped to be delisting candidates have soared in the bearish market of the past year. With a 149 per cent gain, Alfa Laval India has been a top performing stock in the last one year. UTV Software's share has more than doubled, even as the Sensex has made a gain of less than 1 percent.

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Dassault, Reliance ink MoU for collaboration in defence sector

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French company Dassault Aviation has signed an agreement with Reliance Industries for partnering in defense and homeland security sector. The move comes just days after Dassault bagged the $15 billion order from Indian Government for 126 Medium Multirole Combat Aircraft (MMRCA) There is a possibility of the two companies working on the MMRCA deal. Under the rules, Dassault needs to reinvest 50 % of the revenues it generates from the deal back into India. Dassaults needs a local partner for that.

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Blast rips through Israeli Embassy car in Delhi

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4 people got injured as a blast rips through the car belonging to the Israeli Embassy in Delhi. Tal Yehoshua Koren, an embassy official sustained serious injuries when a bomb fixed to her Innova car went off. The blast site was less than 500 metres from Prime Minister Manmohan Singh's official residence. The diplomat, who was travelling on the back seat, sustained serious injuries as the blast ripped through the vehicle's metal body.

Her driver, Manoj Sharma, lost control of the car after the explosion, and was injured when it crashed into a road divider. 3/23/12

Delhi Police Commissioner B.K. Gupta said eyewitnesses confirmed that a device had been affixed to the vehicle by a motorcyclist who passed the car. Also on Monday, police in Tbilisi, Georgia, defused an identical magnetic explosive device shortly before the attack. Interestingly, similar devices have been used to assassinate Iranian nuclear scientists in attacks in Tehran last year. This attack was attributed to Israel's secret service - Mossad. Israel's Prime Minister Benjamin Netanyahu blamed Iran and the Lebanese group Hizbollah for the attack and vowed revenge. no

Intelligence sources in New Delhi said there had been 3/23/12 specific intelligence of involvement of any country.

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$500-billion stashed away abroad by Indians : CBI

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Some Facts & Figures :

Rs. 24.50 lakh crores or $500- billion is the first time estimate of CBI Director, Mr. A.P. Singh was made for the Inauguration of First Interpol Global Programme on Anti- Corruption and Asset recovery border flow of money from criminal/corrupt activities is $1.5 trillion annually 40 billion of this is accounted by bribes paid to public officials in developing countries.

Estimate

Cross$

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Implications:
Mr.

Singh admits that political unwillingness is the major impediment in bringing money back home. in legal system, high cost in coordinating investigations, inadequate international co-operation and back secrecy laws are among other reasons. This is an important statement because CBI is often used by the current UPA Govt. to sweep the trash under the carpet.

Differences

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Security hurdle leaves port project bidders all at sea.

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Some Facts & Figures:

The

port sector is finding it difficult to sail past the Home Ministrys Security Clearance. like Adani port SEZ, Gammon, Punj Lloyd, Marg, IVRCL, Jindal, Lanco and Indian Port Terminal are facing problems on account of denial or withholding of security clearnace. of these firms are hit because their consortium partners have not got security clearance.

Companies

Some

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Implications:
The

denial affect the expansion projects of several ports including Vizag and Tuticorin. will delay the completion of project which in turn will adversely affect the business from these ports. of these companies are listed and also have stakes in operational ports. of these companies have got clearance from Ministry of External Affairs and Defence.
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This

Some All

Blackberry sets up server in India

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Implications:
5,000

corporate servers to be monitored for emails routed through Blackberry Enterprise Servers. Motorola, Microsoft will have to provide similar solution. giants Yahoo, Gmail advised to keep emails from India in local servers. and MHA have been trying to deal this issue for a very long time. This is most likely to resolve all the security concerns India had with the operation of RIM.
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Nokia,

Internet Dot