INFLATION SEEN EASING FURTHER IN JAN: REUTERS POLL

India's headline inflation rate is expected to have cooled to 6.60 percent year-on-year in January from 7.47 percent in December, helped by easing food prices , a Reuters poll showed. Inflation in India is significantly higher than in other major developing economies such as China, Russia and Brazil and limits the ability of policymakers to stimulate growth. Despite a series of 13 interest rate increases by the Reserve Bank of India inflation remained stubbornly above 9 percent for a year until December, when it slowed to a two-year low. Forecasts in a Reuters poll of 25 economists about the January wholesale price index, the main inflation gauge, ranged from a year-on-year rise of 6.10 percent to 7.70. Only a few of the forecasts projected the January figure at more than 7 percent. India's food price data, which was released on a weekly basis until February 2, last showed that the food price index declined 1.03 percent in the year to January 14. However, continued rises in the other components of the wholesale price index suggest that despite cooling food prices inflation would remain high. "The upward risks to inflation still persist as manufactured articles, as well as fuel group inflation, remain elevated," said Arun Singh, senior economist at Dun & Bradstreet. The RBI, which has shifted its focus to reviving growth after two years of battling inflation , cut the cash reserve requirements for banks by 50 basis points last month to ease tight monetary liquidity conditions. But the central bank left its key interest rate on hold, indicating that despite a shift in its monetary policy stance, the RBI is waiting until clear signs emerge that inflation is under control before it considers rate cuts. The RBI's tight monetary policy coupled with fragile global economic conditions and sluggish investment have resulted in a slowdown in Indian economic growth.

U.S. BANKS AGREE TO $25 BLN MORTGAGE SETTLEMENT

Five big U.S. banks will compensate homeowners for abusive foreclosure practices in a $25 billion deal billed as the largest federal-state settlement ever obtained. The settlement announced on Thursday at the U.S. Justice Department seals more than a year of negotiations after evidence emerged late in 2010 that banks robosigned thousands of foreclosure documents without properly reviewing paperwork. The Obama administration hopes the settlement will open a new avenue for housing relief because it will force the banks to write down mortgages at a time when roughly one in four borrowers owe more on their mortgage than their home is worth. The housing settlement gives President Barack Obama, as he seeks re-election in November, a chance to show his administration is willing to get tough with big banks to help ordinary Americans survive the pain of the nation's foreclosure crisis. For the banks, the deal resolves civil government claims over faulty foreclosures and servicing misconduct. Although the deal with 49 states and federal agencies is remarkable for its scope, the amount is miniscule compared to the declines in home values, and the banks still face a host of mortgagerelated lawsuits. "The bottom line about this settlement, is it's okay, it's a step forward, it's a step in the right direction. But let's not kid ourselves, there's a hell of a lot more that needs to be done," said Ira Rheingold, executive director of the National Association of Consumer Advocates. The deal does little to ease investor fears over banks' mortgage liabilities, industry analysts said.

"We believe any initial euphoria over the deal will quickly fade as investors realize the flood of additional mortgage-related litigation that the major banks face," said Guggenheim Partners analyst Jaret Seiberg in a note on Thursday. HOMEOWNER RELIEF Under the deal, roughly 750,000 borrowers who lost their homes to foreclosure between 2008 and 2011 can expect to receive a $2,000 cash payment. The banks would also provide $17 billion in principal reduction and loan modifications for delinquent borrowers who are facing foreclosure. The deal would also include $3 billion to help borrowers who are current on their mortgage payments but unable to refinance because they owe more than their homes are worth. "This agreement has more things to help homeowners than anything that we have seen before and probably ever will see again," said Iowa Attorney General Tom Miller, who led the settlement negotiations on behalf of the states. The U.S. Justice Department, the Department of Housing and Urban Development, and a handful of state attorneys general announced the deal at a news conference in Washington. Some large states, such as California and New York, joined at the last minute. Also on Thursday, U.S. banking regulators used the federal-state mortgage settlement as a vehicle for levying their own fines on banks over problems in their mortgage businesses. In April 2011 banking regulators reached a deal with 14 banks on the steps they have to take to clean up how they deal with struggling homeowners. No monetary penalties were announced at the time but on Thursday the Office of the Comptroller of the Currency said that Bank of America, Citigroup, JPMorgan, and Wells Fargo have agreed to pay a penalty of $394 million as part of the broad federal-state settlement. Citigroup and Ally did not immediately provide statements on the settlement.

Wells Fargo said its portion of the settlement was $5.3 billion and that it had already accrued reserves to cover the cost of the pact. "Today's agreement represents a very important step toward restoring confidence in mortgage servicing and stability in the housing market," Mike Heid, president of Wells Fargo Home Mortgage, said in a statement. JPMorgan said the settlement includes far-reaching relief that will help many of its customers and complement its existing efforts to help borrowers. Bank of America spokesman Dan Frahm said: "We believe this settlement will help provide additional support for homeowners who need assistance, brings more certainty to the housing market and aligns to our ongoing commitment to help rebuild our neighborhoods and get the housing market back on track."

APPLE TO REVEAL LATEST IPAD IN MARCH - REPORT

Apple Inc plans to introduce its latest iPad tablet at an event in the first week in March, the website AllThingsD reported, citing unnamed sources. The event will be held in San Francisco, likely at the Yerba Buena Center for the Arts, which is Apple's preferred site for product launches, the website said. An Apple spokeswoman declined to comment. Apple has typically introduced the latest versions of its iPad in the first few months of the year. The current iPad 2 was introduced on March 2, 2011. The original iPad was introduced at the end of January 2010. Apple's iPad dominates the nascent market for tablets even though deep-pocketed rivals are taking aim at the lucrative segment. Amazon.com Inc's Kindle Fire, which sells at half the cost of an iPad, has chipped away at the lower end of the tablet market. Apple iPad tablet sales doubled in the December quarter to 15.43 million units from a year earlier.

AIR INDIA SEEKS $1 BLN FROM BOEING FOR DELAYS - SOURCE

Cash-strapped Air India is seeking nearly $1 billion from Boeing Co. to compensate for delays in aircraft deliveries, a source with direct knowledge of the matter said. Deliveries on the national carrier's 2005 order for as many as 50 long-range Boeing jets worth about $6 billion has been delayed by more than 3 years. A Boeing spokeswoman in New Delhi could not be reached immediately for comment on Thursday. Air India, burdened with a $4 billion debt, is facing a severe cash crunch and is banking on government support to continue operations. Earlier this week, Indian media quoted Aviation Minister Ajit Singh as saying that Air India would proceed with the purchase of Boeing planes despite its troubles, subject to government approval. Air India plans to lease out excess aircraft to cut its huge debt after the induction of Boeing 787 Dreamliners into its fleet, a source told Reuters in November. India's airlines are struggling with surging oil prices, high sales taxes on jet fuel and fierce competition that has resulted in cutthroat pricing, leading to massive losses. Jet fuel costs in India are among the highest in the world, largely as a result of high taxes. Earlier this week, a government panel approved a plan for carriers to directly import jet fuel to cut costs.

ANALJIT SINGH TO BE NON-EXECUTIVE CHAIRMAN OF VODAFONE INDIA

The Vodafone Group Friday named Analjit Singh as the non-executive chairman of its India operations. Singh, a leading industry figure in India, is the founder and chairman of Max India Ltd as well as its subsidiaries such as Max New York Life Insurance Company Ltd, Max Healthcare Institute Ltd and Max Bupa Health Insurance Company Ltd. "Analjit has been a longstanding, reliable and trustworthy partner in India," Vittorio Colao, chief executive of the Vodafone Group. The appointment is effective Feb 16, following approval from the board of Vodafone India. "Analjit knows our business well, having been the founder and chairman of Max Telecom, the business which has grown to become Vodafone India with nearly 150 million customers," said Nick Read, CEO of Vodafone's Africa, Middle East and Asia Pacific region.