WEEKEND COVERAGE : 28 JULY 2012 TO 29 JULY 2012

ASIA

China’s shipyard’s are piled on with a larger number of ships on account of declining orders experienced in the 1HY12 period. Orders for new ships declined on rising prices of commodities, fluctuating cargo rates and the uncertainty in the economy. Orders have declined by almost 50 percent to see some of the smaller firms file for bankruptcies. (Bloomberg)

China’s banking regulator, The China Banking Regulatory Commission would keep a watch on its property markets by enhancing risk management and lending activities. The regulatory body planned to increase lending activities to construction projects, smaller businesses and other housing projects. (Bloomberg)

INDIA

The chairmen’s of Central Bank and Union Bank , expect a 50 bps reduction in CRR to ease money supply. However the MD of Yes Bank and the Indian chief economist of HSBC, did not expect RBI to cut CRR or the Repo rate in the coming policy meet.  (Financial Express)

According to the Agricultural and Processed Foods Export Development Authority, exports of organic textile products are expected to rise to INR 1500 cr in FY2012-13 vs INR 1027 cr in the previous year. Uniformity in standards and regulations across major markets such as Europe and Japan would smooth the path for exports of goods. (Business Standard)

Market capitalization of top 7 co.’s in the Sensex declined by INR 31792 cr for the week ended 27 July. SBI led losses followed by Coal India, ONGC and Bharti Airtel and NTPC. TCS, ITC and HDFC Bank gained their market cap during the same period. (Economic Times)

Indian foreign exchange reserves grew by USD 580m (versus a previous decline of USD 872.27m) to USD 287.34b for the week ended 20 July. (IANS/YAHOO)

For the month of July (3rd to 27th) FII’s made a gross purchases of INR 44,192cr shares and sold equities worth INR 35,768cr. (Economic Times/PTI)

Steel Co.’s – According to CMIE, steel prices are expected to rise by 7.2 per cent this year and rates are expected to firm up from October due to rise in demand, despite the weakness in the international markets. However, prices were likely to remain under pressure during the July-September monsoon season. (Financial Express)

Reliance Industries – Infotel Broadband is likely to procure over USD 1b of network gear from Samsung Electronics, to meet its 4G equipment requirements. (Economic Times)

Petronet LNG – Co. is to construct a power plant project near its upcoming LNG import port in Kerala, India. The co. will construct a 1200 megawatt gas-fired power plant in a 50:50 joint venture with the state government. The outlay is expected at around INR 3500 cr. (Business Standard)

Sesa Goa – Co. plans to extract around 10 m tonnes of iron ore in the first phase from its Liberian Western Clusters project for FY2013-14. The co. expects a higher output on account of higher projection of reserves in the Liberian plant. Reserves are expected 3x higher than its original estimate of 1 b tonnes. (Business Standard)

Nalco – Co. is likely to take a hit of INR 300cr annually as it is forced to keep 5 per cent of production capacity idle due to lower metal price and shortage of coal. (The Hindu Business Line)

Godrej – Consumer product maker stated that it observes a slowdown in sales in the rural markets of India.  Rise in the cost of living, higher inflation and high interest rates could contribute to the slowdown inspite of the FMCG industry seeing a rise at a CAGR of 11 percent in the last ten years. (Business Standard)

Lupin – According to co.’s management, co. is looking to acquire brands and technology firms in US markets, as co. aims to grow its sales over 20 per cent over the next two years. (Business Standard/PTI)

Walmart Inc and Prudential Finance have started lobbying with the U.S government and legal policymakers to gain support for its retail venture in India. FDI in multi-brand retail has been kept on hold by the Indian government on account of the strong opposition by political parties. (Economic Times)

Firms NCC and IL&FS Engineering have decided to exit from the INR 850 cr hydro electric construction project on a tributary of the Sutlej River in India. (Economic Times)

INDIAN EARNINGS

Maruti Suzuki – Co. reported 1Q12-13 net profit at INR 423.8cr vs. previous INR 549.2cr. Total sales at INR 10,529cr vs. previous INR 8,256.6cr. (Indian Express)

HDFC Ltd – Co. reported 1Q12-13 bet profit at INR 1,275.86cr vs. previous INR ,1020.06 in 1Q11-12. Total income at INR 11,656.50cr vs. previous INR 7,268.79cr. (Indian Express)

Birla Corp – Co. reported 1Q12-13 net profit at INR 84.74cr vs. previous INR 111.88cr in 1Q11-12. Net Sales at INR 658cr vs. previous INR 556.97cr. (Indian Express)

United Spirits – Co. reported 1Q12-13 net profit at INR 144.95ce vs. previous INR 137.71cr in 1Q11-12. Net sales at INR 2,057.29cr vs. previous INR 1,935.42cr. (Financial Express)

EUROPE

The ECB president Mario Draghi is expected to meet with the head of Bundesbank, Jens Weidmann over next couple of days, to discuss plans of joint rescue by ECB and European rescue funds, to purchase Spanish and Italian government bonds, according to persons familiar. (WSJ)

Greece political leader have agreed on most of the austerity measures demanded by its creditors and now are looking at pension and wage cuts to find the Final EUR 1.5b. Greece requires to find savings worth EUR 11.5b for 2013 and 2014 to satisfy the demands of its lenders. In related news the ECB and national central banks are expected to take losses on their holdings of Greek government bonds. As official aims to reduce Greece’s debt by EUR 70b to EUR 100b, cutting its to about 100 per cent of annual GDP, according to several eurozone senior officials. (Reuters/Yahoo/Telegraph UK)

The Emnid poll for the Bild am Sonntag mass circulation weekly showed, 51 per cent Germans believed that, Germany would be better off outside the eurozone. The poll also showed that 71 per cent of Germans wanted Greece to leave euro if it did not live up to its austerity promises. (Telegraph UK)

The ratings agency Standard and Poor’s has affirmed UK’s ‘AAA’ credit grade, and expects the economy to recover in the second half of the year. (AP/ Boston.com)

Aviva Plc – Co. plans to divest its stake in U.S life insurance business division which it had purchased for USD 2.8 b in 2006. Buyers include private equity firms and financial firms. (Bloomberg)

NORTH AMERICA

President Barack Obama’s Office of Management and Budget has forecasted a budget deficit of USD 1.21 t in FY12, lower than the USD 1.33 t forecasted in February. It also forecasted that unemployment rate would average 8 percent and 4Q12 GDP is expected to grow 2.6 percent on a y/y basis. (Bloomberg)

The first year of recovery of the U.S economy from the recession was weaker than estimated as GDP rose only 2.5 percent in the period ended June 2010, vs 3.3 percent expansion previously. (Bloomberg)

Boeing – Co. won a USD 339m US Air Force contract to build the 10th satellite in the Wideband Global Satellite Communications program. (Economic Times/Reuters)

 



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