Wednesday, September 29, 2010

World's richest man Carlos Slim slams broadband plan

slim - file
Mexican telco tycoon Carlos Slim has hit out at the National Broadband Network during a press conference in Sydney
THE world's richest man Carlos Slim has slammed the Government's national broadband network, branding it "too expensive".

Mr Slim, speaking at the Forbes conference in Sydney, told a press conference that the $42 billion plan to install the NBN is simply going to cost too much.

"It's too much money," he said.

"It is not necessary to invest so much money, because technology is changing all the time."

Mr Slim said that $7000 a home to connect around six million homes was too high a cost.

He also criticised the reliance of the project on fibre.

"You need to have a multi platform of everything; mobile, landline, fibre, cable and copper," he said.

"You need to have all these. You need to have a very good fibre network and rings and you need to have a loop of fibre to sustain when you have a problem in one place that the communications don’t get interrupted.

"But with copper and cable you can give 20 or 30 MhZ. I think fibre is not enough. You need to have a good network of wireless. "

But Mr Slim, who made much of his $US60 billion fortune from telecommunications in is native Mexico, came to the defence of beleagured telco Telstra, describing it as a "good company'.

Source http://www.heraldsun.com.au/news/worlds-richest-man-carlos-slim-slams-broadband-plan/story-e6frf7jo-1225931844361

Friday, September 24, 2010

Australian Wheat Forecast Increased on Rain, CBA Says

Sept. 24 (Bloomberg) -- Commonwealth Bank of Australia increased its wheat output forecast for the country by 4 percent as a record harvest in eastern areas may make up for crop losses in the west because of dry weather.

Production may gain to 23.1 million metric tons from 21.4 million tons last year and up from a July estimate of 22.2 million tons, the bank said in an e-mailed report. Exports in 2010-2011 may rise to 17 million tons from at least 15 million tons this season, it estimated.

La Nina weather conditions have brought increased rain to Australia’s eastern states, raising crop production forecasts and driving cattle prices to the highest level in four years. The wheat crop may be the third-largest on record, according to the federal government’s commodities forecaster.

“Our improved production numbers reflect record-breaking yield prospects across most regions in eastern Australia,” Luke Mathews, commodities strategist at Commonwealth Bank, wrote in the report. Key risks to the eastern harvest included locusts, crop-disease damage, frosts or a heat wave, he said.

December-delivery wheat advanced 1.3 percent to $7.0525 a bushel on the Chicago Board of Trade at 6:47 p.m. Melbourne time, taking the weekly loss to 4.7 percent, the most for the most- active contract since the week ended June 4.

Australian wheat production may increase to 25.1 million tons this harvest and exports may rise to 18.4 million tons, the Australian Bureau of Agricultural & Resource Economics-Bureau of Rural Sciences forecast Sept. 14.

Export Outlook

Exports could be curbed if there were any significant logistics problems in the east or if the Western Australia crop continued to deteriorate, potentially challenging the state’s record low of 4 million tons, the bank said.

Damage from past locust plagues was generally less than 1 percent of the total output and the worst damage was in 1934-35 when losses were forecast at 2 percent to percent, the bank said.

“This would hardly put a dent in our record crop forecast, and technology to control locusts in the 1930s is hardly comparable to what is available today,” Mathews said.

“Although we do expect reports of damage due to locusts over the next month, which may include the complete wipe-out of some individual paddocks, we don’t expect an Armageddon-like impact on the entire east coast crop.”

Wet weather in Australia’s east this year reflects warm conditions in the Indian Ocean and cool temperatures in the equatorial Pacific Ocean, both associated with a La Nina event, the Bureau of Meteorology said yesterday.

--Editors: Ravil Shirodkar, Matthew Oakley

To contact the reporter on this story: Wendy Pugh in Melbourne at wpugh@bloomberg.net

To contact the editor responsible for this story: Wendy Pugh at wpugh@bloomberg.net

Source http://www.businessweek.com/news/2010-09-24/australian-wheat-forecast-increased-on-rain-cba-says.html

Thursday, September 16, 2010

Cairn India head says hopes to close Vedanta deal by end 2010

The chairman of Cairn India, a unit of the UK's Cairn Energy, said on Thursday he hopes the deal for London-based Vedanta Resources to buy a controlling stake in the Indian firm would close by end-2010.

Vedanta, in its first move into the energy sector, is buying a controlling stake in India's No. 4 oil and gas company from Cairn Energy to capitalise on rising energy demand, economic growth and an expanding population.

Vedanta Resources has offered Rs 405 rupees a share for between 40 and 51 per cent of Cairn India. The final stake bought would depend on the response to an open offer for a 20 per cent stake made to minority shareholders at 355 rupees a share. That offer opens on October 11.

Source http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/Cairn-India-head-says-hopes-to-close-Vedanta-deal-by-end-2010/articleshow/6565683.cms

Tuesday, September 14, 2010

Gold futures firm, physical demand wanes

Gold futures traded firm on Tuesday as the U.S dollar slipped against other currencies, denting demand from physical buyers. "Demand is slightly on the lower side because although the dollar-rupee is favourable rate for gold buyers, the gold-dollar rate has moved up to $1,255," said a dealer with a foreign bank.

"At these levels the kind of demand we have seen for the past 5-7 days is difficult to come by," he added. Gold and dollar move in opposite directions as a weak dollar enhances the yellow metal's appeal as an alternative investment. Gold on Multi Commodity Exchange of India (MCX) was trading at 18,966 rupees, up 0.57 percent.

"We have done deals of around 100 kgs, but in this sort of a market where demand started coming up, these deals are not much," said another bank dealer. Traditionally, demand for gold in India, the world's largest consumer of bullion, is high during the Sept-November festival season. Dhanteras, considered auspicious day for buying gold, is in November.

The Indian rupee strengthened on Tuesday as shares rallied more than 1 percent, boosting hopes for more portfolio inflows.

A strong rupee makes the dollar-denominated commodity cheaper as it plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars. A Reuters poll has estimated India's gold imports in 2010 at 504.5 tonnes, up by 24.5 tonnes from last year.

Source http://economictimes.indiatimes.com/markets/commodities/Gold-futures-firm-physical-demand-wanes/articleshow/6552745.cms

Friday, September 10, 2010

Outsourcing ban won't hurt ties: US envoy

US ambassador to India Timothy Roemer has brushed aside the controversy over Ohio banning outsourcing of IT related work and said that it will not have any bearing on Indo-US business ties. Roemer made the statement after a meeting with home minister P Chidambaram today morning.

The ambassador met the home minister to discuss issues pertaining to the visit of US President Barack Obama in November this year.

"The White house is very excited about President Obama's visit. We did discuss security and other issues in the run up to the visit" he added.

On the outsourcing ban in the American state of Ohio, Roemer said, "Similar action was taken in 2005. Infosys and others have said this will not impact India-US business ties. We in the US are talking of cooperation in job creation, trade, terrorism etc. That's the real progress and not acts by individuals".

Last month, Ohio Governor Ted Strickland of Democratic Party banned outsourcing arguing that this undermines economic development and has unacceptable business consequences for his state.

The move follows a controversial legislation that increased H-1B and L1 visa fees, hitting India's over $50 billion IT industry.

Source http://www.ndtv.com/article/india/outsourcing-ban-wont-hurt-ties-us-envoy-51062?trendingnow

Wednesday, September 8, 2010

Ohio bans outsourcing to India, Infosys concerned

The American state of Ohio has imposed a ban on outsourcing of government IT projects to offshore destinations such as India. TCS, India's largest IT company, runs a project in Ohio.

The move is likely to affect Indian companies that derive more than 50 per cent of their revenues from the US, though not necessarily from the government sector. Many Indian companies have shifted their priority to the government sector in the wake of recession and this move is likely to throw a spanner in their new strategy.

Kris Gopalakrishnan, CEO of India's second largest IT company Infosys, said that the company was concerned by the move. "This is raising a protectionist barrier. All governments tend to be worried about unemployment. Unemployment has not gone up. We need to look at a global perspective. We are working with governments. We must increase local recruitment. There has to be a balance," he said in a statement to NDTV.

Unemployment has hit a record 9.6 per cent in the US leading to rising concerns about the pace of recovery in the world's largest economy.

Only last month, US President Barack Obama signed into law a new Border Security Bill proposing a steep hike in some categories of H-1B and L-1 visa fees. The Indian government had threatened to take the US to the World Trade Organization (WTO) over the new law saying it targeted Indian companies unfairly.

Reacting to the latest development, Minister of State for Parliamentary affairs V. Narayanasamy said that, "As far as WTO talks are concerned, we can't say anything since negotiations are on. But we have our own strengths. All these things are minor irritants. The prime minister is seized of the matter."

Source http://profit.ndtv.com/news/show/ohio-bans-outsourcing-indian-companies-to-be-hit-96583?trendingnow

Tuesday, September 7, 2010

Sensex ends off highs; capital goods shine, realty hit

Indian equities advanced further Tuesday, even as Asian and European markets fell and US futures eased after the central banks of Japan and Australia said the US growth outlook is deteriorating.

Capital goods scored over all others, with the respective BSE index gaining 1.25 per cent. IT stocks followed by adding 1 per cent to the BSE IT Index.

After rising consistently, realty shares met with profit booking and the BSE sector index was down 1.15 per cent. Other sectors to end in the red were healthcare, automobiles, banking and consumer durables.

National Stock Exchange’s benchmark Nifty closed the session at provisional 5592.15, adding 15.2 points or 0.27 per cent. The 50-share index recorded a high of 5625.50 versus a low of 5571.65.

Sensex ended the day at 18,600.56, up 40.51 points or 0.22 per cent. The Bombay Stock Exchange’s 30-share index touched a high of 18,711.20 against a low of 18,571.43.

Top gainers among the Sensex stocks were ACC (6.20%), Larsen & Toubro (2.42%), Tata Consultancy Services (1.75%), Jaiprakash Associates (1.54%), Jindal Steel (1.45%), NTPC (1.22%), Maruti Suzuki (0.98%), Infosys Technologies (0.79%), Reliance Industries (0.64%).

Losers included State Bank of India (-1.18%), Hindustan Unilever (-0.90%), Mahindra & Mahindra (-0.81%), ICICI Bank (-0.73%), HDFC (-0.68%), HDFC Bank (-0.62%), Tata Power (-0.62%), DLF (-0.58%), BHEL (-0.55%).

Source http://economictimes.indiatimes.com/markets/stocks/market-news/Sensex-ends-off-highs-capital-goods-shine-realty-hit/articleshow/6512659.cms

Thursday, September 2, 2010

Reliance Broadcast Network soars on fund raising plans

Reliance Broadcast Network Ltd (RBNL), part of the Anil Dhirubhai Ambani Group (ADAG), was trading at the upper circuit filter limit at Rs 116 on the Bombay Stock Exchange (BSE) on Thursday.

The scrip had opened 4.98 percent higher than its previous close, a day after the company said it would raise over Rs 400 crore.

After the stock markets closed Monday, RBNL said its board had approved a proposal to raise over Rs 400 crore by preferential issue of equity shares to the promoter group and other investors.

The new equity capital will substantially enhance RBNL's net worth and augment its borrowing capabilities, the company said.

The promoters will subscribe about 2.9 crore shares aggregating approximately Rs.250 crore and investors will subscribe about 1.9 crore shares worth Rs.150 crore.

The preferential offer will be made at a price of Rs.85 per share, a premium of over 25 percent to the last 26 weeks average market price.

Post offer, the sharholders funds will increase over 300 percent from Rs.167 crore to Rs.568 crore.

The funds are expected to help RBN in its new ventures in television broadcasting, as well as pump its activities in the radio and advertising.

RBNL recently formed a 50:50 joint venture, BIG CBS Networks Pvt. Ltd, with CBS Studios, a division of international media and entertainment major CBS, to beam channels to India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives.

The new entity Big CBS will launch three channels-- BIG CBS Spark, BIG CBS Love and BIG CBS Prime. The channels are expected to be beamed in the October-December quarter.

Source http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Reliance-Broadcast-Network-soars-on-fund-raising-plans/articleshow/6479847.cms