Wednesday, November 07, 2012
USA Fiscal position will worsen...JIM ROGERS..
US election results: Fiscal position will worsen, economy headed for slowdown, says Jim Rogers
The US fiscal cliff position will worsen going ahead, said Jim Rogers of Rogers Holdings to ET Now post the re-election on US President Barack Obama. According to Rogers, Obama will continue with his current policies, there will be more deficit spending which will make things worse for the US economy.
While Rogers is of the opinion that global markets have already discounted the possibility of a US fiscal crisis, he advised investors to buy metals and agriculture related commodities. "America is going to have a slowdown in 2013-14, there will be fewer jobs, more unemployment and turmoil in oil and currency markets," Rogers said.
Even though the US government is likely to come up with a 'quick' fix for the problem of fiscal cliff, Rogers feels that it will only make things worse.Asked about the possibility of a further downgrade of the US economy, Rogers said, "If you haven't already downgraded America in your mind, do so now." TheFederal Reserve will print more money, which is not good or the global economy, he said. "You should be worried, I am worried," he added.
Rogers sees gold prices going much higher over the next decade and advised buying more commodities. Even though he is short on US government bonds, has a long view on dollar right now.US President Barack Obama swept to re-election Tuesday, creating history again by defying the undertow of a slow economic recovery and high unemployment to beat Republican foe Mitt Romney.
Obama became only the second Democrat to win a second four-year White House term since World War II, when television networks projected he would win the bellwether state of Ohio where he had staged a pitched battle with Romney.
http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/us-election-results-fiscal-position-will-worsen-economy-headed-for-slowdown-says-jim-rogers/articleshow/17126214.cmsCONGRATS OBAMA...
BARACK OBAMA RE-ELECTED...AS PRESIDENT....ONCE AGAIN HEARTFELT CONGRATULATIONS, Mr President.....
Shree Renuka- Upside Capped!!!!
| I AM BETTING HEAVILY ON THE SUGAR SECTOR...ESPECIALLY ON THE SMALL CAPS...SIMPLE 100% RISE IS ASSURED... ---------------------------- Analysis: Shree Renuka- Upside Capped |
| While better sugar realizations bode well for the company, the high debt still remains a concern |
| Ujjval Jauhari / Mumbai Nov 07, 2012, 20:07 IST
Shree Renuka September’12 quarter performance on standalone Basis was a mixed Bag. While the Higher Sugar realizations in the Domestic markets boosted the Sugar revenues and its share also increased 53.2% in the year ago quarter to 84.3% in September’12 quarter the other segments as power, co generation and Trading sales saw declining revenues and profitability and hence the revenues from domestic operations could increase marginal 2.4% y-o-y to Rs 1154.4 Crore. The growth would have been better but for decline in trading sales volumes due to lower exports from India. The smaller Power segment and Industrial Alcohol segment too saw declining sales.
Sugar Volumes and realizations drive growth As the Production estimates for sugar year 2012-13 (October-September) by Indian Sugar Mills Association (ISMA) were reduced from initial 26 Million tonnes to 23.0 MT in the back of lower rainfall in key sugar producing states of Maharashtra and Karnataka, the domestic sugar prices went north. The domestic prices saw an upside from around Rs 29 a Kg to Rs 36.3 a kg during the September’12 quarter. Thus average realizations for Shree Renuka increased from Rs 30 a Kg in the year ago quarter to Rs 32.50 a Kg in September quarter. It also sold higher volumes i.e 3 lakh tons of sugar during the September’12 quarter against 2 Lakh tonnes in the year ago quarter. Thus the Sugar segment sales zoomed up to Rs 973.1 crore up almost 69% year on year. Other segments dip Amongst other segments the trading volumes decline from Rs 417 crore in September’11 quarter to Rs 106 crore in September’12 quarter. However this was understandable looking at good demand and realizations in the country leading to lower exports. The distillery sales too declined 32.7% to 25,101 kilo litre with average realizations marginally down to Rs 29 a litre. Power sales too declined 63.2% to 7 million kilo watt Hours.
Domestic Sugar sales push profitability
With better Sugar realizations the EBIT margins for the segment increased to 9.4% from year ago’s 2.8%. Power segment however reported a loss of Rs 20 crore basically due to higher fuel costs (coal). In absence of Bagasse (the waste left after crushing sugar cane), company had to use coal for power production that pushed up costs. Industrial alcohol seeing marginally lower realizations too saw subdued margins. However the Larger Sugar segment that saw better margins in turn boosted overall margins. EBIDTA at Rs 102.4 crore increased 97.3% y-o-y. However Interest costs more than doubled to Rs 146.50 crore eating away the profits and Net Profits just stood at Rs 7.7 crore. Outlook Sugar prices still remain better than last year and are expected to stabilize at currently levels of Rs. 33.0 per kg as crushing season has started. Further, absence of sugar exports from India on account of lower domestic sugar production is expected to benefit Shree Renuka Sugars’ refinery operations, which are expected to run at full capacity over the next 2-3 quarters observes a Prime Broking report.
Though Consolidated are yet to be declared, the analysts at Edelweiss observe that Brazilian subsidiaries have improved operating performance during the quarter on account of higher crushing. Total of 4.6 MT of cane was crushed during the quarter by RDB and VDI which is 139% higher than the previous quarter and 27% higher than same quarter last year.
They believe that financial performance is likely to improve owing to higher realization in standalone busines and better operational performance in Brazil. But debt concerns still persist. Based on 6xFY13E EV/EBITDA, they have a target price of Rs 28 and maintain ‘HOLD’, while they await consolidated numbers for Q2FY13. Consensus Target price for the Stock as per Bloomberg stands at Rs 33.40 for stock trading at Rs 32.10 levels. http://www.businessstandard.com/india/news/analysis-shree-renukaupside-capped/195008/on |
Tuesday, November 06, 2012
Europe's economies worsening... Impact Stock Markets ?
Gloomy reports show Europe's economies worsening
LONDON: The fourth quarter has so far brought no improvement in the fortunes of most of Europe's economies, which now risk shrinking more than previously expected, gloomy data showed on Tuesday. Purchasing managers indexes (PMIs), which gauge the activity of thousands of companies worldwide, showed euro zone businesses endured their worst month in October since June 2009, with little hope of a turnaround coming soon.
The euro zone relies heavily on Germany, its largest economy, to generate growth. Business activity there shrank at faster pace last month and new data show industrial orders in September plummeted at a far faster rate than expected. PMI compiler Markit said its latest survey was consistent with the euro zone economy shrinking at a quarterly rate of around 0.5 percent. If the PMIs fail to improve for November and December, the euro zone economy could easily face a hefty contraction in the fourth quarter rather than the stagnation projected by economists polled by Reuters two weeks ago.
"Given the stabilisation in financial markets, and in consumer sentiment indicators in some countries, we thought perhaps you would see some stabilisation in the PMIs as well," said Janet Henry, chief European economist at HSBC. "What's disappointing about the Q4 data is the weakness reflected in the core euro zone indicators -- the French and German PMIs." German industrial orders data for September only added to the sense of gloom with a 3.3 percent month-on-month decline, far worse than the 0.5 percent consensus fall in a Reuters poll of 38 economists. While the data series is notoriously volatile, it bodes poorly for industrial production data due on Wednesday.
"This will add to concerns within financial markets that the global trade cycle is weakening, and certainly suggests momentum going into the fourth quarter is fairly weak," said Nick Matthews, European economist at Nomura. British industrial output also fell more sharply than expected in September, data showed on Tuesday, reinforcing fears an incipient recovery will struggle to gather pace. Britain's services PMIs were released on Monday, and suggested the same.
BRIGHT SPOTS?
Markit's Eurozone Composite PMI fell in October to 45.7 from 46.1 in September, down slightly from a preliminary reading of 45.8 two weeks ago and marking its ninth consecutive month below the 50 mark dividing growth from contraction. The survey will do little to alter the view of a majority of economists that the European Central Bank will trim interest rates to a new record low of 0.5 percent, although probably early next year rather than this Thursday. "Sentiment is still being hit hard as companies worry about the dual impact of weak domestic demand and a slowing global economy," said Rob Dobson, senior economist at PMI compiler Markit.
http://economictimes.indiatimes.com/news/international-business/gloomy-reports-show-europes-economies-worsening/articleshow/17116225.cms
Monday, November 05, 2012
Sunday, November 04, 2012
Sales man to NMC Healthcare- BR Shetty--one of the richest Indians in the UAE
BR Shetty, owner of 2 floors in Burj Khalifa, wants to bring NMC hospital chain to India
In India, BR Shetty is famous as the man who owns all the apartments on the 100th and 140th floors of Dubai's iconic Burj Khalifa, which he is said to have acquired for a whopping $25 million. Besides such big investments in real estate in the UAE and India, Shetty's NMC Healthcare, which is the largest health care services group in the Gulf region, will be running a chain of super-speciality hospitals in India, if things go according to plan."For me the business plan would be to make affordable health care available to a large number of people in India, especially in Tier-II and Tier-III cities. To begin with, we would be looking at cities such as Bangalore, Chennai, Coimbatore, Pune and Jaipur. We would like to set up health care facilities that run as centres of excellence in various fields such as oncology and cardiology," says Shetty, founder, managing director and chief executive officer of NMC Healthcare, which became the first big player from the Gulf to raise money on the London Stock Exchange earlier this year.
India Prescription
While he is awaiting the board's approval for his planned foray into India's health care sector, industry experts believe that part of the $187 million raised through the London IPO will go towards funding his India plans. "I am also talking to some specialists in Chennai and will be funding cancer research in India. This is part of my corporate social responsibility outreach towards my country of origin," says Shetty, who belongs to the Bunt community of Karnataka. Shetty who has received India's top honours — Padma Shri and Pravasi Bharatiya Samman — hopes that in five years his company can create a 3,000-bed hospital infrastructure in India.
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Salesman to Billionaire
His journey from a pharmaceutical salesman in Abu Dhabi — where he went about four decades ago in search of a better life — to one of the richest Indians in the UAE with a net worth of around $2 billion, is one of Indian entrepreneurship.
Though a trained pharmacist, he couldn't get a job at any government hospital in the UAE because his Indian qualifications were not acceptable. Instead, Shetty started the New Medical Centre group of companies focused on pharmacies and health care in 1975. While the clientele was initially largely non-resident Indians, employees of American companies later provided the numbers for NMC hospitals, which include a wide range of facilities from primary to super-speciality in Dubai, Abu Dhabi, Al Ain and Sharjah. The business model of the group includes a large pharmaceutical distribution network and pharmacies to support the hospitals.
"Besides India, I also plan to expand health care facilities in the Middle East and North Africa, having acquired two hospitals in Egypt. I am also looking at expanding in Qatar and Abu Dhabi," says Shetty.
http://economictimes.indiatimes.com/news/nri/nris-in-news/br-shetty-owner-of-2-floors-in-burj-khalifa-wants-to-bring-nmc-hospital-chain-to-india/articleshow/17078287.c
Saturday, November 03, 2012
Renuka Sugars ..a sweet news..MORE TO FOLLOW..
| Shree Renuka Sugars cuts trading activities | ||||||||||||||||||||
| Weak global sentiment and import duty turning unviable for sugar refining in India with imported raw sugar | ||||||||||||||||||||
| Dilip Kumar Jha / Mumbai Nov 03, 2012, 12:08 ISTLeading sugar producer Shree Renuka Sugars Ltd has cut trading activities massively in the last quarter of the sugar year (October 20111 – September 2012) due to, perhaps, weak global sentiment and import duty turning unviable for sugar refining in India with imported raw sugar. From trading activities, the company generated an income of Rs 105.7 crore in the September quarter compared to Rs 416.6 crore in the corresponding quarter of the previous year. The decline was steady with total income from trading reported at Rs 203.9 crore, a company statement said.Similarly, focus was also diverted in co-generation and ethanol sectors which recorded a total business worth Rs 18.4 crore and Rs 72.9 crore for the quarter ended September 2012, compared to Rs 40.7 crore and Rs 108.7 crore in the comparable quarter previous year. In contrast, revenue from sugar was higher at Rs 972.9 crore for the September 2012 quarter compared to Rs 599.4 crore in the same quarter last year, witnessing, thereby, a rise of over 62 per cent. A turnaround in sugar prices yielded positive result on the financial performance of India’s leading sugar refiner Shree Renuka Sugars Ltd which posted Rs 7.7 crore standalone net profit for quarter ended September 30 as against Rs 57.30 crore loss incurred in the corresponding quarter previous year.Sugar price shot up to Rs 3650 a quintal (ex-factor in Uttar Pradesh) early October this year as compared to Rs 2800–2850 a quintal about a year ago. Total standalone income for the company, however, recorded a marginal increase to Rs 1154.4 crore during the quarter ended September this year versus Rs 1127.3 crore in the same period last year. Sugar refiners in India have urged the government to either bring down import duty on raw sugar to “nil” or increase it on refined sugar to 20 per cent from the existing 10 per cent across all types of imports in order to make viable of refining sugar in India from imported raw sugar.
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Nifty headed to 5800-6000 by Dec..!!
Fri, Nov 02, 2012 at 16:14
Hold positions; Nifty headed to 5800-6000 by Dec: Experts
Dilip Bhat, Joint MD of Prabhudas Lilladher is of the view that markets have good tailwinds at the moment. The overall bullishness has been supported well by global indices and FII flows continue to be strong, he believes.
Sudarshan Sukhani of s2analytics.com feels it is not an opportune time to go long on the Nifty. According to him, those who have already booked long positions must carry it forward to the next week, to Monday. He further added, "At the current levels the Nifty is now on the verge of strong resistance and that resistance comes at 5730. Let that resistance be crossed and that is the time to go in or maybe when there is a sharp dip one can enter the market. This is a time only to hold positions, not add to new positions." Dilip Bhat, Joint MD of Prabhudas Lilladher is of the view that markets have good tailwinds at the moment. The overall bullishness has been supported well by global indices and FII flows continue to be strong, he believes.
According to him, the Nifty is heading towards an anchoring level of around 5800 to 6000 by December. However, in the meanwhile there could be some market volatility, he opined.
Q: Your view on where the markets are headed given the kind of painful raise we have surrendered ourselves to for so long?
A: The markets really are having good tailwinds at the moment. Globally also I think the global indices have been quite supportive of the overall bullishness. The FII flow continues to be positive, though they seem to be a little more interrupted at the moment in the last few days, where probably there are some negative flows. More importantly, there are some right kind of noises being made on the Indian economic scenario, whether it is the PM talking about a trillion dollar on the infra spend or whether it is the fiscal consolidation roadmap that the finance minister is talking about.
Taking all this into account, I think possibly we are still heading towards an anchoring level of something like 5800 to 6000 on Nifty by December. There could be a good amount of volatility in the intervening period, but beyond 5800-6000, we will probably run into valuation headwinds. Probably the valuations will not be supportive beyond that and it will look too stretched. In the near term that is what it looks like.
Q: To break above this 5700 odd resistance mark quite concretely, what do you think is the next trigger for the markets?
A: Beyond that, probably there has to be a lot of conviction that GDP has to grow and grow decisively past 7-7.5 percent for FY14. I think there has to be some concrete measures. People will be focusing on it. Of course if that happens, the Nifty EPS growth will also look very healthy and very strong.
Otherwise, a 10-12 percent or 13 percent Nifty EPS growth will not inspire a confidence to buy even at the levels of 5800-6000. Some of these things probably are still missing in the overall scheme of things. Maybe the steps which have been announced could only arrest further downslide. But, whether these will lead to a 7 percent plus kind of a GDP growth rate is not what I am convinced about. I am sure that market probably is also very circumspect about some of these things.
Q: Getting down to individual stocks, Wipro is the big gainer this week. It is up about 9.5% for the week itself. What have you made of the demerger news that we got and what is in it for shareholders and do you think the time has come to book profits in the stock?
A: As far as the demerger is concerned, I am not sure whether there is anything great for the shareholders at the moment. Maybe it is more to do with the internal family kind of an arrangement because most of the time the markets have been focusing on the software growth, the RoEs and the cash that the software business is generating.
By and large, Wipro has enjoyed PE only because of that and maybe the demerger, if at all, will be more of a formality than anything else. But, more important is the core earnings in the software. They have really started coming in a reasonably good way. Probably I think there is some amount of sustainability that one sees going ahead and maybe there could be some kind of growth. From that sense, I think Wipro still looks a reasonably good bet to go up by another 15-20% from the current levels.
Q: We have got some good numbers today from the PSU banking space. There is Union Bank which is reacting quite favorably post its numbers. Any view on that?
A: I think Union Bank has really taken it on the chin up till now. This perhaps so far has been the only PSU bank which has shown an exception. Otherwise all other PSU banks have shown deterioration in the asset quality and that has been the single biggest worry. Here at least that worry has stemmed for the time being.
Now probably to gain further confidence and momentum for Union Bank, people or investors will look at whether the asset quality is going to be maintained going forward or if at all it is going to improve. My sense is that Union Bank from here on probably will start showing a little better performance both on the asset quality as well as the NII growth.
Probably that will result in a good bottom-line growth as well as a better ROE and ROAs. Union Bank, even from the current levels should be one of the few exceptions in the PSU banks where one should take a call and one should buy for short to medium term.
Q: Your opinion on the Jet Airways numbers and what we have spoken about?
A: The numbers are not so bad, but there are 2-3 things happening in this particular sector. Some kind of pricing power seems to be getting back, that is point number one.
The talk about FDI will also add a good amount of tailwind or momentum to this sector and particularly to stocks like Jet Airways or SpiceJet . My call is, in the short to medium term may be this could show a reasonably good, about 10-15% kind of a movement on the upside.
But, on a secular long term basis, I don't think that airlines have generated enough confidence at any point of time that they can still generate good free cash and sustain its business on a longer term basis. Longer term is a different ballgame, but in the short to medium term possibly it can show a reasonable upside.
Q: A quick word on a couple of these big numbers that we have lined up next week, what would you watch out for closely? You have something like Tata Motors , Bharti , SBI , any positive surprises or even negatives that you would expect this time around?
A: SBI will be very keenly watched because they have had enough problems in the past about the asset quality and more importantly NIMs, which probably seems to be coming off from its pretty high level to what they are at the moment. Our analysts’ assessment is that the NIMs will come off and asset quality issue will still persists for some time to come.
So, how bad that is going to be is something which I think the street will be very keenly watching. There won't be any great positive surprise as far as SBI is concerned. Probably, SBI would react on the results and we would look to buy it at somewhat lower than the current levels at the moment.
As far as the other results are concerned, Bharti will be something which people will be very keenly watching as to how the ARPUs are moving and what kind of capex the company is talking about, how the cash flows are going to move because the capital intensity of the business has gone up for Bharti and for the telecom companies.
That's one stock which a lot of people have bought and its kind of a very core portfolio. That will be very keenly watched. I don’t expect anything great out of Bharti in this particular quarter, but the kind of outlook they are going to talk about is something which I will be keen to know.
Ranbaxy is one of our favourite stocks which we will be keenly watching as to how the things are unfolding there. We are pretty confident that Ranbaxy is something which one should hold in the long term portfolio over the next 18-24 months.
Europe ...problems not over....US says...
| Europe still biggest headwind to global recovery: US |
| Comments contrast with other members of Group of 20 leading economies, who said US' own fiscal problems will loom largest at G20 meetings |
| Reuters / Washington Nov 03, 2012, 01:55 ISTEurope's financial crisis remains the biggest hurdle to global economic recovery and will be in focus at a meeting of world finance chiefs in Mexico City this weekend, a senior U.S. Treasury official said on Friday. "Recognising that Europe remains the strongest headwind to global growth, there will be considerable interest among the G20 on the European crisis response," the official said. The comments contrast with those from some other members of the Group of 20 leading economies, who said the United States' own fiscal problems will loom largest at the G20 meetings. The senior U.S. Treasury official, who spoke with reporters on condition of anonymity, also said the meetings will focus on further measures to be taken by countries in emerging economies to strengthen domestic demand and loosen exchange rate policy. The official focused particularly on China, which still has "further to go" in having a flexible exchange rate - although it has allowed the yuan currency to appreciate recently. http://www.businessstandard.com/india/news/europe-still-biggest-headwind-to-global-recovery-us/194244/on |
ALL ABOUT WIPRO...Azim Premji NEW PLANS.....
Wipro: From a vegetable oil maker to an IT major
Wipro was established by Mohamed Hasham Premji in 1945 as a vegetable oil manufacturer in Amalner, Maharashtra. It was then known as Western India Products Ltd. Its main area of business was production of sunflower vanaspati oil. Later on, it moved to soaps and other consumer care products.
The company filed for IPO in February 1946. In 1966, after Hasham Premji's death, the business was taken over by his son Azim Premji, who was then 21.
In 1977, the company changed its name to Wipro Products Ltd. In 1982, the company was renamed Wipro Ltd.
Wipro ventured into the IT business in 1981. Today, it has over 130,000 employees and clients across 54 countries.
It was listed on the New York Stock Exchange in October 2000.
In February 2001, Wipro became the first Indian IT company to get ISO 14001 certification.
Wipro has been ranked 1st in the 2010 Asian Sustainability Rating of Indian companies and is a member of the NASDAQ Global Sustainability Index as well as the Dow Jones Sustainability Index.
In November 2012, the company de-merged its non-IT businesses. The demerger means Wipro will hive off three units — Wipro Consumer Care & Lighting, Wipro Infrastructure Engineering and Medical Diagnostic Product & Services business — into a separate unlisted company called Wipro Enterprises.
Wednesday, October 31, 2012
SANDY--SEVERE ECONOMIC IMPACT..!!!
Storm Keeping Millions From Work May Slow Economic Growth
By Jeff Kearns - Oct 31, 2012 10:35 PM GMT+0530Atlantic superstorm Sandy may cut U.S. economic growth as it keeps millions of employees away from work and shuts businesses from restaurants to refineries in one of the nation’s most populated and productive regions.The storm may cut output in the world’s largest economy by $25 billion in the fourth quarter, according to Gregory Daco, a U.S. economist at IHS Global Insight. He said that could reduce the fourth quarter pace of growth to a range of 1 percent to 1.5 percent, from the firm’s earlier estimate of 1.6 percent.Sandy lashed a region with 60 million people -- about as many as Italy -- that accounts for about a quarter of the $13.6 trillionU.S. economy, estimated Eric Lascelles, the Toronto- based chief economist at RBC Global Asset Management Inc. It forced the temporary closings of U.S. financial markets, halted air and rail service and idled workers for the federal and state governments from Virginia to Massachusetts.“If people aren’t going to Broadway shows and restaurants and hotels, all those businesses that rely on people spending money are going to take a hit for sure,” said Stephen Bronars, a senior economist at Welch Consulting in Washington and an adjunct professor at Georgetown University. “People are still going to go out and buy a car or other durable goods they need, they’re just not going to do it this week. There will be winners and losers.”
Slower Growth
The storm may reduce gross domestic product by as much as 0.2 percentage point this quarter, said Mark Vitner, a senior economist at Wells Fargo & Co. in Charlotte, North Carolina. The cost in lost output may come to about $30 billion, he said. The storm will probably have “a modest negative effect of a few tenths of a percentage point” on retail sales, construction spending, and industrial production in October, Goldman Sachs Group Inc. economists led by New York-based Jan Hatziuswrote in a note to clients today. The indicators then may show “slightly stronger growth than would otherwise have been the case” into the first few months of 2013, they said.....................http://www.bloomberg.com/news/2012-10-30/hurricane-sandy-may-slow-economy-as-workers-stay-at-home.html
Tuesday, October 30, 2012
LIC SOLD BLUE CHIPS....
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Booking profit in the recent stock market uptrend, state-run insurance giant LIC offloaded shares worth over $1 billion in half of the 30 Sensex companies, including in RIL and ICICI Bank, in last quarter.
As the markets rallied higher on the back of robust inflows from foreign investors attracted by a slew of economic reform measures, the country's largest institutional investor LIC (Life Insurance Corporation of India) trimmed its holding in as many as 15 Sensex companies in July-September quarter.The Sensex rose by nearly 9% or about 1,500 points during this three-month period. As per the latest shareholding data disclosed by Sensex firms, LIC's holding fell the most in companies like Cipla (by about two percentage points), ICICI Bank, HDFC Bank, Mahindra & Mahindra and GAIL (about one percentage point each).
Besides, the public sector insurer also pruned its stake in HDFC, RIL, L&T, SBI, Tata Motors, Sun Pharma, Maruti Suzuki and Tata Power by about half a percentage point during the quarter.
The total value of shares sold by LIC in these companies is estimated at around Rs 5,850 crore (over $1 billion). At the same time, LIC's exposure rose in seven Sensex companies -- Wipro, Bharti Airtel, Hero MotoCorp, Infosys, TCS, Bajaj Auto and Hindalco Industries.
LIC is estimated to have purchased fresh shares worth about Rs 2,300 crore in these companies.
Government-run LIC, which pumped around Rs 45,000 crore in stocks last year, kept its holdings almost unchanged in four blue-chips -- ITC, ONGC, BHEL and Hindalco. The shareholding patterns of two Sensex companies, Jindal Steel and Coal India, do not mention LIC as a shareholder. Last fiscal, LIC had helped in recapitalisation of a slew of public sector banks, which was of help to the lenders given the weak government finances, and was the major subscriber to shares sold by the government in ONGC in March this year.
http://www.businessstandard.com/india/news/lic-trims-holding-in-15-sensex-firms-by-1-bn/193618/on
http://www.businessstandard.com/india/news/lic-trims-holding-in-15-sensex-firms-by-1-bn/193618/on
UBS LOST $2.3 billion - rogue trader
I lost control: Accused UBS rogue trader
Published: Tuesday, Oct 30, 2012, 21:13 IST
Agency: Reuters Former UBS trader Kweku Adoboli told a London court on Tuesday he had "lost control" of his trading in the summer of 2011 but insisted he never acted dishonestly in the frantic weeks that resulted in losses of $2.3 billion.
Agency: Reuters Former UBS trader Kweku Adoboli told a London court on Tuesday he had "lost control" of his trading in the summer of 2011 but insisted he never acted dishonestly in the frantic weeks that resulted in losses of $2.3 billion.
Adoboli also attacked the culture of investment banks, arguing that compliance rules were "aspirational" and that traders knew they had to bend rules to achieve the goals set by senior management. The 32-year-old British-educated Ghanaian, who used to be a senior trader on the Exchange Traded Funds (ETFs) desk at UBS's London offices, was arrested on September. 15, 2011.He denies two counts of fraud and four of false accounting.
The prosecution says he traded far in excess of his risk limits and concealed his positions with fictitious accounting. Adoboli says everything he did was for the benefit of UBS. The ex-trader said his troubles started on July 1, 2011, when, under intense pressure from fellow traders and managers, he abandoned a long-standing bearish stance and flipped his trading position to a long one.
Just after he did so, the market started to sell off. "I lost control. The result of that loss of control was an increasing number of breaks (accounting problems), a more frantic trading activity, a less controlled decision-making process," he said...http://www.dnaindia.com/world/report_i-lost-control-accused-ubs-rogue-trader_1758131
'Rogue trader' weeps as tells court he acted for good of UBS
Published: Friday, Oct 26, 2012, 23:25 IST
Place: London | Agency: Reuters
Place: London | Agency: Reuters
Former UBS trader Kweku Adoboli wept on Friday as he told a jury that his "off-book" trading was done for the benefit of the bank that meant everything to him. Addressing the court for the first time in his long-running trial in London, Adoboli said he had no reason to believe he was doing anything wrong since he was doing it to generate profits and colleagues knew about it.
"UBS was my family and every single thing I did, every single bit of effort I put into that organisation, was for the benefit of the bank," said Adoboli, his voice breaking as he wept and thumped the witness box with his hand. "That is everything I lived for ... To find yourself in Wandsworth Prison for nine months because all you did was worked so hard for this bank," he said through tears.
The 32-year-old British-educated Ghanaian was arrested on September 15, 2011, and blamed for losses of $2.3 billion. He was in custody until he was granted bail in June 2012. He has pleaded not guilty to two counts of fraud and four of false accounting, covering the period between October 2008 and September 2011.
The prosecution says Adoboli traded far in excess of his authorised risk limits, concealed his unhedged positions by booking fictitious hedges, and lied to the back office when asked questions about his accounts. Adoboli said he had developed an accounting mechanism he called his "umbrella" which allowed him to keep certain trades and the profits they generated "off-book".http://www.dnaindia.com/money/report_rogue-trader-weeps-as-tells-court-he-acted-for-good-of-ubs_1756610
Monday, October 29, 2012
Worst Storm in 100 Years...Exchanges Close Trading Floors
Worst Storm in 100 Years Seen for Northeast U.S.By Brian K. Sullivan and Matthew Brown - Oct 26, 2012 6:14 PM GMT+0530,
Hurricane Sandy will probably grow into a “Frankenstorm” that may become the worst to hit the U.S. Northeast in 100 years if current forecasts are correct.Sandy may combine with a second storm coming out of the Midwest to create a system that would rival the New Englandhurricane of 1938 in intensity, said Paul Kocin, a National Weather Service meteorologist in College Park, Maryland. The hurricane currently passing the Bahamas has killed 21 people across the Caribbean, the Associated Press reported, citing local officials.“What we’re seeing in some of our models is a storm at an intensity that we have not seen in this part of the country in the past century,” Kocin said in a telephone interview yesterday. “We’re not trying to hype it, this is what we’re seeing in some of our models. It may come in weaker.”The hybrid storm may strike anywhere from the Delaware- Maryland-Virginia peninsula to southern New England. The current National Hurricane Center track calls for the system to go up Delaware Bay and almost directly over Wilmington, Delaware, just southwest of Philadelphia, on Oct. 30-31.The hurricane center warns the track is subject to change.
Sandy’s Impact
“Users are reminded to not focus on the details of the track forecast late in the period, as Sandy is expected to bring impacts to a large part of the U.S. East Coast early next week,” the center said.A tropical-storm watch was issued from Savannah River northward to Oregon Inlet in North Carolina, the NHC said in an advisory. A tropical storm warning is in effect for Florida’s east coast from Ocean Reef to Flagler Beach. A storm watch means tropical storm conditions are possible within the region, a warning means tropical storm conditions are expected.As of 8 a.m. New York time, Sandy was a Category 1 hurricane with winds of 80 miles (129 kilometers) per hour, down from 100 mph earlier, according to the hurricane center in Miami. It was 15 miles east of Great Abaco Island in the Bahamas and 480 miles south-southeast of Charleston, South, Carolina, moving northwest at 10 mph.............http://www.bloomberg.com/news/2012-10-25/u-s-east-from-washington-to-nyc-at-risk-from-hurricane-sandy.html
Exchanges Close Trading Floors as Hurricane Sandy Nears
By Nina Mehta, Whitney Kisling and Inyoung Hwang - Oct 29, 2012 6:13 AM GMT+0530The New York Stock Exchange and New York Mercantile Exchange canceled floor trading as Hurricane Sandy barreled toward New York City with the threat of a 10-foot storm surge and winds of 70 miles per hour.
The market operators said trading would occur normally on their electronic platforms. NYSE Euronext took the action after city and state officials declared emergencies and suspended public transportation, according to a statement on its website. The NYSE plans to maintain the contingency plan for using its Arca exchange through Oct. 30, Joseph Mecane, head of U.S. equities, said on a conference call in which some member firms opposed opening the stock market at all.“It was a very tough call,” Larry Leibowitz, the chief operating officer of NYSE Euronext, said in a telephone interview. “It was mostly done out of an abundance of caution. This isn’t a war. Why would we ask for heroic action by putting people in harm’s way and separating them from their families during something that seems like a 100-year storm?”..........http://www.bloomberg.com/news/2012-10-28/nymex-to-close-floor-for-sandy-as-nyse-nasdaq-see-normal-open.html
Sunday, October 28, 2012
S&P downgrades BNP Paribas.....
S&P downgrades BNP Paribas, 2 other French banks
@CNNMoneyInvest October 25, 2012: 4:08 PM ETNEW YORK (CNNMoney) -- Credit agency Standard & Poor's has cut its ratings on BNP Paribas and two other major French banks, citing the rising economic risks that they face.
The downgrade, which came after the market closed in Paris Thursday, also cut the ratings for Banque Solfea and Cofidis."We see them as more exposed to this more difficult European environment," said the statement from S&P. "In our view, the economic risks under which French banks operate are increasing, leaving [them] moderately more exposed to the potential of a more protracted recession in the eurozone." The downgrades might not be the last to hit France's banking system. While S&P left the credit ratings unchanged for 11 other major banks, it changed the outlook on those ratings to negative from stable, suggesting that future downgrades were possible. That group includes Societe Generale, Credit Agricole and Allianz Banque.
France, the No. 2 economy in the EU behind Germany, is facing a stagnant economy, although it's not in as much trouble as many other countries that are struggling with the European sovereign debt crisis. Its gross domestic product, the broad measure of its economic activity, has been unchanged since the third quarter of last year, although that's better than 0.2% decline in GDP that the eurozone as a whole posted for the second quarter. Many nations in Europe are now mired in recession. And France's unemployment rate in August was 10.6%, only slightly better than the 11.4% rate across the eurozone............http://money.cnn.com/2012/10/25/investing/french-banks-downgrade/index.html
NIFTY RISE ON ONLY POLICY DECISIONS...????
ON 17th Sep-12 Nifty touched a high of 5652. From that date the
positive momentum took place, bounced that it could make the low above 5650
from 21st Sep-12. The gains continued un-interrupted, to touch a
high of 5815 on 5th Oct-12 and could continue stay above 5650. On
Friday, 26th Oct-12, Nifty closed at 5664 level. If we consider this
umbrella formation gives us a FALL signal. Otherwise, the long one and half
month consolidation has to give us a decent up move up-to 6080-6135 level with
our any doubt. The current BULL run started from 4800 level form 1st
June-12, took some breath at 5350 level the resumed un interrupted journey till
it touched 5815 level.
The
PSU banks like PNB, IOB, BOI.. results disappointed, made some alarm sound on the raising NPAs.
So the banks like PNB, CANBANK, BOI and IOB lost more than 5-7% is a big
concern on these BULLS favoring days, on the other hand the good results
produced private banks like AXIS, KOTAK and ICICI rise was capped. At this
juncture, the markets are looking at RBI for rate cuts. The HUL results are
good but the fell more than 2% is a negative sign. The ITC results are well
accepted by the markets but ITC recently touched yearly High at 299 but closed
at 285 levels. The major supports to markets are being expected from the POLICY
makers- Reforms are the best option available now.
As
of now, the world markets in BULL grip, so the fall is always a threatening to
bears to go short. So I expect markets fall due to lack of BULL support but not
due to heavy BEAR hammering. In my earlier posting clearly mentioned that the
DAX has good support at 7150, so it bounced from that level but weaker vigor.
The markets are now watching the EURO problems with SPAIN ,
GREECE
Similarly,
In India Nifty has very good support at 5500-5450 level, if the bear pressure
will start pushing the Nifty down below 5400 and likely to go up-to 5080. As of
now the markets at cross roads, so markets may get positive move or saved by
RBI credit policy on 30th Oct-12. The Bank Nifty now closed at 11510
levels just above the support level placed at-11420 level.
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