Daily Markets, Economy and Tech. Sector – 07 Dec 2011

Global – Economy and Market

· U.S. employment indicator reaches 3-year high

The Conference Board’s index of hiring prospects in the U.S. rose to 103.7 last month, from 102.4 in October. It was the highest reading in three years.

· Geithner to see Sarkozy, urge decisive euro action

PARIS – U.S. Treasury Secretary Timothy Geithner meets French President Nicolas Sarkozy in Paris on Wednesday to press for decisive steps towards resolving Europe’s deepening debt crisis as the region’s leaders prepare for a crucial summit this week.

· Euro zone economy edges up in Q3, but heading for slump

BRUSSELS – The euro zone’s economy barely grew in the third quarter, the EU said on Tuesday, with collapsing business confidence and slowing industry pointing to a recession and likely giving the European Central Bank ground for an interest rate cut this week.

· Euro zone leaders may raise esm, efsf capacity limit

REUTERS – Euro zone leaders may decide on Friday to raise the combined lending limit of their temporary and permanent bailout funds to boost the firewall which they hope will contain the spread of the sovereign debt crisis, euro zone officials said.

BRUSSELS – The threat of a credit downgrade to the euro zone’s top economies leaves the bloc’s EFSF bailout fund dangerously exposed, piling yet more pressure on the European Central Bank to step in as lender of last resort.

India – Economy and Market

· Distress in core India industries drives reform hopes

India’s power, telecoms and aviation sectors, core to sustaining the country’s growth, are in various states of crisis. That may prove a good thing, if it forces government to act. Regulations in all three industries have kept prices low and brought power, cellphone service and even air travel to millions of Indians for the first time. The same policies have left many operators battered by losses, debt, and plunging share prices.

· Companies approach banks for recast of over Rs 28,000 cr debt in Q2

NEW DELHI: The economic slowdown has started taking a toll on the banking sector, with a large number of companies approaching banks for restructuring of debt totalling about Rs 28,890 crore in July-September, 2011.

· Big borrowers of India Inc default on Rs 47,000 crore loans

NEW DELHI: Large borrowers, who took loans of Rs 10 crore or more, have defaulted on payments to the tune of Rs 47,000 crore, with banks not even pursuing cases to recover over half the amount.

Data available with the finance ministry shows that least 700 defaulters who had borrowed Rs 10 crore or more from public sector banks and cumulatively owe over Rs 26,000 crore have gone scot free despite not clearing their dues. In another 3,400 cases where loans are of the order of Rs 1 crore or more, the lenders have moved courts and tribunals to recover Rs 21,400 crore.

· India most disappointing among BRIC nations: Goldman’s O’Neill

India’s record on productivity, FDI and reform has been the most disappointing, the chairman of Goldman Sachs Asset Management Jim O’Neill said.

· Indian shares set to open up; retailers watched

NEW DELHI, Dec 7 (Reuters) – Indian shares should open higher on Wednesday on hopes the rupee’s pullback from a slide will encourage foreign fund inflows, traders said. However, investors will be cautious due to the government’s inability to implement key policy reforms. Retailers will be in focus ahead of Finance Minister Pranab Mukherjee’s speech in parliament about the government’s stand on retail reform, which was put on hold amid widespread criticism.

Technology News –

· Wipro consolidating services into single business operations unit

Wipro is combining information systems, global delivery and business application to streamline delivery and bring in greater automation at the backend.

· Zensar partners Google to offer apps to retail, other sectors

NEW DELHI: Software services firm Zensar today said it has partnered with Internet search giant Google to provide the latter’s enterprise solutions suite ‘Google Apps’ in Asia Pacific ( APAC) region to retail and manufacturing firms

· Nasscom maintains growth forecast of 16-18% for IT industry

NEW DELHI: Software industry body Nasscom today maintained its growth projection of 16-18 per cent for the sector in this fiscal, notwithstanding concerns over economic uncertainty in global markets.

· Facebook acquires mobile application firm Gowalla

NEW YORK: Social networking website Facebook has acquired mobile application firm Gowalla for an undisclosed amount.

The Gowalla application allows people to share their location and favorite places with friends.

· Belkin to increase Indian channel partners to 30,000

KOLKATA: Belkin, a US-based provider of interconnectivity solutions across computing and consumer electronic devices, is planning to increase its channel partners in India from 17,000 to 30,000 by September next year, targeting over 60 percent growth in its sales revenue.

"We are extremely bullish about the growth in 2012 in India. We are eyeing 60 percent year-on-year revenue growth in the year starting from October 2011 to September, 2012," Belkin India Private Limited managing director Mohit Anand told reporters after announcing the launch of wired and wireless keyboards and mouse range here Tuesday.

· Online uproar as India seeks social media screening

NEW DELHI – India has urged social network companies including Facebook, Twitter and Google to remove offensive material, unleashing a storm of criticism from Internet users complaining of censorship in the world’s largest democracy.

· McAfee cuts 3 percent of workforce

REUTERS – Security software maker McAfee laid off about 250 workers, equivalent to 3 percent of its workforce, in a bid to focus on core businesses and improve efficiency in a market led by rival Symantec.

Daily_Markets_Eco_7Dec2011.doc

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