Daily Markets, Economy and Tech. Sector – 09 Dec 2011

Compiled by – Dilip Dhanaiya, more information

Global – Economy and Market

  • EU fails to agree on treaty change among 27 states: diplomats

The European Union failed to secure backing from all 27 countries to change the EU treaty at a summit on Friday, meaning any deal will now likely involve the 17 euro zone countries plus any others that want to join, three EU diplomats said.

  • China Nov inflation tumbles, more easing eyed

BEIJING – China’s annual inflation rate tumbled in November to 4.2 percent, the lowest level in more than a year, fuelling expectations of further monetary policy easing to combat deteriorating domestic and international economic conditions.

  • U.S. firms build cash buffer to European crisis in Q3

WASHINGTON – U.S. companies sat on their largest pile of cash on record during the third quarter, providing a substantial buffer against any blow that might come from Europe’s debt crisis, data from the Federal Reserve showed on Thursday.

  • States’ revenues at pre-recession levels: study

WASHINGTON – Total tax revenues of U.S. states returned to pre-recession levels in the 2011 third quarter, a public policy institute reported on Thursday, but revenue growth slowed during the period, a worrisome trend for states concerned that economic clouds are gathering as they begin drafting their budgets for next year..

  • European recession could boost U.S. markets, experts say

A European recession would slow the global economic recovery, but it wouldn’t be all bad for the U.S., said experts at the Wharton School of the University of Pennsylvania. Howard Pack, a professor of business and public policy, said U.S. stock markets could benefit as European investors shift their money to America.

  • ECB cool on more bond buying, lending to IMF

FRANKFURT – The European Central Bank doused hopes on Thursday it will ramp up its bond-buying program to fight the bloc’s debt crisis, unnerving markets hours before a high-stakes EU summit they had hoped would produce a ‘grand bargain’ to end the turmoil.

  • Wholesale inventories rise 1.6 percent in October

WASHINGTON – Inventories at U.S. wholesalers rose more than expected in October, gaining the most in five months, while sales also rose.

  • Wall St falls on dashed euro-zone hopes, Germany’s rejection

– Wall Street fell on Thursday after the European Central Bank dashed hopes that policy-makers were preparing a financial "bazooka" to contain the debt crisis, and Germany rejected some proposals to add power to the euro zone’s bailout fund..

India – Economy and Market

  • Food inflation rate falls to near 3-1/2 yr low

NEW DELHI – India’s annual food inflation eased to its lowest in nearly three-and-a-half years in late November, driven by a sharp fall in prices of vegetables and

  • protein-rich food, bolstering the case for a pause in rates when the RBI reviews policy next week.Y

The primary articles price index was up 6.92%, compared with an annual rise of 7.74% in the prior week.

India’s headline inflation has stayed above 9% for the 11th month in October, despite 13 rate increases by the central bank since March 2010.

  • India Inc fears populist measures and higher fiscal deficit as general elections approach

Businessmen have seen such harsh times before. The common buzzword across corridors of corporate India is to stay in cash and be cautious.

  • After FDI in retail, another jolt for govt in FDI in insurance

NEW DELHI: After the setback on FDI in retail, government was in for another jolt as a Parliamentary Committee has rejected its proposal for raising the foreign investment cap in insurance sector from 26 per cent to 49 per cent.

Apart from various aspects of the insurance bill, the Standing Committee on Finance also asked the government to bring an integrated modern banking law for India, instead of bringing piecemeal amendments.

  • Private equity investments spike up in November

In a complete contrast to the activity in October 2011, PE investment activity improved significantly during November 2011 with the highest number of deals this year. Real estate, hospitality and construction (RHC) sector received the highest value of investments – on the back of three large transactions during the month.

Technology News –

  • Facebook IPO sparks dreams of riches, adventure

(Reuters) – Traveling to space or embarking on an expedition to excavate lost Mayan ruins are normally the stuff of adventure novels.

But for employees of Facebook, these and other lavish dreams are moving closer to reality as the world’s No. 1 online social network prepares for a blockbuster initial public offering that could create at least a thousand millionaires.

  • Analysis: Venture capital funding doubles for online retail

SAN FRANCISCO – Consumers spent a record $1.25 billion on Cyber Monday, according to comScore, highlighting how much people love shopping online.

  • Videocon plans to set up mobile phone facility by next year

Videocon plans to set up its first mobile phone manufacturing plant in India, which could entail an investment of up to Rs 75 crore in the initial phase.

  • Mini-laptop market to shrink by 40 mn in 2012

Tablet computers will eat into the miniature laptop market by 40 million units in 2012, the head of a Taiwanese research institute has said.

  • Microsoft opens global delivery centre in Bangalore

Software major Microsoft on Thursday opened a global delivery centre in this Indian tech hub for providing consulting and enterprise services to its clients worldwide.

  • IBM to buy DemandTec for $440 million

IBM says it is buying DemandTec, a price-management software company, for $440 million in cash to expand its commerce service offerings.

  • Will provide all support to IT sector: Mamata Banerjee

Mamata Banerjee called upon industrialists to generously invest in the IT sector in the state, saying her government was ready to provide all support.

Daily_Markets_Eco_9Dec2011.doc

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