Daily Markets, Economy and Tech. Sector – 15Dec 2011

Global – Economy and Market

  • Fed won’t further stimulate U.S. economy for the time being

The Federal Reserve said it doesn’t plan to further stimulate the U.S. economy, whose growth is strengthening as the year ends. The central bank described the economy as "expanding moderately" and promised to keep interest rates low.

Debt crisis pushes developed economies to the edge

LONDON – The sovereign debt crisis crippling the euro zone still threatens other developed economies, leaving Britain and Japan teetering on the edge of recession but with the United States seen several paces away from a slump, a Reuters poll found.

EU to start trade talks with Egypt, Jordan, Morocco, Tunisia

BRUSSELS – European Union governments agreed on Wednesday to start trade talks with Egypt, Jordan, Morocco and Tunisia, with the aim of lowering trade barriers and bolstering economic growth in the North African and Middle Eastern states, the EU executive said.

ECB’s Weidmann opposes bond-buy boost, coy on IMF

FRANKFURT – European Central Bank policymaker Jens Weidmann reiterated his opposition to the ECB ramping up its bond purchases and said his Bundesbank would only provide fresh funds for the IMF to help fight the euro zone crisis if countries beyond Europe do so too.

China sees more protectionism due to U.S., EU problems

GENEVA – China expects trade disputes to increase next year as global markets contract due to European and U.S. economic weakness, China’s trade minister Chen Deming said on Wednesday.

Italy bond costs hit new high, Germany’s near zero

Italy paid 6.47 percent to sell five-paper just minutes after Berlin placed 4 billion eurosof two-year bonds at an average yield of just 0.29 percent – a sign of how strongly cautious investors favour safety over returns.

U.S. stock index futures signal early gains

* U.S. stock index futures pointed to a higher open on Wall Street on Wednesday, with futures for the S&P 500 up 0.36 percent, Dow Jones futures up 0.21 percent and Nasdaq 100 futures up 0.24 percent at 1000 GMT.

Europe debt woes prompt year-end flight from risk

Asian shares fell into bear market territory for the year and commodities and the euro nursed stinging losses on Thursday, after fears that Europe’s debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries.

India – Economy and Market

  • Nov inflation eases to 9.11% MoM, yet too high

Hopes have been just crushed. November inflation has eased to 9.11% (MoM) vs 9.73 % in October. This is much higher than estimates as most experts were expecting inflation to drop below 9%.CNBC-TV18 poll had estimated it to be 8.93%.

The data shows food inflation tumbled to 8.54% in November from more than 11% in October, while fuel inflation increased to 15.48% from 14.79% and manufacturing inflation increased marginally, to 7.7%

Tax authorities unearth $12.3 bln unaccounted money – Mukherjee

NEW DELHI – Tax authorities have unearthed 660 billion rupees of unaccounted money, the finance minister told the parliament on Wednesday, as part of the government’s efforts to curb tax evasion.

Government can do little to check rupee slide: Rangarajan

The slide in rupee, which fell to a new low of 53.75 against a dollar Wednesday, is driven by external factors especially general appreciation in the value of greenback.

Credit growth picks up again after a lull

After seeing a slowdown in the previous fortnight, commercial loans have again picked up in the latest fortnight ended December 2, 2011.

Government clears Rs 8,400 crore interest subsidy fund for power distribution sector

The government on Tuesday approved Rs 8,400 crore interest subsidy scheme for power distribution projects.

Rajesh Exports to import more gold for retail thrust

India’s Rajesh Exports , the world’s biggest jewellery maker, expects to raise gold imports 17 percent next year to power its renewed thrust.

Manmohan Singh sees FDI in retail after March – Bloomberg

NEW DELHI – Prime Minister Manmohan Singh expects to succeed in his push to open the domestic retail market to foreign companies after regional elections conclude by the end of March, according to an interview published by Bloomberg on Wednesday.

Indian shares shed 0.8 pct; sticky inflation disappoints

Indian rupee seen hitting new low again, The rupee is expected to open around 53.80 to the dollar and move in a range of 53.60 to 54.10, traders said.

Technology News –

  • India Inc not to trim 2012 IT budgets; plans to spend $25 billion next year: Poll

The focus of most of the companies next year is to keep maintenance costs flat and put money on new services.

Mid-sized IT company MindTree may miss Q3 target; bullish on long term growth: KK Natarajan, CEO

“Despite a traditionally weak quarter, MindTree’s revenue growth will top 2.5% to 3 % this quarter, which still tops industry rates,” he said.

Nokia enters mobile wallet service

Nokia India today launched its own standalone mobile wallet service to provide a secure and convenient alternative to cash on a mass scale to cellphone customers.

Lenders, investors shun debt-laden 3i Infotech; prospect of distress sale looms

3i’s market cap has collapsed by Rs 900 crore so far this year, it has struggled to pay salaries and may be forced to sell assets.

World’s cheapest tablet Aakash goes on sale for Rs 2500 online

Datawind, the maker of world’s cheapest tablet has put up for sale about 30,000 tablets online at a price of Rs 2500 each, with a delivery period of 7 days.

After overtaking Apple as the world’s largest, Samsung smartphones set to dethrone Nokia in India

If Samsung is on a roll, Nokia too is on a comeback trail and nobody dares to write it off in the great Indian smartphone battle.

Dell to increase focus on small & medium businesses

Dell India said that there were close to eight million SMBs in the country, of which about 1.5 million were adressable by IT.

Internet base in India crosses 100 million mark: What does it mean for businesses that can ride on this?

When an industry body announced in Nov crossing of that milestone, it was seen as a representation of the buzz being felt in the Indian Internet space.

Yahoo shares fall after Goldman derides company

Yahoo shares dropped on Wednesday after Goldman Sachs advised investors to sell the struggling Internet company’s stock.

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Daily_Markets_Eco_15Dec2011.doc

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