03 March 2011

Deutsche Bank : 3 March 2011 - News Update

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News Headlines
Inflation to ease to 5-6 pct in FY12 - econ adviser (Reuters)
The government expects headline inflation to ease to around 5-6 percent in the
financial year starting on April 1, the  chairman of the prime minister's economic
advisory council, C. Rangarajan said on Wednesday.
India Needs Disruptive Policies to Achieve Growth Challenges (Bloomberg
Finance LP)
India needs disruptive policies and fundamentally different solutions to help meet
future challenges, Mukesh Ambani , told a group of industrialists.
Indian Depositary Receipts Advance on Government's Plan to Reduce Deficit
(Bloomberg Finance LP)
Indian companies’ American depositary receipts rose for a second day as speculation
the government will reduce the deficit and curb inflation with its annual spending plan
offset a surge in oil prices.
Berkshire Hathaway plans India insurance foray (Reuters)
US-based Berkshire Hathaway Inc, said it aims to enter the Indian insurance sector as
a corp. agent of Bajaj Allianz General Insurance.
Cash squeeze seen tighter than expected by end-Mar (Reuters)
Cash conditions in the banking system may be tighter than anticipated by the month
end due to the government's plan to carry forward at least 200 billion rupees of
balances in the next financial year.
January exports up 32.4 pct y/y – govt (Reuters)
India's exports in January rose an annual 32.4 percent to $20.6 billion, while imports
for the month rose 13.1 percent on the year to $28.6 billion.
Jan infrastructure output rises, boosts outlook (Reuters)
The infra. sector output growth picked up in Jan., indicating ind. growth could be
better in fiscal fourth quarter ending March compared with the three months to Dec.
Factory PMI rises, input prices jump (Reuters)
India's manufacturing sector expanded at its fastest clip in three months in February
as more new orders poured in, but input prices rose at a record pace.
Cement companies up price in Mumbai by about 6 rupees (Reuters)
Cement manufacturers increased prices by an average 6 rupees per 50-kg bag in
Mumbai, following a proposal in the budget to restructure the present excise duty.
Auto firms in a fix over new duties (BS)
Car and sports utility vehicle makers say  they’re taken aback by the Union finance
ministry's proposal to bring locally assembled models into the same duty structure as
imported units. They say the move would cripple demand.
India auto sales rise in February (Reuters)
Auto sales in Japan fell for a 6th straight month in Feb., while sales at Indian
automakers cont. to gain ground.
Tata Steel's Riversdale stake hike spells trouble for Rio bid (Reuters)
Tata Steel has raised its stake in Australia's Riversdale Mining, making it harder for
miner Rio Tinto to seal its $3.9 billion bid for the Mozambique-focused coal miner.
Ambuja Cements Feb shipments up 5 pct y/y (Reuters)
Ambuja Cements Ltd, India's No. 3 cement  maker,  said  on  Tuesday shipments in
February rose 5 percent from a year ago to 1.77 million tonnes.
IOC seeks fuel price hike, politics weighs (Reuters)
Indian Oil Corp, the country's biggest fuel retailer, said on Tuesday there was a need
to raise petrol prices, a day after the budget failed to announce any measures to
stem revenue losses of state oil firms.
Fed: Labor Market Strengthened on Manuf., Retail (Bloomberg Finance LP)
The Federal Reserve said the labor market improved throughout the country early this
year, driven by rising retail sales and “solid growth” in manufacturing.
South Korea's Factory Output Growth Accellerates to 13.7% as Exports Rise
(Bloomberg Finance LP)
South Korea’s industrial production growth quickened as overseas demand for the
country’s cars and electronics drive growth in Asia’s fourth-largest economy.
World trade talks risk becoming irrelevant (Reuters)
Nearly a decade of work to forge a new world trade deal risks becoming irrelevant
unless fast-growing developing countries like China, Brazil and India make better
offers to open their markets, U.S. President Barack Obama's administration said.

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