Tata Communication To Acquire Sri Lanka’s Suntel TATA Communications (TCL) is set to acquire Sri Lanka’s second-largest land-based telephone company Suntel. TCL (formerly VSNL) which was acquired by the Tata's following the governments divestment in 2002,has received the approval of the government, which still owns 26% stake in the company, for the proposed acquisition. TCL gets govt nod to acquire Sri Lanka’s second-largest land-based telephone company The acquisition will be routed through the company's wholly-owned subsidiary Tata Communications Lanka In 2008,TCL attempted to buy Suntel for $90 million, but it was outbid by other players Sources said this time the bid would be smaller than the previous one since Suntel's performance has not been in line with growth projections. 4TH OCTOBER 2010
US Jobless Scene May Not Paint A Pretty Picture THE jobless rate probably rose in September for a second month as the year-old US recovery failed to generate enough jobs to keep up with a growing labor force, economists said before a report this week. Unemployment climbed to 9.7% from 9.6% in August, according to the median estimate of 62 economists surveyed by Bloomberg News ahead of an October 8 report from the Labor Department. The data may also show companies added 77,000 workers to payrolls, and total hiring stagnated amid cuts in government staffing as the decennial census wound down. A lack of jobs is restraining consumer spending, the biggest part of the economy, and underscores the Federal Reserves concern that the rebound from the worst recession since the 1930s has been too slow to develop. Economists surveyed by Bloomberg project unemployment will average at least 9% through 2011. The US has a difficult labor market and mediocre GDP growth, said Ryan Sweet, a senior economist at Moody's Economy.com in West Chester, Pennsylvania. Bloomberg 4TH OCTOBER 2010
Global Economy May Shrug Off US Slump 5TH OCTOBER 2010 Goldman Sachs predicts worldwide growth will slow 0.2 percentage point to 4.6% in 2011,even as expansion in the US falls to 1.8% from 2.6%. The number of contracts to purchase previously owned homes in the US rose for a second month, a sign the housing market is beginning to stabilize. The National Association of Realtors index of pending home resale's rose 4.3% in August, more than forecast, after a revised 4.5% gain the prior month Orders for US capital goods rose in August more than previously estimated, a sign firms are replacing outdated equipment. Orders for non-military capital goods excluding planes increased 5.1%,the biggest gain since March, said the Commerce Department.
Now, Nano Direct From Showroom Customers can finally buy Tata Nano directly from showrooms in select states as Tata Motors moves to end booking system for the worlds cheapest car. Tata Motors started open sales of the Rs.1-lakh car in Maharashtra, West Bengal, Uttar Pradesh and Karnataka on Tuesday, making it possible for people to purchase the car directly from dealers instead of booking it. Customers in these states that have not booked a Nano so far can now purchase the Nano directly from showrooms, the company said in a statement. Customers will be able to take a closer look at and test drive the Tata Nano across all Tata Motors dealerships and special Nano access points, it said. Last year, Tata Motors had selected 1.55 lakh customers for delivering the car in two phases. It is in the process of delivering the car to the first one lakh customers, which will be completed by the end of this year. 6TH OCTOBER 2010
BMW Launches Auto Finance Arm In India WORLDS largest luxury carmaker BMW Group has entered into auto finance business in India through its global finance arm, BMW Financial Services, to support its customers and dealers to boost sales volume in the country. The finance entity, which is a wholly-owned subsidiary of the BMW Group, has received the license to operate as a non-banking finance company (NBFC) from the Reserve Bank of India. BMW Financial Services will be based in Gurgaon and has been set up with an initial investment of $50 million. BMW Financial Services, which operates in 31 countries besides India and has a 3 million global customer base will have three business verticals in India retail, finance, commercial finance (for the BMW dealerships) and auto insurance solutions. 7TH OCTOBER 2010
Red Sox Owners Buy Liverpool THE Liverpool board has agreed to sell the club to the owners of baseball's Boston Red Sox but the fate of England's most successful side could yet be decided in the courts as a bitter ownership dispute rages on. The English Premier League club said on Wednesday it had accepted an offer from the New England Sports Ventures (NESV) but the deal is unlikely to be a straightforward one as the club could first face a legal challenge from its current owners. Liverpool Chairman Martin Broughton said he was disappointed the current owners had "tried everything to prevent the deal from happening" but added the agreement offered a good solution for a side enduring its worst start to a season for more than half a century. "I am delighted that we have been able to successfully conclude the sale process, which has been thorough and extensive, "Broughton said in a statement on the club's website (www.liverpoolfc.tv). The legal dispute over board membership will be a key part of whether the sale actually goes ahead, although with an October 15 deadline looming for the RBS debt to be refinanced, advantage seems to be with the prospective owners rather than incumbents. 8TH OCTOBER 2010
IMF Steps In To Mend Global Currency Rift THE International Monetary Fund on Thursday sought to head off a battle over currency values and restore global economic co-operation strained by an uneven recovery from the financial crisis. IMF managing director Dominique Strauss-Kahn said at a news conference that a weakening in the spirit of co-operation that grew out of the crisis was regrettable and said an adjustment in currency values must be part of economic rebalancing. I think its fair to say that momentum is not vanishing, but decreasing and that's a real threat, he warned. Everybody has to keep in mind this mantra that there is no domestic solution to a global crisis. Strauss-Kahn said he disliked the notion that a currency war was brewing because the term was too military, but conceded its fair to say that many do consider their currency as a weapon and that's certainly not for the good of the global economy. The United States has repeatedly expressed frustration with the slow pace at which the Yuan is rising. China held the Yuan stable during the financial crisis, but in June promised to let it respond more freely to market forces, but since then it has risen only about 2% against the US dollar. 9TH OCTOBER 2010