India Inc honchos Ratan Tata, Mukesh Ambani and others are likely to explore measures to boost bilateral business ties during their brainstorming session over breakfast with US Secretary of State, Hillary Clinton tomorrow.
Clinton is scheduled to arrive in the city tonight on an official visit to India during which high-level discussions are likely to promote bilateral co-operation in the $30 billion Indian civil nuclear power programme and the the $43 billion bilateral trade.
She will be flying-in from the Czech Republic capital, Prague.
India's top businessmen are expected to meet her at the iconic Taj Hotel. The sea-facing hotel bore the brunt of a terror attack in November last year.
Clinton is expected to meet Ratan Tata who leads India's premier conglomerate, the Tata group, along with other top industrialists like Mukesh Ambani of Reliance Industries and Godrej group Chairman Adi Godrej.
A few top Tata group officials are also expected to attend the meet.
Infosys founder N R Narayana Murthy's wife Sudha Murthy, who is deeply involved with Corporate Social Responsibility (CSR) activities and Chanda Kochhar, who heads India's largest private sector bank, ICICI, are also expected to interact with the US Secretary of State.
Gita Piramal is also understood to be one of the invitees from India Inc.
This is Hillary Clinton's first visit to India after assuming charge as the US Secretary of State in the Obama administration early this year.
The global economic meltdown has particularly affected the United States. The measures taken by its government to beat the recession are likely to be discussed in the meet.
India's relatively strong growth of 6 per cent and its resilient economy has emerged as a strong focus area for the US in recent years and Clinton's visit is expected to give a further boost to the burgeoning trade-ties between the two countries.
Clinton will be staying at the Ratan Tata-owned Taj Hotel's new wing. Usually, foreign dignitaries are put up in the hotel's heritage wing which is under renovation following the November 26 terror strike. She will, therefore, be staying in the tower section of the hotel.
Friday, July 17, 2009
GE Second-Quarter Profit Falls on Finance, Health (Update3)
July 17 (Bloomberg) -- General Electric Co. reported a 47 percent decline in second-quarter profit as a global recession hurt the finance, health care and NBC Universal divisions, contributing to a bigger drop in sales than analysts predicted.
Revenue dropped 17 percent to $39.1 billion, trailing the average estimate of $41.9 billion in a Bloomberg survey, and GE fell in early trading. Profit from continuing operations declined to $2.87 billion, or 26 cents a share, from $5.39 billion, or 54 cents, a year earlier, the Fairfield, Connecticut-based company said in a statement today. The average estimate was for profit of 24 cents a share.
“While revenue looks light to us, the company’s solid execution, notably in energy and aviation, supported earnings and cash flows,” said Joel Levington, an analyst at Hyperion Brookfield Asset Management in New York.
Investors wary of potential finance losses have cut GE’s market value by more than half in a year, adding urgency to Chief Executive Officer Jeffrey Immelt’s plan to shrink GE Capital. He’s counting on equipment and service orders for products from jet engines to power-plant turbines to support earnings. The order backlog stood at $169 billion at the end of the quarter compared with about $170 billion in May.
GE declined 58 cents, or 3.9 percent, to $11.92 at 8:20 a.m. before the regular open of New York Stock Exchange composite trading, up from an intraday price of $5.73 on March 4, the lowest since December 1991. The stock closed as high as $14.53 in the quarter.
Four Businesses
For GE’s four main businesses, earnings fell in all but Energy Infrastructure, where profit rose 13 percent. Technology Infrastructure earnings declined 11 percent, hurt by pricing pressures in health care and transportation, GE said. Profit dropped 41 percent at NBC Universal.
GE Capital had $590 million in profit, down from $2.9 billion a year earlier, the company said. The division had $149 million in profit before taxes, important to some investors because of tax credits that often help bolster profit.
“In a difficult environment, we are ahead of schedule on our plan to create a more focused financial services company,” Immelt said in the statement.
Cash generated from operating activities was $7.1 billion for the first six months of the year, ahead of GE’s own plan and below last year’s $9.3 billion, as job cuts, office consolidations and plant efficiency improvements accelerated profit. Another $2 billion in cost reductions are under consideration for this year, Immelt said in the statement.
Services Backlog
The service contract backlog reached a record $122 billion, up about $2 billion from figures Immelt gave investors in May. Service contracts are more profitable than equipment sales alone.
GE is targeting more than 400 stimulus projects worth $200 billion worldwide, Immelt said. While little has been realized so far this year, he said GE expects more in the second half.
GE is seeing “few green shoots” in businesses that include medical-imaging machines and jet engines, John Rice, the vice chairman overseeing those units, said in June. GE Aviation secured more than $8 billion in equipment and service orders at the Paris Air Show last month.
Gains of 2 cents a share in the quarter were more than offset by 3 cents to pay for restructuring and another 4 cents a share for marks and impairments in the finance businesses.
GE Capital
The finance arm is tracking toward a March forecast for profit this year of $2 billion to $2.5 billion under the Federal Reserve’s so-called base case for the economy, Michael Neal, the vice chairman who oversees the segment, said in a June 15 interview.
Immelt already aims to shrink the GE Capital balance sheet to $400 billion to $450 billion from about $637 billion last year, and to have the unit provide no more than about 30 percent of total profit, down from about half last year. GE plans a detailed review of the finance division in a July 28 meeting.
GE has already issued about $12 billion, or about a third, of the $35 billion to $40 billion it plans to refinance in 2010. The company has “prefunded” all of the $45 billion it planned to refinance this year.
Federal Programs
The company, which didn’t take money from the Federal Reserve’s Troubled Asset Relief Program, can take advantage of two government programs. One allows GE Capital to issue long- term debt insured by the Federal Deposit Insurance Corp., and the other gives it the ability to sell into the Commercial Paper Funding Facility set up by the Fed, which it tapped once.
GE has reduced its commercial paper balances to $50 billion from about $74 billion at the beginning of the year, the company said today.
When the FDIC program expires, GE should be able to fund its smaller balance sheet, Neal said.
Revenue dropped 17 percent to $39.1 billion, trailing the average estimate of $41.9 billion in a Bloomberg survey, and GE fell in early trading. Profit from continuing operations declined to $2.87 billion, or 26 cents a share, from $5.39 billion, or 54 cents, a year earlier, the Fairfield, Connecticut-based company said in a statement today. The average estimate was for profit of 24 cents a share.
“While revenue looks light to us, the company’s solid execution, notably in energy and aviation, supported earnings and cash flows,” said Joel Levington, an analyst at Hyperion Brookfield Asset Management in New York.
Investors wary of potential finance losses have cut GE’s market value by more than half in a year, adding urgency to Chief Executive Officer Jeffrey Immelt’s plan to shrink GE Capital. He’s counting on equipment and service orders for products from jet engines to power-plant turbines to support earnings. The order backlog stood at $169 billion at the end of the quarter compared with about $170 billion in May.
GE declined 58 cents, or 3.9 percent, to $11.92 at 8:20 a.m. before the regular open of New York Stock Exchange composite trading, up from an intraday price of $5.73 on March 4, the lowest since December 1991. The stock closed as high as $14.53 in the quarter.
Four Businesses
For GE’s four main businesses, earnings fell in all but Energy Infrastructure, where profit rose 13 percent. Technology Infrastructure earnings declined 11 percent, hurt by pricing pressures in health care and transportation, GE said. Profit dropped 41 percent at NBC Universal.
GE Capital had $590 million in profit, down from $2.9 billion a year earlier, the company said. The division had $149 million in profit before taxes, important to some investors because of tax credits that often help bolster profit.
“In a difficult environment, we are ahead of schedule on our plan to create a more focused financial services company,” Immelt said in the statement.
Cash generated from operating activities was $7.1 billion for the first six months of the year, ahead of GE’s own plan and below last year’s $9.3 billion, as job cuts, office consolidations and plant efficiency improvements accelerated profit. Another $2 billion in cost reductions are under consideration for this year, Immelt said in the statement.
Services Backlog
The service contract backlog reached a record $122 billion, up about $2 billion from figures Immelt gave investors in May. Service contracts are more profitable than equipment sales alone.
GE is targeting more than 400 stimulus projects worth $200 billion worldwide, Immelt said. While little has been realized so far this year, he said GE expects more in the second half.
GE is seeing “few green shoots” in businesses that include medical-imaging machines and jet engines, John Rice, the vice chairman overseeing those units, said in June. GE Aviation secured more than $8 billion in equipment and service orders at the Paris Air Show last month.
Gains of 2 cents a share in the quarter were more than offset by 3 cents to pay for restructuring and another 4 cents a share for marks and impairments in the finance businesses.
GE Capital
The finance arm is tracking toward a March forecast for profit this year of $2 billion to $2.5 billion under the Federal Reserve’s so-called base case for the economy, Michael Neal, the vice chairman who oversees the segment, said in a June 15 interview.
Immelt already aims to shrink the GE Capital balance sheet to $400 billion to $450 billion from about $637 billion last year, and to have the unit provide no more than about 30 percent of total profit, down from about half last year. GE plans a detailed review of the finance division in a July 28 meeting.
GE has already issued about $12 billion, or about a third, of the $35 billion to $40 billion it plans to refinance in 2010. The company has “prefunded” all of the $45 billion it planned to refinance this year.
Federal Programs
The company, which didn’t take money from the Federal Reserve’s Troubled Asset Relief Program, can take advantage of two government programs. One allows GE Capital to issue long- term debt insured by the Federal Deposit Insurance Corp., and the other gives it the ability to sell into the Commercial Paper Funding Facility set up by the Fed, which it tapped once.
GE has reduced its commercial paper balances to $50 billion from about $74 billion at the beginning of the year, the company said today.
When the FDIC program expires, GE should be able to fund its smaller balance sheet, Neal said.
Call for 17th july
RESEARCH-Nifty(FUT) R-4280/4335/4430 S-4235/4180/4135;Sensex(CASH)
R-14435/14625/14950 S-14305/14115/13980;MARKET OUTLOOK:VOLATILE
9:46 AM 7/17 RESEARCH: MARKET OUTLOOKn the F&O front, The NIFTY futures trading at a discount of 6.55 points against spot market suggesting weak sign. The NIFTY July futures open interest has declined by 1.83 percent with negative cost of carry. This indicates squaring-off of old positions and lack of any new positions might result in a sideways or weak trend in the market. The NIFTY Put Call Ratio is suggesting range bound market. Considering above said factors, NIFTY seems to have limited upside from current levels. If NIFTY breaks above 4305 on daily closing basis, investors are advisedto go long on NIFTY as fresh long positions can be expected to build up in the July futures contract; until then trade cautiously as NIFTY would remain volatile. Above 4305 levels, it can move towards 4362 and 4382
9:48 AM 7/17 RESEARCH-Global Market (in %): DOW JONES (+1.11%), S&P 500 (+0.86%), NASDAQ (+1.19%), FTSE (+0.35%), DAX (+0.58%), NIKKEI (+0.53%), HANG SENG (+1.34%) & SGX NIFTY (+28 POINTS)
11:23 AM 7/17 RESEARCH: INTRADAY CALL (FUTURES): NIFTY BROKEN OUR FIRST TGT 4330
RESEARCH: OPTIONS STRATEGY: LONG STRANGLE ON ITC: BUY 230 CALL @ 3.75 BUY 210 PUT @ 1.95. UPPER BEP = 235.70, LOWER BEP = 204.30. MAXIMUM PROFIT = UNLIMITED, MAXIMUM LOSS = RS. 6412.50. HOLD IT FOR ONE WEEK.
(7/17/2009 12:40:37 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(+0.6%), DAX (+0.9%), CAC (+0.7%)
R-14435/14625/14950 S-14305/14115/13980;MARKET OUTLOOK:VOLATILE
9:46 AM 7/17 RESEARCH: MARKET OUTLOOKn the F&O front, The NIFTY futures trading at a discount of 6.55 points against spot market suggesting weak sign. The NIFTY July futures open interest has declined by 1.83 percent with negative cost of carry. This indicates squaring-off of old positions and lack of any new positions might result in a sideways or weak trend in the market. The NIFTY Put Call Ratio is suggesting range bound market. Considering above said factors, NIFTY seems to have limited upside from current levels. If NIFTY breaks above 4305 on daily closing basis, investors are advisedto go long on NIFTY as fresh long positions can be expected to build up in the July futures contract; until then trade cautiously as NIFTY would remain volatile. Above 4305 levels, it can move towards 4362 and 4382
9:48 AM 7/17 RESEARCH-Global Market (in %): DOW JONES (+1.11%), S&P 500 (+0.86%), NASDAQ (+1.19%), FTSE (+0.35%), DAX (+0.58%), NIKKEI (+0.53%), HANG SENG (+1.34%) & SGX NIFTY (+28 POINTS)
11:23 AM 7/17 RESEARCH: INTRADAY CALL (FUTURES): NIFTY BROKEN OUR FIRST TGT 4330
RESEARCH: OPTIONS STRATEGY: LONG STRANGLE ON ITC: BUY 230 CALL @ 3.75 BUY 210 PUT @ 1.95. UPPER BEP = 235.70, LOWER BEP = 204.30. MAXIMUM PROFIT = UNLIMITED, MAXIMUM LOSS = RS. 6412.50. HOLD IT FOR ONE WEEK.
(7/17/2009 12:40:37 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(+0.6%), DAX (+0.9%), CAC (+0.7%)
Thursday, July 16, 2009
China’s Economic Growth Accelerates to 7.9% on Loans (Update1)
July 16 -- China’s gross domestic product grew 7.9 percent in the second quarter as the nation became the first of the major economies to rebound from the global recession.
The figure, announced by the statistics bureau in Beijing today, exceeded the 7.8 percent median forecast of 20 economists in a Bloomberg survey and a 6.1 percent gain in the first quarter that was the slowest in almost a decade.
China, the biggest contributor to global growth, overtook Japan as the world’s second-largest stock market by value yesterday after a 4 trillion yuan ($585 billion) stimulus package spurred record lending and boosted share prices. The first-half expansion laid the foundation for meeting the year’s 8 percent growth target for creating jobs and maintaining social stability, the statistics bureau said today.
“The pace of the recovery is even quicker and stronger than we initially expected,” said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong, who raised his growth forecast after today’s report. “There’s clear evidence that this infrastructure-led recovery is going to be more sustainable than many people expected.”
The yuan traded at 6.8312 against the dollar as of 5:30 p.m. in Shanghai, from 6.8315 before the data were released. The Shanghai Composite Index closed 0.2 percent lower.
‘Not Yet Firm’
The foundation of China’s recovery is “not yet firm” and the government will stick to its “moderately loose” monetary policy and “proactive” fiscal stance, statistics bureau spokesman Li Xiaochao said.
China accounted for a third of global expansion last year, according to International Monetary Fund data using purchasing- power-parity calculations to account for exchange-rate differences.
The global economy will shrink 1.4 percent this year, including a 2.6 percent contraction in the U.S. and a 6 percent decline in Japan, the IMF said in a July 8 report. Emerging economies, led by China, are set to regain growth momentum in the remainder of this year, helping the world to recover from the worst slump since World War II, the IMF said.
“China’s growth is getting back on track after being pulled down by the global export slump,” said David Cohen, an economist with Action Economics in Singapore. “It’s leading the turnaround in the global economy.”
Urban Spending
Urban fixed-asset investment surged 35.3 percent in June from a year earlier, the statistics bureau said. The 33.6 percent gain for the first half was the biggest in five years. Industrial production increased 10.7 percent in June from a year earlier, the largest gain in nine months excluding seasonal distortions. Retail sales climbed 15 percent.
An infrastructure spending boom is helping companies from China Southern Power Grid Co. to China Merchants Property Development Co.
“China still faces difficulties including shrinking external demand, falling corporate profits and declining fiscal revenue,” Li said. “We’re still facing great pressure in generating jobs.”
China’s economy is the only one of the world’s 10 biggest still expanding. The People’s Bank of China sold today one-year and three-month bills at the highest yields this year, guiding money-market rates higher to slow record growth in money supply.
$2 Trillion Reserves
The nation’s foreign-exchange reserves, the world’s biggest, rose to a record $2.132 trillion last quarter as the central bank sold yuan to prevent an appreciation that would make the country’s exports more expensive.
Tim Condon, chief Asia economist at ING Groep NV, said the central bank may raise the one-year lending rate as early as the first quarter of next year.
“Growth may accelerate to near 9 percent in the third quarter and 10 percent in the fourth quarter,” said Lu Ting, an economist at Bank of America-Merrill Lynch in Hong Kong. “The government won’t tighten policies too early but it should tell banks not to lend without limit.”
The government must prevent abnormal growth in loans as they could trigger inflation and financial risks, the financial and economic affairs committee of the National People’s Congress said, the official Xinhua news agency reported.
Morgan Stanley, JPMorgan Chase & Co., Royal Bank of Scotland and UBS AG raised growth forecasts for China today. The economy will expand 9 percent in 2009 and 10 percent in 2010, Morgan Stanley said in an e-mailed note.
Social Stability
China is targeting faster growth to maintain stability after the loss of millions of migrant workers’ jobs and ahead of the 60th anniversary of Communist Party rule in October. Ethnic riots in Urumqi in the northwestern Xinjiang province on July 5 left at least 192 people dead.
The GDP rebound snaps a two-year run of progressively slower growth. Shanghai’s benchmark stock index has climbed almost 90 percent from last year’s low, led by PetroChina Co. and Industrial & Commercial Bank of China Ltd.
The economy grew 7.1 percent in the first half from a year earlier. Consumption contributed 3.8 percentage points and investment accounted for 6.2 percentage points, with a decline in the trade surplus shaving off 2.9 percentage points.
Consumer prices fell 1.7 percent in June from a year earlier, the fifth monthly decline and the biggest drop since 1999, today’s data showed. Producer prices slid a record 7.8 percent.
The figure, announced by the statistics bureau in Beijing today, exceeded the 7.8 percent median forecast of 20 economists in a Bloomberg survey and a 6.1 percent gain in the first quarter that was the slowest in almost a decade.
China, the biggest contributor to global growth, overtook Japan as the world’s second-largest stock market by value yesterday after a 4 trillion yuan ($585 billion) stimulus package spurred record lending and boosted share prices. The first-half expansion laid the foundation for meeting the year’s 8 percent growth target for creating jobs and maintaining social stability, the statistics bureau said today.
“The pace of the recovery is even quicker and stronger than we initially expected,” said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong, who raised his growth forecast after today’s report. “There’s clear evidence that this infrastructure-led recovery is going to be more sustainable than many people expected.”
The yuan traded at 6.8312 against the dollar as of 5:30 p.m. in Shanghai, from 6.8315 before the data were released. The Shanghai Composite Index closed 0.2 percent lower.
‘Not Yet Firm’
The foundation of China’s recovery is “not yet firm” and the government will stick to its “moderately loose” monetary policy and “proactive” fiscal stance, statistics bureau spokesman Li Xiaochao said.
China accounted for a third of global expansion last year, according to International Monetary Fund data using purchasing- power-parity calculations to account for exchange-rate differences.
The global economy will shrink 1.4 percent this year, including a 2.6 percent contraction in the U.S. and a 6 percent decline in Japan, the IMF said in a July 8 report. Emerging economies, led by China, are set to regain growth momentum in the remainder of this year, helping the world to recover from the worst slump since World War II, the IMF said.
“China’s growth is getting back on track after being pulled down by the global export slump,” said David Cohen, an economist with Action Economics in Singapore. “It’s leading the turnaround in the global economy.”
Urban Spending
Urban fixed-asset investment surged 35.3 percent in June from a year earlier, the statistics bureau said. The 33.6 percent gain for the first half was the biggest in five years. Industrial production increased 10.7 percent in June from a year earlier, the largest gain in nine months excluding seasonal distortions. Retail sales climbed 15 percent.
An infrastructure spending boom is helping companies from China Southern Power Grid Co. to China Merchants Property Development Co.
“China still faces difficulties including shrinking external demand, falling corporate profits and declining fiscal revenue,” Li said. “We’re still facing great pressure in generating jobs.”
China’s economy is the only one of the world’s 10 biggest still expanding. The People’s Bank of China sold today one-year and three-month bills at the highest yields this year, guiding money-market rates higher to slow record growth in money supply.
$2 Trillion Reserves
The nation’s foreign-exchange reserves, the world’s biggest, rose to a record $2.132 trillion last quarter as the central bank sold yuan to prevent an appreciation that would make the country’s exports more expensive.
Tim Condon, chief Asia economist at ING Groep NV, said the central bank may raise the one-year lending rate as early as the first quarter of next year.
“Growth may accelerate to near 9 percent in the third quarter and 10 percent in the fourth quarter,” said Lu Ting, an economist at Bank of America-Merrill Lynch in Hong Kong. “The government won’t tighten policies too early but it should tell banks not to lend without limit.”
The government must prevent abnormal growth in loans as they could trigger inflation and financial risks, the financial and economic affairs committee of the National People’s Congress said, the official Xinhua news agency reported.
Morgan Stanley, JPMorgan Chase & Co., Royal Bank of Scotland and UBS AG raised growth forecasts for China today. The economy will expand 9 percent in 2009 and 10 percent in 2010, Morgan Stanley said in an e-mailed note.
Social Stability
China is targeting faster growth to maintain stability after the loss of millions of migrant workers’ jobs and ahead of the 60th anniversary of Communist Party rule in October. Ethnic riots in Urumqi in the northwestern Xinjiang province on July 5 left at least 192 people dead.
The GDP rebound snaps a two-year run of progressively slower growth. Shanghai’s benchmark stock index has climbed almost 90 percent from last year’s low, led by PetroChina Co. and Industrial & Commercial Bank of China Ltd.
The economy grew 7.1 percent in the first half from a year earlier. Consumption contributed 3.8 percentage points and investment accounted for 6.2 percentage points, with a decline in the trade surplus shaving off 2.9 percentage points.
Consumer prices fell 1.7 percent in June from a year earlier, the fifth monthly decline and the biggest drop since 1999, today’s data showed. Producer prices slid a record 7.8 percent.
Q+A: India-U.S. ties past, present and future
U.S. Secretary of State Hillary Clinton arrives in India this week against the backdrop of New Delhi's strained relations with neighbor Pakistan, the global slowdown and the war in Afghanistan.
WHERE DO U.S.-INDIA TIES STAND?
New Delhi and Washington are enjoying some of their best-ever relations -- thanks in part to the previous president, George W. Bush, and Indian Prime Minister Manmohan Singh.
Perhaps the biggest leap forward came when both leaders trumped domestic critics to sign a landmark civilian nuclear deal in 2008, worth billions of dollars and ending a 30-year ban on nuclear commerce with India.
Trade has blossomed and years of market reforms have helped India's information technology and outsourcing sectors feed into the U.S. economy.
HAVE THEY ALWAYS BEEN FRIENDS?
No. In the Cold War era, India was a member of the Non-Aligned movement that in theory was independent from the United States and the Soviet Union.
In practice, India bought most of its defense equipment from the Soviets and a chunk of its economy, until liberalization began in earnest in the early 1990s, was under state control.
New Delhi refused to sign the Non-Proliferation Treaty which left it in nuclear isolation -- including from the United States -- for decades. Some loud voices in the U.S. Congress said Bush's nuclear deal had let India off the hook.
Many Indian politicians who grew up in the Cold War era were suspicious of U.S. global dominance -- a legacy of mistrust evident in the Indian left's failed attempt to block the pact.
HAS PAKISTAN'S CLOSENESS WITH THE U.S. BEEN A PROBLEM?
Some in India fear the United States prioritizes Pakistan -- at New Delhi's expense. President Barack Obama needs Pakistan to focus on fighting insurgents in Pakistan and Afghanistan as Pakistan's relations with India have taken a nosedive.
India, which accuses its neighbor of complicity in the Mumbai militant attacks, suspects the United States may let Pakistan off lightly in tackling anti-India militants to keep its ally onside.
There is also a school of thought that, to stop Pakistan from being distracted with India, the two rivals must be coaxed into resolving a dispute over Kashmir.
India sees the fate of the divided region as its own business, and any perceived attempt by the Obama administration to meddle could sour ties.
But Singh and his Pakistan counterpart are set to meet in Egypt this week on the fringes of a summit, which could pave the way for new talks.
WHAT ABOUT TRADE DISPUTES?
India and the United States were at the center of a tariff dispute that brought the Doha world trade talks grinding to a halt in 2008, as India worried an unchecked flood of cheap imports would threaten its millions of poor farmers.
Both sides more recently made the right noises on reaching a consensus. India's trade minister went as far as to say the " "impasse has been broken," but later tempered his remarks.
July's G8 summit may have been another boost to more open trade, as leaders pledged to conclude Doha by 2010.
PROTECTIONISM?
Obama took office in the thick of a global financial crisis and amid fears the slowdown would bring greater protectionism.
Much was made in the Indian media of an Obama attack on companies that ship jobs and profits abroad in which he said they pay lower taxes in Bangalore, India, than in Buffalo, New York.
But India's growing economy, rising status and huge untapped markets will likely remain too tempting a prospect for the United States to turn back the clock.
Clinton may have calmed Indian nerves and set the scene for her India visit when she said in June that bilateral ties needed an "upgrade" and the slowdown was no excuse to "fall back on protectionism."
On the other hand, the WTO chief tempered optimism after the G8 by saying few countries had dismantled dangerous protectionist barriers as the financial crisis continues to bite.
(Editing by Bryson Hull and Vicki Allen)
WHERE DO U.S.-INDIA TIES STAND?
New Delhi and Washington are enjoying some of their best-ever relations -- thanks in part to the previous president, George W. Bush, and Indian Prime Minister Manmohan Singh.
Perhaps the biggest leap forward came when both leaders trumped domestic critics to sign a landmark civilian nuclear deal in 2008, worth billions of dollars and ending a 30-year ban on nuclear commerce with India.
Trade has blossomed and years of market reforms have helped India's information technology and outsourcing sectors feed into the U.S. economy.
HAVE THEY ALWAYS BEEN FRIENDS?
No. In the Cold War era, India was a member of the Non-Aligned movement that in theory was independent from the United States and the Soviet Union.
In practice, India bought most of its defense equipment from the Soviets and a chunk of its economy, until liberalization began in earnest in the early 1990s, was under state control.
New Delhi refused to sign the Non-Proliferation Treaty which left it in nuclear isolation -- including from the United States -- for decades. Some loud voices in the U.S. Congress said Bush's nuclear deal had let India off the hook.
Many Indian politicians who grew up in the Cold War era were suspicious of U.S. global dominance -- a legacy of mistrust evident in the Indian left's failed attempt to block the pact.
HAS PAKISTAN'S CLOSENESS WITH THE U.S. BEEN A PROBLEM?
Some in India fear the United States prioritizes Pakistan -- at New Delhi's expense. President Barack Obama needs Pakistan to focus on fighting insurgents in Pakistan and Afghanistan as Pakistan's relations with India have taken a nosedive.
India, which accuses its neighbor of complicity in the Mumbai militant attacks, suspects the United States may let Pakistan off lightly in tackling anti-India militants to keep its ally onside.
There is also a school of thought that, to stop Pakistan from being distracted with India, the two rivals must be coaxed into resolving a dispute over Kashmir.
India sees the fate of the divided region as its own business, and any perceived attempt by the Obama administration to meddle could sour ties.
But Singh and his Pakistan counterpart are set to meet in Egypt this week on the fringes of a summit, which could pave the way for new talks.
WHAT ABOUT TRADE DISPUTES?
India and the United States were at the center of a tariff dispute that brought the Doha world trade talks grinding to a halt in 2008, as India worried an unchecked flood of cheap imports would threaten its millions of poor farmers.
Both sides more recently made the right noises on reaching a consensus. India's trade minister went as far as to say the " "impasse has been broken," but later tempered his remarks.
July's G8 summit may have been another boost to more open trade, as leaders pledged to conclude Doha by 2010.
PROTECTIONISM?
Obama took office in the thick of a global financial crisis and amid fears the slowdown would bring greater protectionism.
Much was made in the Indian media of an Obama attack on companies that ship jobs and profits abroad in which he said they pay lower taxes in Bangalore, India, than in Buffalo, New York.
But India's growing economy, rising status and huge untapped markets will likely remain too tempting a prospect for the United States to turn back the clock.
Clinton may have calmed Indian nerves and set the scene for her India visit when she said in June that bilateral ties needed an "upgrade" and the slowdown was no excuse to "fall back on protectionism."
On the other hand, the WTO chief tempered optimism after the G8 by saying few countries had dismantled dangerous protectionist barriers as the financial crisis continues to bite.
(Editing by Bryson Hull and Vicki Allen)
Gold zooms pass Rs 15,000, at 52-week high
Extending gains for the fifth day in a row, gold prices surged to a 52-week high here at Rs 15,000 per ten gram on aggressive buying by funds in line with firming overseas trend.
Gold prices added Rs 130 at Rs 15,040 per ten gram, a level last seen on April 2 as stockists and jewellery makers indulged in creating fresh positions ahead of the festival season.
The precious metal in the current five-day rally gathered a handsome gain of Rs 340 per ten gram on sustained buying by stockists and jewellers.
In overseas markets, which normally set price trends here, gold surged to 940 dollar an ounce on the back of a weak US dollar renewing interest in gold as a safe investment.
A similar strength was noticed in silver as coins and jewellery manufacturers indulged in buying, fearing the metal might further rise.
Silver ready rose by Rs 250 at Rs 22,050 per kg and weekly-based delivery by Rs 320 at Rs 21,920 per kg. The metal managed to gain Rs 750 per kg. Silver coins also rose by Rs 200 at Rs 29,300 for buying and Rs 29,400 for selling of 100 pieces.
Standard gold and ornaments spurted by Rs 130 each at Rs 15,040 and Rs 14,890 per ten gram respectively. Sovereign also moved up by Rs 50 at Rs 12,450 per piece of eight gram.
Gold prices added Rs 130 at Rs 15,040 per ten gram, a level last seen on April 2 as stockists and jewellery makers indulged in creating fresh positions ahead of the festival season.
The precious metal in the current five-day rally gathered a handsome gain of Rs 340 per ten gram on sustained buying by stockists and jewellers.
In overseas markets, which normally set price trends here, gold surged to 940 dollar an ounce on the back of a weak US dollar renewing interest in gold as a safe investment.
A similar strength was noticed in silver as coins and jewellery manufacturers indulged in buying, fearing the metal might further rise.
Silver ready rose by Rs 250 at Rs 22,050 per kg and weekly-based delivery by Rs 320 at Rs 21,920 per kg. The metal managed to gain Rs 750 per kg. Silver coins also rose by Rs 200 at Rs 29,300 for buying and Rs 29,400 for selling of 100 pieces.
Standard gold and ornaments spurted by Rs 130 each at Rs 15,040 and Rs 14,890 per ten gram respectively. Sovereign also moved up by Rs 50 at Rs 12,450 per piece of eight gram.
Tata Motors to deliver first Nano on Friday
Tata Motors Ltd, India's largest vehicles maker, said on Thursday it would deliver the Nano, the world's cheapest car, to its first customer on Friday.
Chairman Ratan Tata had showcased the Nano at an auto show in New Delhi in January last year, but consumer bookings began only in April this year after the project was delayed due to land disputes at its planned site in the eastern state of West Bengal.
The plant for producing the Nano was shifted to a new site in Gujarat on the west coast, but the first batch of Nanos would come from its car plant in Pantnagar in northern India.
Tata has assured price protection for the first 1,00,000 customers, for whom the cars will be available for Rs 1,00,000 excluding taxes.
Chairman Ratan Tata had showcased the Nano at an auto show in New Delhi in January last year, but consumer bookings began only in April this year after the project was delayed due to land disputes at its planned site in the eastern state of West Bengal.
The plant for producing the Nano was shifted to a new site in Gujarat on the west coast, but the first batch of Nanos would come from its car plant in Pantnagar in northern India.
Tata has assured price protection for the first 1,00,000 customers, for whom the cars will be available for Rs 1,00,000 excluding taxes.
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