Global Business

Global Corporate

1 Microsoft gives Yahoo three weeks

Computer software giant Microsoft has given Yahoo a three-week deadline to respond to its offer to buy out the internet company for $44.6bn (£22.3bn). Microsoft CEO Steve Ballmer said his company would take its case directly to Yahoo's shareholders if Yahoo's directors did not respond by 26 April. Microsoft made an unsolicited bid on 31 January, but Yahoo's board rejected it as substantially underrating its value. Yahoo has since explored alliances with other firms, but no offer has surfaced. In a letter, Mr Ballmer acknowledged that such negotiations were underway, but wondered why Yahoo was not talking to Microsoft too. This is despite the fact that our proposal is the only alternative put forward that offers your shareholders full and fair value for their shares, he wrote.

5th April 2008, www.bbc.co.uk

2 M&S offers leadership concessions

Marks & Spencer has offered shareholders concessions over controversial plans to name Sir Stuart Rose as executive chairman. In March, M&S said chief executive Sir Stuart would stay with the firm for an extra two years, until 2011, and be made executive chairman from 1 June. But shareholders criticised the plan saying it gave too much responsibility to one executive. Concessions include yearly elections for Sir Stuart and no pay increase. Other measures proposed in the letter to shareholders, include appointing Sir David Michaels as deputy chairman while maintaining his position as a senior independent director. The retailer also said two new executive directors would be appointed and significantly enlarged responsibility would be given for the group finance and operating director. And to ensure the board has a majority of independent directors, the firm would hire an additional non-executive director, said M&S. The board is very conscious of the governance arguments companies should split the roles of chairman and chief executive as it is undesirable to have too much concentration if authority in one person, said the letter.

3rd April 2008, www.bbc.co.uk

3 MySpace in online music project

Networking site MySpace is to launch an online music service in partnership with three major music companies. The new service MySpace Music is being launched with Universal Music, Sony BMG Music and Warner Music. Users of the new service will be able to listen to music and watch music videos free of charge, while paying a fee to download music. The website will also make money from advertising and selling merchandise like ring tones and concert tickets. However, the exact terms of the deal were not disclosed. The one major record firm excluded from the partnership was EMI.The new music service is seen as a possible competitor to Apple iTunes Music Store, which has dominated the digital music market.

3rd April 2008, www.bbc.co.uk

4 iTunes biggest US music seller

Apple's iTunes has overtaken supermarket group Wal-Mart to become the largest music retailer in the US, an independent study has said. Market research firm NPD said iTunes surpassed Wal-Mart in January and February if 12 downloads are considered equal to the sale of one CD album. Steve Knopper, a reporter for Rolling Stone magazine, said the news showed the big change in music retailing. iTunes has sold more than four billion songs since its launch in 2003. Eddy Cue, iTunes vice president, said the Apple unit was thrilled by the findings of the NPD survey.

4th April 2008, www.bbc.co.uk

5 Alitalia announces new chairman

Italian airline Alitalia has announced a new chairman, after takeover talks with Air France-KLM collapsed. The firm said Aristide Police would take over the position a day after Maurizio Prato resigned when talks to reach agreement with unions failed. The firm said it would assess its finances and tell the government by 8 April whether it could survive. Having earlier failed to reach an agreement, unions said on Thursday they would be prepared to negotiate again. Mr Prato had warned unions that the firm risked going bankrupt unless a deal was reached. Alitalia, whose board had spent Thursday in emergency meetings after Mr Prato's departure, said the board was still looking at the takeover offer in order to assure the firm's profitability even though the deadline has passed.

6th April 2008, www.bbc.co.uk

6 POSCO eyes Daewoo Ship

South Korea's POSCO said on Thursday it was considering a rise in steel prices, easing fears that rising raw material costs will hit its earnings, and lifting its shares to a four-week high. The company, the world's fourth largest steelmaker, also said it may bid for Daewoo Shipbuilding, which analysts say could fetch nearly $5.1 billion. The long-awaited sale is expected to attract a range of bidders, from steelmakers, such as POSCO, which would be able to lock in a major buyer of its product, to conglomerates, seeking to invest in a business whose profit is set to double this year.

4th April 2008, www.financialexpress.com

7 Samsung launches product new range

Korean consumer durables maker Samsung has launched a range of 'Freshtech' refrigerators in the Indian market, along with new models of microwave ovens. Driven by the new launches, the company is targeting 50 per cent increase in both the categories. "The 2008 Freshtech range of refrigerators is differentiated on account of retaining the freshness and nutrition value of the fruits and vegetables being stored," Samsung India Deputy Managing Director R Zutshi said while launching the new range. The series of refrigerators has been introduced in the capacity segments between 230 L to 345 L in Frost-free priced between Rs 13,000 to Rs 23,500.

2nd April 2008, www.financialexpress.com

8 Alcoa suffers from dollar slump

Aluminium giant Alcoa has reported that its earnings for the first three months of 2008 were less than half that achieved in the same period last year. The weak US dollar and high energy costs eroded the benefits of high metal prices, the US group said. The first Dow Jones-listed firm to post first quarter profits, it said net income rose to $303m (£152.2m), down from $662m last year. The results show how big a problem inflation has become, analysts said. Upstream margins were squeezed by higher energy costs and a weaker US dollar, but the global market remains tight and prices are near historic highs, primarily driven by demand in Asia, especially China said Alain Belda, Alcoa chairman and chief executive. The weak US currency wiped $68m off Alcoa's earnings, it said. I think this is more of an indication that inflation is a bigger problem than people understand," said Peter Schiff, president of Euro Pacific Capital. It's driving costs higher, and even companies that you would think would benefit from it are having trouble because the cost pressures are very strong. But, ultimately, you're going to get big increases out of Alcoa in their prices as well, he added.

8th April 2008, www.bbc.co.uk

9 Yahoo lukewarm on Microsoft bid

Internet search engine Yahoo says it is "not opposed" to Microsoft's takeover bid, but wants a better price. The letter from Yahoo's board was a swift response to a deadline issued at the weekend by Microsoft CEO Steve Ballmer for Yahoo to agree to the deal. Microsoft warned if the deal was not accepted by 26 April, it would mount a hostile takeover at a lower price. The software giant made an unsolicited $44.6bn (£22.3bn) takeover offer for Yahoo on 31 January. But Yahoo rejected the deal, saying it substantially underrated the company's value and prospects.

7th April 2008, www.bbc.co.uk

Global Outsourcing

10 Xinify Technologies Announces Clarity Application Management Outsourcing

Xinify Technologies, a leader in providing IT Management and Governance solutions, today announced their new Clarity solutions offering - Clarity Application Management Outsourcing (CAMO). Using their Clarity Centers of Excellence in Mexico and India, Xinify can manage a client's Clarity infrastructure remotely as well as provide testing, development and production environments along with hosting plans. The unique combination of dual-shore (near-shore and offshore) resources means clients can receive additional Clarity development resources and constant support services across every time zone, twenty-four hours a day, seven days a week, 365 days a year. Dual-shore teams are the next generation outsourcing model for businesses looking for lower risk and lower cost options to manage their application portfolios. The first wave of outsourcing previously offered low-cost, off-shore development labor, but today firms are demanding new, less risky, more integrated, lower cost options for applications that are strategic, complex, or mission-critical. A dual-shore, integrated delivery model with domestic management teams reduces a client's risk and overall project cost. Supported by a facility in India and Mexico, Xinify delivers the cost-competitive quality required to improve a company's bottom line. Customers can work with a second shift for a project team and expand the workday up to 16 hours (based on time zone differences) or just expand a development team and double manpower and output with reduced cost.

4th April 2008, www.tutorial-reports.com

11 Intertek Launches REACH Outsourcing Program

Intertek the leading provider of quality and safety solutions and outsourcing services to a

wide range of industries worldwide, has launched a new outsourcing program to further aid companies' compliance with new REACH(1) legislation in the EU. The outsourcing program complements Intertek's existing REACH services which include registration, 'only representative' services for non-EU based companies, supplier audit and verification, and testing services. Intertek's REACH outsourcing includes project management, project planning, infrastructure for gathering data from the supply chain, regulatory support, SIEF(2) management, dossier creation, supplier auditing, chemical management, and chemical testing services.

5th April 2008, www.tutorial-reports.com

12 Innodata Isogen Named to 2008 Global Outsourcing 100

Innodata Isogen (NASDAQ: INOD), a leading provider of knowledge process outsourcing services, as well as publishing and related information technology services, announced today that it has joined the ranks of the world’s leading outsourcing providers on the International Association of Outsourcing Professionals (IAOP) Global Outsourcing 100. The Global Outsourcing 100 recognizes leading service providers that have demonstrated the highest levels of ability and achievement throughout the industry.

The companies on this year's Global Outsourcing 100 list represent the elite of our field, hailing from every corner of the globe and providing an extensive array of cutting-edge services," says Michael F. Corbett, IAOP chairman. “The Global Outsourcing 100 list has become the definitive go-to resource that companies use to make better informed outsourcing decisions and comparisons of providers. Organizations were evaluated on a number of criteria, including customer experience, financial health, growth rates, depth and breadth of competencies, employee selection and training, and management capabilities. Rising Stars are defined as fast-growing companies that are rapidly expanding client relationships through outsourcing services that meet a broad range of emerging needs.

6th April 2008, www.tutorial-reports.com

13 Siemens; Outsourcing is an increasing tendency in subway services

Outsourcing has become an increasing tendency in Brazilian subway services, German multinational Siemens' transportation systems commercial area manager Marco Missawa told BNamericas. Companies are focusing more on their core business and outsourcing other services, such as maintenance and performance control, according to Missawa. Siemens is one of the leading companies in the Brazilian outsourcing market and it expects increased opportunities to arise as subway operators focus more on transportation services. We offer solutions to save travel time and reduce accidents with software that controls maintenance, for example, so operators are choosing it. It is possible to see a tendency in which operators are signing contracts with outsourcing services to improve subway services, Missawa said.

5th April 2008, www.tutorial-reports.com

14 Bookkeeping Services India Introduces New Outsourcing Services

Bookkeeping Service ranging from high volume transaction processing to high value financial analysis and reporting is carried out by highly experienced bookkeeping services professionals with the requisite chartered accounting certifications. The services are available at 50 dollar absolutely free for bookkeeping services. With great wealth of knowledge, deep industry expertise, and state-of-the-art of the bookkeeping accounting technology, highly skilled bookkeeping outsourcing services professionals, Bookkeeping Services India pass on best results to the clients belonging to diverse domains such as banking and finance, insurance, retail, manufacturing, transportation, automotive, pharmaceutical, and media and entertainment and expert staff, the company offers a professional bookkeeping and accounting to businesses. The service is guaranteed to provide accurate, timely and cost effective accounting. Located in West End (London), Bookkeeping Services India is an expanding business that provides Absolutely Free 50 Dollar Bookkeeping services is an important process of any outsourcing firm that assist Online Bookkeeping Services, Bookkeeping and Accounting Services, Account Payable, Account Receivable, Bank Reconciliation, Payroll Processing, General Ledger, Bookkeeping Accounting Services to clients throughout the local area. Founded in 2000 the company has 12 years experience in the Bookkeeping, Accounting, and Financial and Business Process Outsourcing sector.

5th April 2008, www.tutorial-reports.com

Global Economy

15 EU suffers defeat in banana wars

European Union import duties on bananas flout global trade rules, the World Trade Organization (WTO) has ruled. The WTO case was brought by Ecuador, which, along with other Latin American countries, claims the EU favours Caribbean and African producers. The EU said it was considering appealing against the ruling. The ruling is the latest in a series of WTO decisions against the EU's banana regime - the longest running dispute in WTO history. If the ruling is upheld, Ecuador will be able to impose trade sanctions on the EU. It's a big victory for us, said Cesar Montano Huerta, from Ecuador's WTO mission. But we are still hoping to come out with a solution and negotiations for this issue. Ecuador, the world's biggest banana exporter, first brought the case in 1996 with Guatemala, Honduras, Mexico and the US.

7th April 2008, www.bbc.co.uk

16 IMF plans gold sale to raise $6bn

The International Monetary Fund (IMF) has proposed selling some of its gold holdings as part of radical plans to shore up its troubled finances. It hopes to raise at least $6bn (£3bn) from the sale of 12.97 million ounces of gold, about 12% of the total held. As the IMF's role as a lender to troubled economies shrinks, so it needs to find other ways to access funds. Gold has surged recently as traders looked for havens to protect their cash from troubled financial markets. The gold sale is dependent on approval by US Congress. It also relies on approval from many of the 185 countries that are members of the Washington-based institution.

6th April 2008, www.bbc.co.uk

17 Credit crunch costs '$1 trillion'

The International Monetary Fund (IMF) has warned that potential losses from the credit crunch will reach $945bn (£472bn) and could be even higher. The IMF says that losses are spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt. It says that there was a "collective failure" to appreciate the risky borrowing by financial institutions. And it warns that tough measures and government intervention may be needed. The IMF's Global Stability Report warns that "despite unprecedented intervention by major central banks, financial markets remain under considerable strain, now compounded by a more worrisome macroeconomic environment, weakly capitalised institutions, and broad-based deleveraging.

8th April 2008, www.bbc.co.uk

18 20 FDI proposals worth Rs 1,962 cr approved

The government has cleared 20 foreign direct investment proposals that will bring in Rs 1,962.05 crore, including Rs 924 crore by UTV Software Communications. The proposals, approved by Finance Minister P Chidambaram on the recommendation of Foreign Investment Promotion Board (FIPB), also included the offer from cement manufacturer Lafarge India for merger of Lafarge India Holding Pvt Ltd with Lafarge India Pvt Ltd, according to the Finance Ministry. The Lafarge's proposal was cleared as per the order of Bombay High Court, a Finance Ministry statement said. UTV Software Communications' proposals would bring in Rs 923.94 crore through equity purchase in UTV Software and equity shares and warrants in UTV Global.

6th April 2008, www.financialexpress.com

19 Duty free tariff preference scheme for LDCs
India's Prime Minister Manmohan Singh on Tuesday announced a duty free tariff preference scheme for least developed countries. Under this scheme, India shall unilaterally provide preferential market access for exports from all the 50 least developed countries, Singh said at the inauguration of the first India-Africa summit. Singh said 34 of these countries were in Africa.
5th April 2008, www.economictimes.com

20 Tremedous growth potential for Indo-US trade: US
top Bush administration official has said that there is "tremendous potential" for the growth of US-India trade and hoped that the two countries would work together for a strong Doha Round Agreement. In terms of US-India trade, we believe there is tremendous potential to grow US-India trade. The bilateral trade policy forum, that just recently met in Chicago, was a good meeting. And we look forward to containing to expand trade between the two countries, US Trade Representative Susan Schwab said while addressing the media at the White House. She was addressing the media on the Colombia Free Trade Pact which the US President George W Bush has sent to Capitol Hill for passage.
4th April 2008, www.financialexpress.com

Global Markets

21 Rupee breaches crucial 40-level against dollar

The Indian rupee breached the crucial 40-level and traded at 40.02/03 against the US currency in late morning deals as Asian equity Markets turned sluggish amid firm greenback in overseas market. In quiet trade at the Interbank Foreign Exchange (forex) market, the local currency traded in a small range of 40.01 and 40.03 after resuming almost steady at 39.96/98 a dollar against its last close of 39.96/97 a dollar. The rupee was trapped in an extremely small range mainly because of weak equity Markets, forex dealers said. Indian benchmark Sensex was down by 206 points in early trade. Asian Markets were sluggish during morning trade.

8th April 2008, www.financialexpress.com

22 Fruits, veggies to stay dearer through summer

Fruit and vegetable prices, up a fifth in the last one month and adding to rising inflation, are likely to climb further in the next three months on restricted supply, traders said. Lack of irrigation across much of the cultivable land and a rise in temperature, usually lead to a fall in output in summer months in India. This year, unseasonal rainfall in March in key vegetable producing states badly affected the new crop. The supply situation is very tight. Arrivals of many vegetables have come down and will remain on lower side for next few months, said Vilas Bhujbal, a vegetable trader in Pune, Maharashtra. Prices of vegetables are unlikely to come down. They may edge up further in the next two months, said Ashok Gavade, a big trader from the Vashi market near Mumbai.

6th April 2008, www.economictimes.com

23 Bonds yield at 8-mth high on inflation fear

Indian bond yields hit an eight-month high on Monday as investors shunned bonds on wariness of possible central bank action to combat soaring inflation and worries about upcoming supplies. The 10-year bond yield ended at 7.99 percent, one basis point higher than Friday's close. It hit 8 percent in early deals, which was its highest since Aug. 16. The market expects a CRR (cash reserve ratio) or a repo rate hike or a combination of both ... everything is possible under the sun, K. Ramkumar, head of fixed income at Sundaram BNP Paribas said. The central bank's action will depend on how inflation unfolds in the coming weeks, he said. Annual wholesale-price inflation surged to 7 percent on March 22, its highest in more than three years and well above the central bank's aim of around 5 percent by the end of 2007/08 fiscal year that ended on March 31.

7th April 2008, www.ecpnomictimes.com

24 NSE grants licence to European funds for ETFs

India's National Stock Exchange has granted licence to funds in London, Frankfurt and Milan to launch exchange traded funds on its main 50-share index, a top official of the exchange said on Monday. Cumulative assets under management of these funds are about $400 million, Ravi Narain, managing director and chief executive officer of NSE, said. To a query on whether the exchange plans to launch futures on its main index in other Markets, he said the only significant market left is U.S. There is no proposal now, but we are certainly thinking about it. Nifty futures are traded on Singapore Stock Exchange, where the volumes have increased substantially since October last, after the India's market regulator banned issue of participatory notes in equity derivatives.

5th April 2008, www.financialexpress.com

25 Rupee steady against US dollar

The Indian rupee held steady at its last closing levels after a firm start against the Greenback on Monday as the central bank reportedly bought dollars to curb the rupee's surge amid encouraging trend in equity Markets. Public sector banks are buying dollars probably on behalf of the Reserve Bank of India, forex dealers said. In quiet trade at the Interbank Foreign Exchange (forex) market, the local currency resumed higher at 39.90/92 a dollar from its last close of 39.95/96 but later lost gains and was quoted at 39.94/95 a dollar in late morning deals. Attributing rupee's better start to firm trend in Asian equity Markets this morning, dealers said the central bank is believed to have stepped in to prevent rupee's surge past the crucial 40 level.

7th April 2008, www.economictimes.com

26 Oil edges closer to $109

Oil prices rebounded on Wednesday, edging closer to $109, as concerns over a decline in gasoline stocks ahead of the US driving season helped keep the market on the boil. US crude futures rose 39 cents to $108.89 by 0139 GMT after the market fell on Tuesday amid profit-taking and the dollar's strength. London Brent crude was up 47 cents at $106.81.The dollar strengthened overnight, but it is still relatively weak to the yen and the euro, and with further interest rate cuts expected, we should see more fund money coming into commodities, said Robert Nunan of Mitsubishi Corp in Tokyo. The dollar briefly rose higher against the yen and euro on Wednesday, supported by reports that Citigroup Inc was close to a sale of leveraged loans and bonds to a group of private equity firms.

7th April 2008, www.financialexpress.com

Compiled by:

Himanshu Gupta
BBA (MAHE) L3,S2 - 3rd Year
Skyline Business School
Hauz Khas Enclave, New Delhi 110 016
Tel: 2686 4848, 2686 6968
www.SkylineCollege.com