Tuesday, March 20, 2012

ASBM Business Updates Vol. 1(8) 19 March 2012, Monday from Chanakya Central Library, Asian School of Business Management, Bhubaneswar


ASBM Business Updates is a Selective Compilation of Business News from Various Sources. To find details follow the links.
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ASIAN BUSINESS
Piper Jaffray, a mid-sized U.S. investment bank may sell its Asian business to a Chinese securities firm, sources said on Friday, one of several options under consideration.
The mid-sized U.S. investment bank set up shop in Asia in 2006, but failed to gain much ground in a market that became crowded with Western banks and brokers seeking to tap Asia's growth.
In 2007, Piper Jaffray expanded its Asian presence by buying Hong Kong-based investment bank, Goldbond Capital Holdings Ltd. That move was aimed at helping Piper Jaffray tap business from small and mid-sized Chinese companies accessing global capital markets.
Sun Life Financial Inc. (TSX:SLF), Canada's third-largest insurer, has appointed one of its senior executives in Canada to head the financial company's operations in Asia.
Kevin Strain, currently senior vice-president of individual life insurance and investments for Sun Life's Canadian division, will become president of Sun Life Financial Asia later this year
Strain will take over the Asian business in June and succeed Dikran Ohannessian, who is retiring after more than 35 years with the company.
Sun Life's Asian operations range from the Philippines, Hong Kong and Indonesia to India and China and include life insurance, wealth management and other financial services.

ASIAN MANAGEMENT
China’s manufacturing expanded at a faster pace last month and a gauge for India showed sustained growth, indicating that Asian economies are maintaining momentum even as the eurozone debt crisis caps exports.
In China, the purchasing managers’ index (PMI) rose for a third month to 51 last month from 50.5 in January, the Chinese National Bureau of Statistics and China Federation of Logistics and Purchasing said in a statement yesterday.
In India, a purchasing managers’ index released by HSBC Holdings PLC and Markit -Economics was close to an eight-month high.
The mining industry is witnessing an unprecedented merger attempt between two of its biggest players—Glencore International AG and Xstrata PLC—and BlackRock, the world's largest money manager, plays a key role in the deal.
By sheer volume of what it manages, BlackRock has a shareholding of more than 5% in more than 2,000 companies across the world, including a 5.8% stake in Xstrata, making it the second-largest shareholder after Glencore. The mining companies are in talks to create a commodities giant with a market value of nearly $90 billion. Under the current structure, the deal could be blocked if just over 16% of Xstrata's shares are voted against the deal, giving BlackRock sizable influence.

BANKING
In a closely watched display of its firepower, the European Central Bank (ECB) on Wednesday issued to euro zone banks another massive round of the cheap, three-year loans that have helped avert a banking crisis but have not yet revived lending to business and households.
Banks borrowed euro 529.5 billion, or $713 billion, compared to euro 489 billion in December. The ECB said that 800 banks took out loans, compared to 523 in December, as many smaller lenders took advantage of the central bank’s broader collateral rules. The ECB wanted to encourage borrowing by community banks that are likely to lend the money in turn to businesses and consumers.
U.S. stocks rose on Thursday, moving back to 2008 highs, after a jump in bank shares and further upbeat data on the labor market, though sharp gains in oil prices limited the advance.
After losses on Wednesday, the rebound took the S&P 500 back above its 1,370 resistance level, which is seen as key to maintaining momentum in this five-month rally.
Bank shares ranked among the best performers on hopes that the European Central Bank's second long-term liquidity injection would ease the region's financial crisis. The S&P financial sector gained 1.2 percent, led by a 2.9 percent gain in JPMorgan Chase & Co to $40.37.

BUSINESS MANAGEMENT
Wärtsilä has signed a contract to acquire the assets and business of MMI Boiler Management Pte Ltd., the Singapore-based company specialising in the service and maintenance of boilers for marine and industrial applications. MMI Boiler Management has its main operations in Singapore and coverage throughout Southeast Asia and the Pacific region.
The acquisition further strengthens Wärtsilä's boiler services offering and enhances its leading position in the global marine services market. Furthermore, it supports Wärtsilä Services' strategy of constantly developing the offering with value-enhancing services within existing customer segments.
MMI Boiler Management has a strong market position in Southeast Asia and the Pacific region, particularly within the offshore segment. The company's activities include the service, maintenance, repair and installation of boilers, for both marine and land-based customers. MMI Boiler Management's net sales were approximately EUR 5.3 million in 2011, and the company currently has 138 employees.
Coordinated Business Systems, Minnesota's premier information management technology provider, has added unified communications capabilities with the acquisition of Innovative Systems, Inc., effective immediately. According to Jim Oricchio, President of Coordinated Business Systems, "The addition of unified communications to Coordinated's branded managed services positions us as the single source for virtually every aspect of information management and business communications."
"Coordinated is now able to automate and unify telecommunication voice systems, data communication networks, IT systems, mobile devices and videoconferencing into one common context and experience. This will help our customers make faster business decisions and affordably enhance their communications and network systems," added Oricchio. "This new solution includes scalable systems to suit the size and goals of organizations with five to 1,000 employees.

INDIA BUSINESS
Tata Communications Ltd is eyeing Cable & Wireless Worldwide Plc --- a London-listed telecommunications giant with origins steeped in British imperialist history --- signaling the return of India's largest private conglomerate to bulge-bracket global buyouts. The $84 billion Tata Group's telecom arm may be vying with Vodafone Plc for the potential acquisition, which is still in early stages, said sources directly briefed on the matter.

C&W is best known in India as the former sponsors of the West Indian cricket team.The company's association with India goes back to 1870 when it laid the world's biggest submarine cable connection from Mumbai (then Bombay) to Porthcurno in England.
Bharti Airtel plans to replicate its Indian model in the African markets as the company seeks to grow faster, Airtel Africa Manoj Kohli, CEO (international) and joint MD of Bharti Airtel said.

In a ground-breaking move, Airtel in 2003 outsourced its entire backend operations to Ericsson to focus specifically on customer management and brand building, which has since become a norm for the industry across the world.

INDIA MANAGEMENT
Vodafone India Ltd. has made key changes to its top management, creating roles of a chief operating officer and chief commercial officer, according to an internal email seen by Dow Jones Newswires Friday, as the Vodafone Group PLC unit prepares for a possible listing.
India's third-largest mobile phone company by users named Sunil Sood and Sanjoy Mukerji as chief operating officer and chief commercial officer, respectively, Chief Executive Marten Pieters said in the email sent to employees
Unpaid for months and fed up with hollow promises of getting their dues, pilots of Air India-domestic have decided to put the airline on "cash-and-carry " from April 1.

After a meeting of their union on Sunday, it has been left to individual pilots to tell the management that they will fly from next month only if their dues - five months' performance-linked incentive (PLI) and three months' salary - are paid fully or at least substantially.

While many agitated members wanted some immediate action, the union, Indian Commercial Pilots' Association (ICPA), decided against giving a strike call as such protests have only led to promises from the government in the past, which were never kept.

INSURANCE
Greece has not yet triggered payment on controversial bond insurance contracts but market participants still expect Athens' efforts to reduce its debt burden to prompt an eventual payout on credit default swaps.
The International Swaps and Derivatives Association decided on Thursday that Greece had not breached the terms of the insurance contracts by preparing to force losses on private bondholders while exempting official creditors.
However, the story does not end there and holders of the net $3.25 billion in default insurance contracts must wait and see if the next steps in the largest-ever sovereign restructuring will lead to a payout.
A cadre of corrupt doctors and scam artists sought to cheat auto insurance companies out of $279 million in bogus medical claims — the largest-ever fraud involving New York's no-fault law, authorities said Wednesday.
The investigation resulted in federal racketeering, health care fraud, mail fraud and money laundering charges against 36 people, mainly of Russian descent. They include 10 physicians and three lawyers. One had the nickname "KGB."
At a news conference, U.S. Attorney Preet Bharara said while the false claims totaled $279 million, the actual loss to private insurers was $113 million. Some of the ill-gotten gains were spent on vacations in Mexico, shopping sprees at Saks Fifth Avenue and rides in limousines, he said.

INTERNATIONAL BUSINESS
Over the past couple of years, Iceland has started to see a rising interest from foreign businesses wanting to invest in the country. These businesses have either acquired stakes in Icelandic enterprises or made strategic purchases in production and services related to their own international activities.
The growing number of investments is due to the fact that Iceland has systematically made its business environment increasingly attractive for foreign investors and organisations. The country’s investor-friendly environment supports high professional standards and makes it an ideal base for large and small companies.
Wal-Mart Stores Inc. is raising its dividend by 9 percent, continuing a tradition of increasing its annual shareholder payout, but limiting the boost to its smallest percentage since fiscal 2009.
The world's biggest retailer said it will pay a quarterly dividend of 39.75 cents on April 4 to shareholders of record on March 12. That works out to $1.59 per share for the year. The increase follows an almost 21 percent gain in fiscal 2012, which ended in January. And it compares with a hike of just less than 8 percent in fiscal 2009.

LOGISTICS
Western policymakers are itching to release strategic oil stocks after their Iran policies triggered a potentially damaging surge in crude prices, but the logistics issues that dampened the impact of last year’s emergency oil sales are more daunting now.
The temptation to release stocks is great. Leaving aside election year concerns, Western governments have a legitimate concern that rising energy costs may derail the still-fragile economic recovery.

Issues of diplomatic prestige make it very difficult for Western governments to reverse their latest sanctions imposed on Iran over its nuclear program, meaning some sort of palliative for the oil price impact is needed.
DHL Express, the world’s leading express provider, marks its 30th anniversary, celebrating three successful decades of providing services and logistics solutions to exporters and importers in the country.
DHL’s commitment to Pakistan over the last 30 years has seen business evolve and expand over the years. Established in 1982, DHL was the first international express company to provide exporters with fast-tracked international express service.

MANAGEMENT
European fund managers increased their equity holdings in February to a seven-month high, cutting bonds and cash, as the European Central Bank's cheap loans to banks boosted investor risk appetite, a Reuters poll showed on Wednesday.
A monthly survey of 17 asset managers based in continental Europe showed a typical balanced portfolio held 46.6 percent of its assets in equities, the highest since July , against 45.8 last month and up from a cycle low of 41.2 percent in August.
Manufacturing probably accelerated for a fourth straight month in February after Americans picked up the pace of spending a month earlier, economists said before reports today.
The Institute for Supply Management’s factory index rose to an eight-month high of 54.5 from 54.1 in January, according to the median estimate of 78 economists surveyed by Bloomberg News. Readings above 50 signal growth. Consumer purchases in January rose 0.4 percent, the biggest gain in four months, a Commerce Department report may show.
Manufacturers remain at the forefront of the more than two- year-old expansion, aided by corporate investment in equipment, inventory rebuilding and a pickup in the auto industry. Risks to the industry that accounts for about 12 percent of the economy include higher fuel costs and a slowdown in Europe linked to its debt crisis.

ODISHA BUSINESS
NTPC on Saturday said it would invest over Rs 24,000 crore to set up two power projects in Odisha in the 12th five-year plan with a view to augmenting generating capacity by about 4,500 mw in the state.
“Two super thermal power projects will be set up at Darlipali in Sundargarh district and Gajmara in Dhenkanal district at an approximate cost of Rs 24,000 crore,” NTPC Regional Executive Director (East-II), Mr Jayadeb Nanda told reporters here.
Stating that both the projects were proposed to be commissioned during the 12th five-year plan, Mr Nanda said land acquisition was likely to be completed by June this year while the company ready for global tendering for procurement of equipment and machinery.
Paradip Port Trust (PPT) Saturday offered Posco-India to use its facility located barely 12 km from the steel major's proposed captive port site at Jatadhar mouth in Odisha's Jagatsinghpur district.

"PPT has all facilities required by a mega steel manufacturing company. We have proposed the Posco-India authorities to make use of PPT's berths for import and export of materials," PPT Chairman G Jagannath Rao said.

Stating that PPT was quite efficient to handle any cargo of the proposed steel plant, Rao said Paradip Port had skilled man power, extra land, berths and other facilities.

RETAIL
Americans stepped up their spending in February, boosting sales at many stores and offering the latest sign that shoppers are feeling more confident in the economy.
As merchants reported their monthly sales figures Thursday, a diverse group including Target and Macy's reported sales gains that exceeded Wall Street estimates.
In Fort Worth, Pier 1 Imports said its fiscal fourth-quarter sales at stores open at least a year rose 10.3 percent.
Only a small group of retailers report monthly sales figures. But industry watchers say those merchants that do post monthly numbers offer a snapshot of consumer spending, which accounts for more than 70 percent of all economic activity.
Retail sales rose 0.3 per cent in January, following a 0.1 per cent drop in December, according to the Australian Bureau of Statistics. The market had expected 0.3 per cent growth.
The traditional retail sector has fallen on hard times in recent years pressured by slumping domestic demand and the coming of age of online shopping in Australia.
Total annual growth in retail sales, measured by the ABS in 2011, was the weakest on record since 1984.
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The dollar rose as high as $US1.0814 on the retail data, defying weak construction data that was released at the same time. The currency was recently trading at $US1.08, up from $US1.0789 before the announcement.

SUPPLY CHAIN
In mid-February the US Food and Drugs Administration (FDA) announced that several oncologists in California, Texas and Illinois had received what appeared to be a fake replacement for the cancer drug Avastin from their suppliers.

Unlike the genuine article produced by Roche subsidiary Genentech, the false medication did not contain the active ingredient Bevacizumab. According to the FDA it was dangerous as well as ineffective. The oncologists were most likely not sourcing the drug directly from the manufacturer for price reasons. A 400mg dose of the medication costs around SFr2,000 ($2,189). Depending on the illness, a patient has to pay SFr5,000 to SFr10,000 per month for treatment. The costs for a treatment cycle can run from SFr60,000 to SFr100,000.
Supply chain will be ready by autumn for next big quake: Toyota
Toyota Motor will have in place by autumn a more resilient supply chain that would recover within two weeks of another massive earthquake hitting Japan, a top executive said on Friday.
Japanese automakers have been working to disaster-proof their sprawling supply chains ever since last year's March 11 earthquake and tsunami devastated the country's north-eastern coast, forcing many to halt or reduce car production for more than six months.
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Source of Information for this issue : Google alert accessed on March 5, 201­­­­­­­­­­­­­­­­­­­­2

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Compilation
 Sabita Sahu, B.A., PGDCA, MLISc, 
Professional Library Trainee

Concept, Layout and Editing
Rajashekhar Devarai
Chief Librarian


Information and Documentation Division,  Chanakya Central Library
Asian School of Business Management

Shiksha Vihar Bhola,
Barang Khurda Road, Chandaka
Bhubaneswar-754012



Sabita Sahu : Professional Library Trainee and R.S.Devarai : Chief Librarian, Knowledge and Information Services Unit, Chanakya Central Library, Asian School of Business Management, Bhubaneswar. chieflibrarian@asbm.ac.in ; www.asbm.ac.in

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