Friday, September 4, 2009

Market Outlook 4th Sep 2009

INTRADAY calls for 04th Sep 2009
+ve script Zeenews.Hoteleela,Indswift
BUY GAIL-357 for 365-373+ with sl 352
BUY RCOM-291 for 298-304+ with sl 288
BUY GSFC-157 for 163-169+ with sl 154
BUY SUZLON-100 for 104-108+ with sl 98
Positional
BUY Escorts-75 for 90-98+ with sl 74
BUY Petronet-74 for 81+ with sl 71
 
NIFTY FUTURES LEVEL
RESISTANCE
4604
4634
4662
4690
4718
SUPPORT
4577
4563
4535
4507
Buy ARCHIES;TODAYS WRITING PRODUCT 
 
Strong & Weak  futures
This is list of 10 strong futures:
Aban Off shore,  Bhushan Steel, Mphasis, DCHL, Chennai Petro, Tata Motors, Unitech Ltd, Oracle Fin Serv, Rcomm & ICSA.
And this is list of 10 Weak futures:
ACC Ltd, Tata Steel, Dr Reddy, India Cements, Sesa Goa Ltd, Power Grid, Reliance, KFA, MLL & Mtnl Ltd.
 Nifty is in Up trend

 
NIFTY FUTURES (F & O): 
 Above 4604 level, expect short covering up to 4632-4634 zone and thereafter expect a jump up to 4660-4662 zone by non-stop.
Support at 4577 level. Below this level, selling may continue up to 4563-4565 zone by non-stop.

Below 4535-4537 zone, expect panic up to 4507-4509 zone by non-stop.

On Positive Side, cross above 4688-4690 zone can take it up to 4716-4718 zone. Supply expected at around this zone and have caution.
 
Short-Term Investors:  
Bearish Trend. 3 closes below 4623.80 level, it can tumble up to 4092.20 level by non-stop.
SL triggered. 3 closes above 4623.80 level, expect short covering up to 4889.60 level by non-stop.
 
BSE SENSEX:  
Higher opening expected. Recovery should start. 

Short-Term Investors:  
Short-Term trend is Bearish and target at around 14235 level on down side.
Maintain a Stop Loss at 15973 level for your short positions too.

 
POSITIONAL BUY:
Buy ARCHIES (NSE Cash)
 
Uptrend may continue.
Mild sell-off up to 117 level can be used to buy. If uptrend continues, then it may continue up to 129 level for time being. 

If crosses & sustains at above 136 level then uptrend may continue.

Keep a Stop Loss at 110 level for your long positions too.
 
Buy TODAYS WRITING PRODUCT (NSE Cash) 
Uptrend may continue.
Mild sell-off up to 36 level can be used to buy. If uptrend continues, then it may continue up to 39 level for time being. 

If crosses & sustains at above 42 level then uptrend may continue.

Keep a Stop Loss at 34 level for your long positions too.
 
 
FUNDS DATA
FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII 03-Sep-2009 1924.3 1996.99 -72.69
DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
DII 03-Sep-2009 1381.35 998.86 382.49
 
SPOT LEVELS TODAY
NSE Nifty Index   4593.55 ( -0.32 %) -14.80       
  1 2 3
Resistance 4633.58 4673.62   4699.88  
Support 4567.28 4541.02 4500.98

BSE Sensex  15398.33 ( -0.45 %) -69.13     
  1 2 3
Resistance 15545.43 15692.54 15786.89
Support 15303.97 15209.62 15062.51
 Global Cues & Rupee 
 t
he Dow Jones Industrial Average closed at 9,344.61. Up by 63.94 points.
The Broader S&P 500 closed at 1,003.24. Up by 8.49 points.
The Nasdaq Composite Index closed at 1,983.20. Up by 16.13 points.
The partially convertible rupee INR=IN closed at 48.92/93 per dollar on yesterday, stronger than its previous close 48.96/97.
 
 Interesting findings on web:
S
tocks snapped their four-day losing streak Thursday as investors were encourage by some better-than-expected retail-sales reports. Bank, gold and retail stocks shares advanced.
Investors moved back into stocks after a four-day slide on hopes that a key government report on unemployment will confirm that the economy is gaining strength.
The Dow Jones industrial average tacked on 64 points Thursday after sliding 300 points since Friday. Stocks held to a tight range for much of the day in light trading as some investors squeezed in late-summer vacations. Those remaining braced for the August jobs report, which is due before the opening bell Friday.
The biggest gains came in the final half-hour, with the Dow doubling its advance, as some traders looked to buy ahead of the jobs data. Economists expect the unemployment rate to edge up to 9.5 percent from 9.4 percent, while the number of layoffs is expected to slow to 225,000 from 247,000. Some economists have raised their expectations in recent weeks but the sunnier forecasts leave the market more vulnerable to disappointment.
The latest snapshot on employment Thursday offered investors little to go on ahead of Friday's report. The Labor Department said the number of people filing for unemployment claims fell last week by 4,000 to 570,000 while the number of people receiving benefits rose. Economists had been expecting a bigger drop, and the report served as a reminder of how difficult a recovery in employment will be.
Reports from retailers offered more insight into consumers' troubles. Many remain focused on necessities, though some are starting to open their wallets. Overall sales were still weak but many companies including Gap Inc. and Costco Wholesale Corp. posted results that topped investors' expectations.
Retail sales reports released Thursday for August showed that many consumers remained focused on necessities, though some were starting to open their wallets. Overall sales were still weak, but many companies, including Gap and Costco Wholesale, posted results that topped investors' expectations.
Costco [COST  55.02    4.37  (+8.63%)   ], Target [TGT  47.07    0.80  (+1.73%)   ] and Gap [GPS  21.18    1.49  (+7.57%)   ] were among the retailers that beat expectations.
Costco shares soared  8.6 percent, while Target gained 1.7 percent and Gap advanced 7.6 percent.
But it wasn't all rosy: Abercrombie and Fitch [ANF  30.98    -1.11  (-3.46%)   ] missed its target with a 29-percent drop in sales as teen retailers continued to get hammered. Family Dollar [FDO  28.32    -2.67  (-8.62%)   ] also missed its target. Both stocks declined.
Financials rebounded after taking a beating on Wednesday. Bank of America [BAC  16.84    0.57  (+3.5%)   ] was one of the biggest gainers on the Dow, climbing 3.5 percent. Citigroup [C  4.77    0.21  (+4.61%)   ] and Wells Fargo [WFC  26.91    0.82  (+3.14%)   ] also posted solid gains.
CIT Group [CIT  1.50    0.08  (+5.63%)   ] rose 5.6 percent and AIG [AIG  41.75    3.80  (+10.01%)   ] jumped 10 percent.
Fannie Mae [FNM  1.64    0.27  (+19.71%)   ] advanced 20 percent, while Freddie Mac [FRE  1.87    0.23  (+14.02%)   ] gained 14 percent.
And gold stocks were shining once again as gold hit a six-month high of $995.80 a troy ounce.
Randgold Resources [GOLD  67.57    4.45  (+7.05%)   ] and Royal Gold [RGLD  46.47    3.70  (+8.65%)   ] added another 8 and 7 percent respectively, bringing their two-day total to nearly 20 percent.
"When you have such a large part of US population convinced we're running to hell in a handbasket with federal spending, you're going to have a large part of the population buying and taking possession of gold out of fear of what's going on," said Jim DiGeorgia, commodities analyst for Gold and Energy Advisor.
Trading has been jittery in the past two weeks because some investors who have placed big bets on a recovery are worried that unemployment will make it hard for the economy to pull out of the longest recession since World War II. Consumer spending accounts for about 70 percent of U.S. economic activity.
By last month, major stock indicators like the Standard & Poor's 500 index had jumped more than 50 percent from 12-year lows in early March. Analysts say the latest slide was a necessary adjustment for the market, even though it erased only about two weeks worth of gains. Traders become nervous if stocks climb too quickly without a break, which is seen as an indicator of indiscriminate buying.
"We had a bit of reality catching up with expectations," said Bill Stone, chief investment strategist at PNC Wealth Management.
The Dow rose 63.94, or 0.7 percent, to 9,344.61. The S&P 500 index rose 8.49, or 0.9 percent, to 1,003.24, while the Nasdaq composite index rose 16.13, or 0.8 percent, to 1,983.20.
The Russell 2000 index of smaller companies rose 6.66, or 1.2 percent, to 562.49.
It's the belief the economy is in the recovery stage. What's rallying today are things associated with economic growth," Owen Fitzpatrick, head of U.S. Equity Group, Deutsche Bank Private Wealth Management, told Reuters. "Granted, we're due for a pause, but the reality is we are in an economic recovery." 
Analysts say the dearth of market participants going in to the long Labor Day weekend has added to the market's choppiness.
"I wouldn't want to read too much into anything until we get into next week," said Alan Brown, group chief investment officer at Schroders in London, referring to the light trading volume.
The Labor Department said the number of people filing for unemployment claims fell last week by 4,000 to 570,000. However, the market had been expecting a bigger drop to 560,000. The number of people continuing to receive benefits rose.
Investors have been eager for more insight on the labor market. Friday will bring the government's report on August job losses, the month's most telling piece of economic data. In July, job losses slowed and the unemployment rate unexpectedly fell. Investors are eager to see those trends continue.
The market is also sifting through a number of sales reports from retailers. Overall, sales are still weak, but many companies, including Target Corp., Costco Wholesale Corp. and Limited Brands Inc., beat expectations.
A trade group's measure of service sector activity dropped in August at the slowest pace in 11 months.
The Institute for Supply Management said its service index, which covers hospitals, retailers, financial services companies and more, came in at 48.4 in August, from 46.4 in July. Economists polled by Thomson Reuters expected a reading of 48. A figure below 50 indicates the service sector is shrinking.
Like services, recent reports on housing and manufacturing have improved, but unemployment, and the resulting clampdown on consumer spending, has left investors wary.
Concerns that the economy is not healing fast enough, and that a six-month rally in stocks had gone too far have led to four days of losses in the stock market. The Dow Jones industrial average has lost 300 points, or 3.1 percent, over four days.
"We had a bit of reality catching up with expectations," said Bill Stone, chief investment strategist at PNC Wealth Management, referring to the recent selling. He expects the market to "grind around" while it waits for the unemployment report on Friday.
In the day's economic news, the ISM reported its service-sector index rose to 48.4 in August from 46.4 in July, slightly beating expectations but still at the 50 mark, which would indicate expansion in the sector.
But investors were slightly disappointed in the report, hoping the gauge would top 50 after the ISM's manufacturing gauge topped the 50 mark earlier this week.
"While clearly signaling economic conditions that are nowhere near as bad as late last year ... we do not expect this [service-sector] indicator to flash a sustained 'all-clear' signal anytime soon," Joshua Shapiro, chief U.S. economist at MFR Inc., wrote in a note to clients. "Indeed, the less impressive recovery in this index compared to the ISM manufacturing index underscores the inventory-led nature of the current economic bounce."
One market pro said the fundamentals of this economy are actually creating a bit of a "perfect storm."
"I'd say we're within 5 to 10 percent of the peak" of this market, said Jeff Seymour, managing director of Triangle Wealth Management. Investors are getting discouraged and losing confidence in stocks, Seymour said, as earnings continue to disappoint, unemployment continues to climb and consumers continue to rein in spending.
Seymour is currently short the S&P, long international equity, and also investing in gold and short-term bonds.
Investors got a report on the labor market today ahead of the big jobs report on Friday.
Initial jobless claims fell 4,000 last week, roughly in-line with estimates, but the market was shaken a bit by a revision to the prior month and uptick in the four-week moving average.
As for Friday's jobs report, economists expect to see that 233,000 jobs were lost, slightly fewer than the 247,000 lost in July, and that the unemployment rate ticked up to 9.5 percent.
CBOE Volatility* 27.10 1.80 -6.23%.
Oil,Gold & Currencies:
Crude oil traded little changed near $68 a barrel, poised for the biggest decline in eight weeks, on speculation that OPEC will keep output steady as gasoline demand slows with the end of the U.S. summer driving season.
Gold prices extended their recent climb.
The dollar was mixed.
The dollar traded near a one-week low against the pound before a U.S. government report forecast to show employers eliminated fewer jobs last month, sapping demand for the greenback as a refuge from the global recession.
The yen fell for a second day versus New Zealand's dollar as Asian stocks extended a global equity rally, spurring demand for higher-yielding assets. The euro headed for a fourth weekly decline versus the Swiss franc after European Central Bank President Jean-Claude Trichet said the region's economic recovery will be bumpy. U.S. employers cut 230,000 jobs in August, a Bloomberg survey of economists shows.
"We're very upbeat on payrolls, as we're way above the market at minus 150,000," said Sean Callow, senior currency strategist at Westpac Banking Corp. in Sydney. "If we're right on the upside surprise, the U.S. dollar might soften a bit."
The dollar traded at $1.6326 per pound as of 9:35 a.m. in Tokyo from $1.6319 in New York yesterday, when it fell to $1.6413, the lowest level since Aug. 25. The U.S. currency bought 92.62 yen from 92.64 yen, and was poised for a fourth weekly loss, the longest stretch since December.
The euro bought $1.4257 from $1.4252 in New York yesterday, and fetched 87.32 British pence from 87.29 pence. Europe's single currency was at 1.5145 francs from 1.5144 francs. New Zealand's dollar rose to 62.86 yen from 62.75 yen.
U.S. Employers
The Labor Department may say today the U.S. unemployment rate rose to 9.5 percent last month, matching the highest level since 1983, according to the median estimate in a Bloomberg News survey of 77 economists. Employers cut 247,000 workers in July.
U.S. Treasury Secretary Timothy Geithner told reporters on Sept. 2 in Washington that it's "too early" for the Group of 20 nations to scale down efforts to boost growth. A meeting of G-20 finance ministers and central bankers begins today in London.
The yen may fall for a second day versus the euro after the Nikkei 225 Stock Average and the MSCI Asia- Pacific Index of regional shares advanced 0.2 percent. The Standard & Poor's 500 Index rose 0.9 percent yesterday.
Benchmark interest rates of 0.1 percent in Japan and as low as zero in the U.S. compare with 3 percent in Australia and 2.5 percent in New Zealand, attracting investors to assets in the South Pacific nations.
ECB's Trichet
The euro headed for its first weekly decline versus the pound since Aug. 7 after ECB Governor Trichet warned yesterday of a "rather uneven" recovery even as the central bank raised its growth forecasts. The bank left its target lending rate at a record low of 1 percent.
ECB officials are in no rush to withdraw emergency stimulus, said Trichet at a press conference in Frankfurt. The central bank did raise its economic forecasts for the 16-nation euro region to predict growth of about 0.2 percent in 2010 instead of a 0.3 percent contraction.
"The ECB cautiousness on the outlook could weigh on the euro," Brian Kim, a currency strategist in Stamford, Connecticut, at UBS AG, wrote in a research note yesterday. "We maintain our one-month euro-dollar $1.4000 forecast."
Traders pared bets the ECB will raise its benchmark rate by the middle of next year. The implied yield on the three-month Euribor futures contract for June 2010 delivery fell to 1.305 percent today from 1.315 percent yesterday.
What to expect:
Jobs data on Friday.
Bonds:
Bond prices fell, pushing the yield on the 10-year note up to 3.35 percent from 3.31 percent.
Asia:
Asian stocks fluctuated as higher commodity prices boosted mining and energy producers. Healthcare companies declined.
Rio Tinto Group, the world's third-largest mining company, gained 1.5 percent after copper prices rose for a third day. Canon Inc., which got 28 percent of its revenue last year from the Americas, rose 1.7 percent in Tokyo as U.S. retailers posted greater-than-forecast sales. Dainippon Sumitomo Pharma Co., which offered to buy a U.S. drugmaker yesterday, sank 5.1 percent in Tokyo after Merrill Lynch & Co. cut its rating.
Four stocks declined for every three that rose on the MSCI Asia Pacific Index, which was little changed at 112.57 as of 10:38 a.m. in Tokyo. The gauge has lost 1.3 percent this week, paring its advance from a five-year low on March 9 to 59 percent.
"We've seen that economically things are improving, but the big question is how much of that is already in the price," said Matt Riordan, who helps manage about $3.8 billion at Paradice Investment Management in Sydney. "We need to see companies pushing up their guidance. If that doesn't happen it means things are looking pretty full on the valuation side."
Japan's Nikkei 225 Stock Average rose 0.1 percent, paring an earlier 0.4 percent advance. Daiwa Securities Group Inc. sank 4.6 percent after Sumitomo Mitsui Financial Group Inc. said it's in talks to end a brokerage venture between the two.
Australia's S&P/ASX 200 Index gained 0.7 percent. Asciano Group, the country's largest port and rail operator, climbed 3.6 percent after announcing changes to its board. New Zealand's NZX 50 Index added 0.5 percent.
U.S. Retail Sales
Futures on the Standard & Poor's 500 Index were little changed. The gauge added 0.9 percent yesterday, ending a four- day losing streak, as supermarket operator Costco Wholesale Corp. and clothier Gap Inc. reported sales that beat estimates.
Canon, the world's No. 1 maker of digital cameras, rose 1.7 percent to 3,510 yen. Nissan Motor Co., which gets 34 percent of its sales in North America, added 1.1 percent to 631 yen.
Rio gained 1.5 percent to A$56.23. Sumitomo Metal Mining Co., Japan's biggest gold and nickel producer, climbed 2.5 percent to 1,499 yen in Tokyo.
An index of six metals in London climbed 1.6 percent yesterday, the most since Aug. 28. Copper futures in New York added 0.4 percent in after-hours trading today, extending yesterday's 1.4 percent advance.
The MSCI Asia Pacific Index rallied 59 percent from a more than five-year low on March 9 through yesterday. That boosted the average price of stocks in the gauge to 23 times estimated earnings, compared with 16.7 times for the S&P 500, data compiled by Bloomberg show.
Expiring Patents
In Tokyo, Dainippon Sumitomo Pharma, which agreed to buy Sepracor Inc. for $2.6 billion, sank 5.1 percent to 973 yen. Ritsuo Watanabe, an analyst at Merrill Lynch, cut his rating on the stock to "underperform" from "neutral," because of expiring patents at Sepracor.
Daiwa fell 4.6 percent to 516 yen, while Sumitomo Mitsui, Japan's second-biggest bank, was unchanged at 3,850 yen. The companies said in separate statements that no final decision had been made on ending their brokerage venture.
In Sydney, Asciano climbed 3.6 percent to A$1.565. The company said Malcolm Broomhead will take over as chairman from Tim Poole, who will step down from the role at the company's annual meeting in October. Broomhead is a former managing director of Melbourne-based Orica Ltd., the world's largest maker of industrial explosives. 

Nikkei 225 10,198.10     -16.54 ( - 0.16%).(08.35 AM IST).
The Nikkei Stock Average turned downward in the middle of the morning session, trading at around the 10,200 level.
Japan's Nikkei stock average edged down 0.2 percent in thin, see-saw trade on Friday, with investor reluctance to buy ahead of key U.S. jobs data outweighing short-covering on better than expected U.S. sales data. Daiwa Securities Group (8601.T) fell more than 5 percent, and Sumitomo Mitsui Financial Group (8316.T) inched down 0.5 percent after news Daiwa plans to buy SMFG's stake in their investment banking joint venture.
Dainippon Sumitomo Pharma (4506.T) tumbled 5.6 percent to 968 yen after Mizuho Securities said it was "somewhat apprehensive" about the drugmaker's plan to buy U.S. drugmaker Sepracor Inc (SEPR.O). The stock had ended up 1.2 percent on Thursday after Dainippon announced the acquisition.
The benchmark Nikkei .N225 lost 16.54 points to 10,198.10 after moving in a tight range of fewer than 100 points.
Taisei Corp. (1801) shares fell as much as 5 yen down to 193 yen Friday morning, as investors sold off on concerns over reduced public works spending under the incoming Democratic Party of Japan administration.
Daiwa Securities Group Inc. (8601) shares fell by more than 6% on the day at one point Friday to 508 yen. 

HSI 19790.95 +29.27 +0.15%. (08.38 AM IST).
Hong Kong shares advanced early Friday on extended gains in Shanghai and a rebound on Wall Street, with gold miners finding more steam to surge for a second straight session on a hefty overnight rise in gold prices. The Hang Seng Index advanced 0.3% to 19,824.34 and the Hang Seng China Enterprises Index climbed 0.7% to 11,509.75. Shares of Zijin Mining Group Co. Ltd. jumped 4.7% and Zhaojin Mining Industry Co. climbed 5.8%. China's Shanghai Composite rose 1% to 2,874.42, on top of Friday's 4.8% rally, to stretch its winning-streak to a fourth session.
Hang Seng Index opens 68 points higher on Fri
Hong Kong stocks rose on Friday morning, with the benchmark Hang Seng Index opening 68 points higher at 19,830.
The Hang Seng China Enterprise Index, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, opened 67 points higher at 11,497.
Air China Ltd<601111><0753> increased 2.01% from the previous closing to HK$4.55. China Southern Airlines Ltd<600029><1055><ZNH> opened flat at HK$2.4.

SSE Composite  2841.21   -0.13. (08.41 AM IST).
Chinese stocks open mixed on Fri
Chinese stocks opened mixed on Friday morning.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 2,841.17 points, down 0.14% or 3.85 points from the previous closing.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 0.11% or 12.61 points higher at 11,416.66 points.

Kai Yuan Holdings forecasts surge in profit for H1.
Industrial Bank to issue RMB 10 bln in subordinated bonds.
Agile Property to hold board meeting on H1 results next Wed.
Richard Li to challenge decision to block PCCW buyout.
Bank of China to raise money for 24 Swiss funds.
Shanda net profit surges 52.6% in Q2.
Bosch and Siemens adds US$90 mln investment in China.
BOE kicks off construction of 8G TFT-LCD production line in BDA. 

Fed's Fisher Sees Muted US Economic Recovery
Dallas Federal Reserve Bank President Richard Fisher on Thursday gave a muted outlook for the U.S. economy, saying a long period of slow growth lies ahead even when the recession ends.
"We are likely to see a prolonged period of sluggish economic performance and uncomfortably high unemployment as businesses reallocate capital and labor to fit the new economic landscape," Fisher said in remarks prepared for delivery at the University of California in Santa Barbara.
Deflation, not inflation, is the bigger risk to the United States "for the immediate future," said Fisher, who is not a voting member of the policy-setting Federal Open Market Committee (FOMC) in 2009.
Businesses are sorely lacking in pricing power, a condition that caused prices for almost half the items in a commonly used U.S. inflation "basket" to fall in July, Fisher noted, adding that revenue growth at companies has "evaporated."
To preserve profits firms "will continue to focus on cost control, most painfully by shedding workers and driving those who remain on the payroll to higher levels of productivity."
Fisher largely echoed the tone of minutes from the August FOMC meeting released on Wednesday, which stressed that a "gradual" recovery was likely at hand.
A combination of factors "is beginning to propel the economy upward" from the longest and deepest U.S. recession since the Great Depression of the 1930s, he said.
Among the elements that will pull the economy out of recession will be the current modest upturn in the housing market, Fisher said, on the heels of a dramatic, years-long decline.
"Our latest estimate is that residential investment will add roughly half of 1 percentage point to GDP growth in the current quarter," he said.
Similarly, Fisher said "the worst may well be over for household consumption" now that many Americans have adjusted to the reality of a deteriorating labor market.
Still, consumers will not fuel a global economic boom any time soon.
"Households and businesses will focus on shoring up their savings and balance sheets rather than spending money. For consumption, that translates into a slow crawl out of purgatory," he said.
Fisher said huge government spending was helping to propel the economy upward, but carries a "long-term price tag" including the prospect of higher interest rates as investors respond to the massive issuance of debt.
"The major challenge facing U.S. fiscal authorities is meeting the need for near-term economic stimulus while pursuing a practicable plan to stabilize the government's debt-finance obligations," he said. 

U.S. government proposes bigger reserves at banks
The U.S. government unveiled a plan Thursday to require banks to apply stronger international standards for their capital reserves and liquidity, aiming at preventing any future financial crisis.
The Treasury Department released a 14-page outline for Secretary Timothy Geithner to discuss the U.S. proposals during two days of meetings in London among the Group of 20 nations that begin Friday.
The proposal requires higher capital cushions and liquidity standards for banking firms deemed to pose a threat to the overall stability of the financial system.
According to the Treasury Department's statement, the global regulatory framework failed to prevent the build-up of risk in the financial system in the years leading up to the recent crisis. Major financial institutions around the world had reserves and capital buffers that were too low; used excessive amounts of leverage to finance their operations; and relied too much on unstable, short-term funding sources.
The resulting distress, failures, and government bailouts of these firms imposed unacceptable costs on individuals and businesses around the world, the department said.
"Today the Treasury Department set forth the core principles that should guide reform of the international regulatory capital and liquidity framework to better protect the safety and soundness of individual banking firms and the stability of the global financial system and economy," said the statement.
Geithner's proposal says a comprehensive international agreement should be reached by the end of 2010 with countries agreeing to implement the measure by the end of 2012.
Sprint to sell Google phone in U.S.
Sprint Nextel Corp. on Thursday announced that it will sell its first smartphone featuring Google's Android operating system in October in the United States, which will give a boost to the Internet search giant's mobile platform.
The touch-screen smartphone, named Hero and made by HTC Corp., will be available to customers on Oct. 11 at the price of 179.99 U.S. dollars after rebates with a two-year service agreement, said Sprint, the third largest wireless carrier in the United States.
"The arrival of HTC Hero and the Android platform to Sprint's network is an important milestone for our customers and the U.S. wireless industry," Kevin Packingham, senior vice president of product development for Sprint, said in a statement.
"With the dependability and coverage of Sprint's 3G network, HTC Hero users will appreciate a much better experience than is possible now with any other Android phone operating in the United States," he added.
T-Mobile USA was the first wireless carrier that introduced the so-called "Google phone" powered by Android operating system into the U.S. market.
In October 2008, T-Mobile USA began to sell G1, the first phone running Android software. The company launched a new myTouch 3G Android phone in the United States in August this year.
It is reported that Verizon Wireless, the largest U.S. wireless carrier, may sell Android phones before the end of the year.  
 
Shasun Chem: The Troubles Keep Increasing
After reporting a consolidated loss of Rs 147 crore in FY09, and following it up with another loss in Q1FY10, the corporate acknowledged to the media that it was putting up its drug plant in Annan, Scotland for sale as the unit had no orders to execute. Now comes the information that the corporate has received notice from Tamil Nadu Pollution Control Board under The Air (Prevention and Control of Pollution) Act, 1981 for closure of plant situated at SIPCOT Industrial complex in Cuddalore, Tamil Nadu.
 
Consequent to the notice, the operations at the Cuddalore plant have been stopped effective August 25, 2009. The closure will result in partial disruption to the Cuddalore operations. The Company has preferred an appeal and is confident of resolving the issue at the
earliest.

(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381