INTRADAY calls for 23rd Sep 2009
+ve Script, Sector : Zicom[long term breakout], Cromptgre, Neyveli,
HDIL, Polaris, suryapharma, PVR,NIIT
BUY Orbitcorp-219 for 240+ with sl 215
BUY SRF-168 for 180+ with sl 163
BUY Parsvnath-125 for 132+ with sl 123
Expected Breakout
BUY TechM-911 above 920 for 990+ with sl 907
BUY Mundraport-542 above 550 for 575+ with sl 543
Positional
BUY Nitinfire-360 for 390+ with sl 352
BUY Moserbaer-99 for 125+ with sl 93
BUY Prajind-104 above for 114+ with sl 101
stocks that are in news today:
-Pipavav Shipyard fixes IPO price at Rs 58/share ((price band was Rs 55-60/share))
-Rallis India board approves issue of 9.8 lakh shares to Tata Chemicals on preferential basis
((will increase promoter holding by less than 5% this fiscal, no open offer needed))
-Axis Bank prices GDR & QIP issue at Rs 906.7/share
-Gammon India board meet on September 25 on fund raising
-Globus Spirits to list today, issue price at Rs 100/share
-Unitech launches Worli project at 36% discount – DNA
-Bhushan Steel plans to raise Rs 2,000 crore via QIP issue
-NBC may up stake in NDTV Networks, holding company for the group's entertainment and life style business – Mint
-Tata Motors launches Land Rover Freelander 2 priced at Rs 33.8-45 lakh
-
Sesa Goa promoters increase stake in company to 57.1% from 55%
-Ratnamani Metals bags Rs 152 crore order from GAIL for gas transmission and distribution
-GreenPly Industries rights issue opens today, offer of 3 shares for every 10 @ Rs 90/share
-2.14 crore Opto Circuits QIP shares to hit market
-4.33 crore Ramco Industries bonus shares to hit market
-NSE F&O: Kingfisher out of curb
Strong & Weak futures
This is list of 10 strong futures:
Orchid chem, IOC, Lic house, Jindal Saw, Allahabad Bank, Bharat Forg, Bajaj Auto, Hindalco, Sesa Goa & Ranbaxy.
And this is list of 10 Weak futures:
TV-18, Finance Tech, Triveni, Dish TV, Rural Elec, United Phosphoro, Tulip, Asian Paints, ONGC & MTNL.
Nifty is in Up trend
NIFTY FUTURES (F & O):
Above 5031 level, rally may continue up to 5058-5060 zone by non-stop.
Support at 5019-5021 zone. Below this zone, expect profit booking up to 4989-4991 zone and thereafter slide may continue up to 4960-4962 zone by non-stop.
Buy if touches 4932-4934 zone. Stop Loss at 4903-4905 zone.
On Positive Side, cross above 5086-5088 zone can take it up to 5115-5117 zone. If crosses & sustains this zone then uptrend may continue.
Short-Term Investors:
Bullish Trend. 3 closes above 4790.00 level, it can zoom up to 5155.00 level by non-stop.
BSE SENSEX:
Higher opening expected. Uptrend should continue.
Short-Term Investors:
Short-Term trend is Bullish and target at around 17281.17 level on upper side.
Maintain a Stop Loss at 16119.95 level for your long positions too.
INVESTMENT BUY:
Buy BANNARI AMMAN SPINNING MILLS (NSE Cash)
Expect uptrend in this scrip.
Profit booking up to 106 level will be healthy. Keep a Stop Loss at 97 level for your long positions too.
Expect a target of 120 level on upper side. If crosses & sustains above 129 level then uptrend may continue.
Buy LIBERTY SHOES (NSE Cash)
Expect uptrend in this scrip.
Profit booking up to 95 level will be healthy. Keep a Stop Loss at 93 level for your long positions too.
Expect a target of 100 level on upper side. If crosses & sustains above 103 level then uptrend may continue.
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 22-Sep-2009 | 2754.2 | 1901.47 | 852.73 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 22-Sep-2009 | 894.92 | 1434.06 | -539.14 |
Global Cues & Rupee
The Dow Jones Industrial Average closed at 9,829.87. Up by 51.01 points.
The Broader S&P 500 closed at 1,071.66. Up by 7.00 points.
The Nasdaq Composite Index closed at 2,146.30. Up by 8.26 points.
The partially convertible rupee ended at 47.9550/9650 on yesterday, higher than Friday's close of 48.13/14.
Interesting findings on web:
Stocks notched solid gains on Tuesday ahead of the Federal Reserve's key decision on interest rates, with financial shares reaping the benefits of borrowing costs that economists expect to remain very cheap. Commodities also moved higher on a weaker dollar helping lift shares of resource companies.
Stocks advanced Tuesday as the two-year Treasury auction was met with strong demand and the dollar retreated.
The global advance in stocks began as the Asian Development Bank raised its economic forecast for the region on growing expansions in China, India and Indonesia. The ADB predicted Asia, excluding Japan, will grow 3.9 percent in 2009. The Group of 20 country leaders will meet in Pittsburgh on Sept. 24-25 to work on an accord to prevent a repeat of the worst crisis since the Great Depression and ensure a sustained recovery.
The Dow Jones industrial average rose 51.01, or 0.5 percent, to 9,829.87, its highest close since Oct. 6, when it finished at 9,956.
After soaring 50.1 percent since hitting a 12-year low in early March, the Dow stands 170 points below the 10,000 mark — a level the average first crossed in March 1999 and hasn't been above since October.
The broader Standard & Poor's 500 index gained 7.00, or 0.7 percent, to 1,071.66, while the Nasdaq composite index rose 8.26, or 0.4 percent, to 2,146.30. Both indexes are at 11-month highs.
In other trading, the Russell 2000 index of smaller companies rose 4.72, or 0.8 percent, to 620.69.
For the week:
The Dow is up 9.67, or 0.1 percent.
The S&P is up 3.36, or 0.3 percent.
The Nasdaq is up 13.44, or 0.6 percent.
For the year:
The Dow is up 1,053.48, or 12.0 percent.
The S&P is up 168.41, or 18.6 percent.
The Nasdaq is up 569.27, or 36.1 percent.
July home prices rose 0.3%, according to a report from the Federal Housing Finance Agency (FHFA) released shortly after the start of trading. That was short of forecasts for a rise of 0.5%, according to Briefing.com survey of economists. Home prices rose a revised 0.1% in June.
The gains came as the Federal Reserve began a two-day meeting on interest rates. Investors are hoping the central bank will provide a clearer indication of when it might raise rates. Analysts also expect the statement the Fed issues at the conclusion of its meeting Wednesday will indicate the economy is improving. Fed Chairman Ben Bernanke said last week that the U.S. recession was "likely over" from a technical standpoint even though troubles like high unemployment remain.
The Fed is widely expected to keep rates at their record low of near zero for the time being. Rock-bottom interest rates have helped fuel the market's nearly seven-month old rally, making cash plentiful and cheap and encouraging investors to buy up riskier assets.
The market appears to be following a well-established pattern where brief dips are met with more buying as investors fear missing a continued rally.
"Reluctantly, investors are continually being dragged into a market that is finding a path of least resistance to the upside," said Art Hogan, chief market analyst at Jefferies & Co.
The consensus on Wall Street is that the economy is healing despite challenges like unemployment. But investors still have doubts over how strong the recovery will be, and whether the stock market's surge off of 12-year lows in March accurately reflects the still-fragile state of the economy.
"Right now, it's a more orderly market," said Greg Reynholds, senior vice president of asset management at Lenox Advisors. "People are digesting the data, trying to figure out exactly where we're headed."
Wall Street surges, with the Dow, S&P 500 and Nasdaq ending at the highest point since last fall. Financial and commodity shares lead the way.
Stocks have carved out one-year highs repeatedly over the past two weeks, with the Nasdaq ending Monday's session at its highest level since shortly after the collapse of Lehman Brothers a year ago.
The slow, steady move up is creating anxiety in investors that they are missing out, which in turn is drawing more money into the market, said Larry Glazer, managing director at Mayflower Advisors.
"As the equity market keeps going up, its giving investors a reason to put their money to work," he said. "The bulk of (mutual) fund flows have been fixed income driven, but they are now starting to move incrementally into equities."
In the short term, investors are also attuned to the Federal Reserve meeting that concludes Wednesday and the Dow's climb toward 10,000. Although 10,000 is not a key technical level, it is a significant psychological level.
Despite ongoing calls for a September slide, investors continue to use any declines as an opportunity to get back in.
"The sign on a money manager's door is not 'Larry the cash hoarder,' it's 'Larry the money manager,'" said Jamie Cox, managing partner at Harris Financial Group. "And if he's sitting on a lot of cash, he's behind."
Stocks have also benefited from the weakness of the dollar versus other major currencies.
Dollar-traded commodities and corresponding commodity stocks tend to rise when the greenback weakens. In addition, the weaker dollar impacts the stocks of companies that have a strong presence overseas.
Harris said that over the last six months it's been the most volatile names, leading the charge. He said that the leadership is now shifting to so-called higher quality names, as evidenced by the recent spikes in companies such as GE (GE, Fortune 500), AT&T (T, Fortune 500) and Verizon Communications (VZ, Fortune 500).
Since bottoming at a 12-year low March 9, the S&P 500 has gained 57.4% and the Dow has gained 49%, as of Monday's close. After hitting a six-year low, the Nasdaq has gained 68.5%.
Stocks have risen during those 6-1/2 months on signs that the economy is starting to recover -- and due to extraordinary amounts of fiscal and monetary stimulus.
The PC market gained attention on Tuesday after the chief of microchip giant Intel ( INTC - news - people ) said his business is recovering quickly and could resume growing later this year. Investors may be skeptical, though, since Paul Otellini's comments were more optimistic than Wall Street analysts and market research firms have been. Shares of Intel lost less than 1%.
Dow gainers were fairly broad based, with 20 of 30 issues rising, including Chevron (CVX, Fortune 500), Caterpillar (CAT, Fortune 500), Alcoa (AA, Fortune 500), Hewlett-Packard (HPQ, Fortune 500) and United Technologies (UTX, Fortune 500).
A number of financial stocks gained too, including Dow components Bank of America (BAC, Fortune 500) and JPMorgan Chase (JPM, Fortune 500).
Among other gainers, Citigroup (C, Fortune 500) rose 5% after Singapore sovereign wealth fund GIC said it sold half of its stake in the company. GIC had bought a 9% stake in Citigroup at its lows and opted to cash in on the recent market rally to earn $1.6 billion.
The KBW Bank (BKX) sector index gained 2.3%.
Demand for energy and material stocks increased as commodities rose. U.S. Steel Corp. added $2.22, or 4.6 percent, to $50.24, while Chesapeake Energy Corp. jumped $1, or 3.6 percent, to $29.11.
Financial stocks rose after Rochdale Securities analyst Richard Bove raised his target price on Bank of America Corp. to $25 a share. Shares of the Charlotte, N.C.-based bank rose 36 cents, or 2.1 percent, to $17.61.
Among technology stocks, Google Inc. shares hit a 13-month high after a Canaccord Adams analyst raised the target price on the stock to $560. Shares rose as high as $501.99 and ended at $499.06, a gain of $2.06.
JPMorgan Chase & Co. (NYSE: JPM) rallied 4.3 percent to $46.47 for the top gain in the Dow and the stock's steepest advance since July 15. Bank of America Corp. (NYSE: BAC) analysts led by Guy Moszkowski raised their third-quarter earnings estimate to 49 cents a share from 46 cents.
The analysts named JPMorgan andGoldman Sachs Group Inc. (NYSE: GS), which also had its third-quarter earnings estimate lifted, as their top picks among U.S. banks. Goldman Sachs added 1.7 percent to $185.52, its highest closing price since July 2008.
Bank of America rallied 2.1 percent to $17.61 after its share-price estimate was raised to $25 from $19 by Richard Bove of Rochdale Securities LLC. Bove cited the decision to quit two federal guarantee programs.
Financial shares climbed 2.3 percent for the top gain among 10 industries in the S&P 500, sending the group to its highest level since November.
MBIA Inc. (NYSE: MBI), the largest bond insurer by total guarantees, had the biggest gain in the S&P 500, rising 22 percent to $8.24. Ambac Financial Group Inc. (NYSE: ABK) surged 14 percent to $1.88.
U.S. bank shares are set to drop because loans made for commercial real estate will sour and lenders will need to raise more capital to cover credit losses, according to Mike Mayo, an analyst at CLSA Ltd. Regional banks will perform the worst among U.S. lenders because they have the biggest exposure to loans for commercial real estate, Mayo said at a conference in Hong Kong.
Macy's (NYSE: M) jumped 5.5 percent to $18.77 after Citigroup (NYSE: C) upgraded the second-biggest U.S. department store company to "Buy" from "Hold," citing expectations for increasing revenue.
Hewlett-Packard (NYSE: HPQ) rose 1.4 percent to $47.01 after being raised to "Outperform" from "Neutral" atCredit Suisse (NYSE: CS), according to a report dated Tuesday.
Newmont (NYSE: NEM), the biggest U.S. gold producer, rallied 1.8 percent to $45.22. Exxon Mobil (NYSE: XOM), the largest U.S. oil company, added 0.4 percent to $69.83. Copper rose for a second day, while crude oil climbed above $71 a barrel in New York. Gold increased, ending a three-day decline, as the dollar's weakness against major global currencies boosted the appeal of precious metals as an alternative investment.
Peabody Energy Corp. (NYSE: BTU), the largest U.S. coal producer, surged 5.3 percent to $40.22 after being raised to "Buy" from "Hold" at Citigroup.
U.S. Steel Corp. (NYSE: X) added 4.6 percent to $50.24 after Bank of America raised its recommendation to "Neutral" from "Underperform," saying the company "should return" to profitability in 2010.
Mark Johnson, whose precious-metals mutual fund topped all rivals over the past decade, is betting gold-company stocks will rise faster than the metal as mining profit margins widen.
"For every 1 percent move in gold, the stocks should gain 2 to 3 percent," Johnson said in a telephone interview from San Antonio, where his USAA Precious Metals and Minerals Fund is based. As gold prices climb, production costs advance more slowly to yield bigger profits, he said.
Caterpillar (NYSE: CAT) rose 3.6 percent to $54.34, while General Electric Co. (NYSE: GE) added 1.5 percent to $17.01 on speculation that demand for commodities may boost industrial activity.
"Industrials are coming back to life," said Bruce McCain, chief investment strategist at Cleveland-based Key Private Bank, which manages about $20 billion. "That's all reflective of an economy that's coming out of recession and finding the sparks of a recovery."
Oil services company Smith International (SII) was up 5.8% to $29.79.
Freeport-McMoRan Copper & Gold (FCX) added 4.4% to $73.15 as gold and copper both moved higher.
Meanwhile, shares of Clorox (CLX) jumped 2.6% to $59.14, and option trading was heavy on speculation that Procter & Gamble (PG) may try to bid for the maker of bleach and other products.
AMR slumped 6.5% after the parent of American Airlines said it expected to raise more than $500 million in stock and debt.
Wells Fargo [WFC 29.39 1.10 (+3.89%) ] climbed 3.9 percent following news that Chairman Dick Kovacevich plans to retire at the end of the year and CEO John Stumpf will assume the additional role of chairman.
In addition to the dollar's weakness, Alcoa [AA 14.26 0.32 (+2.3%) ] got a boost after Goldman Sachs raised its price target on the stock, citing increasing aluminum prices.
Two energy companies — Peabody Energy [BTU 40.22 2.04 (+5.34%) ] and Massey Energy [MEE 33.18 1.77 (+5.64%) ] — were upgraded to "buy" by Citigroup, which said the manufacturing recovery should start to boost coal demand. Both stocks rallied more than 5 percent.
Pfizer [PFE 16.80 0.16 (+0.96%) ] advanced after a trial showed switching breast-cancer patient's to the firm's Aromasin half-way through a five-year course of tamoxifen helped improve the patients' chances of staying cancer-free for at least the next six years.
Lowe's [LOW 21.07 -0.88 (-4.01%)] skidded 4 percent after the home-improvement chain affirmed its full-year profit view—its fiscal year ends Jan. 29—but warned of charges ahead due to slow sales at stores hit by the economy.
Cadbury [CBY 51.20 0.38 (+0.75%)] shares ticked higher after the chocolatier's CEO admitted to the Wall Street Journal that a deal with Kraft Foods [KFT 26.49 -0.26 (-0.97%) ] would have some "complementary elements."
And ConAgra Foods [CAG 22.00 -0.33 (-1.48%) ] dropped 1.5 percent after the company beat analysts' estimates and raised its earnings forecast for the full year as commodity costs eased and price increases helped lift sales.
VIX23.08-0.98-4.07.
Oil,Gold & Currencies:
U.S. light crude oil for October delivery rose $1.84 to settle at $71.55 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $10.60 to settle at $1,015.50 an ounce.
In an about-face, the dollar weakened against other major currencies.
The dollar touched a one-year low against the euro and weakened versus the yen on speculation Federal Reserve policy makers will signal today they will keep interest rates low, diminishing the allure of U.S. assets.
New Zealand's dollar rose against all of the 16 major currencies after a government report showed the economy unexpectedly expanded for the first time in six quarters, spurring investors to buy higher-yielding assets. The yen rose toward a seven-month high versus the dollar on prospects Group of 20 leaders, meeting in Pittsburgh starting tomorrow, will call for a reduction in global trade imbalances that may cause further gains in the U.S. currency's counterparts.
"Our view is that the Fed won't change its statement, so we'd be very surprised if they changed the reference to exceptionally low levels of the fed funds rate," said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. "We are broadly bearish on the dollar. The improving global picture tends to produce selling of the dollar."
The dollar traded at $1.4797 per euro as of 11:07 a.m. in Tokyo from $1.4790 in New York yesterday, after earlier declining to $1.4842, the lowest level since Sept. 22, 2008. The U.S. currency was at 1.0234 Swiss francs, after earlier falling to 1.0189 francs, the weakest since July 22, 2008.
The yen climbed to 90.82 per dollar from 91.10, and rose to 134.40 per euro from 134.76. New Zealand's dollar advanced to as high as 73.12 U.S. cents, the strongest since Aug. 4, before trading at 72.60 cents from 71.89 cents.
Fed Meeting
The Federal Open Market Committee will probably maintain its assessment that "tight" bank credit is impeding growth, said economists including former Fed Governor Lyle Gramley. Lending contracted for five straight weeks through Sept. 9, a drop that in part reflected Fed orders to banks to raise more capital and toughen lending standards, analysts said.
All 93 economists surveyed by Bloomberg said the Fed won't change interest rates at its two-day policy meeting ending today. Chairman Ben S. Bernanke and his colleagues may discuss how to wind down purchases of mortgage-backed securities, analysts said.
"You've obviously got some risks with the Fed, but unless they come out and surprise with being hawkish, which I don't think they will, it's another reason dollar bears will feel comfortable with their position," said Phil Burke, chief foreign-exchange dealer at JPMorgan Chase Bank in Sydney.
Stop-Loss Orders
The dollar slumped earlier due to the activation of so- called stop-loss orders, Burke said.
"The dollar-yen started that move off going through 91 and that turned into Dollar-Index break through 76," he said. "It was a dollar-yen move initially, which turned into a Dollar- Index move, and it all got pretty messy and nasty."
A stop-loss order is an automatic instruction to sell or buy a currency should it reached a particular level.
The Dollar Index, which the ICE uses to track the dollar against the currencies of six major U.S. trading partners, dropped to as low as 75.939, the weakest since Sept. 22, 2008, before trading at 76.008 from 76.118.
The New Zealand dollar rose to its highest since August 2008 versus the U.S. currency after Statistics New Zealand said gross domestic product grew 0.1 percent in the three months to June 30, following a 0.8 percent drop in the first quarter. The median estimate in a Bloomberg News survey was for a 0.2 percent contraction.
"Early in the session the market was looking for direction and the kiwis gave it," said Tony Bieber, a foreign-exchange trader at Suncorp-Metway Ltd. in Brisbane. "The kiwis are leading the charge against the U.S. dollar."
New Zealand Rates
Traders are betting the Reserve Bank of New Zealand will raise its benchmark interest rates by 1.49 percentage points over the next 12 months, compared with a prediction for 1.36 percentage points yesterday, according to a Credit Suisse Group AG index based on overnight swaps.
The yen gained for a second day against the dollar on speculation world leaders will discuss policies to rebalance global economic growth at the G-20 meeting this week.
Policy makers need to promote a "sustained growth track and facilitate global adjustment, as well as structural reform which will need to be undertaken in both deficit and surplus countries," Dimitri Soudas, a spokesman for Canadian Prime Minister Stephen Harper, told reporters in Ottawa on Sept. 21.
"The dollar remains under selling pressure as the G-20 summit moves toward reforming the international monetary system," Philip Wee, a senior currency economist in Singapore at DBS Group Holdings Ltd., wrote in a research note today.
'Market Manipulation'
Losses in the dollar may be tempered after Italian Prime Minister Silvio Berlusconi and Australian Prime Minister Kevin Rudd wrote to U.S. President Barack Obama urging him to lead the fight against financial speculation and make it the center of the G-20 summit.
"We would like to bring financial speculation and market manipulation, particularly for raw materials, to the center of the debate," Berlusconi and Rudd said in their letter, a copy of which was posted on the Italian leader's Web site.
The Reuters/Jefferies CRB Index of 19 commodities rose the most in a week yesterday. Crude oil traded near $72 a barrel after climbing 2.6 percent yesterday.
"Back in mid-June, the G-8 meeting revealed clear evidence of disquiet in commodity prices," Sue Trinh, a senior currency strategist in Sydney at RBC Capital Markets, wrote in an e-mail to Bloomberg today. "Following that June communiqué, major commodity indices slumped around 10 percent in the following week. In foreign exchange, risk proxies followed commodity prices lower."
Bonds:
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.46% from 3.48% late Monday. Treasury prices and yields move in opposite directions.
What to expect:
The Federal Reserve concludes its two-day policy meeting Wednesday, with an announcement expected at around 2:15 p.m. ET. The central bank is expected to hold short-term interest rates unchanged at levels near zero.
Investors will also look to the central bank's statement for clarity on how they see the economic outlook. Fed chief Ben Bernanke said last week that the recession is likely over, but the labor market still has a long way to go.
Investors will also be looking to see if they say anything about how they plan to wind down programs that pumped trillions into the economy to cushion the blow of the recession.
Also Wednesday, Treasury Secretary Timothy Geithner is set to testify before the House Financial Services committee on regulatory reform, starting at around 9:30 a.m. ET.
WEDNESDAY: Weekly mortgage applications; Geithner testimony; Obama at UN; weekly crude inventories; Fed statement
THURSDAY: G-20 summit begins; weekly jobless claims; existing-home sales; seven-year auction; Earnings from RIM
FRIDAY: Durable-goods orders; consumer sentiment; new-home sales; Earnings from KB Home
Asia:
Asian Stocks Advance on Commodities Rally, G-20 Expectations
Asian stocks rose, led by commodity producers, as oil and metals prices rallied after a weaker dollar boosted demand for alternative investments and on expectations the Group of 20 will continue to stimulate growth.
Woodside Petroleum Ltd., Australia's second-biggest oil and gas producer, jumped 4 percent, after crude oil advanced for the first time in four days yesterday. Rio Tinto Group, the world's third-largest mining company, gained 1.8 percent as copper prices rose. Geely Automobile Holdings Ltd., China's largest private automaker, soared 21 percent in Hong Kong on plans to raise HK$2.59 billion ($334 million).
"G-20 leaders are expected to continue to support fiscal policy stimulus and the global banking system, with the removal of stimulus to take place in a globally coordinated manner," said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State, which holds about $115 billion. "Markets continue to trade on the recovery story with positive expectations."
The MSCI Asia Pacific excluding Japan Index rose 0.5 percent to 395.22 as of 10:34 a.m. in Hong Kong. The gauge that includes Japan has rallied 69 percent from a five-year low on March 9. Australia's benchmark S&P/ASX 200 Index advanced 1.3 percent, snapping three straight days of losses.
South Korea's Kospi Index lost 0.2 percent to 1,714.14. Hynix Semiconductor Inc. slumped 7 percent after Hyosung Corp. submitted a bid to gain control over the world's second-biggest computer-memory chipmaker. Doosan Infracore Co., the nation's biggest construction-equipment maker, fell 3.9 percent after prosecutors raided its offices. Hong Kong's Hang Seng Index dropped 0.3 percent.
Broker Upgrades
Futures on the U.S. Standard & Poor's 500 Index gained 0.7 percent. The gauge climbed 0.7 percent to 1,071.66 yesterday following a spate of brokerage upgrades. JPMorgan Chase & Co. rose 4.3 percent after its earnings estimate was raised at Bank of America Corp. Macy's Inc. jumped 5.5 percent after Citigroup Inc. advised buying the shares, while Hewlett-Packard Co. added 1.4 percent on a Credit Suisse Group AG upgrade.
"A slew of broker and earnings upgrades provided the impetus and now there's plenty of cash to follow the advice," said Cameron Peacock, a Melbourne-based analyst at IG Markets. "The demand from cash on the sidelines will make dips shallow and short lived."
The Group of 20 country leaders will meet in Pittsburgh Sept. 24-25 to work on an accord to prevent a repeat of the worst financial crisis since the Great Depression and ensure a sustained recovery.
Asia Leading Recovery
The Asian Development Bank yesterday raised its economic forecast for the region on growing expansion in China, India and Indonesia. The ADB predicted Asia, excluding Japan, will grow 3.9 percent in 2009.
"The ADB forecasts support the view that Asia, led by China, will be the first region of the world out of recession," said Halmarick.
Woodside Petroleum rose 4 percent to A$52.55. Santos Ltd., Australia's third-biggest oil and gas producer, added 0.7 percent to A$15.19. In New York, crude oil for October delivery rose 2.6 percent to $71.55 yesterday. It was $71.33 a barrel in after-hours trading. SK Energy Co., South Korea's largest oil refiner, climbed 4.9 percent to 128,000 won.
Rio Tinto gained 1.8 percent to A$61.42. BHP Billiton Ltd., the world's biggest mining company, added 0.8 percent to A$38.29.
Dollar Weakens
The dollar fell to a one-year low against the euro on speculation Federal Reserve policy makers will signal today they will keep interest rates low. Copper futures for December delivery gained 2.1 percent to $2.8645 a pound yesterday as the dollar weakened, boosting demand for commodities as a hedge against inflation. A measure of metals traded in London rose 1.3 percent yesterday.
Geely Automobile surged 19 percent to HK$2.13. The company plans to raise HK$2.59 billion selling convertible bonds and warrants to a fund managed by Goldman Sachs Group Inc.
Hynix slumped 6.6 percent to 20,600 won. Hyosung, the world's largest maker of tire-reinforcing materials, said it submitted a letter of intent to gain control of Hynix, in which creditors own a combined 28 percent stake. Doosan lost 3.9 percent to 94,800 won.
The Nikkei Stock Average of 225 issues is closed Tuesday and Wednesday for public holidays. It will reopen on Thursday.
HSI 21688.71 -12.43 -0.06%.(08.29 AM IST).
Hong Kong stocks slid lower in early trading Wednesday, reversing gains from the previous session as Shanghai-listed shares extended their decline on commodity producers and property developers. The Hang Seng Index fell 0.3% to 21,627.90 and the Hang Seng China Enterprises Index slipped 0.3% to 12,468.89. Shares of Sinopharm Group /quotes/comstock/22h!1099 (HK:1099 0.00, 0.00, 0.00%) jumped in a strong debut, quoted at 18.84 Hong Kong dollars ($2.43) versus its initial public offering at 16 Hong Kong dollars. Geely Automobile Holdings Ltd. /quotes/comstock/22h!e:175 (HK:175 2.17, +0.38, +21.23%) soared 18.4% as trading resumed following news a Goldman Sachs affiliate would invest in the company's convertible bonds and warrants. The Shanghai Composite index fell 0.5%, giving up early gains.
Hang Seng Index opens 45 points lower on Wed
Hong Kong stocks retreated on Wednesday morning, with the benchmark Hang Seng Index opening 45 points lower at 21,655.
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 5 points lower at 12,506.
BYD Co Ltd<1211> increased 0.65% from the previous closing to HK$69.2. Sinotruk (Hong Kong) Ltd<3808> rose 0.22% and opened at HK$9.27.
SSE Composite 2897.55 2894.03 2924.20 2868.50 -0.12. (08.31 AM IST).
China's key stock index opened little changed on Wednesday after President Hu Jintao said China would prepare new economic plans and keep monetary policy stable, although worries of more share supplies weighed on sentiment.
The Shanghai Composite Index .SSEC opened 0.01 percent higher at 2,897.808 points, after falling 2.34 percent to a two-week closing low on Tuesday.
State television quoted Hu as reiterated Beijing's "active fiscal policy and appropriately loose monetary policy".
The official Shanghai Securities News reported that the first 10 firms to be listed on a new second board for start-up firms, due for launch soon, would be priced at relatively high levels.
State media also reported that the country's mutual funds would be allowed to invest in stocks on the start-up board.
Analysts said that while the second board was drawing investors' attention, blue chips on the main broad may remain relatively stable ahead of a one-week national holiday from Oct. 1.
China International Capital Corp said in a recent research report that it retained a cautious stance towards the index's outlook for this week and October as investors may lock in profits before the National Day holiday.
It expected more share supplies to reach the market in October although the launch of new mutual funds and a steady economic recovery could limit a fall in share prices. ($1 = 6.83 yuan)
Chinese stocks open flat on Wed
Chinese stocks opened nearly flat on Wednesday morning.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 2,897 points, up 0.01% or 0.26 points from the previous closing.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 0.22% or 25 points lower at 11,787 points.
Geely shares jump on Goldman Sachs fundraising
Shares of Geely Automobile Holdings Ltd. /quotes/comstock/22h!e:175 (HK:175 2.18, +0.39, +21.79%) /quotes/comstock/11i!gelyf (GELYF 0.37, +0.10, +37.04%) shares zoomed almost 19% in early Hong Kong trading after the Chinese auto maker said it's raising $2.59 billion ($334 million) by selling convertible bonds and warrants to a Goldman Sachs Group /quotes/comstock/13*!gs/quotes/nls/gs (GS 186.25, +0.73, +0.39%) fund. The five-year bonds carry a conversion price of 1.90 Hong Kong dollars, while the warrants have an exercise price of 2.30 Hong Kong dollars. Geely's shares, which had been suspended pending the news, were trading at 2.13 Hong Kong dollars in early action. The auto maker could put the funds toward its parent's possible bid for Volvo, currently owned by Ford Motor Co. /quotes/comstock/13*!f/quotes/nls/f (F 7.07, +0.06, +0.86%) .
Sinopharm shares jump 18% in Hong Kong debut
Sinopharm Group Co. /quotes/comstock/22h!1099 (HK:1099 0.00, 0.00, 0.00%) jumped 18% in debut trade Wednesday in Hong Kong. The highly-anticipated listing by China's largest pharmaceutical group traded at 18.84 Hong Kong dollars ($2.43) in early action, after setting a high of 19.74 Hong Kong dollars. The shares were priced at 16 Hong Kong dollars in the initial public offering.
CIC to buy 12.91% stake in Noble Group.
Focus Media posts US$23 mln of net loss in Q2.
Jilin Yatai to acquire Jinyuan Cement for RMB 311.64 mln.
Valin Steel to issue RMB 1.5 bln in short-term financing bills.
Wumart Stores eyes Shanghai market.
China Unicom adds 127,000 GSM users in August.
Huawei to open research center in France this month.
Magna's CEO says unaware of tie-up talks with Geely.
Sinopharm surges in gray market.
China to buy 1.5 mln computers with Loongson CPUs.
GCL-Poly Energy inks US$23.7 bln in silicon deals.
GM to increase production to meet demand for cars
The major U.S automaker General Motors Co. is rehiring 2,400 workers at some plants to increase production to meet demand for some of its new vehicles and better utilize factories, the automaker said Tuesday.
The moves come as GM is preparing to close several assembly plants as part of a broad restructuring that will consolidate production of some vehicles made at more than one plant.
When GM filed bankruptcy earlier this summer, it announced it was closing or idling 12 plants across the country.
Today's moves shed more light on how GM is reconfiguring its blue-collar work force and adjusting to increased demand for some of its new models.
"Today's actions enable GM to add production shifts and maximize the utilization of several of our plants," Tim Lee, GM's vice president of manufacturing and labor relations told Detroit News.
The moves will let GM boost production by about 1 million cars and trucks next year, a 40 percent increase to 2.8 million vehicles.
It is latest production adjustment made since GM emerged from bankruptcy court July 10 with 50 billion U.S. dollars in federal aid and after shedding billions in debt, brands, factories and workers.
Airbus' A320 to get China-made wings next year
China's Xi'an Aircraft Industry (XAC) will deliver the first set of fully equipped wings to Airbus' A320 aircraft final assembly line in north China's Tianjinin the first quarter of next year, China Daily reported Wednesday.
The wing equipping work will start next month in Tianjin at a site close to the final assembly line, the newspaper said, citing Laurence Barron, president of Airbus China.
The A320 wing is the largest and most complicated Airbus aircraft component a Chinese company has ever made. China is Airbus' only wing manufacturer outside Europe. Currently, XAC manufactures the A320 wing box structures in Xi'an, Shaanxi province, and ships them to the United Kingdom for installation of moving parts and systems.
Airbus will also create a logistics center in Tianjin to harmonize the transport systems for all aircraft components flowing in and out of China, Barron said.
More than half of the Airbus worldwide fleet has components produced in China. The Chinese suppliers are located across the country and handle their own logistics.
The total annual value of Airbus' procurement in China reached over 100 million U.S. dollars last year and is expected to touch 200 million U.S. dollars in 2010 and 450 million U.S. dollars in 2015, according to the newspaper.
WTO chief says cautious on Doha Round outlook
World Trade Organization (WTO) chief Pascal Lamy said Tuesday that he was still cautious about the outlook of the Doha Round of global trade negotiations despite a detailed work program drawn up by senior officials last week.
"At this stage I remain cautious in my forecast. It would be premature for me to predict today that the necessary political engagement will in fact take place over the next three months," Lamy told an informal meeting of WTO ambassadors.
"Let us be under no illusions... a work program in itself, as necessary as it may be, will not deliver a substantive result," he said.
The Doha Round of trade opening talks have met one setback after another since its launch in 2001, with major WTO members divided on such tough issues as agricultural tariffs and subsidies as well as industrial market access.
A recent meeting of more than 30 trade ministers in New Delhi re-energized the stalled talks, and senior officials meeting in Geneva last week managed to work out a detailed work program for the next three months with an aim to conclude the whole round of talks in 2010.
The so-called work program is actually a long series of negotiating sessions on the various areas of the Doha Round, notably on agriculture and NAMA (non-agricultural market access), the two areas which have long blocked progress of the negotiations.
The program also requires the regular participation of senior officials from key WTO members, who are to meet in Geneva for one week in each of the rest three months of this year.
Lamy said the emergence of the work program was "an important step." It is also "what the objective needs of the negotiating process require if we are to be back on track - and stay on track -to conclude next year."
But he stressed that the work program itself was insufficient to lead to the conclusion of the negotiations, and a Doha global trade deal "can only come from political engagement and from the hard bargaining on the few remaining issues that we have yet to see."
The WTO chief said negotiations in Geneva should accelerate and political leaders, especially the G20 leaders meeting this week in Pittsburgh, should also show leadership and responsibility.
"Leadership is about responsibility. Failure to act, not just in Pittsburgh, but also here in Geneva, will be hard-felt by the entire international community," he said.
"We all know that keeping trade open is crucial for many (WTO) members to exit the crisis. And 60 years of experience have told us that the best way to keep trade open is to keep opening trade, while, of course, creating the necessary level playing field with rules," he added.
Fed May Be Able to Road-Test Its Stimulus Exit Strategy
A Treasury Department decision to scale back a borrowing program it runs on behalf of the Federal Reserve may give the central bank an opportunity to test tools it could eventually use to withdraw the huge amounts of money it has pumped into the economy, some analysts say.
The Fed faces a tough challenge of fine-tuning its exit strategy tools without giving the market the impression it is about to tighten monetary policy.
The $185 billion of cash to hit the market as part of the wind-down of the Treasury's Supplementary Financing Program (SFP) in coming weeks could give the Fed a chance to road-test parts of its exit strategy, without sending unintended signals to the market, these analysts said.
The Treasury's decision—which in itself limits one tool the Fed hopes to have on hand—might therefore actually work in the Fed's favor, the analysts said.
"The recently announced reduction in the SFP may give the Fed the opportunity to test out some new reserve management tools in a way that doesn't send a signal of an imminent rate hike (that is, they could say we're just draining the $185 billion that the SFP is adding)," Michael Feroli, an economist at JPMorgan wrote in a note to clients.
As it battled the financial crisis, the Fed slashed its target for the overnight federal funds rate to near zero and put in place a vast array of emergency programs that have more than doubled its balance sheet. Eventually, it will have to reverse that policy or risk inflation.
The Fed, which opened a two-day policy meeting on Tuesday, is seen in no hurry to tighten policy, with most economists not expecting it to begin raising benchmark short-term U.S. interest rates until the middle of next year or later.
Fed staff presented an update on their development of exit strategy tools at the U.S. central bank's last policy meeting in August, minutes showed. Several participants said the strategy needed further refining, according to the minutes.
The Fed has been talking to primary dealers—big Wall Street bond-trading firms—about its exit strategy tools, market participants said.
These include large-scale reverse repurchase agreements in which the Fed would borrow large sums from the dealers and other institutions, temporarily draining bank reserves, and a term deposit facility, to function like the certificates of deposit banks offer customers.
Mid-sized investment bank Jefferies, a primary dealer, noted that if all the bills due in the SFP mature on schedule, an average of $30.8 billion of cash a week will hit the market through the end of October.
Jefferies said the timing of the Treasury's decision means the Fed's policy-setting committee this week "could discuss steps to offset the increase in the Fed's balance sheet and bank reserves due to the decline in the SFP."
Wrightson ICAP, however, estimated that the increase in reserves will only push the average effective federal funds rate slightly below 0.15 percent in the fourth quarter—still well within the Fed's target range of zero to 0.25 percent.
Fed officials will likely want to avoid appearing as if they are targeting a reserve level, Wrightson ICAP chief economist Lou Crandall said.
"When they get around to introducing these tools, the challenge for them is to find a way to persuade the market that this is not a prelude to a tightening and using the SFP as cover might be appealing," he said.
"The problem is that acting on this now implies they have a target for excess reserves and that is a framework that most Fed officials have not embraced," Crandall added.
Half of Madoff's Clients Didn't Lose Money
Federal prosecutors in New York say a review of most customer accounts show that about half of the customers jailed financier Bernard Madoff had when his business shut down had not lost money.
Prosecutors made the revelation as they told a judge Tuesday that there was no need to order restitution because all of Madoff's assets will be distributed to investors anyway.
The prosecutors say a review of claims from most of the customers who had investment accounts with Madoff shows that nearly 50 percent of the active customers invested more money than they withdrew while the other 50 percent of active withdrew more than they invested.
Madoff is serving a 150-year sentence after cheating thousands of customers out of billions of dollars.
BofA to Provide More Documents in Congress Probe
Bank of America BANK OF AMERICA CORP NEWBAC17.61 0.36 +2.09% NYSE Quote | Chart | News | Profile [BAC 17.61 0.36 (+2.09%) ] has agreed to turn over more documents to a congressional probe of its purchase of troubled investment bank Merrill Lynch, although some company material remains under wraps for now, a senior lawmaker said.
After a meeting between a bank executive and the chairman of the House oversight committee, Bank of America will continue to assert attorney-client privilege for some documents but must provide a "privilege log" the panel can review.
House Oversight and Government Reform Committee Chairman Adolphus Towns said the meeting with global chief strategy and marketing officer Anne Finucane was constructive and his panel would review the log to determine which documents are critical to its investigation.
The panel is looking at the disclosure of pre-merger losses at the investment bank, what funding commitments the U.S. government made prior to the deal, and what legal basis the bank may have had for backing out of the Merrill deal.
An aide to Towns on Monday said a subpoena might be needed to get the documents sought, after the bank missed a deadline imposed by the lawmaker.
But the statement released by Towns on Tuesday did not mention any plans for a subpoena.
Some lawmakers believe Bank of America was forced by the U.S. Treasury and the Federal Reserve to complete the Merrill deal as part of efforts to prop up the banking system during last year's financial crisis.
Others are critical of Bank of America for not giving more information to shareholders about Merrill's financial condition and for letting Merrill pay bonuses before the deal was completed on Jan. 1.
Bank of America is defending itself on multiple fronts over the Merrill deal, including shareholder lawsuits and a threat by New York Attorney General Andrew Cuomo to file civil charges against top executives.
The Securities and Exchange Commission has said it could pursue additional charges against the bank, after a federal judge last week rejected a $33-million settlement between the bank and the commission over whether shareholders were misled about the bonuses.
The bank announced Monday it would exit a $118-billion asset-guarantee program it entered with the U.S. government on the heels of the Merrill Lynch purchase, paying a $425-million exit fee.
BofA CEO Won't Resign Unless Charged by SEC: Sources
Bank of America CEO Ken Lewis won't resign if he is slapped with civil charges from New York Attorney General Andrew Cuomo, but he's likely to leave if he is charged by the Securities and Exchange Commission, sources inside the Bank have told CNBC.
Lewis has been accused of misleading investors about the payment of more than $3 billion in bonuses through the bank's acquisition of Merrill Lynch.
Although BofA [BAC 17.61 0.36 (+2.09%) ] has already paid $33 million to settle the charges with the SEC, the agency has reopened its investigation against the bank.
Because of the intense scrutiny under which Lewis has been watched by the SEC, Cuomo and Congress, many have wondered whether the CEO will be able to survive the investigations and remain at Bank of America.
Market Insider: A Sober and Subdued Wall Street
With little else to sway it, the stock market should continue to trade quietly ahead of the Fed's Wednesday afternoon statement.
Stocks Tuesday drifted higher with as little enthusiasm as they drifted lower the day before. The Dow was up 51 at 9829, while the S&P 500 gained 7 to 1071 and Nasdaq rose 8 to 2146. Financials were the best performing sector, gaining 2.2 percent.
The energy sector was second best, up 1.4 percent as oil gained 2.6 percent to $71.55 per barrel. After the close, oil futures slid on new API data showing that supplies rose last week. Another batch of weekly oil and gasoline inventory data is released Wednesday at 10:30 a.m.
Gold and other commodities rose as the dollar sunk to a new year low. The dollar declined 0.84 percent to a one-year low against the euro of $1.48. Gold gained a percent to $1,015.50. The Reuters-Jefferies CRB index, which tracks 19 commodities, rose nearly 2 percent.
The Treasury auctions $40 billion in 5-year notes Wednesday at 1 p.m., an auction traders expect to go smoothly. Tuesday's auction of $43 billion in 2-year notes was well received. Bonds gained, with the yield on the 10-year falling to 3.456 percent and the 2-year slipping to 0.967 percent.
On Wednesday
The Fed is the main event of the day with the release of a statement at 2:15 p.m.
There are a handful of earnings: General Mills [GIS 60.97 0.31 (+0.51%) ] and AutoZone [AZO 152.92 -0.63 (-0.41%) ] ahead of the open and Bed, Bath and Beyond [BBBY 39.46 -0.33 (-0.83%) ], Cintas [CTAS 29.78 0.11 (+0.37%) ] and Paychex [PAYX 30.71 0.84 (+2.81%) ], after the closing bell.
Investors are also watching the gathering of world leaders at the United Nations General Assembly where President Obama speaks at 10 a.m. followed through the day by Russian President Dmitry Medvedev, French President Nikolas Sarkozy and U.K. Prime Minister Gordon Brown. At 6 p.m. Iranian President Mahmoud Ahmadinejad speaks. President Obama has separate meetings with Medvedev and Japan's new Prime Minister Yukio Hatoyama. He also meets with the peacekeeping nations in a closed-door session.
Fed Ahead
Besides a possible, slight upgrade to its economic view, traders don't expect the Fed to say much new.
But there was some chatter and wire reports that the Fed could consider reverse repurchase agreements to drain reserves, helping regulators remove some of the huge amount of liquidity it pumped into the system.
The reports said the Fed could sell securities to primary dealers in a program that would temporarily decrease the amount of money in the banking system and gently pressure interest rates without a rate hike.
David Ader, head of rates strategy at CRT, said he thinks it's too soon for the Fed to make this kind of move. "It's a little early for the Fed to consider the effective tightening of the money supply via reverse repos - but there is a camp skewed for any hint of it in the statement or the minutes that follow in mid-October. Cooler heads suggest this will not be a meaningful risk to the market until 2010," Ader wrote in a note.
J.P. Morgan economist Michael Feroli wrote in a note that the end of the Treasury's Supplementary Financing Program could mean the Fed may do a trial run of its exit strategy.
"The recently announced reduction in the SFP (the Treasury reserve-draining facility) may give the Fed the opportunity to test out some new reserve management tools in a way that doesn't send a signal of an imminent rate hike (that is, they could say we're just draining the $185 billion that the SFP is adding). Some of these tools would be committee decisions (reverse repos) others would be Board decisions (term deposit facility)," he wrote.
"The big talk is the exit strategy," said Ader later in an interview, adding that the talk about an exit strategy doesn't necessarily change the time frame. There have been reports that G-20, which meets Thursday, will also address the exit strategies from government programs around the globe.
"I would be surprised to see the Fed announcement materially different than what we saw in the August meeting. With that last announcement they put a little more emphasis on weak wage growth and emphasis that the recovery is going to be a slow and sluggish one," he said.
"I think it's going to be bland, and I think the market takes a little bit of relief from that," he said.
The debate in the stock market continues to be whether equities are moving ahead too far and need to correct, or whether they can keep chugging higher. Ader, from his bond market view, believes the former. "Because I'm typically pessimistic not he economy and more bullish on bonds, I'm genuinely worked about the stock market," he said.
Howard Marks, chairman of Oaktree Capital Management LP, said the markets are now at "fair" value but are getting a little rich. "I think it's a time for caution as an investor. Now with prices up 40, 50, 60 percent," he said Tuesday.
Marks said he was a buyer of distressed debt last fall, when the fear of a global financial collapse was at its height between mid-September and mid-November. "Then there were two, three buyers," he said.
Marks' view is that the rescue operations of the government are still unproven though markets have improved. "I think we're still in uncharted waters, an overused phrase...we have problems that have never arisen before," he said.
"This is not a test where the smartest kid in the room gets 100. This is a test where the smartest kid gets a 70. I hope we get a 70," he said.
Looking forward, he said it is unclear what the impact of the government's programs will be.
"I think the range of outcomes are very wide and some of those outcomes are very unattractive. Nobody really knows what the effect will be of long-term government stimulus, and also the effect of the government messing around with business," he said.
"What does the future hold? I think what it holds is defaults and bankruptcies." Some of those future bankruptcies can be seen now in the holdings of buyout funds, he said.
What Else to Watch
More discussions of regulatory reform.
Treasury Secretary Tim Geithner testifies before the House Financial Services committee on regulatory reform proposals at 9:30 a.m., and FDIC Chair Sheila Bair and other regulators appear before the committee at 2 p.m.
The GAO gives an update on implementation of stimulus funds. The report is issued at about 10 a.m.
Support for Health Care Reform Stabilizing: NBC/WSJ Poll
President Obama has stabilized his public standing in the effort to win passage of comprehensive health reform, but still confronts significant skepticism as Congress enters the decisive phase of legislative action.
In the midst of the president's heavy blitz in support of his health care plan, just 39% of Americans call it a good idea in a new NBC News/Wall Street Journal poll; 41% call it a bad idea. But that's slightly better than the 36% support and 42% disapproval in the NBC/WSJ survey in August.
Similarly, 53% say the quality of health care will improve or stay the same under Obama's plan, up from 51% in August. And by a 45%-39% plurality, Americans say it would be better for Congress to enact Mr. Obama's plan rather than to leave the health care system as it is.
The telephone poll of 1,005 adults, conducted Sept 17-20, carries a margin for error of 3.1 percentage points.
Mr. Obama's own job approval rating held steady over the past month at 51%, though that level is down from the 61% mark he received in April. By a 48% to 39% plurality, Americans say the country is headed in the wrong direction.
Rising Economic Confidence
The survey points to slightly greater public confidence in the economy, which in turn has helped to swell the ranks of those concerned about the budget deficit. By 62% to 30%, Americans say the president and Congress should focus on reducing the budget deficit rather than boosting the economy.
But the economic improvement shows no sign yet of benefiting Mr. Obama's party in advance of 2010 Congressional elections. Just 22% say they approve of Congress' job performance, down from 29% in June. And just 43% say they want Democrats to retain control of Congress in 2010, down from 46% in July; 40% want Republicans to win control.
Nearly half of all Americans—47%—now believe the nation's economy will get better over the next 12 months, according to the nationwide poll of 1,005 adults that was conducted Sept. 17-20. That's up from 44% in July, the last time the poll was taken.
As for job security, 36% said they were very satisfied, up from 30% in July.
A majority of Americans—52%—still believes the economy has a way to go before hitting bottom, though that's less then the 58% that believed so in July. And 35% believe the economy has hit bottom, up from 27% two months ago.
The poll has a margin of error of plus or minus 3.1 percentage points.
World Bank lends more than $4.3 billion to India
The World Bank said Tuesday it has approved more than $4.3 billion worth of projects designed to boost India's infrastructure and economic stimulus program.
"This is a crucial time to support India," World Bank Country Director for India Roberto Zagha said in a statement.
"While the worst of the crisis seems to be behind us, doubts linger about the strength of the comeback," Zagha said. "Today's support will help maintain credit growth and continued infrastructure investments."
The World Bank said that after achieving 9.7% economic growth in 2006 and 2007, the Indian economy will see its growth fall to a projected rate of between 5.5% and 6.5% for the years 2009 and 2010.
A $2 billion banking-sector loan will help the Indian government maintain its "broad economic stimulus program," by supporting credit growth levels, the World Bank said.
Meanwhile a $1.2 billion loan to the India Infrastructure Finance Co. is designed to support efforts to finance public-private partnerships in infrastructure, and a $1 billion loan to the Fifth Power System Development Project "is designed to help address India's acute deficit of power," the World Bank said.
The bank also said it approved a $150 million loan for the Andhra Pradesh Rural Water Supply and Sanitation Project.
Glaxo reportedly eyeing India's Piramal, Dr. Reddy's
GlaxoSmithKline PLC /quotes/comstock/13*!gsk/quotes/nls/gsk (GSK 39.64, +0.05, +0.13%) has hired investment bank Lazard and Co. to evaluate potential acquisitions in India, livemint.com reported Wednesday, citing an investment banker familiar with the matter, who spoke on condition of anonymity.
The company has narrowed its search down to Piramal Healthcare Ltd. and Dr Reddy's Laboratories Ltd. /quotes/comstock/13*!rdy/quotes/nls/rdy (RDY 18.07, +0.01, +0.06%) , the Web site reported the investment banker as saying.
A spokesperson for GlaxoSmithKline said the company didn't comment on investment bank mandates, while a spokesperson for Dr Reddy's said the company didn't comment on market speculation, the Web site reported.
A senior official at Piramal Healthcare said the company received proposals from merchant bankers, but hasn't so far looked at such offers seriously, the Web site said.
INVESTMENT VIEW
SSPDL Limited: Gets Funding for 3 Projects from India REIT Advisors
BSE 530821; CMP Rs 37.95
Hyderabad, Chennai and Bangalore projects are being funded by the two domestic Ajay Piramal owned India REIT Advisors Funds and one offshore India REIT Fund, with a total corpus of nearly Rs 2000 crore. The funding principle is that projects should pay double the book value or have an inbuilt IRR of 18 per cent.
SSPDL has executed 12 projects in the last few years spread over the cities of Hyderabad and Chennai and another 15 projects are under various stages of completion in the four cities of Hyderabad, Chennai, Bangalore and Munnar.
On-going Projects:
1.The Retreat Bangalore-12 Villas, Project size 48 Acres (Funded By India REIT)
The Retreat is designed by the well established architectural firm of ASLAM ASSOCIATES. These bangalore based architects have several upscale projects and malls to their credit in Bangalore and Hyderabad. The villas at The Retreat have been designed by SPAN DESIGNERS, Bangalore.
The Retreat is located in Devanahalli - a 40-minute drive from MG Road, just 10 minutes from the new International Airport. As you drive, the traffic, smog and incessant rumlings of the city fade, making way for fresh breeze, open skies and the sound of birds. In this idyllic setting, amidst trees and lake, are luxury villas surrounded with every amenity, to make your life sheer bliss.
Gated community project, located at Devenahalli, Bangalore. Total area: 0.35 Million square feet.
Key highlights: Ideally located near new upcoming international airport; Already received over 40% pre-sales from domestic and international buyers.
2.The Ferns, Chennai-50 Villas
Worth Rs 9 crore this project is due for completion in September 2009.
3.TCG IT Park, Chennai-Due For Completion (Funded By India REIT)
IT/ITES Campus at OMR Road – an upcoming IT corridor; Total area: 0.34 Million square feet.
Key highlights:
Project comprises of three blocks
Structural work has already been completed and buildings are ready for fit-outs
Active interest received from leading IT players.
4. The Retreat, Hyderabad-Gated Township 128 Acres
5. The Promenade, Chennai
This upcoming landmark at Egattur will have 1.1 million sq. ft. of built-up area in a 9.5 acres layout consisting of shopping arcade, NOVOTEL & IBIS star hotels and high-end corporate offices.
6. Northwoods, Hyderabad-Constructions of 200 + villas.
7. Green Acres, Chennai-A one-of-a-kind residence of luxury apartments, laid out over 8 acre overlooking a pictureque lake and appointed with all the trappings of luxurious living.
8. The Retreat, Kalar Valley, Kerala-A hill resort spread over 320 acres of cardamom plantation featuring Eco Resort and Jungle Holiday Villa Homes.
9. Avion, Hyderabad-A plotted residential township spread over 30 acres at Shamshabad (near the New International Airport). Funded By India REIT Offshore Fund.
Located amongst upcoming prime residential zone of Hyderabad, the Miyapur-Kukatpally belt. The site is located at 13 Km from the current city airport and 9 Km from existing IT hub of Gachibowli. Total area: 1.50 Million square feet.
Key highlights:
Project is located close to densely populated Kukatpally residential and is easily accessible from key commercial zones such as Gachibowli and Hyderabad airport.
10. Matrix Towers, Chennai-A Class-A IT Park in the heart of Chennai's IT corridor (OMR) in 1.07 acre at Perungudi, with a stunning façade and 200,000 sq. ft. of well planned space.
11. Crescent Chennai-Well designed premium apartments in a one acre layout located on Kelambakkam High Road with a choice of apartments ranging from 603 sq. ft to 1292 sq. ft. that are functional besides appealing to your sense of style.
12. Lakewood Enclave, Chennai-Located off-IT corridor at Thalambur, a quiet residential enclave of villas, twin-houses and apartments spread over 4 acres in the midst of greenery and overlooking a natural lake.
(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.)
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Arvind Parekh
+ 91 98432 32381
