China's trade surplus shrinks

China's trade surplus has shrunk to roughly a third of the level in the same month a year ago.

Customs authorities in China have put the figure at US$8.56 billion dollars in February.

Economists had been expecting a weakening of export performance, due to economic woes in the US, which have made consumers less likely to but Chinese-made goods.

They have also warned that China's exports are under threat from a variety of factors, including a strengthening of the yuan, the local currency.

140 Indian companies in Russian trade fair

IANS

Moscow, March 2 (RIA Novosti) Around 140 Indian companies will be in the spotlight when they showcase their products at the international trade fair being organised in St. Petersburg March 11-14.

Companies from 17 countries, including India, Germany, Denmark, Britain and China, will participate in the four-day event.

'The first day of the fair will be devoted to Indian industry to commemorate the Year of Russia, which is now under way in India,' said Igor Kirsanov, director general of the Restek Company and organiser of the event.

The latest innovations in the fields of engineering, metalworking, metallurgical products and car parts will be displayed at the four pavilions of the Lenexpo exhibition complex.

The huge Indian delegation to the fair in St Petersburg is a clear indication that Indian companies are interested in cooperation with their Russian counterparts.

The biggest draw will be the new Indian car Tata Nano, the world's cheapest car, tagged at just $2,500. According to the organisers, the Russians are eager to see the car, though it is not clear whether the car will be brought here.

The Indian companies are keen on supplying car parts for the automobile assembly plants here. Toyota launched its assembly plant in 2007 and General Motors in February this year. Nissan, Suzuki and Hyundai will also set up their ventures soon. Ford has its plant in the Leningrad region.

According to Mikhail Oseyevsky, deputy governor of St Petersburg, besides the automotive industry, Indian businessmen are also interested in cooperation in the information technology and metallurgical sectors.

Alongside the Indian delegation, companies from the Czech Republic, Finland, Germany, Denmark, Britain, China, Turkey, South Korea, Austria, Croatia, Belarus and Ukraine will participate in the fair.

Global giants such as General Motors, Ford, Electrolux, Siemens and Bosch will showcase their products in the exhibition.

India's Sharp Tools and Russia's Elslar are likely to sign an agreement for a joint venture company - named Esweld - that will manufacture components for welding operations in the Elektrostal region near Moscow.

Dow Jones crashes 314 points, Nasdaq 60

Big News Network.com Friday 29th February, 2008

Bulls were on their pants as Wall Street Friday as bears remained firmly in control of equity markets. The relentless fall in the U.S. dollar, and lingering fears of a recession, was the talk of the town. Sellers sent the Dow Jones Industrials down 314.32 points or 2.50% by the close of trading to 12,267.86. The Nasdaq Composite shed 60.09 points or 2.58% to 2,271.48. The Standard and Poor's 500 lost 37.05 points or 2.71% to 1,330.63. The National Association of Purchasing Managers-Chicago reported its index of regional business conditions fell to 44.5, its lowest reading in more than six years, from 51.5 in January. "It looks like there's been a reversal of fortune for the manufacturing sector from last month and the economy appears to have fallen off a cliff," Chris Rupkey, senior financial economist, Bank of Tokyo/Mitsubishi, New York, in referring to the Chicago PMI report, told Reuters newsagency. "This is just the latest piece of evidence that the U.S. economy is teetering on the edge of recession," he said. The dollar on Friday hit new record lows against the euro and Swiss franc, and dived to a three-year low against the Japanese yen.

Microsoft email prepares workers for Yahoo takeover

TOI Monday 25th February, 2008
SAN FRANCISCO: A Microsoft executive on Friday sent workers an upbeat email outlining a vision of how the software giant expects to take over Yahoo and merge the companies’ cultures and resources.

Yahoo spurned Microsoft’s $44.6-billion bid for the veteran internet firm on February 11. Microsoft is reportedly planning a hostile takeover bid if Yahoo’s board of directors doesn’t change its mind. In a message to employees, Microsoft platform and services division president Kevin Johnson shared “a perspective of the process going forward.” “We look forward to a constructive dialogue with Yahoo’s board, management, shareholders, and employees on the value of this combination and its strategic and financial merits,” Johnson wrote.

“Once Yahoo and Microsoft agree on a transaction, we can begin the integration planning process in parallel with the regulatory review.” If Yahoo capitulates, the transaction would likely close in the second half of this year, according to Johnson

Message for Retail Investors on MarginTrading

Why should there be margins?

Just as we are faced with day to day uncertainties pertaining to weather, health, traffic etc and take steps to minimize the uncertainties, so also in the stock markets, there is uncertainty in the movement of share prices. This uncertainty leading to risk is sought to be addressed by margining systems by stock markets.Suppose an investor, purchases 1000 shares of 'xyz' company at Rs.100/- on January 1,2008. Investor has to give the purchase amount of Rs. 1,00,000/- (1000X100) to his broker on or before January 2, 2008. Broker, in turn, has to give this money to stock Exchange on January 3, 2008.

There is always a small chance that the investor may not be able to bring the required money by required date. As an advance for buying the shares, investor is required to pay a portion of the total amount of Rs. 1,00,000/- to the broker at the time of placing the buy order. Stock Exchange in turn collects similar amount from the broker upon execution of the order. This initial token payment is called margin.
Remember, for every buyer there is a seller and if the buyer does not bring the money, seller may not get his/her money. Margin is levied on the seller also to ensure that he/she gives the 100 shares sold to the broker who in turn gives it to the Stock Exchange. Margin payments ensure that each investor is serious about buying or selling shares.

In the above example, assume that margin was 15%. that is investor has to give Rs. 15,000/- (15% of Rs. 1,00,000/-) to the broker before buying. Now suppose that investor bought the shares at 11 am on January 1.2008. Assume that by the end of the day price of the share falls by Rs. 25/-. That is total value of the shares has come down to Rs. 75,000/-. That is buyer has suffered a notional loss of Rs. 25,000/-. In our example buyer has paid Rs. 15,000/- as margin
but the notional loss, because of fall in price, is Rs. 25,000/-.. That is notional loss is more than the margin given.

In such a situation, the buyers may not want to pay Rs. 1,00,000/- for the share whose value has come down to Rs. 75,000/-. Similarly, if the price has gone up by Rs. 25/-, the seller may not want to give the share at Rs. 1,00,000/-. To ensure that both buyers and sellers fulfill their obligations irrespective of prices movements, notional losses are also need to be collected. Prices of shares may keep on moving everyday. Margins ensure that buyers bring money and sellers bring shares to complete their obligations even though the prices have moved down or up.

Govt may consider FDI in specific retail sectors: Kamal Nath

PTI
New Delhi: The government may allow Foreign Direct Investment for specific sectors such as electronic and sports goods in retail if an expert study going into the issue foresees no impact on the neighbourhood mom and pop stores.
“We are expecting the ICRIER report on retail by the end of February. Certainly, we can be more flexible in areas of retail like electronics and sports goods. But, I want to see the whole report and make sure what I believe is correct and is backed by a report,” said Kamal Nath, Commerce and Industry Minister.
Nath said he had commissioned the Indian Council of Research in International Economic Relations (ICRIER) to come out with a study on retail to understand the impact of big retail on the small shops.
“Until I have the ICRIER report, I cannot do (open) retail. I have got to ensure these basic things. The point is that the neighbourhood store should not be hit,” he said, adding that the retail has to be seen in a totally India- specific context and not in a general sense.
“Retail in India is not like retail in Malaysia or Thailand,” he said.
However, opening sectors like electronics, sports goods, pharmacy and confectionery to FDI would not have an impact on the neighbourhood stores but would instead drive the Indian industry, Nath said.
Nath said the country’s ”prime concern is that our small retailers are not dislocated. ...I want to find a job for the sons and daughters, nephews and nieces,“ and added that FDI in specific sectors would create additional jobs.
He said said an international sports goods brand entering India would not be competing with a kirana store, since that is a different type of retail.
Barring defence equipment, retail and the financial sector, FDI norms for all other key sectors have been liberalised, he said.
The government liberalised on January 30 FDI norms in areas such as civil aviation, petroleum refining, credit information companies, industrial parks and commodity exchanges. However, retail was kept out of the FDI policy review since there were concerns that opening the sector would adversely impact the small retailers across the country.

Yahoo board to turn down Microsoft’s unsolicited $44.6 bn bid

Yahoo Inc.’s board will reject Microsoft Corp.’s $44.6 billion 30.7 bn takeover bid after concluding that the unsolicited offer undervalues the slumping Internet pioneer, a person familiar with the situation said.
The decision could provoke a showdown between two of the world’s most prominent technology companies with Internet search leader Google Inc. looming in the background. Leery of Microsoft expanding its turf on the Internet, Google already has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal.
If the world’s largest software maker wants Yahoo badly enough, Microsoft could try to override Yahoo’s board by taking its offer that was originally valued at $31 per share directly to the shareholders. Pursuing that risky route probably will require Microsoft to attempt to oust Yahoo’s current 10-member board.

Maruti Suzuki raises prices

Maruti Suzuki raises prices by 1,000-11,000 rupees :
India's top car maker, Maruti Suzuki India Ltd, said on Saturday it had raised prices of many of its models by 1,000-11,000 rupees, mostly due to higher raw material prices.
Maruti is a unit of Japan's Suzuki Motor Corp and its models include the Alto and Swift hatchback."

France's Sarkozy marries Bruni at the Elysee

French President Nicolas Sarkozy has married supermodel-turned-singer Carla Bruni at the Elysee Palace on Saturday, after three long months their dating, French officials and family said.
The pair tied the knot at a low-key, civil ceremony conducted by the mayor of the Paris district that houses the president's grandiose official residence.

'I married two voters ... who live at 55 Rue du Faubourg St Honore,' Mayor Francois Lebel told Europe 1 radio, giving the official address of the Elysee.

'The bride was wearing white and was ravishing, as usual,' he said, adding: 'The bridegroom wasn't bad either.'
Sarkozy and Bruni indicated last month that had plans of marriage he made it clear that it would be a private affair, far from the crouching eyes of the press.
Their courtship has been splashed across the media and Sarkozy's popularity ratings had plunged in recent weeks, with voters complaining that the president was focusing too much on his private life and not enough on the country's many problems.