China’s exports probably ended a 13- month slide in December

International News:

China’s exports probably ended a 13- month slide in December, aiding an economic rebound that has so far depended on government stimulus measures and a credit-fueled building boom. US December sales rose 2.8 percent compared with a year ago, according to the ICSC sales index; sales for the year fell 2 percent from all of 2008. For November and December combined, the index rose 1.8 percent, better than the group's estimate for a 1 percent gain. Last year, holiday sales fell 5.8 percent, the biggest sales decline for the key period in at least four decades. The number of Americans filing new claims for unemployment rose to 434,000 last week from 433,000 the previous week, the Labor Department reported Thursday. Economists surveyed by Briefing.com thought it would rise to 439,000, on average. Continuing claims, a measure of Americans who have been receiving benefits for a week or more, fell to 4,802,000 from 4,981,000 the previous week. Economists thought it would ease to 4,975,000.

Domestic News:

Food Inflation for the week ended December 26, 2009 stood at 18.22% compared to 19.83% for the previous week. The rupee hit a 15-month high against the dollar to breach Rs.46 levels. The rupee closed at Rs.45.70. The government will allow companies to adjust fringe benefit tax (FBT) paid by them against the advance tax due in the March quarter. The government may introduce legislation in the Budget session to make necessary constitutional amendments and facilitate the launch of GST. The merger talks between BSNL and MTNL have resumed. The two PSUs discussed the issue with the Prime Minister on Wednesday. Karnataka Government has offered two sites to Arcellor Mittal group for setting up its Rs.30,000 crore plant. Future Group is in the process of launching telecom services. The business model would be based on MVNO platform. The announcement is expected over the next six to eight weeks. Reliance Media Works acquired the assets of ilab UK Ltd. Strides Arcolabs is looking to supply drugs for niche therapeutics areas with global drug pharma companies. The merger between Catholic Syrian Bank and Federal Bank may not take effect due to differences over valuation. SAIL may cut prices of some of its products in the near future. Suryachakra Power Corporation is in talks with private equity players to raise funds for its Rs.2000 crore Phase I expansion plans. BGR Energy has tied up with a US-based company for heat recovery systems. The company shall invest close to Rs.40 crore in this new facility. Future Group has shelved its plans to set up standalone stores for retailing of electrical and lighting products to conserve cash. PSL Ltd. is augmenting its manufacturing capacity by 20 per cent to meet the demand from the oil and gas and water treatment sectors.