Rain continues in south India, reduces in east

The low pressure off Andhra Pradesh coast in westcentral Bay of Bengal will continue to bring rain in south peninsula from north Andhra Pradesh coast to north Tamil Nadu during the next 48 hours.

The weather system is well supported by a trough (region of intensified moist winds) that persists from south Orissa coast to north Tamil Nadu along the east coast.

Under the aegis of both these system, light rain will occur in south Orissa, south Chhattisgarh, Vidarbha and Telangana. North coastal Andhra Pradesh, Rayalaseema and south interior Karnataka will receive moderate rain at few places.

Along the west coast, rain will reduce over Kerala and Karnataka but is expected to increase over Maharashtra coast including Mumbai in next 24 hours.

In north India, rain will be scattered. Though, a cyclonic circulation lies over Haryana and adjoining west Uttar Pradesh, it will not have much bearance in terms of rain.

Rain is expected to reduce over the foothills of Himalayas in east Uttar Pradesh, north Bihar, sub-Himalayan West Bengal and Sikkim. It will also reduce in northeast region over Assam and Arunachal Pradesh.

South Jharkhand, Gangetic West Bengal and southern parts of northeast India will continue to receive showers.

Central India will remain very warm due as there is no weather system in the offing.

By: Skymetweather.com

23.08 | 0 komentar | Read More

Dollar higher vs. yen on Tokyo Olympics news

Investing.com - The dollar was higher against the broadly weaker yen on Monday following strong gains in Japanese equities markets overnight as news that Tokyo won the bid to host the 2020 Olympics bolstered market sentiment.

During European morning trade, the dollar gained ground against the yen, with USD/JPY rising 0.32% to 99.43, after rising as high as 100.11 earlier.

Demand for the safe haven yen was hit as Japan's Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.

Risk appetite was also helped after upbeat trade data out of China added to indications that the world's second largest economy is recovering from a slowdown.

Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.

Meanwhile, data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.

In Japan, revised data showed that the economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.

The dollar's gain were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.

Elsewhere, the euro edged higher against the dollar, with EUR/USD rising 0.10% to 1.3195.

The euro found support after the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.

The pound was also higher against the dollar, with GBP/USD advancing 0.25% to 1.5669.

The dollar slipped lower against the Swiss franc, with USD/CHF dipping 0.07% to 0.9367.

Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.35% to 0.9221, NZD/USD edging up 0.05% to 0.8010 and USD/CAD shedding 0.27% to trade at 1.0383.

The Australian dollar remained supported by the Chinese data in the first day of trade after federal elections in Australia.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11% to 82.09.

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Forex - USD/CHF steady after disappointing Swiss retail sales

Investing.com - The U.S. dollar was steady against the Swiss franc on Monday, after the release of disappointing Swiss retail sales data, as demand for the greenback remained under pressure following Friday's lower-than-expected U.S. jobs report.

USD/CHF hit 0.9366 during European morning trade, the session low; the pair subsequently consolidated at 0.9369, dipping 0.05%.

The pair was likely to find support at 0.9314, the low of September 2 and resistance at 0.9456, the high of September 6 and a nearly two-month high.

Official data showed that Swiss retail sales rose by an annualized rate of 0.8% in July, below expectations for a 3.2% increase, after a 2.3% rise the previous month.

Meanwhile, the greenback remained under pressure after lower-than-expected U.S. nonfarm on Friday dampened expectations that the Federal Reserve could start to pull back stimulus measures later this month.

Separately, concerns over a possible conflict in Syria persisted after Syrian President Bashar al-Assad over the weekend denied authorizing a chemical weapons attack on his own citizens.

The comments came as the U.S. government was set to vote this week on President Barack Obama's proposal to launch a missile strike.

The Swissie was steady against the euro with EUR/CHF inching up 0.02%, to hit 1.2359.

The euro found support after the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.

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Dollar higher vs. yen as China data boosts sentiment

Investing.com - The dollar was higher against the yen on Monday as news that Tokyo won the bid to host the 2020 Olympics and upbeat data out of China bolstered market sentiment.

During European late morning trade, the dollar gained ground against the yen, with USD/JPY rising 0.37% to 99.48, after rising as high as 100.11 earlier.

Demand for the safe haven yen was hit as Japan's Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.

Risk appetite was also helped after upbeat trade data out of China added to indications that the world's second largest economy is recovering from a slowdown.

Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.

Meanwhile, data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.

In Japan, revised data showed that the economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.

The dollar's gains were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.

Elsewhere, the euro edged higher against the dollar, with EUR/USD inching up 0.08% to 1.3191.

The euro found support after the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.

The pound was also higher against the dollar, with GBP/USD advancing 0.32% to 1.5680.

The dollar slipped lower against the Swiss franc, with USD/CHF dipping 0.07% to 0.9367.

Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.15% to 0.9203, NZD/USD edging up 0.03% to 0.8003 and USD/CAD shedding 0.29% to trade at 1.0381.

The Australian dollar remained supported by the Chinese data in the first day of trade after federal elections in Australia.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% to 82.12.

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Trai's suggestions on reserve price for spectrum auction

Trai, in its recommendations, states that the Department of Telecom (DoT) should come out with a clear roadmap indicating the quantum of spectrum, which will be made available in the future. So that licenses, which are up for renewal in 2015-2016 can make an informed decision about bidding for the spectrum in the 1,800 MHz band.

Trai says there will be no reservation of spectrum for the renewal of licencees in the 900 megahertz (MHz) or the 1,800 MHz band. No priority will be accorded to these licencees in the bidding process and all bidders should be treated alike.

Also Read: Govt asks TRAI to reconsider cap on ads on channels

The Department of Telecommunications (DoT), through its reference dated July 10, 2013, had sought Trai's recommendations on the applicable reserve price for the auction of spectrum in the 800 MHz, 900 MHz and 1800 MHz bands.

The Block size in 1800 MHz auction is 2X200 KHz. Trai also says existing licencees will have to bid for a minimum of three blocks. New entrants have to bid for a minimum of 25 blocks of 2x200Khz each.

The block size in 900 MHz auction is 2x1 MHz. As per Trai's recommendations, each bidder must bid for a minimum of five blocks in 900 MHz auction.

Trai has retained eligibility norms of November 2012 and March 2013 auctions.

Trai says spectrum trading should be permitted, which allows even private entities to sell or lease airwaves for services. The regulator was earlier of the opinion that allowing spectrum trading might result in anti-competitive conduct through hoarding of spectrum  or consolidation or an incumbent may Debar newcomers from providing service by buying out the spectrum required for services. It further recommends flat spectrum usage charge.

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European stocks remain lower despite upbeat E.Z. data; Dax down 0.10%

Investing.com - European stocks remained lower on Monday, despite the release of upbeat euro zone investor confidence data, as concerns over a possible U.S. military strike against Syria continued to linger.

During European afternoon trade, the EURO STOXX 50 slid 0.32%, France's CAC 40 retreated 0.58%, while Germany's DAX 30 slipped 0.10%.

Data earlier showed that the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.

But concerns over a possible conflict in Syria persisted after Syrian President Bashar al-Assad over the weekend denied authorizing a chemical weapons attack on his own citizens.

The comments came as the U.S. government was set to vote this week on President Barack Obama's proposal to launch a missile strike.

Financial stocks remained mixed, as BNP Paribas slid 0.49% and Societe Generale advanced 0.82% in France, while Germany's Deutsche Bank rose 0.37%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA declined 0.76% and 0.92% respectively, while Italy's Intesa Sanpaolo and Unicredit rallied 0.91% and 2.05%.

Elsewhere, Royal KPN edged down 0.14% after the Dutch phone carrier, subject of a takeover proposal by America Movil, said Chief Financial Officer Eric Hageman is stepping down for personal reasons.

In London, FTSE 100 shed 0.52%.

Financial stocks remained mostly higher, as shares in the Royal Bank of Scotland gained 0.64% and Barclays climbed 0.40%, while Lloyds Banking jumped 1.20%.

Meanwhile, mining stocks turned broadly upward. Glencore Xstrata and Fresnillo rallied 1.15% and 2.25% respectively, while Eurasian Natural Resources added 0.09%, erasing earlier losses.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.21% gain, S&P 500 futures signaled a 0.24% rise, while the Nasdaq 100 futures indicated a 0.44% increase.

In addition, improved trade data out of China over the weekend added to indications that the world's second largest economy is recovering from a slowdown. Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.

Data on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.

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Rahul Khullar's candid foreword to Trai on spectrum pricing

The redoubtable Rahul Khullar has done it again. For years, this economist-bureaucrat, has been known for his ability to speak his mind and speak it plainly. One may agree or disagree with him, but one cannot but respect his confidence in stating the unpalatable truth, truth that may even go against prevailing national sentiment. And as the telecom regulator, who is known to have the Prime Minister's ear, he is doing some straight talking once again.

So, Mr Khullar has taken the opportunity of writing a candid foreword to the Telecom Regulatory Authority of India's latest report on the valuation and pricing of spectrum. While industry picks through the fine points of the recommendations, which among other things suggest a steep 40-60 percent cut in spectrum reserve prices, it is worthwhile to read the justification that Khullar has provided.

Khullar quotes Lord Keynes in the beginning and ends with Carveth Read.

No excerpts can do justice to the foreword, which must to be read in the full, but nevertheless a few mentions are equally must.

"Given that the Authority had made recommendations on spectrum prices in 2010, 2011 and 2012, it became necessary to reflect on and question the premises on which those conclusions were based. This is never an easy task for any institution. As Lord Keynes observed "The difficulty lies not in the new ideas, but in escaping from the old ones which ramify…..into every corner of our minds".

"The lament of industry over the past two years over 'policy paralysis' and the lack of critical decision making is testimony of this despair. The Authority could not but be influenced by the prevailing atmosphere. It also had to bear in mind the Honourable Supreme Court's scathing observations on the administrative allocation of licenses and spectrum. In retrospect, the Authority's recommendations of May, 2012 need to be seen in this light."

"The estimate of losses based on presumptions has, in some measure, contributed to the pernicious atmosphere leading to the decision standstill. While no one questions that there was indeed a loss, the egregious estimates of losses that were initially bandied about to sensationalize the issue no longer carry credence. Within the Government, the lurking fears that motives will be imputed for any decision have had its own fallout. And, all of this has entailed real economic losses".

"We must learn from history. As Santayana observed, "Those who cannot remember the past are condemned to repeat it." The irrational exuberance surrounding the 2010 auction has abated. India's economic prospects have lost lustre and the market's mood has become far more somber. Times have changed as has the situation."

"The Authority is of the view that it is best to candidly accept that valuation of spectrum is difficult and not infallible. The value of spectrum changes over time, a product of both evolving economic circumstances and rapid technological change. The Authority is no soothsayer; it is impossible to predict what the value (price) of spectrum would be 5 or 10 years from now, much less 20 years hence, the terminal date for a spectrum license. In fact, valuations 5 to 10 years forward may be far higher than today's estimates. Trying to estimate a price, say a 2023 valuation, for spectrum, would be foolhardy. Worse yet, even if it could be done accurately, who would be willing to buy spectrum at estimated 2023 prices in today's auction?"

"The driving consideration throughout this paper has been Carveth Read's observation that: "It is better to be vaguely right rather than exactly wrong".

For those with an interest in telecom, spectrum and even the entire economy, Khullar's plain speaking should provide further insights into what must be a subject for renewed debate.

23.08 | 0 komentar | Read More

OVL-IOC-Petronet consortia in talks for stake in Yamal LNG

A consortium on ONGC Videsh Ltd, Indian Oil Corp (IOC) and Petronet LNG Ltd is in talks to buy about 9-10 percent stake in Russian natural-gas producer OAO Novatek's USD 20 billion Yamal LNG Project.

Also Read: Govt move to force old gas price for KG-D6 gas illegal: RIL

The Indian consortia is sending a team of officials to Russia this month for negotiations for a stake in the project that will aim to make 16.5 million tonnes of liquefied natural gas (LNG) a year and start shipments in 2016, sources with direct knowledge of the development said.

OVL-IOC-Petronet were originally interested in taking up to 15 percent stake in the Yamal project, which also requires construction of an airport and port on the Arctic Ocean. But they will have to settle for a smaller stake after Novatek last week sold a 20 percent stake in the project to China National Petroleum Corp (CNPC).

Total SA of France had in March 2011 bought 12 percent stake in the project for about USD 4 billion. Since then, it has raised the stake to 20 percent. Novatek, which is now left with 60 percent of the venture, is ready to cut its holding to 51 percent if potential partners offer markets for the gas.

Sources said Petronet, which operates two LNG import facilities in Gujarat and Kerala, has been included in the consortium so as to give the seller the comfort of buying the liquid gas.

The Indian consortia is willing to buy 5 million tonnes a year of LNG from the Arctic project. Last week, CNPC pledged to purchase at least 3 million tonnes a year of LNG from Yamal. India's natural gas demand is projected to jump to 378.06 million standard cubic metres per day in 2016-17 from 242.66 mmscmd in 2012-13. Domestic supplies in 2012-13 were about 101.1 mmscmd and 44.6 mmscmd came through imported LNG, still leaving a vast unmet demand.

Domestic supplies of 156.7 mmscmd and planned LNG imports of 143 mmscmd in 2016-17 will be short of the demand, they said. Novatek, Russia's second-largest gas producer, plans to make a final investment decision on Yamal in the third or fourth quarter of this year. The Yamal LNG project is expected to comprise three LNG trains, each with a capacity of 5.5 million tonnes a year. The first train is planned to come online in late 2016, with the second and third due in 2017 and 2018, respectively.

Yamal LNG is based on feedstock resources from the South Tambeyskoye field, which contained proven and probable reserves of 907 billion cubic meters of natural gas as of December 31, 2012.

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SC judge recuses from hearing PIL against price rise of gas

A Supreme Court judge today recused himself from hearing a plea against the Centre and Reliance Industries on government's controversial decision to raise the price of natural gas.

Also Read: Govt move to force old gas price for KG-D6 gas illegal: RIL

"Not before me," Justice HL Dattu said when a PIL, filed by civil society members including former Cabinet Secretary TSR Subramanian and ex-Naval chief Admiral L Ramdas, came up for hearing before a bench headed by him. Advocate Prashant Bhushan, appearing for the petitioner submitted that a similar matter is pending before a bench headed by the Chief Justice and pleaded that the matter be also transferred to that bench.

Justice Dattu, however, refused to pass any order and said, without giving any reason, that he cannot hear the case. Alleging "collusion between RIL and the political establishment", the petitioners sought an inquiry on why the Centre did not take any action against the company for its misconduct.

"Issue order directing a thorough investigation by an SIT or CBI under the supervision of this court, into the high level collusion between RIL and the political establishment and the corruption involved, as has been highlighted in the instant petition, including on the aspects of not taking any action against RIL for its misconduct," the petitioners said in the PIL.

The petitioners, who included former Secretary Ramaswamy Iyer and NGO Common Cause, also sought direction for a thorough audit by CAG of the working of the PSC governing KG block, gold plating by RIL, the underproduction by RIL and all related issues.

A similar petition was earlier filed by CPI MP Gurudas Dasgupta and the apex court had on July 29 issued notice to the Centre and RIL. The government recently decided to increase the price of natural gas from USD 4.2 per million British thermal unit (mbtu) to USD 8.4 mbtu from April 1, 2014. The new USD 8.4 mbtu price, which will be reviewed every three months, will apply to all the gas producers uniformly including state-owned firms like Oil India Limited (OIL) and Natural Gas Corporation (ONGC) and private companies like RIL.

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Equity NAVs surge as markets end higher

Equity Mutual Funds closed in a positive terrain as markets end higher, debt long term and debt short term fund decline.

Equity Mutual Funds advanced for the third consecutive day on Friday as markets end higher. The week was quite strong for the market with the Sensex gaining 650 points on the back of measures for banks & rupee by new RBI governor Raghuram Rajan and hopes of fuel price hike this weekend. All the funds in the equity domain advanced registering very few decline.

In the sector space, Pharma and FMCG fund advanced with no decline, while all other sector categories advanced registering very few decline.

The Sensex was up 290.30 points to close at 19270.06, continuing its upward journey for the third consecutive session. The Nifty rallied 87.45 points to 5680.40.

On the fixed income front, funds in the long term and short term category decline as the Indian government bonds slumped on Friday, falling for a second consecutive session ahead of a long weekend, as investors feared the U.S. monthly jobs data later in the day could point to the start of the monetary stimulus tapering.

Equity diversified: Top gainers

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