EQUITY UPDATE: 17 AUGUST 2012

ASIA

Japan would soon overtake China to become the biggest creditor to the U.S as it purchased USD 10.4 b of Treasuries in June to take its total to USD 61.3 b. total holdings in U.S Treasuries came in at USD 1.193 t vs China’s USD 1.164 t. (Bloomberg)

South Korea’s jobless rate declined marginally to 3.1 percent in July vs 3.2 percent in June. Expectations came in at 3.3 percent. The decline was contributed by rise in the no. of self-employed workers and rise in service-sector jobs. (Reuters)

China National Gold Group Corp – Precious metals mining firm is in early talks to purchase Barrick Gold Corp’s 73.9 percent stake in mining firm African Barrick Gold plc. (Bloomberg)

China Mobile – Co. reported lower than expected 2Q12 profit at RMB 54.40 b (USD 5.4 b) vs RMB 34.42 b a year ago, based on its 1HY12 earnings data. The co. saw its sales rise to RMB 139.1 b vs USD 131.9 b in the quarter a year ago. Estimates came in at RMB 140.5 b. The co. saw higher costs on attracting new customers amid slowdown in the economy. (Bloomberg)

INDIA

DII’s made gross purchases of INR 1,259.33cr and sales of INR 1,034.03cr. FII’s made gross purchases of INR 2,447.90cr and sales of totaling at INR 2,352.89cr. (Business Standard)

Indian oil marketing co.’s (OMCs) are faced with losses of INR 450 cr a day on rising prices of crude oil in the international markets and the fall of the rupee. Since the OMCs purchase oil, diesel and cooking gas at international rates and sell them at government-controlled rates, the difference in prices would see losses widen if it does not receive timely subsidies from the government. (Business Standard)

Maruti Suzuki – Co. to restart its Manesar plant on 21 August and said it is planning to remove 500 contract workers over their alleged involvement in the violence.  Co. to make 150 cars a day at its Manesar plant. (Times of India/PTI/Reuters/Yahoo)

Bank of Baroda – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 590 from INR 628. According to Nomura co.’s asset quality will continue to impacts its earnings growth over the next several quarters, and increased its delinquency forecast for fiscal 2013 and its loan loss provisioning forecast for fiscal 2012. Also expected change in top management later in 2012 reiterate the asset quality risk to earnings. (Economic Times/Reuters)

Punjab National Bank – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 680 from INR 719. Nomura expected loan delinquency to continue to increase over the next few quarters. (Economic Times/Reuters)

Wockhardt – Co. got US FDA approval to market Clopidogrel bi-sulfate tablets, used to help reduce risk of heart attack or stroke, in 75 mg strength. Co. also got a tentative nod for the 300 mg strength tablets. (MoneyControl)

Tata Motors – Co.’s July global sales at 101,605 units, up 21 per cent. (The Hindu Business Line)

Gitanjali Group – Co. acquired 15.3 per cent stake in Japanese firm Verite for INR 25cr. (Indian Express)

INDIAN EARNINGS

Nalco – Co. reported 1Q12-13 net profit at INR 223cr vs. previous 1Q11-12 net profit at INR 377cr. Net sales at INR 1,718cr vs. previous INR 1,733cr. (Yahoo/IANS)

RINL – Co. reported 1Q12-13 net profit at INR 150cr vs. previous 1Q11-12 net profit at INR 74cr. Turnover at INR 2,976cr vs. previous INR 2,582cr. (Financial Express)

ABG Shipyard – Co. reported its 1Q12-13 net profit at INR 41.31cr vs. previous 1Q11-12 net profit at INR 40.06cr. (Business Standard)

Jain Irrigation – Co. reported 1Q12-13 net loss of INR 16cr vs. previous 1Q11-12 net profit at INR 82cr. Sales at INR 865cr vs. previous INR 951cr. (The Hindu Business Line)

EUROPE

Spain’s exports touched EUR 18.9 b (USD 23.2 b), exceeding imports by EUR 1.2 b for the period of June 2012. The county still faces risk of declining exports as demand for its goods mainly comes in from Europe, which is still in recession. Besides, the exporters are not receiving adequate financing and incentives from the government, which itself is reeling from severe austerity cuts. Imports have declined to EUR 21.6 b in June vs EUR 21.4 b two years ago. The marginal rise is due to lack of domestic demand, which can be a worrying factor. (Reuters)

According to the Bank of England policy maker Martin Weale, the British economy was mired in stagnation rather than recession. The European debt crisis was the biggest source of uncertainty. The BOE policy maker was of the opinion that, squeeze on household spending through rising fuel prices was coming to an end. (Economic Times/Reuters)

ArcelorMittal – Steel mining giant is planning to hold discussions with the Indian government to expedite the procurement of a mining lease for its proposed INR 50,000 cr plant in Jharkhand, India. (Economic Times)

Airbus – Co. saw a loss of 10 A-380 aircrafts amounting to USD 3.8 b as Hong Kong airlines wound up its first class business category flight services. (Financial Times)

NORTH AMERICA

Construction of New homes in the U.S declined 1.1 percent to 746,000 vs June’s 754,000, falling below estimates of 756,000. The decline was offset by a rise in building permits to 812,000, its highest since 2008. The mixed data of low mortgage rates, decline in foreclosures, rising hiring and access to cheaper credit could show signs of an improvement in the property markets in the 2HY12 period. Construction of single-family homes declined 6.5 percent to 502,000 and multi-family home construction rose to 244,000, a five month high in 2012. (Bloomberg)

U.S initial jobless claims rose marginally by 2000 applicants to 366,000 for week ended 11 August vs prv week’s revised 364,000 vs exp rise to 365,000. The less volatile four week moving average declined to 363,750, a sign that labor markets picked up in July after the temporary layoffs caused by the auto plant maintenance activity. Unemployment rate remained at 8.3 percent. People on continuing jobless benefits declined by 31,000 to 3.31 m for week ended 4 August. (Bloomberg)

Ford Motors – Co.’s EU sales down 12.3 per cent at 83,100 units from a year earlier. YTD sales down at 10.6 per cent. Industry sales down 7.1 per cent through July, the lowest since 1995. (Boston.com/AP)

NORTH AMERICAN EARNINGS

Walmart – Retailer’s rising profits were reduced on unfavourable movements in the exchange rates which affected its revenues from international operations. Profits came in at USD 4 b, a y/y rise of 5.7 percent. EPS came in at USD 1.18 a share, marginally exceeding expectations. Revenues came in at USD 114.3 b vs exp USD 115.8 b. U.S like-for-like sales rose 2.2 percent on a y/y basis. Revenues from its global operations rose 4.5 percent to USD 113.5 b. The co. plans to expand its operations in markets such as Mexico, China and Brazil. (Financial Times)

7 banking firms have been issued subpoenas from U.S State prosecutors in the context of rigging the Libor rates. Banks summoned will be HSBC, Deutsche Bank, Citigroup, J P Morgan, UBS, RBS and Barclays. (Financial Times)

Brazil will implement a Brazilian Rias (BRL) 133 b (USD 66 b) worth of stimulus measures to increase investments in the nation to prop up the economy. The government plans to grant concessional opportunities on rail and roadways construction. Slowdown in the economy combines with shortage of skilled labour raised inflation and contributed to a slowdown in the economy. (Financial Times)

Cisco – Networking equipment manufacturer saw its profits and revenues rise that it raised its dividend and full year earnings estimate. Revenues rose to USD 11.7 b, exceeded estimates of USD 11.6 b. EPS came in at 47 cents vs exp. 45 cents, all on a pro forma basis. Cost cuts and prudent utilization of its resources saw the co. raise its FY12 forecasts at USD 46 b and EPS to 1.85 a share. The co. raised its dividend for the next quarter to 14 cents, a 75 percent increase. (Financial Times)

 

 

 

 

WEEKEND EQUITY UPDATE: 10 – 12 AUGUST

In a shortened trading week in the Indian markets on account of Independence Day on 15th August, key events to watch out for are:

1- India Inflation data

2 -Earnings: Tata Steel, Hindalco, Reliance Infra and Coal India among the major firms reporting their 1Q12 numbers.

3-Monsoon Session of the Parliament: The ongoing session awaits some policy response from the Finance Minister P. Chidambaram to prop up the economy.

(Economic Times)

FII Data: Inspite of lower than expected monsoons this year, FII’s have infused a total of INR 4800 cr in the equity markets. News of expected reforms from the ongoing parliament sessions are one of the major reasons for the increased investment inspite of dismal macro data. For the 2Q12 period (Apr – June) ,these institutions have infused INR 10,273 cr vs withdrawal of INR 1957 cr.

On stock specific news, it is observed that FII holdings have increased in IT stocks on rupee depreciation. Apart from HCL, stocks such as Infosys, TCS, Tech Mahindra and Wipro saw FII’s increase their holdings. Other IT firms such as Hexaware, Oracle Finance Services and Mphasis also saw an increase in FII holdings. (Economic Times)

Jindal Power and Steel Ltd – Mining firm is to begin production of coal from its mines in Indonesia and Mozambique. The firm will source its supply of coal for its plants producing steel. (Economic Times)

Bank of England’s Governor Mervyn King stated that the euro region crisis would not end unless massive reforms are undertaken. The crisis weighed in heavily on UK’s economy but reforms on the banking sector could be a step in getting on the path to recovery. (Bloomberg)

Tuesday would see German and French GDP data come out. Germany’s GDP on  q/q basis is expected to fall 0.1 percent vs prv period’s 0.0 percent. On a y/y basis, it is expected to expand slower at 1.0 percent vs 1.7 percent previously. France could see its GDP contracting 0.1 percent as per expectations over previous period’s unchanged number. (Bloomberg)

 

 

EQUITY UPDATE – 9 AUGUST 2012

ASIA

Cathay Pacific Airways Ltd – Co. reported its 1HY12 results at a loss of HKD 935 m (USD 121 m) vs exp. Profit of HKD 490 m vs. profit of HKD 2.8 b a year ago, on lower freight traffic, higher fuel costs and decline in demand for premium travel. Slowdown in global trade led to declining volumes and intense competition from other airline firms reduced its profit margins. Stock price declined 4 percent to HKD 12.36 in trade and will not pay an interim dividend to shareholders. Cargo revenues declined 7.6 percent to HKD 11.9 b on 64 percent of luggage capacity, which was lower than the previous period. Sales rose 4.4 percent to HKD 48.9 b. (Bloomberg)

INDIA

According to a FICCI survey of 418 manufacturing units and associates, the July-September quarter is expected to register lower growth as compared to the previous quarter. (Business Standard/PTI)

FII’s made gross purchases of INR 2,751.60cr and gross sales of INR 1,637.39cr. DII’s made gross sales of INR 794.71cr and gross purchases of INR 928.83cr. (Business Standard)

Coal India – Co. to supply 8.8 per cent more coal in FY 12-13. The co. is expected to supply 470m tons of coal in the current fiscal compared to 432.94m tons in FY11-12.  (Yahoo/Reuters)

Maruti Suzuki India Ltd – According to industry body Assocham, the ongoing strike at the firm’s Manesar factory is expected to cost the co. upto INR 90 cr a day as the impending strike continues. The strike has affected around 650 units and could affect around 270 auto parts suppliers. (Economic Times)

INDIAN EARNINGS

Oil India – Co. reported 1Q12-13 net profit at INR 929.93cr vs. previous 1Q11-12 net profit at INR 849.61cr. Turnover up 8.22 per cent at INR 2,439.63cr. 1Q12-13 fuel subsidies at INR 2,015.52cr vs. previous INR 1,780.65cr. (Financial Express)

Mahindra – Co. reported 1Q12-13 net profit at INR 726cr.vs expected INR 625cr. Total revenue came in at INR 9248cr. vs estimated INR 9045 cr. M&M’s exports in 1Q12 were up by 37% to 7,845 units. EBITDA margin decreased by 150 basis points on a q/q basis to 11.80 percent for the 1Q12 period.  (Moneycontrol)

Tata Power – Co. reported 1Q12-13 net profit at INR 312.30cr vs. previous INR 281.56cr. Total income from operations at INR 2284.10cr vs. previous INR 1,921.24cr. (Financial Express)

Abbott India – Co. reported 2Q12 net profit at INR 29.52cr vs. previous 2Q11 net profit at INR 17.10cr. Net sales at INR 402.83cr vs. previous INR 351.50cr. (Business Standard/PTI)

Puravankara Projects – Co. reported 1Q12-13 net profit at INR 50cr vs. previous 1Q11-12 net profit at INR 31cr. Revenue at INR 248cr vs. previous INR 191cr. (Financial Express)

United Breweries – Co. reported 1Q12-13 net profit at INR 1.32cr vs. previous 1Q11-12 net profit at INR 1.88cr. Net sales at INR 98.64cr vs. previous INR 70.03cr. (Financial Express)

EUROPE

Germany’s exports for June declined 1.5 percent vs May’s gain of 4.2 percent vs expectations of a gain of 1.3 percent. Falling demand in the euro zone, which is Germany’s biggest markets, contributed to lower exports. The trade surplus rose to EUR 17.9 b vs EUR 15.6 b in May. Current account surplus rose to EUR 16.5 b vs EUR 8.1 b a month ago. The data rose on account of rising wages in the country coupled with low unemployment levels. (Bloomberg)

Germany’s Industrial Production declined 0.9 percent in June on a m/m basis on lower output from the construction sector. Expectations came in at a decline of 0.8 percent. Factory orders declined more than twice as forecasted. Manufacturing output declined 1 percent, while capital goods saw lower output by 1.6 percent. Construction sector saw its biggest fall in June’s data to 2 percent vs 2.6 gain in May. (Bloomberg)

Bank of England’s Governor Mervyn King supported U.K Prime Minister’s budget curtailment plans as he stated that growth in the UK would be a slow process. He also lowered his GDP forecast for the coming two years that it would expand by 2 per cent , lower than his earlier forecast of 2.5 percent expansion in May. Lack of policies undertaken by the government could also substantiate this lower forecast. Bond purchases would continue for the same level and that interest rates could be reduced in the 2Q13 period. (Bloomberg)

According to the French central bank, French GDP was expected to shrink 0.1 per cent in the 3Q12. (Reuters)

Greece’s credit rating could be cut further from CCC by S&P on concerns that the nation would need more than expected financial assistance from the EU. The outlook on the credit rating was lowered from stable to negative. The nation is deadlocked in talks with the international troika of IMF, ECB and EC to decide on the funding available to the nation. (Bloomberg)

ArcelorMittal – Fitch downgraded co. to ‘BBB-‘ from ‘BBB’, citing challenging short-term outlook for steel markets, particularly in Western Europe. (FoxBusiness)

 

 

 

 

DAILY MARKET REPORT – 2 AUGUST 2012

The markets ended lower in a range bound trading session on lack of any significant global economic data. As we covered earlier, investors would await the decision taken by ECB President Mario Draghi on benchmark interest rates. Yesterday, the U.S Fed left rates unchanged and with the Bank of England also sticking to not changing rates, it looks very much likely that the ECB could also follow suit. Will Draghi cut rates or not? Markets and investors are also waiting cautiously and hence the flat trading sessions today.

Coming back to the Indian markets, the Sensex closed at 17224.36 points, down 33.02 points or 0.19 percent on highs of 17246.01 and lows of 17157.28 points.

The Nifty closed at 5,227.75, down 12.75 points or 0.24 percent on highs of 5236.90 and lows of 5209.95 points in intraday trade today.

On the BSE, the Midcap Index gained 0.21 percent and the Smallcap Index rose 0.45 percent. The Oil & Gas Index was declined 1 percent, the Bankex fell 0.29 percent and Metal Index fell 0.28 percent. The Power Index rose 0.77 percent and the Capital Goods Index gained 0.64 percent.

On stock specifics, power giant NTPC rose 4 percent in trade after Coal India’s agreement this week to supply 80 percent of the coal needed to fuel new power projects eased concerns about supply of the key commodity. Tata Power gained 1.5 percent. Tata Motors declined 2 percent on lower sales numbers. NIIT Tech fell 6 percent to INR 280 as its promoters sold a 7.4 percent stake in the co. The rupee still hovers at 55.5 levels.

Summing up the session, the much touted Fed and BoE  decisions were non-events. All eyes on the ECB meet now.

Kindly check the Market Summary tab for further information on stock-related data.

(Economic Times, Bloomberg and Business Standard)

BoE KEEPS RATES UNCHANGED, CONTINUES WITH BOND PURCHASE PLAN

The Bank of England kept benchmark rates unchanged at 0.50 percent. The Monetary Policy Committee (MPC) also will continue with its bond purchase plan which it had decided in its previous meet to increase purchases to GBP 375 b (USD 583 b).

The U.K economy is mired in a double dip recession on two falling q/q GDP numbers. All eyes now shift to the ECB meet later tonight. (MarketWatch)

MARKETS TRADE FLAT ON INACTION BY THE FED; ALL EYES ON ECB NOW

Markets in Asia and India are trading flat ahead of the ECB meet today where the ECB President Mario Draghi is expected to announce his intentions for propping up the slowing Eurozone. With rates at 0.75 percent, a 25 bps cut could send the markets higher but if rates are steady and nothing notable is announced in the policy meet, then there could be high chances of the markets trading flat or lower.

All eyes were on the U.S Federal Reserve’s Chairman Ben Bernanke yesterday for if he would announce a cut in the benchmark interest rates. Although he stated that the Fed could continue asset and bond buying activity, a rate cut did not happen. He stated that the slowdown in the economy was noticeable with a raft of disappointing data. This made Bernanke’s statement a total non-event.

UK would also be announcing its decision on benchmark interest rates today. Rates are at 0.50 percent and there could be news on asset purchasing. But all eyes will be focused more  on Draghi than the Bank of England, but no doubt , we view both these events are very important.

(RsquaredAnalytics)

EQUITY UPDATE – 18 JULY 2012

ASIA

China’s government announced a railway infrastructure investment of RMB 448.3 b (USD 70.3 b), a 9 percent increase from previous year’s plan of USD 411.3 b. (Bloomberg)

INDIA

Sales of durable goods such as refrigerators, washing machines and flat panel televisions rose in the previous two months after 3 quarters of declining sales. Stable prices, delay in the monsoon and an outcome of rising demand is attributed to the rise in sales. Sales of televisions rose 5 percent in May and 10 percent in June. Air-conditioner sales declined at a slower pace in May and June. The rise in sales is beneficial to co.’s such as Whirlpool, Videocon, Samsung, Voltas and Godrej, amongst others. (Economic Times)

FII’s made a gross purchase of INR 2088.27 cr with gross sales of INR 1613.32 cr, resulting in being net buyers of INR 474.95 cr today. DII’s made gross purchases of INR 777.45 cr vs sales of INR 1043.66 cr, resulting in becoming net sellers of UNR 266.21 cr. (Business Standard)

Reliance Industries – Co. alongwith British Petroleum have warned the government of India that output from the KG-D6 basin would stop by 2015 unless the government approves its capital expenditure plans. Output has declined from 61 mmscmd to below 30 mmscmd. It expects output to decline to below 20 mmscmd levels by 2013. (Business Standard)

Tata Steel – According to co.’s Chairman, co.’s European operations will continue to remain under enormous stress for the next year or two until the Western European economy recovers. (Economic Times)

Trishe Developers – Private Equity firm New Enterprise Associates invested INR 84 cr in the co. which is involved in the renewable wind energy infrastructure co. (Economic Times)

 EUROPE

Germany’s ZEW Investor Confidence Investor Confidence Index declined to -19.6 in July vs -16.9 in June. The index predicts investor sentiment for the coming six months. Expectations came in at -20 on estimates. The index’s sentiment index for the European Union also declined to -22.3 from -20.1 in June. (Bloomberg)

UK’s inflation for June declined to its lowest levels in over 2 years on lower prices of clothes. On a y/y basis, inflation rose 2.4 percent. On an m/m basis, inflation declined 2.8 percent over May. Clothing and footwear prices declined 4.2 percent in June. Lowe prices of fuels, air fares also contributed to the decline. Core inflation declined marginally to 2.1 percent from 2.2 percent in May. (Bloomberg)

Bank of England’s Chief Mervyn King denied allegations that he misunderstood the seriousness of the Libor scandal and that he had a role in the resignation of Barclay’s Chief Bob Diamond. (Reuters)

Royal Dutch Shell – Co. faces a USD 5b fine over its Nigerian Bonga oil spill. (Reuters)

BP – Standard and Poor’s raised its outlook on co. from ‘stable’ to ‘positive’, citing improvement in financial health of the company despite huge Gulf of Mexico spill costs. (Economic Times)

Alcatel – Shares of the co. declined after co. issued a profit warning for FY12. Co. posted an operating loss of EUR 40 m for 2Q12 period. Sales rose to EUR 3.5 b from EUR 3.2 b a q/q basis. Shares declined 15.5 percent to EUR 0.96 a share on the news. (Financial Times)

NORTH AMERICA

Pimco’s Bill Gross stated that the U.S is nearing another recession as asset management firm BlackRock Inc. expects the US Federal Reserve would put in a stimulus package to support growth.  Mixed to lower economic data has prompted Gross to predict the decline. (Bloomberg)

U.S Consumer Price Index came in flat at 0 percent vs expectations of -0.1 percent vs previous period’s data of -0.3 percent. Core CPI on a m/m basis remained unchanged at 0.2 percent. Falling prices of energy contributed to the decline. (CNBC)

Ford Motor India – Co. completed the expansion of its engine production plant which can increase its output by 36 percent to 340,000 engines. The facility also has the capacity to increase production to over 80,000 diesel engines based on rising demand. (Economic Times)

NORTH AMERICAN EARNINGS

Goldman Sachs – Co. reported 2Q12 net earnings at USD 962m; EPS at USD 1.78 vs. expected USD 1.12 vs. previous USD 1.85. Revenue at USD 6.63b vs. estimated USD 6.41b vs. previous USD 7.28b. (IBTimes/CNBC)

Coca –Cola – Co. reported 2Q12 net income at USD 2.79b vs. previous USD 2.80b in 2Q11. EPS at USD 1.21 vs. previous USD 1.22. Excluding items EPS at USD 1.22 vs. estimated USD 1.20. Revenue at USD 13.09b vs. expected USD 12.98b. (CNBC/Reuters)

Johnson and Johnson – Co, reported 2Q12 net earnings at USD 1.41b vs. previous USD 2.78b. EPS at USD 0.50 cents vs. previous USD 1 per share. Sales at USD 16.48b vs. estimated USD 16.69b. Excluding items EPS at USD 1.30 per share vs. estimated USD 1.29 per share. (CNBC)

COMMODITIES

According to Iranian Fars news agency, Iran will take all responsibility for insuring any foreign shipping line and any ship entering Iranian waters. (Reuters)

EQUITY UPDATE 14 JULY 2012

ASIA

According to Chinese Central Bank’s recent stress test, capital adequacy ratio to be maintained by the overall banking system dropped to 10.89 per cent versus 12.33 per cent. (FoxBusiness/Dow Jones Newswire)

INDIA

According to the Builders’ Association of India, cement companies continue to form a price cartel inspite of the CCI imposing fines on the co.’s. (Economic Times)

FII’s made gross purchases of INR 1957.01cr and made sales totalling INR 1675.88cr. DII’s made gross purchases of INR 611.04cr and made gross sales totalling INR 981.45cr. (Business Standard)

According to a senior RBI official, Reserve Bank of India could raise capital requirements for new banks to 10 billion rupees from the currently proposed 5 billion rupees. (Reuters)

Infosys – LIC has hiked its stake in co. to a record 6.3 per cent (from 4.9 per cent previously) with purchase of shares worth about INR 2000cr in 1Q12-13.  (The Hindu Business Line/PTI)

Tata Steel – Co.’s 1Q12-13 sales at 1.59 million tonnes versus 4Q11-12 sales at 1.79 million tonnes. Saleable steel production in 1Q12-13 at 1.74 million tonnes versus 1Q11-12 steel production at 1.75 versus 1.78 in 4Q11-12. However crude steel production at 1.82 million tonnes versus 1.79 million tonnes in 4Q11-12;  hot metal production at 2.05 million tonnes versus 1.94 million tonnes in 1Q11-12. (Business Standard/PTI)

Tube Investments – Murugappa Group’s subsidiary Tube, is to acquire a 44 percent stake in industrial power transmission firm Shanthi Gears. The co. signed a share purchasing agreement with Shanthi today. The total cost of the acquisition could rise to INR 464 cr. (Economic Times)

Adani Power – Co. is to raise INR 5000 cr in capital to fund its operations on receiving shareholder approval. The co. plans to issue depository receipts and convertible preference shares. (Economic Times)

Welspun Global Brands – Krishiraj Trading and Welspun Mercantile Limited co.’s promoters made an open offer to co. to acquire 14,50,000 equity shares representing 13.84 per cent at a price of INR 42 per share. (MoneyControl)

INDIAN EARNINGS

Sintex Industries Ltd – Co. reported standalone sales 1Q12-13 at INR 606.46cr vs. previous 1Q11-12 sales at INR 555.66cr. Net profit at INR 32.88cr vs. previous INR 69.13cr. According to co.’s management co. to redeem FCCB’s liability at the end of FY 13. (The Hindu Business Line)

EUROPE

The Bank of England provided confirmation that it had received a recommendations from US Treasury Secretary Timothy Geithner to make changes to the setting of the Libor rate. BoE passed on this letter to the British Bankers Association, which sets the Libor rate used globally by firms. (Reuters)

According to a survey conducted by ZDF-Politbarometer showed 63 per cent of German backed German chancellor Angela Merkel’s handling of euro crisis, which is up from 60 per cent in May. (Economic Times/Reuters)

Volkswagen – Co. reported 8.9 per cent jump in group sales in 1H12 to 4.45 million vehicles, putting the co. on track to beat last year’s record 8.3 million sales. (Reuters)

PSA Peugeot Citroen – Co. share prices declined 9 percent in trade to 23 year lows after the firm announced negative cash flows of EUR 200 m a month and job cuts. The share price touched lows of EUR 6.37 a share. (Financial Times)

NORTH AMERICA

Federal Reserve’s Dennis Lockhart stated that the central bank would have to conduct a fresh round of asset purchasing programme if weakness in the economy persisted. A failure of the economy to rise in the second half of the year and weaker economic data could point towards a fresh round of stimulus, as per his statements, revealed yesterday. (Bloomberg)

According to Morgan Stanley, a total of USD 22 b in fines could be imposed on twelve global banks involved in the Libor manipulation scandal.  Regulatory authorities are investigating the matter which was formed when banks formed a cartel to keep rates low. The co. added that fines would be about 10 percent of the bank’s turnover or 4 – 13 percent of their EPS for 2012. (Financial Times)

The University of Michigan-Thomson Reuters consumer sentiment index for July declined to 72 from 73.2 in the previous month. Median forecasts had predicted a gain of 73.5. The measure of expectations also declined to 64.8 for July from 67.8 in June. (Financial Times)

Wholesale Producer Price Index in the US rose 0.1 percent in June on a seasonally adjusted basis vs expectation of a decline of 0.4 percent. Lower energy prices were offset by an increase in food prices. Energy prices declined 0.9 percent on a m/m basis while food prices rose 0.5 percent on higher price of meat. Core producer prices excl food and fuel rose 0.2 percent for the fourth month in a row. (Financial Times)

Wells Fargo – US based mortgage provider reported a 17 percent rise in 2Q12 profits at USD 4.6 b. Earnings per share came in at 82 cents, marginally exceeding expectations of 81 cents vs 70 cents a year ago. Issuance of new mortgages combined with cosut cutting measures saw the profits of the co. rise even in a challenging market. Revenues also rose on the back of the U.S Government’s plan aimed at helping homeowners to refinance their mortgages. Net interest margin declined to 3.91 percent from 4.01 percent on a y/y basis. (Financial Times)

Canadian pension fund The Ontario Teacher’s Pension Plan is to acquire a 75 percent stake in Norwegian retailer Helly Hansen for around NKR (Norwegian Kronor) 2 b (USD 326 m). The pension fund will purchase the stake from private equity firm Altor, which purchased Hansen for one-fourth the current purchase price. (Financial Times)

Berkshire Hathaway Inc’s Chairman Warren Buffett stated that bankruptcies in municipal bonds could increase in the shorter term. His statement came on the back of three cities in California filing for bankruptcies in the span of a few weeks. City Council of San Bernardino filed for bankruptcy recently. Falling property tax revenues, rising costs of labour and the severity of the slowdown could all contribute to further defaults. (Bloomberg)

J P Morgan – Co.’s Chairman Jamie Dimon stated that the losses occurred on its derivatives trades could mount to USD 7.5 b. The results of the co. were declared today and Dimon blamed the losses caused by the trade as an isolated event. (Bloomberg)

Ford Motors – Co.’s June sales down 16.1 per cent on a Y-O-Y basis in its 19 western European markets. (Reuters)

Bain Capital and the Government of Singapore are in advanced talks to make a joint bid to acquire a 40 percent stake in Genpact for USD 1.5 – 2 b. (Reuters)