Raju and his brother to be produced before court today

Disgraced former Satyam Computer Chairman B Ramalinga Raju and his brother and former director Rama Raju will be produced before a court on Saturday in Hyderabad.

Earlier, Raju dramatically surrendered before the police in Hyderabad on Friday.



Raju surrendered before the Director General of Andhra Pradesh Police S S P Yadav.



In his letter to the Board Raju had said he will surrender to the laws of the land.



He may face a seven year jail term and a hefty fine too.

Oil prices fall close to USD 40

Oil prices fell close to USD 40 a barrel on Friday, having begun the session higher, at the end of a very volatile week for markets.


New York's main contract, light sweet crude for delivery in February, dropped 80 cents to USD 40.90. Brent North Sea crude for February shed 43 cents to USD 44.24 a barrel on London's InterContinental Exchange.



On Thursday, Oil prices had also fallen on concerns over a US stockpile buildup and worries that the global economic slump would further dampen demand, traders said.



The US Department of Energy said on Wednesday that stockpiles of crude increased by 6.7 million barrels last week, far higher than predictions from analysts for a gain totalling only 700,000 barrels.



News of the buildup in recession-struck United States, the world's biggest crude consuming nation, pushed New York crude down by USD 5.95 and London Brent oil by USD 4.67 on Wednesday.



"The only thing that can drive oil higher in the short term is geopolitical news because we are loaded with crude," said Phil Flynn of Alaron Trading.



"The 6.7 million barrels in crude show supplies of crude are reaching glut-like proportions," he said.



The market also remains concerned over higher US jobless numbers and President-elect Barack Obama's mammoth task of stimulating growth.



A report on Wednesday said the US private sector lost 693,000 jobs in December, much higher than expected, indicating deepening recession.

Indian IT scandal boss arrested

The founder of scandal-hit Indian software company Satyam has been arrested two days after he admitted falsifying the firm's accounts.

Ramalinga Raju, who stood down as Satyam's chairman on Wednesday, is charged with offences including criminal conspiracy and forgery.

Mr Raju has already revealed that the firm had exaggerated its cash reserves by some $1bn (£661m).

His arrest came after the government sacked the entire Satyam board.

Mr Raju has also been charged with criminal breach of trust, cheating, and falsification of record.

He was arrested together with his brother, former Satyam managing director B Rama Raju.

'Reach the truth'

The government said a new board would be appointed within 10 days.

"The government is considering appointment of suitable persons as directors of Satyam," said Corporate Affairs Minister Prem Chand Gupta.

"We are determined to reach the truth but are equally concerned with the fate of employees and other stakeholders."

Satyam's shares fell to 11.50 rupees on Friday, their lowest level since March 1998.

Last year they hit a high of 544 rupees.

Some analysts say the future of the company is now in doubt.

German billionaire kills himself

German billionaire Adolf Merckle has committed suicide after his business empire ran into trouble in the global economic slowdown.

In a statement his family said he had been "broken" by the financial crisis, and had taken his own life.

Mr Merckle ran up losses of about 400m euros (£363m;$535m) last year due to wrong-way bets on Volkswagen shares.

He was ranked as the world's 94th richest person in 2008, and his family controls a number of German companies.

The 74-year-old's body was found on Monday near railway tracks in southern Germany. Officials said there was no evidence that anyone else was to blame.

Volkswagen losses

His family, which had reported him missing after he failed to return home, said in a statement: "Adolf Merckle lived and worked for his family and his firms."

"The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to act, broke the passionate family businessman, and he ended his life."

Bank of America in Chinese sale

Bank of America is to sell a stake in China Construction Bank, in a move that is expected to raise some $3bn (£2bn), the Chinese bank has said.

The US bank said the sale was because of "its own financial conditions under the current severe turbulence of the international financial crisis".

The sale of 5.62 billion shares represents around 12% of the US company's stake in the finance firm.

Other firms are tipped to make similar moves in China as a way to raise funds.

"The news had been expected but investors will still take it hard because Bank of America will most definitely sell more. They need the money," said Francis Lun, general manager for Fulbright Securities in Hong Kong.

Shares in China Construction Bank dropped nearly 6% following the news.

Alcoa cuts 13,500 workers' jobs

The US aluminium-maker Alcoa is to cut 13,500 jobs, or 13% of its workforce, due to the economic slowdown.

The latest cost-cutting and job losses come on top of savings which were announced in October.

Alcoa said it would cut its yearly output of aluminium by 18% because of falling demand.

The Pittsburgh-based company is also planning to sell four of its non-core businesses and is imposing a global salary and hiring freeze.

Alcoa has not given any breakdown of the job losses on a country-by-country basis.

Falling prices

As a result of its actions, Alcoa expects total fourth-quarter charges of up to $950m, and annual savings of about $450m.

In October, Alcoa saw a 52% fall in third-quarter profit due to sharply lower aluminium prices and weaker demand. Its next quarterly results are due on 12 January.

Alcoa's president Klaus Kleinfeld said: "These are extraordinary times, requiring speed and decisiveness to address the current economic downturn."

As part of the plan, Alcoa said it would sell off its electrical and electronic systems, global foil, cast car wheels and European transport products businesses.

These subsidiaries employ a total of 22,600 people and had combined revenues of $1.8bn in 2008.

The production cuts are expected to be completed by the end of March.

However some analysts doubted whether Alcoa's production cuts would help stabilise falling aluminium prices, which fell to roughly 65 cents per pound a few weeks ago from $1.50 a pound last July.

"The problem is a lack of demand. With the lower price, Alcoa has got to try to bring its costs down. There is no way they can make money at 65-cent aluminium," said Charles Bradford of Bradford Research/Soleil Securities.

Satyam plunges 73 pc to decade's low of Rs 48

IT major Satyam Computer on Wednesday fell to its lowest level in over a decade to Rs 48.90, nosediving as much as 73 percent, following the resignation of company's Chairman B Ramalinga Raju and revelation of malpractices in the firm's accounting methods.

Shares of Satyam plunged as much as 72.70 percent to a low of Rs 48.90, but was later trading at Rs 50, down 72.08 percent in the afternoon trade on the BSE.

The scrip, which had opened at Rs 179.10, plunged within minutes of Satyam Chairman and Managing Director tendering their resignation.

Analysts believe investor confidence has shattered completely as the company was operating its business based on entirely false balance sheet.

"The Satyam case is entirely disastrous and the investors have been completely misguided and misled. People will not think more in the company as some more frauds may be revealed in the near future," Ashika Stock Brokers' Research head Paras Bothra said.

Ramalinga Raju, who had been under attack over the 1.6-billion-dollar acquisition fiasco of firms promoted by his family, on Wednesday resigned as Satyam Chairman after admitting to major financial wrong doings and saying his last-ditch efforts, to fill the "fictitious assets with real ones" through Maytas acquisition, failed.

The counter saw frantic selling on the bourses after the news broke out, and nearly 27 crore shares had changed hands on both the bourses till the afternoon trade.

Satyam stock holds a 1.56 percent weight in the 30-share bluechip index Sensex. Following the same, the benchmark index also plunged over 400 points and was trading down nearly 4 percent at 9,922 points in the noon trade on the BSE.



The scrip has revisited the Rs 49 levels after a gap of nearly 12 years, as in March, 1997 the stock had been around Rs 49.75.


The resignations, ahead of the 10th January board meeting, has pushed the company into crisis and paved way for immediate restructuring of the board and the management.

On the National Stock Exchange, the scrip plunged 72.59 percent to an intra-day low of Rs 49.05. It was later quoted at Rs 50.80, down 71.61 percent in the afternoon trade.


Satyam's American Depository Receipts, listed on the New York Stock Exchange, had closed up four percent at 9.35 dollar on Tuesday, and are expected to witness a sharp plunge when the American markets open.


"The ADRs are likely to cues from the domestic market and may plunge as much as 80 per cent, as the investors know that the company's fundamental have been completely shaken and their confidence has been totally shattered," Arun Kejriwal director of Kejriwal Research and Investment Services said.

Raju quits Satyam; Ram Mynampati appointed as interim CEO

Satyam Computer Services on Wednesday accepted the resignation of its Founder Chairman B Ramalinga Raju who has quit accepting financial irregularities and appointed Ram Mynampati as interim CEO, who said shareholders and employees are top priority now.

Mynampati has been mandated by the Board to steer the company through this crisis, said a company statement.

"We are obviously shocked by the contents of the letter sent by Raju to the company. The senior leaders of Satyam stand united in their commitment to customers, associates, suppliers and all shareholders. We have gathered together at Hyderabad to strategise the way forward in light of this startling revelation," said Ram Mynampati, Interim CEO, whose appointment has to be ratified by the Board.

Earlier Satyam said it has received on Wednesday a letter from its Chairman and Founder B Ramalinga Raju. Mynampati was earlier a member of the Board.

"This letter, January 7, 2009, has been circulated to all existing members of the board, several senior leaders and copied to the Chairman of Securities and Exchange Board of India (SEBI) and the stock exchanges where Satyam is listed," the company said in a statement.

Its immediate priorities are to protect the interests of its shareholders, protect the careers and security of its approximately 53,000 associates, and meet all its commitments to its customers and suppliers, it added.

"We recognise that our associates have committed a significant part of their careers to build Satyam. We will pursue all avenues to secure their future in the company," added Mynampati.



Satyam believes that its underlying business model, customer assets and growth prospects remained sound, even in the current challenging financial environment, he said.

The company's leadership is confident that it will be able to overcome this latest development and continue to provide excellent service to clients, while delivering value to shareholders in the medium to long term.

Satyam is committed to uphold the highest levels of corporate transparency and will cooperate with the relevant regulatory authorities to conduct detailed investigations into this matter. Satyam will keep stakeholders informed of the developments on a regular basis, the new interim CEO added.

Oil falls to below USD 42 a barrel in Asia

Oil prices fell below USD 42 a barrel on Friday in Asia after Russia and Ukraine said a dispute over natural gas payments wouldn't affect shipments to Western Europe.

Light, sweet crude for February delivery fell USD 3.05 to USD 41.55 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Singapore.



Trading was closed on Thursday for New Year's Day.


The contract rose USD 5.57 on Wednesday, the last trading day of 2008, to settle at USD 44.60 after Russia threatened to cut off natural gas supplies to Ukraine.



Russia followed through with that threat on Thursday, though both countries pledged they would keep supplies to the rest of Europe flowing.



Russia's gas monopoly Gazprom shut off gas supplies after talks broke down over Ukraine's payments for past shipments and a new price contract for 2009.



Gazprom said it had boosted natural gas deliveries through other pipelines to Western Europe.


The European Union depends on Russia for about a quarter of its gas, with some 80 per cent of that delivered through pipelines controlled by Ukraine.


Concerns that the week-old conflict between Israel and Hamas in Gaza could disrupt supplies in the oil-rich Middle East helped keep prices from falling further.



Israeli troops massed on the Gaza border on Thursday in preparation for a possible ground offensive.


Oil prices began 2009 the same way they spent the most of the second half of 2008, going down.



Crude peaked at USD 147.27 a barrel in July before plummeting to as low as USD 33.87 on 19th Dec.

Slovakia becomes eurozone member

Slovakia has become the 16th member of the eurozone - the second former communist country to join the grouping.

Up to 100,000 people gathered in the capital Bratislava's main square for a midnight ceremony with fireworks.

Slovak Prime Minister Robert Fico was one of the first to withdraw the new currency, taking 100 euros from a cash machine in the parliament building.

The Slovak koruna (crown) will remain in circulation alongside the euro until 16 January.

Cash machines were meant to be issuing euros from Thursday, while some banks planned to open, despite the New Year's Day holiday, to swap korunas for euros.

But the new currency was taking a while to filter through.

"None of my clients has paid with euros yet, everybody's using korunas," Marek, a 30-year-old taxi driver in Bratislava, told the AFP news agency.

At Bratislava's railway station, Richard Nedo, a 20-year-old waiter at an internet cafe, said: "Since we opened at 6am, we have had 10 customers but only three of them - foreign tourists - paid with euros. Slovaks are still using korunas."

Stability hopes

Slovakia sees its adoption of the euro as a shield from the turbulence that has hit currencies in neighbouring ex-Soviet bloc countries.

The koruna has been pegged at a rate of 30.126 to the euro since July, while Poland's zloty has lost 24% against the euro, the Czech koruna 11% and the Hungarian forint 13%, Bloomberg news reports.

A recent poll in Slovakia's Hospodarske Noviny daily showed 58% of respondents in favour of the euro, compared with 43% positive a year ago.

Euro "starter packs" have already been distributed in Slovakia and a big campaign has been under way to familiarise the nation of 5.4 million with the new currency.

Slovakia has enjoyed rapid economic growth since joining the European Union in 2004.

But the euro's strength may make life harder for Slovakia's exporters - particularly its big car industry - in the current economic downturn, correspondents say.

Slovakia's cabinet is counting on 4.6% economic growth, down from a peak of 10.4% in 2007, Reuters reports.

The small Alpine nation of Slovenia, formerly part of Yugoslavia, was the first ex-communist country to join the euro in its own right, two years ago.

However, the former East Germany - now part of Germany - has been involved in the euro project since the beginning.

Markets start year on upbeat note

World stock markets have started the year on a positive note, gaining ground after shares saw record falls in 2008.

London's FTSE 100 index rose 0.72% in early trade, while German and French stock indexes climbed more than 1%.

Hong Kong's Hang Seng index rose 4% and Indian shares climbed 0.9% in anticipation of a stimulus plan.

However, analysts said early gains might not be sustainable, with many market participants still on holiday and trading volumes likely to be low.

Bang or whimper?

"Many will be wanting to start the first trading session of 2009 with a bang," said Jimmy Yates, a dealer at CMC Markets.

But any meaningful direction may be hard to come by as both the economic and corporate calendars are looking very quiet," he added.

The FTSE 100 was up 31.91 points at 4,466.08 points in early morning trade on Friday. The index suffered its worst year on record in 2008 - a fall of 31.3%.

Germany's Dax index climbed 1.17% to 4,866.71 points and France's Cac 40 index was up 1.26% at 3,258.61.

In Asia, South Korea's main stock index closed up 2.9% at 1,157.40 points.

However, Australian stocks fell 0.2%.

Markets in Japan and China were closed for a public holiday.

Record falls

Global markets saw record falls in 2008 as the financial turmoil and economic slowdown ended the stock market boom.

Shanghai was one of the worst-hit major markets, ending the year 65% lower, which was also a record loss.

In New York, the Dow Jones lost almost 34% of its value in 2008, its worst year since 1931.

The year saw the credit crisis push several major economies into recession, with banks particularly badly hit - many requiring government bail-outs.

Whether the stock markets fall further in 2009 is a matter of debate.

Many investment strategists have written off any chance of a major rebound in at least the first six months of the new year, when company earnings could prove especially bleak.