Oil prices fall in Asian trade

World oil prices fell in Asian trade on Thursday on worries of a supply glut amid weak demand after the latest US data showed a rise in the country's energy stocks, analysts said.

New York's main contract, light sweet crude for February delivery shed 38 cents to USD 36.90 a barrel on the New York Mercantile Exchange.



Brent North Sea crude for February delivery dropped 28 cents to USD 44.80.



"Weak demand is still overpowering supply in the oil markets," said Jonathan Kornafel, a Singapore-based director with Hudson Capital Energy trading firm.



He was referring to the latest energy data released on Wednesday by the US government which showed crude reserves rising 1.2 million barrels in the week ending on 9th January.



Distillates, which include heating fuel and diesel, increased by 6.4 million barrels.



"This week's stats clearly go to the bears," said Morgan Stanley Research, adding the data highlighted "the tension in the market between bulls looking to OPEC cuts and bears pointing to collapsing demand."



Since September, the Organisation of the Petroleum Exporting Countries has cut a total of 4.2 million barrels per day from its production to address the fall in crude oil prices.

Inflation eases to 5.24 pc

Inflation declined for the tenth consecutive week on Thursday to 5.24 per cent for the week ended 3rd January, primarily due to decline in prices of food articles.

Inflation, measured by movements in wholesale prices, dipped by 0.67 percentage points from 5.91 per cent in the previous week. It stood at 4.26 per cent a year ago.



The index of the food articles group declined by 0.6 per cent as prices of fruit and vegetables fell by three per cent, and gram, barley, condiments and spices by one per cent each.



However, the index of manufactured goods declined one per cent. Among manufactured items, paper and paper products declined by 0.4 per cent, and chemicals and chemical products fell by 1.2 per cent.



The index of fuel declined by 0.2 per cent due to lower prices of aviation turbine fuel (8 per cent) and light diesel oil (3 per cent).



However, naphtha became expensive by three per cent, and among food items jowar, tea, urad moong and rice moved up by one per cent each, and masoor by two per cent.



Inflation has been declining after it touched a peak of 12.91 per cent in August last year.

Govt rules out any bailout package for Satyam

The government has ruled out any bailout package for crisis-ridden Satyam Computer, but assured to do everything required to save jobs under the framework of its responsibilities.

"This is a decision that the new board of Satyam would take. This government is not going to directly or indirectly subsidise wrong doing and fraud in Satyam," Minister of State for Industry Ashwani Kumar told reporters on the sidelines of a Petrotech-2009 conference on Thursday.



When asked, is government not in favour of bailout package for Satyam as such, Kumar said that the new Satyam board "... are the ones to decide. The government would try and support within the framework of its responsibilities and do whatever it can to preserve and save jobs and to protect the good name of India in corporate sector".



He said, "The government will try to ensure to the extent possible that the brand equity of the country and Stayam in terms of its intellectual capital is preserved and the jobs are secured to the extent possible".



The minister said, "I do believe that Satyam aberration should not in any way take away from the great success story of India in the IT sector."


Earlier speculation was rife that the government is considering a package of up to Rs 2,000 crore to bail out Satyam Computer. But shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.

Judge rejects Madoff jail appeal

A US judge has rejected an appeal from prosecutors that Bernard Madoff should be sent to jail while they continue to probe his alleged $50bn (£33bn) fraud.

Prosecutors had lost an argument earlier this week that his bail should be revoked because he violated a court order freezing his assets.

Mr Madoff will remain on bail after a judge confirmed that decision.

Mr Madoff posted more than $1m-worth of jewellery and valuables to relatives and friends before Christmas.

But his lawyer has maintained that his client had not realised this violated the freezing of his assets.

Judge Lawrence McKenna said prosecutors had been unable to make a compelling argument that Mr Madoff was a danger to the community or was at risk of leaving the country - which are the two main requirements for bail decisions.

Complicated

Mr Madoff, 70, a former chairman of the Nasdaq stock market, was arrested and charged on 11 December in what would be Wall Street's biggest Ponzi scheme, one in which early investors are paid-off with the money of new clients.

If convicted, he faces up to 20 years in prison and millions of dollars in fines.

The investment adviser has not appeared in court to formally answer the charge and an 11 February deadline to indict him meaning that he will remain free for at least another four weeks, provided he does not breach the terms of his bail.

Fraud experts have said the purported scheme was too complicated and went on too long to have been carried out by Mr Madoff alone.

The investment adviser, who has been a Wall Street figure for more than 40 years, is the only person accused in the scandal surrounding his firm, Bernard L Madoff Investment Securities.

Motorola to cut 4,000 more jobs

Mobile phone giant Motorola has said it is to cut 4,000 jobs, roughly 6% of its workforce, in the face of the economic downturn and waning demand.

It also warned it would make a fourth-quarter loss as sales of mobile phones were weaker than expected.

The firm had cut 6,700 jobs in 2008. Its latest cuts includes about 3,000 posts in the mobile-devices business and 1,000 jobs from other units.

Motorola said the move brought planned cost savings in 2009 to $1.5bn (£1bn).

That figure includes $700m of new savings on top of a previously announced plan to cut $800m in expenses.

'Faring worse'

Motorola said it sold about 19 million handsets in the fourth quarter of 2008, down from 40.9 million in the fourth quarter of 2007. It put the poor handset sales down to weakness in consumer demand.

The firm had dropped to fourth place in the global handset market in the third quarter with sales of 25.4 million.

Avian Securities analyst Matthew Thornton said: "I'm sure they're faring a bit worse than some of the other tier-one manufacturers.

"It's not going to get any easier in the next couple of quarters."

Euro inflation hits 26-month low

Eurozone inflation fell to a 26-month low in December, thanks to a big decline in the price of energy bills, official figures have shown.

Inflation in the 15 countries that were using the euro in December - before Slovakia joined this month - fell to an annual rate of 1.6%.

This compares with 2.1% in November, and came after energy bills, including the price of petrol, fell 3.7%.

The data comes as the European Central Bank is expected to cut interest rates.

Widely tipped

The ECB is widely tipped to trim rates by at least half a percentage point from the current 2.5% when it announces its January decision later.

Analysts said the latest fall in inflation was expected, giving the ECB room to cut rates further and help lift the economy without fear of lifting prices.

"The ECB will do 50 basis points today and we think rates will go down to 1% in the second quarter," said Stephane Deo of UBS Bank.

Excluding energy and food bills, core eurozone inflation declined to 1.8% in December from 1.9% in November.

Airbus takes top planemaking spot

European planemaker Airbus took top spot in global jet plane deliveries and orders during 2008.

Airbus saw a 7% rise in deliveries to a record 483 planes. US rival Boeing - hit by a machinists' strike - saw its deliveries fall by 15% to 375 planes.

It also outsold Boeing, with orders for 777 jets, down 42% from the previous year. Last week, Boeing said it sold 662 aircraft in 2008, down 53% on 2007.

Airbus is restructuring to cope with currency volatility and other issues.

It said its Power8 cost-cutting programme had saved 1.3bn euros ($1.7bn; £1.2bn).

'Challenging 2009'

The pan-European firm sold planes worth $100bn (£68bn) in 2008, giving it a market share of 54%.

And it said it had a backlog of 3,715 jets, which it is estimated it would take six years to clear, although this could be reduced to four years with cancellations.

Last year, Airbus sold a net total of 472 single-aisle aircraft and 310 wide-body models, including nine A380 superjumbos.

Boeing's 2008 production was hit by a 58-day machinists' strike.

Meanwhile, Airbus has cut its A380 delivery forecast for 2009 to 18 planes. In 2008 it delivered 12 of the aircraft.

"We all know that 2009 will be a very challenging year for the aeronautics industry," said Airbus chief Tom Enders.

"At Airbus we are well prepared and confident."

Medical leave for Apple boss Jobs

Apple chief executive Steve Jobs is to take medical leave until the end of June, saying his health issues were more complex than he first thought.

Mr Jobs revealed last week he was being treated for a "hormone imbalance" but was staying on as the firm's head.

Chief operating officer Tim Cook will again stand in while Mr Jobs is away.

Diagnosed with pancreatic cancer in 2004, Mr Jobs had appeared increasingly gaunt at recent public appearances, sparking rumours about his health.

Speculation about his health had intensified since December, after Apple said Mr Jobs would not be making his annual keynote address at the Macworld conference in San Francisco.

Directors' support

In an e-mail to employees on Wednesday, Mr Jobs said: "Unfortunately the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well."

"In order to take myself out of the limelight and focus on my health... I have decided to take a medical leave of absence until the end of June."

As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan."

In last week's statement, Mr Jobs said doctors thought they had found the cause for his weight loss: "A hormone imbalance that has been robbing me of the proteins my body needs to be healthy."

Apple's board said it was giving him "complete and unwavering support".

Apple's share price fell 7% in late trading on Wall Street following the announcement, showing how closely the company's fortunes are still identified with the person who helped create it, says the BBC's Greg Wood in New York.

Professor Gerard Tellis of Marshall Business School at University of Southern California, said Mr Jobs had a "sense of what the market really wants and that's a rare talent".

"In the case of iPod, iTunes, the iPhone, as well as the iMac, he seems to have got it right."

"In each case, the company made a big decision based on his tastes and they seem to have got it right, because those products have turned out very well," he said.

Jobs' leadership

Apple's shares have risen and fallen over the last year in step with rumours or news about Mr Jobs' health.

While the top executive's health would be an issue for investors in any company, at Apple the level of concern has been heightened, because Mr Jobs is involved in everything from ideas for new products to the way they are marketed.

"Steve Jobs is the Ronald McDonald of Apple, he is the face," said Rob Enderle of the Enderle Group in Silicon Valley.

"They either need to redefine the company so his role is divided among different people or they need to find somebody that can clone Steve Jobs."

But other analysts disagreed.

"Everyone is going to speculate he is on his deathbed, like it usually goes. The company will do just fine with Steve taking a leave of absence," said Van Baker at information technology research firm Gartner.

"Apple is not going to collapse without him there."

Mr Jobs co-founded Apple with Steve Wozniak in 1976 at the beginning of the personal computer revolution. He left the firm in 1985 but returned in 1997 and became full-time chief executive once again in 2000.

Since then, Apple has churned out a string of sleek gadgets, from the iMac and the iPod to a new line of aluminum-covered Macbooks and the iPhone.

Many investors fear that without him, Apple would not be able to sustain its growth.

Mr Jobs said he was passing day-to-day management to Tim Cook, who filled in for Mr Jobs in 2004 when the Apple chief took leave to battle his cancer.

Rupee weak at 48.57 a dlr in early trade

The Indian rupee depreciated, in tandem with weakness in local stocks, and was quoted 25 paise lower at 48.55/57 against the greenback in early trade on Monday on some dollar demand from importers.

In lacklustre activity at the Interbank Foreign Exchange (forex) market, the domestic currency resumed weak at 48.53/55 a dollar from its last close of 48.28/29 a dollar and was steady at 48.55/57 a dollar in late morning deals.



Forex dealers said the rupee continued to remain under pressure as the Satyam accounts' scandal triggered fears of more capital outflows from the country despite some leading fund managers ruling out possibility of any capital outflow because of the Satyam fiasco.



They said oil refiners bought dollars as the global oil prices fell to around USD 40 a barrel level in Asian trade on Monday morning.



The Indian benchmark Sensex was down 268 points at 1030 hours after some foreign brokerages pointed to disappointing third quarter earnings likely to be affected by high input costs and the current liquidity crisis.

Obama plan 'could create 4m jobs'

US President-elect Barack Obama says urgent action is needed on the economy, and his $775bn (£509bn) stimulus plan could create up to four million jobs.

Mr Obama, who takes office in two weeks, wants to cut taxes and create jobs through increased government spending on public works projects.

"It's not too late to change course, but only if we take immediate and drastic action," he said.

The US unemployment rate is 7.2%, after 524,000 jobs were lost in December.

Recession fears

The number of job losses last year was 2.6 million, the largest since World War II.

The figures, released on Friday, heightened fears that the US is entering a long period of recession.

The president-elect published a detailed analysis of his recovery plan by his economic advisers, who said it could create up to four million jobs by the end of 2010.

The analysts estimated that the unemployment rate at the end of 2010 would be 1.8 percentage points lower if the plan was enacted.

"If nothing is done, economists from across the spectrum tell us that this recession could linger for years and the unemployment rate could reach double digits.

"They warn that our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world," he said in his weekly YouTube address.

Margins of error

The report estimates how many jobs each part of the plan would create.

More than 40% of the new jobs should go to women and 90% of them should be in the private sector.

It concedes that the estimates are "subject to significant margins of error". This is because the assumptions on which it is based may prove wrong and the package may change as it goes through Congress.

Senior Democratic senators have expressed scepticism that tax cuts will lead to growth and job creation.

They want more money spent on infrastructure and energy projects.

Satyam rebounds on rescue hopes

Shares in Indian software firm Satyam have jumped 51% on hopes of a rescue plan for the scandal-hit firm.

On Sunday, the Indian government appointed three leading businessmen to the company's board.

The board is meeting to draw up a rescue plan for the firm that has been at the centre of a scandal over the falsifying of accounts.

Meanwhile, the World Bank revealed that Satyam and two other Indian IT firms are on a business blacklist.

The Satyam scandal has undermined investors' confidence in India's booming outsourcing industry.

Deepak Parekh, a senior banker and one of the firm's new bosses, is due to hold a news conference at 5 pm local time - about 1130 GMT.

Satyam shares were up 51% at 36.05 rupees after the stock lost 87% last week.

World Bank

India's IT sector was dealt a further blow after the World Bank said that three Indian firms, including Satyam, were on a list of- companies that are banned from doing business with the bank.


Satyam's office in Bangalore
Satyam employs more than 50,000 people

Shares in Indian software firm Satyam have jumped 51% on hopes of a rescue plan for the scandal-hit firm.

On Sunday, the Indian government appointed three leading businessmen to the company's board.

The board is meeting to draw up a rescue plan for the firm that has been at the centre of a scandal over the falsifying of accounts.

Meanwhile, the World Bank revealed that Satyam and two other Indian IT firms are on a business blacklist.

The Satyam scandal has undermined investors' confidence in India's booming outsourcing industry.

Deepak Parekh, a senior banker and one of the firm's new bosses, is due to hold a news conference at 5 pm local time - about 1130 GMT.

Satyam shares were up 51% at 36.05 rupees after the stock lost 87% last week.

World Bank

India's IT sector was dealt a further blow after the World Bank said that three Indian firms, including Satyam, were on a list of- companies that are banned from doing business with the bank.


WORLD BANK BLACKLIST
Satyam barred for 8 years
Wipro barred for 4 years
Megasoft barred for 4 years
Source: World Bank

This was the first time the World Bank had disclosed the list of companies barred from receiving direct contracts under its corporate procurement program.

Satyam was banned in September 2008 for eight years and Wipro Technologies was blacklisted for four years from June 2007 for providing improper benefits to World Bank staff.

Wipro said it was banned for offering World Bank employees shares in its stock offer in the US in 2000.

Megasoft Consultants was banned for 4 years from December 2007 for taking part in a joint venture with World Bank staff while also conducting business with the Bank.

Shares in Wipro and Megasoft fell sharply on the news.

Arrests

The entire board of Satyam, a private company, had been sacked after its founder and former chairman had been arrested.

Ramalinga Raju and his brother Rama, also a former Satyam director, were arrested on charges including criminal conspiracy and forgery.

Mr Raju admitted last week that the firm had been falsifying its accounts.

He said the company had exaggerated its cash reserves by some $1bn (£661m).

The other new directors are Kiran Karnik, the former boss of technology trade group Nasscom, and C Achuthan, a former member of the Securities and Exchange Board of India.

The company, which employs 53,000 people and enjoyed a turnover of $40bn last year, is now fighting for its life.

Its clients include Nestle, General Electric and Ford.

The Raju brothers have also been charged with criminal breach of trust and falsifying documents.

They have been remanded in custody until 23 January, and could face life in prison.

Indian police have also now detained Vadlamani Srinivas, Satyam's chief financial officer, for questioning.