World’s Wealth Destroyed over 45%

New York: Private equity company Blackstone Group LP CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world’s wealth has been destroyed by the global credit crisis.

“Between 40 and 45 percent of the world’s wealth has been destroyed in little less than a year and a half,” Schwarzman told an audience at the Japan Society. “This is absolutely unprecedented in our lifetime.”

But the U.S. government is committed to the preservation of financial institutions, he said, and will do whatever it takes to restart the economy.

U.S. Treasury Secretary Timothy Geithner plans to unfreeze credit markets through a new program that will combine public and private capital in a fund that would buy bank toxic assets of up to $1 trillion.

“In all likelihood, that will have the private sector buy troubled assets to clean the banks out in terms of providing leverage … so that we can get more money back into the banking system,” Schwarzman said.

He expects the private sector to end up making “some good money doing that,” but added there were complex issues on how to price toxic assets.

He put part of the blame for the financial crisis to credit rating agencies.

“What’s pretty clear is that, if you were looking for one culprit out of the many, many, many culprits, you have to point your finger at the rating agencies,” he said.

Source: www.nhatky.in

51% Stake of Sataym Selling Procedure Starts

Mumbai: Satyam Computer Services has begun the procedure of selecting an investor by inviting expressions of interest from bidders. SEBI has recently authorized Satyam to sell up to 51 percent stake.

Under the process that started on Monday, the bidders will have to submit detailed EoIs, along with proof of availability of funds of at least 1,500 crore rupees by March 20, Satyam said in a statement.

On Monday, the company issued an expression of interest, according to which there is no floor price for the bidders.

The interested investor may register with the company by March 12.

Based on the submitted EoIs, eligible bidders would be short-listed and given access to certain business, financial and legal diligence material of the company provided they sign a non-disclosure and non-solicitation agreement with Satyam, the company stated.

The process of the stake sale will involve 31 percent fresh equity shares and 20 percent open offer.

100 Cr is Being Losed by Dalal Street every 5 Minutes

MUMBAI: After a whopping loss of over Rs 40,00,000 crore in 2008, the stock market is continuing its free-fall and investors have lost an average of Rs 100 crore in every five minutes of trade in first two months of 2009.

Cumulatively, the total investors’ wealth has got eroded by about Rs 2,82,000 crore so far this year.

However, the meltdown has been less severe so far this year, as compared to 2008 when an average of Rs 100 crore was wiped off in just two minutes of trade, as per an analysis of stock market losses during 2008 and first two months of 2009.

During 2008, the total investors’ wealth, measured in terms of cumulative market capitalisation of all the listed companies, plummetted from close to Rs 72,00,000 crore to about Rs 31,00,000 crore.

So far in 2009, the investors’ wealth on Indian bourses has gone further down to about Rs 28,60,000 crore, as per the current market value of the listed companies.

There were a total of 246 trading sessions in 2008, while so far in 2009 trades have been conducted on 39 days.

Taking into account a trading session of five hours and 35 minutes every day (markets open at 0955 hours and close at 1530 hours), an average of Rs 20 crore has been lost in every minute of trade so far this year.

This average was, however, more than double at Rs 50 crore in every minute of trade in 2008.

In terms of Sensex movement, the benchmark index has lost more than 750 points in first two months of 2009. During the entire 2008, the Sensex plummetted by more than 10,000 points.

However, if we take into account the price-earnings ratio, the Indian market seems to have become a bit more expensive in the first two months of 2009. It had become cheaper by more than half during 2008 by this measure.

The price-earnings ratio of the Sensex currently stands at 12.82, which is higher than 12.16 at the beginning of the year. However, it had fallen sharply during 2008 from 26.94 at the end of the previous year.

Source: www.nhatky.in

Aviation Turbine fuel Prices Cut by 7%

New Delhi: State-run fuel retailers on Saturday slashed jet fuel or ATF rates by a further seven percent, making it the 11th reduction since September last year.

Aviation Turbine Fuel (ATF) prices in Delhi were slashed by Rs 2,052 per kilolitre to Rs 27,106 per kl, effective midnight tonight, an official of Indian Oil Corp, the nation’s largest fuel retailer, said.

But for the one-off 3.3 percent increase in rates on January 16, jet fuel prices are declining in tandem with the fall in international oil rates.

In Mumbai, home to the nation’s busiest airport, ATF rates were down to Rs 27,861 per kl from Rs 29,985.19 per kl.

The reduction in jet fuel prices announced today varied from airport to airport depending on local taxes and levies and an on average worked out to Rs 2,125 per kl.

ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of USD 147 a barrel. But they have since been slashed every month till October and twice in November.

After the 11th reduction, jet fuel are hovering at early 2005 levels.

State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.

Source: www.nhatky.in

Aviation Turbine fuel Prices Cut by 7%

New Delhi: State-run fuel retailers on Saturday slashed jet fuel or ATF rates by a further seven percent, making it the 11th reduction since September last year.

Aviation Turbine Fuel (ATF) prices in Delhi were slashed by Rs 2,052 per kilolitre to Rs 27,106 per kl, effective midnight tonight, an official of Indian Oil Corp, the nation’s largest fuel retailer, said.

But for the one-off 3.3 percent increase in rates on January 16, jet fuel prices are declining in tandem with the fall in international oil rates.

In Mumbai, home to the nation’s busiest airport, ATF rates were down to Rs 27,861 per kl from Rs 29,985.19 per kl.

The reduction in jet fuel prices announced today varied from airport to airport depending on local taxes and levies and an on average worked out to Rs 2,125 per kl.

ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of USD 147 a barrel. But they have since been slashed every month till October and twice in November.

After the 11th reduction, jet fuel are hovering at early 2005 levels.

State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.

Sourc: www.nhatky.in