Archive for ‘Chindia Alert’

28/07/2015

SpiceJet reports $11.2 million net profit in Q1 | Reuters

Budget airline SpiceJet Ltd(SPJT.BO) reported on Tuesday a net profit of 718 million rupees ($11.2 million) for the three months ending June, after cutting costs and flying more passengers.

SpiceJet aircrafts prepare for landing and take-off at the airport in Mumbai July 15, 2008. REUTERS/Punit Paranjpe/Files

SpiceJet made a net loss of 1.24 billion rupees in the same quarter a year earlier.

India’s second biggest budget carrier by market share, which last quarter made its first profit since 2013, is in the midst of a recovery plan after it almost collapsed late last year.

Under new Chairman Ajay Singh, the airline has cut routes – its capacity is down a third since last year – and costs.

It said on Tuesday that its load factor – the percentage of an airline’s carrying capacity it has filled – rose to 89.8 percent in the quarter, a rise of almost 15 percent from last year.

Sustained profitability has eluded most of India’s airlines for the last few years amid fierce competition for fares and high operating costs, despite the country’s aviation market growing at one of the fastest rates worldwide.

SpiceJet shares jumped after news of the results, ending up 7.4 percent as the wider market .BSESN fell 0.4 percent.

($1 = 63.9400 rupees)

via SpiceJet reports $11.2 million net profit in Q1 | Reuters.

28/07/2015

Maruti Suzuki Q1 profit jumps 56 percent; lower costs, higher sales | Reuters

Maruti Suzuki India Ltd(MRTI.NS), India’s top-selling carmaker, said on Tuesday first-quarter net profit rose 56 percent helped by lower costs, favourable foreign exchange rates and higher sales, but still missed bullish analyst estimates.

A Suzuki badge is reflected on the body of a Maruti Suzuki Eeco car at a Maruti Suzuki stockyard on the outskirts of Ahmedabad April 26, 2013. REUTERS/Amit Dave/Files

Maruti, controlled by Japan’s Suzuki Motor Corp (7269.T), said profit for the April-June quarter was 11.9 billion rupees ($185.94 million), up from 7.6 billion rupees in the same period a year earlier. Analysts had expected a profit of 12.35 billion rupees, according to Thomson Reuters I/B/E/S.

Net sales rose about 18 percent to 130.8 billion rupees, the company said, as India’s car trade continues to grow. India is expected to become the world’s third-largest car market by 2020, moving up three places.

“During the quarter, higher volumes, cost reduction efforts, lower sales promotion expenses, and favourable foreign exchange helped improve the performance,” the company said in a stock exchange statement.

Total expenses as a percentage of net sales fell to 91 percent during the quarter from about 96 percent in the year ago period, while finance costs were halved to 190.4 million rupees. Maruti, which imports certain car components from Japan and also pays royalty to its Japanese parent, Suzuki, is benefiting from the yen’s weakening.

The carmaker, which sells about one in every two cars in India, wants to increase its share of the premium car segment at a time when rivals like Honda Motor Co (7267.T) and Ford Motor Co (F.N) are launching cheaper, compact cars – Maruti’s mainstay.

Maruti has had little prior success in the premium segment and is now planning an aggressive rollout of new vehicles and dealerships to capture buyers with deeper pockets – a move that is expected to boost margins and profits, say analysts.

Next week Maruti will launch the S-Cross – a crossover between a sport-utility vehicle and a hatchback – the first car to be sold at its new Nexa showrooms. These spruced-up showrooms will differ from existing dealerships in design and service, managing director Kenichi Ayukawa said recently.

“It is a very good strategy because as income levels rise we will see that more and more consumers will prefer premium vehicles,” said Nitesh Sharma, auto analyst at Mumbai-based brokerage, Phillip Capital, adding that it will boost margins.

Shares in Maruti, valued by the market at about $20 billion at Monday’s close, were trading 0.5 percent higher at 4,200 rupees a share at 0850 GMT in a weak Mumbai market.

Maruti’s shares have risen more than 25 percent since January – the highest among major automobile companies in India.

($1 = 64.0000 rupees)

via Maruti Suzuki Q1 profit jumps 56 percent; lower costs, higher sales | Reuters.

28/07/2015

Delta to buy 3.55 percent stake of China Eastern for $450 million | Reuters

Delta Air Lines Inc (DAL.N) has agreed to buy 3.55 percent of China Eastern Airlines Corp Ltd (600115.SS)(0670.HK), a move that would make it the first U.S. carrier to own part of a Chinese airline.

The deal may prompt Delta’s rivals to beef up partnerships with Chinese carriers in an effort to secure their place in a country that Delta expects to become the biggest market for travel from the United States.

Delta’s purchase challenges rival United Continental Holdings Inc (UAL.N), the leading U.S. airline for service to China. United Chief Executive Jeff Smisek said Thursday during an investor call that the airline would be “keenly interested” in exploring a Chinese joint venture once the United States and China negotiate an Open Skies agreement that would ease air route restrictions.

Atlanta-based Delta said it will invest $450 million in China Eastern’s Hong Kong-traded stock, which has nearly tripled over the past 12 months even as broader Chinese stock indexes have plunged.

Delta said it will get an “observer” seat on China Eastern’s board. The move may pave the way for Delta and China Eastern to seek approval to coordinate pricing and flight capacity.

However, larger tie-ups with antitrust immunity cannot happen until an Open Skies agreement is in place, which could take years. Currently, governments specify which airlines can fly which routes, and how often.

Chinese carriers have been “launching far too much capacity across the Pacific,” industry consultant Robert Mann said. “Everybody is looking for a stronger form of joint-venture partnership for the day when China and the U.S. have Open Skies.”

For now, Delta and China Eastern say they will invest in services so travelers have a seamless experience on the airlines, which share flight codes on 80 routes including subsidiary Shanghai Airlines. The partnership will grow Delta’s foothold in China Eastern’s Shanghai hub, a key market for business travel.

The transaction is subject to approval by each company’s board.

Delta is investing in foreign carriers, taking small stakes in one airline in Mexico and one in Brazil. It also owns 49 percent of Virgin Atlantic Airways Ltd (VA.O) and has used its position to shift the UK carrier’s routes to Delta’s advantage.

via Delta to buy 3.55 percent stake of China Eastern for $450 million | Reuters.

27/07/2015

China Stocks Make Sharpest Daily Fall Since 2007 – China Real Time Report – WSJ

China stocks made their sharpest daily percentage decline since 2007, as worries mount that authorities are pulling back on its measures to prop up the market. As WSJ’s Chao Deng reports:

The Shanghai Composite Index ended down 8.5% at 3725.56, its second-straight day of losses and worst daily percentage fall since February 27, 2007. China’s main index is up 6% from its recent low on July 8, but still off 28% from its high in June.

The smaller Shenzhen Composite fell 7% to 2160.09 and the small-cap ChiNext Closed 7.4% Lower at 2683.45

Analysts say the selling came as investors fear the government is curbing its buying of blue-chip stocks—and could even be testing whether the market can support itself.

“The previous support from the government funds is apparently unsustainable,” said Jacky Zhang, an analyst at BOC International. “They may withdraw support today to test whether the market has recovered its resilience. The government wants to use state funds to stabilize the market, not to prop it back to 5,000 point overnight.”

via China Stocks Make Sharpest Daily Fall Since 2007 – China Real Time Report – WSJ.

27/07/2015

How Police and the Indian Army Are Dealing With Punjab Attack: In Pictures – India Real Time – WSJ

At least three gunmen stormed a police station in northern India near the border with Pakistan Monday, killing six people—including two policemen—and injuring seven others, in a standoff that continued hours later, a senior Indian counterterrorism official said.



It is such terrible news and I always think back to seeing Roger and Hilary at their home and having a picnic in their garden. They are/were such lovely people. I had the greatest repsetc for Roger and I am only sorry that I didn’t stay in touch.

Punjab police fired to counter the attack on Monday. Agence France-Presse/Getty Images

H.S. Dhillon, head of intelligence for Punjab state police, said the attackers were suspected to have crossed the Indian frontier early Monday.

The deadly incident comes as hostilities between India and Pakistan have worsened in recent weeks, even after a meeting of the countries’ premiers earlier this month sparked hopes of a thaw.

Indian army personnel stood in Dinanagar town, July 27, 2015. Narinder Nanu/Agence France-Presse/Getty Images

India has long accused Pakistan of harboring and aiding militant groups that launch attacks on India, particularly in the northern state of Jammu and Kashmir. Pakistan denies allegations that it supports militant activities against India.

Army personnel take position in Dinanagar town, July 27, 2015. Narinder Nanu/Agence France-Presse/Getty Images

But Monday’s killings were unusual, analysts said, because they occurred in Punjab, where militant attacks have in the past two decades been rare, and could signal an expansion of militancy beyond Kashmir.

Punjab police took position during the attack. Narinder Nanu/Agence France-Presse/Getty Images

Police personnel took aim during the attack. Narinder Nanu/Agence France-Presse/Getty Images

The gunmen, who were wearing military uniforms, opened fire on a bus in Punjab’s Gurdaspur district before heading to the local police station, according to Mr. Dhillon and an eyewitness. The attackers exchanged fire with police inside the station and a standoff that continued into Monday afternoon, Mr. Dhillon said.

via How Police and the Indian Army Are Dealing With Punjab Attack: In Pictures – India Real Time – WSJ.

25/07/2015

Should Britain Pay Reparations to India? Shashi Tharoor Says Yes, Narendra Modi Praises Him, What Do You Think? – India Real Time – WSJ

Should Britain pay reparations to its former colonies, including India? An articulation of why the former holder of empire should make amends, or at least say sorry, for two centuries of colonial rule, has sent a video of Indian law maker Shashi Tharoor viral and opened up a debate in India.

In a 15 minute speech given during a debate at the Oxford Union in the U.K., telegenic and floppy-haired Mr. Tharoor, who is a former foreign minister and a onetime under-secretary-general at the United Nations, argued that “Britain’s rise for 200 years was financed by its depredations in India.”

Speaking in favor of the motion, the opposition Congress party politician said that India’s share of the world economy when the British arrived was 23% but by the time they left it had slipped to 4% because “India had been governed for the benefit of Britain. Britain’s rise for 200 years was financed by its depredations in India.”

“In fact, Britain’s industrial revolution was actually premised upon the de-industrialization of India,” he added.

The YouTube clip of the Congress politician’s oration has been watched more than 1.5 million times since it was uploaded last week, making it one of the most-viewed clips from the Oxford Union, a prestigious debate chamber at the University of Oxford.

A video of Jack Gleeson, an actor explaining to the chamber why he left the Game of Thrones, has over two million views as does one of Sepp Blatter, the FIFA president, impersonating Portuguese soccer player Cristiano Ronaldo.

Others to have appeared at in the red-walled debate chamber in the recent past include Google’s Executive Chairman Eric Schmidt, former U.S. Senator John Edwards, former Australian Prime Minister Kevin Rudd and onetime South African President F.W. De Klerk.

Indian social media lit up with praise for Mr. Tharoor’s eloquence and ability to take on the British establishment: Opposing speakers in the debate included Sir Richard Ottaway, a politician with the United Kingdom’s right-wing Conservative party.

Indian Prime Minister Narendra Modi, who belongs to Congress’s rival the Bharatiya Janata Party, praised Mr. Tharoor for the speech.

via Should Britain Pay Reparations to India? Shashi Tharoor Says Yes, Narendra Modi Praises Him, What Do You Think? – India Real Time – WSJ.

22/07/2015

Airbus China plant plans to deliver first A330 plane in 2018 | Reuters

Airbus’ (AIR.PA) China plant is expected to deliver its first A330 wide-body passenger jet in 2018, one of the European planemaker’s Chinese partners said on Wednesday.

A worker uses a drill to screw bolts into the wing of an A320 plane that is under construction at the Airbus factory located in the northern Chinese city of Tianjin September 14, 2010.  REUTERS/David Gray

Airbus earlier this month signed an agreement to establish an A330 ‘cabin completion center’ in the northeastern Chinese city of Tianjin, where the firm already has a final assembly plant for smaller A320 jets.

The agreement was signed with the Aviation Industry Corp of China [SASADY.UL] and the Tianjin Port Free Trade Zone. Airbus hopes the increased presence in China would lead to more demand for the profitable but ageing wide-body A330 jets.

In a statement posted on its website, the Tianjin Port Free Trade Zone, said it expects construction of the plant to be completed by the fourth quarter of 2017, with the first plane to be delivered to customers in early 2018.

The plant will help further China’s goal of building its own jets to cater to what is expected to become the world’s biggest air transport market. Currently it depends mostly on imported jets from Airbus and Boeing (BA.N).

Facilities for cabin decoration, painting, and flight testing of the A330 series would also be established in the next 10 years, the Tianjin Port Free Trade Zone said.

The agreement to build the A330 plant, which will be capable of fitting out 2 planes a month, came after China placed an order for 45 A330 aircraft worth at least $11 billion, together with provisional purchases of another 30 planes.

via Airbus China plant plans to deliver first A330 plane in 2018 | Reuters.

22/07/2015

India’s Labor Force – WSJ

India’s urban women are four times less likely to be in paid work than their male counterparts with the most educated being the least likely to participate in the workforce, the latest figures from India’s labor ministry show.

Meanwhile in rural India, women are marginally more likely to have a job – the ratio of male to female participation in the workforce is 2.6 to 1.

Here are some more findings from the survey.

39%

The proportion of women who have received vocational training were not part of the workforce in 2013/14.

Although women were not asked to give reasons in the survey, Jayan Jose Thomas, an assistant professor of economics at the Indian Institute of Technology in New Delhi and an expert on India’s labor market and industry, said women often face discrimination at work in rural and urban India, including unequal pay.

In urban India, there were also concerns for women’s safety, traveling to and from work and in the workplace. Pushing the figures higher, women who chose to be homemakers were counted as unemployed.

“When you look at the figures for women, you understand the real employment situation in India. You see a huge mismatch,” said Mr. Thomas.

Indian women’s participation in the workforce falls as their education level rises, according to research by Mr. Thomas.

Labor-force participation by women in 2009-10 showed nearly 55% of women with post-graduate level education had not joined the workforce. Most women who didn’t join the workforce said “they are attending to domestic duties.”

524 rupees

The average daily wage for a man educated beyond high school working in an Indian city. That is the equivalent of $8. For women, average earnings were 391 rupees a day.

12 million

The number of people who enter India’s workforce each year. Some argue India’s rigid labor laws, which make it harder to fire employees, may be the reason employers are reluctant to hire full-time staff but Mr. Thomas says, despite official figures showing otherwise, the growth of India’s workforce has stagnated from lack of investment in infrastructure.

Government investment in basic infrastructure, like setting up power plants, needs to take place before the country can realize Indian Prime Minister Narendra Modi’s “Make In India” drive, which seeks to supercharge the country’s manufacturing growth, according to Mr. Thomas.

“India’s infrastructure shortage is so high that you cannot expect private investment to kick-start industrial growth. You need public sector to do the work first,” Mr. Thomas said. “Major initiative has to come from the government.”

5.5 million

Jobs created in India every year. Even though 12 million people join India’s workforce every year, the number of new jobs is much lower. Mr. Modi’s government has set a target of creating 400 million jobs by 2020 to try and narrow the gap.

6.8 %

The proportion of India’s population signing up for vocational training in the country. Among those who successfully train, a large proportion – 75% – find employment.

via India’s Labor Force – WSJ.

22/07/2015

Kind of Blue: China’s Air Pollution Not as Terrible as Before – China Real Time Report – WSJ

If you’re living in China and have the vague impression that the skies have been bluer than usual this year, it’s not just wishful thinking.

According to an analysis released Wednesday by Greenpeace East Asia, China’s air is not as awful as it used to be. Among 189 cities examined by the environmental nonprofit, PM2.5 levels in the first half of 2015 were down an average of 16% compared to the same period last year. Only 18 cities saw their levels of PM2.5 increase.

Health experts say that small particles such as PM2.5 are particularly worrisome for human health, given their ability to creep deep into the lungs and aggravate heart or lung disease.

“I think this is the first time I’ve seen a massive reduction on PM2.5 concentrations at a national level,” said Dong Liansai, Greenpeace East Asia energy and climate campaigner. In recent years, the frequent grey pall and onset of periodic “airpocalyses” have helped discourage tourism to Beijing and have spurred expats and locals alike to leave for more oxygen-rich environments.

In the country’s notoriously smoggy capital, residents have seen PM2.5 levels drop by 15.5%, with levels of sulfur dioxide – which can contribute to respiratory problems — experiencing a still more precipitous drop of 42.6%, the group said. The capital has been making a concerted push to clean up its skies, closing or relocating 185 firms in the first half of this year, according to the Beijing government. Since last July, the city has also shuttered three of its four coal-fired power plants.

Mr. Dong said the bump in clean air doesn’t appear to be just a blip. He credited more aggressive government standards on emissions and efforts to shutter its dirtiest factories. He also cited the government’s 2013 air pollution control plan, which mandates that by 2017, certain regions must reduce their PM2.5 levels by as much as 25% compared to 2012 levels.

Compared with the rest of the world, the Middle Kingdom’s air still ranks as wretched: the average PM2.5 level in the 385 cities ranked by the group was 53.8 µg/m3, more than five times the World Health Organization’s recommended annual mean.

To keep skies blue-hued for events such as last November’s APEC summit, the city periodically shuts down nearby factories and orders cars off the streets. Such a strategy has in the past paid health dividends for residents. A recent study found that women pregnant during the 2008 Beijing Olympics—when the Chinese government worked aggressively to keep air pollution down for a seven-week period—gave birth to heavier, and presumably healthier, babies.

via Kind of Blue: China’s Air Pollution Not as Terrible as Before – China Real Time Report – WSJ.

21/07/2015

Indian Companies Invest Billions, Create Thousands of Jobs in the U.S. – The Numbers – WSJ

As India attempts to thaw its business environment and attract the interest of foreign companies, a hundred Indian firms have together made investments worth more than $15 billion in America, according to the findings of a new survey by the Confederation of Indian Industries and audit firm Grant Thornton International Ltd.

The findings, which were released in a report titled “Indian Roots, American Soil” on Tuesday, suggest that Indian companies in the U.S., most operating in the information-technology sector, have created thousands of jobs there and show a growing interest in hiring more American workers in the next few years.

Indian outsourcing companies in the U.S. have in recent months been criticized for depending too much on foreign staff — H1-B visa holders – instead of hiring locals.

The 100 Indian companies surveyed are spread across all 50 U.S. states, the report said. Here are the main numbers from the report.

91,000

The survey says Indian firms have created more than 91,000 jobs in the U.S., most of them concentrated in New Jersey, where they have hired over 9,000 people. In California, more than 8,000 people work for Indian companies.

$15.3 billion

The total value of tangible investments – for example in real estate or equipment — made in the U.S. by the surveyed companies. Texas has received the largest amount — almost $3.85 billion from 17 Indian companies, most in the information-technology and telecom sectors. The report didn’t give a timeframe for these investments.

40%

The percentage of surveyed companies that do information-technology business is 40%. The report also highlights the emergence of Indian companies in the pharmaceutical and manufacturing sectors, which each accounted for 14% of the firms surveyed.

84%

That’s the proportion of companies in the survey that plan to make more investments in the U.S. in the next five years. California, New Jersey, New York and Texas are the “most promising states for expected future investment,” the report said.

90%

The forecast for hiring local U.S. employees is also encouraging, the survey reveals. Almost 90% of the companies responded positively when asked if they foresaw hiring locally in the coming five years.

via Indian Companies Invest Billions, Create Thousands of Jobs in the U.S. – The Numbers – WSJ.

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India