Fed to publish rate path forecasts in transparency move
WASHINGTON - The U.S. Federal Reserve on Tuesday said it would begin publishing forecasts on the path of interest rates later this month, a move that could suggest rates will be on hold for longer than previously expected. 

Weak U.S. consumer spending is expected through 2012
Weighed down by flat incomes and job creation, there is little chance that U.S. consumers will increase spending significantly this year, experts said. Macroeconomic Advisers forecasts 2% growth in consumer spending in the first half of the year, compared with the estimated 3.6% increase in the fourth quarter of 2011. 

Euro zone bailout fund names managers for 3 billion euro issue
BRUSSELS - The euro zone's rescue fund, the European Financial Stability Facility (EFSF), appointed Credit Suisse, Deutsche Bank and Societe Generale on Tuesday as joint lead managers for its first 3-year, 3 billion euro bond sale. 

ECB has room to cut interest rates as inflation eases
The eurozone's sovereign-debt crisis is easing inflation pressures, giving the European Central Bank more room to maneuver on interest rates in the new year. Statistics reinforce the view "that underlying inflationary pressures are easing and that the ECB has ample scope to cut interest rates again in the early months of 2012," said Howard Archer, chief European economist at IHS Global Insight. "Eurozone inflation is poised to retreat markedly over the coming months." 

Greece: Clinch bailout or face euro exit
ATHENS - Greece will have to leave the euro zone if it fails to clinch a deal on a second, 130 billion euro bailout with its international lenders, a government spokesman said on Tuesday.
Yields fall in Italy's bond auction

Italy's borrowing costs fell in a $9 billion bond auction, but not enough to put the financial markets at ease about the nation's economy. The 10-year bond yield was 6.98%, compared with 7.56% in November. The three-year debt sold at a 5.62% yield, compared with 7.89% last month. 

Chinese manufacturing posts second straight monthly decline
China's manufacturing sector contracted for the second month in a row in December, as Europe's weakening economy cut demand for exports, according to the purchasing managers' index sponsored by HSBC Holdings and Markit Economics.

India - Economy and Market 

Nov exports rise 3.9 pct at $22.3 bln y/y
NEW DELHI - India's November exports rose an annual 3.87 percent to $22.3 billion, while imports for the month rose 24.55 percent to $35.9 billion, the government said in a statement on Monday.
India opens equities market to foreign investors

India's market regulator said it will allow direct investment in Indian companies by foreign investors, starting Jan. 15. Whether foreigners will be allowed voting rights in the companies is undecided, the regulator said. 

Factory activity jumps to highest since June
BANGALORE - India's manufacturing activity surged to a six-month high in December thanks to a spike in factory output and new orders from domestic and international firms, a survey of purchasing managers showed on Monday.

The HSBC Markit India Manufacturing PMI jumped to 54.2 from 51.0 in November, its biggest monthly rise since April 2009.
The index has stayed above the 50 mark that separates growth from contraction for 33 months now. The PMI came closest to suggesting a contraction in September when it dipped to 50.4.
RBI says to buy back up to 120 bln rupees bonds Friday

MUMBAI - The Reserve Bank of India on Tuesday said it will buy up to 120 billion rupees of government bonds via open market operations on Friday, including the 10-year paper which till recently was the benchmark paper. 

RBI likely to ease policy - Subbarao
REUTERS - The Reserve Bank of India is likely to begin easing monetary policy to address concerns about economic growth, Governor Duvvuri Subbarao said in a BBC interview, reiterating comments made by the RBI when it kept rates unchanged on December 16. 

Current account deficit $16.9 bln in July-Sept
MUMBAI - The current account deficit remained unchanged at $16.9 billion in the September quarter from a year earlier, as a widening trade gap was offset by service-related inflows. 

India Inc's interest paying ability at 5-yr low: Crisil
Crisil's study covered 420 companies, excluding banking and financial institutions and state-owned oil marketing companies.

The rising interest rates and declining operating profits has affected companies interest paying ability, said Crisil in a research. 

Debt investments to push recovery when rates drop
In the six months to December 16, depositors have parked nearly Rs 3.53 lakh crore in deposits with banks, most of it in two to fiveyear maturities. 

Higher remittances, software services income control current account deficit
The current account in the balance of payments measures the net position of a country’s exports and imports of goods and services.

As a percentage of GDP, the current account deficit as of end September was marginally lower at 3.6% of the GDP compared to 3.7% in the year ago period. 

Government readies Rs 50,000 crore infra fund plan
The government has finalized the contours of a $10-billion (over Rs 50,000 crore) infrastructure debt fund (IDF) with 50% participation from a foreign bank and a multilateral agency, while the rest of the corpus will be contributed by state-owned financial institutions. 

Tattering finances: Government's market borrowings to exceed budget by at least 25%
It highlights the tattered state of its finances under assault from unprecedented subsidy payments and faltering revenue growth.

Technology News –
IT cos TCS, Infosys, Wipro and HCL Tech to report higher margins on weak rupee
The rupee has fallen more than 15% against the dollar, and this is expected to result in a margin boost of up to 300 basis points. 

Google embraces advertising for itself; attempts to promote its products Chrome & Google(PLUS)
The ads are also part of Google's mission to pare down its product offering and make Google products more attractive & integrated with one another. 

Facebook blamed for one-third divorces across globe
Social networking website Facebook has been blamed for one-third of divorces across the world, according to a law firm. 

14 lakh Aakash Tablets booked in 14 days
Sales bookings for world's cheapest tablet, Aakash, have soared to 14 lakh units just 2 weeks after it was put up for sale online for Rs 2,500 a piece. 

Micromax eyes entry into billion dollar revenue club
Homegrown handset maker Micromax is now looking at joining the billion dollar revenue club in the next few years. 

Global MDM software revenue likely to rise by 21% in 2012
MUMBAI: The global master data management (MDM) software revenue is likely to rise by 21 per cent to touch USD 1.9 billion in 2012 compared to the last year, research firm Gartner said today.

MDM consists of processes that manage the non-transactional data of a firm.