The euro area experienced a considerable, negative, monetary shock in Q4 last year, with broad money contracting at an annualized rate of over 4% in the last three months of the year. On the asset side of banks' balance sheets, deleveraging was acute in December, with a steep fall in bank lending to the private sector– far more severe than anything seen in 2008/09 – especially to non-financial corporates.

Greek troika sees second bailout up to 145 bln euros - report

BERLIN - Greece's international lenders think the indebted country will need 145 billion euros of public money from the euro zone for its second bailout rather than the planned 130 billion euros, German news magazine Der Spiegel reported on Saturday.

Greece's economy is deteriorating so fast that there are doubts whether it can ever recover without defaulting on its bonds, according to an analysis by the International Monetary Fund. The analysis suggests that even after spending cuts and tax increases, Greece's debt in 2020 won't be significantly lower than it is now.

Fitch cuts Italy, Spain, other euro zone ratings

Fitch cut Italy's rating to A-minus from A-plus; Spain to A from AA-minus; Belgium to AA from AA-plus; Slovenia to A from AA-minus and Cyprus to BBB-minus from BBB, leaving the small island nation just one notch above junk status, indicating there was a 1-in-2 chance of further cuts in the next two years.

Italy bill sale success boosts mood ahead of Monday test

MILAN - Italy's six-month funding costs fell sharply on Friday to levels last seen before the country came to the fore of the euro zone debt crisis last summer, helping power a rally in its bonds ahead of Monday's more challenging sale of longer-dated debt.

U.K. retailers report poor sales this month

Britain's retail stores are suffering their worst month since March 2009, the Confederation of British Industry reported. Earlier, the government estimated that the U.K. economy contracted 0.2% in the fourth quarter.

U.S. growth quickens, but speed bumps ahead

WASHINGTON - The U.S. economy grew at its fastest pace in 1-1/2 years in the fourth quarter, but a rebuilding of stocks by businesses and slower business spending warned of weaker growth in early 2012.

Credit Suisse - Recent data make us more secure in our belief that the expansion will persist unimpeded in 2012. We remain skeptical that a new phase of sustained faster growth is upon us. We still expect 2012 GDP growth at 2.2% on a Q4/Q4 basis (2.3% annual average).

Fed appears open to another round of stimulus

Federal Reserve Chairman Ben Bernanke left the door open for more bond purchases to boost the struggling U.S. economy. "The framework makes very clear that we need to be thinking about ways to provide further stimulus if we don't get improvement in the pace of recovery and a normalization of inflation," he said.

Swiss urge U.S. tax deal to shield other banks

The break-up of Switzerland's oldest bank Wegelin on Friday shows the need to settle a dispute with U.S. authorities over tax cheats hiding cash in secret Swiss accounts, the finance minister said on Saturday.

The U.S. Department of Justice is probing 11 Swiss banks, including Credit Suisse (CSGN.VX), Julius Baer (BAER.VX) and Basler Kantonalbank (BSKP.S).

"I don't know whether other banks are in a similar or same situation...but what I know is that various banks are being threatened by the United States with prosecution and we will try to do everything...to come to a solution," Widmer-Schlumpf said.

U.S. public pension plans boost investment in private equity

Major public-employee pension plans in the U.S. are significantly increasing their investment in private-equity funds, according to data from Wilshire Trust Universe Comparison Service. A decade ago, public pensions had less than $1 billion, or 3% of their assets, in private equity. By September, such investment was worth $220 billion, 11% of the total.

U.S. military spending is set to fall for first time since 1998

To reduce the budget deficit, the U.S. next year will make its first reduction in military spending since 1998, Defense Secretary Leon Panetta said. The Obama administration will downsize the Army and the Marine Corps, cut the number of warships and fighter aircraft and ask Congress to approve base closures.

U.S. led world's oil-production growth for past 3 years, report says

A report by the U.S. Energy Information Administration reportedly will confirm that the country has been the world's fastest-growing oil producer for the past three years.

Japan logs first trade deficit since 1980

TOKYO - Japan logged its first annual trade deficit in more than 30 years in 2011, calling into question how much longer the country can fund its huge public debt without relying on fickle foreign investors.

China's manufacturing sector sees third month of decline

For the third consecutive month, China's manufacturing activity is declining, according to a survey by HSBC Holdings. The January "flash" reading of the purchasing managers' index is 48.8; anything less than 50 indicates contraction.

Slowing growth in China is emerging as a concern in some of this quarter's earnings reports from U.S. multinationals that have long relied on strong growth in China and other emerging markets to drive their profits.

India - Economy and Market

India surprises markets by cutting cash-reserve ratio

The Reserve Bank of India unexpectedly lowered banks' cash-reserve ratio for the first time since 2009. The central bank reduced the share of deposits that banks must hold in reserve to 5.5%, from 6%. It left the repurchase rate unchanged at 8.5%.

India reportedly will pay for Iranian oil with gold

India plans to circumvent U.S. economic sanctions on Iran by paying for oil with gold, according to a website reportedly associated

with Israeli intelligence. Indian Economic Affairs Secretary R. Gopalan, who has been working on how to pay for oil from Iran, did not comment when contacted by The Times of India.

Food price index down 1.03 pct y/y on Jan 14

NEW DELHI - India's food price index declined 1.03 percent in the year to January 14 government data on Friday showed, compared with an annual drop of 0.42 percent in the previous week.

India's foreign exchange reserves rise by $731.8 million: RBI 

After the sixth straight weekly decline, India's foreign exchange reserves rose by $731.8 million to $293.25 billion for the week ended Jan 20.

IMF lowers India's growth projections to 7% as global recovery stalls

Growth in emerging and developing economies is expected to slow because of worsening external environment and weakening of internal demand.

Indian factories fail to move up on competition ladder

Smaller economies such as Thailand, Mexico and the Philippines once again outperformed India in a global industrial competitiveness index.

Govt to scrap weekly inflation data release

NEW DELHI - The government will discontinue weekly release of food and fuel inflation data based on wholesale price index (WPI) and instead shift to monthly reporting, a government official said on Wednesday, without citing a reason.

Government approves 10 pc disinvestment in RINL, may get Rs 2,500 crore

The government has approved disinvestment of 10 per cent of its stake in Rashtriya Ispat Nigam Ltd (RINL) through an initial public offer.

Govt gives nod to Oman Investment Fund to buy 5% stake in UCX

The govt has given nod to the Oman Investment Fund (OIF) to buy five per cent stake in the UCX, a national level commodity exchange in the country.

Government to rope in person from India Inc for NHAI CEO post

Govt has permitted CEOs pvt & public sector infra cos with a net worth of Rs 2,000 crore or more to submit their applications.

Sugar production till mid-January up by 17%

Sugar industry has produced 104.5 lakh tons of sugar upto January 15, 2012 in the current sugar season, which is around 17 lakh tons more than previous year.

Analysis: India's chronic electricity shortage cripples growth

Despite having the world's fifth-largest coal reserves and some oil and gas, India's economic growth is stifled by the nation's inability to generate enough electricity, according to The Economist. "If the test is avoiding a national catastrophe, India's power

sector will pass it," the magazine noted. "But if it is delivering the infrastructure that can allow the economy to grow at close to a double-digit pace and industrialize rapidly, India is failing." http://www.economist.com/node/21543138

Technology News –

Apple's fiscal Q1 profit shot up 118%

Apple's profit in its fiscal first quarter surged to a record $13.06 billion, or $13.87 a share, a 118% increase compared with the same period the previous year. Analysts surveyed by Thomson Reuters expected earnings of $10.07 a share. The iPhone once again drove sales. Apple Inc again surpasses Exxon to become most valuable company. Apple CEO Tim Cook has a problem, a $98 billion problem.

Internet penetration can help raise GDP: ICRIER report

NEW DELHI: A 10 per cent increase in internet penetration in India can increase the gross domestic product (GDP) by 1.08 per cent, says a report released Thursday by the Indian Council for Research on International Economic Relations (ICRIER).

Facebook to file IPO documents as soon as Wednesday - WSJ

REUTERS - Facebook plans to file documents as early as Wednesday for a highly anticipated IPO that will value the world's largest social network at between $75 billion and $100 billion, the Wall Street Journal cited unidentified sources as saying on Friday.

Apple overtakes Samsung in Q4 smartphone sales - report

SEOUL - Apple Inc overtook Samsung Electronics Co Ltd as the world's top smartphone maker in the fourth quarter of last year, with the South Korean company selling about half a million fewer smartphones than its rival, research firm Strategy Analytics said on Friday.

Smartphones drive record Samsung profit; capex raised to $22 bln

SEOUL - Samsung Electronics Co posted a record $4.7 billion quarterly operating profit, driven by booming smartphone sales, and will spend $22 billion this year to boost its production of chips and flat screens to further pull ahead of smaller rivals.

World Economic Forum Davos 2012: Mahindra Satyam, Tech Mahindra merger by 2012-end

Mahindra group's two technology ventures, Tech Mahindra and Mahindra Satyam, would be merged by the end of this year, a senior group official said here.

iGate Patni to invest $120 mn for expanding India facilities

IT company iGate Patni said it has got approval for expanding its facilities in Pune, Mumbai and Bangalore at an investment of $120 million.

BPO business gives IT majors Infosys, Wipro and HCL tough time in Q3

This slowdown reflected in the third quarter BPO numbers of IT majors, which saw revenues slacken due to project delays, fewer deal signings.

Indian enterprise IT spending will grow 10.3% in 2012: Gartner

Indian enterprise IT spending across all industry markets is forecast to surpass $ 39 billion in 2012, a 10.3% increase from the previous calendar year figure of $ 36 billion, says Gartner Inc.

Wipro ties up with Oracle to offer cloud-based HCM modules

Wipro Technologies announced the launch of 'Wipro SprintHR', a cloud-based platform offering Oracle Fusion Human Capital Management modules.

Europe opening up to Indian IT services

Infosys added 14 new clients in Europe of which two were in the $500-mn bracket and these were the largest deals the company won in the quarter.

Japan's NTT Communications buys 74% in Netmagic for Rs 900 crore

NTT Communications, a part of the Nippon Telegraph and Telephone group, will pay 10 billion yen for a 74% stake in Netmagic

Nomura acquires Indian software firm Anshin Software

Nomura Research Institute has acquired IT consultant Anshin Software (Anshinsoft) as part of efforts to expand global sales of its computer systems for financial transactions.

Amazon spending spree may extend well into 2012

SAN FRANCISCO - Amazon.com Inc is expected to barely make a profit in the crucial fourth quarter and 2012 might not be much better as the largest Internet retailer keeps spending on new ventures, testing the patience of investors.

Aakash tablet: Mumbai University recieves 25k bookings

The University of Mumbai has so far received around 25,000 requests for the low-cost computing device Aakash tablets.

Zynga looking to build viable business outside of Facebook for more profitability

With Facebook imposing a 30% tax on money made on its site, it is imperative for David Ko to drive Zynga's users to other platforms.