HTC sues Citi in Taiwan after share price fall

HTC Corp , the world's No.4 smartphone maker, has filed a criminal complaint against Citigroup Inc's Taiwan unit, alleging the bank published false information that led to a fall in HTC's share price, a Taiwan prosecutor said on Tuesday.

HTC, whose rapid rise in the cut-throat handset industry had made it an investor darling until early this year, has lost much of its lustre in recent weeks as its models struggle to compete with Apple Inc's iPhone and Samsung Electronics Co Ltd's Galaxy range.

Its shares have tumbled from a high of more than TUSD 1,200 in April to as low as TUSD 403 earlier this month. HTC has twice cut its earnings forecast recently, stoking investor concern over future profits.

"HTC submitted its case in August and we have been in the process of handling it," said Huang Mou-hsin, deputy chief prosecutor at the Taipei Prosecution Office. "HTC sued Citi Global Markets for violating stock transaction law," he said, declining to elaborate further.

HTC declined to confirm or deny the action, saying it did not comment on legal cases. Citi Global Markets Taiwan officials had no immediate comment.

Taiwan newspapers reported on Tuesday that HTC and Citi had run out of time for a settlement, so prosecutors had stepped in.

"HTC is using the lawsuit as a gesture to say its outlook is not as bad as the research report indicated and to ask foreign analysts to keep quiet or at least to stay a bit low-profile," said K.H. Lin, vice president at the fund unit of Yuanta Financial Holding Co Ltd.

"For long-term investors, however, HTC is probably not a good buy. We are very worried about the future of HTC due to its patent war with Apple and others. The lack of a powerful pool of patents is the most vulnerable part for HTC and other Taiwan companies."

HTC is fighting legal battles on several fronts and faces a crucial ruling in the United States on Wednesday in a patent case with arch-rival Apple that could result in a ban on HTC's handsets being sold in the United States.

The suit is seen as a proxy for the larger fight for market share between Google Inc's Android cellphones and tablets, many of which HTC makes, and Apple's product line.

Samsung, which also makes Android products, is locked in similar court fights with Apple.

The International Trade Commission, a US trade panel that investigates patent infringement involving imported goods, will deliver its ruling on Wednesday.

HTC shares were up 2.5USD  in early Tuesday trading at TUSD 426.50.

"The rise is because the current share price is too low and valuations are way under," said KGI Securities analyst Richard Ko in Taipei. "The price already reflects the risk of future court judgements."

India stares at economic slowdown, job cuts

The fear of an economic slowdown has turned to be a real one, as for the first time in recent months, India's industrial economy has actually shrunk, which may lead to job cuts, high inflation and more bearish stock markets.

In fact, the Confederation of Indian Industry (CII) has warned of job losses and appealed for urgent measures to tackle the slowdown after the Index of Industrial Production fallen to minus 5.1% in October.

The CII further said a lack of investments can act as a drag on growth and that a continued decline in the mining sector can have consequences on livelihoods. Economic experts say the manufacturing sector is likely to see job losses and warned that inflation will continue to stay high even as the stock markets may continue to be in bear grip.

The industrial output was 1.9% in the month of September and the fall comes after a sustained slowdown over the past few months, led by a steep fall in production of almost sectors, particularly manufacturing, mining and capital goods.

The biggest fall has come in the capital goods as well as in the manufacturing sector and mining. The capital goods growth is at minus 25% while manufacturing activity has declined to minus 6% from 2.1% a month ago.

Factory output, as measured by the Index of Industrial Production (IIP), had grown by 11.3% in October 2010.

The negative growth in factory output pulled down the BSE Sensex by 343 points or 1.12% on Monday to below the 16,000 level after two weeks.

The Sensex, which had lost 664 points in the past two trading sessions, fell further by 343.11 points to end the day at 15,870.35, closing below the 16k level after November 25.

The BSE 30-share benchmark has lost over 1,000 points in the last three sessions, eroding investor wealth by nearly Rs 3 lakh crore.

The broad-based National Stock Exchange index Nifty has also lost 102.10 points or 2.10% to 4,764.60 on Monday.

Though, Prime Minister's Economic Advisory Council Advisor C Rangarajan hoped that the GDP growth will still be between 7-7.5%, it looks hard to achieve due to lack of corrective measures on the part of the UPA Government.

With the headline inflation remained above the 9%-mark since December 2010, the Reserve Bank has hiked interest rates 13 times since March, 2010, to tame inflation.

India Inc had attributed the slowdown to rising interest rates, which have led to an increase in the cost of borrowing, thus hindering fresh investment.

But for long, the political turmoil has prevented the scam-hit UPA Government from taking any major policy decisions.

Some leading industrialists at the annual Indian summit of World Economic Forum has already alleged that the Central Government has been suffering from policy paralysis.

Moreover, a combined attack by the Opposition and some its own allies forced the Government to hold back its decision on allowing FDI in retail sector, which put a big question mark on the ability of the Government to go for any further economic reforms.

As a result, it seems the crisis-hit UPA Government is in no position to infuse the confidence that needed to boost the falling economy, which is already facing turbulence due to gloomy global economic scenario.

Lokpal: Govt may offer to include PM, Group C

A day after Anna Hazare's fast, the government as part of its counter Anna strategy on the Lokpal Bill is expected to offer to include the Prime Minister and Group C employees in its ambit at the all-party meet on Wednesday.

According to sources, the bill will be tabled in Parliament next week.

This indication has come after the Congress, isolated by the Opposition, received support from its allies.

On Tuesday, the Cabinet is also slated to take up judicial accountability bill, whistle blowers protection bill and citizens grievance redressal bill.

The Cabinet will also take up the feel-good Foods Security Bill, hoping to woo voters just as farm loan waiver did.

This will be followed by a meeting between the UPA and its allies. Unlike the Lokpal draft committee, this time the Congress wants to keep allies on board.

And on Wednesday there will be an all-party meet. Sources say that the final Lokpal will include Prime Minister and Group C.

The government is likely to propose that the Prime Minister could be brought under the ambit of Lokpal, however, with certain safeguards.

Further, on the issue of bringing CBI investigations under the ambit of Lokpal, the government may propose that though it could not be done, the Lokpal may however be kept in the know of the probe into corruption-related cases.

Though the Congress is upset with the Team Anna over their attack on party general secretary Rahul Gandhi, it is also aware that a strong opposition could nix the chance of easy passage of Lokpal Bill. And in that case, it may be difficult to stop the agitation by Anna Hazare on December 27.

Sehwag becomes 2nd batsman to slam 200 in ODIs

Indore: Virender Sehwag, captaining India in the absence of the rested MS Dhoni, has become only the second batsman in the world to breach the 200-mark in one-day cricket. The first was the inimitable Sachin Tendulkar, who scored a double ton last year.

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Sehwag slammed his 200 in the fourth ODI against the West Indies at Indore. He got to the 200 in 140 balls; the first 100 came in only 69 balls. He also crossed 8,000 ODI runs during the knock.

This is Sehwag's 15th ODI century and answers all the critics that have been blaming the top-order's indifferent form and Sehwag's bad captaincy for India's 16-run loss to the Windies in the 3rd ODI at Ahmedabad.

Sachin Tendulkar got his 200 against South Africa at Gwalior in February 2010. Tendulkar had scored 200 not out off 147 balls to take India to 401/3 in that game.

Sehwag's feat, however, would not have been possible without a little help from West Indies skipper Darren Sammy, who dropped the Delhi batsman off a Ravi Rampaul delivery in the 38th over when Sehwag was batting on 170. But then what is a great Sehwag innings without the adventure?

Sehwag blitz against West Indies

4th ODI: Congratulate Sehwag for his blitz against West Indies