UPDATE 1-RESEARCH ALERT-Credit Suisse upgrades Kuwait’s Zain

* Upgrades Zain post African assets disposal

* Says potential upside from further asset sales possible

July 5 (Reuters) – Credit Suisse upgraded Kuwaiti telecoms firm Zain (ZAIN.KW) by two notches to “outperform,” and said the market underestimates the strength of cash generation in the company’s Middle Eastern assets and potential for substantially lower group overheads post the Africa disposal.

The brokerage, which previously had an “underperform,” rating on the stock, also raised its share-price target to 1.4 dinars from 0.9 dinars.

Last month, Bharti Airtel Ltd (BRTI.BO) completed its $9 billion acquisition of the African operations from Zain in a deal that makes the Indian firm the world’s fifth biggest cellphone company by subscribers. [nSGE65802V]

“Free of financial drag and organisational overstretch in Africa, we see Zain as stronger, more clearly focused and with a newly shareholder-friendly emphasis on cash distribution,” the brokerage said. Zain’s African exit signals the possibility of wider retrenchment given shareholder focus on cash returns, Credit Suisse said, adding that it expects potential upside from further asset sales.

The brokerage said Zain could pay a 0.35 dinars-per-share 2010 dividend and still generate at least 0.1 dinars-per-share of underlying earnings.

“We expect sporadic news reports on possible M&A interest in Zain and potential dividend payments to continue,” it said.

Shares of the company were up 2 percent at 1.1 dinars at 0855 GMT.

(Reporting by Mary Meyase in Bangalore; Editing by Maju Samuel)

((mary.meyase@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mary.meyase.reuters.com@reuters.net)) Keywords: ZAIN/RESEARCH CRESITSUISSE

(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nSGE6640BD

RPT-UPDATE 2-Moody’s puts Spain top rating on review for cut

MADRID/NEW YORK, June 30 (Reuters) – Moody’s Investors Service said on Wednesday it is reviewing Spain’s ratings and may lower them by as much as two levels due to sliding growth expectations and mounting fiscal challenges.

The rating’s agency, the only major agency that still maintains a top rating for Spain, said it was conducting a three-month review of the country’s Aaa local and foreign currency government bond ratings.

The rating agency also cited concerns over the impact of rising funding costs over the medium term.

“If at the conclusion of the review, Spain’s ratings are lowered, it would most likely be by one, or at most two, notches,” Moody’s said.

Spain has been the target of intense speculation in sovereign debt markets as the next country in the euro zone to need European Union help after Greece, though the government has firmly denied it had any problem meeting financing obligations.

Moody’s senior risk analyst Kathrin Muehlbronner said the review should not be taken out of context and Spain remained a highly rated country.

“The contagion has been so dramatic in the markets in the last few months people forget really what a gulf there is between Spain and Greece … Spain is a very highly credit worthy country,” Muehlbronner said in a telephone interview with Reuters following the announcement.

“The policies that the government is now proposing to pursue should eventually reach in to the conscience of the market … but the issue where the deficit and debt has increased and we’re looking at a situation that is somewhat more difficult to unwind than it was before.”

Spain’s had a public deficit of 11.2 percent of gross domestic product in 2009 while the debt-to-GDP ratio stands at around 55 percent, which Moody’s said it expects it to rise to 80 percent of GDP by 2014.

The government announced in early June a 15 billion-euro ($18.35 billion) savings plan to help cut the deficit to 3 percent of GDP by 2013, though the rating’s agency said low growth forecasts would make this difficult.

Moody’s sees Spain’s average growth at 1 percent over the 2010-2014 period compared to the government’s projections of around 3 percent by 2013.

“Moody’s believes that more fundamental adjustments to key spending items will be required in order to achieve the government’s budget deficit targets,” said Muehlbronner in a statement.

RISING COSTS

The cost to insure Spain’s debt with credit default swaps had tightened earlier on Wednesday to 260 basis points, or $260,000 per year to insure $10 million in debt for five years, from 273 basis points on Tuesday’s close, according to Markit Intraday.

Spain’s 10-year bono spread against the German bund stood at around 202 basis points late on Wednesday, off a recent high of 238 bps, but well above around 80 bps in April.

The euro slightly pared gains versus the dollar after the Moody’s announcement.

Moody’s said one of the key reasons for the review was concern over the impact of rising funding costs in the medium term as reforms of the labour market, the banking system and the pension system took time to restore investor confidence.

The labour market reform is currently in parliament for review, and Muehlbronner said she hoped legislators would strengthen the bill, which aims to make hiring and firing easier and put more young people to work.

Spain suffers the highest level of unemployment in the euro zone at over 20 percent, while more than 40 percent of those under age 25 available for work are unemployed.

On the banking system restructuring process, which the Bank of Spain said on Tuesday was close to completion, the analyst said she did not think the government would need to recapitalise the banks much more than had been already earmarked.

“We don’t expect that there is a massive extra recapitalisation need for the banks above what the government has stated, and hopefully the stress tests that come out will help calm the markets,” Muehlbronner told Reuters.

The Bank of Spain has said it will publish a stress test for the banks soon.

The consolidation of Spain’s mostly unlisted savings banks could cost as much as 30 billion euros, the government has said, though the current round of bank mergers has tapped the bank restructuring fund for just over 10 billion euros so far.

Investor nerves have also been tested over a Spanish debt redemption hump of 16.2 billion euros by the end of July.

The government claims they will not need to tap the market to meet the repayment, but there are concerns they will struggle to meet payments.

“We don’t see July’s redemption as being a problem,” Moody’s senior analyst Kristin Lindow told Reuters.

Fitch Ratings cut Spain’s credit ratings to AA-plus, the second highest level, from AAA on May 28, saying its economic recovery would be more muted than a government forecast, pushing world equities and the euro lower.

The downgrade followed a cut by Standard & Poor’s in April. (Additional reporting by Walden Siew, John Parry and Karen Brettell)

EURO GOVT-Bunds open higher after Greek downgrade

June 15 (Reuters) – German government bonds opened higher on Tuesday after Moody’s investors service cut Greece’s credit rating to junk late the previous day, refocusing market attention on Europe’s debt problems. Moody’s downgraded Greece four notches to Ba1, citing risks in the euro zone/IMF rescue package for the debt-stricken country. It was the second agency to strip Athens of its investment grade rating after Standard and Poor’s made a similar move in April.

The downgrade was expected to prompt equity investors to book profits after a brisk four-session winning run, sending regional shares lower.

“This puts the focus back on the periphery. There are going to be people who are forced sellers now with two junk ratings,” said a trader.

“The ECB are the only bidder so we would expect them to be quite active today, but the worry now is the contagion into other peripherals and the question being asked is who will be next to be downgraded.”

At 0604 GMT, September Bund futures FGBLU0 were at 128.95, 42 ticks higher from Monday’s settlement, although little changed from levels seen in after-hours trading. Two-year bond yields DE2YT=TWEB were 1.2 basis points lower at 0.488 percent, with 10-year yields DE10YT=TWEB almost 3 basis points lower at 2.60 percent.

With peripheral bonds likely to be under pressure, Ireland will auction up to 1.5 billion euros of 2016 and 2018 government bonds.

Ahead of that, the German ZEW sentiment indicator for June, released at 0900 GMT, is seen slipping to 42.0 versus 45.8 previously.

A little cooling rain, and maybe more today

New Delhi, June 6 — Light rain on Saturday evening cleared the dust haze and brought much respite to the Capital, which was sizzling at 36.6 degrees Celsius. Despite the rain, the Met department has predicted a hotter Sunday, relieved by cloudy skies and more rain. There was a difference of as much as 10 notches between the maximum temperature (36.6 degrees Celsius) and the minimum at 26 degrees Celsius on Saturday, the weatherman said, adding the maximum temperature on Sunday is predicted to be 38 degrees Celsius. But even as the thunder squall followed by rains brought relief to Delhiites, it was so little that the Met office equipment did not even record it. “There was a trace of light rain after 7.30 pm,” said the Met official. The humidity during the day ranged from 52 per cent (maximum) to 35 per cent (minimum).

Although parts of the capital – particularly south and east Delhi – received only light rain, NCR areas like Faridabad and Noida were luckier, getting heavier showers.

Muggy day ahead for Delhiites

New Delhi, May 31 (IANS) The temperatures may have dipped a little, but the humidity level will remain high for some time and Monday is likely to be a muggy day, the weatherman said.

‘The relative humidity level is 65 percent while the minimum is 25 percent, and this will continue for a few more days,’ said an official of the India Meteorological Department (IMD).

‘Delhi will see clear skies today (Monday). No rain or thunderstorms are expected. The weather conditions are likely to remain the same for the next few days,’ the official said.

According to the met department, the minimum temperature Monday was one notch above the average at 26.1 degrees Celsius. On Sunday, the maximum temperature was two notches below average at 39.2 degrees Celsius.

The Royal Showman

He moves at a slower pace these days courtesy of advanced emphysema but Leonard Casley, still puts on a good show.

The self-styled Prince Leonard of Hutt notches 40 years this week since he declared secession from the Commonwealth of Australia of his 7,500 hectare farm north of Geraldton in the Mid West of WA.
It was a bold move brought on by what the amateur lawyer believed were draconian wheat quotas, robbing him of more than 90 percent of a bumper harvest.
“I exercised the international law of titles to form the self-preservation government: if anyone wants to know if we succeeded with the secession, we simply say that we’re still here,” Mr Casley, told ABC TV’s Landline program.
In four decades he estimates a couple of million tourists have visited the Hutt River Principality. These days around 40,000, mostly young backpackers make the trek each year to have their passports stamped and to hear the 84-year-old’s set piece routines.

“Now here’s a very nice map we got recently from Poland, a map of the world and here’s Australia, ” he tells a group of 15 mostly Europeans who’ve arrived in camper vans and a small outback tour bus.

“As you probably know Canberra is the capital, they forgot to put it on. Melbourne, Sydney and Brisbane are very large cities, they forgot to put them on too, but they put Hutt River province on, it’s a very good map.
How many countries have you visited this year?” he asks one of the visitors.
“Three” the young man answers.
“Which ones?”
“Malaysia, New Zealand and Australia.”
“Wrong,” says Leonard Casley.
“It’s four. You’ve visited Hutt River now too.”

Self promotion has been a major factor in the success of the Hutt River Province. It has its own currency and postage stamps, mostly bearing the image of the old prince.

“These are some of the stamps available, ” he says, offering a souvenir pack to his audience.
“I do think this stamp is one of the better ones, a real handsome man in there don’t you think , when I was a little bit younger?”

It’s unclear how much money Hutt River would be making from its young visitors. In the 1970s the tourists were mostly retirees on coach tours and were more likely to spend up on souvenirs. Today’s backpackers appear more conscious of saving their cash for things like food and alcohol.

But according to Leonard Casley , any income earned at Hutt River is tax free and he produces personal returns from the Australian Tax Office as proof. They list his income as zero.
” We are recognised as non-residents of the Commonwealth and no taxes are payable on incomes earned within the principality,” he says.
It’s not possible to verify that claim as the ATO won’t comment on the affairs of individuals.
However, constitutional law expert, Professor George Williams from the University of NSW, says Hutt River’s “citizens” would still be liable.
“No Australian is exempt from paying tax whether they’ve created their own province. It’s clear the law applies equally to everyone and in this case if someone has not paid tax the likely answer they simply don’t have any income that is liable. If they do have income and they’ve failed to pay tax like everyone else they would face penalties, including the possibility of jail,” says Professor Williams.
He says it’s not illegal for any Australian to call their own property whatever they like, even a principality, as long as they don’t break any laws.
“It’s certainly a curiosity. It begs for amusement for some people but as a matter of law it is very clear. You cannot decide to secede from the Australian nation by setting up your own province,” he says.
“I think the authorities are quite wise to let people do what they want in this situation. So long as they continue to obey the rules and the law they should be able to take whatever path they like.”
WA’s Minister for Lands and Regional Development, Brendon Grylls agrees. He says the state has no issue with Hutt River or its ageing monarch.
“Prince Leonard is an enigma, well known across the state,” says Mr Grylls.
“You wouldn’t be able to mention Hutt River Province without anyone knowing. There is nothing on my agenda as Minister for Regional Development or Lands that relates to that except that he’s doing quite well out of the tourism, of attracting people to the province.”

Whether the tourists will keep coming when the province’s founder passes on remains to be seen. Crown Prince Ian, is the oldest of seven children and the designated heir and successor. For now he’s happy running the province’s farming operation, but he reckons he’ll take to the throne with ease.

“Oh no it doesn’t really sort of throw me that much as we’ve been with it right from day one so you’ve sort of grown up with it,” says Ian Casley.

“Quite often we’ll be involved with what’s going on down there with the tourists, yeah, change the old togs, get a bit of something decent on, that sort of thing and yeah, quite often we get down there and try and work with the farming aspect of it and then down the province side as well.”
Prince Leonard says there is a legal framework in place to keep the Principality going indefinitely.
“Well it is a constitution monarchy, it is set up under a constitution and my son Prince Ian is due to take it,” he says.
“There is also a committee of seven, the crown committee, if ever a person is not fit for it then that committee can step in and vote the person out and vote the next one in.”
Sean Murphy’s report on the Hutt River province will air on landline this Sunday on ABC 1 from midday.

Obama’s naked spin doctor in shower tirade

It is a terrifying image transfixing Washington: US president Barack Obama’s bruising enforcer Rahm Emanuel, naked, in a communal shower, berating a congressman over perceived political cowardice.

The legend of Mr Emanuel, revered as a master of the US capital’s dark arts by allies and foes alike, is being further embroidered by a tour-de-force of score settling by resigning Democratic lawmaker Eric Massa.

Mr Massa, a former navy commander and cancer survivor, has given a series of evolving reasons for his departure, and resigned suddenly this week facing harassment allegations from a former male staffer.

Washington is notorious as a town of naked partisanship – but Mr Massa raised eyebrows several notches with his account of Mr Emanuel’s conduct.

In his most colourful parting shot, on a radio show on Sunday he accused the White House chief of staff of cornering him at the locker room of the House of Representatives gym and hammering him for failing to back Mr Obama’s budget.

“Rahm Emanuel is the son of the devil’s spawn,” Mr Massa said. “He is an individual who would sell his mother to get a vote.”

Mr Massa, who is considered a liberal, said he had been standing in the gym “showering, naked as a jaybird, and here comes Rahm Emanuel … poking his finger in my chest, yelling at me”.

“Do you know how awkward it is to have a political argument with a naked man?”

Mr Massa, who formally resigned on Monday, also alleged that he had been pushed out of Congress because he opposed Mr Obama’s signature health care bill, which is struggling to make its way off Capitol Hill.

The White House dismissed the claims by Mr Massa, a one-term congressman from New York, as “crazy allegations”.

“I think this whole story is ridiculous. I think the latest excuse is silly and ridiculous,” White House spokesman Robert Gibbs told ABC America, and accused Mr Massa of giving a string of contradictory reasons for his departure.

Steny Hoyer, the leader of House Democrats, also dismissed Mr Massa’s claim that he was ousted for opposing Mr Obama’s health care reform as “absurd” and “absolutely ridiculous”.

Mr Massa’s comments have already been highlighted by conservative commentators accusing the Obama administration and Democrats in Congress of mounting a bare-knuckle political operation to ram healthcare through.

- AFP

It’s scorcher in Delhi, Met office says mercury to rise

New Delhi, April 20 (IANS) It is official. The sudden rise in day temperature coupled with dusty winds that has hit the national capital over the past few days is a heat wave condition, the meteorological department declared Monday.

The maximum temperature touched a high of 41.7 degrees Celsius, six notches above what is normal for this time of the year, while the minimum temperature settled at 26.1 degrees Celsius, five degrees above normal.

‘The day temperature has increased five to six degrees above normal following hot westerly winds blowing over Delhi. We have declared heat wave condition here,’ a duty officer at the meteorological office told IANS.

People could be seen standing under the shade of trees or buildings to escape the scorching sun as most of the roads in the national capital wore a deserted look. People were seen buying water and cold drinks around offices and in markets to quaffe thirst and beat the heat.

‘In 2006 and 2007 we had the maximum temperature of 42 degrees Celsius. It was only in April 1942 when the mercury had climbed to 45.6 degrees Celsius in the national capital.’

‘In May and June, we expect the mercury to cross 45 degrees Celsius,’ the official added, ruling out the possibility of rains in the near future.

Residents of Delhi have been reeling under the summer heat from the last three days with day temperature rising several degrees above normal.

‘The heat wave is likely to prevail for two to three days and the temperature is likely to rise further,’ the official said.

The Met Office has forecast that the maximum temperature will cross 42 degrees Celsius Tuesday.

‘My skin was burning as I drove to my office around noon,’ said Aakash Aggarwal, a marketing executive.

Asha Sharma, a housewife said: ‘There was no respite from the heat despite putting on the water cooler and fan. I was sweating so much that I bathed five times but it wasn’t of much use.’

Veteran Perry aims to bury Valhalla pain at Augusta

AUGUSTA, Georgia (Reuters) – Almost 13 years after squandering a chance to clinch his first major title, American Kenny Perry has the opportunity to become the oldest winner of a grand slam crown at the U.S. Masters.

The 48-year-old from Kentucky overcame a nervy start to shoot a two-under-par 70 in Saturday’s third round and share the 54-hole lead with Angel Cabrera of Argentina.

A 13-times champion on the PGA Tour where he is a highly popular figure, Perry knows his standing in the game will rise several notches should he go on to triumph on Sunday.

“We’ve got 18 holes to go and I’m in a great spot,” Perry told reporters after finishing level with Cabrera at 11-under 205.

“I’ve got something that I can achieve that will move me up the totem pole on the PGA Tour. I go from a good player to maybe people start thinking I’m a better player than just a good player.

“I’m never thinking I’m a superstar but most people who talk about me say I’m a nice guy and I’m a good player, and that’s about all you hear. Maybe things will change.”

Perry will never forget the bitter memories of his playoff loss to fellow American Mark Brooks at the 1996 PGA Championship at a sun-baked Valhalla where he bogeyed the 72nd hole.

“You know, that stings,” he said. “I’ve carried that a long time. I wish I could redo that one over. The 72nd hole is the one that cost me that tournament, not the playoff.”

Taken to task for being in the television broadcast booth instead of warming up on the practice range for the Valhalla playoff, Perry said the heat had been a significant factor.

PUMPED UP

“People criticize me but it was 110 degrees, it smoking hot out there,” he recalled. “I hit the best tee shot I could have hit but it just went further than I normally could hit it. I just was pumped up on adrenaline.”

Perry won his most recent PGA Tour title at the Phoenix Open in February when he edged out compatriot Charley Hoffman by sinking a 22-foot birdie putt at the third extra hole.

It was the 10th time in 17 attempts on the U.S. circuit he has triumphed after holding at least a share of the 54-hole lead, and the seventh victory in his last eight.

“I know I can play,” Perry said. “I’ve been there, I’ve done it and I’ve won some big tournaments. But I’ve never been in this kind of situation that often (at a major).”

Asked what a maiden major victory at the age of 48 years eight months and two days would mean to him, Perry replied: “I’m not going to answer that until it actually happens.

“I just don’t want to go there because I’ve got to stay in the moment. I’ve got to stay ready.

“This golf course is very difficult and very demanding and any other tournament, whenever I’ve looked into the future and thought about winning, going in on Sunday I’ve not had much luck. I’ve not had much success.”

Perry is bidding to become golf’s oldest major champion by eclipsing American Julius Boros, who won the 1968 PGA Championship at 48 years four months and 18 days.

(Editing by Alastair Himmer)

RPT-UPDATE 1-S and P cuts ratings on Chrysler debt

(Repeats story transmitted earlier on Friday)

* S and P cuts ratings on debt due in 2013, 2014

* Says Chrysler would likely dissolve in event of bankruptcy

NEW YORK, April 10 (Reuters) – Standard and Poor’s Rating Services on Friday lowered its debt ratings on Chrysler CBS.UL loans due in 2013 and 2014, citing a lower potential recovery by debtors in the event of payment defaults by the carmaker.

Standard and Poor’s said it lowered by two notches its issue-level ratings on Chrysler’s senior secured first-lien term loan due 2013 to ‘CC’ from ‘CCC’. S and P said its downgrade indicates lenders can expect an average 30 to 50 percent recovery in the event of a payment default.

The ratings agency said its corporate credit rating was left unchanged, at ‘CC’, reflecting no change in its view of the likelihood of default by Chrysler from either a bankruptcy or a distressed debt exchange.

Standard and Poor’s lowered its issue rating on the carmaker’s senior secured second-lien term loan due 2014 by one notch to ‘C’ from ‘CC’, suggesting lenders can expect a negligible to a 10 percent recovery if a default occurs.

“The lowering of our issue ratings reflects lower recovery estimates, given our current view that Chrysler would be unlikely to emerge from bankruptcy as one reorganized entity,” Standard and Poor’s recovery analyst Greg Maddock said in a release.

“If Chrysler goes into bankruptcy, I would expect it to go into liquidation — that its assets would be sold in whole or in part,” Maddock said in an interview.

“Instead of being reorganized, there would be no carmaker after bankruptcy,” he said. (Reporting by Ransdell Pierson; Editing by John Picinich)

Snowfall in Jammu and Kashmir, Himachal, Uttarkhand intensifies cold in north India

Srinagar, Jan.4 (ANI): Moderate to heavy snowfall in Jammu and Kashmir, Himachal Pradesh and Uttarakhand have intensified the cold wave conditions in north India on Sunday.

About one-and-a-half feet of snow was recorded in the high altitude areas of Kashmir Valley including Baltal and Drass on Srinagar-Leh national highway since Saturday evening.

The Gulmarg ski resort received fresh snow of four to five feet.

In Jammu, three people have died of severe cold in Bharat, Gangyal and Gandhi Nagar localities, police said. The minimum temperature recorded in Sri Nagar was 0.2 degrees Celsius.

Meanwhile, the famous Sri Vaishno Devi temple, located in Trikuta hills near Jammu, has experienced its first snowfall of the season. However, the yatra to

the shrine went on uninterrupted.

On Saturday, Shimla”s wait for snow ended during night while rains lashed the lower areas of Himachal Pradesh, sending the mercury down by several notches.

With three persons in Jammu and Kashmir and at least 12 persons succumbing to cold in Uttar Pradesh have taken the death toll to 46.

The weather conditions promptied closure of schools even as thick fog disrupted road, train and air traffic, giving commuters a harrowing time.

Poor visibility due to fog caused a goods train to hit a stationary train in Kanpur on Sunday morning. It disrupted traffic on the Delhi-Howrah stretch.(ANI)