Companies & Sectors
Jet Airways loses another CEO in just seven months

Gary Kenneth Toomey is the second CEO after Nikos Kardasis to leave Jet Airways within seven months. Ravishankar Gopalakrishnan, has been appointed as 'acting chief executive officer' of the carrier

Naresh Goyal promoted Jet Airways has lost another chief executive within a span of just seven months. In an unexpected move, Gary Kenneth Toomey, the CEO of the carrier on Thursday announced his immediate departure. Toomey was appointed only last June on a three-year contract after the sudden departure of Jet Airways' then CEO Nikos Kardassis.


In a regulatory filing, Jet Airways said, "Gary Kenneth Toomey, chief executive of the company has resigned with immediate effect. Ravishankar Gopalakrishnan, chief financial officer of the carrier, will officiate as the 'acting chief executive officer' till the board appoints a new chief."


It is, however, not yet known as to what led to the sudden exit of Toomey. Prior to joining Jet, Toomey, an Australian national, had served as president and chief executive of Air New Zealand Group and CEO of Airlines PNG in Papua New Guinea.


Toomey was made the chief executive after the then CEO Nikos Kardassis quit the Naresh Goyal-promoted carrier over some alleged differences with Goyal over the stake sale to the Gulf carrier Etihad.


Kardassis' resignation was announced immediately after Jet agreed to sell 24% stake for Rs2,058 crore to Etihad last April. The deal was finally concluded last November, though it has been challenged in the apex court.


Sensex, Nifty looking tired: Thursday closing report

The Nifty has to manage to stay above 6305 for the upmove to continue

With the positive closing of the US indices yesterday, the indices back home opened much higher and hit the days high immediately. The Sensex opened at 21,367 and hit the high of 21,379 its highest since 9 December 2013. Nifty opened at 6,341 and hit a high of 6,347. The strong opening soon lost its fizz and started moving down. The Sensex hit a low 21,200 and closed at 21,265 (down 24 points or 0.11%) while the Nifty hit  a low of 6,300 and closed at 6,319 (down 2 points or 0.03%). The NSE recorded a volume of 54.39 core shares. Over the short-term, the four-day old move seems to have matured and the indices would give up some gains. The first support is at 6300 for Nifty and the second support is at 6280. A fall below 6233 would mean a deeper decline.

Among the other indices on the NSE the top five gainers were Metal (1.84%); Commodities (0.71%); IT (0.61%); Realty (0.52%) and PSE (0.27%) while the top five losers were Consumption (1.07%); Infra (1.03%); Nifty Junior (0.96%); Pharma (0.92%) and FMCG (0.85%).


Of the 50 stocks on the Nifty, 27 ended in the green. The top five gainers were HCL Technologies (4.63%); Coal India (2.52%); UltraTech Cement (2.45%); Hindalco (2.03%) and Wipro (1.75%). The top five losers were Bharti Airtel (4.96%); Tata Motors (2.05%); Sun Pharma (1.49%); ONGC (1.49%) and Ranbaxy (1.48%).


Of the 1,518 companies on the NSE, 558 closed in the green, 883 closed in the red while 77 closed flat.


The Reserve Bank of India on Wednesday, 15 January 2014, announced new rules for setting incremental provisioning and capital requirements for bank exposures to entities with unhedged foreign currency exposures. The provisioning rule requirements will be calculated as per the ratio of likely loss due to foreign exchange movement to a company's earnings before interest and depreciation (EBID), the RBI circular said on Wednesday, 15 January 2014.


After World Bank raised its global growth forecasts, the International Monetary Fund sees global growth to pick up this year. Though deflation is a "rising risk" as long as economic growth stays below what policy-makers believe is optimal. IMF Managing Director Christine Lagarde said that momentum in the world economy in the second half of last year should continue in 2014. The Washington-based fund plans to raise its forecast for global growth when it releases a report later this month.


Economic recovery in India will be slow and will come in the second half of 2014, Moody's Investors Service said today, adding that this will be possible only if the global expansion rises. There is another rider in Moody's assessment. It said the outcome of general elections due in April-May can affect India's growth. Moody's has assigned the lowest investment grade to India. It said the outlook on ratings will remain stable in south Asia.


The Federal Reserve said "moderate" growth across most of the US last month was buoyed by gains in holiday spending by consumers, an improving labor market and strength in manufacturing.


The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December.


The US producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier. Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.


Asian indices had a mixed performance. Hang Seng was the top performer which rose 0.37% while Jakarta Composite was the top loser which fell 0.66%.


European indices had a mixed performance while US Futures were trading flat.


FDA declines to decide whether foods with GMOs are ‘natural’

The US FDA does not have a formal definition of ‘natural’ with respect to foods other than to state that the term on food labels means the product must not contain anything artificial or synthetic

The US Food and Drug Administration (FDA) have declined a request made by three different federal judges to determine whether food products containing ingredients with genetically modified organisms (GMOs) may be labelled “natural.”

In a letter to the judges who are presiding over separate class actions where food manufacturers are being sued for using the term, Leslie Kux, assistant commissioner for policy at the FDA, said that if the agency was going to revoke or amend its current policy it would “likely embark on a public process” instead.

Currently, the FDA does not have a formal definition of “natural” with respect to foods other than to state that the term on food labels means the product must not contain anything artificial or synthetic.

The letter sent Jan. 6 also notes that if the FDA was to reconsider its policy on defining “natural,” it would have to look at many issues other than just whether the foods include GMOs. The agency, for example, would have to consider an array of modern food production technologies, such as animal husbandry and use of growth promotion drugs. It would also have to consider food-processing methods, such as irradiation, as well as First Amendment issues.

Kux also wrote that the FDA has to prioritize food safety and health issues, which occupy most of the limited FDA resources on food matters at this time.

Companies have come under increasing pressure in recent years to be more transparent about whether GMOs are in foods. In June, Connecticut became the first state to require food manufacturers to label foods that contain GMOS (with some caveats, though). Other states are reviewing similar legislation. Consumers are also turning to class action lawsuits and putting pressure on companies directly through social media to take out genetically modified ingredients or label the foods as having them.

Still, if you see the terms “natural” or “all natural” or “100 percent natural” on the front label of a product, you’ll want to check the ingredients on the back label to decide for yourself. More information about the term “natural” can be found here.





3 years ago

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