Japan to boost Economy!

Japan, the technically sound nation, prepared to unveil details of a $150 billion plan to boost its economy, but weak corporate earnings and trade flows raised fresh doubts about growth revival. World stocks fell for a third straight day, while safe-haven government bonds gained. Governments and central banks around the world have been pumping money into the financial system and wider economy to try to free up frozen credit markets, rekindle spending and restore shattered investor sentiment.

Aluminium producer Alcoa Inc kicked off the latest U.S. earnings season with a second consecutive quarterly loss, while data from Japan, Germany and France showed a further weakening in global trade as recession takes hold. Policymakers from the Federal Reserve and European Central Bank also struck a cautious tone, dampening recent optimism that a $1.1 trillion stimulus package agreed by world leaders earlier this month might lead to a quicker economic recovery.

Japan is expected to detail an extra budget for the year to March 2010, including spending of $150 billion aimed at reviving growth. But the jury is out on how effective the spending will be.
The U.S. Federal Reserve's efforts to boost consumer lending suffered a setback as investors requested just $1.7 billion in loans to buy asset-backed securities, barely a third of the amount sought in the March debut of the plan.

Stock markets have rallied over the past month on hopes all the stimulus measures will bear fruit, but there have been few signs of improvements in company results so far.After Alcoa's gloomy update, Japanese electronics maker Sharp doubled it loss estimate for the year just ended, while German carmaker Daimler forecast a "considerable" drop in revenue this year and a big first-quarter loss.The downturn has pushed some household names to the brink.

Some analysts and policymakers fear the failure of a company as big as GM could have dire repercussions for the broader economy, after state bailouts of banks have shattered confidence in the financial system.European Central Bank executive board member Juergen Stark warned this confidence would take time to return.

Virgin Mobiles --> Pink Slip Plan

Virgin Mobile announced a Pink Slip Protection plan that waives as many as three months of wireless phone charges if a customer is laid off. Many companies have been taking the economy into account with their advertising messages by telling consumers they feel their pain.

Virgin Mobile will pay as much as $90 a month for three months. It's only for monthly plans without annual contracts, you must be employed to enroll and you must be on a monthly plan for at least two months before claiming benefits.The wireless carrier is offering the Pink Slip plan in part because unemployment issues tend to affect its prepaid base more than its customers on annual plans.

Virgin Mobile also rolled out an unlimited text and messaging plan for $19.99. Customers can purchase that plan and pay 10 cents a minute for additional voice calls.Payments of $90 a month are not as significant as the hundreds of dollars a month the car companies might waive for people who get laid off. But the message Virgin Mobile is sending will resonate with consumers.

Bid for Satyam?

Satyam Computer Systems is one of the hot talk topics of this day. Indian and foreign firms bid to take on Satyam..The outsourcing company said it had received an adequate response but did not name or number the bidders.Two investment banking sources told Reuters some eight potential suitors had registered to bid for a 51 percent stake.

There have been at least 5-8 bids. We expect a much, much smaller number to proceed to the next stage of putting in a financial bid.Indian engineering firm Larsen & Toubro, IT services firm Tech Mahindra, diversified Spice Group and U.S. outsourcer iGate Corp all said they had registered as potential bidders.Bidders must submit a detailed expression of interest and have available at least 15 billion rupees.

Satyam Chairman Kiran Karnik told Reuters the registration process did not require companies to meet any conditions.The names could include PE firms or law firms which are representing somebody else. At this stage we have not asked them to divulge who their partner is or who they are. So at this stage, frankly you have no idea.

Satyam looks an attractive takeover target given the massive plunge in its share price and a long list of marquee clients, including General Electric and Qantas Airways.But bidders face a tough job in valuing the company due to uncertainty about its accounts and liabilities.Analysts said it was unlikely suitors would bis aggressively as the company's accounts had yet to be restated and there was no clarity about legal liabilities arising from class action lawsuits filed in the United States.