Economic revival may take more time: RBI

MUMBAI, Jan 28: The Reserve Bank of India (RBI) has said that a sustained commitment to contain the fiscal and current account deficits was needed to create room for monetary easing, a day before a policy review that is widely expected to deliver the first interest rate cut in nine months. While measures taken by the government to bring the fiscal deficit within a targeted 5.3 per cent of GDP have reduced near term risks, cuts in politically sensitive subsidies were needed for sustainable fiscal consolidation, the Reserve Bank of India said in a quarterly report on the economy released Monday. "Monetary policy needs to continue to be calibrated in addressing growth risks as inflation remains above the Reserve Bank's comfort level and macro economic risks from twin deficits persists," the report warned. "Fiscal risks have somewhat moderated in 2012/13, but a sustained commitment to fiscal consolidation is needed to generate monetary space," it said.

— Economic Times

Daimler, Ford, Nissan ink deal on fuel cell cars

NABERN/GERMANY, Jan 28: Three global car makers joined forces Monday to develop a line of affordable fuel cell cars for sale starting in 2017 in what could be the first major advance for the promising zero-emission technology. Daimler, Ford and Nissan said the new alliance sends a clear signal to suppliers, policymakers and the industry to encourage the further development of hydrogen infrastructure worldwide. "We believe we were never as close to reaching a breakthrough in fuel cell cars as today thanks to this partnership," Daimler research and development chief Thomas Weber said Monday.

— Economic Times

US durable goods orders jump on

aircraft sales

WASHINGTON, Jan 28: New US orders for durable manufactured goods surged higher in December, led by a jump in commercial aircraft orders, government data released Monday showed. Orders for durable goods -- long-lasting products such as vehicles, computers and machinery -- rose to $230.7 billion, up 4.6 per cent from November, the Commerce Department said. It was the seventh increase in the last eight months, following a 0.7 per cent gain in November, and well above the 1.6 per cent rise expected by analysts. Excluding transportation equipment orders, which can be volatile month-over-month, durable goods orders rose 1.3 per cent. Transportation equipment orders leaped 11.9 per cent after two consecutive months of declines, almost entirely due to commercial aircraft and parts orders, up 10.1 per cent. Nondefense capital goods orders excluding aircraft, or core capital goods orders, an indicator of future capital spending, rose 0.2 per cent. Shipments climbed 1.3 per cent. — AFP