Oil at 18-month low on weaker demand outlook

Oil fell to an 18-month low below $89 a barrel on Friday and was heading for its biggest

Weekly loss in about a year as reports suggesting slowing economic growth around the globe signaled weaker demand, while supply is ample. A downgrade of the credit ratings of 15 of the world's biggest banks by ratings agency Moody’s to reflect the risk of losses they face from volatile capital markets activities also weighed on commodities and equities.

"Manufacturing is a key indicator of oil demand, and based on the data coming out of the United States it doesn't look good, even though prices have been coming off," said Ben Le Brun, a Sydney-based market analyst at Options press. "Prices are a little bit higher this morning, because of some short-covering by bargain price hunters."

Brent crude was up 18 cents to $89.41 barrel by 0810 GMT, after faling to $88.49, the

Lowest since December 2010, earlier in the session. U.S. crude was down 14 cents at $78.06, after a 4 percent drop on Thursday. The price of Brent has fallen more than 8 percent this week, in its biggest weekly drop since the middle of last year. It has dropped 30 percent from its 2012 high reached in March of $128.40. Reports this week showed U.S. factory output grew at its slowest pace in 11 months in June, business activity across the euro zone shrank for a fifth straight month and Chinese

manufacturing contracted for an eighth month running.

The leaders of Germany, France, Italy and Spain will meet in Rome later in the day in an

Attempt to restore confidence in the euro zone ahead of an EU summit in Brussels next week.Friday's meeting will look for ways to achieve fiscal and banking union in the euro zone And, more urgently, it may also be the occasion for Spain to formally request assistance of up to 100 billion euros for its struggling banks. As the economic outlook darkens, oil supply is ample. The Organization of the Petroleum Exporting Countries is pumping about 1.6 million barrels per day (bpd) more than the demand for its oil and its own supply target, according to OPEC figures.

RCap gets SEBI, Singapore approval for AMC stake sale

Reliance Capital today said it has got approval from the Indian market regulator SEBI and the Monetary Authority of Singapore (MAS) for Rs 1,450-crore stake sale in its mutual fund business unit to Japan's Nippon Life.

Anil Ambani-led Reliance Group's financial services arm Reliance Capital (RCAP is selling 26% stake in Reliance Capital Asset Management Co (RCAM), which runs India's most profitable mutual fund, to the Japanese firm.

In a statement issued today, Reliance Cap said that it has received approval from Sebi, as also MAS, for the deal.

RCAP has operations in Singapore as well, because of which the transaction required MAS approval.

Commenting on the development, Reliance Capital CEO Sam Ghosh said: "We are delighted to get these approvals, and are thankful to the regulators for their support."

The deal was approved by the Reserve Bank of India (RBI) last week, which it has also got the clearance from Competition Commission of India and the Pension Fund Regulatory and Development Authority (PFRDA).

The definitive agreement for the deal, the largest ever Foreign Direct Investment (FDI) in the Indian mutual fund space, was signed between Reliance Cap and Nippon Life in late March this year.

The transaction is expected to close in next few weeks.

The Nippon Life transaction values RCAM, the country's most profitable fund house, at about Rs 5,600 crore.

Reliance Capital has already completed another deal with Nippon Life, wherein the Japanese financial services giant has acquired 26 per cent stake in Reliance Life Insurance for Rs 3,100 crore, valuing the life insurance venture at about Rs 11,500 crore.

For the last fiscal ended March 31, 2012, RCAM posted a net profit of Rs 276 crore, retaining its position as the country's most profitable fund house for the second year.

The company's profit after tax grew by over five per cent from Rs 261 crore in the previous fiscal 2011-12. Its profit before tax also grew by 5% to Rs 308 crore in the fiscal ended March 31, 2012.

Reliance Capital AMC (Asset Management Company) had overtaken HDFC AMC as the country's most profitable fund house during the previous fiscal 2010-11 and has managed to retain its leadership position.

Reliance Capital Asset Management managed Rs 1,40,853 crore (USD 27.5 billion) as on March 31, 2012, across mutual funds, pension funds, managed accounts and hedge funds.

Mas Enterprises Cardamom Auction Quotes:

As per the latest updates from the Spices Board of India, the average prices of cardamom in the auction held at Mas Enterprises, Vandanmettu on Friday (as on 1st June 2012) stood at Rs 734.41 and maximum price was at Rs 1,001.50 per kg. The arrivals and offtakes stood at 65439 kg and 55941 kg respectively.

The average price in the previous auction was Rs 715.42 per kg, meanwhile arrivals and offtakes stood at 61259 kg and 57742 kg respectively. 

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There is economic buzz in Eurozone: manufacturing PMI falls to 45.1 In may

Manufacturing activity in the 17-nation euro zone shrank at the fastest pace in three years in May, according to the Markit purchasing managers index for the sector released Friday. The index fell to 45.1 from 45.9 in April and was little changed from a preliminary estimate of 45.0. A reading of less than 50 signals a contraction in activity. The data indicates the sector is contracting at a quarterly pace of around 1%, Markit said.

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There is economic buzz in U.K. : In the may manufactacturing PMI goes at 3 year low .

The May purchasing managers index for Britains manufacturing sector released on Friday fell sharply to post a three-year low, indicating a steeper-than-expected contraction in activity. The Market/CIPS manufacturing PMI fell to 45.9 from a reading of 50.2 in April. A reading of less than 50 indicates activity shrank.

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