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HCL Technologies plans capex of $230 million for FY12

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PREVIEW-Choppy markets to hold back Q3 asset-manager profits

By Ross KerberOct 17 (Reuters) - Fallen stock indexes are expected to weigh on the third-quarter earnings of big U.S. asset managers, showing how market turmoil can affect a broad swath of financial companies.The Standard & Poor's 500 index fell 14 percent during the quarter, finishing at 1,131.42, on growing concerns about Europe's debt crisis and the U.S. economic and political outlook.The index has come back a bit since then, but the drop cut into asset managers' share prices and led some analysts to reduce their earnings estimates for big managers like BlackRock Inc and Legg Mason , knowing that lower markets will leave them with fewer assets under management against which to charge fees."These businesses can't drop their expenses fast enough to offset the sharp declines in revenue," said KBW analyst Robert Lee. He said he was not predicting the companies would turn to layoffs soon, even though personnel are usually a company's highest expense.In a research note last week Lee lowered his estimates for how much the group would earn by 6 percent on average from estimates he issued in early September.Another analyst, Craig Siegenthaler of Credit Suisse, said in a recent note to investors that market uncertainties have had another effect, "de-risking," such as driving money away from the equity funds that traditionally were among the companies' most profitable products.Data from Chicago research company Morningstar bears out that idea. Investors withdrew a net of $45.7 billion from long-term mutual funds in the quarter, with U.S. stock funds accounting for nearly all the outflow. On the other hand, low-cost exchange traded funds took in an estimated $19.7 billion in the quarter, Morningstar said.SEASON STARTS OCT. 19An earnings report from the largest asset manager, BlackRock Inc , will start the season on Oct. 19, followed by T. Rowe Price Group on Oct. 25 and Franklin Resources Inc on Oct. 27.A hint of what is to come came Oct. 13 when JPMorgan Chase & Co issued third-quarter earnings that included its own asset-management unit. There, net income of $385 million was down 8 percent from the same period a year ago and down 12 percent from the second quarter of 2011."This is a business that was clearly ... affected by volatile markets this quarter," said Doug Braunstein, JPMorgan's chief financial officer, on a conference call with analysts. Though revenue of $2.3 billion was up 7 percent from a year ago, it fell 9 percent from the second quarter.The asset-management business, Braunstein continued, is one in which "we would expect to see continued pressure on revenue in the fourth quarter if the current market conditions persist."

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UPDATE 1-Ford UAW contract gains support in ongoing vote

* GM workers have already ratified their contractBy Bernie Woodall and Deepa SeetharamanDETROIT, Oct 14 (Reuters) - Union leaders lobbying to win ratification for a proposed four-year contract with Ford Motor Co won new support in a close vote with five days remaining, a union online update showed on Friday.The running tally as of Friday morning was 6,271 "yes" votes and 6,085 "no" votes, according to posting by the United Auto Workers Ford Department. That is about 51 percent for and 49 percent against.Ford local unions vote through next Tuesday on the tentative pact, with the total vote result to be issued on Wednesday.The vote will affect about 41,000 UAW-represented Ford workers.The next big union local to report results will be UAW Local 600, the biggest Ford local, which will report results on Sunday. Local 600 represents a handful of plants near Ford's world headquarters in Dearborn, Michigan, including "The Rouge," a sprawling factory built by company founder Henry Ford.UAW President Bob King said on Wednesday he was confident the pact would be ratified and that the weakening economy would undercut the union's position if the two sides were forced back into bargaining.A Ford plant in Flat Rock, Michigan, voted 72 percent to approve the proposed pact, a union official said on Friday. That plant has been promised some of the production of the Ford Fusion sedan in a shift of work from Mexico.Bringing back work from Mexico has been a selling point by King and UAW officials since Ford and the union reached a tentative agreement on Oct. 4.UAW Local 1250 which represents two Ford engine plants in Cleveland where 1,032 workers voted, supported the contract by 53 percent to 47 percent.The proposed UAW contract at Ford is the richest of the deals offered to workers at the Detroit automakers. In one of the key differences, Ford workers would receive a signing bonus of $6,000 each, compared with just $5,000 for workers at General Motors Co and $1,750 at Chrysler Group LLC .Over the term of the contract, Ford workers are guaranteed at least $16,000 in bonuses. GM's 48,500 union workers would get $11,500 at a minimum. At Chrysler, the weakest of the Detroit Three, guaranteed payout is just $5,750.Chrysler's 26,000 unionized workers will vote over the next two weeks on a tentative contract agreement reached by negotiators on Wednesday.

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EU Commission calls for action on Greece and banks

"Confidence can be restored through an immediate deployment of all the elements needed to solve the crisis. Only in this way we will be able to convince our citizens, our global partners and the markets that we have the solutions that measure up to the challenges all economies are facing," Barroso said in a statement outlining the Commission's proposals.