Tuesday, 26 August 2014

VRITTAM(10 AUG 2014 - 17 AUG 2014)

VRITTAM (10 AUG 2014 - 17 AUG 2014)


The International Finance Corporation (IFC), private finance arm of the World Bank,
 is set to raise as much as $2 billion in a bumper bond sale, a vote of confidence
 in the Indian economy that's set for a turnaround under the growth-oriented policies
 of the Narendra Modi government.

This will also be the first onshore offer of such magnitude by a blue chip entity and 
will help deepen and internationalize India's corporate bond market, something that 
successive governments and the Reserve Bank of India (RBI) have aspired to over 
the years but haven't quite been able to achieve.
India is now among the 16 top lenders to the United States, with its investments in the
US government bonds hitting a new high in June at $73 billion.Indian investors — 
predominantly the Reserve Bank of India — have increased exposure to US treasury
securities by 19 per cent over the past year, according to data released by the US
treasury department. India has now lent more than developed countries such as Canada, 
Germany or France to the world's most powerful economy.
The transaction will allow News Corporation units to own and operate all of the ESS 
businesses while providing ESPN more independence and flexibility in future support of 
The Walt Disney Company's overall efforts in Asia, a media release said.
"News Corporation's acquisition of the interest of ESS that we did not already own, 
continues the program of simplifying our operating model, consolidating our affiliate 
ownership structures and furthers our commitment to delivering incredible sports 
programming to consumers across the globe and particularly enhancing our position 
in sports programming in emerging markets," said James Murdoch, Deputy Chief
Operating Officer and Chairman and CEO International, News Corporation.

RBI deputy governor says no signs of stress in real estate sector

Reserve Bank of India (RBI) deputy governor S.S. Mundra on Wednesday said that
though the real estate sector is prone to volatility and formation of asset bubbles, 
there are no signs of stress in the sector so far. “Despite complains about the flow of 
credit to the real estate sector, figures show that the loan growth to commercial real
 estate has been strong and robust mirroring other segments,” Mundra said.

The only real worry is inflation: HDFC Bank’s Aditya Puri

Growth in the economy could accelerate to near 5.5% this fiscal year if progress is made 
on unblocking stalled projects, said Aditya Puri , managing director of HDFC Bank Ltd.
Puri said he doesn’t expect interest rates to decline for at least one year as food inflation 
remains a concern. However, rates in the banking system have already started to come 
down for retail and corporate borrowers, he said. On a potential merger between Housing
 Development and Finance Corp. Ltd (HDFC) and HDFC Bank, Puri said that while 
some issues have been resolved by the recent regulatory changes, not all issues have
 been, adding a merger will only be considered if it makes business sense.

Standard Chartered to pay $300 million on unflagged transactions

Standard Chartered Plc agreed to pay $300 million for failing to flag suspicious transactions
after promising to do so as part of a 2012 settlement with New York’s banking regulator.
The London-based bank didn’t fix the anti-money laundering compliance issues as it had 
been required to do in the accord two years ago, according to a statement from the
 New York Department of Financial Services on Tuesday. 

India must adopt pro-market policies

It was not for no reason that Milton Friedman, a Nobel laureate and prominent Chicago 
school economist, considered businessmen to be the biggest threat to free markets.
Businesses like to be shielded from market competition and offered special favors
by the government, and that is exactly what a “pro-business” politician promises to deliver. 
This is far removed from upholding business freedom by allowing free entry and exit 
into markets without barriers raised by the government. The “pro-poor” politician, on the
other hand, likes to pander to populist sentiments, often granting free or subsidized 
goodies and various kinds of protection to the poor.


Click on the slideshow below to have better view of why
 India is better prepared for US monetary tightening 



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