THE WEEKLY FINANCIAL NEWS
US credit union regulator sues Morgan Stanley over mortgage losses
Morgan Stanley is being sued by a US credit union regulator to recover losses on more than $566 million of
residential mortgage-backed securities sold to two corporate credit unions that
later failed. The National Credit Union Administration said that Morgan
Stanley made misrepresentations in offering documents for securities sold
between 2004 and 2007 to the US Central Federal Credit Union, once the largest
federally chartered corporate credit union, and the Western Corporate Federal
Credit Union.
Morgan Stanley is being sued by a US credit
union regulator to recover losses on more than $566 million of residential
mortgage-backed securities
FIPB clears US pharma major Mylan's Rs 5,168 crore FDI proposal
US-based Mylan Inc's Rs 5,168 crore proposal to acquire Agila
Specialties Pvt Ltd - a subsidiary of pharma firm Strides Arcolab - was cleared by the Foreign Investment Promotion Board
(FIPB).
Rupee slide to impact IOC, BPCL most: Fitch
Global rating agency Fitch has said rupee depreciation will
have the highest impact on state-owned oil
marketing companies, including Indian
Oil Corporation (IOC) and Bharat Petroleum (BPCL). "The risks to
standalone financial profiles are highest for state-controlled petroleum
marketing companies among the Indian energy sector issuers currently rated by
Fitch," it said in a statement.
Malaysian Airlines bullish on Indian market
Kuala Lumpur-headquartered Malaysian Airlines is still
bullish on India despite the weakening Indian economy and will continue to seek
growth opportunities here.
Why foreign investors are pulling out of India, other Asian markets
From India to Indonesia, the currencies and stock markets of emerging
economies have been roiled by speculation
about when the US Federal Reserve will start scaling back monetary stimulus
that has kept interest rates ultra-low and sent investors to developing markets
in search of higher returns. Separately, Asian economies that had been
star performers are now in the dumps and the ebbing investment tide has sparked
fears the region will suffer a rerun of its 1997-98 financial crisis.
Rupee instability hampering signing of new contracts: Nasscom
IT-ITeS industry body Nasscom has said the continuing
instability in the rupee, which breached the 68-mark against the US dollar on
Wednesday, is affecting IT firms in signing new contracts with foreign
clients.The rupee has declined over 20
per cent since April on concerns about
the country's wideningcurrent account
deficit (CAD), slowing economic
growth and capital outflows.
Government allows premature withdrawal of 8% taxable bonds
Indian government has allowed premature withdrawal of
investments in 8%taxable bonds which was a long time demand from tax savers. This
relaxation is offered to senior citizens with maximum benefit to investors over
80 years.
Walmart India plans possibly at final stage: Govt official
Global retail giant Walmart is
expected to soon firm up its plan to foray into India's multi-brand sector, a
top government official on Friday said. Walmart Asia Chief Scot Price met top
officials of the Department of Industrial Policy and Promotions (DIPP) and
sought clarity on the recent changes government had made in the multi-brand
retail FDI policy.
No proposal to convert idle gold into bullion: RBI
The Reserve Bank said it is not contemplating any proposal to
buy idle gold and convert it into bullion. "The RBI clarifies that no such proposal is under its
consideration at this juncture," the apex bank said in a statement.
Why gold is making a comeback
Gold is having a summer revival.The price of gold touched
$1,420 an ounce this week, a three-and-a-half month high, as escalating
tensions in the Middle East, volatile currency markets and renewed demand for
jewelry in China and India pushed prices higher.
When financial markets get jittery, investors
often buy gold because it is considered one of the safest assets that can
easily be converted to cash.
Diesel price may be hiked by Rs 3-5 a litre, LPG by Rs 50
Diesel prices may be hiked by Rs 3-5 per litre, kerosene by
Rs 2 and LPG by Rs 50 per cylinder as Oil Minister M Veerappa Moily urged Prime MinisterManmohan Singh to take steps to tackle a record Rs 180,000 crore of
losses arising from dipping rupee and surging oil rates. Moily, who had on Thursday
met Finance Minister P Chidambaram on the issue, on August 30 wrote to Singh saying
without a price increase the government will have to shell out a record Rs
97,500 crore to subsidise diesel and cooking fuel.
DID YOU KNOW
Merits and Demerits of the Food Security Bill
The
government will supply rice at Rs 3/kg, wheat at Rs 2 and coarse grain for Re 1
per kg for up to 75% of the rural population and up to 50% of the urban
population. People will be entitled to 5 kg of subsidised grain every month.
The poorest households will continue to receive 35 kg foodgrains per household
per month under the Antyodaya Anna Yajna.
Merits:
•
Bill will lower spending on food grains by below poverty line households, and
free up resources for spending on other goods and services, in particular
health, education, and nutritious food.
• Right to
Food.
Demerits:
•Key
to accruing all these benefits is the proper implementation- corruption and
inefficient distribution channel
•
Many agriculture experts believe that Food Bill which proposes to provide
grains to people at very cheap rates may discourage the agriculture production
in the country. Hence it must make sure that farmers should not be burdened
with the cost of subsidising the supply.
•
Economists have raised concerns about the cost to the exchequer at a time when
the government is struggling to bridge the fiscal and current account deficits.
•
Insufficient storage capacity for the food grains that may lead to waste.
•
Experts believe the rush to pass the bill implies the intent is nakedly
political.
EXPERT VIEW
By Vandana Hari,
Asia Editorial Director, Platts.
A SNEAK PEAK INTO THE WORLD OF FINANCE
To know the four
quick solutions for the rupee crisis click on the slideshow below.
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