VRITTAM (10 NOV 2014 - 16 NOV 2014)
THE WEEKLY FINANCIAL NEWS
WPI inflation in Oct falls to five-year low
Inflation
based on the Wholesale Price Index (WPI) eased to a five-year low in October
which, coming on the back of other positive data released this week, will put
additional pressure on the Reserve Bank of India (RBI) to reduce borrowing
costs to support a nascent economic recovery. Wholesale price inflation
moderated to 1.77% in October from 2.38% in September. The decline for a fifth
consecutive month was mainly on account of falling vegetable and fuel prices.
DLF chalks out REIT plans
India’s largest developer by market value, DLF Ltd, plans to create one or more real estate investment trust (REIT) platforms either independently or in partnership with financial partners, to harness the growth in the market and to unlock and partly monetize its investment in rental yielding assets, the company said in an analyst presentation late on Thursday night.
Germany just escapes recession, France beats low expectations
Germany narrowly avoided recession in the third quarter of the year and France exceeded low expectations, putting the euro zone on course for anaemic growth but no contraction. Europe's largest economy eked out 0.1 percent growth from the previous three months following a revised 0.1 percent fall in the second quarter, the German statistics office said on Friday. A strong rise in consumer spending and small boost from foreign trade prevented a worse result.
The International Monetary Fund on Wednesday warned of downside risks to its growth projections for the euro zone, and urged the European Central Bank to act if prices in the currency bloc continue to drift lower. The IMF's warning echoes an increasing fear among global policymakers that Europe is not on track to spur economic growth, something that should be a key topic for discussion when leaders of the Group of 20 economies meet in Australia later this week.
India is considering curbs on gold imports by private trading firms after foreign purchases surged in the past two months, two sources with direct knowledge of the matter said.
India was one of the hardest hit of the emerging markets after the US Federal Reserve first hinted it would cut back its quantitative easing program in May 2013. There were three reasons for this. First, global markets over-reacted. Second, India had many macroeconomic weaknesses. Third, since its capital markets were deep and liquid enough, they offered an avenue for portfolio managers targeting reduced exposure to emerging markets.
Weak demand from China and increasing US shale production are set to transform the oil industry, making a quick rebound in prices unlikely. Global oil prices have been on a downward slide since June.
SLIDESHOW
Click on the
slideshow below to have a better view of A Rogues Gallery of Financial Crime
THE WEEKLY FINANCIAL NEWS
WPI inflation in Oct falls to five-year low
DLF chalks out REIT plans
India’s largest developer by market value, DLF Ltd, plans to create one or more real estate investment trust (REIT) platforms either independently or in partnership with financial partners, to harness the growth in the market and to unlock and partly monetize its investment in rental yielding assets, the company said in an analyst presentation late on Thursday night.
Germany just escapes recession, France beats low expectations
Germany narrowly avoided recession in the third quarter of the year and France exceeded low expectations, putting the euro zone on course for anaemic growth but no contraction. Europe's largest economy eked out 0.1 percent growth from the previous three months following a revised 0.1 percent fall in the second quarter, the German statistics office said on Friday. A strong rise in consumer spending and small boost from foreign trade prevented a worse result.
India would
have the fastest economic expansion among Asian countries and its gross
domestic product is expected to grow by 6.3 per cent in 2015, according to
Morgan Stanley forecast of global economies. The Indian rupee’s exchange rate
to US dollar would be at Rs. 62.20 by end of next year compared
with Rs.62 in the current quarter (Q4 this year), according to a
presentation made at the Morgan Stanley’s Annual Asia Pacific Summit held here
from November 12-14.
The
government's bid to implement the goods & services tax as early as possible
got a significant boost with the empowered committee of state finance ministers
endorsing the so-called 'place of supply' rules that form the backbone of the
new regime that will replace a plethora of levies, create a common market and
likely give GDP growth a lift of up to two percentage points.
The Foreign Investment Promotion Board (FIPB) on Friday cleared the long-pending proposal of HDFC Bank to hike foreign holding in the bank to 74%. "FIPB today considered and approved HDFC Bank's proposal," officials said after the meeting of the board. The FIPB is of the view that HDFC Bank's parent HDFC's 22.5% holding in the bank is FDI and, hence, total foreign holding is 73.2%, which includes FII, FDI, ADR and GDR.
OPINION
The recent abatement of the
year-on-year Consumer Price Index (CPI) inflation rate to below 7 per cent has
generated a chorus of pleas from India Inc for a reduction in Reserve Bank of
India (RBI) policy interest rates. Adding grist to the mills is Finance
Minister Arun Jaitley’s clarion call for a reduction in interest rates.
This is most unfortunate. So far,
the NDA government’s stance had been that interest rate policy was the
prerogative of the RBI.
SLIDESHOW
Click on the
slideshow below to have a better view of A Rogues Gallery of Financial Crime
