Archive for April, 2012
RBI to look into fixed rate loan products
The Reserve Bank of India (RBI) is planning to set up a committee to look into the issue of facilitating the development of fixed rate loan products in the banking system, RBI Deputy Governor, Anand Sinha said.
“We will set up a committee soon to facilitate the development of fixed rate loan products in the market, which are presently absent in the system,” Sinha told reporters on the sidelines of an Assocham event.
Explaining the rationale behind the move, he said it is the question of market development as consumer should get a range of products to make a choice.
In its last credit policy review in April, the central bank had announced to set up a committee to look into the issue.
Referring to the issue of hedging, Sinha said the central bank has asked banks to have a board mandated hedging policy to protect corporate clients from currency fluctuations. “We know that the corporates take a view on the exchange rate movement based on the currency movement and then decide whether to hedge or not to hedge. Point is that if we are looking for a safer system then we will have to gear up on our hedging in a better way…,” Sinha said.
He also said the central bank doesn’t have any fixed level for rupee and will only intervene to check excess volatility. “RBI doesn’t look for a fixed level of rupee. We will only intervene if there is excess volatility,” he said adding that it is closely watching the liquidity situation.
Presently, banks are borrowing around Rs 1 lakh crore from the liquid adjustment facility (LAF) route, which is above RBI’s comfort level of around Rs 60,000 crore.
India to get banking info from Switzerland on liberal terms
In a development that will boost the fight against black money menace, Switzerland has agreed to provide details of secret bank accounts of individuals sought by India even on the basis of limited information.
Under a mutual agreement reached on April 20 between the two countries, Switzerland has agreed to give liberal interpretation to the provisions concerning identities of Indian citizens.
“… it is sufficient if the requesting state identifies the person by other means than by indicating the name and address of the person concerned, and indicates to the extent known, the name and address of any person believed to be in possession of the requested information,” a Finance Ministry release said today.
Under the existing bilateral treaty, the requesting country has to compulsorily provide the name of the person under examination and the name of the foreign holder of the information.
These are part of the identity requirements without which the information would not be shared by the other country.
“This was a restrictive provision and not in line with the international standards,” the release said. The agreement was signed under the Double Taxation Avoidance Agreement (DTAA) between the two countries.
“This agreement is beneficial to India because it gives liberal interpretation to the identity requirements for exchange of information which India will be seeking from Switzerland and is in line with international standards,” the release said.
Gold near 2-week high on dollar, US. GDP data
GOLD held near a 2-week high on Monday on the prospect of more safe haven buying, with the dollar under pressure from weaker-than-expected U.S. economic data and speculation the Federal Reserve could ease policy further to boost growth.
Although the slowdown may not be bad enough to prompt the Fed to launch a third round of bond buying, or quantitative easing, expectations for such a move plus fears about the debt crisis in Europe could offer Gold much-needed impetus to break free from the current range.
Money managers in gold futures and options had slashed net long positions in the week ended April 24 for a third decline in four weeks, after gold failed to break out of a narrow range.
Gold added $2.07 an ounce to $1,664.39 by 0620 GMT, but the metal was heading for its third monthly decline. Bullion had risen to $1,667.11 on Friday, its strongest since April 13, on disappointing U.S. growth and European debt jitters.
“In the short run, you can have one or two weeks for the market to get excited about QE. It’s fair enough. I am still going to call for a lower gold price,” said Dominic Schnider, head of commodity research at UBS Wealth Management in Singapore.
“The target is still $1,520. But that really goes in line with the view the economy is on a better footing. If there’s no need for QE, then our call will be spot on. But if you look for QE, we are going to have a situation where prices will trend higher.”
The U.S. economy, the world’s largest, expanded at a 2.2 percent annual rate in the first three months of the year, below economists’ expectations of a 2.5 percent pace, raising the prospect of further stimulus from the Fed.
Gold rallied to its highest level in 2012 around $1,790 in late February after the Fed at the time said it would keep interest rates near zero until at least the end of 2014.
The dollar hit a fresh two-month low versus the yen and eight-month trough against sterling on Monday, staying under pressure after data last week showed disappointing first-quarter U.S economic growth. The euro was still stuck in a range because of the lingering debt crisis in Europe.
Spain, the euro zone’s fourth-largest economy and current focus of the debt crisis, will face a challenge selling bonds this week after a surprise two-notch credit rating downgrade pushed up yields on its debt.
Standard & Poor’s cut Spain to triple-B plus – three notches above “junk” – citing expectations government finances will deteriorate even more as the economy contracts and as a result of an ailing banking sector.
Gold raced to a record of around $1,920 last September on fears the euro debt crisis could spiral out of control and stall global growth.
U.S. gold for June was little changed at $1,665.40 an ounce.
“We don’t know whether there will be QE3, so we have to wait for more economic data to come out. If the economic performance continues to be good, then there will be a diminishing prospect for QE,” said a physical dealer in Hong Kong.
“There’s no support from the physical market for the time being. The festival season is coming in India but physical buying is not aggressive.”
Gold traders in India, the world’s top buyer of the bullion, refrained from buying despite the peak of the wedding season, hit by a huge stock pile and high domestic prices.
Gold jewellery is an essential part of the dowry basket Indian parents give their daughters at weddings.
No end in sight to global jobs crisis
Fiscal austerity and tough labour reforms have failed to create jobs, leading to an “alarming” situation in the global employment market that shows no sign of recovering, the International Labour Organization said.
In advanced countries, especially in Europe, employment is not expected to return to pre-crisis levels of 2008 until the end of 2016 — two years later than it previously predicted — in line with a slowdown in production.
An estimated 196 million people were unemployed worldwide at the end of last year, forecast to rise to 202 million in 2012 for a rate of 6.1 percent, according to the United Nations agency’s annual flagship report, “World of Work Report 2012″.
“Austerity has not produced more economic growth,” Raymond Torres, director of the ILO Institute for International Labour Studies, told a news briefing on Sunday.
“The ill-conceived labour market reforms in the short-term cannot work either. These reforms in situations of crisis tend to lead to more job destruction and very little job creation at least in the short-term,” said Torres, the report’s lead author.
Long-term jobseekers are demoralised and an average of 40 percent of job seekers in their prime (aged 25-49) in advanced countries have been without work for more than a year, the report found.
Youth jobless rates have soared, increasing the risk of social unrest especially in parts of Africa and the Middle East.
The labour market overall has deteriorated over the past six months, with a very significant slowdown in the case of European countries, Torres said. Unemployment is growing in a significant number of countries, including more than two-thirds of European countries over the past year.
“The narrow focus of many Eurozone countries on fiscal austerity is deepening the jobs crisis and could even lead to another recession in Europe,” he said.
“In addition, there is less progress happening in other parts of the world, for example the United States, where progress in reducing unemployment seems to be slowing down and this seems to be a trend,” he said.
Labour market recovery has also stalled in Japan, the report said. Employment rates have stagnated or “double-dipped” in China, India and Saudi Arabia, while Latin America is healthier, marked by improvements in Argentina, Brazil and Mexico.
“ILL-CONCEIVED REFORMS”
“The report clearly points to the combination of austerity measures with ill-conceived labour market reforms as the real cause for deterioration happening in Europe and little by little spreading to other parts of the world,” Torres said.
30th April Nifty Future Update
NIFTY FUTURE closed 5232
Friday Boldly we written Resistance 5260 same level we followed
We gave sell call at 5245 my stop loss is Resistance level,
After we gave the calls Nifty Future slide 5180 level.......
Today's Nifty Future facing Resistance same level 5260 around
Once if stays above the level 5285 will be expected....
Today's support 5200 if trades below the level 5175, 5145 will be expected
Higher level selling chance with tight stop-loss ???
Lower level buying chance with tight stop-loss ???
Which level we maintained stop-loss ???
More live market update to my clients only & Visit site for live market update
30th April Banknifty Future levels
Banknifty Future : 10207
Friday we boldly written Sell at higher level…
Same trend we gave sell call @ 10250 My target is 10100…….
After my alert slide and kissed 10070………….
My clients mind fully on Money Money Money…….
Today’s Resistance 10250 if stays above the level 10300 & 10345 will be tested……
Today’s Support 10175 if trade below the level 10100 & 10040 next levels…….
Higher level what will do ???? More update during market hrs to my clients…..
30th April Hot Calls
WOCKPHARMA
WOCKPHARMA Looking very HOT STOCK
Closely watch on 724, Once if break the level
Catch it !!!
Target 730,735 thereafter 750
PFC
PFC Traded near by Strong Support level
Support at 167.50, Anybody can buy with SL of 167.50
If break the level Sell Sell Sell
Down side target 163, 160
GITANJALI
GITANJALI now Ready to FREE FALL mode
Trades strong support near…….
Once if stays below the level…….. Non stop slide will expect !!!
Which level will break ???
Clients special call !!!
RELCAPITAL
Another FREE FALL Stock RELCAPITAL
Last few days taking support at lower level
Now if break the support level Sell Sell Sell
Target 308, 300
Which level is support ????
Surly we will update to my clients !!!
JUBLFOOD
JUBLFOOD our Darling Stock……
Looking very HOT movement
Closely watch on 1196 if cross the level
Buy Buy with target of 1210, 1220 thereafter 1250
Updated : 08.14am / 30th April
Lakshmi Mittal retains crown as Britain’s richest man
Britain’s wealthiest people saw their fortunes rise to record levels last year, according to the annual Sunday Times Rich List, at a time when most Britons’ earnings and savings were squeezed by inflation and low interest rates.
Lakshmi Mittal retained his crown as Britain’s richest man despite losing almost a quarter of his wealth over the past year following a fall in the share value of his ArcelorMittal, the world’s largest steelmaker.
The combined wealth of Britain’s 1,000 richest people swelled by almost five percent to more than 414 billion pounds, the highest recorded by the 24-year-old survey, the Sunday Times newspaper said in an advance release on Saturday.
Some 77 members of the 2012 rich list were billionaires, two more than the previous record in 2008.
Their good fortune contrasted with the economic plight of many Britons who face five years of austerity aimed at wiping out a record budget deficit as the economy struggles to recover from the 2008 financial crisis.
The three top places in the list were dominated by foreign-born magnates with a base in Britain who earned their fortunes from resource-based industries such as minerals, steel and oil.
Indian-born Mittal saw his personal worth slide by 4.8 billion pounds to 12.7 billion pounds, but that was still enough to keep him narrowly on top of the list.
Uzbek-born billionaire Alisher Usmanov, who owns around 30% of London soccer club Arsenal, was again in second place and close behind Mittal with a fortune of 12.3 billion pounds.
Russian investor Roman Abramovich, who owns rival London club Chelsea, held onto third place with a personal value of 9.5 billion pounds, down from 10.3 billion pounds last year.
The richest British-born billionaire was the Duke of Wellington, who slid from fourth to seventh place even though his largely property-based fortune rose five percent to 7.35 billion pounds.
Britain’s richest woman was former “Miss UK” beauty queen Kirsty Bertarelli, who shares a 7.4 billion pounds fortune with her Swiss-Italian entrepreneur husband Ernesto.
The list was published as British Prime Minister David Cameron suffers a slump in his government’s poll ratings following an unpopular budget last month that cut income tax for the richest earners.
The annual list is based on identifiable wealth, including land, property and other items such as art, racehorses or significant shares in publicly quoted companies, but does not include bank accounts.
Obama jabs at Romney at W. House Correspondents’ dinner
President Barack Obama poked fun at his likely presidential rival Mitt Romney and Republican opponents in Congress on Saturday night, including a dig at Romney’s treatment of a pet dog, at the annual White House Correspondents’ Association dinner.
The black-tie dinner, informally billed as the “nerd prom,” is the biggest social event of the year for Washington media and gives presidents a chance to show a lighter side.
“I’m not going to attack any of the Republican candidates. Take Mitt Romney; he and I actually have a lot in common,” the president said, telling the crowd of Hollywood celebrities and Washington power players that both men trailed their wives in national opinion polls.
Obama, who faces re-election in November, is expected to be matched against Romney, a multimillionaire and former Massachusetts governor.
He joked that the luxurious ballroom in the Washington Hilton hotel where the dinner was held was “what Mitt Romney calls a fixer-upper,” a dig at Romney’s sometimes clumsy references to his wealth.
Obama said he had expected a tough campaign but that one video had gone too far. A fake political attack ad rolled with a news clip of Romney defending himself against criticism for strapping the family dog, Seamus, in a crate on the top of the car during a family trip in 1983.
The clip showed images of the Obama family dog Bo, apparently miserable at being held captive by “European style dog socialism.” A deep voice intoned: “American dogs can’t afford four more years of Obama. To them, that’s 28 years.”
Obama also took a shot at former Speaker of the House Newt Gingrich, who has announced he would quit the Republican primary race. “Newt, there’s still time man,” he said to Gingrich, who was in the audience with his wife, Callista.
SECRET SERVICE ‘CURFEW’
In a shot at the legislative branch of the U.S. government, Obama quipped: “Congress and I have certainly had our differences. Yet, I’ve tried to be civil, to not take any cheap shots and that’s why I want to especially thank all the members who took a break from their exhausting schedule of not passing any laws to be here tonight. Let’s give them a big round of applause.”
Obama ended his speech with a reference to a recent scandal over Secret Service staffers consorting with prostitutes during a presidential trip to Colombia. “I had a lot more material prepared, but I have to get the Secret Service home in time for their new curfew.”
Last year, the president told jokes at the expense of U.S. real estate mogul Donald Trump, mocking his possible presidential ambitions. That dinner came on the eve of the announcement that U.S. Navy SEALs had killed al Qaeda leader Osama bin Laden.
Late-night TV comedian Jimmy Kimmel, who was the featured entertainer, wondered “Who’ll it be this year?” and joked, “You know there’s a term for guys like President Obama, um, probably not two terms.”
Kimmel continued the dog-themed jokes with a jab at the president, who shocked some Americans with the revelation that he ate dog meat as a child in Indonesia.
“When you go to a dog park, is this the same as when we look at a tank full of lobsters?” Kimmel asked.
Among the guests at the dinner, sponsored by the White House Correspondents Association, was a large contingent of entertainment celebrities invited by media organizations.
Among them were director Steven Spielberg, actors George Clooney, Sigourney Weaver, Claire Danes and Kevin Spacey, Eva Longoria, Goldie Hawn and Reese Witherspoon, and singer John Legend.
Seated at the same table were reality television star Kim Kardashian and actress Lindsay Lohan.