Financial focus Weekly Newsletter InFINeeti ISSUE 5 2013 VOLUME 1 TOP STORIES….…........1 MARKET ACTIVTY ….....2 ECONOMICS ....... …... 3 TERM OF THE WEEK ….4 TRADING CALLS ..…….5 A one stop guide to know about all the recent happenings in the finance world TOP STORIES : INDIA MEGA DEAL:HOLCIM TO RAISE STAKE IN AMBUJA TO 61% Swiss cement giant, Holcim has decided to simplify structure of its Indian subsidiar- ies by increasing stake in Ambuja Cements from 50% to 61.39% and Ambuja, in turn will buy Holcim's stake in ACC. Post the deal Ambuja Cements will own 50.01% stake in ACC. In a statement, Holcim said it intends to streamline the ownership structure of its operaons in order to strengthen the exisng plaorm and create value for all stakeholders. The management stated both ACC & Ambuja Cements will remain separate enes post the deal. Financial focus RBI IMPOSES MORE CURBS ON GOLD IMPORTS On Monday, RBI released revised scheme for import of gold. More curbs on gold imports are likely to be announced in the coming days. RBI said at least 20% of the imported gold should be used for export only and should be kept in custom bonded warehouses. 80% of it must be used for enes in the jewellery business. The Apex Bank also said that the new gold import norms will not be applicable for SEZ units, trading houses. All aucons to be held under uniform price method. The new scheme raonalizes import of gold in any form or purity. WHY WARREN BUFFETT, POSCO ARE GIVING UP ON INDIA? Warren Buffe, Wal-Mart Stores, ArcelorMial and Posco are pulling back on invest- ments in India that they had announced with great fanfare. What's scaring foreigners away? A rampant polical dysfuncon that has stopped India's progress cold. The problem is an Indian government that won’t get out of its own way. The long debate over foreign-investment limits says it all. In September 2012, Prime Minister Manmo- han Singh’s government passed a law allowing big retailers to open stores directly in India, yet no one has
Transcript
Financial focus Weekly Newsletter
InFINeeti
ISSUE 5 2013 VOLUME 1
TOP STORIES….…........1 MARKET ACTIVTY ….....2
ECONOMICS ....... …... 3
TERM OF THE WEEK ….4 TRADING CALLS ..…….5
A o n e s t o p g u i d e t o k n o w a b o u t a l l t h e r e c e n t h a p p e n i n g s i n t h e f i n a n c e w o r l d
TOP STORIES : INDIA
MEGA DEAL:HOLCIM TO RAISE STAKE IN AMBUJA TO
61%
Swiss cement giant, Holcim has decided to simplify structure of its Indian subsidiar-ies by increasing stake in Ambuja Cements from 50% to 61.39% and Ambuja, in turn will buy Holcim's stake in ACC. Post the deal Ambuja Cements will own 50.01% stake in ACC. In a statement, Holcim said it intends to streamline the ownership structure of its operations in order to strengthen the existing platform and create value for all stakeholders. The management stated both ACC & Ambuja Cements will remain separate entities post the deal.
Financial focus
RBI IMPOSES MORE CURBS ON GOLD IMPORTS
On Monday, RBI released revised scheme for import of gold. More curbs on gold imports are likely to be announced in the coming days. RBI said at least 20% of the imported gold should be used for export only and should be kept in custom bonded warehouses. 80% of it must be used for entities in the jewellery business. The Apex Bank also said that the new gold import norms will not be applicable for SEZ units, trading houses. All auctions to be held under uniform price method. The new scheme rationalizes import of gold in any form or purity.
WHY WARREN BUFFETT, POSCO ARE GIVING UP ON
INDIA?
Warren Buffett, Wal-Mart Stores, ArcelorMittal and Posco are pulling back on invest-ments in India that they had announced with great fanfare. What's scaring foreigners away? A rampant political dysfunction that has stopped India's progress cold. The problem is an Indian government that won’t get out of its own way. The long debate over foreign-investment limits says it all. In September 2012, Prime Minister Manmo-han Singh’s government passed a law allowing big retailers to open stores directly in India, yet no one has
Asian-Pacific markets ended the week mixed as a rising yen sent Japan's Nikkei 225 tumbling 3% on Friday. Hong Kong's Hang Seng Index rose 0.3%. Australia's S&P/ASX 200 edged up 0.1%. China's Shanghai Composite lost 0.5%. South Korea's Kospi rose 0.1%. India's Sensex was down 0.4%.
SENSEX SNAPS 4-WEEK WINNING STREAK; PSU BANKS
DRAG
Sensex fell 56.57 pts. to end at 19748.19, Nifty at 5886.20, as PNB, SBI & BoI fell ahead of RBI policy. Disappointing earnings continued to hurt the market sentiment with the asset quality concerns impacting public sector lenders and reduction in discretionary spending pinching FMCG companies. (Friday— 26th July)
TOP STORIES : WORLD JAPAN STARTING TO WIN FIGHT AGAINST DEFLATION,
DATA SHOW
According to statistics, the Bank of Japan is starting to make progress in its effort to end 20 years of deflation. Consumer prices rose in June at the fastest yearly pace since November 2008. A year-on-year gain in the consumer price index, which doesn't count highly volatile prices for food, was 0.4%. It was the first time consumer prices rose in 14 months. The Tokyo core CPI, seen as a good indicator of what will happen to prices across the country, rose 0.3 percent in July after a 0.2 percent increase in June, in line with market expectations
ARGENTINA CHANGES APPROACH ON FOREIGN OIL IN-
VESTMENT
Rejecting its previously protectionist stance, Argentina is opening the Vaca Muerta shale oil and gas field to foreign companies to halt a decline of energy production. Argentina has relaxed regulations to clear the way for a production contract worth $1.24 billion with U.S.-based Chevron. After years of nationalist rhetoric and protec-tionist policies, Argentina is seeking to lure foreign investment to its Vaca Muerta shale oil and gas field in an bid to jumpstart the country's energy sector and reverse a decline in output.
CHINA MANUFACTURING ESTIMATE REVEALS SHARP
DECLINE
A gauge of China's manufacturing activity fell for the third consecutive month in July, reaching an 11-month low. HSBC said its flash China Manufacturing Purchasing Man-agers' Index "deteriorated at the fastest rate for almost a year in July, signaling one of the steepest downturns seen since the 2008-2009 financial crisis," including the
sharpest drop in the employment sector in more than four years.
ECONOMICS U.S. AGENCY: WORLD SET TO USE 56% MORE ENER-
GY BY 2040
Driven largely by demand from China, India and other Asian countries, the world's consumption of energy will jump 56% by 2040, the U.S. Energy Infor-mation Administration said. "Rising prosperity in China and India is a major factor in the outlook for global energy demand," said EIA Administrator Adam Sieminski. "This will have a profound effect on the development of world energy markets."
GM REPLACES TOYOTA AS WORLD'S TOP AU-
TOMAKER
For the first time in six quarters, General Motors has outsold Toyota Motor. GM sold 2.49 million vehicles in the second quarter, compared with Toyota's 2.48 million. GM also has reported Q2 earnings that top analysts' estimates. Toyota’s decline in Japan car sales shows a rare weak spot for a company that’s forecasting its biggest profit in six years and whose stock has gained 54 percent this year
ECB LIKELY IS FINISHED LOWERING RATES, ECON-
OMISTS SAY
A poll of 70 economists indicates that the European Central Bank likely won't reduce interest rates further, but it could take other steps to bolster the economy. "Further ECB measures should concentrate on improving credit conditions in the peripheral *Eurozone+ countries," said Kristian Toedtmann, an economist at DekaBank. "These measures could be targeted at the *asset-backed securities+ market. But it is difficult to say what exactly the ECB could or will do." However, the survey was conducted before another one was released suggesting growth in the Eurozone private sector
DID YOU KNOW?
Reliance Industries Ltd., one of India’s biggest conglomerates earned close to INR 8000 Crores only through its treasury opera-tions in the last fiscal (How many companies will ever reach that turnover?). It has cash reserves amounting to a whopping INR 83,000 Crores. The company’s treasury income accounted for 38% of its annual net profit in Financial Year - 2013
FOREX RESERVES TOUCH LOWEST LEVEL IN 3 YEARS TO REACH BELOW $280 BILLON
Country’s forex reserves fell by almost $1 billion to reach the lowest level in last 3 years. Total forex reserves $279.2 billion for the week ended July 19, Reserve Bank of India (RBI) data showed on July 26th 2013. Last time forex re-serves were at $278.2 billion in the week ended July 2, 2010. Rupee meanwhile ended at a bit stronger on friday to end at Rs 59.04 against the dollar compared
