19 Jan 2012: India to make $35bn public investments

FTSE 100 5704 Up 3bp
S&P 500 1308 Up 111bp
NIFTY 50 India 5018 Up 126bp

Major Stories

  • India to launch $35bn of public investments
    • India is set to publicly invest $35bn to reverse the sudden decline in growth rate from 9% to 7% in one year
    • 17 state owned companies will use the money held in reserves to invest in a variety of infrastructure projects and overseas energy purchases
    • Some officials feel they need to trigger a mobilisation of currently inactive resources to boost confidence in the Indian economy
  • European Stocks trade at 5-month highs
    • FTSE All-World is up 0.5%, FTSE Eurofirst 0.2%; industrial commodities look firmer
    • Gold is up 0.5% to $1667/ounce
    • IMF has considered increasing its funding by $500bn to EU, which has restored some confidence back; Euro is up 0.3%; Copper is up to a 4-month high to $3.81/pound, up 1.6%
  • Kodak files for bankruptcy protection
    • 131-year old Kodak filed for bankruptcy protection along with its US subsidiaries; units elsewhere will not be affected and will continue to meet their obligations
    • This will give the company protection from its creditors while it reorganises its finances
    • Kodak look to sell their digital imaging patents; Kodak has shed 47000 jobs and shut down 13 manufacturing plants and 130 processing labs since 2003

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s