30 Nov 2012: India’s real estate sees drop, UK banks face shortfall

Markets

 

Equities

Indice Latest Day Change
S&P 500 1415 + 0.43%
FTSE 100 5870 + 1.15%
NSE (India) 5835 + 0.18%
Nikkei 225 9481 + 0.86%
Shanghai Comp 1974 + 0.56%

 

Debt

Security- 10 year Latest  Day Change
US Treasury 1.62% + 0.00%
UK Gilts 1.79% + 0.03%
India G-sec 7.95% – 0.87%
German Bunds 1.37% + 0.00%

 

Commodities

Commodity Latest Day Change
Gold (100 oz) $1727 + 0.04%
Copper (pound) $3.59 + 0.28%
Brent Crude $110.43 – 0.30%

 

Economy

EU may pursue Japan trade deal: EU will launch trade negotiations with Japan on a bilateral agreement. A successful deal would possibly add 420000 new jobs, majorly in Pharmaceuticals, business services, and F&B.

India’s Real estate sees drop: Indian real estate market has seen a major drop in foreign investments coming in. Compared to the investments of close to $20 billion in 2006-09, only $2-3 billion has seen an exit.

Companies

• India’s domestic air travel market worst performing: According to IATA, India’s domestic market is the worst performing aviation market in the world. The 12.4% plunge seen in October 2012, is the highest in the world. This is majorly being blamed on the high operating costs for the carriers, with a distinct lack on the govt’s part to rationalise jet fuel prices.

UK banks face shortfall: In the light of the fact that the Bank of England requires UK banks to meet its valuation policies, UK banks will need to raise £20-50 billion to meet requirement or dramatically restructure their businesses.

 

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29 Nov 2012: BP faces sanctions, Markets mildly bullish

Markets

 

Equities

Indice

Latest

Day Change

S&P 500

1409

+ 0.79%

FTSE 100

5806

+ 0.06%

NSE (India)

5788

+ 1.06%

Nikkei 225

9377

+ 0.75%

Shanghai Comp

1975

+ 0.10%

 

Debt

Security- 10 year

Latest

 Day Change

US Treasury

1.63%

+ 0.00%

UK Gilts

1.77%

+ 0.00%

India G-sec

8.02%

+ 0.75%

German Bunds

1.38%

+ 0.01%

 

Commodities

Commodity

Latest

Day Change

Gold (100 oz)

$1720

+ 0.20%

Copper (tonne)

$7720

+ 0.23%

Brent Crude

$109.79

+ 0.26%

 

Economy

    • Brazil to grow 4%: According to Mantega, Brazil’s economy is expected to have grown      4% in Q3, and this growth is likely to carry on into Q4. The Brazilian central bank has kept lending rates unchanged for the first time in over a year. Brazil has seen only marginal growth in the previous 4 quarters.

  • Goldman Sachs upgrades India’s outlook: GS has updated India’s status to ‘overweight’ from ‘market weight’, citing growth recovery and inflation moderation in the near future.
  • RBI may buy back bonds: In light of the cash shortage in the Indian system, the central bank has said that it may buy back bonds from investors to ease the situation a bit.

 

Companies

• SAC face insider trading charges: SAC Capital is likely to face civil fraud charges in a case of insider trading. SAC is one of the most successful hedge-funds of all time, and the charges come as a shock. SAC is confident of being exonerated and are ‘cooperating’ with the inquiry.

BP faces sanction: Britsh Petroleum is facing a temporary ban on US govt. contracts after its failings in the deepwater horizon disaster, which killed 11 people and created the largest oil spill of all time.

 

3 Jan 2012: India opens markets to foreign investors

INDICES POINTS CHANGE
FTSE 100 5647 Up 133bp
S&P 500 1258 Down 43bp
NIFTY 50 India 4761 Up 268bp

Major Stories

  • India opens Markets to Foreign Investors
    • India has now made it possible for ‘qualified’ foreign investors to directly invest in listed Indian companies
    • This move has come with a view to widen the class of investors and reduce the high volatility in the Indian markets
    • India has recently been experiencing double-figure inflation, and industrial growth has dipped; this move should spur the growth
    • India’s Sensex was one of the world’s worst performing index last year, falling 25%
  • World’s biggest economies face $7.6trillion debt
    • Govt’s of world’s biggest economies are set to face $7.6 trillion of debt which matures in 2012
    • Led by Japan and US at $3tr and $2.8tr, and includes Brazil, India, Russia and China
    • IMF have reduced their growth forecast to 4% from 4.5% taking in view the Eurozone, US’s debt, and China’s real estate market
    • After US’s rating was cut to AA+, and several European nations have been warned of similar downgrades, the refinancing of these $8tr will be hard, as there is stiff competition for buyers
    • Borrowing costs for G-7 nations are expected to increase by as much as 39%; China’s 10-year yields may be flat while India’s might drop from 8.39% to 8%
  • Spain issues fresh warning on deficit size
    • Spain’s estimates of last week on its deficit shooting up to 8% of its GDP may yet be incomplete says the new Govt
    • Some ‘emergency austerity measures’ have just been announced; these are worth Euro 15bn
    • The Euro 20bn cuts planned for this year in Spain include tax raise of 6bn and public spending cuts of 8.9bn. The exact details of these cuts are unclear
    • Such cuts will most definitely lead to a recession in the coming quarters in Spain
  • Manufacturing lifts Risk Assets
    • FTSE All World is up 0.6% helped by a positive session in Asia; the manufacturing data has exceeded expectations, and commodity are on a bullish trend
    • Gold bounces 1.5% to $1590/ounce, while the Dollar index dips 0.5%
    • FTSE 100 is lifted by mining companies to a 1.2% rise, while STOXX is up 0.7%
    • Market bulls seem to indicate that ‘the worst might be over’