New Delhi: It seems that all the President’s horses and all his men can’t put the economy together again. Investors in US stocks seem to believe that for the moment as that market witnessed its worst single-day route since 2008.
The President himself was busy distancing himself from the mess. Barack Obama said he inherited many of the country’s problems when he entered the White House. He also said that the problems in Europe were affecting the US. Read more...-
What’s left? Another round of quantitative easing perhaps? Here’s a list of things to watch out for before trading starts today.
After the European central bank, all eyes are now on the US Federal Reserve. Economists expect ‘Helicopter Ben’ to signal a continuation of monetary stimulus when it meets on Tuesday. Read more...
Meanwhile, fears that the political leaders are failing to tackle the debt crisis in Europe and the US is leading to a rout in Asian stock markets. Stock markets in Japan and South Korea plunged by more than 4% each in opening deals.
After reducing the US credit rating, S&P has raised red flags on some Asian countries. The focus of the ratings agency has now shifted to political climate and the ability of the Asian countries to deal with a full-blown financial crisis or a protracted global economic downturn. The ratings agency has pointed that the implications for Asia’s creditworthiness would be more negative than in the past.
Individual ratings of the companies are also under threat. Fund rising plans of Indian companies are likely to hit a rough patch as ratings agency CRISIL fears higher number of downgrades. Read more...
Increasing uncertainties on the global front is forcing the government to make the right noises. The government assured investors that it would expeditiously work on pending reforms. Finance minister Pranab Mukherjee said that the government will fast-track the implementation of the pending reforms.
A low base and new projects led to a spike in FDI in June. FDI reportedly rose four times in June over a year ago to reach $5.65 billion.
Despite these challenging times, engineering major, Larsen & Toubro is confident of meeting its revenue and order book forecast. The company reported a 12% rise in June quarter net profit to Rs 746 crore.
Due to the adverse global environment, Tata Chemicals has deferred plans to raise $375 million to fund expansion plans.
Bhel fears that political unrest in West Asia and North Africa will hurt overseas orders at a time when it is witnessing slowing orders in domestic market. West Asia, Africa and Central Asia are Bhel’s main international markets. West Asia earlier contributed around half of the state-owned firm’s overseas orders, but the three regions now contribute equally to its overseas order book. Read Mint’s story...
Finolex Cables is reportedly looking for a joint venture partner to sell a stake in its proposed 1,000 megawatts thermal power plant at Ratnagiri in Maharashtra.
Sesa Goa is looking to start sending iron ore consignments from its newly-acquired Liberian company by 2014. The company last week announced the acquisition of majority stake in Liberia Western Cluster Project for $90 million. The company has estimated reserves of 1.05 billion tonnes of iron ore.
Tata Power’s Mundra ultra mega power project has hit the coal hurdle. The company has reportedly written to the government expressing concerns about the viability of the project. The move comes after the Indonesian government changed its policy to benchmark its coal prices to international indices.
Finally, Nancy Wake, a much-decorated World War Two spy and Resistance heroine has died in London at the age of 98. The Australian, whom the Nazis codenamed ’The White Mouse’ due to the ease with which she escaped capture, at one point was the Gestapo’s most wanted person and inspired the film Charlotte Gray. Read more...