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21st September 2014

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The Weekly Business Digest

% STORY OF THE WEEK
Chg SCOTLAND REJECTS INDEPENDENCE AS CAMERON PROMISES EXTRA POWERS

US Markets
S&P 500

2,010.40

24.86

1.25

DJIA

17,279.74

292.23

1.72

Nasdaq

4,100.09

30.86

0.76

Russell
2000

1,466.65

-16.10

-1.09

European Markets
FTSE 100

6,837.92

30.96

0.45

CAC 40

4,461.22

19.52

0.44

DAX

9,799.26

148.13

1.53

Scotland voted to stay in the UK in a referendum on independence, stepping back from a breakup of the 307 year-old union while wringing promises of more financial
power from Prime Minister David Cameron. After
counting through the night, 55% of Scottish voters supported the no campaign compared with 45% who
backed independence. The pound surged ahead of the
result, which gave the Better Together campaign a wider margin of victory than
suggested in opinion polls. There was a record turnout of more than 90% in some
of the 32 regions. The referendum outcome follows two years of increasingly
bitter arguments over the economic viability of independence, the currency to be
used, custody of the health service and North Sea oil revenue, leaving a legacy of
a divided Scotland while inspiring self -determination movements across Europe.
Cameron said he would stick with his promise to cede more policy making powers
for Scotland after a no vote. He also pledged a constitutional shakeup of the UK
that would take into account how England and Wales are governed.

Source : Livemint

Asian Markets (ex-India)

Nikkei 225 16,321.17 372.88

WORLD ECONOMY
2.34

BARCLAYS AMONG BANKS FACING MATERIAL FINE RISK, FITCH

Straits
Times

-1.21 Barclays Plc (BARC), Citigroup Inc. (C) and Deutsche Bank AG
(DBK) are among banks that could face material and wide24,306.16 -289.16 -1.18 spread fines on misconduct such as alleged rigging of currency
rates, Fitch Ratings said. Goldman Sachs Group Inc. (GS), Credit
Suisse Group AG (CSGN), JPMorgan Chase & Co. (JPM), Morgan
9,240.45
17.27
0.19
Stanley, Bank of America Corp., UBS AG (UBSN), HSBC Holdings
Plc (HSBA), BNP Paribas SA (BNP) and Societe Generale SA (GLE)
2,047.74
5.88
0.29
are also among banks exposed to litigation and other conduct
risks, and further fines are inevitable, the ratings company said in a statement today. Un1,584.23
2.87
0.18 certainty over fines and possible restrictions is one of the biggest risks they face, it said.
Banks around the globe are struggling to restore investor confidence in the wake of tougher
5,143.71
0.00
0.00 punishments. Bank of America last month agreed to pay $16.7 billion to end federal and
state probes into mortgage bond sales, the harshest penalty yet related to loans that fueled
the 2008 financial crisis. Regulators in the U.S. and U.K. are in talks with banks including
2,329.45
-2.50 -0.11 Barclays, Citigroup, JPMorgan and UBS to settle investigations into allegations of currency
benchmark rigging as soon as November, people familiar with the probes have said.
3,305.05

Hang Seng
Taiwan
Weighted

KOSPI
SET Composite
Jakarta
Composite
Shanghai
Composite

-40.50

Indian Markets
Sensex

27,112.21

51.17

Source : Bloomberg
0.19 G-20 PROMISES MORE STEPS TO BOOST GLOBAL GDP BY $2 TRILLION

G20, a grouping of developed and developing nations, today

vowed to take more measures to push the global GDP by an adBank Nifty 16,156.85 -97.30 -0.60 ditional 2 per cent, or over $ 2 trillion, by 2018.Although as per
the IMF-OECD estimates, an incremental growth of 1.8 per cent
CNX IT 11,055.20 96.70 0.88 in global GDP is achievable, pushing it up by 2 per cent would
require additional efforts. The communique also expressed conCNX Auto 8,120.35 110.55 1.38
cern over the uneven global economic growth and said it remains below the pace required
11
to adequately generate much needed jobs
CNX
11,803.05 -113.25 -0.95
Midcap
Source: The Economic Times

Nifty

8,114.75

CNX Small5,255.10
cap

9.25

0.11

-44.75

-0.84

presents
The Weekly Business Digest

21 September 2014
Weekly
% INDIAN ECONOMY
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Chg CHINA TO INVEST $20 BILLION INSTEAD OF $100 BILLION IN INDIA

Name

Ahead of President Xi Jinpings vist, speculations were rife

that China would invest a $ 100 bn in building India s infrastructure. But for reasons unknown, the figure has now
-2.50 -0.89
come down to only a fraction of the original value, $ 20 bn
over a period of next five years. Historically, China has
1.28
1.32 invested a total of $ 400 million in India, over the past 10
years. The Confederation of Indian Industry (CII) reckons
that the country would need an investment of $1.07 trillion over the next five
0.14
0.15
years. Till now, the investments total to $ 55 bn, including the Japanese contribution. This is a mere 5 percent of the total requirement.
-14.90 -1.21
Source: Business standard

Commodities

CRB
Commodity 279.40
Index
BRENT Crude
98.39
($/bbl)
WTI Crude
92.41
($/bbl)
Comex Gold
1,215.50
($/oz)
MCX Gold 26,547.0
-355.00 -1.32 INFLATION FALLS TO 5-YR LOW BUT RBI MAY HOLD RATES
0
(INR/10g)
Headline inflation softened to an almost five-year low of
Natural Gas
3.84
-0.02 -0.52 3.74 per cent in August, but the Reserve Bank of India
($/mmBtu)
(RBI) may prefer to wait for a couple of more months and
LME Copper
6,868.50 12.50 0.18 not cut interest rates when it reviews the monetary poli( /pounds)
cy on September 30. The wholesale price index (WPI) based inflation is the lowest since October 2009, when it
Interest Rates
US 10 year
German 10
year
Japan 10
Year
India 10
Year

stood at 1.8 per cent. RBI Governor Raghuram Rajan said at a banking summit
that inflation remained high, both in food and non -food items. The central bank is
keen that prices do not rise again due to a pick up in the growth momentum

2.71

-0.04

1.21

-0.04

0.68

-0.02

SENSEX UP MOST IN 3 MONTHS AS FIIS PUMPS IN FUNDS ON FED S RATE

PLEDGE

7.91

-0.13

98.92

0.00

Source: Indian Express

USD

60.85

0.19

EUR

78.22

-0.27

GBP

99.58

1.09

Markets on Friday rose the most in over 3 months with

Sensex jumping 481 points to 27,112.21 and Nifty soaring
over 139 points to 8,114.75 as FIIs pumped funds on
Fed's pledge to retain rates at low levels for a considerable time and rising optimism over India's trade ties with
0.30 China. The 30-share BSE Sensex after opening in the negative zone rebounded to close above the key 27,000-mark for the first time since
-0.34 September 12. It ended at 27,112.21, gaining 480.92 points, or 1.81 per cent. This
is its biggest single session gain in over 3 months since June 2 (467.51 points).
1.11 The Fed policy announcement last night allayed fears of capital outflows.

JPY
Dollar Index
(SPOT)
Euro FX

0.56

-0.01

-1.24 Source: Firstpost

84.74

0.50

0.59

Eurodollar

Currency

SEBI WORKING ON GUIDELINES TO CHECK WILFUL DEFAULTERS

Sebi is working on guidelines to deal with wilful defaulters but there is no re-1.03 striction at present on such entities from raising funds from the capital market,
according to the regulator's chief U K Sinha. Earlier this month, United Bank of
WORD OF THE WEEK
India had declared Kingfisher Airlines, its promoter Vijay Mallya and three other
BLOCKCHAIN A blockchain is a public directors as wilful defaulter citing alleged diversion of funds.

1.28

-0.01

ledger of all Bitcoin transactions Source: Economic times

that have ever been executed. It is
constantly growing as completed QUIZ OF THE WEEK: In which country's coins you can found the
blocks are added to it .
following lines imprinted, 'This is the root of all evils' ?
Please send your answers and views to networth@iimb.ernet.in