My World

My World

No Winners in the Gulf Feud as Saudi, Qatari Assets Converge on Oil

Investors aren’t taking sides in the biggest political crisis in the Gulf in decades because their focus has already returned to oil.

Seven weeks after Saudi Arabia led a coalition of Arab states in cutting ties with Qatar over allegations that it supports terrorism, holders of both countries’ stocks and bonds are paying almost identical risk premiums. Their five-year credit default swaps converged for the first time in two years, stocks are valued at an average 13.8 times’ projected earnings over the next 12 months, and their international bonds traded level at 3.39 percent.

Corporates may gain from losses in unorganised sector

A small firm's loss in the goods and services tax (GST) regime could be a big corporate's gain.

"Currently, in many sectors, the share of unorganised players is high. With many businesses coming under the purview of the GST, many large corporates could witness market share gains from these small players," advisory firm Centrum Wealth Research has said in a report. The better cash flow as a result of this for large business houses would help them control their working capital position.

House bids farewell to President Mukherjee

Outgoing President Pranab Mukherjee on Friday expressed concern over the declining amount of time spent in lawmaking, saying Parliament should adequately scrutinise and debate laws before they are enacted. “It is unfortunate that the parliamentary time devoted to legislation has been declining,” he said at a farewell function in Parliament attended by Vice President Hamid Ansari and Prime Minister Narendra Modi, besides others.

Chandra hints at consolidation

Emphasising that there will “definitely” be pruning of the Tata portfolio, Tata Sons chairman Natarajan Chandra­sekaran has said the company will not exit a business “just to get a headline” but only when it is certain the group is not getting returns from it.

Rs 200 note to be in circulation by end of year, RBI ‘puts orders’ for it

Introduction of Rs 200 note will fill in the “missing middle” even as the new cu­r­rency in circulation (CIC) has already reached 84 per cent of the pre-demonetisation level, says a report. Cash with banks, a CIC component, has, however, witness­ed a decline over November 2016 level, said the SBI Eco­wrap report.

The data for June 23, 2017 shows cash in hand with banks declining to 5.4 per cent of the currency in circulation from a high of 23.19 per cent for the fortnight ended November 25 2016, it said.

50 experts to be inducted in govt via lateral entry

In a major move aimed at bringing domain expertise to policy making, the government has decided to open its doors for private sector spec­i­alists in select departments, a senior personnel ministry official said. A proposal is being worked out to induct 50 such specialists from the private sector in government departments at the level of director and joint secretary, he said. Civil service officials man many of these posts.

7-day ‘silent period’ for MPC members

In an attempt to streamline the working of the Reserve Bank of India governor headed six-member monetary policy committee and resolve issues concerning conflict between members’ personal and public interest, the central bank has notified new regulations for functioning of the committee.

The government appointees on MPC will be paid Rs 1.5 lakh per meeting along with air travel and other reimbursements, but will need to observe a “silent period” seven days before and after the rate decision for “utmost confidentiality”.

Centre and sugar mills agree to cap cane price

The Centre has extracted a promise from sugar mills to ensure retail price at the current level until the next crushing of cane starts in November.

The assurance is in lieu of implementing the Rangarajan committee’s recommendation of price sharing.