A load of crap from an idle brainPersonal, Movies, Music, IT, India, Singapore, Politics, Fun

The International Monetary Fund said on Monday it sold 200 tonnes of gold to the Reserve Bank of India for $6.8 billion, quietly executing half of a long-planned bullion sale that had threatened to slow gold’s rally.

While the IMF’s plan to sell some of its gold holdings had been flagged for a year before it was formally approved in September, the speed of the deal and the buyer were a surprise for traders, who had expected China — not India — to be the leading contender as Beijing diversifies its vast reserves.

The sale, which an IMF official said was concluded at an average price of about $1,045 an ounce over a two-week period in the latter half of October, will relieve the market of some of uncertainty over how and when the fund would execute its plan to sell 403.3 tonnes of gold, about one-eighth of its total stock.

“This transaction is an important step toward achieving the objectives of the IMF’s limited gold sales program, which are to help put the fund’s finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries,” the IMF’s managing director, Dominique Strauss-Kahn, said in a statement.

While the threat of IMF and central bank sales did not stop gold prices from soaring to a record high $1,070.40 last month, aided by a falling U.S. dollar, traders said the IMF news could add to the market’s upward momentum.

Full article here

+++

For a country that has always looked at Foreign Direct Investment (FDI) with suspiction and has resisted the entry of foreign money, the $100 billion mark that India has hit is not a mean achievement.

India has crossed the $100 billion milestone in FDI through equity since 2000 up to July this year testifying the country’s increasing profile as a safe and sound investment destination in the midst of the global financial crisis.

As much as 44% of the money came through the Mauritius route, apparently because the investors wanted to take advantage of India’s double taxation avoidance treaty with the island nation. The cumulative FDI inflows since 2000 and up to July 2009 amounted to $100.33 billion. The inflows in the first four months of the current financial year was $10.5 billion, according to data compiled by the Department of Industrial Policy and Promotion. The other big investors included Singapore, the US, UK and the Netherlands.

Commenting on the $100 billion milestone, economists said India is being perceived as a safe and dynamic destination for global investors. “This is a reflection that India is being taken as a safe and dynamic destination for investment as the economy is growing at 6%. The investors also want to diversify their portfolio from China by investing here,” Rajiv Kumar, CEO and director of Icrier said. The FDI would further improve if the economic recovery continues.

“We did not receive much FDI initially…since 2008 we have started receiving good numbers…there are signs of economic recovery in a few countries and I think inflows will improve with the economic recovery,” Crisil principal economist D K Joshi said.

Ficci secretary general Amit Mitra said FDI not only brings money but also new technology and managerial capabilities. “FDI’s main impact comes from new technology, new managerial capabilities, new benchmarks in corporate functioning,” Mitra said.

Above news source: TimesofIndia

Picture source: The Hindu

+++

With the commies and regional parties out of the reckoning, the stock market is going to give a real high five when it opens today in approx 2 hours from now.  I would reckon at least a 500 point upside for the BSE.  Like some panelist commented on CNBC-TV18 on Saturday, “the fact that we wont see Prakash Karat’s face on TV for the next few years itself is worth 500 points.” Well said.

5 years ago admist the uncertainity over the economic reforms , the stock market crashed by over 790 points to finish at around 4200 points as the UPA with the support of the Left came to power in May 2004.   Since then, the market touched 22000, crashed to 8000 and is now hovering around 12000.

With the commies not around this time and a decimated BJP, its time for the UPA to look at the real issues on ground.  We could look at FDI in retail and that’s sure to give a fillip to the economy in general.  Its probably time for Singh and his team to unleash the 2nd generation of reforms.

Montek Singh Ahluwalia seems to be in running for the post of Finance Minister.  Chidambaram would go back to his Home ministry (and hopefully do a good job of overhauling the creaking law and order machinery and intelligence gathering in the country).  Pranab Mukherjee is poised to be the External Affairs minister.  India would need his expertise a lot considering a volatile neighbourhood.  Hope Dayanidhi Maran comes back to Telecom/IT ministry.  We need a good minister for the post of Highways and surface transport unlike the previous scumbug, TR Baalu.  AK Antony will be the Defence Minister again.

Thank God, the moron Ramadoss is gone.  He was a pathetic joke.  Hope we will have some good Health minister who will work on the lousy public health that we have and the pathetic conditions of government run hospitals than spend his/her time watching if SRK is smoking on screen or picking up fights with the AIIMS chief.

Wonder if Advani has gone to the gym in the morning.  My prediction that Advani will NEVER become the PM of India came true.   He was, is and always will be an also-ran. At least with his new found love for exercising, he will die a healthy man physically.  Unfortunately, there can be no cure for his crooked and power hungry mind.

Here’s the best wishes for a great 2nd innings to the UPA led government.

+++

India is fast catching up with China in the flow of foreign direct investment (FDI) as capital inflows through this route has crossed $10 billion in the first quarter of this fiscal. FDI in the first quarter of the financial year 2009 has far exceeded the total FDI flows received by the domestic economy in 2005-06, Reserve Bank of India’s data said.

The total FDI inflows into the country in the April-June period amounted to $10.073 billion, nearly one billion more than the total FDI inflows–$8.961 billion– in the 2005-06 period, RBI said in its August report.

The FDI flow into India was less than $10 billion annually until 2005-06. It shot up to $22 billion in 2006-07 and $32 billion in 2007-08. China has averaged $ 50 billion annually in the past decade. If the first quarter trend continues, India could cross this fiscal $40 billion mark in FDI annual inflow for the first time. FDI flows, during April-June, has doubled when compared to the same quarter of financial year 2008, $5 billion.

Full article here.

+++

India Inc’s M&A bill crosses $50 billion in 07

Merger and acquisitions are set to become one of the most important trends of 2007 for India Inc, with the total deal value crossing 50-billion dollar mark with one more month still to go. According to data compiled by international consultancy major Grant Thornton, India Inc recorded M&A deals worth 940 million dollars in November, taking the total for first 11 months of 2007 to 50.79 billion dollars.

A total of 58 M&A deals were announced in November against 51 deals amounting to 610 million dollar in the previous month, according to Grant Thornton.

Rest of the article here.

Coffee chain Gloria Jean’s enters India

International coffee chain Gloria Jean’s is looking to make India a manufacturing and sourcing hub. It is setting up its second global coffee roasting and blending unit here. According to sources, Gloria Jean’s has finalised on a couple of locations and will tie up with Indian farmers to procure Arabica beans, which will be blended with imported coffee beans from Indonesia and Ethiopia.

The US-based coffee chain, which has more than half of its 770 outlets in Australia, announced on Monday that it was entering India through a tie-up with Citymax India, the hospitality and restaurant arm of Dubai-based Landmark Retail. Citymax will invest around Rs 50 crore for opening 100 stores over the next four years.

Rest of the article here.

India no.2 in AT Kearney FDI confidence index

China and India continue to rank first and second in the 2007 Foreign Direct Investment Confidence Index, a regular survey of global executives conducted by management consulting firm AT Kearney.

China leads the Index rankings for the fifth consecutive year and ranks first among Asian investors, 34% of whom plan to invest there over the next three years. Where as India retains second place in the Index, a position it has held since displacing the United States in 2005.

Rest of the article here.

+++