Posted at 2:21 PM , on May 13, 2019
The verdict is out! The US-China trade talks have failed and the US has gone ahead with its fancied 25% tariffs on $200 billion of Chinese imports. China has threatened to retaliate but not too many are taking the threats seriously. Don’t underestimate China and here are 4 ways they can needle America.
Posted at 2:17 PM , on May 13, 2019
During the last couple of weeks, we saw three diverse sets of news that pointed to a similar problem at a macro level. Firstly, there were the quarterly results of HUVR, Britannia and Godrej where the pressure on the top line numbers was clearly visible. Secondly, the auto sales numbers for the month of April were really scary with most sales numbers down by nearly 15-20% and dealer inventories mounting. Finally, we have the YOY airline passenger traffic growth which fell to a multi-year low of just 3.1% in a potentially huge market!
Posted at 2:07 PM , on May 13, 2019
Fiscal deficit always has a much larger implication because it shows the extent to which the government needs to borrow to balance its budget. Even since the Fiscal Responsibility Act was passed in 2004, the government has tried hard to keep the fiscal deficit in check. Of course, there have been instances during the UPA regime and the NDA regime; when there have been clear cases of transgressing the limit. The entire issue of fiscal deficit came back to the fore when Jaitley admitted that the actual fiscal deficit may be closer to 3.8%. Why is this important?
Posted at 12:13 PM , on May 6, 2019
The SEBI chairman recently underlined the need to regulate debt funds and FMPs in a more stringent way. While the contours of such regulation were not spoken about, the statement was clearly dictated by what had been happening to mutual funds in the last few months. Of course, we are talking about MFs unilaterally deciding to postpone the redemption of FMPs. How to regulate?