LIC AGENT IN NAGPUR
MarketConnected Global Updates:*
**Topic in Trend: India is seeing surge in Nonbank lending
-According to Fitch Group, lending by non-banking finance companies jumped 40% to an estimated $200 billion in the two years ended in March, versus growth of 15% to $1100 billion.
-New York based Apollo Global Management invested $300 million to buy GE Capital Services India, Credit Suisse Group put $20 million in Hero Fincorp Ltd and Goldman Sachs has invested in IndoStar Capital Finance Ltd.
-According to recent research in finance sector, Surge in lending by Non banking finance companies is due to the following reasons:
—Banks do'not like to do small transactions like lending to truck and van drivers and such individuals.
—Indian banks are weighed down by bad loans. Nearly 5.7% of loans at Indian banks were nonperforming last year, compared with 1.5% for U.S. banks, according to World Bank figures.
**News:
Europe:
-ECB tells Monte dei Paschi it needs to raise 8.8 billion euros. Needs to plug a capital shortfall of 8.8 billion euros.
-Greece’s eurozone creditors agreed on Saturday to unblock previously suspended debt-relief measures for the country, after Athens assured them that a Christmas gift it offered pensioners would be a one-off.
Japan: BOJ's Kuroda's speech:
—Exports, output increasing as emerging market demand recovers.
—By implementing new policy framework appropriately, BOJ can take advantage of global recovery momentum to produce even benefits to Japan economy.
—Japan's economy no longer in deflation but yet to achieve 2 pct inflation target, which is a global standard.
—From somewhat long-term perspective, global economy seems to have moved out of its adjustment phase after the global financial crisis.
**Data release:
-Japan November CPI: 0.5% y/y (expected 0.5%).
-PBOC sets USD/CNY central rate at 6.9462 (vs. yesterday at 6.9459).
www.jayantharde.com
jayant@jayantharde.com
**Topic in Trend: India is seeing surge in Nonbank lending
-According to Fitch Group, lending by non-banking finance companies jumped 40% to an estimated $200 billion in the two years ended in March, versus growth of 15% to $1100 billion.
-New York based Apollo Global Management invested $300 million to buy GE Capital Services India, Credit Suisse Group put $20 million in Hero Fincorp Ltd and Goldman Sachs has invested in IndoStar Capital Finance Ltd.
-According to recent research in finance sector, Surge in lending by Non banking finance companies is due to the following reasons:
—Banks do'not like to do small transactions like lending to truck and van drivers and such individuals.
—Indian banks are weighed down by bad loans. Nearly 5.7% of loans at Indian banks were nonperforming last year, compared with 1.5% for U.S. banks, according to World Bank figures.
**News:
Europe:
-ECB tells Monte dei Paschi it needs to raise 8.8 billion euros. Needs to plug a capital shortfall of 8.8 billion euros.
-Greece’s eurozone creditors agreed on Saturday to unblock previously suspended debt-relief measures for the country, after Athens assured them that a Christmas gift it offered pensioners would be a one-off.
Japan: BOJ's Kuroda's speech:
—Exports, output increasing as emerging market demand recovers.
—By implementing new policy framework appropriately, BOJ can take advantage of global recovery momentum to produce even benefits to Japan economy.
—Japan's economy no longer in deflation but yet to achieve 2 pct inflation target, which is a global standard.
—From somewhat long-term perspective, global economy seems to have moved out of its adjustment phase after the global financial crisis.
**Data release:
-Japan November CPI: 0.5% y/y (expected 0.5%).
-PBOC sets USD/CNY central rate at 6.9462 (vs. yesterday at 6.9459).
www.jayantharde.com
jayant@jayantharde.com
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