weekly pulse 06

8/4/2019 Weekly Pulse 06

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Issue 6 2011Aug 29 –Sep 4

STEVE JOBS RESIGNSAS APPLECEO………….1

GOVT. OF INDIA PLAN-

NING TO ALLOW FDI FROM

PAKISTAN ................... 2

RBI TO ISSUE BANK LI-

CENSES; BUT NOT ANYTIME

SOON ………..……..3 Weekly pulse“ Profit from folly rather than participate in it.”

— WARREN BUFFETT

Steve Jobs Resigns as CEO of AppleThe ailing tech visionary who founded Apple Inc. in 1976 will be succeeded by Chief Operating Office Tim Cook. Steve Jobs has been elected chairmanof the board and Tim Cook would join the board with immediate effect.The reaction of Apple’s shares to this news is

a good indicator of what he meant to the

company. In after-hours trading, Apple’sshares slid 5.13% to $355.70. It remains to be

seen how the company does in the long term

under the reign of Tom Cook. Considering

the fact that he has been handling the overall

running of the business in the absence on

Steve Jobs in the past, it should not be hard

for him to step in at this crucial junction.

RBI’s Income Grows 12.7% in 2010-11The Reserve Bank of India’s gross income for 2010-11 grew by 12.7% toRs.37,070 crore, up from Rs.32,884 crore a year ago.This is due to an increase in earnings from domestic assets. The increase ismore than the offset due to the decline in income from foreign sources.Earnings from domestic sources rose by 105% to Rs.15,920 crore, up fromRs.7,782 crore in 2009-10. Simultaneously, the rate of earnings on foreign cur-rency assets and gold dipped 1.7% of the total earnings, down from 2.09% in2009-10 and 4.16% from 2008-09.Total expenditure rose by 3% to Rs.8,655 crore, up from Rs.8,403 crore in2009-10.RBI’s accounting year ends in June.

Food Inflation RateUp

The food inflation rate roseto 9.8%, up from 9.03% las

week.This is primarily due to asharp rise in the prices of fruits and vegetables causeddue to supply disruption anexcessive rainfall in someareas. There are fears that imay touch double figures.



H U L & F u t u re

G ro u p to Co- b ra nd Ba k e r y

H U L & F u t u re G ro u p to C

o- b ra nd Ba k e r y P rod uc ts

MICROSOFT

India’s largest consumer products company Hindu-stan Unilever and biggestretailer Future Group willco-develop and co-brand aline of bakery products thatwill be sold exclusively atBig Bazaar stores.The products will sport

both HUL’s ‘Modern’and Future Group’s‘Freshly Baked’ brandson their packaging. Ini-tially, it will be rolled outin select Big Bazaar shops in Mumbai.

Indian-American Deven Sharma, Chief of Standard & Poor’s will quit next month and will be

succeeded by Citibank Chief Operating Officer Douglas Peterson. This announcement comes

only weeks after the credit rating agency downgraded American credit rating. Sharma will

however work as an advisor at McGraw-Hill through the end of the year. Sharma had joined

S&P’s in 2006 as executive Vice President, investment service and global sales, after working

at the McGraw-Hill cos. for 5 years.

Deven Sharma Quits as Chief of

The government plans to strike of Pakistan’s name from a negative list that debarred investment

from across the border. This would allow Pakistani companies to invest in India. This symbolic

move is not likely to yield high investments into the country, but it would offer a political divi-

dend which would help thaw the often-frosty ties between the neighbours.

Government of India planning to remove Pakistan from Investment Black List

India May Cut Its Loan PipelineThe Indian government may cut its loan pipeline as it is running the risk of exceed-ing the borrowing limit from the World Bank within the next three years. As of June2011, India’s outstanding exposure had reached $11.4 billion while the borrowinglimit currently stands at $17.5 billion.The government is looking to pre-pay the loans or cut down on the loan pipeline. In

case the limit is breached, it will ask the World Bank to increase the capital base or pre-pay or raise the limit.It will also look at co-financing from the private sector, something which has not been tried before.As of now, India is the largest borrower of the bank.



LAST WEEK’S ANSWERS:

RBI will issue bank licenses; but not anytime

soon

RBI governor D Subbarao hinted that the new bank license rules may allow corporates to promote banks but there is a need to strengthen rules that prevent banks from lending to interested or promot-er groups and directors. According to him, the key

risk is the possibility that corporate owners maytreat banks as "a private pool of readily availablefunds.". On the positive side, corporates can bringin capital as well as business experience and mana-gerial competence.

SENSEX 16839.63*-466.24**

(-2.69%)

NIFTY 5072.95-138.3

(-2.65%)

DOW JONES 11,269-1300.87

(-10.35%)

HANG SENG 19620-1326.1

(-6.33%)

FTSE 5320+73

(+1.39%)

US$ 45.34-0.6

(-1.34%)**

EURO 64.68-1.26

(-1.99%)

GOLD MCX 25815+1645

(+6.8%)

CRUDE OIL 85.39-1.69

(-1.94%)

WEEKLY MARKET STATUS

*CLOSING SPOT PRICES AS ON LAST FRIDAY i.e. 12/8/2011**RISE/FALL OVER WHOLE WEEK; FROM 5 Aug to 12 Aug***NEGATIVE SIGN INDICATE WEAKENING OF RUPEE

AGAINST $/EURO

BRAIN SCRATCHER

FinX comes with yet another editionof crossword. First 3 correct entries

will get their name featured on theFacebook page and the next Weekly Pulse.

The Winners

for last week

are-

Narotam Garg

Lakshay Kalra

ACROSS DOWN

1. Financial instrument that specifies a contract between 2 par-

ties for a future transaction on an asset at a reference price (7)

2. Repayment of loans by installments (12)

4. Giving loans to people who have difficulty maintaining the re-

payment schedule (8)

3. French word for stock market (6)

7.Increase in the price of food due to an increase in the demand

for human consumption and as an alternative energy resource (9)

5. Possibility that significant economic changes in one

country may spread to other countries (9)

6. Despite high-yielding asset classes, a contrasting pocy that is often seen in Japan and USA (Acronym) (4)

weekly pulse 06

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