Purnartha - 8-Aug-2014 - Important news (India & Global) (To receive these updates in your mailbox every morning - just call our toll free number: 1800 - 266 - 0161 or send an e-mail to support@purnartha with your name and phone number) INDIA 1) The Union Cabinet allowed foreign investment in the Railways for the first time and raised limit for such investment in the defence sector, steps intended to raise funds for expansion of the Railways and encourage domestic manufacture of arms. 100 per cent foreign investment in railway infrastructure projects will be allowed while in the case of defence the limit has been raised to 49 per cent from the current 26 per cent, subject to the Indian owners exercising management control. 2) According to a UN report, Indias economy is expected to record stronger growth momentum of 5.5% in the current fiscal, underpinned by solid expansion in industrial and services sectors, and impetus to economic reforms by the new government. The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said a fragile global economy has weighed on Indian economy in recent years, but delays in tackling structural impediments, such as rising inequality, high inflation and infrastructure shortages have also affected the growth rate. 3) U.S. Defense Secretary Chuck Hagel says he wants to build on past progress in strengthening military ties with India, as he arrived in New Delhi Thursday for a two-day visit. Hagel told reporters that he wants to find more opportunities for the United States and India to work together, including expanding the potential for joint military exercises and renewing the 10-year Defense Trade and Technology Initiative that expires next year. GLOBAL 1) Initial claims for state unemployment benefits decreased by 14,000 to a seasonally adjusted 289,000 for the week ended Aug. 2, the Labor Department said on Thursday in US. The slow pace of layoffs as well as steady hiring are helping to strengthen labor market conditions, fanning speculation of an early interest rate increase from the Federal Reserve. 2) Chinas exports in July jumped 14.5 percent from a year earlier, while imports fell 1.6 percent, leaving the country with a trade surplus of $47.3 billion for the month, the General Administration of Customs said on Friday. That compared with market expectations in a Reuters poll of a 7.5 percent rise in exports, a 3 percent increase in imports and a trade surplus of $27 billion. 3) The Bank of Japan kept its monetary policy unchanged at its August meeting, the central bank announced Friday in a statement following the conclusion of its monetary policy meeting. The Bank decided to retain its policy of expanding monetary base at an annual rate of 60-70 trillion yen. The Bank also left its asset purchase policy unchanged. Japans economy has continued to recover moderately as a trend, though the subsequent decline in demand following the front-loaded increase prior to the consumption hike has been observed, the bank said. 4) The Bank of England kept interest rates at their record low on Thursday, giving Britains fast economic recovery more time to build even as differences among its policymakers become more apparent. The BoEs Monetary Policy Committee left Bank Rate at 0.5 per cent, the level it has maintained since the depths of the financial crisis more than five years ago.
Posted on: Fri, 08 Aug 2014 05:46:13 +0000