Saturday, March 6

Month: September 2018

NBFCs: India’s shadow banking sector likely to face shake-up after default

NBFCs: India’s shadow banking sector likely to face shake-up after default

Finance
By Krishna N. Das and Neha Dasgupta India's burgeoning shadow finance sector is likely to face a shake-up after defaults at one major lender battered the nation's financial markets in the past week and reinforced worries about credit risk. Industry officials and experts say they expect Indian regulators to cancel the licences of as many as 1,500 smaller non-banking finance companies because they don't have adequate capital, and to also make it more difficult for new applicants to get approval. The Reserve Bank of India (RBI), which has been tightening rules for non-banking financial companies (NBFCs), did not respond to requests for comment. Better capitalised and more conservatively run finance firms are likely to swallow up an increasing number of smaller rivals, the experts said. Tha...
SEC sues Musk for fraud, seek to remove him from Tesla

SEC sues Musk for fraud, seek to remove him from Tesla

business
NEW YORK/SAN FRANCISCO (Reuters) - The U.S. Securities and Exchange Commission on Thursday accused Tesla Inc (TSLA.O) Chief Executive Elon Musk of fraud and sought to remove him from his role in charge of the electric car company, saying he made a series of “false and misleading” tweets about potentially taking Tesla private last month. Musk, 47, is the public face of Tesla and losing him would be a big blow for the money-losing car maker which has a market value of more than $50 billion, chiefly because of investors’ belief in Musk’s leadership. The Department of Justice, which has the authority to press criminal charges, has also questioned the company about Musk’s tweets, the company said this month. Tesla shares tumbled 12 percent in after-hours trading. “Elon is Tesla and Tesl
Ford wants ‘certainty’ in any U.S. trade deals: chairman

Ford wants ‘certainty’ in any U.S. trade deals: chairman

business
DEARBORN, Mich. (Reuters) - As the Trump administration negotiates new trade pacts with Canada, China and other countries, Ford Motor Co (F.N) Executive Chairman Bill Ford said on Thursday the automaker wants deals that allow it to plan and invest with “certainty.” FILE PHOTO: Newly assembled Ford 2018 F1-50 pick-up trucks are loaded on to a transport truck before being shipped to dealers during the 100 year celebration of the Ford River Rouge Complex in Dearborn, Michigan, Sept. 27, 2018. REUTERS/Rebecca Cook/File PhotoBill Ford, celebrating the 100-year anniversary of a plant in Dearborn, Michigan, where the No. 2 U.S. automaker is based, said his executives have maintained close contact with U.S. President Donald Trump’s trade negotiating team. “We just want to work with the administ
More bad news for renewables; no priority lending

More bad news for renewables; no priority lending

Finance
By Rituparna Nath The government has ruled out writing to the RBI seeking priority status for renewable sector for limitless borrowing, ET Now learns from government sources. “We believe there is enough liquidity in the financial system for renewable companies to tap into, and have thus decided to not write to the RBI to grant priority sector status,” the government official said. This had been one of the key demands of the renewable energy companies like Suzlon, ReNew Powet and Inox Wind that met with the Power Minister RK Singh on September 19 in New Delhi. At a time, when banks are shying away from investing in renewable projects, it has been a long standing demand of the industry to give priority status to trigger cash flow into the sector. Banks on the other hand have been reluc
‘We need to de-stress the travel lifestyle’

‘We need to de-stress the travel lifestyle’

investment
As United Continental Holdings turns its business around after a host of public relations issues crippled the airline giant's stock, its CEO is trying to heighten United's focus on the customer, he told CNBC on Wednesday. "We need to de-stress the travel lifestyle," United Continental CEO Oscar Munoz told "Mad Money" host Jim Cramer in an exclusive interview. "How do we keep you informed? How do we keep you focused and directed when something goes wrong?" he continued. "But, more importantly, before you even leave your house, you know your flight's on time, you know where you're headed." ...
Asian shares weather Fed rate hike, U.S. bond yields fall

Asian shares weather Fed rate hike, U.S. bond yields fall

business
TOKYO (Reuters) - Asian shares held firm on Thursday, outperforming sagging Wall Street shares, and U.S. bond yields fell after the Federal Reserve raised interest rates as expected, sticking to its script of gradual policy tightening. FILE PHOTO: A man looks at a mobile phone next to an electronic board showing Japan's Nikkei average outside a brokerage in Tokyo, Japan, March 23, 2018. REUTERS/Toru HanaiMSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, with South Korea’s Kospi hitting three-month highs. Japan’s Nikkei briefly touched an eight-month high as automakers rose after the United States indicated it would not impose further tariffs on Japanese automotive products for now, though it was down 0.1 percent at midday in choppy trade. On the whole, Asia f
Bank credit rose by 13.46%; deposits by 8.58%

Bank credit rose by 13.46%; deposits by 8.58%

Finance
Bank credit rose by 13.46 per cent to Rs 87,98,812 crore in the fortnight ended September 14, according to the recent RBI data. In the year-ago fortnight, bank advances stood at Rs 77,54,406 crore. In the fortnight ended August 31, 2018, bank loans had grown by 13.49 per cent to Rs 87,89,259 crore. In the reporting fortnight, deposits rose by 8.58 per cent to Rs 115,70,748 crore, from Rs 106,55,722 crore in the fortnight ended September 15, 2017, the RBI data showed. Bank deposits had grown by 8.88 per cent to Rs 116,45,870 crore in the fortnight ended August 31, 2018. In July 2018, non-food bank credit rose by 10.6 per cent, compared with an increase of 5.3 per cent in July 2017. Loans to agriculture and allied activities rose by 6.6 per cent in July, against an increase of 6.8 per cen...
Fed raises rates, sees at least three more years of economic growth

Fed raises rates, sees at least three more years of economic growth

business
WASHINGTON (Reuters) - The Federal Reserve raised interest rates on Wednesday, as expected, and forecast three more years of economic growth as the U.S. central bank left its policy for steady rate rises in place. In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent. The Fed still foresees another rate hike in December, three more next year, and one increase in 2020. That would put the benchmark overnight lending rate at 3.4 percent, roughly half a percentage point above the Fed’s estimated “neutral” rate of interest, at which rates neither stimulate nor restrict the economy. “The thing that folks were watching for, whic
Hypersonic missiles are the Pentagon’s next big bet

Hypersonic missiles are the Pentagon’s next big bet

investment
J.P. Morgan took a closer look Wednesday at hypersonics, a new missile technology, and named nearly all the defense contractors as key players in the sector, with Lockheed Martin out to an early lead. "While sales are still modest, we see substantial growth potential by the mid-2020s to [greater than $5 billion], perhaps significantly more," J.P. Morgan analyst Seth Seifman said in a note. Seifman cited Michael Griffin, under secretary of Defense for researching and engineering, saying Griffin "believes that hypersonics development is currently the highest technical priority for the Pentagon." A hypersonic weapon is a miss...