Global financial markets Shaky China & uneasy : US Fed worries about ripple effects

By Nelson D Schwartz 

Lots of buzz concerning the impact of higher interest rates in the United States. A major trading partner creating shock waves in the global economy. Stock market volatility spreading around the world. 


Sound familiar? It certainly does to Federal Reserve policymakers, who hesitated this week about lifting their key interest rate lever from close to zero because of worries about the ripple effects of a shaky Chinese economy and uneasy global financial markets. What they remember is a situation that played out more than 20 years ago, in 1994 and early 1995. 

Th country in question then was Mexico, as rising rates in the United States put pressure on an emerging market economy already suffering from a weakening currency and too much debt. 

Ultimately, Mexico had to be bailed out by the United States and the International Monetary Fund. And something like the so-called Tequila Crisis and other episodes of global economic turmoil in the 1990s are exactly what officials hope to avoid — or at least lessen — 

When Fed policymakers do eventually decide to move, they should emphasize that it is not the beginning of a relentless new tightening phase, said Robert E. Rubin, President Bill Clinton's Treasury secretary from 1995-99. 

At the time of the initial rate increase, he said, Fed officials should make clear that future increases will only come if the data suggests the economy continues to strengthen and that higher interest rates and a tighter monetary policy are required to head off .

At the time of the initial rate increase, he said, Fed officials should make clear that future increases will only come if the data suggests the economy continues to strengthen and that higher interest rates and a tighter monetary policy are required to head off the clear risk of inflation. 

RBI grants in-principle nod to 10 small banks' applicants

The Reserve Bank of India (RBI) today granted an in-principle nod to 10 applicants for small finance banks. According to a statement by the central bank, the in-principle approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by the RBI. "On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of in-principle approval, the RBI would consider granting them a licence for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949," adds the statement. According to the in-principle nod given by the central bank, the applicants cannot undertake any banking business until a regular licence is issued. A small finance bank, according to RBI, should have 75 percent of its adjusted net bank credit to be extended to priority sector and it should have atleast 25 branches in unbanked rural areas. A total of 72 players had applied for the small finance bank licence and three different committees contributed to the final decision. Here are the names of selected applicants: 

1. Au Financiers (India) Limited, Jaipur 2. Capital Local Area Bank Limited, Jalandhar 3. Disha Microfin Private Limited, Ahmedabad 4. Equitas Holdings P Limited, Chennai 5. ESAF Microfinance and Investments Private Limited, Chennai 6. Janalakshmi Financial Services Private Limited, Bengaluru 7. RGVN (North East) Microfinance Limited, Guwahati 8. Suryoday Micro Finance Private Limited, Navi Mumbai 9. Ujjivan Financial Services Private Limited, Bengaluru 10.Utkarsh Micro Finance Private Limited, Varanasi. Samit Ghosh, MD and CEO, Ujjivan Financial Services Private Limited, says the first obstacle for the company will be to convert its ownership structure from foreign to domestic. The micro-finance company has Rs 3300 crore assets under management (AUM) and caters to 24 states and union Territories. BS Radhakrishnan of Janalakshmi FInancial Services says the RBI's intention behind granting approvals to both small banks and payment banks (in the recent past) is to create competition so that customers can get a variety of choices. 

"The noteworthy part, though, he adds is that payment banks can only accept deposits, unlike us who can lend too. So the ability of small banks to look at both sides of the balancesheet will help the company," he explains. Guidelines to be met by small finance banks: - 75 percent of Adjusted Net Bank Credit to be extended to priority sector - 50 percent of loan portfolio to constitute loans & advances of upto Rs 25 lakh - 25 branches must be in unbanked rural areas - Maximum loan size & investment limit to single obligor restricted to 10 percent of capital funds - Maximum loan size & investment limit to a group restricted to 10 percent of capital funds - Require minimum paid up equity capital of Rs 100 crore. - Promoter stake must be at 40 percent in first 5 years - Promoter stake to be brought down to 30 percent within 10 yrs, 26 percent  in 12 years - Listing mandatory within 3 years of reaching Rs. 500 crore net worth - Maximum foreign shareholding of 74 percent allowed 

Shekhar's Tech-15.09.15-Intra Day Level

Nifty Intraday/Day trading levels-

Buy Abv. 7853 With SL 7834 For Targets (7892)-(7807)

Sell Below 7834 With SL 7852 For Targets (7795)-(7780)

As rules- 1. Take any entry/exit by filttering of 2-2.5 points even for reverse...

                      Check accuracies in a month atleast.

2. At buy targets...can sell with stop loss of +15 points from 2nd target

    Same as reverse ,

    At sell targets...can buy with stop loss of -15 points from 2ndt target

Performance- From 12h July to till now earned 

total 1121 points

Follow ups-
Live follow ups on- https://www.facebook.com/groups/481977645293227/

Shekhar's Tech-14.09.15-Intra Day Level

Nifty Intraday/Day trading levels-

Buy Abv. 7799 With SL 7780 For Targets (7837)-(7852)

Sell Below 7780 With SL 7798 For Targets (7741)-(7726)

As rules- 1. Take any entry/exit by filttering of 2-2.5 points even for reverse...

                      Check accuracies in a month atleast.

2. At buy targets...can sell with stop loss of +15 points from 2nd target

    Same as reverse ,

    At sell targets...can buy with stop loss of -15 points from 2ndt target

Performance- From 12h July to till now earned 

total 1139 points

Follow ups-
Live follow ups on- https://www.facebook.com/groups/481977645293227/

Wall Street climbs, S&P 500 posts best week since July-

The Dow Jones industrial average rose 102.69 points, or 0.63 percent, to 16,433.09, the S&P 500 gained 8.76 points, or 0.45 percent, to 1,961.05 and the Nasdaq Composite added 26.09 points, or 0.54 percent, to 4,822.34
.

US stocks rose on Friday and the S&P 500 posted its biggest weekly gain since July as

 investors weighed whether the Federal Reserve will raise interest rates next week. Energy 

shares dropped, however, after Goldman Sachs cut its oil price forecast through next year. 

Eight of the 10 S&P 500 sectors closed higher, led by gains in utilities, which tend to rise as 

bond yields fall. The index ended up 0.8 percent, while 10-year US Treasury note US10YT=RR 

yields dipped. Investors are awaiting next week's Fed monetary policy meeting and news on

whether it will raise benchmark US rates for the first time in almost a decade. "It's really Fed 

watch. That's what traders are waiting for," said Tim Ghriskey, chief investment officer of 

Solaris Group in Bedford Hills, New York. "There's speculation the Fed might hold off, and if 

they do, I think we'll see stocks rally. But to us, it's not a question of if the Fed raises rates but 

when. It's going to happen." The Dow Jones industrial average rose 102.69 points, or 0.63 

percent, to 16,433.09, the S&P 500 gained 8.76 points, or 0.45 percent, to 1,961.05 and the 

Nasdaq Composite added 26.09 points, or 0.54 percent, to 4,822.34. For the week, the S&P

 was up 2.1 percent and the Nasdaq rose 3.0 percent, registering their biggest weekly

 percentage gains since mid-July. The Dow was up 2.1 percent for the week, its best weekly 

percentage increase since late March. Stocks have been volatile since China devalued its

 currency in August amid concerns of sputtering growth in the world's second-largest economy.

 The S&P 500 has had moves of at least 1 percent in 11 sessions since Aug. 20. The Fed has 

said it will raise rates when it sees a sustained economic recovery, especially in the job market. 

The day's data signaled moderate economic growth and tame inflation. U.S. consumer 

sentiment dropped to its lowest in a year in early September, while producer prices for August 

were flat. Oil prices fell after the Goldman forecast, which cited oversupply and concerns over 

China's economy. Goldman said crude could fall as low as USD 20 a barrel. ConocoPhillips, 

down 2.2 percent at USD 47.36, was the biggest drag on the S&P 500. Gilead rose 2.2

 percent to USD 109.63 after the company's USD 10 billion debt offering this week fueled 

speculation it was planning a big acquisition. On the down side, Zumiez fell 32.5 percent to 

USD 14.63 after the sports apparel and accessories maker forecast third-quarter sales and 

profit below analysts' estimates. Volume was light. About 6.0 billion shares changed hands on 

US exchanges, compared with the 8.0 billion daily average for the past 20 trading days
, 
according to Thomson Reuters data. Advancing issues outnumbered declining ones on the NYSE by 1,629 to 1,429, for a 1.14-to-1 ratio on the upside; on the Nasdaq, 1,565 issues rose and 1,216 fell for a 1.29-to-1 ratio favoring advancers. The S&P 500 posted one new 52-week high and 10 new lows; the Nasdaq recorded 32 new highs and 87 new lows.

Shekhar's Tech-10.09.15-Due to big gaps todays levels won't work...

Nifty Intraday/Day trading levels-

Buy Abv. 7835 With SL 7816 For Targets (7873)-(7888)

Sell Below 7816 With SL 7834 For Targets (7777)-(7762)

As rules- 1. Take any entry/exit by filttering of 2-2.5 points even for reverse...

                      Check accuracies in a month atleast.

2. At buy targets...can sell with stop loss of +15 points from 2nd target

    Same as reverse ,

    At sell targets...can buy with stop loss of -15 points from 2ndt target

Performance- From 12h July to till now earned 

total 1104 points

Follow ups-

Live follow ups on- https://www.facebook.com/groups/481977645293227/

Due to gaps of more than 80-100 points my level doen't work...

but in morning was-buy nf 7695-90...see 2 times given 25-30 points...

By extra call got good points more than 35 points...

Improve Your Life: 10 Things You Should Do Every Day

10 things that scientific research shows can help improve your life.

1) Get out in nature

You probably seriously underestimate how important this is. (Actually, there’s research that says you do.) Being in nature reduces stress, makes you more creative, improves your memory and may even make you a better person.

2) Exercise

We all know how important this is, but few people do it consistently. Other than health benefits too numerous to mention, exercise makes you smarter, happier, improves sleep, increases libido and makes you feel better about your body. A Harvard study that has tracked a group of men for more than 70 years identified it as one of the secrets to a good life.

3) Spend time with friends and family

Harvard happiness expert Daniel Gilbert identified this as one of the biggest sources of happiness in our lives. Relationships are worth more than you think (approximately an extra $131,232 a year.) Not feeling socially connected can make you stupider and kill you. Loneliness can lead to heart attack, stroke and diabetes. The longest lived people on the planet all place a strong emphasis on social engagement and good relationships are more important to a long life than even exercise. Friends are key to improving your life. Share good news and enthusiatically respond when others share good news with you to improve your relationships. Want to instantly be happier? Do something kind for them.

4) Express gratitude

It will make you happier.

It will improve your relationships.

It can make you a better person.

It can make life better for everyone around you.

5) Meditate

Meditation can increase happiness, meaning in life, social support and attention span while reducing anger, anxiety, depression and fatigue. Along similar lines, prayer can make you feel better — even if you’re not religious.

6) Get enough sleep

You can’t cheat yourself on sleep and not have it affect you. Being tired actually makes it harder to be happy. Lack of sleep = more likely to get sick. “Sleeping on it” does improve decision making. Lack of sleep can make you more likely to behave unethically. There is such a thing as beauty sleep.

Naps are great too. Naps increase alertness and performance on the job, enhance learning ability and purge negative emotions while enhancing positive ones. Here’s how to improve your naps.

7) Challenge yourself

Learning another language can keep your mind sharp. Music lessons increase intelligence. Challenging your beliefsstrengthens your mind. Increasing willpower just takes a little effort each day and it’s more responsible for your success than IQ. Not getting an education or taking advantage of opportunities are two of the things people look back on their lives and regret the most.

8) Laugh

People who use humor to cope with stress have better immune systems, reduced risk of heart attack and stroke, experience less pain during dental work and live longer. Laughter should be like a daily vitamin. Just reminiscing about funny moments can improve your relationship. Humor has many benefits.

9) Touch someone

Touching can reduce stress, improve team performance, and help you be persuasive. Hugs make you happier. Sex may help prevent heart attacks and cancer, improve your immune system and extend your life.

10) Be optimistic

Optimism can make you healthier, happier and extend your life. The Army teaches it in order to increase mental toughness in soldiers. Being overconfident improves performance.