BIZ BODIES AVOID

BLACK MONEY ISSUEOF SUBBARAO GETS 2 MORE YEARS .1

Issue 5

Aug 15-21

2011

INDIA CHINA MAINTAIN GOLD DEMAND DESPITE HIGH PRICES .............2

BANKS CUT US GDP FORECAST .....3

TO GO BEYOND IS AS WRONG AS TO FALL SHORT. CONFUCIUS

Weekly pulse
Food Inflation at 9.03% & Fuel Inflation at 13.13%
India's food price index rose 9.03% and the fuel price index climbed 13.13%. In the previous week, food and fuel inflation stood at 9.90% and 12.19% respectively. RBI has raised interest rates (11 times since March 2010 to control inflation. RBI Governor, D. Subbarao, last week said it was important to bring down inflation to maintain current level of consumption and sustainable growth and that the two factors which are keeping inflation high are global commodity prices and domestic demand. He also said that it was too early assume anything and change any of the monetary policy that the country follows, suggesting that the central bank may not be done with its monitory alterations.

Government Steps Up on Black Money Issue

The governments efforts to get the industry involved on the issue of black money has been given a cold shoulder with none of the business association and lobbies coming forward to provide views on how to tackle black money. A committee headed by the chairman of Central Board of Direct Taxes, set up by the Finance minister, had written to leading industry associations including CII, FICCI, Assocham, Nasscom, Bombay Chamber of Commerce, Indian Chamber of Commerce and PHD Chamber of Commerce, asking them to give their suggestions to strengthen the legal framework to curb generation of black money by July 15. Even after increasing the deadline to Sep 15, no response has been received yet.

Buffett Wants More Taxes on Mega Rich in US

Billionaire Warren Buffett urged the US Congress to raise taxes on the nations wealthiest individuals to help cut the US budget deficit, saying it wont inhibit investment or job growth. While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks, Buffett wrote. He added that nearly 40 million jobs were added between 1980 and 2000; and since then job creation has been low due to lower taxes. Buffetts advocacy of higher taxes for the mega-rich may reinforce President Barack Obamas call for an end to tax breaks for corporate-jet owners.

India, China maintain gold demand despite high prices

Despite higher prices, Indias appetite for gold continues unabated and in the second quarter of 2011, its demand grew 38% accounting for 32% of the global demand for gold. The demand in the Chinese also grew by 28% in the last quarter. The growth is likely to continue as investors look to diversify their portfolios and protect their wealth in these extreme volatile equity market. Forthcoming key gold purchasing festivals in India will also drive high levels of demand.

Post DLF Fine, Consumers to Act Against Project Delays

Encouraged by an order of the Competition Commission of India, or CCI, against DLF, the largest realty developer, home buyers hit by project delays and sudden change in building plans are considering legal action either through courts or CCI. The competition watchdog CCI on Tuesday slapped a penalty of . 630 crore on DLF for taking undue advantage of its dominant position in the market. The commission found DLF guilty of commencement of residential project The Belaire in Haryanas Gurgaon without approvals, increasing the number of floors mid-way through the project, delay in project completion and forfeiture of booking amount of some buyers.

Technology framework for GST launched in 11 states

States have agreed to roll out the IT framework needed for the proposed goods and service tax (GST), raising hopes to resolve the deadlocked discussions on the indirect taxes regime. The rollout of an IT framework will allow traders all over the country to use their permanent account number, or PAN, as the tax identification number for all direct and indirect taxes in the country. A common identification number benefits not just taxpayers but also helps authorities keep tab on transactions by establishing links with other tax payments and help in curbing tax evasion.

Banks Cut US GDP Forecast

Citigroup and JPMorgan Chase & Co cut their US growth forecasts as the global economy slows and officials struggle to stem Europes sovereign debt crisis. Gross domestic product (GDP) will grow 1% in the fourth quarter rather than the 2.5% previously forecast and 0.5% in the first quarter of 2012 instead of 1.5%, JPMorgan said. Citigroup cut its 2011 growth forecast to 1.6% from 1.7% and lowered its projection for next year to 2.1% from 2.7%.

FinX comes with yet another edition of crossword. First 3 correct entries will get their name featured on the Facebook page and the next Weekly Pulse.

BRAIN SCRATCHER

WEEKLY MARKET STATUS

-589.27** (-3.52%) -190.15 (-3.77%) -665.25 (-5.79%) -860.1 (-4.24%) -309.8 (-5.79%) -0.27 (-0.59%)*** -1.004 (-1.55%) +2162 (+8.37%) -2.69 (-3.15%)

SENSEX NIFTY DOW JONES

16141.67* 4,845.65 10817.65 19399.92 5040.76 45.6105 65.6845 27977 82.7

HANG SENG FTSE US$ EURO GOLD MCX

ACROSS 1.A flexible financial tool for divorcing couples. 3.Pay back to a customer who is not satisfied with goods or services bought 4.Korean car care products manufacturers. 7.An entity that comes to the rescue of a corporation that is being taken over. DOWN 2.Currency of Turkey. 4.A measure of the volatility of a stock in relation to the market 5.What you yell after selling all you owned to someone for $240 per share. 6.An acronym for the weighted average interest rate of the rates in Mumbai for Call Money. 8.______bond has speculative credit rating of BB or lower. 9.What connects Wealth, Property, Income, Goods and Entertainment.

WTI CRUDE OIL

*CLOSING SPOT PRICES AS ON LAST FRIDAY i.e. 19/8/2011 **RISE/FALL OVER WHOLE WEEK; FROM 15/16 Aug to 19Aug ***NEGATIVE SIGN INDICATE WEAKENING OF RUPEE

LAST WEEKS ANSWERS:

The Correct Entry was sent by Narotam Garg.