...“The volatile bond and equities market, the challenging banking and financial environment and the weakening ringgit brings both good and bad implications to banks and other organizations”. Discuss the role of treasuries in sustaining shareholders value in the light of the above statement. The increasingly volatile global bond & equities market, challenging bank and financial environment and the weakening in Ringgit had brought a significant amount of good and bad effect to the banks and other organization in the country. It is vital for treasuries to investigate the cause and evaluate the effect of these issues to their daily operation to ensure the right strategy could be employed. Recently, volatility in global financial market hiked to its highest level since 2011 mainly due to the rapid dramatic changes in the global equities market and its contagion effect on the global bond market. According to Irwin (2015), the root of cause of this global volatility outburst was mainly China. The main reason for a slide in Chinese stock market that impacted the global market would be the concern regarding the health of the nation’s economy due to the effort of transition from an investment and export led boom economy to something more sustainable in long term by the Chinese government. Besides, the surprise move by Chinese government to devalue its currency in part of an effort to align the Yuan with market forces also contributed greatly in the volatility (The Associated Press...
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...Introduction The projection of the state is provided by the concepts relevant to sovereignty and this is effectively established through a link relevant to both domestic and international realignments. Basing on various strands, nation-state, the composition that is reminiscent to the nation state is evolved within the spectrum of power and greatly advocated to help meet the significant compositions of the specific nation. The functions that help to define the law is based on exclusively new coordinations and the level of approach is objectively classified basing on the amount of political and social forces applied. For instance, the derivative involves The components which are supported by significant modern-state decisions are comparatively based on the growth potential of the modern-state. Political risk is a procedural occurrence that significantly affects to flow of modern-state process resulting into significant development processes. Brown, (2008) explained the political decisions that are deliberately made would lead to uncoordinated migration from a projected state to a more politically motivated system that is capable of being obstructed by political forces. The focus on important causative agents exemplifies the sharpened political forces as well as heightened security concerns. The established goals are distinctly created through the effectiveness of the risks related to economic turnovers and generated landscapes. Lind, (1995) critically reasoned that a nationalistic...
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...recovery begins, investors want higher dividends; CFOs want more investments to grow their businesses. Who wins? Poul Funder Larsen - CFO Europe Magazine March 18, 2004 The year 2002 was something of an annus horribilis for the media business, and Paul Richardson, CFO of global advertising and media services group WPP, faced his share of problems. After-tax profit at the £3.9 billion (€5.8 billion) group had slumped by nearly two-thirds, to £102m, amid the second year of contracting global advertising spending. With the war in Iraq looming on the horizon, stock prices were depressed and forecasts for media markets subdued. But when it came to declaring its dividend WPP and Richardson didn't waver — despite weakened profitability the company hiked its dividend by 20%. Priorities have changed at WPP over the last few years. Founded in the mid-1980s by Martin Sorrell, former group finance director of legendary ad agency Saatchi & Saatchi, the company grew rapidly for nearly two decades through acquisitions. Its share price also grew, culminating in a near tripling in 1999. With those kind of capital gains, investors were happy with a policy of paying just 20% to 25% of earnings as dividend. But, as with most high-growth media and technology stocks, the bubble burst and WPP's stock fell long and hard. In 2002 alone it more than halved, from above £8 to below £4. But in the same year WPP paid out 71%, or £62.5m of the £88m profit attributable to ordinary stock owners. For Richardson...
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...UNION BUDGET 2014 - 2015 UNION BUDGET 2014 - 2015 INDEX o o o o Key Highlights Tax Rates: Direct Taxes Market movements: Equity & Debt Economic update: o o o Budget summary Revenue snapshot Expenditure snapshot Sector updates Financial Sector Mutual Funds o o Equity Market: Outlook and Strategy Debt Market: Outlook and Strategy 1 UNION BUDGET, 2014 - 2015 KEY HIGHLIGHTS On the back of a decisive mandate, the first budget of the NDA government has laid out a broad policy framework in terms of sustained growth along with fiscal prudence. The finance minister has presented the budget amidst challenges like sub 5% growth and high level of inflation. The budget stresses the need to revive growth in manufacturing and infrastructure sectors. It also highlights the importance of improvement in Tax to GDP ratio and Non-tax revenues. • Tax revenues budgeted at 10.6% of GDP in FY15. • Tax budgeted to grow at 20% in FY15 compared with 10% growth seen in FY14 • Assumption of nominal FY15 GDP growth of 13.4%. • Retains fiscal deficit target at 4.1% of GDP. • Increased divestment target of Rs 634 bn • Boost to domestic manufacturing and investments, particularly in infrastructure and export-oriented manufacturing sectors • PPF scheme annual ceiling enhanced to Rs 1.5 Lakh p.a. from Rs 1 Lakh at present • Personal income tax exemption limit raised by Rs 50,000/-, to Rs 2.5 Lakh • Investment limit under section 80C of the Income tax Act raised to Rs...
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...authorities’ attention at restoring order. Accordingly, central banks and other regulatory bodies world-wide have been evolving prudential liquidity norms in order to impart stability to financial systems. Apart from implementing newer norms on liquidity, they have been devising ways of assessing objectively liquidity conditions in the markets. As an end to this objective, various central banks have started identifying the indicators of liquidity and preparing a composite index thereof in order to have a bird’s eye view of liquidity conditions across financial markets. In this study, a systemic liquidity index (SLI) is constructed considering prevailing rate variables across different financial markets in India. The SLI, so developed, is appropriately validated for its function as a metric for measuring systemic liquidity and its implications on the banks’ performance. Introduction “Unfortunately the word ‘liquidity’ has so many facets that is often counter-productive to use it without further and closer definition” - Charles Goodhart (Banque de France, 2008) The financial crisis of 2007-09 originated in the relatively small subprime lending market of the US, but engulfed the world financial markets very quickly and had devastating effect on the global economy. One of the important characteristics of this crisis was the existence of simultaneous liquidity problems across financial institutions and financial markets spread across many countries. In order to avoid such liquidity problems...
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...[pic] TERM PAPER OF MICRO ECONOMICS ON BUDGET 2009:AN EVALUTION OF ITS EFFECTS ON AAM AADMI INTRODUCTION OF BUDGET 2009 The main challenges outlined by the Finance Minister, Mr. Pranab Mukherjee, while presenting his Budget speech for the short term and long term perspective of the Indian economy are: 1. To lead economy to high GDP growth rate of 9% p.a. at the earliest. 2. To deepen and broaden the agenda for inclusive development. 3. To improve delivery mechanisms of the government. In keeping with tradition, the Budget proposals are a mixed bag of the good and the bad. Some of the biggest disappointments in the Budget proposals are that there are no provisions for any reforms in the FDI policy, the public sector enterprises such as banks and insurance companies are to remain in the public sector and there is a projected fiscal deficit of 6.8%. The major positives are the proposals to abolish Fringe Benefit Tax (FBT), Commodities Transaction Tax (CTT) as well as to phase out surcharge on income tax starting with its elimination in this Budget from personal income tax. Another significant benefit is the clarification on taxation of Limited Liability Partnerships (LLPs). This synopsis prepared by the tax team...
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...01 November 2011 Poverty Rises, Inequality Gap Widens Wealth of 40 richest Indonesians equivalent to 60 million people’s Key Points: • Poverty rate rises over the last three years, Indonesia is the worst country in Southeast Asia in combating poverty • Inequality gap widens, wealth and economic resources are concentrated in a small number of people only • Social and economic justice must be included as development target to prevent social explosion and maintain the sustainability of the development process Managing Director: Setyo Budiantoro, MA Perkumpulan Prakarsa Executive Director ndonesia is the poorest performer on poverty reduction in Southeast Asia region. It is calculated that 2.7 million people become poorer in the country over the last three years. This increase of extreme poverty is, shamefully, the worst one in the region. Indonesia even lags behind its neighboring countries such as Cambodia and Laos in reducing poverty, -not to mention when it is compared to the better off neighbors such as Thailand or Malaysia. Moreover, it is not just that the poverty increases, the share of wealth has also been more disproportionate. The accumulation of 0.02 % richest Indonesians’ wealth is equivalent to 25% of the country’s total GDP (Gross Domestic Product), and the wealth owned by only these 43 thousand people is equal to the wealth accumulation of another 140 million people. If this situation persists, people will feel that their sense of social-economic justice...
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...health financing options to manage problems arising out of growing set of complexities of private sector growth, increasing cost of care and changing epidemiological pattern of diseases. The new economic policy and liberalization process followed by the Government of India since 1991 paved the way for privatization of insurance sector in the country. Health insurance, which remained highly underdeveloped and a less significant segment of the product portfolios of the nationalized insurance companies in India, is now poised for a fundamental change in its approach and management. The Insurance Regulatory and Development Authority (IRDA) Bill, recently passed in the Indian Parliament, is important beginning of changes having significant implications for the health sector. The privatization of insurance and constitution IRDA envisage to improve the...
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...Executive Summary: XM satellite is a newly established company that has the potential and the ability to become leading satellite radio service provider in United States. At the time of the case, the demand for high quality, ad-free and mobile radio had a great potential and XM along with Sirius received a great opportunity to enter into the untapped market. XM’s only significant competition threat was Sirius. Both Companies were trying to capture market share from one another by creating superior customer access channels and build a brand image. These could have been done through retailers and strategic partnerships with radio producers for home and car markets. The home product brands include Sony, Pioneer, Matsushita and Car audio products include Sony, Pioneer Alpine, Delphi and Visteon The major issue for XM was how to market, how to price and what will be the value proposition. Since there were only two companies in the market the pricing of the service could significantly shift the demand and estimated/desired earnings. In order to thoroughly analyze the problem and seek viable alternative solutions I will try to list some of the key marketing issues. Key marketing issues include but are not limited to: * Creating brand awareness: In my opinion it is very important to mention that potential future customers are only the ones who are aware of the brand. The creation of brand awareness would be complicated given the company’s value proposition to keep ads off the...
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...Group Assignment – Macro-Economics | Assignment Cover Sheet Details | Name(s) | Saumil PabariSurbhi SardanaSonali Rawal | Roll No.(s) | GDEC12IBWM062GDEC12IBWM065GDEC12CMM30 | Email Address(s) | saumil.gdec12@spjain.orgsurbhi.gdec12@spjain.org sonali.gdec12@spjain.org | Course | MacroEconomics | Faculty | Prof. Dave Barrows | Assignment | Group Assignment | Due Date | 26 March 2013 | Date Submitted | 26 March 2013 | Submitted by | Surbhi Sardana | | | Executive Summary Brazil is the 5th largest country in the world, with an area of 8.515 km2, and a population of over 200 million. Brazil is a country with large natural resources and a large labor pool. It has managed to exploit these to become South America's leading economic power and regional leader, and one of the first in the area to begin an economic recovery. Highly unequal income distribution and crime remain pressing problems. Over 25% of population is still below the poverty limit. Brazil has its work cut out for itself where it has to be all set to host both the 2014 World Soccer Cup and the 2016 Olympic Games (Focus2move website). We begin this report by providing a summary of the economic activities taking place in Brazil that are likely to affect the future. Then, the report is divided into three parts; the first highlighting the macro-economic factors that will help forecast the future demand for passenger automobiles in the local market, the second highlighting the macro-economic factors...
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...Overview of the Book “Grip of Death” If you ever wondered where money comes from, how it's created, and why it's created in the way it is, then The Grip of Death is for you. This book explains how the banking system is actually a form of institutionalised fraud, based on the original activities of goldsmiths who would lend more "money" than they actually had on deposit. The only reason we accept the system without a second thought seems to be that it has the weight of tradition behind it. But the weight of tradition is not enough to justify its validity, as the author shows. The basic thesis of the book goes like this. Money, in the sense of credit, is not and has not for a long time been created by the governments of the world. Instead, it is created by the banks every time someone borrows from them, and along with it is created an equal amount of debt. This is how it works. You borrow a sum of money from the bank. They don't take it out of their assets--they can't; their assets belong to other people. Instead, they magic into existence a credit balance in your account. You spend the money, which goes round and comes back into the banking system: at the same time you are working to get money to pay off the debt you owe. The money the bank created, and the money you have made by working, come back to the bank, get added to the bank's assets, and get used as the basis for more and larger borrowing. Right now there is more money around than there has ever been--but it's almost...
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...A study on China and the World Economy of Today: A look at the impact of China’s Global economic integration and Prices. Chapter one: Introduction 1.1 Introduction Since 1978, the People’s Republic of China (PRC) government has stood out in restructuring its economy from a Soviet-style centrally planned economy towards a market-oriented economy nonetheless within the political framework, provided by the Communist Party of China. This system has been called "Socialism with Chinese characteristics" and is one type of mixed economy. “These reforms started since 1978 has helped lift millions of people out of poverty, bringing the poverty rate down from 53% of population in 1981 to 8% by 2001” (OECD 2002a). Over the preceding decades, the existence of China in the world’s economy is full-fledged. Laterally, China is properly or erroneously seen to have a massive impact on the world’s economy. In today’s trade market, China is at present generally regarded to be the world’s workspace, there-by relocating some traditional exporters of labor-intensive goods, irrespective of the fact that its economy is constantly woven into the fabric of progressive split chain of making (Menzie D.2009). The emergence of China as an industrial and export livewire is undoubtedly one of the most significant forces reshaping the present-day world economy. Barry E and Hui T in 2005 stated that “A now standard way of conveying this point is to observe that the increase in employment...
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...Business communication Project On [pic] Submitted to Ms. Aastha dewan Prepared by:- Kaushal Dugar Ruchir Rahul Harsh Gupta Jitisha Malhotra INDEX |Serial no. |Topic |Page no. |Remarks | |1 |Acknowledgements | | | |2 |Introduction | | | |3 |Effects of inflation | | | |4 |Causes of inflation | | | |5 |Controlling inflation | | | |6 |Current situation of inflation in India | | | |7 |Extracts of the Reserve Bank of India’s document released on | | | | |July 28, 2008 ...
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...Economic outlook and long-term repercussions 14 5. Conclusion 18 1. Introduction to the financial crisis The Great Recession began in 2007 as the United States housing market fell into a sharp decline. Many economists consider the resulting financial crisis to be the worst financial crisis since the Great Depression. While the crisis can be traced back to a variety of economic origins, the volatility that existed in the world economy from the 1990’s undoubtedly played a large role (Roubini, 2010). The Asian Crisis that arose after the fall of car manufacturer Kia in 1997 and the burst of the Dotcom Bubble in the early 2000’s resulted in many wealthy countries decreasing interest rates to all-time lows to encourage growth in their economies (Roubini, 2010). These low interest rates led consumers, particularly those in the US, to borrow more money than they could afford to repay (Roubini, 2010). During the financial crisis, credit defaults brought the solvency of a number of major international banks into question, and several governments ultimately had to bail out their banking systems (Rose & Spiegel, 2009). Problems that arose primarily in the United States quickly spread around the world due to the resulting contagion (Rose & Spiegel, 2009). Ireland and Iceland are prime examples...
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...SPECIAL ARTICLE Wheat Price Inflation in Recent Times: Causes, Lessons and New Perspectives Sthanu R Nair, Leena Mary Eapen In this paper we demonstrate that the high level of wheat procurement during 2008-09 and 2009-10 at a higher minimum support price was necessitated by the difficult circumstances that the government faced, characterised by a precarious buffer stock position from 2005 to 2008. Hence, blaming larger procurement and a higher msp alone for the soaring wheat prices between 2008 and 2010 is an oversimplification of the problem. The experience with wheat procurement in the recent past suggests that foodgrain procurement at a lower msp may not always be feasible. Finally, it is shown that the inability of the government to utilise the abundant wheat stocks for the benefit of the consumers during the recent phase of high foodgrain prices was due to the poor offtake of the grain allotted to the states, not to the operations of private trade via the government’s open market sales window. 1 Introduction The issue of high inflation in food prices has been at the forefront of the economic policy debate in India for quite some time now. For the government and policymakers, in terms of identifying appropriate solutions no other domestic economic problem has proved to be as challenging as food inflation. Perhaps for the first time in recent history a sense of helplessness has settled over the government administration in resolving a key economic challenge facing...
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