How Property Booms Eat Our Economic Future

This October, U.S. housing sales hit their highest level since 2006. China’s residential real-estate investment was up 14% relative to the same month last year. Around the world, many housing markets have shrugged off a colossal economic slump, helped by low interest rates. In the short term, such investment is a boost to economic activity in a year where headline figures have collapsed. But there are significant downsides. The fact that housing booms can be a longer-term risk to financial stability is well known, but a growing body of research suggests that even where there is no market blowup, surges in […]

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Q2 GDP LIVE: How deep is economic fall? India may have fallen into recession, but recovery visible

While previously, the country’s GDP shrank by a record 23.9 per cent in the fiscal’s first quarter, the economy is estimated to have substantially narrowed contraction to a single digit in Q2. GDP Q2 FY 2020-21: The Ministry of Statistics and Programme Implementation (MOSPI) is scheduled to release the fiscal second quarter GDP results today. It is expected that India’s economy has undergone a significant improvement in the July-September quarter after the lockdown restrictions were gradually lifted. While previously, the country’s GDP shrank by a record 23.9 per cent in the fiscal’s first quarter, the economy is estimated to have substantially […]

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Budget to unveil large DFI for infrastructure

While the proposed DFI would mobilise resources from assorted sources, including budgetary funds, household savings would be leveraged too. A new, large development financial institution (DFI) is being born under the partial ownership of the government and with considerably higher risk-tolerance than banks or even state-run, sector-specific lenders like PFC-REC or IRFC. An announcement in this regard is likely in the Budget FY22. The proposed entity will have the specific mandate to finance large rural infrastructure projects that require long-term finance and could serve as antidote to general investment famine during economic downturns. It will work under an innovative framework, where […]

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Ease of doing biz: More minor offences to be decriminalised

In this context, NITI Aayog has undertaken an exercise the with ministries concerned to identify the specific provisions under different Acts where decriminalization can be attempted. After decriminalising minor offences under the Companies Act, the Narendra Modi government has embarked on reducing the risk of imprisonment for omissions that aren’t necessarily mala fide, under 28 economic and financial sector statutes, including the income tax Act, Prevention of Money Laundering Act (PMLA), Sebi Act, RBI Act, Banking Regulation Act, SARFAESI Act and the Collection of Statistics Act. Criminal penalties, including imprisonment for minor offences, are one of the major reasons for subdued […]

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German Prosecutors Examine Ernst & Young’s Role in Wirecard Collapse

German prosecutors are examining Ernst & Young’s role in the collapse of disgraced payments operator Wirecard AG, ratcheting up pressure on the audit firm. Munich prosecutors said they are evaluating a report by the country’s accounting watchdog into the company’s collapse this summer. The watchdog, known as Apas, launched an investigation into the work of the auditing firm’s local affiliate, EY GmbH, after Wirecard admitted that more than $2 billion of cash it had said was held in bank accounts on its behalf didn’t actually… Source link

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WSJ News Exclusive | U.K.’s Centrica Seeks to Sell Liquefied Natural Gas Portfolio

Centrica PLC, a major U.K.-based energy supplier, is trying to sell its portfolio of liquefied natural gas supply contracts and other assets, according to people familiar with the matter, as it seeks to simplify its operations amid volatile LNG prices. The targeted value from such a deal couldn’t be learned. However, similar recent transactions suggest that Centrica, the owner of energy and electricity service provider British Gas, may actually need to pay any potential buyer to take the LNG business off its hands, underscoring… Source link

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