The Slack Discussions
The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note by replying to this email.
A brief summary of some of the interesting things discussed there in the last few days:
#general: When we lowered prices, I got threatening calls from brokers: Nithin Kamath, Zerodha
(Link)
#macronomics: Growth Likely to Decelerate in Q1 FY17: Ambit
Economic growth in the first quarter of the current fiscal may have decelerated and is unlikely to pick up for rest of the year due to slowing private capex and restricted bank credit, a report said.
As per an analysis by financial services and investment research firm Ambit, the first quarter data for 2016-17 suggests that “economic growth in all probability decelerated over April-May 2016” (Link).
#general: Government to make changes in section 56(2) of Income Tax Act in a bid to promote start-ups
In many cases, the valuation of start-ups is far in excess of market value as it is based on the promise of the idea and not the immediate worth. (Link)
#general: Over 400 entrepreneurs queue up for tax benefits
Over 400 budding entrepreneurs have filed applications with the Department of Industrial Policy and Promotion (DIPP) for recognition as innovative start-ups to avail tax breaks and other benefits. (Link)
#general: What young adults think about insurance?
Here are some of the questions that young adults frequently ask about insurance. (Link)
#macronomics: Brussels eyes legal options to force quick Brexit
(Link)
#macronomics: They Broke the Bank of England Together – Now Druckenmiller and Soros Are Buying Barrick Gold
(Link)
#general: Raghuram Rajan announces will step down as RBI Governor in September
The RBI Governor said in a staff letter that he would like to return to academia. (Link)
#general: RBI releases Governor’s message to staff for wider dissemination
(Link)
#general: Seven Names On Long List to Replace RBI’s Raghuram Rajan: Official
There are seven candidates on a long list to replace Reserve Bank of India Governor Raghuram Rajan, a senior government official told Reuters on Saturday.
The candidates are Vijay Kelkar, Rakesh Mohan, Ashok Lahiri, Urjit Patel, Arundhati Bhattacharya, Subir Gokarn and Ashok Chawla, the official said, speaking on condition of anonymity due to the sensitivity of the matter. (Link)
#general: Raghuram Rajan-mukt RBI: ‘was open (to second term), consulted govt… will return to academia’
Silent when he was insulted, Govt lets him go.
(Link)
#general: With Rajan Undone by Indian Politics, Pressure Rises on Modi
Raghuram Rajan will exit India’s central bank after unnerving political leaders with calls for free speech and religious expression. The focus now shifts to whether Prime Minister Narendra Modi can find a successor able to command credibility both with investors and his Hindu-based party. (Link)
#general: SBI Chief Arundhati Frontrunner to Replace Rajan as RBI Governor
With Reserve Bank of India (RBI) Governor Raghuram Rajan unwilling to head the central bank for the second term, senior government officials say that State Bank of India (SBI) Chairperson Arundhati Bhattacharya is the frontrunner among the six contenders for the post.
The long list to replace Rajan includes RBI Deputy Governor Urjit Patel, former deputy governor Subir Gokarn, economists Rakesh Mohan and Parthasarathi Shome. (Link)
#general: Our view: The Raghuram Rajan affair
The final responsibility for not standing by Rajan should rest with Prime Minister Narendra Modi and finance Minister Arun Jaitley. (Link)
#general: The Economics of Raghuram Rajan
The RBI governor has at times challenged the mainstream economics consensus, and at times bowed to it. (Link)
#general: NAMO’s Mishandling of L’Affaire Raghuram Rajan Irks Stock Market Pundits
While eminent experts are divided in their opinion on whether Raghuram Rajan ought to have been offered a second term or not as RBI Governor, all are unanimous that NAMO handled the issue in a clumsy manner and has suffered a “self goal”. (Link)
#general: Rexit: Sebi, exchanges beef up surveillance to tackle Raghuram Rajan exit jitters
Regulator Sebi and stock exchanges have beefed up their surveillance and risk management mechanism to ring-fence capital markets from any excessive volatility tomorrow on account of RBI Governor Raghuram Rajan’s surprise decision against a second term. (Link)
#general: Indian central bank chief felt undermined in weeks before quitting: sources
“He felt it would belittle the position of the RBI governor if he had to appear before the committee,” said one senior commercial banker who knows Rajan personally but had not spoken to him since his decision. (Link)
#general: India losing a skilful eco thinker: Amartya Sen on Rajan’s exit
Nobel laureate Amartya Sen on Saturday said India is losing one of the most skillful economic thinkers in the world. (Link)
#general: RBI Governor Raghuram Rajan’s tenure in 9 charts
While fortuitous factors like a drop in commodity prices have helped steady the fundamentals of the economy, so have sound macroeconomic policies. (Link)
#stocks-fundamentals: SBI in ‘Hall of Shame’ of banks funding cluster bomb makers
State-run banking behemoth SBI has been named in a ‘Hall of Shame’ list of 158 banking and financial institutions globally that have invested billions of dollars in companies making cluster bombs. (Link)
#general: Why India has a big problem, and it’s got to do with small cities
(Link)
#general: What Makes Azim Premji a Happy Man?
It is difficult to imagine that Wipro’s Azim Premji, one of the richest men in India, living a frugal life. But all evidence indicates that it is the path to happiness. (Link)
#macronomics: EU referendum: Which papers are backing Brexit and Remain?
The Mail on Sunday and The Observer backed Remain while The Sunday Times and The Sunday Telegraph backed Leave. (Link)
#macronomics: Could Brexit Lead to New Scottish Referendum?
A vote to leave the EU may lead to a gear change on the road to another Scottish independence referendum. (Link)
#macronomics: Brexit Vote, Yellen Testimony, Zuckerberg: Week Ahead June 20-25
(Link)
#general: Combined NBAD and FGB would be Middle East’s largest bank, but decision months away
A merger of National Bank of Abu Dhabi (NBAD) and its competitor FGB would create the Middle East’s biggest lender and one that is strong in corporate and retail banking in the emirate, analysts said.
It’s a combination that would also help improve profitability in a crowded industry, especially at a time when lower oil prices are hampering growth prospects. The two state-run banks yesterday confirmed that while they were in talks, a deal is not a sure thing. However, analysts said it makes sense. (Link)
#macronomics: British politician quits Brexit camp, citing ‘lies and xenophobia’
A senior British politician on Monday accused those campaigning for Britain to leave the European Union of spreading lies, hate and xenophobia, saying she was switching to the “Remain” camp. (Link)
#fx-commodities: Nigerian naira tumbles 30 percent after peg removed
Nigeria’s naira NGN=D1 slumped 30 percent against the dollar on Monday after the central bank removed its currency peg in an effort to alleviate the chronic foreign currency shortages choking growth in Africa’s biggest economy.
The central bank sold $530 million for 280 naira per dollar at a special auction and later sold a further $86.5 million directly on the interbank market at 281 to 285 naira, traders said. (Link)
#general: Zerodha’s AI will tell you how to invest
Zerodha will launch a thematic investing product platform and a separate venture through its in house incubator Rainmatter. (Link)
#general: Financial planning – Smart way of Mis selling
(Link)
#general: The numbers RBI governor Raghuram Rajan did not get: 2014 and 282
(Link)
#macronomics: Brexit Vote Count: What to watch for as the Night Unfolds
Want to follow the British Brexit referendum? Here’s everything you need to know to get through results night. (Link)
#general: Identifying Bad Trading Habits
(Link)
Disclaimer
Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.
