On Slack: GST - A Constitutional Compulsion, Fixing The Plumbing, Gains Using The CAPE Ratio, Governance Controversies, Modern Money Theory, Sharpe Ratio & Beta and more....
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 or login here using your premium credentials.
A brief summary of some of the interesting things discussed there in the last few days:
#general: GST roll-out by September 2017 is a constitutional compulsion: Arun Jaitley
The demonetisation move along with the GST will help India’s GDP to grow bigger, arresting concerns over its long-term impact on the economy, says Arun Jaitley. Livemint
#general: You Would Have Missed 780% In Gains Using The CAPE Ratio, And That’s A Good Thing
#general: Corporate defaulters may lose much protection under new code
Legislative changes are combining with the stress of the shock demonetising of high value notes to corner corporate defaulters, cozy after declaring themselves as sick units, because they are finally finding themselves within a striking distance of their creditors, with the disbanding of the Board of Industrial and Financial Reconstruction (BIFR). Economic Times
#general: Uber India posts 442% jump in revenues to Rs 374 crore
While the company has not filed latest profit numbers in its annual return, it has been profitable in the two years after inception. Uber did not comment on financial numbers. Economic Times
#general: T N Ninan: Four weeks later
The net benefit of demonetisation would be quite small when placed against the scale of disruption that has been caused. Business Standard
#macronomics: RBI Governor Urjit Patel may cut rate by 0.25% in policy review on Wednesday
Reserve Bank Governor Urjit Patel is expected to again go in for a 0.25 per cent interest rate cut at its next policy review on Wednesday, with an aim to cushion the impact of demonetisation, a majority bankers feel. Economic Times
#general: How PM Modi’s note recall narrative has fallen apart
Black money stashes are not turning into rubbish, but the government’s stated objectives are. Indian Express
#general: Rs. 2.5 lakh crore of demonetised notes may not come back to the system
Since the Prime Minister announced demonetisation on November 8, there has been a lot of calculation and research being done, on how much money will come back to the system and how much will not. Dr Soumya Kanti Ghosh of State Bank of India calculates that that around Rs 2.5 lakh crore will not be returned to the system. Here is his logic. Money Life
#general: $17bn of FCNR deposits redeemed in Nov, but here’s why we didn’t know
November saw redemptions of more than $17 billion of the foreign currency non-resident dollar deposits, out of about $27 billion raised three years ago. But, the huge pressure on the currency market largely went unnoticed because of the demonetisation exercise. Rediff
#general: Harried bankers want to shut shop till there’s enough cash
Bank employees want branches to be closed until the Reserve Bank of India (RBI) supplies sufficient quantities of currency notes as irate customers increasingly harass staffers and indulge in arson and physical assault amid a cash shortage following demonetisation of high denomination notes last month. Economic Times
#general: Two Governance Controversies That May Have Prompted Chitra Ramkrishna’s Resignation
In a sudden and shocking development Chitra Ramkrishna, the managing director and chief executive officer of the National Stock Exchange, the country’s largest stock exchange, has stepped down almost 17 months before her term comes to an end. Bloomberg Quint
#general: Has India stumped Netflix and Amazon Prime Video?
While Netflix and Amazon Video have been at war globally, Indian players seem to be surging ahead with customisations tailored for the Indian market. Business Standard
#general: Fixing the plumbing—of our political economy
The Modi government’s reforms initiatives, which have all involved a progressive ratcheting up of steps to modernize the Indian economy and governance. Livemint
#general: Where do microfinance firms go from here?
The industry is limping back to normalcy, but the aggressive push to a cash-less economy will force the MFIs to change their business model if they want to survive. Livemint
#general: It is a buy zone right now: Anugrah Srivastava, Founder, Smallcase Technologies
In a chat with ET Now, Anugrah Srivastava, Founder, Smallcase Technologies speaks about gauging the market mood. Edited excerpts. Economic Times
#general: What Does Modern Money Theory Tell us About Demonetisation?
Demonetisation could have a contractionary and deflationary effect if the government does not increase spending to compensate for extinguished currency. The Wire
#bonds: Investment in mutual funds via e-wallets to be a reality soon
Digital wallet companies in India might soon find a new set of customers. To provide a fillip to the government’s plan to enhance digital transactions in the country, market regulator Securities and Exchange Board of India is expected to soon allow investment in mutual funds through e-wallets, says an article in the Mint today. Money Control
#general: Mutual funds hike stake in Tata Motors, Tata Steel despite recent turmoil
Fund managers have cut their stakes in TCS (Tata Consultancy Services), Tata Motors DVR (Differential Voting Rights) and Tata Power, while they have increased their stakes in Tata Motors and Tata Steel. Economic Times
#general: Yes Bank partners Ola to set up 30 mobile ATMs in 10 cities
Yes Bank has partnered cab aggregator Ola to set up mobile ATMs across 30 locations in the country that will allow people to withdraw up to Rs 2,000 per card. Economic Times
#general: Thailand is launching a stock exchange just for startups; no revenue required
The report by Nikkei Asian Review states that companies could list on the very day they are established, even without any record of earnings. E27
#macronomics: RBI Auctions Treasury Bill Worth Rs. 60,000 Crore Under Market Stablisation Scheme
MSS bonds are issued with the objective of providing the central bank with a stock of securities with which it can intervene in the market for managing liquidity. NDTV
#macronomics: Open letter to Urjit Patel
RBI needs to redeem itself with effective communication, greater transparency and better implementation. Livemint
#backtobasics:
Winton Capital’s David Harding on making millions through maths - Climateer Invest
**Sharpe Ratio & Beta **– Value Research Online
10,000 hours or 10 minutes: what does it take to be a “world-class” investor? – Pension Partners
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