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On Slack: 8% GDP Growth Milestone? Black Money Prosecution, Brexit on Track, Forex Reserves Down, Mopeds Gain Speed, Penny Stocks Scam, Possible President Impeachment, Speeding Car Hitting A Wall, The Dollar Problem and much more….


The Slack Discussions

Slack Logo2The 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: Beware! Bank account misuse for black money can invite prosecution

Government today cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30. Economic Times

#general: Rs 60,000 is the new Rs 1 lakh in Uttar Pradesh real estate market

Manish Gupta, 33, a software developer based out of Lucknow, has been pestered by calls from real estate agents. On the offer was a chance to invest black money in the business. “The offer was 60:40 on the deal. I then learnt that one lakh rupees, comprising Rs 1,000 and Rs 500 notes, will be equivalent to Rs 60,000 in the deal,” said Gupta. Economic Times

#macronomics: Prime Minister Theresa May tells Germany: Brexit preparations are ‘on track’

“I want to see this as a smooth process, an orderly process, working towards a solution that is in the interests of both the United Kingdom but also in the interests of our European partners too,” May said. Indian Express

#fx-commodities: Forex reserves down $1.19 bn to $367 bn

India’s foreign exchange reserves declined by $ 1.190 billion to $ 367.041 billion in the week to November 11 on account of fall in foreign currency assets, Reserve Bank of India said today.
In the previous week, the reserves had increased by $ 1.074 billion to $ 368.231 billion. They had touched all time high of $ 371.99 billion in the week to September 30, this year. Economic Times

#general: It is high time ‘Hindu Undivided Family’ ceases to be a tax entity

An HUF entity is against the rights enshrined in our constitution and has become a mere tax planning tool in the hands of tax consultants who advise affluent Hindus. Business Standard

#general: Opinion is the lowest form of knowledge

If this passes muster, all I have on offer is an argument on why I have no opinion about the demonetization issue. Livemint

#macronomics: Donald Trump’s attorney general pick Jeff Sessions will not go easy on corporate crime

President-elect Donald Trump has named Jeff Sessions, a four-term senator from Alabama and former federal prosecutor, to lead the US Justice Department. DNA India

#general: Demonetisation Is Like A Speeding Car Hitting A Wall, Says Kenneth Andrade

Bloomberg Quint

#general: Demonetisation has achieved 50% of objective: Subramanian Swamy

The senior BJP leader and Rajya Sabha member on demonetisation, the harm done by corruption to India, his equation with Narendra Modi and other issues. Livemint

#stocks: Mopeds gain speed, overtake scooters in growth

Sales of the low-priced two-wheeler are growing at almost 28%, against 24% and 12% in scooters and motorcycles. Business Standard

#general: Raise 5-year rates for elderly, urges depositors’ body

With falling deposit rates pinching golden-agers the most, the All India Bank Depositors’ Association wants the government to protect their interests by pegging the return they earn on five-year deposits with banks and post offices at a mark-up of at least two percentage points over the average yield on the government security of comparable maturity. Hindu Business Line

#macronomics: Growth between 7 and 8% likely, says Panagariya

NITI Aayog vice-chairman Arvind Panagariya has said that the Indian economy will grow between 7% and 8% for 2016-17. However, he said that he isn’t certain about hitting the 8% GDP growth milestone over a full financial year by 2018-19. The Hindu

#general: Professor who correctly forecast Trump’s victory predicts possible impeachment for the president-elect

Allan Lichtman, a political historian at the American University, told CNBC’s “Squawk Box” on Thursday that Trump’s history of playing “fast and loose with the law,” his unpredictability as well as lack of public service experience could lead to an impeachment. CNBC

#bonds: The Emerging Markets’ Dollar Problem

Investors are fleeing funds that focus on the debt, yanking a record $6.6 billion from emerging-markets bond strategies in the week ended Nov. 16, according to EPFR Global data. The debt is poised for its biggest monthly loss since the so-called taper tantrum of 2013, when Federal Reserve Chair Ben Bernanke hinted that the central bank might soon slow its monthly bond purchases and threw markets into a tizzy. Bloomberg

#general: Promoter share pledges continue to remain high

Lack of access to cheaper capital and no signs of an earnings recovery have had a negative impact on mid-sized and small firms and their promoters, say experts. Livemint

#general: Penny stocks scam: Stockbrokers turned a blind eye to KYC norms

A probe by the income tax dept has uncovered a trail of Rs38,000 crore involving manipulation in 84 listed penny stocks for converting black money into white. Livemint

#macronomics: Ride the Wealth Wave to Emerging-Market Stocks

Emerging-market (EM) wealth creation follows an established pattern: Pro-growth reforms or improving terms of trade reduce a country’s cost of capital, luring more companies to the public markets. The markets become more diverse and liquid—and more enticing to investors. In a virtuous feedback loop, rising investment inflows further reduce capital costs, spurring more public listings and even greater investor interest. ABGlobal

#general: The most sweeping currency policy change in decades

We were surprised by the dramatic action taken by Narendra Modi, the Indian Prime Minister, to demonetize the existing Rs.500 and Rs.1000 rupee notes. This is by far the most sweeping change in currency policy that has occurred anywhere in the world in decades. Financial Times


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