Thu, 22nd June 2017

Anirudh Sethi Report


Archives of “February 9, 2017” Day

Bitcoin Plunges After Chinese Exchanges Suspend Bitcoin Withdrawals

Yesterday’s ominous closed-door meetings between the PBOC and bitcoin exchanges, appears to have had a dramatic effect, and as at least two Chinese bitcoin exchanges, Huobi and OKCoin, reported moments ago, all bitcoin withdrawals are now effectively suspended.

The result on bitcoin price was immediate and dramatic with bitcoin traded in China tumbling 7%.

US : Initial Jobless Claims Plunge To 44 Year Lows

While continuing claims continue to rise post-election…

Initial jobless claims have collapsed back to with 1k of the lowest levels since 1973.

  • *U.S. JOBLESS CLAIMS FALL 12,000 TO 234,000; EST. 249,000

While everything is awesome with this print, one wonders what happens next?

Which is more likely – higher or lower from here?

New global exchange system to tackle tax avoidance

Tax authorities around the world will soon get a powerful new weapon in the fight against tax avoidance.

Next year will see the launch of the Common Reporting Standard, a new global system for the automatic exchange of financial account information between national revenue bodies. Set for launch in September 2018 the CRS has already been hailed as a game-changer.

 The system represents the international community’s response to criticism of rampant tax avoidance through offshore accounts in the Panama Papers.

“Assets held by wealthy people will become fully visible,” said senior Japanese tax official. “Its power will be tremendous.”

That view appears to be no exaggeration.

Established by the Organization for Economic Cooperation and Development, the system automatically provides for the exchange of information on accounts across jurisdictions.

The data will include the names and addresses of account holders as well as the account balances and interest and dividends earned on the holdings.

Greek unemployment sticks at 23% amid escalating bailout row

Still no respite for Greece.

Amid a fresh escalation in a row over its bailout conditions, Greece’s stubbornly high unemployment rate is showing no sign of improvement.

The country’s jobless rate – which is the highest in the eurozone and has been above 20 per cent for six years – stuck at 23 per cent in November despite a general uptick in its economic prospects at the end of 2016.

The IMF has been accused by Athens and Brussels of an “overly pessimistic” view on the Syriza government’s ability to hit a 3.5 per cent budget surplus target over the next decade, which has led it to a wrong-headed forecast on Greece’s “explosive” debt dynamics.

The Fund’s latest report on the Greek economy suggest its debt-to-GDP mountain could reach 275 per cent over the next two decades without major debt restructuring. Unemployment meanwhile will only fall to 21.7 per cent this year, while the country’s long-term growth rate was downgraded to 1 per cent, IMF economists predict.

World currency levels will definitely be discussed at G20 summit

Reuters with some G20 sources comments on what’s to be discussed at the finance ministers meeting

  • Germany (hosts) will push G20 to preserve the existing consensus on free trade, currencies and climate
  • There will be an unusual amount of uncertainty surrounding G20 policy discussion due to Trump

Got to give Trump some credit as the great unknown. He’s certainly stirring up emotions.

The fin min meeting is in March.

Nikkei 225 closes down -0.53% at 18,907.67

Japanese equities fading into the close 9 Feb

  • Topix closes -0.7% at 1513.55
  • USDJPY 112.14 after running into res above 112.30

Expect decent offers/res at 112.50 again. Immediate demand into 112.00 then 111.75-80

Ranging still and I remain a rally seller.

Demonetisation hits Punjab National Bank, loans worth Rs 10,000 cr turn ‘special’

Loans worth between R8,000 crore and R10,000 crore that were being serviced regularly have turned into special mention accounts 2 (SMA2) — loans on which repayments are overdue for between 61 and 90 days — atPunjab National Bank (PNB) as a result of demonetisation, senior bank executives said.

The total value of SMA2 accounts at the New Delhi-headquartered lender at the end of December was R19,000 crore. Among the accounts in the SMA2 category is that of Air India, to which PNB has an exposure of around R1,000 crore, one executive confirmed.

Slippages, or fresh bad loans, at the country’s fifth largest lender during the October-December quarter stood at R4,800 crore, with about R1,500 crore being accounted for by large corporate accounts.

Meanwhile, addressing analysts and investors on Wednesday, PNB’s managing director and CEO Usha Ananthasubramanian refused to offer a forecast for slippages in the March quarter. “I would only say the endeavour is to be below the recovery numbers,” she said.