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The government today gave its approval to raise the royalty rates on minerals, including iron ore and bauxite, a long awaited move that will boost the annual revenue of states.

However, the royalty rates for coal and lignite have not been raised, taking note of state electricity boards’ apprehensions that this could raise the cost of power generation. The royalty was raised on 23 of the 51 minerals whose rates can be decided by the central government.

The royalty rate for manganese ore was raised from 4.2 per cent to 5 per cent, while for iron ore and chromite it was raised from 10 per cent to 15 per cent. Bauxite rates were raised from 0.5 per cent to 0.6 per cent.

Odisha, Jharkhand, Chhattisgarh and Karnataka have been demanding a revision in the rates.

Under Indian law, royalty has to be paid by miners to state governments. >> Read More

 

An array of Nobel economists have launched a blistering attack on the eurozone’s economic strategy, warning that contractionary policies risk years of depression and a fresh eruption of the debt crisis.

“Historians are going to tar and feather Europe’s central bankers,” said Professor Peter Diamond, the world’s leading expert on unemployment.

“Young people in Spain and Italy who hit the job market in this recession are going to be affected for decades. It is a terrible outcome, and it is surprising how little uproar there has been over policies that are so stunningly destructive,” he told The Telegraph at a gathering of Nobel laureates at Lake Constance.

“It could be avoided with better use of stimulus, and spending on infrastructure. That would boost growth and helped the debt to GDP ratio,” Mr Diamond said, echoing a widely-heard critique among the Nobel elites that Europe’s policies have been self-defeating.

>> Read More

 

DAILY-SPOT

Above is Daily Chart of GOLD SPOT

Break below $1288 level and stays below ,We see Nonstop PANIC upto  1281——1278 level.

3 Consecutive close below $1286+Weekly close will take to 1266—1259 level very soon.

Our MCX Subscribers minted Tons of Money in GOLD ,SILVER-Short Call.

Technically Yours/ASR TEAM/BARODA/INDIA

MSCI-18MONTH

Above is Monthly CHART of MSCI Emerging Markets

Now at 20 Month High 

Short Term :It can zoom to kiss 1133 & then sky is limit !!

MSCI-TRIANGLE

Above is Weekly Chart of MSCI Emerging Markets

Our Triangle Target intact of 1206

More Details to our Subscribers ,Updated at 5:30/21st August/Baroda/India

Overnight US Market

21 August 2014 - 5:14 am
 

Stocks staged a late day rally Wednesday as the S&P 500 rose for a third straight day and closed just short of its record.

Trading was lackluster for much of day and even dipped after the 2 p.m. ET release of the minutes from the latest Federal Reserve meeting, but pulled back ahead in late afternoon trading. The minutes showed policymakers vigorously debated the timing of any upcoming rate hikes.

The Standard & Poor’s 500 index rose 4.01 points, or 0.3%, to close at 1986.51, which was just short of its July 24 record close of 1987.98

The Dow Jones industrial average jumped 59.54 points, or 0.4%, to 16,979.13. The Dow and S&P have posted gains for five of the last six trading sessions.

Bucking the trend, the Nasdaq composite index fell 1.03 to close at 4526.48, breaking its five-day winning streak.

Investors have been eager for guidance on when the Fed plans on raising short-term interest rates from historic lows and how fast rates will rise. Most economists expect rate increases to begin some time in 2015. Low rates have been a key driver of the five-year bull market in stocks.

The Fed has been steadily reducing its monthly bond-buying purchases and cut them to $25 billion at its July 29-30 meeting.

In earnings news, Lowe’s reported a rise in second-quarter profit and beat Wall Street estimates. But the home improvement retailer disappointed investors after lowering slightly its 2014 earnings guidance. Shares initially fell and then recovered, rising 1.7%.

 

Federal Reserve officials debated at their July meeting whether to move sooner than expected to start raising interest rates in light of an improving job market and rising inflation, but decided they needed more evidence before concluding that was the right approach.

The minutes of the meeting, released Wednesday, provide fresh evidence of an intensifying debate inside the central bank about when to respond to a surprisingly swift descent in the unemployment rate and rising consumer prices.

Hilsenrath doesn’t seem to have any inside access to the Fed since Yellen took over but it’s some descent real-time analysis and the market reacts to what he says.

The US dollar is making fresh highs right across the board. Interesting though that cable hit a new low but didn’t continue falling.

Here’s the quick take from WSJ Fedwatcher Jon Hilsenrath

July FOMC 2014 -Full Text

21 August 2014 - 5:08 am

July Fomc 2014

 

These are the minutes from when the Fed toned down deflation fears and raised concerns over labor slack, and expectations going in were for a slightly more hawkish tone from the minutes (and perhaps commentary on financial stability – bubbles – and exit strategies). This is what we got:

  • *MANY FED OFFICIALS SAID JOB GAINS MIGHT BRING RATE RISE SOONER
  • *FOMC AGREED BALANCE SHEET SHOULD BE CUT GRADUALLY, PREDICTABLY
  • *SOME FOMC PARTICIPANTS MORE UNCOMFORTABLE WITH FORWARD GUIDANCE

Sounds pretty hawkish to us…

Pre-FOMC Minutes: S&P Futs 1982.5, 10Y 2.4175%, Gold $1294 , USDJPY 103.40, Oil $95.40

The key section from the minutes:

With respect to monetary policy over the medium run, participants generally agreed that labor market conditions and inflation had moved closer to the Committee’s longer-run objectives in recent months, and most anticipated that progress toward those goals would continue. Moreover, many participants noted that if convergence toward the Committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated. Indeed, some participants viewed the actual and expected progress  toward the Committee’s goals as sufficient to call for a relatively prompt move toward reducing policy accommodation to avoid overshooting the Committee’s unemployment and inflation objectives over the medium term. These participants were increasingly uncomfortable with the Committee’s forward guidance. In their view, the guidance suggested a later initial increase in the target federal funds rate as well as lower future levels of the funds rate than they judged likely to be appropriate. They suggested that the guidance should more clearly communicate how policy-setting would respond to  the evolution of economic data.

>> Read More

Weak Oil Price ?Blame Russia-Vide

20 August 2014 - 22:49 pm

Fed’s July minutes: what to watch for

20 August 2014 - 22:32 pm
 

Before investors switch their focus to the annual gathering of central bankers in Jackson Hole, Wyoming, there’s the minutes of the last month’s meeting of the Federal Reserve’s top brass to digest.

The minutes are served up at 2pm New York time and here’s a brief look at what to watch for.

Did Charles Plosser have support?

There will be roughly 13 pages of minutes to sift through, but Charles Plosser provides a starting point.

The president of the Philadelphia Federal Reserve dissented at the July 29-30 meeting, the first governor to do so in favour of tighter monetary policy since Janet Yellen became chairwoman. Investors will want to see if the minutes suggest Plosser’s camp is likely to grow.

Is inflation becoming a worry? >> Read More

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Technically Yours,
Team ASR,
Baroda, India.