Japan's Economy

 Overseas shipments fell 4.5% in November from a year earlier, Ministry of Finance data showed.  Separately, the Bank of Japan will make a decision on Wednesday on whether to raise the cost of borrowing.

The strength of the Japanese yen as well as the ongoing European debt crisis have weighed on external demand.

Japan's economy recovered from a recession that was sparked by the devastating tsunami  and earthquake in March.

However in recent months the boost from recovering supply chains and restored production facilities has started to diminish.

Japanese exports came in at 5.2 trillion yen ($66.8bn; £42.6bn) in November, falling for the second straight month.

Imports rose 11.4% to 5.88tn yen, the ministry said. That lead to an expansion in the trade balance deficit to 684.7bn yen.

Vickers report on banks to be accepted in full - Cable

The government will accept the Vickers report into banking "in full", Business Secretary Vince Cable has told the BBC.

The report, launched in the wake of the financial crisis, recommended separating banks' retail business from their investment business.

Mr Cable said the government would proceed with separating the banks.

But the recommendation about the amount of capital banks should hold has been diluted, the BBC has learned. The chancellor will address MPs on Monday.

George Osborne will give a statement to Parliament after the government publishes its response to the report.

In one key area the banking industry has succeeded in getting the Treasury to water down one of Vickers' recommendations, he said.

Moody's warns U.S. not to back off automatic deficit cuts

The credit rating agency said in the statement it will not immediately lower the nation's rating on long-term debt after a special congressional panel failed this week to reach agreement on alternative cuts to the deficit.

The impasse triggered the automatic cuts, which are scheduled to begin in 2013. Moody's said any effort to reduce those cuts could force the agency to downgrade its rating. Some Republicans are vowing to block the cuts slated to occur in defense programs, which amount to about half of the total.

The agency said it had decided to take no action based on the failure of a special congressional panel to come up with a plan because the automatic cuts will result in the same level of deficit reduction.

Moody's did not say when it would conduct its next review of the U.S. credit rating. Fitch, another rating agency, also has a triple-A rating on U.S. debt but said in August that a failure of the congressional panel to produce a plan could lead to a reassessment of that rating.

On Monday, after the announcement of the 12-member congressional panel's impasse, Standard & Poor's said it would not downgrade the U.S. credit rating. Like Moody's, it warned that its present rating was based on the expectation that the automatic cuts will not be reduced.

Exchange Board Of India

                                       

The Cabinet is also likely to take up the new Companies Bill after differences over market regulator Securities and Exchange Board of India’s jurisdictions in case of regulatory overlaps have been ironed out between the Finance and Corporate Affairs Ministries

At present, India allows 100 per cent FDI in cash-and-carry wholesale trade that is business-to-business. It permits 51 per cent in single-brand retail such as Louis Vuitton, Jimmy Choo or Fendi. However, FDI is not allowed in multibrand retailing like Walmart, Carrefour and Tesco. The Cabinet will tomorrow be taking for approval both the proposals of increasing the FDI limit in single-brand retail and permitting 51 per cent in multi-brand retail together, a senior official from the Ministry of Commerce and Industry told Business Standard.

Last week, the Department of Industrial Policy and Promotion (DIPP) had sent the final note to the Cabinet, suggesting both the measures after thorough inter-ministerial consultations.

IPIC Pays $3.75 Billion in Loans Before Due Date at Abu Dhabi

International Petroleum Investment Co. said it repaid $3.75 billion in borrowings before their 2013 maturities as the Abu Dhabi government-owned investor uses proceeds from a bond sale this year to retire short-term debt.
IPIC, as the company with an indirect holding in carmaker Daimler AG is known, paid on Nov. 21 two separate loan facilities taken out in 2010, according to a statement e-mailed today. The company last month sold three debt tranches for $3.75 billion with maturities of as long as 30 years.
“ IPIC is prudently managing its liabilities,” Managing Director Khadem Al-Qubaisi said in the statement. The company will continue its debt management policy through a “recycling of capital and its subsequent maturity extension,” he said.
Middle Eastern oil producers fund investment companies like IPIC to help diversify their revenue beyond income from oil sales. IPIC owns Spanish refiner Compania Espanola de Petroleos, is the second-largest holder behind the Austria government in oil and gas producer OMV AG and owns stakes in petrochemical producers. Its unit Aabar Investments PJSC holds stakes in non- oil related companies like Daimler.

Gold steady below $1,720

Gold prices held steady below $1,720 on Wednesday, as rekindled worries about Greece's debt crisis.

FUNDAMENTALS

• Spot gold edged down 0.1 percent to $1,716.79 an ounce by 0020 GMT.
• U.S. gold gained 0.4 percent to $1,718.90.
• Markets falldown on Tuesday. The Greece's Prime Minister George Papandreou shocked the world by announcing plans to hold a bailout plan throwing hopes on solving Greece's debt crisis into trouble.
• French President Nicolas Sarkozy and German Chancellor Angela Merkel will hold an emergency meeting with Greece on Wednesday to push for a quick implementation of Athens' bailout deal, the "only solution" to its debt crisis, Sarkozy said on Tuesday.
• A news conference by the U.S. Federal Reserve chief Ben Bernanke later in the day after a two-day policy meeting. The Fed looks set to take a breather from economic stimulus measures on Wednesday, even if financial market unstable heightens the chances of action later.
• Manufacturing surveys on Tuesday from North America to debt-crisis-hit Europe to Asia painted a portrait of softening global demand, but analysts do not see a world recession in the cards.
• MF Global -Holding Ltd failed to keep customer accounts, said a top U.S. exchange regulator, shock for commodity markets to run the brokerage's bankruptcy.

Sensex Jumps 516 Points, Biggest Gain in 2 Months

The BSE Sensex shot up 516 points today to close at 3-month high of 17,804.80 on the back of strong global markets after EU leaders agreed to a deal that will ease the euro-zone debt crisis.

Sensex and Nifty by a huge 3 per cent, adding an estimated Rs 1.5 lakh crore to the investor wealth.

The BSE 30-share barometer commenced trading sharply higher and shot up over 600 points to a high of 17,908.13 before concluding at 17,804.80. It closed 515.97 points or 2.98 per cent up – biggest gain in absolute term after August 29, when it had spurted 567.50 or 3.58 per cent.

The NSE wide-based Nifty also flared up 158.90 points or 3.05 per cent to close at a fresh 3-month high of 5,360.70.

All the 13 sectoral indices closed with gains of between 6.34 per cent and 0.18 per cent with metal, realty, banking, capital goods and auto leading the rally.

From the Sensex pack, 27 of the 30 scrips finished with sharp to moderate gains while only Maruti Suzuki, Bharti Airtel and Bajaj Auto closed with losses.

Economic analysis of india

 Economic Analysis is very important in order to the exact condition of an economy. This process analyze the strength and weakness of an economy.  India economic analysis provides various effort on economic condition of this south-east Asian country. It can be done both at a microeconomic as well as a macroeconomic level. India economic analysis could also be described as being an explanation of various economic phenomena going on in this country. 

 

Finanace Minister:  Pranab Mukarjee

India's economy moving in positive direction: Pranab

India's Finance Minister said India's economy moving in positive direction and hoped international commodity prices would decline, helping the government tame inflation and cut subsidies. Mukherjee maintained that India's economic fundamentals were strong and capable of meeting any challenge posed by the downgrade of the US economy and the crisis in some eurozone nations.