Economy
India's March consumer price inflation eases to 5.17 percent
India's consumer price inflation for March eased to 5.17 percent from 5.37 percent in February 2015, government data showed on Monday.
 
The March CPI was considerably down from 8.25 percent recorded in the corresponding month of 2014.
 
The CPI urban for March stood at 4.75 percent and rural at 5.58 percent. March food inflation stood at 6.14 percent from the previous months rate of 6.88 percent.
 
As per final CPI inflation rates for February 2015 furnished by the Central Statistics Office (CSO), the CPI urban stood at 7.52 percent and rural at 6.43 percent. 

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Report on net neutrality by mid-May: Prasad
A committee on net neutrality, set up by the Department of Telecommunications (DoT), will submit its report by the second week of May to help the government make a comprehensive decision on the contentious issue, Communications and IT Minister Ravi Shankar Prasad said on Monday.
 
Net neutrality means that governments and internet service providers should treat all data on the internet equally -- therefore, not charging users, content, platform, site, application or mode of communication differentially. 
 
Prasad told media persons here that since internet is created by human beings, the common man should be having access to it without any discrimination.
 
He said this entire process of a committee of experts going into the pros and cons of the issue will benefit the government in making comprehensive decisions. "This is the reason we are doing it independent of TRAI (Telecom Regulatory Authority of India)," Prasad added.
 
The internal panel, which will conduct the study and submit its report, consists of six members.
 
In March, telecom regulator TRAI released a paper inviting comments from users and companies on how over-the-top services should be regulated in the country. It has asked stakeholders to send suggestions by April 24 and counter-arguments need to be submitted by May 8.
 
Bharti Airtel recently launched Airtel Zero, an open marketing platform that will allow customers to access mobile applications at zero data charges.
 
The US Federal Communications Commission has defended its stand on net neutrality and its commissioner Mignon Clyburn said: "The rules will ensure that the internet remains the great equalizer of our time."

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COMMENTS

Baboo Mahtani

2 years ago

Loved the speech of our Honourable Chief Minister of Maharashtra: This is what our India needs People like him & Honourable P.M. Mr Modi. Who are well educated & who understand what our Great Country Needs. How I wish our ELECTION POLICY HAS A LIMIT OF BASIC EDUCATION BEFORE ANY CITIZEN CAN STAND FOR ELECTION.

Ramifications of GE exiting the finance market
General Electric is exiting from its finance business by shedding GE Capital. Separately, GE is repatriating back $35 billion of its foreign earnings, which will cost it $6 billion in taxes back home in the US
 
On 10th April, General Electric (GE), the venerable company founded by the Light Bulb inventor Thomas Alva Edison, announced that it was exiting finance business, by shedding GE Capital.
 
While the official reason GE gave for this is that Investors don't like conglomerates, there has been much speculation about the true reason for GE to shed GE Capital. 
 
First off, a brief look back at the history of GE's acquisitions in the last 30 years. During Jack Welch's 20-year stint at GE, close to 80% of his acquisitions were finance companies. The reasoning given was that finance companies earned more per employee and therefore made GE look more profitable. 
 
GE also announced one of the largest stock buybacks in history, planning to buy up $80 billion. Little wonder that the stock zoomed up by 10%! 
 
So why is GE getting out of such a lucrative market? Is the investor bubble about to burst again? Or is the real reason due to the fact that Dodd-Frank act requires GE Capital to maintain higher reserves since it was deemed a systemic unit, meaning its failure can have far reaching consequences? 
 
If GE does not provide the financing to highly burdened developing countries (HBDC is a new acronym for the Third World) to buy their aircraft engines or nuclear reactors, who will? 
 
Is this a one-off phenomenon or will automakers such as Ford and General Motors follow suit? After all, GM has just emerged from Chapter 11 and Ford came perilously close to going bankrupt and neither can afford to take a hit from their financing arms.
 
Yahoo News has a different take on GE and thinks that GE has been under-owned by institutional investors and that will change now. GE's dividend is currently around 3% and it would be interesting to see if this gets raised too, which will be good news for the long suffering investor.
 
In another unexpected move, GE is repatriating back $35 billion of its foreign earnings, which will cost GE $6 billion in taxes back home. 
 
President Barack Obama has been criticising US companies for shifting their operations overseas to avoid paying taxes in the country and perhaps, GE felt that it was a patriotic thing to do.
 
GE has bought back stock several times in the past to shore up its stock price, only to see it fall further. Let us hope that history does not repeat itself, in this case.

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COMMENTS

Navin

2 years ago

Very informative and precise.

Aditya G

2 years ago

Tough to say why GE is exiting this market, but Immelt has always known to be a smart & astute manager, albeit low profile (especially when compared to his predecessor). Whatever the share price, the implications of this move, on itself and the broader credit/finance market, will be known over the next decade or so.

Cheers,
Aditya

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