World
Struggling Twitter to rent out office space
 The beleaguered micro-blogging website Twitter is looking to rent space at its headquarters in San Francisco to other companies.
 
According to sfgate.com, Twitter has contacted San Francisco brokerage firm Cresa to market 183,642 square feet of "fully furnished" office space at its two buildings in Market Square.
 
"We're always looking at ways to use our office spaces more efficiently and effectively. We remain committed to our home in San Francisco's Mid-Market area," a Twitter spokesperson was quoted as saying.
 
Earlier this year, Twitter was considering renting out a partial floor of its Market Street headquarters to financial technology firm Affirm but the deal fell apart.
 
According to reports, Twitter is also seeking to rent out 24,000 square feet in its Manhattan office.
 
Earlier this month, there were rumours saying that former Microsoft chief executive Steve Ballmer was buying the micro-blogging website.
 
There were multiple reports, saying that Ballmer and Saudi Arabia's Prince Al-Waleed bin Talal were getting ready with a bid to buy Twitter.
 
Twitter was yet to respond to the rumour.
 
Earlier, although it added three million users -- one million more that what analysts had expected -- the not-so-promising second quarter earnings results led to the shares of micro-blogging website Twitter tumbling.
 
The company posted quarterly revenue of $602 million, up 20 per cent year-over-year and reported $107 million GAAP net loss ($0.15 per share) with quarterly non-GAAP net income of $93 million ($0.13 per share).
 
A year ago, the year-over-year growth was 61 per cent and two years back, it was a whopping 124 per cent.
 
The average monthly active users (MAUs) were 313 million for the quarter, up only 3 per cent compared to 310 million in the previous quarter.
 
The micro-blogging website is now looking at the video and news streaming space to revive its fortunes.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Unchanged interest rates not surprising: Moody's
The Reserve Bank of India's (RBI) decision to leave the policy interest rates untouched was in line with the predictable and transparent monetary policy, said global credit rating agency Moody's Investors Service.
 
The central bank's decision to leave policy interest rates unchanged on Tuesday was no surprise to market participants.
 
"In the next few months, we expect continuity in the RBI's policymaking. In particular, the government's notification of the inflation target at 4 per cent +/- 2 percent through to 2021 denotes ongoing commitment to keeping inflation at moderate levels," Marie Diron, senior vice president, Sovereign Risk Group was quoted as saying in a statement issued by Moody's.
 
"Meanwhile, the formation of a monetary policy committee is in line with common practice in many central banks around the world. We do not expect the RBI's shift to such a structure to have any significant implications for the conduct of monetary policy," Diron added.
 
According to Diron, the larger than average monsoon rainfall will help maintain moderate food price inflation to keep the headline inflation rate within or close to target this year. In the medium-term, the inflation will remain moderate.
 
"There are upside risks related to the implications of the rise in public sector wages with the implementation of some of the Pay Commission's recommendations. Should higher wages boost consumption significantly, inflationary pressures could rise," Diron said.
 
According to Diron, inflationary pressure could arise when the full recommendations are implemented due to increase in housing allowances.
 
"However, the less accommodative monetary policy stance at present than in 2009-13, when the RBI's policy interest rates were well below inflation, mitigates these risks," Diron said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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RBI keeps monetary policy rates unchanged
The Reserve Bank of India (RBI), in its third bi-monthly credit policy review on Tuesday for FY2016-17 has kept the policy rates unchanged. The repo rate will remain at 6.50% while the reverse repo rate under the liquidity adjustment facility (LAF) will also remain at 6%. The marginal standing facility (MSF) rate and the bank rate also remain static at 7.0%. 
 
In a statement, RBI Governor Dr Raghuram Rajan said, "Risks to the inflation target of 5% for March 2017 continue to be on the upside. Furthermore, while the direct statistical effect of house rent allowances under the 7th Central Pay Commission (CPC)’s award may be looked through, its impact on inflation expectations will have to be carefully monitored so as to pre-empt a generalisation of inflation pressures. In terms of immediate outcomes, much will depend on the benign effects of the monsoon on food prices. In view of this configuration of risks, it is appropriate for the Reserve Bank to keep the policy repo rate unchanged at this juncture, while awaiting space for policy action. The stance of monetary policy remains accommodative and will continue to emphasise the adequate provision of liquidity. Easy liquidity conditions are already prompting banks to modestly transmit past policy rate cuts through their marginal cost of funds based lending rate (MCLRs) and pro-active liquidity management should facilitate more pass-through."
 
Here are the latest policy rates following RBI review… 
 
 
"The recent sharper-than-anticipated increase in food prices has pushed up the projected trajectory of inflation over the rest of the year. Moreover, prices of pulses and cereals are rising and services inflation remains somewhat sticky. There are early indications, however, that prices of vegetables are edging down. Going forward, the strong improvement in sowing, on the back of the monsoon’s steady progress, along with supply management measures, augurs well for the food inflation outlook. The prospects for inflation excluding food and fuel are more uncertain; if the current softness in crude prices proves to be transient and as the output gap continues to close, inflation excluding food and fuel may likely trend upwards and counterbalance the benefit of the expected easing of food inflation. In addition, the full implementation of the recommendations of the 7th CPC on allowances will affect the magnitude of the direct effect of house rents on the CPI. On balance, inflation projections as given in the June bi-monthly statement, i.e. of a central trajectory towards 5 per cent by March 2017 with risks tilted to the upside, are retained," Dr Rajan, who is stepping down next month, said in his last monetary policy statement.
 
 
Commenting on the policy review, Arundhati Bhattacharya, Chairman of State Bank of India (SBI) said, "The RBI decision to maintain status-quo was as per market expectations. The decision to frontload liquidity provisions through an announcement of open market option (OMO) is a well thought out move as capital flows have been relatively slow this year given the global uncertainties, resulting in lower net foreign exchange acquisition. We believe transmission of rates will happen gradually over the next few months as credit growth picks up pace".
 
Looking ahead, the RBI says, the momentum of growth is expected to be quickened by the normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to consumption spending that can be expected from the disbursement of pay, pension and arrears following the implementation of the 7th CPC’s award. The passage of the goods and services tax (GST) Bill augurs well for the growing political consensus for economic reforms. 
 
"While timely implementation of GST will be challenging, there is no doubt that it should raise returns to investment across much of the economy, even while strengthening government finances over the medium-term. This should boost business sentiment and eventually investment," the central bank added.
 
RBI feels the current accommodative stance of monetary policy and comfortable liquidity conditions should also provide a congenial environment for the reinvigoration of aggregate demand conditions. However, successive downgrades of global growth projections by multilateral agencies and the continuing sluggishness in world trade points to further slackening of external demand going forward. Accordingly, RBI retained the gross value added (GVA) growth projection for 2016-17 at 7.6%, with risks facing the economy at this juncture evenly balanced around it. 
 

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COMMENTS

MG Warrier

4 months ago

When Reserve Bank of India came out with the last Monetary Policy Statement during the current tenure of Dr Raghuram Rajan’s governorship, it was great fun watching media and even most of the analysts searching for Dr Rajan’s ‘last words’. They didn’t find any of them. The document did not look different in presentation and content from the previous ones during the last three years. There was a difference, which went unnoticed.
Dr Rajan effectively put into use the management lessons he picked up from IIMA and his international experience in monetary management, supplemented by the expertise in teaching what he learnt, from day one at Mint Road, with plans to remain active as Governor till September 4, 2016. His reference during his post-policy interaction with media on August 9 to the slew of measures affecting the financial sector to be announced on August 25, 2016 is proof enough to show that the coming weeks are not going to be spent in late night farewell parties by him or his colleagues in RBI.
The challenge Dr Rajan has thrown out to RBI by leading from the front is daunting. He has demystified the central bank’s functioning and has changed the way in which the institutional system in the financial sector in India was functioning. The sector was playing a subservient role for which scripts were being written by corporate and political leadership, with implicit support from the babus in the North Block. RBI will definitely rise to the occasion and move forward.
M G Warrier, Mumbai

Gopalakrishnan T V

4 months ago

Very safe and right approach. No cut or hike in the rates and silenced all critics of RBI Governor. Inflation Risk is very high and the expectation that this will be at 5% by March 2017 is something hard to believe. Maintaining inflation at reasonable rate cannot be the full responsibility of RBI and the rate cut by RBI cannot ensure industrial growth as interest rate contribution to growth is insignificant. The monsoon seems to have favoured and this can have a smoothening effect on inflation but the pay hike of seventh pay commission and other transportation and distribution constraints observed in the supply chain can definitely add to the inflation. However, the present approach off RBI is very appropriate .

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