After the Brexit, United Kingdom is compelled to change its FINANCE model due to repercussions from European Union. For this United Kingdom must have a different recipe to deal with Europe. Now United Kingdom CREDIT DEBT FINANCE must link with India, China, United States of America, Middleast and African countries. Lets Leave Europe aside. Pulling out of European Union had already shown the devastating effect, nothing more is there. Continue reading “Aboutme.SubinEco: United Kingdom Must have a New Economic Model To Compete”
“Federal Reserve Finance” is planning to increase the interest rate after report of good prospering jobs. So the signs of trading are a bit low due to this expectation. This year the Federal Reserve is planning to increase the Interest rate this September due to healthier United States Economy. Banks are proposing that Federal Reserve will be increasing the Interest Rate this September and there will be another rate before the year ends.
Apart from that, Banks are also expecting the Interest Rate hike will be steeper and their timing. Is it the correct time “Federal Reserve Finance” is taking this crucial decision? How will it affect the Global Economy? Does Barack Obama require United States Dollar to be lean?
Dow Jones Industrial Average was down; same is with S & P index and Nasdaq Composite. Energy Index is the leading looser due to slide of China’s Oil import and OPEC is planning to keep the increased production .
The S & P Index showed 5 lows and 7 highs whereas NASDAQ recorded 12 new lows and 81 highs. The first phase of growth in United State Economy is already over, but rooms of development are there. After March 2009, Dow Jones Industrial Average has increased to 165%, Nasdaq Up by 260%, New York Stock Exchange increased by 165% and S & U P 500 has climbed over 200% respectively, Unemployment decreased by 6.1% and inflation is right now in check.
Due to Low Interest Rate, High Income Groups are taking loans from the Banks, Financial Institutions, etc and are they pumping these into Share Market for gaining more profit. Still One-Sixth of the population are receiving food stamps that means people below the basic poverty line is increasing [46.23 Million] IMF is expecting the United States Economy will be growing by 3% this year, better than 2.8% in 2014.The Economy is still in a pathetic position, Wages had declined after the recession, that means people are getting less value of money than before. Home Price Index is still down; need another 25% to reach the level at the time of recession 2009. New home purchasers are less than the average purchases done during the time of recession.
High Interest rates means Banks can charge more and earn good profit. If Barack Obama is going to increase Interest Rate means the United States Government is working to increase profit for Banks, Financial Institutions, Other Non-Banking Finance Institutions, etc. JP Morgan Chase has increased the profit to 350%, 450% increase can be seen for Morgan Stanley, 500% increase in profit can be seen in Bank of America Corporation and 625% increase in profit share for Wells Fargo & Company shows Banks are gaining profit from stock growth.
IF that is the situation, United States Economy still needs time to conquer growth. Some policies reforms must be implemented from Government side for Middle Class and Low Class Americans. Creating Jobs for people is a best bet for Barack Obama. If we look at the World Side, China is still staggering to move forward. India is held-back due to reforms taking place. Brazil is down and Russia is messed-up politically. So my dear investors, United States Market is not going to have Interest Rate hike this September, maybe they will increase in December 2015. Wait and watch “Federal Reserve Finance” dude.
“Nestle Corporate” India is a very good company with strong background and in-depth Marketing strategy. The Maggi crisis is already over, whether it will come or not? Yet don’t know. For time-being they have already pulled all Maggi packets from the Indian Shopping shelves due to excessive lead ingredients.
“Nestle Corporate” Share Market are trading below the line and will soon pick-up by bringing in new products, new strategy or both. The company must not rely on Maggi anymore, but must bring in new product to keep the Market Share safe and pump in more Revenue.
Nestle will be having to suffer a slight more percentage of losses in Indian Financial Market, but this company will be growing back Globally. Only thing the Investor requires is patience and wait for another 6 months. Its fundamental’s are good and sound.
Buy “Nestle Corporate” shares and we can see it can even go down to more than 10%, but will provide you Rs.7500/share in the coming 6 month period. Wait and watch, this is only prediction; maybe it will be taking near to 1 year. But surely it will come up providing a profit of Rs. 1500 – Rs. 2000 in the month to come.
Once more Indian
“FINANCE” Market tumbles on Wednesday after Reserve Bank has decreased Interest rate on “FINANCE CREDIT” Home Loans, Corporate loans and for ” FINANCING” Vehicles. The Reserve Bank has decreased the interest rate because of low expected rainfall. The expected rainfall will be considered below average on long-term basis.
Apart from that due to “FINANCIAL” trim in the market, some companies are going to default due to repayment problem. Unitech Company has lost more than 36% of share value and Jaiprakash Associates Group about 21% respectively. The Bombay Stock Exchange Sensex has dipped below 27,000 points and Nifty is near to 8,135 points. This selling spree will be there till June 15th.
Reserve Bank of India has reduced the Interest rate by 0.25% which will be a relief well established though late, automatically can help Home Purchasers, Auto Purchaser and for Corporate. The rate cuts are okay, but the Banks must pass these “FINANCE” cuts to individual and Corporates. Now people are facing the wrath of Service Tax hike from 12.50% t0 14% and an offer of 0.25% cut in Repo Rate means unreasonable. The Reserve Bank must cut the Repo Rate by 1%; reduce the Cash Reserve Ratio to 3.5% and Statutory Reserve Ratio by 21%. Let see what Reserve Bank Governor Raghuram Rajan has to say.