News Of The Week(18 Oct,2010 to 22 Oct,2010)

US set to rake up Yuan at G20 meet• China’s exchange rate policy, which is under growing attack,

could figure high on the agenda of the upcoming G20meeting.

• At a time when many countries, especially in the West, arestruggling to boost growth after the global economicslowdown, it could be difficult to accept “large-scale manageddemand diversion”.

• Countries that are prepared to allow their exchange rates tofluctuate are less dependant on the monetary policies ofother countries. And so those concerned with the posture ofUS monetary policy are likely to be less troubled, if they allowthe currencies to fluctuate freely.

China vows major breakthroughs to secure growth• China must make a ‘major breakthrough’ in its industry-heavy

growth and advance ‘vigorous but steady’ political reform to keepthe world’s second-biggest economy from faltering

• The Chinese economy is forecast to grow by about 50% to $7.5trillion, powering past Japan and moving closer to the biggesteconomy by far, the US. But Officials fear domestic imbalancescould drag down that ascent by suppressing demand and stirringunrest.

• Expanding domestic demand is the guiding long-term strategy ofcountry’s economic and social development. The focus of the nextstage of economic work must be tapping the role of domesticdemand, especially consumer demand, in generating economicgrowth.

Traders in a mad scramblefor Coal India, SBI issues• The share sale from Coal India and the first retail bond

offering by the State Bank of India were sold out as domestic investors borrowed to buy them, expecting high returns as overseas investors keep faith in economic and earnings growth.

• State Bank is selling 15-year bonds, with call options, with a coupon of 9.25%, which is at least 125 basis points higher than government bonds.

• A basis point is 0.01 percentage point. This is better than comparable bonds in the market such as the 8% Infrastructure Development Finance Corporation bonds that have tax benefits too.

Toyota says to begin producing Prius in Thailand

• TOKYO: Toyota Motor Corp . said it would begin producing its best-selling Prius hybrid vehicle in Thailand from November.

Toyota already produces and sells its Camry Hybrid sedan in Thailand, the company said in a news release.

EU asks India to rethink 'intense' import restrictions• The EU has said that restrictions on imports imposed by India a bit

intense and need to be looked into.

• Import duties for particular products are increased temporarily bygovernments when they are sold at prices lower than thoseprevailing in the home markets of exporting countries , when theyare subsidized by exporting country or when there is a surge in itsimports.

• Trade defence instruments should be transparent to ensure that rights of defence of interested parties are protected, there are proper and timely disclosures. Moreover , there has to be impartial review during and after the investigation process.

Will be right back soon…Thank You