Economic Growth in the Eurozone is double as compared to that of the UK:
There was a 0.3% growth in the Eurozone in the second quarter as compared to the growth rate of 0.2% in the UK. In the UK, the pound has weakened, thus raising the cost of imports and leading to inflation. On the other hand, Eurozone has been experiencing growth in the first as well as the second quarter and reducing unemployment due to various activities are undertaken by the European Central Bank (ECB), including the decline in interest rates.
New immigration policy announced by the US President favoring English speaking financially stable individuals:
Donald Trump announced a new immigration policy whereby Visa would be provided on ‘merit’ basis to financially sound English speaking individuals. This would enable Trump to drastically cut the number of ‘legal immigrants’ from the US by 50% in 10 years. Moreover, this will eliminate “chain- immigration” as only those individuals would be provided Visa who possesses job skills that can contribute to the US economy.
RBI cut down the Repo rate by 25 basis points:
RBI reduced its repo rate to 6% from 6.25%- the lowest in the past 7 years. This step was taken to boost credit creation and ensure sustained growth in the economy. Due to the low inflation rate, the RBI could lower the interest rate, leading to loans getting cheaper. It is expected that the RBI would further reduce the repo rate, provided the inflation rate is low.
Shahid Khaqan Abbasi to remain as the interim Prime Minister of Pakistan for the next 10 months:
As per one of the members of PML-N, Nawaz Sharif sidelined his brother from becoming the Prime Minister of Pakistan. This decision was taken by Nawaz Sharif because there was no eligible candidate to handle the economy and developments of Punjab. Moreover, Shahbaz Sharif, being the former Chief Minister of Punjab, has friendly ties with all the MLAs and the development projects of Punjab are at his tip. Therefore, it is decided that Shahid Khaqan Abbasi would remain as the interim Prime Minister until the next elections in 2018.
Venkaiah Naidu sworn as the Vice President of India on 5th August:
Venkaiah Naidu, a candidate of the BJP, is elected as the 13th Vice President of India. He received 516 votes, thus defeating his opposition, Gopalkrishna Gandhi who received 244 votes. As a Vice President, Mr. Naidu would be presiding over the Rajya Sabha, where BJP does not have a majority.
Paul Kagame elected as the President of Rwanda by winning 98.63% votes:
Paul Kagame has been re-elected as the President of Rwanda for the third time for a term of 7 years. Rwanda, one of the developing nations in the world growing at a pace of 8% per annum, has re-elected Mr. Kagame because the people feel that he is the one who has helped the economy revive at such a faster pace after the Genocide in 1994. Moreover, due to this step of Rwandans, there can be distressing conditions between Rwanda and the USA (an ally of Rwanda) because the US wants a candidate, who is more eligible than Kagame, to take over.
Snapdeal – Flipkart Merger called off, Snapdeal’s market share fell from 26% to 4%:
The proposed merger between Snapdeal and Flipkart was called off after six months of intense negotiations and within a few days, the market share of Snapdeal fell from 26% to 4%. Due to the merger breakdown, the company will slash 80% of their workforce, thus further reducing its worker strength from 1200 to 1000 employees. Moreover, the company had decided to use the $50mn received from the sale of Freecharge and continue operation with the remaining 200 employees.
The American Stock market experiencing a new growth era:
On 2nd August, the DOW Jones Industrial average closed above 22000 and the euro has been increasing for much of 2017. Moreover, the euro zone shares have risen up to 19.9% and the S&P rose to 10.7%; it means that the American market has dropped by 8% in terms of the euro. Thus, the European shares is a much better option to invest for the dollar- based investors.
Refusal of Gulf Banks to extend Qatar’s deposits:
Due to the political and economic condition of Qatar at present, the lenders from Saudi Arabia, Bahrain, the UAE, and Egypt are struggling to repatriate their funds as their counterparts in Qatar are not ready to exchange riyals to dollars. And this conversion is possible either when banks roll over the riyals or when riyals are converted into dollars in the off- shore market at a much lower exchange rate. Moreover, the foreign deposits of Qatar have reduced considerably and therefore, the Gulf lenders are refusing to extend the deposits by rolling over their holdings.
By Tamana Jain
Image Source: Textbook
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