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Tue, 2017/10/31 - 2:34pm | Your editor
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A windows 10 update unhinged my printer and my access to my desktop, and calling the maker of the computer which is less than 3 months old, good old HP, resulted in my being told that the 1 year warranty does not cover updates from MSFT. I have no idea what to do to get back into the the thing. Meanwhile here is today's blog.

Fraticide can be costly. Anil Ambani is settling with the bankers who backed his cellular telephone company, Reliance Communication, by handing them stock in lieu of repaying because he could not find anyone willing to partner with him. He was wiped out by the virtually free offering by his brother Mukesh and owes $6.94 bn which even for an Ambani is real money. The deal was worked out by the Indian central bank, The Reserve Bank of India. And that is not all.

 

You don't want to own a private sector bank in India now that the Modi govt has figured out a way to bail out public sector banks from their huge potential losses from concentrated lending to favorite oligarchs and officials. It is using funds from the state banks' own reserves to buy their shares, thereby increasing their solvency and ability to underprice new loans to the same people. It is tough to compete with banks which don't have to perform, why we are happier out of the banking sector.

 

Things are not much better in China where a government facility will boost lending capacity for the SOEs (state-owned enterprises) which have excess debt. This will hurt private sector Chinese banks and their Hong Kong partners or comeptitors. Both countries need more investment and for various reaons are tapped out internationally now. China's manufacturing purchasing managers' incex came in low at 51.6 when estimates were at 52 and last month's at 52.4. It is still positive but sinking. Both countries are supposed to lead the world in growth and without financial gimmicks are running out of steam.

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