Rama Krishna Vadlamudi, HYDERABAD July 18, 2011
MY BLOG: www.ramakrishnavadlamudi.blogspot.com
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Gold’s dream run continues
The rally in international gold prices continues unabated. Gold rose to $ 1,595 perounce on Thursday before closing at $ 1,583 at the weekend. Silver rose to $ 39.4per ounce before closing at $ 38.2. Gold prices are mostly driven by investmentdemand rather than jewellery. The sovereign debt crisis in Greece, Portugal andother countries is contributing to the gold’s investment demand. The LondonMetal Exchange (LME) has doubled delivery size for top warehouses with a view to easing backlogs in Detroit and moving aluminium faster. It is interesting tonote that many LME-approved warehouses in Detroit are owned by MetroInternational, a Goldman Sachs group company.
Money managers for EPFO
The Employee Provident Fund Organisation (EPFO) has appointed State Bank of India, ICICI Securities Primary Dealership, Reliance Capital and HSBC AssetManagement Company as fund managers to manage its Rs 3 lakh crore corpusfor the next three years. SBI will manage 35 per cent of the corpus, ICICISecurities PD 25 per cent, and the other two will manage 20 per cent each.
India is at 62
According to the 2011 edition of the Global Innovation Index, India is ranked62
in innovation. For the year 2010, India’s rank was 56
and for 2009, it was41
indicating that India has been losing on innovation to other competitors.For 2011, Switzerland is at the top followed by Sweden, Singapore, Hong Kongand Finland. The important parameters for computing the innovation index are:institutions; human capital & research; infrastructure; market sophistication;and business sophistication.
In the next few weeks, the US congress will decide on raising the US debt level.The present debt limit is $ 14.3 trillion. There are some differences over raisingthe debt level between the Republicans and the President. If they fail to sink theirdifferences, the country may plunge into an economic crisis. Meanwhile, Moody’sInvestor Services has warned that it would review the US rating, currently at Aaasince 1917, if the lawmakers do not raise the debt limit. Standard & Poor also gavea similar warning by putting the US on the negative watch list.