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RBI May Ease Lending Restrictions, May's Brexit Deal In the Green et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 15, 2018 1:07 PM 3 min read
Editorial

Good evening reader,

 

British Prime Minister Theresa May gained her Cabinet's approval for a Brexit deal - moving the battle away from the Government to the Parliament.

 

Important milestone as it may be, a fair bit of unfinished business stands with regard to UK's formal withdrawal from the European Union (EU).

 

The 'draft withdrawal agreement' would first require Parliamentary approval (where May lacks a lower house majority), following which it would be presented to EU leaders in a summit by the end of this month.

 

Any major impasse would only wreak further instability within European polity and markets.

 

Roadblocks are present aplenty.

 

An Irish border backstop, concerns around a level playing field, diluted financial markets access etc. are expected to face stiff resistance/challenges, only accentuated by a fickle alliance with the Northern Irish Party. Businesses, however, would surely rejoice at "any" progress towards Brexit's fruition, an event that has kept the country's economy and their plans on hold.

 

By that logic, any deal - good or bad may indeed be better than no deal.

 

Here are Today’s Top 6 Business Stories through our End Of Day Wrap Up:

 

INDIA

 

Tata Sons Chairman to pitch purchase of Jet Airways to Board.

According to a report by The Times of India, Tata Sons Chairman N. Chandrasekaran is likely to present a plan to buy Jet Airways to the company’s Board. The plan will include a projected path to combine Jet with Tata’s existing aviation interests.

 

If successful, this deal would give Tata a 24% combined market share in the country.

 

RBI may ease restrictions on lending for small companies.

Ahead of the Board Meeting scheduled for November 19, Reserve Bank of India (RBI) could consider relieving restrictions on lending for small companies.

 

Economic Affairs Secretary is expected to make a presentation charting the concerns of the Finance Ministry and may bring up the question of transferring RBI’s surplus cash reserve, as per a Business Standard article.

 

Moody’s lowers Tata Motors’ rating on back of JLR performance.

Moody’s downgraded Tata Motors’ rating and outlook over Jaguar Land Rover’s (JLR) poor sales performance. The British luxury carmaker’s ratings were lowered to Ba3 negative from Ba2 stable.

 

JLR’s operating and credit profile deteriorated due to a slowdown in the Chinese market, reservations over Brexit and lower sale of diesel vehicles in Europe.

 

US/INTERNATIONAL

 

Warren Buffett buys bank and tech stocks by investing in JP Morgan, Oracle and more.

Warren Buffett’s Berkshire Hathaway announced a c. $4bn and c. $2bn stake in JP Morgan Chase and Oracle respectively, with new investments in PNC Financial Services Group and Travelers Companies.

 

Berkshire Hathaway reportedly spent a total of $17.7bn on equities in the September quarter.

 

Bitcoin tumbles to lowest level in more than a year, goes below $6000.

Bitcoin fell over 10% on November 14, now trading at its lowest value in over a year. An imminent split into another digital currency, Bitcoin Cash has reportedly driven the cryptocurrency’s fall.

 

Bitcoin has lost more than 60% of its value this year. It stands at $5,407.02 as of November 15.

 

Theresa May’s Brexit deal gets Cabinet’s green light.

British Prime Minister Theresa May secured approval for the Brexit deal from the Cabinet, Parliamentary approval awaited.

 

However, two senior members of PM May’s cabinet, Brexit Secretary Dominic Raab and Pensions Secretary Esther McVey have resigned over the terms of the approved Brexit deal.

 

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