Archive

Reuters blog archive

from Expert Zone:

How to get India on the highway to high growth

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The president's address to parliament this week lays out the new government’s roadmap to get India’s economy back to high growth. That will take time and is not easy either.

True, the BJP government led by Narendra Modi inherited a weak economy - growth was a mere 4.7 percent; industry was static; there was no employment generation; and inflation was at over 8 percent. The only comfort was that foreign exchange reserves exceeded $312 billion.

New concerns have also emerged. The India Meteorological Department has confirmed that this year’s monsoon will be 93 percent of the long-term average and will hit production of rice and horticulture, particularly in the south and the north-east. This will raise food inflation further, reduce exports of agricultural commodities as well as part of the demand for industrial goods, and delay an upswing in the investment cycle. It will, therefore, take a little longer to get the economy back on the rails.

The roadmap, however, is clear. The government has identified five complementary ways to create an environment that will foster growth.

from Expert Zone:

India market weekahead – Partial profit-booking may be prudent before election results

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The so-called "rally of hope" stuttered during the week as Indian markets turned volatile. The Nifty closed at 6695, down 1.30 percent. The fear of the El Nino effect and the IMD forecast of below-normal rainfall seems to have made investors cautious.

With election results two weeks away, investors need to take a stand in the next few days. Although there can be a number of outcomes, only two would be termed positive for the markets - a landslide victory or a comfortable majority to form a stable government. The other scenarios such as a fractured mandate, a third front coalition or a weak UPA or NDA coalition would deflate the sentiment built up till date as the markets have already discounted a favourable outcome.

from India Insight:

Strange weather: how a bad monsoon could be good for India

By Mayank Bhardwaj and Jo Winterbottom

A bad monsoon in India is the one that fails to deliver enough rain … most of the time. This year, a lack of rainclouds could be the silver lining that the government needs. India has no place left to store more grain, and can ill afford a hefty payout to farmers for the truckloads of produce that another monsoon could produce.

The annual four-month monsoon rains begin around June 1. More than half of the country’s arable land relies on the monsoon to grow the crops that help feed the world's second-biggest country by population and put India's rice and sugar on the global market.

from The Human Impact:

Heroes and politicians, Indian floods show the good, bad and ugly

What many journalists and aid workers say is true – it is only in times of crisis, such as disasters and war, that you observe the best and worst of humanity.

In displacement camps where survivors have fled, for example, a cyclone which has flattened their village or a raging insurgency which has killed their loved ones, amid stories of pain and suffering, you will often hear incredible accounts of survival and hope.

from Expert Zone:

India Markets Weekahead – Volatility seen as RBI policy review in focus

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Volatility is here to stay and trying to predict the markets on a daily basis is a futile exercise. It’s no better than tossing a coin.

Monsoon rains are early and heavier then normal, raising the hopes of green shoots in the next few months. Macro numbers were showing signs of bottoming out but the rupee slide has thrown calculations awry. A feeble request by the finance minister urging people to shun gold won’t do much good in a country enamoured by gold.

from Expert Zone:

Why the RBI should cut rates again

(Any opinions expressed here are those of the author and not of Thomson Reuters)

In May, the Reserve Bank of India (RBI) had hesitatingly cut the repo rate by 0.25 percent, which made no impression on the stock market or commercial banks. That was because both expected the cut to be more substantial. But the RBI had not obliged.

Perhaps the monsoon, which arrived on the dot and is progressing satisfactorily, may make some difference to the RBI’s expectations of food inflation - which had been its principal reason for hesitancy. While it’s too early to predict monsoon behaviour for the rest of the season and the likely improvement in agricultural production, it does appear the improvement should be significant and inflation dampened perceptibly. Reduction in inflation, however, is not the only reason why the interest rate should have been cut.

from Expert Zone:

No silver lining in this monsoon cloud

(The views expressed in this column are the author's own and do not represent those of Reuters)

India's monsoon rains have been delayed and were already 30 percent deficient by the end of June. There are doubts whether rains will pick up during the rest of the season. August and September are likely to be dry which will damage crops and reduce farm incomes.

from The Great Debate UK:

Why Pakistan monsoons support evidence of global warming

-Lord Julian Hunt is visiting Professor at Delft University, and former Director-General of the UK Met Office. The opinions expressed are his own.-

The unusually large rainfall from this year’s monsoon has caused the most catastrophic flooding in Pakistan for 80 years, with the U.N. estimating that around one fifth of the country is underwater.  This is thus truly a crisis of the very first order.

from Photographers' Blog:

“Allah-u-Akbar!” (God is Great!)

[CROSSPOST blog: 557 post: 366]

Original Post Text:
Some pictures still shock me. Some make me laugh; many provide an insight or window into a new idea but only a few haunt me with my mind's eye returning to them again and again.

On Wednesday 28th July an Airblue plane crashed  just outside Islamabad in the beauty spot of the Margalla Hills killing all 152 on board. The cause of the crash, as yet unconfirmed, is thought to have been the driving monsoon rain. I edited the pictures shot by Reuters photographers who reached the scene. Images ranging from smoke drifting through the hills, men scrambling in the charred rocky, woodlands, picking through twisted metal and rocks looking for signs of life; tied cloth bags, dripping with the blood  that contained the remains of the passengers, to a severed arm and hand, the fingers still perfectly formed, just lying on the ground. There were no survivors.

from Russell Boyce:

“Allah-u-Akbar! God is Great!”

Some pictures still shock me. Some make me laugh; many provide an insight or window into a new idea but only a few haunt me with my mind's eye returning to them again and again.

On Wednesday 28th July an Airblue plane crashed  just outside Islamabad in the beauty spot of the Margalla Hills killing all 152 on board. The cause of the crash, as yet unconfirmed, is thought to have been the driving monsoon rain. I edited the pictures shot by Reuters photographers who reached the scene. Images ranging from smoke drifting through the hills, men scrambling in the charred rocky, woodlands, picking through twisted metal and rocks looking for signs of life; tied cloth bags, dripping with the blood  that contained the remains of the passengers, to a severed arm and hand, the fingers still perfectly formed, just lying on the ground. There were no survivors.

  •