| Fed keeps key interest rate steady
Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they nonetheless expressed hope that the economy will safely make its way. The policymakers also stood by their belief that the biggest potential danger to the economy is that inflation won't recede as they anticipate. Against these economic crosscurrents, the Fed left an important interest rate at 5.25 percent on Tuesday. In turn, commercial banks' prime interest rate for certain credit cards, home equity lines of credit and other loans -- would stay at 8.25 percent.
The Hindu Business Line : Profit boost for overseas borrowers
A 7 per cent appreciation in the rupee has spelt trouble for Indian tech giants, but leading companies that have raised debt overseas have actually received a profit boost from the rise in the domestic currency. Companies such as Larsen & Toubro, Tata Tea and Great Offshore have reported a surge in net profit in the June quarter on higher "other income" coming from exchange-related gains on their foreign loan outstandings. The rupee has appreciated by 7 per cent in the March-June quarter. This has come as welcome development for firms that have significant dollar-denominated loans as a rising rupee reduced the cost of servicing the loan, both in terms of interest payouts and the actual loan amount outstanding. A case in point is that of engineering and construction major Larsen & Toubro, whose net profits have more than doubled this June quarter helped by "other income" of Rs 211.5 crore.
Fed leaves benchmark interest rate unchanged
WASHINGTON -- The Federal Reserve left a key interest rate unchanged on Tuesday as worries about inflation trumped concerns about turbulent financial markets.
Fed Chairman Ben Bernanke and his colleagues voted unanimously to keep their target for the federal funds rate, the interest that banks charge each other, at 5.25 percent, where it has been for more than a year.
The Fed decision came after a volatile couple of weeks on Wall Street as investors have been beset by troubles in global credit markets stemming from a sharp rise in defaults on subprime mortgages.
In a brief statement, the Fed acknowledged the turbulence and said the downside risks to the economy had "increased somewhat."
But the Fed continued to state that the predominant risk remained that inflation "will fail to moderate as expected."
Many analysts believe the Fed will remain on hold through the rest of this year, preferring to watch and make sure that inflation moderates back to an acceptable level.
ICICI Bank's Profit Rises 25 Percent on Loans, Fees (Update2)
July 21 (Bloomberg) -- ICICI Bank Ltd., India's second- biggest bank by assets, said first-quarter profit rose 25 percent as increasing interest rates failed to deter borrowings and the lender earned more from fee income and international operations. Net income in the three months ended June 30 rose to 7.75 billion rupees ($192 million) from 6.2 billion in the same period a year earlier, the bank, which completed India's biggest share sale last month, said today in an e-mailed statement from Mumbai. That was higher than a 7.49 billion rupee median estimate of five analysts surveyed by Bloomberg News. ``The bank has shown good profit growth based on a rise in fee income,'' said R.K. Gupta, who manages 3.5 billion rupees at Credit Capital Asset Management in New Delhi.
Briefing - ASIA REAL ESTATE - Aug 3, 2007
Rents have risen at their highest rate in 18 years because investors have sold property assets to boost their superannuation, housing economists say. And an interest rate rise next week would make buying a home even harder for those hit already with higher rent. PIONEER GROUP INAUGURATES US$5 MLN BUILDING IN CEBU CEBU CITY - The Pioneer Group recently inaugurated its P230 million (US$5 million) building at the Cebu Business Park, the city's new business district. Pioneer president and chief executive officer (CEO) Lorenzo Chan said the company already had plans for expansion since 1961, and "Cebu is the first place that came into our mind." AUST'S MACARTHURCOOK SAYS NO DIRECT EXPOSURE TO US SUB-PRIME SYDNEY - Property investor MacarthurCook (ASX:MCK) says it has no direct exposure to the US sub-prime mortgage market.
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