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| December 4 - December 11, 2010 | News for the Banking and Financial Services industries - WEEKLY SUMMARY |
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| Week At a Glance |  |  |
The EconomyBanking and InsuranceInvestment Banking, M&A, VC, PE, OfferingsFinance TrendsInsight
| The Economy | | |
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Goldman underweight on India in 2011mydigitalfc.com US bank Goldman Sachs is underweight on Indian equities in 2011 largely due to expensive valuations, but expects acceleration in equity market returns in the second half of the year. Setting a full year target of 6800 points for the benchmark index Nifty for 2011, Timothy Moe, chief Asia-Pacific strategist, Goldman Sachs (Asia), remained underweight on India. From Wednesday's close, it is 15.18 per cent appreciation for the Nifty. Explaining his view, Timothy said, "India remains a good story, but valuations remain stretched. In long-term strategy, India is a positive long-term structural case."     |
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Lower margins not possible for now: BhattBusiness Standard After the Reserve Bank of India (RBI) said Indian banks should lower lower net interest margins by increasing efficiency, the country's largest lender, State Bank of India (SBI), said this was nearly imposible at this point in time. O P Bhatt SBI Chairman O P Bhatt has said that given the high transaction costs in the economy, the margins were unlikely to come down in the near future. "I don't think it is achievable in the immediate future. If you look at advanced economies where net interest margins are less, their base interest rates are also less. In our economy, average interest rates are in double digits. So, if you take that as a percentage, I don't think our net interest margins are very high," Bhatt said on the sidelines of the annual banking seminar, Bancon. |
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| Banking and Insurance | | |
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| Investment Banking, M & A, IPO/Offerings, VC & PE | | |
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| Finance Trends | | |
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Positive on banking, finance & consumer goods for 2011: IL&FSEconomic Times In an extensive interaction with ET Now, Vibhav Kapoor, Group Chief Investment Officer, IL&FS analyses food inflation, liquidity & other factors moulding the Indian economy today, while also zeroing in equity sectors that he finds attractive for 2011. Mr Kapoor says that the market has got bogged down in the last few weeks because of several things, the scams coming out, the tight money in the money market, interest rates going up a little bit, so all these factors, also oil going up to $90, so all these things are beginning to have some impact on the market but these are all short-term issues. |
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| Insight | | |
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| Asia Pacific M&A Bulletin: The Asia Story |
| PricewaterCoopers |
The Asia Pacific economy is expected to grow at 7.5% this year, compared to 3.3% for US and 1% for European Union. Underpinning Asia's robust growth are developing Asia's 9.2% and newly industrialized Asian economies' 6.7%. The twin engines of Asia, China and India, are at the front of the pack with 10.5% and 9.4% growth respectively.
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| Equity Strategy:The "Value Style" versus "Growth Style" question still murky |
| Wells Fargo |
| We do expect relative recovery to take place for the financial stocks. When that does begin to occur (and it could be during calendar 2011), we would also expect to see a later-than-normal recovery of value-oriented accounts versus growth-oriented accounts. We believe the period for "value style" outperformance has very likely been pushed off several years by the deleveraging nature of this economy and its impact upon the Financial sector. |
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