1. News Of The Week
(18 Oct,2010 to 22 Oct,2010)

2. US set to rake up Yuan at
G20 meet
• China’s exchange rate policy, which is under growing attack,
could figure high on the agenda of the upcoming G20
meeting.
• At a time when many countries, especially in the West, are
struggling to boost growth after the global economic
slowdown, it could be difficult to accept “large-scale managed
demand diversion”.
• Countries that are prepared to allow their exchange rates to
fluctuate are less dependant on the monetary policies of
other countries. And so those concerned with the posture of
US monetary policy are likely to be less troubled, if they allow
the currencies to fluctuate freely.

3. China vows major
breakthroughs to secure growth
• China must make a ‘major breakthrough’ in its industry-heavy
growth and advance ‘vigorous but steady’ political reform to keep
the world’s second-biggest economy from faltering
• The Chinese economy is forecast to grow by about 50% to $7.5
trillion, powering past Japan and moving closer to the biggest
economy by far, the US. But Officials fear domestic imbalances
could drag down that ascent by suppressing demand and stirring
unrest.
• Expanding domestic demand is the guiding long-term strategy of
country’s economic and social development. The focus of the next
stage of economic work must be tapping the role of domestic
demand, especially consumer demand, in generating economic
growth.

4. Traders in a mad scramble
for Coal India, SBI issues
• The share sale from Coal India and the first retail bond
offering by the State Bank of India were sold out as domestic
investors borrowed to buy them, expecting high returns as
overseas investors keep faith in economic and earnings
growth.
• State Bank is selling 15-year bonds, with call options, with a
coupon of 9.25%, which is at least 125 basis points higher
than government bonds.
• A basis point is 0.01 percentage point. This is better than
comparable bonds in the market such as the 8% Infrastructure
Development Finance Corporation bonds that have tax
benefits too.

5. Toyota says to begin
producing Prius in Thailand
• TOKYO: Toyota Motor Corp . said it would
begin producing its best-selling Prius hybrid
vehicle in Thailand from November.
Toyota already produces and sells its Camry
Hybrid sedan in Thailand, the company said in
a news release.

6. EU asks India to rethink
'intense' import restrictions
• The EU has said that restrictions on imports imposed by India a bit
intense and need to be looked into.
• Import duties for particular products are increased temporarily by
governments when they are sold at prices lower than those
prevailing in the home markets of exporting countries , when they
are subsidized by exporting country or when there is a surge in its
imports.
• Trade defence instruments should be transparent to ensure that
rights of defence of interested parties are protected, there are
proper and timely disclosures. Moreover , there has to be impartial
review during and after the investigation process.

7. Will be right back soon…
Thank You