Bridge to nowhere? Some doubts on U.S. economy justified, doom and gloom is not

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Wall Street scurrying for the exits? More and more investors apparently see the economy becoming a bridge to nowhere.

Just a few months ago, investors drove the U.S. stock market SPX, -2.33%  to an all-time high. Now they’re scurrying for the off-ramp and showing fresh doubts about economy. Have things really gone south that fast?

Not really.

The economy is forecast to grow at an above-average speed of 2.6% in the fourth quarter, for one thing. Consumer confidence is at a two-decade high. The unemployment rate remains at a 49-year low. And the holiday shopping season is shaping up to be a big one.

Still, some warning signs have emerged.

Home sales have softened after a rise in mortgage rates. Corporate investment has tapered off. Job creation slowed in November. And a festering trade dispute with China and resulting tariffs have raised costs for businesses and consumers.

“It’s becoming clearer by the day that the best days for this economic cycle are behind us,” asserted Scott Anderson, chief economist of Bank of the West.

The sudden shift in perception is forcing the Federal Reserve to reconsider how many times it will raises interest rates in the next year.

Not only does the economy seem a touch more vulnerable than it did a few months ago, a recent upturn in inflation also appears to have crested. The Fed has been gradually raising rates to head off an unwelcome increase in rates, but now the problem seems less urgent.

One sign came last week in a weaker-than-expected November employment report. The economy added just 155,000 new jobs — well below the 190,000 forecast — and the yearly increase in hourly wage growth stood pat at 3.1%.

More evidence might emerge this week. The consumer price index, which tracks the cost of living, could show a flat or even negative reading for the first time in eight months. The annual rate of inflation as measured by the CPI could drop to a nine-month low of 2.2% from 2.5%

Similarly weak readings are likely in other inflation barometers for wholesale U.S. goods and imported products.

What’s a common thread?

Falling oil prices . A surge in petroleum helped fuel an upturn in inflation earlier this year that spurred the Fed to raise U.S. interest rates three times. Now lower oil prices are acting as a brake on inflation.

Lower oil prices CLF9, +1.24%  will probably deliver seemingly disappointing retail sales in November.

Americans spent a lot less filling up at gas stations, making it look like retailers had a bad month. Economists polled by MarketWatch predict a lackluster 0.2% increase.

“Here’s a word of advice on anyone planning to use the November retail sales report as a guide to how the holiday shopping season is going: don’t,” said chief economist Richard Moody of Regions Financial.


Why is Nomura upbeat about Indian tyre industry? Apollo Tyres, Ceat & Balkrishna on its radar

    Global research firm believes that the Indian tyre industry is witnessing a phase of cyclical uptick in demand.

    The industry fundamentals are in a better shape now due to the demand and high utilization as well, analysts at the firm wrote in their report.

    It sees 8 percent volume CAGR over FY18-21.

    The segment is a good play on the back of healthy growth outlook, pricing discipline, and benign commodity prices, which will support margins.

    Further, the benign commodity prices could also lead to 20-25% EBITDA CAGR over FY18-21.

    Nomura expects strong demand scenario to keep utilization healthy.

    Among stocks, it has initiated coverage on Apollo Tyres with a target at Rs 288, along with Ceat and Balkrishna Industries.

    On Ceat, it neutral with a target at Rs 1,346. In case of Balkrishna Industries, it is also neutral with a target at Rs 1,008.


    The Opening Bell: Where currencies start on Friday, November 30, 2018

    FED FOMC minutes from the November 8 meeting just out:
    – Almost all policy makers say rate hike warranted ‘fairly soon’.
    – Many said it might be appropriate at some upcoming meetings to begin putting greater emphasis on evaluating incoming data.
    Nothing else of note, and very little movement initially from it.

    Yesterday the big news was the USD sell off after Powell’s speech, which stole some of the Meeting minutes thunder, with the highlight being the comment that they are just below the neutral rate. As the Market digested this yesterday the USD came back a little, as traders wondered if it got a touch ahead of itself.  Previously the Fed has stated that it is likely to go a bit above neutral anyway, so if the neutral rate is circa 2.5-3.5%, by definition we are indeed just below that. One hike this year and four next year still only takes us to a 3.5% Federal Funds rate, so maybe the comment was not as dovish, and not as big a change in the Feds thinking as it appears.

    NZ Business confidence came out at -37.1, the same as last time. At the extremes this was really market moving, but for now has fallen somewhat to the background.

    Australian Private Capital Expenditure missed, but it is a volatile data point, and there was little reaction.

    Teresa May is out saying the analysis shows the negotiated Brexit Deal is the best deal, and the EU has made it clear it is the only deal. A fairly healthy dose of scaremongering one expects, and a few more headlines like this from May before the December 11th vote will be no surprise.

    Nothing too major on the economic calendar for the weekend.

    Global equity markets are mixed, Dow -0.24%, S&P 500 -0.19%, FTSE +0.49%, DAX -0.01%, CAC +0.46%, Nikkei +0.39%, Shanghai -1.32%.

    Gold prices are up 0.2% trading at $1,224 an ounce. WTI Crude Oil prices have bounced from their lows, currently up 0.2% on this time yesterday trading at $51.88 a barre


    Why is credit card usage on the rise?

    Clockwise from top: Sumit Bali, Ranjit Punja, Surya Bhatia, and Vijay Jasuja

    In the past couple of years, credit card outstanding has been increasing. It went up 35% in value during the April-October period in FY18. We ask experts about the increased focus on credit cards

    Sumit Bali, senior executive VP and head-personal assets, Kotak Mahindra Bank

    If you look at the overall lending market, there is hardly any demand from companies. A lot of repricing is happening, but there is no fresh demand coming in. It is the same story for home loans as well. These are two big segments going through a slowdown. On the large ticket loans, a lot of churn is happening. Borrowers with higher rates of interest are negotiating and getting lower rates or moving to other banks at a lower rate. Overall, that segment is not growing for the bank.

    However, the unsecured piece has been growing. Over the last few years, we have seen systemic change in unsecured lending. Today, you have a lot of information from the (credit) bureaus. Fintech companies give you a lot of data about a customer. Even if you don’t have a customer’s credit history, you can still onboard her based on other data about her. Based on the transaction history from her savings account, though she is a new-to-credit customer, a bank is now comfortable to lend. Also, post-demonetization, acceptance of card has grown.

    Another reason why personal loan is growing is that there is a segment now that is happy to consume now and pay later. Today if you want to go on a holiday or buy latest gadgets, the new generation is happy to take a loan. As consumers, you should use credit card sensibly because ultimately it will reflect on your credit history.

    Vijay Jasuja, chief executive officer, SBI Card

    Overall, credit card spends have increased 42% year-on-year. Our credit card outstanding growth has been 80% year-on-year. There are multiple reasons for the growth in spends. Firstly, the e-commerce boom has increased the spends on the cards. Secondly, the confidence level of consumers to use cards has gone up post-demonetization. Earlier, there was a concept that unless you have a credit history you will not be eligible for a credit card. But now individuals have a higher income in their first year of job itself. But they don’t have a credit history. Technically, they will be called new-to-credit customers. Another segment is the individuals in the tier 1 and 2 cities who see their peers using cards.

    The question is, will the bubble burst if credit card spends go up significantly? In the credit card asset portfolio, the credit card outstanding amount is of people who are away from the due date. There are customers who get their high-value spends converted to EMIs, which has also increased the overall credit card outstanding amount. Then there are people who don’t have sufficient liquidity to pay. They pay a minimum amount and revolve the facility with high interest. This is the segment (that is) risky. About 20-27% of our customers fall in the last segment and it is consistently the same. That means additional and new-to-credit portfolio are not bringing in additional risk.

    Ranjit Punja, co-founder and CEO,

    Largely, since the last downturn in the economy, lenders have become careful about who they lend to. They typically only lend to those who have demonstrated a good credit score. They have clamped down on bad credit customers. However, today, with a general upsurge in income, the  whole advent of e-commerce, the ability to pay online and digitally savvy customers has led to utilisation of more income. Banks have started believing that newer fintech models are probably the way to go in terms of underwriting. At this point, it is a drop in the ocean. Banks are making the underwriting journey simpler. There is a lot of data available digitally.

    Time will tell if that is a good way to look at lending. At this moment, the end users are enjoying the benefit. Typically, in the financial world, you see these ups and downs. You will see a bad credit cycle and then delinquencies. I am concerned with newer models that are not time tested.

    As a consumer you shouldn’t spend beyond your means. Credit card and unsecured loans tend to do that to you, especially for people who don’t have the discipline to borrow and repay. Credit card is a simple way to overspend. And interest rates are very high. Being credit wise is critical for someone who has not used a credit card ever. Our advice is to start small, display discipline and make sure you service you debt.

    Surya Bhatia, New Delhi-based financial planner

    The push by the government has helped India convert to a cashless economy. Meanwhile, none of the banks want to miss out on the retail population. The people in the higher income bracket were already having a credit card. Digital banks like Patym Payments Bank will give this a further push. The bigger banks want to have the bigger pie, which includes the HNI segment and those in the higher income group. But the real money in terms of volume is the young population. Everyone wants to grab hold of that population. The young millennials are the people who want to spend, especially digitally.

    There is also a bit of loyalty factor. For instance, I still hold the credit card that I got for the first time. In the last many years, I have bought two other cards and discarded them too. But my first credit card still continues. There is no specific reason why I hold on to it. Every bank wants to cash in on that population. The idea is to catch them young and to make them stick with you.

    Consumers have also changed. They are now spoilt for choices. In the early days, they used to pay for credit cards. Now there is no concept of paying for cards. For instance, if you spend a certain amount, most of the card providers waive off the charges.

    Logically, you should not have more than one card. And better still is stick to a debit card. Once you understand debit cards well enough, then may be opt for a credit card.


    Visual Capitalist Takes On Personal Finance With New Project

    There’s no doubt that financial decisions have a crucial impact on our lives.

    Everyone should have access to knowledge on how to save money, buy a home, make smart purchases, and build a robust portfolio of investments. This information can be dry at times, but it can also be the difference between being living month-to-month and achieving financial independence.

    Yet statistics show that only about 16.4% of high school grads were required to take a course on personal finance, and problems go far deeper than that. Right now, financial literacy is dropping around the globe – and even worse, a record-high amount of debt is weighing younger generations down.



    Top Personal Finance Tips You Should Make A Priority On Your Work Anniversary

    Clint Haynes

    I am a Certified Financial Planner® and founder of NextGen Wealth. We help our client’s on their journey to financial freedom.


    Congratulations, you’ve made it another year. Another one in the books and just that much closer to retirement. While taking a deep sigh, reflect on what you accomplished the last 12 months at your job. Did you get a promotion? Did you get a raise? Did you get a new boss?

    Whatever happened, I hope it was a great year and you made some positive strides in your professional life. This anniversary serves as a great reminder for some personal financial to-dos. Let’s take a look at my best personal finance tips that you can accomplish on your work anniversary.

    Review Your 401(k)

    Take a look at how your 401(k) has performed over the last 12 months. Is it what you expected? Was the return commensurate with the risk? Did it perform in a manner that will get you closer to retirement? Once you’ve answered these questions, it might be time to reassess how your 401(k) is invested. If you’re invested in a good target date fund (not all are created equal) based on the date of your retirement, you may not need to do anything at all.

    Target date funds are automatically rebalanced for you. However, if something has changed with your retirement picture, then you may need to change your target date fund to another year. If you’re invested in individual funds, you’ll want to examine the performance of each of those, as well as all individual funds in your 401(k), and make the appropriate fund changes and allocation updates. Regardless, if you are in individual funds, you will want to rebalance your portfolio. This could mean going back to the allocation you set 12 months ago. Or it could mean going to a slightly more conservative allocation since you’re one year closer to retirement.

    What To Do With A Salary Increase

    Did you get a salary increase recently or sometime over the last year? What did you do with that money? Hopefully, you set some aside and it didn’t all go to spending.

    My rule of thumb when it comes to salary increases is to put at least 50% of it toward savings and take the remainder home with you. This still means your take-home pay will increase.

    As for where the savings should go, the easiest place is your 401(k) if you’re not currently maxing it out. If you already contribute the maximum, then maybe it should go toward an IRA (Backdoor Roth IRA), your children’s college savings or an additional savings account earmarked for a financial goal like a big trip, second home, new car, etc.

    If you are saving this money for one of those latter goals, then I would highly recommend automating it. This means that once that money hits your checking account, it is automatically transferred out to the appropriate account the next day. Remember, pay yourself first.

    Live By The Rule Of Thirds

    Since we’re talking about saving, now is a good time to bring up the rule of thirds. If you’re not familiar, it’s a plan for having a third of your paycheck go to taxes, a third to savings and a third to living. It’s a simple but very effective strategy. If you don’t have to save a third for taxes because you’re in a lower tax bracket, that just means more can go to savings and living.

    If you’re able to save a third of your salary, then I can almost guarantee you’re going to be way ahead of all your friends — and that much closer to financial freedom and retirement. Granted, saving a third might seem like a daunting task if you’ve never done it before. If that’s the case, then start slowly and work your way up. If you’re at 15%, then bump it up to 20% this year and put the majority — if not all — of your salary increases and raises towards savings. You will be there before you know it.

    Review Your Stock Options/Restricted Stock Units

    Your work anniversary serves as a great reminder to review how your stock options and/or restricted stock units are performing. This also means reviewing how many are now vested and what the tax consequences of liquidation look like. I would recommend working with a CPA or Certified Financial Planner® if you’re not well-versed in this area.

    Stock options and restricted stock units can pose some tricky tax situations, so you want to ensure that you’re making the right decision so that you don’t get hit with a tax bill you weren’t expecting.

    Negotiate A Raise

    Don’t think it’s possible to negotiate a raise with your boss? Think again. It’s the 21st century, and things have become much more fluid and open to negotiation in the workforce. Employers want to maintain their top-tier talent. If that’s you, then they want to make sure they’re keeping you happy.

    With that being the case, I’m not talking about your annual review. I’m talking about a conversation outside of your annual review. If you’re not a stellar employee and you’re not able to make your case, then there’s no sense in having the conversation. If, on the other hand, you can prove your worth by what you’ve accomplished over the last year and how you’re consistently getting contacted by other employers and recruiters, then you can make a much better case for a salary increase. It’s much easier for your employer to pay you more than to find a replacement if you’ve made yourself irreplaceable.

    You would be surprised at how much more apt they are to having the conversation if you fit the mold of irreplaceable. If you’re not quite there yet, then make it your goal over the next 12 months to become viewed that way. I can assure you it’s worth it.

    So, there you have it: The five must-dos for this work anniversary and every one after. Put a reminder on your calendar so you’re ready for next year.


    Chartists betting on these 10 stocks to deliver gains in next three weeks

    Top equity indices consolidated in thin trading and managed to eke out gains during the truncated week gone by. The BSE Sensex rose 146 points, or 0.42 per cent, for the week to 35,158, while NSE’s Nifty added 32.20 points, or 0.31 per cent, to end the week at 10,585.

    Nifty’s next critical resistance appears to be placed around 10,710, whereas on the downside, the bears may pick up momentum on a strong close below 10,500, said Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, Chartviewindia.

    “It is looking like a directionless market, and for the time being, traders should focus on stock-specific opportunities on both directions until Nifty registers a The stock has traded in a rectangle formation for all of 2018 so far. A couple of signals have emerged, which point towards likely upward move in prices. The RS Line against Nifty Infra index has remained in an upward rising channel and has broken out of that as well. Against the broader CNX500 index too, the RS Line has broken out of a formation giving a strong move. Both of the RS Lines presently remain above its 50-week moving average which can be seen as a confirmation of the present set up. The PPO (Price Oscillator) has turned positive. The weekly RSI is also seen breaking out of a pattern while marking a bullish divergence against the price. Full stochastic has just bounced back from the oversold area. Resumption of an uptrend on the counter cannot be ruled out over coming days.

    After marking a high around Rs 102, this stock has remained in a corrective decline. Though it slipped below the 50-week moving average (WMA), it is seen attempting to form a base in the Rs 67-72 area. The RS Line, when compared against the broader CNX500, is moving up again and is also seen crossing its 50-WMA, which can be seen as a confirmation, PPO has flattened its trajectory and is seen moving towards getting positive. The weekly MACD, too, is likely to report positive crossover in the coming days. A fresh buy signal is seen on weekly stochastic. Some upward revision in price in this stock cannot over the coming days be ruled out.

    This counter appears to have registered a sustainable breakout above its 100-Day Moving Average which acted as a resistance in the past by thwarting the pullback rallies. With consecutive positive closes, it looks ripe for a decent pullback with targets placed around Rs 210. Hence, positional traders are advised to buy into this counter for a target of Rs 210 with a stop loss below Rs 174 on a closing basis.

    For quite some time 100-day moving average acted as a supply point to this scrip which this counter appears to have successfully absorbed. With new swing highs in this pullback phase and a decent base around Rs 360 level, this counter appears to be gaining momentum. In such a scenario, we expect it to reach its target of Rs 447 level over time. Hence, positional traders should buy into this with a stop below Rs 360 on a closing basis.

    This counter is looking ripe for a breakout as volumes are picking up as it is moving towards its higher of the consolidation zone Rs 185-192 levels. Hence, on such a breakout it can swiftly move towards its initial target of Rs 203 level. In anticipation of a breakout, positional traders shall buy at current prices and add further if available around Rs 187 level with a stop loss below Rs 184 on a closing basis.

    This stock has taken off its weekly trendline resistance with a buy crossover in its momentum indicator MACD. The stock has started it Wave 5 up and it is expected to achieve minimum equality target of Rs 855 on the upside. On the lower side, Rs 797 is an immediate support, hence with that as a stop loss we recommend buying this stock.

    This stock has provided a breakout from a falling wedge pattern and with that, it seems to have completed five waves declining structure. The momentum, indicator MACD has provided a buy crossover on the daily chart with a positive divergence whereas on the weekly chart the stock has provided a positive close, hence a 38.2% retracement of the entire fall is expected, so we recommend buying this stock.

    This stock has formed multi bottoms on the daily charts. It has also closed in the positive territory in the last week after six consecutive positive closes. A minimum of 38.2% retracement of the entire fall is expected which comes to Rs 347.70. On the lower side Rs 308 is a crucial support hence that should be the stop loss on a closing basis. The momentum indicator MACD has also provided a buy crossover on the daily charts whereas on the hourly charts it has provided a buy crossover with a positive divergence thus supporting the short-term uptrend.

    On the hourly chart, it seems that the stock is on a verge to give a breakout of its Inverse Head and Shoulder formation, which is a bullish reversal pattern and indicates an upside movement in the counter. Daily momentum indicator RSI has formed a positive divergence which points out for a positive breath in the stock.

    This stock has been trading above its 21-day moving average, which is placed at Rs 496 level, indicating a positive trend in the stock. On a smaller time frame, the stock has given a breakout of its range-bound movement with above average volume which indicates a robust upside movement.

    breakout on either side,” he said.

    Focus On Loan Waivers, Agriculture On Congress Madhya Pradesh Manifesto

    Focus On Loan Waivers, Agriculture On Congress Madhya Pradesh Manifesto

    The Congress today promised to write off farm loans of up to Rs. 2 lakh and provide a “salary grant” for five years to industries offering jobs to the youth if elected to power in Madhya Pradesh.

    Releasing its manifesto for the November 28 Assembly polls, the main opposition party also promised a slew of benefits for other sections of the society in the state where it is making a renewed bid to dislodge the Bharatiya Janata Party (BJP) from power.

    Aggressively wooing farmers, who had launched a statewide protest last year, the party promised a social security pension to them and a rebate in the registration fee of land documents, besides a financial help of Rs. 51,000 for the marriage of daughters of small cultivators.

    In its manifesto titled “Vachan Patra” (document of promises), the Rahul Gandhi-led party, out of power in Madhya Pradesh since 2003, also promised a minimum support price (MSP) for crops in accordance with the Swaminathan Commission’s recommendations.

    Releasing the 112-page manifesto at a press meet, state Congress chief Kamal Nath described it as the “voice of the people of Madhya Pradesh”, saying the document was prepared after consultations with every section of the society.

    The manifesto offers sops to every section of the society, including government employees, homemakers, the common people, women and journalists, but the focus is largely on farmers and young people.

    Among the plethora of measures for farmers mentioned in the document, the Congress has promised a social security pension of Rs. 1,000 per month to farmers who attain the age of 60 and whose land holding is below 2.5 acres, besides writing off farm loans of up to Rs. 2 lakh.

    Other sops promised to farmers include a 50-per cent subsidy on loans for agriculture equipment, halving the power bill rates for them, a bonus on the MSP of some crops and a subsidy of Rs. 5 per litre on milk procurement among others.

    The opposition party also promised a re-investigation into the Mandsaur police firing incident, in which six farmers were killed in June, 2017.

    It also promised a rebate in diesel and petrol prices.

    Professionals like tourist guides and lawyers would be provided an “encouragement fee” of Rs. 4,000 per month for five years for settling down in their respective professions.

    The Congress also promised a “salary grant” of Rs. 10,000 per job to the industries offering employment to the youth of the state.

    It promised the constitution of a Yuva Aayog (Commission for the Youth) to look into the problems of young men and women.

    The Congress also promised several sops, including a rebate in the Goods and Services Tax (GST) and subsidised loans for setting up industries with an investment of at least Rs. 100 crore.

    Those covered under the existing social security pension scheme would get Rs. 1,000 per month, instead of Rs. 300 now, if the Congress was elected to power in the state, according to the document.

    A subsidy of Rs. 100 on gas cylinders to poor families and free education to girls up to the post-graduation level were also promised by the party.

    In a bid to appease the agitating general category people, the opposition party promised the constitution of a Samanya Varg Ayog (General Category Commission) to look into their issues.

    The state recently saw a series of protests by people from the unreserved (general) category communities.

    Besides, the Congress promised regularisation of daily wagers, 30 per cent government contracts to tribals, setting up of a Senior Citizen Board, a law to protect journalists and lawyers, honorarium to journalists above 60 years of age, tele-medicine facility in rural areas and four new medical colleges.

    Mr Nath said a Jan Aayog (People’s Commission) would be constituted for investigations into scams like Vyapam.

    A “jan jababdeh kanoon (public accountability law) would be enacted to hold the government departments responsible for providing public amenities, he added.

    The manifesto has 973 points on 50 subjects.

    State Congress Campaign Committee chief Jyotiraditya Scindia and former chief minister Digvijay Singh were also present at the press meet.

    Taking potshots at the BJP, Mr Scindia said the Congress’s manifesto was not like the saffron outfit’s “jumla patra” (document of rhetoric) as the party would honour every promise made in the document.

    “We are bringing a vachan patra and not a jumla patra like the BJP. Our document of promises has something for everybody,” the former Union minister said.


    The 230-member Madhya Pradesh Assembly will go to the polls on November 28 and the results will be announced on December 11.


    Defaulted on home loan EMIs: Know your rights in case debt collectors knock at your door

    In 2016, Jayesh Mathur residing in Delhi purchased a home by taking a loan from PSU bank. At that time he had over-stretched his financial capability while buying this property. Nowadays, with ease of getting loans from banks, housing finance companies and NBFCs there are several millennial like Mathur who opt to purchase a home at start of their professional life. They enjoy to the fullest while paying partly through EMIs. However, with other prior financial commitments towards his family and rising children education expenses he started defaulting on home loan EMIs from following year. This led to face-off with debt collectors (recovery agents) from bank at his door step very often.

    Impact of defaulting on home loan EMIs

    Amit Wadhwani, Co-founder, Sai Estate Consultants said, “If the default continues for six months, banks give the borrower a two month grace period to regularise the repayment. Failure to do so will result in banks declaring the loan a non-performing asset (NPA).” Bank can auction the property/collateral to recover its debt and reduce their NPAs.

    Banks are primarily interested in getting their money back than in taking legal recourse. A legal recourse involves auctioning a house which is time consuming. Hence, banks follow up the matter with the borrower through debt collectors for at least six months before taking any legal action on property.

    Rights of borrowers while face-off with debt collectors on default of home loan EMIs

    i. Right to check the identity

    With increasing number of frauds roaming around in the city, borrowers are provided with the right to ask and check the ID cards of recovery agents as issued by banks and NBFCs before starting with the conversation about pending dues.

    ii. Right to privacy

    As per this right, agents can’t share or discuss the issue of your impending debts with other people. Rachit Chawla, Founder and CEO, Finway said, “If you found them doing so, you can file a complaint against him with banks and NBFCs and can even take a legal action.”

    iii. Right to humane treatment

    Chawla explained, “According to this, recovery agents need to be decent and civilized in their approach. Respecting your personal space, the recovery agents are clearly directed to contact the borrowers between 7 am and 7 pm.” On violation, borrowers are free to take legal action supported with all the valid proofs.

    Things that should be legally pursued by the borrower on default of home loan EMIs

    i. Approach your lending bank on default of loan

    Inform your bank about the current financial situation, this will act as a proof for the recovery agent to know the borrower well.

    ii. Apply for restructuring of home loan

    The borrower has an option to restructure his loan when there is a financial crunch. Wadhwani said, “In many cases the banks offer the borrower a flexible and easy option to repay the home loan while restructuring.” After checking the restructured proposal from bank and understanding details the borrower can then decide to accept it and continue to repay outstanding loan instead of defaulting.

    iii. One time settlement

    The borrower can be in a dreadful situation when he cannot pay any amount to the bank or NBFC. Wadhwani suggested, “You can settle the loan via a small payment where up to 90% of the principal and 100% interest amount is waived off.” However, in this case if the borrower has accepted to do so, the credit report will reflect the fact that you could not repay the loan amount completely and it was settled with one time payment. This will henceforth, affect your credit score while borrowing.


    EMERGING MARKETS-Emerging currencies slide on higher oil, strong dollar

    Image result for EMERGING,MARKETS-Emerging,currencies,slide,on,higher,oil,,strong,dollar

    Nov 12 (Reuters) – Emerging market stocks and currencies fell on Monday, pressured by a strong dollar and rising oil prices with net crude importers bearing the brunt.

    The MSCI index of emerging market currencies fell 0.3 percent as the dollar built on last week’s gains and hit a 16-month high, while oil prices rose by more than one percent on Monday as top exporter Saudi Arabia announced a December supply cut.

    This hit currencies of net oil importers such as the Indian rupee and the Turkish lira.

    “The recent rebound in oil prices is a reminder that it will become increasingly difficult for twin deficit currencies – rupee, rupiah and peso – to smooth currency volatility via rate hikes without hurting the economy, and through interventions without depleting reserves,” said Stephen Innes, head of Asia Pacific trading at Oanda.

    But, the bounce in oil prices lifted the currency and stocks in Russia – a net exporter of oil – with the rouble up 0.6 percent and the Moscow stock exchange index climbed by 0.5 percent aided also by a delay to the imposition of U.S. sanction on aluminium giant Rusal.

    “Oil is improving sentiment for the rouble today but there is also another driver for the rouble – Rusal sanctions. Some deadlines were extended by U.S. authorities. And we are not seeing any other negative news related to sanctions,” said Vladimir Miklashevsky, a senior economist at Danske Bank.

    The Sri Lankan rupee weakened after dollar-bonds fell as President Maithripala Sirisena dissolved parliament on Friday night and called an election for Jan. 5 in a move that will likely deepen the country’s political crisis.

    The Chinese yuan extended losses, after its worst week since July as soft economic data last week showed cooling of the economy, while South Africa’s rand was weaker by 0.3 percent as yield-seeking investors continued to back the dollar.

    MSCI’s benchmark emerging equity index was down 0.6 percent, trading at its lowest level this month as exchanges in South Korea, India and South Africa declined.

    China mainland stocks , however, shined through, snapping a one-week losing streak boosted by a series of stimulus measures, notably the securities regulator making it easier for companies to buy back shares, possible implementation of large scale tax cuts.

    Focus also remains on U.S. Vice-President Mike Pence’s attendance at the Association of South East Asian Nations summit this week, which could see him provide clarity on U.S. intentions for improving trade relations with China.

    “Trade is always going to be a concern in the current environment for Asia, as about one third of all global trade goes through the region, and it is slowing, which means slower incomes growth across the region,” said Robert Carnell, chief economist and head of research at ING Asia.

    In Eastern Europe, Romania’s leu touched its lowest since May last year as consumer price inflation slowed in October.