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Dead cat bounce!

You have very likely heard the term “dead cat bounce” used to describe the markets as of late. In finance, a dead cat bounce is a small, short-lived recovery in the price of a declining security, such as a stock. When a financial market suffers a consistent fall traders attempt to detect when prices are at their lowest and then buy stocks hoping for a bargain. If they buy too soon prices may rise temporarily but then decline again. This is called the dead cat bounce. The idea being that even a dead cat will bounce if you drop it from a great height. This phrase, which originated on Wall Street, is also popularly applied to any case where a subject experiences a brief resurgence during or following a severe decline. If a stock trades from $20 to $2 over the course of a few days, then there is a quick move up to $3 and then again it falls below $2. This is a dead cat bounce. The bounce in the stock may be due to short-sellers covering, possibly existing shareholders in the company doubling-down on their positions, and potential bargain-hunters swooping in to buy shares, but there might not be any real fundamental improvements in the underlying company. The current recovery in oil prices could prove to be nothing more than a short-lived dead cat bounce, analysts have warned, pouring cold water on hopes of a sustained recovery […]

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AIIB opens for business

Chinese President Xi Jinping launched a new multilateral development bank — Asian Infrastructure Investment Bank (AIIB) — seen as a rival to the US-led World Bank yesterday. President Xi Jinping and Premier Li Keqiang announced the AIIB initiative during their respective visits to Southeast Asian countries in October 2013. The Bank was envisaged to promote inter-connectivity and economic integration in the region and cooperate with existing multilateral development banks. In October, 2014, 22 Asian countries gathered in Beijing to sign Memorandum of Understanding (MOU) to establish the AIIB. Since then, a host of European nations, including several American allies, including the U.K., France, Germany and Italy have joined the bank. China, India and Russia are the three largest shareholders of AIIB, holding a 30.34 percent, 8.52 percent and 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent, respectively. Membership in AIIB is open to members of the International Bank for Reconstruction and Development (IBRD) or the Asian Development Bank (ADB). The Board of Governors of the Asian Infrastructure Investment Bank (AIIB) convened its inaugural meeting yesterday, declaring the Bank open for business and electing Mr. Jin Liqun as President for a five-year term. AIIB is expected to complement and cooperate with the existing multilateral development banks to foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors, including energy and power, transportation […]

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IMF approves an SMP for Iraq

The Managing Director of the International Monetary Fund (IMF) approved a Staff-Monitored Program (SMP) for Iraq covering the period of November 2015-December 2016, on which the Iraqi government authorities and IMF staff had reached ad-referendum agreement in November 2015. An SMP is an informal agreement between country authorities and IMF staff to monitor the implementation of the country’s economic programme. SMPs do not entail financial assistance or endorsement by the IMF Executive Board. Iraq is facing a double shock arising from ISIS attacks and the sharp drop in global oil prices. The conflict is hurting the non-oil economy through destruction of infrastructure and assets, disruptions in trade, and deterioration of investor confidence. The impact of the oil price decline — already felt in 2014 — intensified in 2015, affecting the budget, the external sector, and medium-term growth potential. The Iraqi government is responding to the crisis with a mix of fiscal adjustment and financing. Iraq plans to finance its balance of payments deficit by drawing its foreign exchange reserves down to US$43 billion in 2016 from US$59 billion at the end of October. The deficit is expected to reach US$14 billion in 2015 before narrowing to US$11 billion in 2016. To help address the present and urgent balance of payments and budget needs triggered by the ISIS attacks and the collapse in oil prices, the Iraqi government requested an SMP to establish a track record of policy credibility to pave the […]

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Pravasi Bharatiya Divas in Baghdad

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Pravasi Bharatiya Divas — Non-Resident Indian Day — is celebrated in India on January 9 each year to mark the contribution of the overseas Indian community to the development of India. The day commemorates the return of Mahatma Gandhi from South Africa in Bombay on January 9, 1915. The occasion is marked by special programmes to recognise the contributions of non-resident […]

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Dashavatara and Darwinian evolution

Things were going exactly as Srinivasan had feared, his Mother would come in from India and crush his American way of life under her strong South Indian influence. For a genetic scientist like Vasu, as Srinivasan was called by his friends, the only kind of order was disorder. So consumed he was by his research that the world and it’s affairs mattered little to him. When his last girlfriend walked out on him, “Find a girl on planet Srinivasan,” she had screamed as she stomped out. Now Vasu’s Mother had taken over the administration of the planet. It irritated him, this milk at night and chywanprash every morning. “Have you been wearing the same pair of Jeans for the past three days?” Mother was beginning her morning interrogation. Vasu stared at the hot idlis in front of him, the chywanprash to follow and the wardrobe interrogation that had begun. Something snapped in his mind. “Mom I love you and I love that you come all the way from India to take care of me but please don’t fuss over me! It irritates me!  And then I cannot work!” His Mother did not really care if Vasu was upset, “The idlis are getting cold,” was her matter of fact response. “You don’t really care, do you Mom?” “I care about you Vasu. The work you do is alright. If you don’t do it, someone else will do it.” “Mom, I am […]

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2015 in review

The WordPress.com stats helper monkeys prepared a 2015 annual report for this blog — INDROSPHERE. Here’s an excerpt: The concert hall at the Sydney Opera House holds 2,700 people. This blog — Indrosphere — was viewed about 32,000 times in 2015. If it were a concert at Sydney Opera House, it would take about 12 sold-out performances for that many people to see it. Click here to see the complete report.

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First Miss Iraq after 1972

Shaymaa Abdelrahman, a 20-year-old from Kirkuk, became the first person to claim the title of Miss Iraq since the event was last held in 1972. The first and last time Iraq participated in a major international beauty pageant was in 1972 when Wijdan Burhan al-Deen represented the country at the Miss Universe contest. The pageant was held in a hotel in […]

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Met Subhro after 35 years!

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Subhro Roy and I were together in school in New Delhi. We passed out from the school in 1980. I went on to Delhi University for my graduation in Mathematic while Subhro went to the then Soviet Union for studying engineering. A couple of years ago, we got connected through Facebook and were in occasional touch through email or messenger service. […]

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