Saturday, June 13, 2009

India rejects the Communist Party

India as we know has returned the Congress Party and at the same time lessened its dependence on minority parties. Its success also means the Government can go ahead with its economic reforms. And also now the Indian-U.S. nuclear agreement, a cornerstone of closer ties with Washington can go ahead. This is assured with the demise of the Indian Communist Party which is now out the back door of Indian politics.
Under the agreement passed by the U.S. Congress last year the USA agreed to share civilian nuclear technology, ending a 30-year ban on sales of nuclear fuel and technology that was imposed after India tested and developed a nuclear bomb.
Deeplode thinks that the election results may see change in Obama' s Asian policy towards India just to remind China that it does not yet hold a full hand. And certainly the crushing blow to the Communist Party could mean it may never recover its voter base.
Manmohan Singh will remain as leader but Deeplode sees Rahul Gandhi as simply waiting.

But what this all means is that the capital inflow into India is not captive to minority the Communist Party....Major infra structure projects will now go ahead. Australia will benefit.

Sunday, June 7, 2009


Deeplode came across some figures recently which point out the direction of the flow of global finance. And India looks to be on the brink of a huge growth explosion.

Global money appears to be entering India at the rate of $1 billion a week.
In April, foreign institutions poured US$1.3 billion into Indian equities.Then in early May before the Indian elections another US$1.87 billion was invested from outside India. The total for May was US$4.14 billion

And this is looks to be a world wide trend.
Emerging markets are on the receiving end of large inflows of capital.
Since April, $20 billion has flooded into all emerging markets. The Sensex is up 50%, Russia is up 63%, Brazil 60% China 57%, and Argentina 45%.The capital movement is not India-specific but is representative of a movement into emerging markets.
It looks as though BRICS is still alive as a market force but Deeplode's money is on India and China to mostly benefit the ASX.

(News wires helped the information gathering)

Saturday, June 6, 2009

Gandel Mining the Second Generation money machine

John Gandel made his money in property development. His son Ian looks as if he is on the way to establishing a major mining investment house in Collins Street...Gandel Mining.. His holdings through Abbotsleigh..a private company.. include controlling interests in AGS, ALK, BCI and others.
He is about to take control of GIP...tantalum in Egypt...but under the radar through GIP an interest in SRZ (Stellar Resources) with unknown reserves of tin and other base metals in Tasmania..Deeplode ponders his interest in GIP..with all its risks.. but has some faith in John Dunlop who, if genetics are worth anything, should be followed.