Real Estate Investment Trusts (REIT’s) & InvITs (Infrastructure Investment Trusts) will be introduced and tax benefits will be given. Positive in ST to MT for DLF, L&T, IDFC, Phoeninx Mills etc
The finance ministry in its maiden budget introduced REIT’s and InvITs two instruments to attract long term finance from fore ign and domestic sources including the NRIs. InvITs is an modified REITS type structure for infrastructure projects. To boost infrastructure lending banks will be allowed to raise long-term funds with no CRR/SLR obligations. We believe this to be huge positive for real estate and infrastructure companies as they will attract long term funds at lower rates.
World Economic News
U.S. Weekly Jobless Claims Unexpectedly Dip To 304,000
In another upbeat sign for the labor market, an unexpected drop in first-time claims for U.S. unemployment benefits in the week ended July 5th. The initial jobless claims fell to 304,000, a decrease of 11,000 from the previous week’s unrevised level of 315,000. The modest decrease came as a surprise to economists, who had expected claims to come in unchanged compared to the previous week. With the unexpected decrease, jobless claims pulled back near the seven-year low of 298,000 set in the week ended May 10th.
Bank Of England Keeps Rates On Hold
The Bank of England kept its monetary policy unchanged amid heightened uncertainty over the timing of the first rate hike as members signaled a mixed picture. The Monetary Policy Committee, governed by Mark Carney, voted to leave the key bank rate unchanged at a record low 0.50%. The rate has been at the current 0.50% since March 2009. The panel also decided to maintain the asset purchase programme at GBP 375 billion. The previous change in asset purchases was in July 2012, when it was raised by GBP 50 bill ion.