Sunder’s List: What Will The Fed Say?

Roundup: S&P -0.31%, Dow -0.06%, Nasdaq -0.14%, Gold $1234.30, London -0.55%, Germany -0.86%, France -1.24%. At pixel: Nikkei +1.61%, Hang Seng +0.43%

US Federal Open Market Committee is expected to issue a statement today. While the Fed isn’t expected to start winding down its purchases of $85 billion a month in bonds until March, recent stronger-than-expected economic data increased the odds that tapering could occur sooner. (Yahoo)

Raghuram Rajan wants private equity groups such as KKR and Blackstone to take over distressed companies. The “strong” companies that they have taken over have turned distressed, fat chance that they will be interested in already distressed cos. (FT)

RBI is worried about the growing size of bad loans in India’s Rs.81 trillion banking sector. About Rs.2 trillion of these loans are bad and at least Rs.4 trillion are being restructured. Together, that constitutes about 10% of all bank loans. (LiveMint) [stockquote]BANKBEES[/stockquote]

Meanwhile, the amount of stressed debt may go up by more than 50% for BSE 500 companies if the RBI decides to raise the policy rate cumulatively by more than 50 basis points till March 2014. This could unleash a second wave of restructuring and non-performing assets. (ET)

GlaxoSmithKline (GSK) intends to end two common industry practices that appear to cause conflicts of interest: paying doctors to promote the company’s drugs and linking the compensation of sales representatives to the number of prescriptions that physicians write. GSK will also stop paying healthcare professionals to attend medical conferences. (SA) [stockquote]GLAXO[/stockquote]

Suzuki will shift its entire export operations for the Middle East, Africa, Latin America and South-East Asia to India by the end of the next fiscal year. (LiveMint) [stockquote]MARUTI[/stockquote]

Good luck!

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