Current Affairs for BANK, IBPS Exams 25 June 2016

Current Affairs for BANK, IBPS Exams

25 June 2016

:: National ::

Brexit is complete

The United Kingdom opted for a momentous change of course by voting to leave the European Union in a closely-fought referendum held. The ‘Leave’ side won decisively with 52 per cent of the vote in the high-turnout vote, which overturned opinion polls that predicted a slender margin for ‘Remain’.
This is the second referendum on Britain’s relationship with the European project.
In 1975, in a referendum on whether the U.K. should stay or leave the European Community (Common Market) Area, the country voted for staying in with a resounding 67.2 per cent vote.
Prime Minister David Cameron, the architect of the referendum, announced that as a measure of respect for the “will of the people” he would be stepping down as Prime Minister in October.
The referendum saw a turnout of 72 per cent, the highest in any election since 1992, ‘Leave’ won 17,410,742 votes and ‘Remain’ 16,141,241, with all but the regions of London, Scotland and Northern Ireland voting to leave.
The markets have predictably reacted sharply to the referendum result with the pound falling to its lowest since 1985. Other major currencies have also shown volatility especially the Euro that has seen its worst fall against the dollar.

Govt gives confidence after Brexit

India is well-prepared to deal with the consequences of Britain’s decision to exit the European Union, Finance Minister Arun Jaitley reassured investors after local stock indices slumped in the aftermath of the referendum.
The BSE Sensex fell as much as 1,091 points, or 4 per cent, before recovering to close 2.2 per cent lower.
Mr. Jaitley said. “Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position.”
“This verdict will, obviously, further contribute to such volatility not least because its full implications for the U.K., Europe and the rest of the world are still uncertain,” Mr. Jaitley said.
In a separate conference call with the media from Switzerland, RBI Governor Raghuram Rajan said the country’s fundamentals were healthy and money would return after the initial bout of volatility.

India did'nt get entry into NSG

The annual plenary session of the Nuclear Suppliers Group ended without taking any decision on India’s application for membership.
While the 48-member grouping held two lengthy closed-door sessions on the subject of new memberships, several countries expressed concerns over the entry of members who are not signatories to the Non-Proliferation Treaty (NPT), that India has refused to sign.
Eventually, though, say diplomats, between China’s attempts to block any discussion, countries like Brazil and Turkey calling for a “criteria-based” process to be put in place first, and others like Austria, Ireland, New Zealand and Switzerland raising the NPT question, India’s chances were scuttled.
Government officials held that at least 32 countries had made positive interventions on India’s behalf, but the NSG’s actions are governed by consensus and not by majority.
In a reference to the discussions, the NSG joint statement said they spoke of “Technical, Legal and Political Aspects of the Participation of non-NPT States in the NSG” and decided to continue its discussion”.
One of India’s strongest backers during the session, Japan, however, said that while no agreement had been reached during the current session, their efforts will continue.

:: International ::

EU wants transition to Britain exit should be smooth

A stunned European Union (EU) urged Britain to leave as “soon as possible” amid fears the devastating blow to European unity could spark a chain reaction of further referendums.
German Chancellor Angela Merkel and French President Francois Hollande led calls for the European Union to reform in order to survive a traumatic divorce with Britain.
In a sign that the bloc wants to move on swiftly, EU chiefs told Britain in a strongly-worded joint statement to “give effect to this decision of the British people as soon as possible, however painful that process may be”.
The uncompromising stance came after Prime Minister David Cameron said he would resign and leave the negotiations on Britain’s departure from the 28-nation club to a successor who will be named by October.
Worried European leaders will hold a series of crisis talks in coming days, with Ms. Merkel saying she would host the leaders of France and Italy along with EU President Donald Tusk in Berlin to try to chart a reform plan.
Mr. Hollande said the Brexit vote was a “grave test for Europe”, adding that the bloc “must show solidity and strength in its response to the economic and financial risks”.
EU chief and former Polish premier Tusk — who had earlier warned that a ‘Leave’ vote could “end Western political civilisation” — put on a brave face, saying that “what does not kill you makes you stronger”.
The European Parliament will, meanwhile, pass a motion at an emergency meeting urging Mr. Cameron to trigger the exit process by invoking what is known as Article 50.
The biggest fear was of contagion, with immediate calls by far-right leaders in France and the Netherlands for their countries to hold their own votes on EU membership.
French far-right leader Marine Le Pen said the British result was a “victory for freedom”, while Dutch anti-Islam MP Geert Wilders said “the Dutch people deserve a referendum as well”.

Brexit has put the question of Scottish independence back into fore

Britain’s vote to leave the European Union instantly put the question of Scottish independence back into play, with Scotland having voted heavily for the U.K. to remain in the bloc.
Scottish First Minister Nicola Sturgeon said the result put an independence referendum “on the table”, adding that it was “highly likely” within two years.
Wales and England — except London — voted for Britain to leave the EU, while Northern Ireland voted for it to stay in.
The vote also raises questions about the future for Northern Ireland, which shares the U.K.’s only land border, with the Irish Republic.
Northern Ireland voted 55.8 percent in favour of staying in the EU. Irish Prime Minister Enda Kenny tried to soothe concerns.

:: Science and Technology ::

NASA and ISRO are developing satellite to observe ecosystem disturbances

NASA and ISRO are working together to develop a synthetic aperture radar satellite to observe and measure ecosystem disturbances, ice-sheet collapses and natural hazards.
The data gathered from this mission will help build climate resilience and potentially save lives, said U.S. Ambassador to India Richard Rahul Verma.
The Indian Institute of Tropical Meteorology, Pune, is also working with the U.S. National Oceanographic and Atmospheric Administration (NOAA) to develop high resolution seasonal and long-term climate forecasts to prepare for the monsoons.

Scientists have developed a new stem cell-containing bio-ink

Scientists have developed a new stem cell-containing bio-ink that allows 3D printing of complex living tissues that may be used for surgical implants.
The bio-ink contains two different polymer components: a natural polymer extracted from seaweed, and a sacrificial synthetic polymer used in the medical industry, and both had a role to play.
The synthetic polymer causes the bio-ink to change from liquid to solid when the temperature is raised, and the seaweed polymer provides structural support when the cell nutrients are introduced.
The special bio-ink formulation was extruded from a retrofitted benchtop 3D printer, as a liquid that transformed to a gel at 37 degrees Celsius, which allowed construction of complex living 3D architectures.
The team was able to differentiate the stem cells into osteoblasts - a cell that secretes the substance of bone - and chondrocytes, cells that have secreted the matrix of cartilage and become embedded in it, to engineer 3D printed tissue structures over five weeks, including a full-size tracheal cartilage ring.

:: Business and Economy ::

Brexit will see renegotiation in BTIA

Britain’s exit from the European Union will not have any immediate impact on India’s trade and investment with the U.K. and the EU.
However the proposed India-EU Free Trade Agreement (FTA) will see some “modifications and moderations,” Commerce Secretary said.
The Centre does not see any immediate impact of Brexit on ties with the U.K. and the EU as trade and investment with the two are currently happening not on the basis of an FTA but on a bilateral basis.
The implications of Brexit will happen only after 2018 when the terms and conditions regarding Britain’s exit from the EU are likely to be finalised.
India was not in favour of restarting the FTA talks from scratch, owing to the impending separation of the U.K. and the EU.
India will undertake a study of those Britain-related tariff lines that are part of India-EU FTA talks.
The India-EU FTA negotiations have been deadlocked since 2013 after 16 rounds of talks due to several differences. Both sides are yet to fix dates to resume negotiations.
Commerce Ministersaid that there will be some impact on trade in the short-term due to the currency volatility, adding that the government was closely monitoring the situation to assess the short, medium and long-term impact on India’s trade and investment with the U.K. and the EU.
Currency volatility may put pressure on India’s exports as both British Pound and Euro will depreciate giving greater competitiveness to their products particularly in third countries.
With currency depreciation, the domestic manufacturer in EU and Britain may get some competitiveness as imports becoming costlier having its effect on India’s and other countries exports.

Share market plunge after Brexit

World stocks saw more than $2 trillion wiped off their value as Britain's vote to leave the European Union triggered 5-10 per cent falls across Europe's biggest bourses and a record plunge for sterling.
Such a body blow to global confidence could prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks.
Almost $1 trillion had been lost from European share prices ahead of what is expected to be a nearly 4 per cent fall on Wall Street when it opens later.
London's FTSE dropped almost 5 per cent while Frankfurt’s DAX and the CAC 40 index in Paris fell 6 to 8 per cent. The Italian FTSE MIB, Spanish IBEX and European bank stocks all headed for their sharpest one-day drops ever.
Britain's big banks took a $100 billion battering, with Lloyds, Barclays and RBS plunging as much as 30 per cent at one point.
The British pound dived by 18 U.S. cents at one point, easily the biggest fall in living memory, to hit its lowest since 1985. The euro in turn slid 3 per cent to $1.1050 as investors feared for its very future.
That message was being broadcast loud and clear. The Bank of England, European Central Bank and the People's Bank of China all said they were ready to provide liquidity if needed to ensure global market stability.

Indian economy could suffer a significant knock in the short term after Brexit

Indian economy could suffer a significant knock on effect in the short term with the United Kingdom voting for exiting the European Union (EU), according to market analysts and rating agencies.
The company predicts that Brexit will mean India’s GDP will now grow at 7.3 per cent this year, down from the 7.6 per cent predicted earlier.
If at the end of that process, the U.K. exits the single market, EU countries will start imposing tariffs on British products, making it far less attractive for Indian businesses – like Tata Motors – to have a manufacturing base in the U.K.
However, despite U.K. Prime Minister David Cameron announcing his resignation, the legal road ahead to cement the exit from the EU is a long one with provisions for the process to be extended.
Under Article 50 of the Lisbon Treaty, the formal negotiation process for withdrawal should take place within a two-year period.
However, this process will only start once the U.K. formally notifies the European Commission of its desire to leave and the two-year period can be extended if all member states agree.
The subsequent levy of tariffs by the EU on British products will make doing business in the U.K. less attractive for foreign companies, including Indian organisations.
The 30-stock BSE Sensex tumbled by more than 1,000 points. It subsequently recovered and pared the losses to a little over 600 points. Oil prices also fell though experts believe this will be short-lived.