Friday 23/01/2015

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Barack Obama will do something in India on Monday that an American president almost never does in public.

He’ll sit in one place, in a foreign country, for hours.

Obama will be the official “chief guest” at India’s Republic Day parade. The first U.S. president invited to attend, his presence will signal an increasingly close relationship between partners with a sometimes prickly history.

The unusual appearance -- also making him the only two-time U.S. presidential visitor to India -- caps a remarkable turnaround in bilateral ties since the December 2013 arrest of an Indian diplomat in New York.

For Obama, who’s scheduled to begin a three-day visit here on Jan. 25, strong ties with India offer potential payoffs on multiple issues. Modi, an economic reformer elected in a May 2014 landslide, wants American cash, technology and expertise along with a potential hedge against China.

For the U.S., any concrete results the visit produces may be less important than the long-term benefits of aligning with a country poised to be a future power. A thriving Asian democracy would be a counterpoint to the Chinese development model in a region where the U.S. and China are competing for influence.

While in Delhi, Obama will give a speech, attend a chief executives’ summit, and join Modi for a question-and-answer session on state-run radio. The president and first lady Michelle Obama will also tour the Taj Mahal in Agra, the white marble mausoleum that is India’s best-known tourist attraction.

ECB President Mario Draghi said the central bank is to launch a private and government quantitative easing (QE) program, buying 60 billion euros of bonds a month from March -- more than previously expected.

The plan will run until September 2016, Draghi said at press conference at the ECB headquarters in Frankfurt and bonds issued by European institutions will be subject to risk-sharing, he said.

The euro plummeted plummeted to a fresh 11-year low against the dollar of $1.14410 in the hours after the plans were unveiled. Government debt markets rallied after Draghi's comments, sending borrowing costs in a number of euro zone countries -- including Germany, Italy, Spain, Ireland and Portugal -- to a record low. German 10-year government bond yields hit record lows of 0.377 percent Thursday afternoon.

 

 

 

 

 

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