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            World fourth biggest bank from India: HDFC Ltd is merged with HDFC Bank to become world’s fourth biggest bank in terms of market capitalisation. It is behind JP Morgan Chase,ICBC Bank and Bank of America. It is the second largest bank.  in India and first one is State Bank of India. It is next to SBI in loan book.ICICI is the third biggest bank. Because of this merger balance sheet risk is expected to come down.Because of this merger large ticket loans can be given including infrastructure financing.
            HDFC Ltd ,HDFC Bank merger and IDFC First Bank ,IDFC merger : What is expected? 
Because of this merger will improve their margin and bring more foreign investments. It will help them in fund raising based on the strength of their balance sheet and they are too big to fail. Their expenditure will come down. Improved fundamentals will attract invesors in shares. This type of merger is new to India but it has happened in Japan. These merger will provide ease of doing business. Bigger size banks will dictate terms on global level.
             Trade war between US and China: The trade war between US and China escalates. with Chip war.China imposed export control on two critical minerals essential for chip making. They are gallium and germanium.Its seen as Beijing reply to US tightening of its AI chip ban. Earlier US banned Chinese companies from buying specialised chips and chip making equipments without any license. Suppliers from Neatherland and Japan also joined in this curb.
             America’s biggest chip maker Micron came undercyber security brobe and got banned selling to- companies working on Chinese projects.US is dependenton Gallium and Germanium and 50% of it is imported in 2021 from China.This is just a message China wants to give  to US,Neatherland and Japan. But China may be the leading producer but US has alternate supplierd. Belgium,Germany and United Kingdom are other suppliers.

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