Daily Current Affairs 3rd June, 2017

Daily Current Affairs 3rd June, 2017


US exit from Paris climate deal

  • The United States will be withdrawing from the Paris climate agreement, President Donald Trump announced recently. He said this move was aimed at protecting American and its citizens. The US is the second-largest emitter of greenhouse gases in the world, right behind China.
  • The withdrawal process takes four years. But when it’s complete, the United States will join a lonely club. Just two other countries — Syria and Nicaragua — have rejected the nonbinding agreement.

Indian Origin Leo Varadkar to be the Next PM of Ireland

  • Ireland’s Fine Gael party has elected a 38 year old Leo Varadkar as prime minister of Ireland. He will succeed Enda Kenny.
  • Varadkar will be confirmed as prime minister when Irish parliament next sits on June 13. Leo Varadkar has earned the distinction of becoming Ireland’s first gay prime minister. His election is a striking sign of the Ireland’s rapid social change which was once a staunchly Catholic country.
  • He will also be the youngest person ever and the first from an ethnic minority background to become the Prime Minister of Ireland.
  • Mr Varadkar defaeted his rival Simon Coveney by garnering 60{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} of the votes to lead Fine Gael.

Prime Minister Aleksandar Vucic sworn in as new President of Serbia

  • Aleksandar Vucic has been sworn in as Serbia’s new president, promising to work for peace and stability in the war-weary Balkans while strengthening the country’s armed forces.
  • Vucic formally stepped down from his prime minister’s post and took over his new role after his landslide win in April’s election.


India has 31{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} of world’s poor kids: report

  • About 31{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} of the world’s “multidimensionally poor” children live in India, according to a new report by the Oxford Poverty and Human Development Initiative (OPHI). OPHI is an economic research centre at the Oxford University and the study is based on a survey conducted among 103 countries.

What makes a child multidimensionally poor?

  • A “multidimensionally poor” child is one who lacks at least one-third of ten indicators, grouped into three dimensions of poverty: health, education and standard of living. The health dimension comprises indicators such as nutrition, child mortality, and education. Under standard of living are indicators such as access to cooking fuel, improved sanitation, safe drinking water, electricity, flooring, and asset ownership.

Performance of India:

  • In terms of countries, fully 31{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} of the 689 million poor children live in India, followed by Nigeria (8{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769}), Ethiopia (7{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769}) and Pakistan (6{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769}).
  • In terms of the number of multidimensionally poor children as a proportion of the total population, India stood 37th among 103 countries. Out of India’s 217 million (21.7 crore) children, 49.9{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} were multidimensionally poor.
  • In terms of absolute numbers, India accounts for both the highest and a staggering number of multi-dimensionally poor people. More than 528 million (52.8 crore) Indians are poor, which is more people than all the poor people living in Sub-Saharan Africa combined.


State Bank may opt for QIP

  • The State Bank of India is planning to complete a planned share sale by year-end, probably through a qualified institutional placement (QIP).

What is a QIP?

  • A QIP is a capital raising tool wherein a listed company can issue equity shares, fully and partly convertible debentures, or any security (other than warrants) that is convertible to equity shares. Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company can issue shares or convertible securities to a select group of investors. But unlike in an IPO or an FPO (further public offer), only institutions or qualified institutional buyers (QIBs) can participate in a QIP issuance. QIBs include mutual funds, domestic financial institutions such as banks and insurance companies, venture capital funds, foreign institutional investors, and others.
  • There are a few rules to follow. The market regulator has stated that there should be at least two QIBs if the issue size is less than Rs.250 crore, and at least five investors if the size is more than Rs.250 crore. A single investor cannot be allotted more than 50{be19e8fcc7081f751eba9e03bd22e904e5cf3e86733381e655a03b1ab7839769} of the issue.

How is the price decided?

  • The QIP will be priced not less than the average of the weekly high and low of the closing prices of the equity shares during the two weeks preceding the “relevant” date. The “relevant” date will be the opening date of the issue, as decided by the company’s board. In a rising market, such as now, the QIP price is set at an attractive rate.
  • For the issuing company, QIPs are less cumbersome than IPOs and FPOs. It doesn’t have to file a pre-issue document with the capital markets regulator, and only a placement document with the stock exchanges, which only has details of the issue.
  • QIP is also a less expensive mode of raising capital than, say, an IPO, FPO or rights issue.
  • For the QIBs, unlike in an IPO where an anchor investor has to stay invested for a month, there are no such restrictions with QIPs.

RBI initiates ‘prompt corrective action’ for Dena Bank

  • The Reserve Bank of India has initiated prompt corrective action (PCA) for Dena Bank in view of high net non-performing assets and negative return on assets. Last month (May 2017), the central bank had initiated PCA for IDBI Bank and UCO Bank in view of high NNPAs and negative ROA.
  • Prompt Corrective Action is the action which will not have any material impact on the performance of the bank infact it will contribute to improve the internal controls of the bank and improvement in its activities.

Samsung Signs MoU with Ministry of Micro, Small and Medium Enterprises (MSME) to Set Up 2 more Tech Schools

  • Samsung India has signed a memorandum of understanding (MoU) with the Ministry of Micro, Small and Medium Enterprises (MSME) for setting up two new Samsung Technical Schools in Bengaluru and Jamshedpur as well as to renew the partnership for 10 existing schools being run across the country.

SEBI Constitutes Committee on Corporate Governance

  • Market Regulator SEBI has formed a Committee on Corporate Governance under the chairmanship of Uday Kotak, the executive vice chairman and managing director of Kotak Mahindra Bank.
  • The move is aimed at improving the standards of corporate governance of listed companies.


SMARTGRAM Initiative

  • The President of India, Shri Pranab Mukherjee recently laid the foundation stone of a Driver’s Training Institute and a Secondary School under the SMARTGRAM Initiative at village Dhaula, Gurugram (Haryana).
  • Under the project the selected villages will see new ventures in agriculture, skill development, energy, education, heath, employment generation, and entrepreneurship.
  • The model is based on the convergence of resources and effort by the central government, state government, district administration, panchayati raj institutions, public sector, private sector and enlightened villagers to enhance the environment, connectivity and wellbeing of each village.
  • A ‘smart gram’, according to the project, would have the required basic physical and social infrastructure with a layer of smart information and communication embedded to improve governance and delivery of services, livelihood and economic opportunities.


Prithvi-II missile successfully test-fired

  • Prithvi-II is indigenously developed and is nuclear-capable surface-to-surface
  • The missile is capable of carrying warheads weighing 500 kg to 1,000 kg.
  • With a strike range of 350 km, Prithvi-II is powered by twin-engines which use liquid propulsion.
  • It also uses advanced inertial guidance system with manoeuvring trajectory to hit its target.
  • Notably, Prithvi is India’s first indigenously-built ballistic missile. It is one of the five missiles being developed under the country’s Integrated Guided Missile Development Programme.


Odisha becomes the First state to get Coastal Alarm System

  • Odisha is the first State in India to have developed an automatic public address system that can be activated along its entire coast.
  • The State government is all set to commission the ambitious Early Warning Dissemination System (EWDS) that would enable loud sirens go off simultaneously from towers at 122 locations by July 2017.
  • Odisha can now warn the vast population residing along its 480 km-long coast by pressing a single button from a control room in the State capital in the event of the occurrence of natural disasters like a tsunami or a cyclone.

NASA is all Set to Launch First Ever Mission to Study Neutron Stars

  • NASA is all set to launch the world’s first ever mission devoted for studying neutron stars. NASA will  launch the Neutron Star Interior Composition Explorer, or NICER, aboard a Falcon 9 rocket.
  • The NICER will be installed aboard the International Space Station (ISS) as an external attached payload. About a week after its installation, the NICER will begin observing neutron stars. The mission will focus especially on Pulsars.
  • During the mission, NASA will also carry out the world’s first demonstration of X-ray navigation in space.







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