Today’s agenda:
Oil slipped from a seven-year high. Futures in New York were trading below $83 a barrel after climbing more than 3% in the past four sessions. China’s new home prices stalled amid the government’s continued crackdown on speculative investment.
Consumer goods makers Procter & Gamble Co. and Danone SA’s earnings results show higher costs and supply chain disruption, indicating greater margin pressure for global firms and higher prices for buyers.
In India, the government has set up an expert group to develop a proposal for a comprehensive tax policy for all tobacco products. Shares of India’s top tobacco product maker ITC fell 6.23% in yesterday’s trading session.
Domestic coal position in thermal projects improves as coal stock in less than 4 days rose to 58 on Monday from 69 a week ago. – john xavier
Our live blog will track news on the world economy, corporations and markets
3:16 pm
China raises $4 billion by issuing US dollar bonds
After attracting strong demand from offshore investors despite ongoing problems in the property market and crackdown on several industries, China has raised $4 billion through a US dollar sovereign bond issue.
According to official figures, investor bids for the four tranche deals reached $23.2 billion, nearly six times the amount raised.
China is currently facing a difficult time – its economy is showing signs of slowing, investors worry about a regulatory crackdown and a possible transition from China’s Evergrande debt crisis.
2:57 pm
Air India’s move will give new energy to aviation sector: PM
Prime Minister Narendra Modi said that the Tata group’s decision to acquire Air India will give new energy to the country’s aviation sector. The remarks come weeks after Tata Group emerged as the winning bidder to take over the debt-ridden national carrier.
2:50 pm
Over-tightness in property sector being corrected: China regulator
China’s foreign exchange regulator has said that the country’s financial institutions and markets are gradually recovering from the excessive tightening of the asset sector, and financial activities are returning to normal.
According to state media reports, the head of the regulator, Pan Gongsheng, controlled the additional influence from policy changes by developed countries.
2:17 pm
Credit Suisse faces penalties over money laundering charges
Zurich-based bank Credit Suisse said it would reach agreements with British, Swiss and US authorities in Mozambique regarding loans to state companies.
This comes after the Swiss financial authority imposed new sanctions saying the bank had “seriously violated” anti-money laundering requirements in the matter.
The bank’s British subsidiaries arranged two loans totaling $1 billion in 2013, guaranteed by the government of Mozambique. The move was termed as a high reputation risk associated with large loans to an economically weak or corruption-prone country.
2:12 pm
UK inflation down
Inflation in the UK fell to 3.1% in September, near a nine-year peak, according to official data. The annual rate fell 3.2% in August, the highest level since early 2012.
However, analysts still expect the Bank of England to raise its key interest rate from a record-low of 0.1% next month.
High inflation is taking a toll on companies and consumers globally, while interest rate tightening is used by central banks to moderate price increases.
2:09 pm
Foxconn aims to make electric vehicles in India
The CEO has said that Taiwan-based Foxconn is looking to build electric vehicles in India, Europe and Latin America, including indirect collaborations with German automakers.
Foxconn recently expressed interest in becoming a major player in the global EV market by striking deals with US startup Fisker Inc. and Thailand-based energy conglomerate PTT PCL.
The company said it will focus on its BOL model — which means manufacturing, operating and localizing — by investing in partners to build and operate local factories and sell to local consumers.
1:30 pm
Dubai’s largest lender’s Q3 net profit up
Emirates NBD posted strong third quarter results, with its net profit up 61% to 2.5 billion dirhams ($682 million) compared to a year ago, due to strong demand for retail financing and significantly lower costs of exposure. But the credit mix improved.
The bank’s loss allowances for the first nine months of 2021 were down 42% at 1.15 billion dirhams due to an improving economic situation.
The outlook for the UAE economy is positive, with Expo 2020 Dubai predicted to boost domestic demand and easing of travel restrictions in key markets is expected to support improvements in tourism and hospitality.
1:15 pm
Fossil fuel production will exceed climate targets: UN
According to the United Nations Environment Program (UNEP), major economies are still planning to double fossil fuel production in 2030 Paris Agreement temperature target.
“The devastating effects of climate change are here for all to see. There is still time to limit long-term warming to 1.5 °C, but this window of opportunity is rapidly closing,” said UNEP Executive Director Inger Andersen.
The world’s 15 major fossil fuel producing countries, including China, India and the US, plan to produce about 110% more fossil fuels in 2030, which would correspond to limiting warming to 1.5 °C, and 45% more will correspond to. °C, according to the 2021 production gap report.
Delegates from nearly 200 countries will meet in Glasgow, Scotland, from 31 October to 12 November for climate talks to strengthen action to tackle global warming under the 2015 Paris Agreement.
12:59 pm
Global smartphone market shrinks
According to a report by market analyst firm Canalys, the global smartphone market contracted 6% in the third quarter of 2021 as vendors struggled to meet demand for devices amid a shortage of components.
Samsung topped the overall smartphone market with a 23% share. Apple took the second spot with 15% share, while Xiaomi slipped to third place with 14% share, followed by Vivo and Oppo with 10% share.
“On the supply side, chipset makers are increasing prices to discourage over-ordering, in an attempt to close the gap between demand and supply. But despite this, the deficit will not subside until 2022,” said Ben Stanton, Principal Analyst at Canalys.
11:55 am
China’s new home prices stalled
China’s new home prices stalled in September amid continued government crackdown on speculative investment. The average new home price in 70 major Chinese cities remained unchanged month-on-month in September, compared with a 0.2% increase in August.
Tighter asset restrictions in China are likely to continue as leaders worry that a persistent asset bubble could dent the country’s long-term rise. NS Debt-laden property developer Evergrande The concern of the sector is also increasing.
11:38 am
Rupee rises against US dollar
After the holiday, the domestic currency market opened strongly today Indian rupee strengthens against US dollar. The domestic unit opened at 75.10 against the US Dollar and strengthened further at 75.09, showing a sharp rise of 26 paise over the previous close.
Lower oil prices and a weak greenback in overseas markets have propelled the Indian currency. The dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.06 per cent to 93.67.
10:58 am
IMF cuts Asia’s growth forecast
The IMF downgraded economic growth in Asia due to Covid-19 and warned that US fiscal tightening to tackle inflation could negatively impact the region.
“However, growth in inflation in Asia has so far been more modest than in other regions. But risks are rising,” said Changyong Ri, IMF director of the Asia Pacific Department.
The fund expects Asia’s economy to grow 6.5% in 2021, compared to its forecast of 7.6% expansion in April, it said. India is expected to expand by 9.5 per cent this year. China, the world’s second largest economy, will grow at 8% this year and 5.6% in 2022.
Changyong Ri, IMF Director of the Department of Asia Pacific. | photo Credit: International Monetary Fund
10:05 am
IMF chief economist Gopinath returns to Harvard
The International Monetary Fund (IMF) announced that Fund’s chief economist Gita Gopinath will return to Harvard As planned in January 2022 when his public service leave will end.
IMF Managing Director Kristalina Georgieva said: “Gita’s contribution to the Fund and our membership has been truly remarkable – simply put, her influence on the work of the IMF has been tremendous.”
Gopinath, who made history as the fund’s first female chief economist, co-authored the “Pandemic Paper” on how to end the COVID-19 pandemic, which set globally supported targets for immunizing the world.
Georgieva said, “Gita also won the respect and admiration of colleagues in the research department, across the fund, and for analytically rigorous work and policy-relevant projects with high influence and influence.”
9:18 am
Asian Market Updates | Sensex Open
indian indices open After gaining seven sessions yesterday on positive global cues, it gained momentum and closed marginally lower. The BSE Sensex opened up 84.02 points at 61,800.07, while the NSE Nifty opened up 21.15 points at 18,439.90.
Sensex touched the highest level of its life of 62,245.43 during the previous session, and Nifty set a new intra-day record of 18,604.45 yesterday.
Asia-Pacific shares rose after a rally in Wall Street as investors bet on a positive corporate earnings season.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% and Japan’s Nikkei rose 0.42%. South Korea’s Kospi opened at 3,043.13 slightly higher than its previous close. Hong Kong’s Hang Seng jumped 0.66%.
In the US, the S&P 500 rose 0.74% to 4,519.63, the Nasdaq Composite rose 0.71% to 15,129.09, while the Dow Jones Industrial Average rose 0.56% to 35,457.31.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
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