Month: February 2020

China Manufacturing Plunges, U.S. Cases Emerge: Virus Update

(Bloomberg) — China’s factory activity fell to a record low after weeks of closures caused by the coronavirus, while the number of cases in South Korea soared.

Infections in California and Oregon indicated the virus is already in the community on the U.S. West Coast. The U.S. raised its travel advisory for outbreak-hit Italy. Federal Reserve Chairman Jerome Powell said the central bank is prepared to cut interest rates.

After U.S. equities suffered their worst week since the financial crisis, President Donald Trump said his administration is prepared for “the worst.” Acting White House Chief of Staff Mick Mulvaney said …

India has to choose between US, China tech systems: Uday Kotak

Kotak Mahindra Bank chief Uday Kotak said on Friday that India will have to choose between Western tech systems and Chinese ones in the next two years. The veteran banker said a lot would be riding on 5G technology. The decision would depend on how the rest of the world deals with the two systems, Kotak said in response to a query on emergence of technology in the financial sector at an event in Pune.

India has a tough choice to make, keeping in mind economic and political alignments which could change in the future, he added. The proposition that

Japan Stocks Slide 4% as Fear Spreads; Bonds Rise: Markets Wrap

(Bloomberg) — Fear gripped Asian markets Friday after the biggest rout for equities on Wall Street since 2011, with investors flocking to the yen and bonds to find shelter from the expected blow to corporate earnings from the coronavirus.

With the likes of Citigroup Inc. analysts saying they want to see markets “closer to panic” before going all-in on global equities, there was no appetite for dip buying ahead of the weekend. The Topix Index slid over 4%, and Shanghai and Seoul saw declines of over 3%. U.S. futures tumbled after a 4.4% plunge Thursday. Crude oil collapsed below $46

India’s GDP seen growing at 4.7% y-o-y in December quarter, with Coronavirus impact to come

The median forecast of a Reuters poll of economists put annual economic growth at 4.7% in the December quarter.

Having suffered its weakest expansion in over six years in the September quarter, India’s economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said. Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic.

The median forecast of a Reuters poll of economists put annual economic growth at

Loan growth lowest since May 2017, plunges to 6.3% YoY in fortnight to February 14

Indeed, bank loans to companies and individuals have fallen to Rs 99.68 lakh crore, while the overall outstanding loans stand at Rs 100.42 lakh crore.

By Hariprasad Radhakrishnan

Growth in bank loans to companies and individuals plunged to 6.3% year-on-year in the fortnight to February 14, the lowest pace seen since May 2017. In an indication of how sluggish India’s credit markets are, non-food credit between April 2019 and mid-February grew at just 2.5%. That is way below the 9.3% reported in the comparable period of 2018-19. Indeed, bank loans to companies and individuals have fallen to Rs 99.68 lakh

Asian stocks slide deeper as pandemic fears grow

By Tom Westbrook

SINGAPORE (Reuters) – Oil and Asian share markets extended losses on Thursday as the rapid global spread of the coronavirus kept investors on edge and seeking safety in gold and bonds.

Rising fears of a pandemic, which U.S. health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday’s close.

China accounts for about 96% of cases and has instituted dire containment methods that have paralysed global supply chains.

But most new infections are now being reported elsewhere, with news on Thursday of a jump in cases in South

No new taxes in Gujarat budget; focus on education, health

No new taxes were proposed in the Gujarat budget for 2020-21, presented by the BJP government on Wednesday, which saw a healthy allocation of Rs 31,955 crore for education, Rs 11,243 crore for health and Rs 7,423 crore for the agriculture sector.

The Rs 2,17,287-crore budget for the next fiscal has an overall surplus estimates of Rs 275 crore. In the budget presented on the first day of the assembly session, Deputy Chief Minister Nitin Patel, who also
holds the finance portfolio, proposed to reduce electricity duty for shops and offices, cold storages, religious places and dharmshalas, giving benefits of

DHFL dues: Fixed deposit holders set to move NCLT

DHFL is undergoing insolvency proceedings at NCLT, Mumbai, after getting admitted on December 2, 2019.

By Ankur Mishra

The fixed deposit (FD) holders of Dewan Housing Finance (DHFL) will move the National Company Law Tribunal (NCLT), Mumbai, after its committee of creditors (CoC) refused any immediate relief in clearing dues, a lead petitioner in the matter, Vinay Kumar Mittal, told FE.

In a CoC meeting held on February 20, the authorised representative of FD holders raised the demand for payment to FD holders, especially in case of medical emergencies, and proposed that the evaluation matrix should include a statement as

Asian Stocks Decline; U.S. Rises After Deep Rout: Markets Wrap

(Bloomberg) — Stocks in Asia fell in heavy trading Wednesday after another epic rout on Wall Street, while U.S. futures rose and the yen dipped, taking back some of their strong recent moves.

The won fell toward its weakest since 2016 after South Korea reported a further escalation in coronavirus cases. Stock benchmarks were down more than 1% in Seoul and Tokyo, though came off their lows of the session. Hong Kong and Shanghai saw smaller drops. The S&P 500 Index fell 3% overnight, in its worst two-day slide since 2015. Ten-year Treasury yields held near Tuesday’s record low. The

CII-USIBC report: Commission study for Indo-US FTA, $500 billion trade

Bilateral trade has grown at an impressive CAGR of 11.8% over the last two decades, said CII director general Chandrajit Banerjee.

India and the US need to undertake a study to assess the feasibility of a free trade agreement (FTA) and undertake a cost-benefit analysis, a report by Confederation of Indian Industry (CII) and the US India Business Council (USIBC) suggested on Tuesday, when leaders of the two nations held talks here and agreed to work towards a ‘tremendous trade deal’.

The two groups also recommended that the US consider exempting India from its extra steel and aluminum tariffs, and