Economy Financial News

Treasury yields held firm after strong U.S. data heightened doubts on whether the Federal Reserve would deliver three interest rate cuts this year. FUNDAMENTALS * Spot gold was down 1.1% at $2,305.09 per ounce, as of 0109 GMT, after hitting a record high of $2,330.06 on Friday.

If ever there was a case for the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) to present a straight bat, and not attempt any theatrics, Friday, 5 April 2024, was the day. With the economy doing well, inflation down, if not out, and general elections looming ahead, it made no sense to rock the boat.

The decision of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) to leave the policy rate unchanged in the last meeting was on expected lines. RBI also maintained its stance of ‘withdrawal of accommodation,’ as it is committed to bringing down consumer price index (CPI)-based inflation to its 4% target on a durable basis. RBI governor Shaktikanta Das highlighted that healthy economic growth has given RBI room to unwaveringly focus on price stability.

‘Kharge exposed Modi-Shah game plan’, Congress hits back at BJP Varnerkar's respect for Prime Minister Modi is to such an extent that he even built a temple dedicated to the PM Modi in his home. He regularly performs prayers in Modi's honour in that temple. Prime Minister Modi has expressed confidence in winning the national election for the third time on the trot.

Thailand’s status as a tourism hotspot into an aviation and logistics hub — has discussed the Schengen-type visa idea with his counterparts in Cambodia, Laos, Malaysia, Myanmar and Vietnam in recent months. The facility is meant to ensure seamless mobility for travellers among the six neighbouring countries. With most leaders positively responding to the single-visa concept, tourism-reliant Thailand aims to generate more revenue per traveller and cushion its economy from headwinds such as sluggish exports and weak global demand that’s hurt its manufacturing industry.

Nadda on Sunday charged that the INDI Alliance leaders, who are either on bail or in jail, were keen on protecting the corrupt people whereas Prime Minister Narendra Modi was striving hard to end corruption in the country. Those leaders such as Delhi Chief Minister Arvind Kejriwal, were in prison while Congress leaders including Sonia Gandhi and her son Rahul were on bail, Nadda said and claimed the opposition leaders presented a contrasting picture compared to the Prime Minister who is an epitome of development and determined to end corruption. «Prime Minister Narendra Modi says I will finish corruption, but the INDI alliance leaders say save the corrupt people. That is their working style. In Tamil Nadu, the DMK, which stands for Dynasty Money Swindling and Katta Panchayat and its ally the Congress are corrupt. All of them are trying to save their families and dynasties and themselves from their corruption,» Nadda said addressing a rally here.

Rajnath Singh on Sunday asserted that the track record of the BJP government at the Centre has been «fabulous» as it considers people supreme whereas the Congress treats a family supreme. The BJP, he said, is also committed to fulfilling all the promises made to the people. «The track record of Modi ji's politics has been fabulous. And it was fabulous because we treat people as supreme whereas the Congress treats a family supreme,» the senior BJP leader said addressing a public meeting in support of BJP candidate Arjun Ram Meghwal in Kolayat in Bikaner. The defence minister said he is pained when the Congress questions the power and valour of the country's defence forces.

Mark Matthews, MD, Julius Baer, says: “China is not a good market to invest for the long term and if you put $100 into India 30 years ago, it would be about $1,800 today, which is remarkable considering what the rupee has done over that period of time. $100 in China would be about $150 today. So, it has been a destroyer of capital. However, there are opportunities that come along in every market, including China, and I think this is one, firstly, because their economy is bottoming out and it is not only cheap, it is abnormally cheap. I think China will be about 20% to 30% higher between now and 12 months from now. But beyond that, I would not hold it.” After how long have you come to India and what is the staggering change that you have felt? Mark Matthews: It has been around two years since I was last in India and it is great to be back.

Mint’s Plain Facts section brings out an update on key global economic data to thread together the biggest developments in the world that are worth paying attention to. The accompanying analysis and charts explain how each story is creating ripples on the global stage, where it is headed in the coming weeks, and whether it can impact India. This time, we explain why the Bank of Japan has ended a long era of negative interest rates and what is causing financial stress to citizens of several countries.

It is ChIna’s gravest economic test since the most far-reaching of Deng Xiaoping’s reforms began in the 1990s. Last year the country achieved growth of 5%, but the pillars of its decades-long miracle are wobbling. Its famously industrious workforce is shrinking, history’s wildest property boom has turned to bust and the global system of free trade that China used to get richer is disintegrating.

Thailand is steering an initiative for a joint-visa program with countries that together hosted about 70 million tourists last year as Prime Minister Srettha Thavisin ramps up initiatives to attract more long-haul and high-spending travelers. Srettha — who’s pledged to elevate Thailand’s status as a tourism hotspot into an aviation and logistics hub — has discussed the Schengen-type visa idea with his counterparts in Cambodia, Laos, Malaysia, Myanmar and Vietnam in recent months. The facility is meant to ensure seamless mobility for travelers among the six neighboring countries. With most leaders positively responding to the single-visa concept, tourism-reliant Thailand aims to generate more revenue per traveler and cushion its economy from headwinds such as sluggish exports and weak global demand that’s hurt its manufacturing industry.

Nilesh Shah while underscoring India's favourable economic situation due to cheaper oil prices and strong GDP despite geopolitical tensions. To prove that “god exists upstairs and is an Indian", Nilesh Shah, referred to double-digit oil prices in India despite the Israel-Hamas war, Red Sea disturbance and other geopolitical tensions. He also mentioned US Fed hints on rate cuts, and strong GDP growth rate numbers.

China agreed to hold talks that will address a key American complaint about China's economic model, Treasury Secretary Janet Yellen said Saturday on the second day of an official visit to China. The two sides will hold «intensive exchanges» on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

As the Magnificent Seven are downgraded to the Fab Four, perhaps the list of leading tech stocks should include an old-school name: Exxon Mobil. The oil company’s shares would come in fourth in the septet this year with a rise of 21%, after Nvidia and Meta and very close to Amazon. Behind Exxon’s surge to a new high on Friday is an important shift in the market, a new narrative that investors would be wise to pay close attention to—in case it changes again.

US lauds India's policy of ‘forcing’ Russia to sell oil at bigger discounts "Agreed that the US and China will hold intensive exchanges on balanced growth in the domestic and global economies. These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity, and I intend to use this opportunity to advocate for a level playing field for American workers and firms," Yellen said. On Friday, Yellen chided China for “unfair" treatment of American and other foreign companies.

China -U.S. Treasury Secretary Janet Yellen said on Saturday that she and Chinese Vice Premier Hi Lifeng agreed to launch exchanges on balanced growth in domestic and global economies, an effort she said partly aimed at addressing U.S. concerns about China's excess manufacturing capacity. After two days of economic talks in China's southern export hub of Guangzhou, Yellen said she and He also agreed to start a forum to cooperate on anti-money laundering efforts in their respective financial systems.

PM Modi speaks with Sandeshkhali victim and BJP candidate Rekha Patra "Locals gheraoed the vehicle and pelted stones at it. The NIA has said one of its officers was also injured," a senior police official told ANI news agency.

Indian stock market vs US stock market: On account of a strong rally in the small-cap and mid-cap indices during the January to March 2024 quarter, small-cap and micro-cap indices on Dalal Street have outperformed their counterparts in the global market, which includes Wall Street. The Nifty 500 index has risen to the tune of 6.40 percent in YTD time whereas the Nifty Next 50 index skyrocketed to the tune of 17.50 percent in CY24.

Indian economy could grow at 8 per cent till 2047, while the IMF distanced itself from Subramanian's growth projections of Indian economy. On Saturday, Subramanian hit back at the Washington-based financial body saying the staff at the International Monetary Fund has consistently been ‘INACCURATE’ about India's growth estimates during hid tenure at IMF. “During my tenure at IMFNews (since Nov-22), IMF staff’s estimate of India’s growth rate has been consistently INACCURATE," the IMF official wrote in a post on X (formerly Twitter).

Bank that a June rate cut is really coming, though oil is on the rise again, clouding the inflation picture — and giving policy makers in Canada, New Zealand and Korea food for thought. China gears up to release a deluge of key data and U.S. banks kick off the earnings season.

Gold and silver rates today: Despite the rise in the US dollar rates, gold and silver prices continue flirting with record highs throughout the week on US Fed rate cut buzz. Gold futures contract on the Multi Commodity Exchange (MCX) for June 2024 expiry climbed to a new peak of ₹70,699 per 10 gm on Friday. Silver rates too climbed to a new peak of ₹81,030 per kg on the last session of the week gone by.