Economy Financial News

By Yoshifumi Takemoto and Leika Kihara

Olympic Games are the biggest sports events but they are mega business events too which need to be planned and executed keeping in mind all the possible costs and benefits. India, which is now trying to join the ranks of advanced economies and could become the world's third largest economy in a few years, has decided to throw its hat in the Olympics ring. Prime Minister Narendra Modi has confirmed India’s bid for the 2036 Olympics while inaugurating the 141st International Olympic Committee (IOC) session on October 14.

Mint reported, Federal Reserve Chair Jerome Powell said on Thursday, October 19, that inflation in the US remains too high and bringing it down to the Fed's 2 per cent target level will likely require a slower-growing economy and job market. US bond yields have gone up significantly, nearing the highest levels in 16 years. The prime reason for this is the uncertainty about future interest rates in the US.

The International Energy Agency said this week that 49.7 million miles of transmission lines—enough to wrap around the planet 2,000 times—will have to be built or replaced by 2040 to achieve the climate lobby’s net-zero emissions goal. This amounts to a plan for everyone to buy more metals from coal-fired plants in China. Grid investment, the IEA report argues, is needed to carry additional renewable energy “as the world deploys more electric vehicles, installs more electric heating and cooling systems, and scales up hydrogen production using electrolysis." By its estimate, the world needs to spend $600 billion annually on grid upgrades by 2030.

Also read: To curb inflation, RBI plans bond sales to suck liquidity Governor Das added, “The global economy is now facing a tirade of challenges. First, slow moderation in inflation, which is getting interrupted by recurring and overlapping shocks. Second, slowing growth, and that too is fresh and enhanced obstacles.

«I think you have to see our growth and where the growth is coming from. I think we have domain specialisations. So, our two domains actually got subdued during the COVID crisis, which is the vehicle finance as well as the microfinance and we were very conservative on that,» says Sumant Kathpalia, MD & CEO, IndusInd Bank. Bulls on the wall really are a mascot of how good you are feeling about the world and how good you are feeling about India. Yes, I think, in a very difficult macro and the world macro, India, it continues to outshine and I believe it has just started. I think the next decade belongs to India and I am completely convinced that whatever our regulators and the ministry is doing will only fuel the growth in the Indian economy. Let us talk about specifics of IndusInd Bank. If I take the clock back, let us say, five-six quarters ago, IndusInd Bank was growing in mid-teens. Now you are growing in early 20s, much higher than the industry average. You are growing without raising capital. Your CASA is in place. So, can I say that now the bank is firing full cylinders? I think you have to see our growth and where the growth is coming from. I think we have domain specialisations. So, our two domains actually got subdued during the COVID crisis, which is the vehicle finance as well as the microfinance and we were very conservative on that.

Investing.com-- Gold prices rose to a three-month high on Friday amid persistent safe haven demand on concerns over the Israel-Hamas war, while somewhat mixed signals on U.S. interest rates also stalled a rally in the dollar and Treasury yields. 

By Clare Jim and Liangping Gao

NEW DELHI (Reuters) -The International Monetary Fund (IMF) is looking for a strong budget and narrower deficit from Sri Lanka as it seeks funding to bridge the gap between government revenue and expenditure, the IMF mission chief for the country said on Friday.

Investing.com-- Most Asian currencies kept to a tight range on Friday, while the dollar steadied following somewhat mixed comments from Federal Reserve Chair Jerome Powell on the path of interest rates. 

By David Randall and Davide Barbuscia

Australia’s advertising industry has asserted itself as a bigger force than the accommodation and fast food sectors in economic output, pre-empting a crackdown by the Albanese government on gambling and wagering advertising.

economic data suggested the economy is stabilising and a weaker yuan constrained further monetary easing. The one-year loan prime rate (LPR) was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Better-than-expected third quarter gross domestic product (GDP) and retail sales data suggest China's economic recovery has started to improve, needing less monetary support. «Economic activity has stabilised and authorities can afford to wait a while before deploying more monetary easing down the road,» emerging market analysts at TD Securities said in a research note. Bearish sentiment over the yuan was also seen as a factor against further rate cuts.

Federal Reserve Chair Jerome Powell said inflation remains too high and that bringing it down to the Fed’s target level will likely require a slower-growing economy and job market

Pradhan Mantri Jan Dhan Yojana (PMJDY) to provide financial services to all citizens, regardless of their socio-economic status. The scheme has made significant progress towards increasing financial literacy and reducing poverty, but it still faces challenges. Pradhan Mantri Jan Dhan Yojana is a National Mission on Financial Inclusion which has an integrated approach to bring about comprehensive financial inclusion and provide banking services to all households in the country.

Q2 results today: Despite speculations about global slowdown, Indian companies reported strong quarterly results in January to March 2023 quarter. The performance improved further in April to June 2023 quarter after better-than-expected recovery in the Indian economy. In fact, Indian economy has managed to keep the inflation under control throughout the year, which is expected to fuel industrial and other demands in India.

U.S. stocks ended lower on Thursday, with shares of Tesla down sharply and Treasury yields surging after Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether rates would stay higher for longer. Tesla shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand. Treasury yields rose further and the benchmark 10-year note yield was at a 16-year high of almost 5%. «The 10-year looks like it's establishing a new higher trend, which… is putting pressure on equities, at least in the short term,» said Oliver Pursche, senior vice president, advisor for Wealthspire Advisors in Westport, Connecticut. «Markets were hoping that Jay Powell would indicate that the Fed is going to pause in its interest rate hikes, and he effectively hinted at the idea that they're going to have to raise again if they continue to have elevated concerns over inflation.» Powell said at the Economic Club in New York that U.S.

U.S. economy's strength and continued tight labor markets could require still tougher borrowing conditions to control inflation, Fed Chair Jerome Powell said on Thursday, though rising market interest rates could make action by the central bank itself less necessary. Appearing to align himself with Fed colleagues who have recently said the bond market is now doing some of the central bank's work for it, Powell in remarks to the Economic Club of New York agreed «in principle» that the rise in yields was helping to further tighten financial conditions and «at the margin» might lessen the need for additional Fed rate increases. It was not an explicit endorsement of that view, but financial markets seemed to read it as one.

Asian shares plumbed a fresh 11-month trough on Friday as fears of a regional conflict in the Middle East intensified and as a relentless rise in long-term U.S. yields pressured valuations, while supply concerns lifted oil prices further. The surge in the 10-year U.S.

HUL), considered a proxy for broader consumer sentiment in the country, reported a 4% increase in both net profit and sales in the September quarter, saying the market was gradually recovering as inflation is no longer a concern. This revival, however, is largely led by urban markets, the company said. Demand in rural areas has fallen on a two year basis although the pace of decline has reduced significantly over both sequential and from a year earlier, it said. Volumes rose 3% in the second quarter, indicating three-fourths of its growth was driven by demand instead of price rise.

Federal Reserve Chair Jerome Powell suggested the US central bank is inclined to hold interest rates steady again at its next meeting while leaving open the possibility of a future hike if policymakers see further signs of resilient economic growth. The comments effectively affirm market expectations for the Fed to skip a rate increase for a second straight meeting when officials gather on Oct. 31 and Nov. 1. The Fed chief also said a recent run-up in long-term Treasury yields, if they persist, could lessen the need for further hikes “at the margin,” echoing his colleagues and underscoring the importance of tightening financial conditions to the rate outlook over the coming months. Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” Powell said Thursday at the Economic Club of New York. “We will make decisions about the extent of additional policy firming and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks.” Yields on two-year Treasuries declined after Powell spoke, while 10-year yields pared an increase that pushed them near the 5% mark. The dollar fell against a basket of major currencies, and the S&P 500 index of stocks, after multiple twists and turns, fell. “For November, he has clearly sent a signal of pause,” said Laura Rosner, partner at Macropolicy Perspectives LLC. “He expects the economy to cool down in the fourth quarter, and yields are doing some of the work for them.”