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Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain.

"Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda.

"What we're seeing is some profit-taking in Asia in very light volumes."

A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy.

Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now.

A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors.

Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth.

However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy. Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain. "Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda. "What we're seeing is some profit-taking in Asia in very light volumes." A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy. Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now. A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors. Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth. However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices eke out small gains ahead of Federal Reserve Chair Jerome Powell speech

Asian shares struggled to make any headway on Friday as weak US &nbsp;manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears.

With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole.

MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1% lower, though it was up 0.6% for the week and on track to break a four-week losing streak.

Japan's benchmark Nikkei added 0.2% and Australian stocks eased 0.1%, while South Korean shares shed 0.3% after Seoul said it will scrap an intelligence-sharing agreement with Japan.

"It's going to be another wait-and-see day for traders ahead of Powell's Jackson Hole speech. Investors are hoping for some soothing words from him," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

Wall Street stocks were mixed on Thursday, with the S&amp;P 500 closing little changed, while the Dow was up 0.2% and the Nasdaq falling 0.4%.

In the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight, a shift that also occurred last week and sent financial markets into a tailspin amid worries of a sharp global downturn. An inversion in the US yield curve has presaged several past US recessions, raising fears the decade-long expansion in the world's biggest economy might be nearing its end.

Overnight, there were more signs of easing momentum as a survey showed US manufacturing activity contracted for the first time since September 2009, though better jobless claims data indicated a resilient labour market.

All of that has made Powell's speech in Jackson Hole pivotal for markets as they look for any clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Any indications of hawkishness in the Fed chief's comments might hurt riskier assets, though the dollar stands to benefit.

The greenback slipped on Thursday, but moved within narrow ranges.

In early Asian trading, the dollar was up 0.1% against a basket of major currencies to 98.249.

The euro also was little changed against US currency at $1.1078. A survey showing a surprise uptick in eurozone business growth for August was offset somewhat by trade war fears knocking future expectations to their weakest in over six years.

The pound jumped to a three-week high of $1.2273 overnight after traders interpreted comments from German Chancellor Angela Merkel to mean that a solution to the Irish border problem could be found before Britain leaves the European Union on October 31.

Merkel on Wednesday challenged Britain to come up with alternatives to the Irish border backstop within 30 days, but French President Emmanuel Macron cautioned there would be no renegotiation of the Brexit deal. Sterling last quoted at $1.2244, almost flat on the day.

China's yuan, which slid to fresh 11-1/2-year lows on Thursday despite support from major state-owned banks in both the spot and forwards markets, maintained its weak tone against the dollar amid worries about the deepening Sino-US trade war.

Onshore spot yuan ended the domestic session down 0.3% at 7.0875 per dollar, its weakest such close since March 14, 2008.

In early trade, the offshore yuan stood at 7.0924 to the dollar, little changed on the day.

Oil prices weakened overnight, with both Brent crude and US West Texas Intermediate down 0.6% each, on worries about the global economy.

Brent crude was last up 0.2% at $60.02 per barrel and WTI crude added 0.1% to $55.38.

Gold prices dipped on Thursday but held near the pivotal level of $1,500 per ounce, underpinned by continued demand for the precious metal amid uncertainties around monetary policy, trade and geopolitical tensions.

Spot gold was last down 0.2% at $1,496.00 an ounce.

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears.

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears. With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole. MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1% lower, though it was up 0.6% for the week and on track to break a four-week losing streak. Japan's benchmark Nikkei added 0.2% and Australian stocks eased 0.1%, while South Korean shares shed 0.3% after Seoul said it will scrap an intelligence-sharing agreement with Japan. "It's going to be another wait-and-see day for traders ahead of Powell's Jackson Hole speech. Investors are hoping for some soothing words from him," said Hirokazu Kabeya, chief global strategist at Daiwa Securities. Wall Street stocks were mixed on Thursday, with the S&P 500 closing little changed, while the Dow was up 0.2% and the Nasdaq falling 0.4%. In the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight, a shift that also occurred last week and sent financial markets into a tailspin amid worries of a sharp global downturn. An inversion in the US yield curve has presaged several past US recessions, raising fears the decade-long expansion in the world's biggest economy might be nearing its end. Overnight, there were more signs of easing momentum as a survey showed US manufacturing activity contracted for the first time since September 2009, though better jobless claims data indicated a resilient labour market. All of that has made Powell's speech in Jackson Hole pivotal for markets as they look for any clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Any indications of hawkishness in the Fed chief's comments might hurt riskier assets, though the dollar stands to benefit. The greenback slipped on Thursday, but moved within narrow ranges. In early Asian trading, the dollar was up 0.1% against a basket of major currencies to 98.249. The euro also was little changed against US currency at $1.1078. A survey showing a surprise uptick in eurozone business growth for August was offset somewhat by trade war fears knocking future expectations to their weakest in over six years. The pound jumped to a three-week high of $1.2273 overnight after traders interpreted comments from German Chancellor Angela Merkel to mean that a solution to the Irish border problem could be found before Britain leaves the European Union on October 31. Merkel on Wednesday challenged Britain to come up with alternatives to the Irish border backstop within 30 days, but French President Emmanuel Macron cautioned there would be no renegotiation of the Brexit deal. Sterling last quoted at $1.2244, almost flat on the day. China's yuan, which slid to fresh 11-1/2-year lows on Thursday despite support from major state-owned banks in both the spot and forwards markets, maintained its weak tone against the dollar amid worries about the deepening Sino-US trade war. Onshore spot yuan ended the domestic session down 0.3% at 7.0875 per dollar, its weakest such close since March 14, 2008. In early trade, the offshore yuan stood at 7.0924 to the dollar, little changed on the day. Oil prices weakened overnight, with both Brent crude and US West Texas Intermediate down 0.6% each, on worries about the global economy. Brent crude was last up 0.2% at $60.02 per barrel and WTI crude added 0.1% to $55.38. Gold prices dipped on Thursday but held near the pivotal level of $1,500 per ounce, underpinned by continued demand for the precious metal amid uncertainties around monetary policy, trade and geopolitical tensions. Spot gold was last down 0.2% at $1,496.00 an ounce.

Asian stocks shaky before Fed Chairman Jerome Powell's speech as growth woes weigh

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting&nbsp;that there would be no surcharge on long and short term capital gain.

Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no&nbsp;surcharge for FPI and domestic investors in the market.&nbsp;"All pending GST refunds due to MSMEs till now shall be paid within 30 days from today," the finance minister informed.

The minister said that Angel&nbsp;tax provisions for startups will be removed.

"Tax assessment will become faceless and random." "It is wrong to say the government is harassing taxpayers," she said. The minister said 1400 prosecutions were withdrawn and sixteen offences have been moved to "monetary penalty".

"BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration," the finance minister added.

"Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles and other retail loans, by directly linking repo rates to the interest rates," the finance minister.

"CSR violation is not a criminal offence," the finance minister said.&nbsp;

I-T notices will be through a centralised system,&nbsp;Sitharaman added.

India's finance minister said the global growth rate is forecast at 3.2 per cent, asserting that global demand is weak at the present.

"Just to give you briefly a picture of what is happening globally. The current projected global GDP growth is of about 3.2 per cent and probably is going to be even revised downwards," the finance minister said.

Sitharaman said that surcharge on capital gains has been withdrawn.

"India is in a better position," Sitharaman said.

Sitharaman said the situation global trade was volatile while emphasising that reforms was&nbsp;a continues endeavour of the government.

"I had consultation with industry representatives, India's position is in a comfortable zone," she added. The government is responsive to the situation the ground, the finance minister assured the nation.

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Addressing a press conference, the finance minister said GST returns will be simplified even further.

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no surcharge for FPI and domestic investors in the market. "All pending GST refunds due to MSMEs till now shall be paid within 30 days from today," the finance minister informed. The minister said that Angel tax provisions for startups will be removed. "Tax assessment will become faceless and random." "It is wrong to say the government is harassing taxpayers," she said. The minister said 1400 prosecutions were withdrawn and sixteen offences have been moved to "monetary penalty". "BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration," the finance minister added. "Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles and other retail loans, by directly linking repo rates to the interest rates," the finance minister. "CSR violation is not a criminal offence," the finance minister said. I-T notices will be through a centralised system, Sitharaman added. India's finance minister said the global growth rate is forecast at 3.2 per cent, asserting that global demand is weak at the present. "Just to give you briefly a picture of what is happening globally. The current projected global GDP growth is of about 3.2 per cent and probably is going to be even revised downwards," the finance minister said. Sitharaman said that surcharge on capital gains has been withdrawn. "India is in a better position," Sitharaman said. Sitharaman said the situation global trade was volatile while emphasising that reforms was a continues endeavour of the government. "I had consultation with industry representatives, India's position is in a comfortable zone," she added. The government is responsive to the situation the ground, the finance minister assured the nation.

Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman

Sri Lanka's central bank cut its main lending rate Friday for the second time in three months hoping to lift the economy as its struggles in the wake of the devastating Easter attacks that hit the key tourism sector.

The Central Bank of Sri Lanka (CBSL) said the rate at which it lent to commercial banks was reduced by 50 basis points to 8.0 per cent.

It added that the 50-basis-point cut in May had not translated into cheaper credit for consumers and expected the latest move to reflect in market lending rates.

"It is essential that market lending rates are lowered by bank and non-bank financial institutions in response to their reduced cost of funds, thereby boosting credit flows to productive sectors, and in turn help the revival of the economy," the bank said in its monthly economic review.

Sri Lanka's economic growth slowed to 3.2 per cent last year from 3.4 per cent in 2018, but had been expected to pick up in 2019 until the devastating attacks by a homegrown jihadist group that killed hundreds and hammered tourism and consumer spending.

"Although economic growth is expected to recover gradually towards its potential in the medium term, domestic and global headwinds are likely to delay this recovery," the bank said.

Finance Minister Mangala Samaraweera expected revenues from tourism -- one of the country's biggest income earners -- to plunge $1.5 billion this year because of cancellations by foreign tourists after the bombings, but the industry expects a faster recovery.

The government allowed a state of emergency to lapse on Thursday as authorities announced they had arrested or killed those directly responsible for the attacks.

The International Monetary Fund released a delayed loan instalment to Sri Lanka following the bombings, helping government efforts to stabilise the economy.

The global lender released $164 million under a three-year $1.5 billion bailout that was suspended in October during a power struggle between the president and the prime minister.&nbsp;

Sri Lanka's central bank cut its main lending rate Friday for the second time in three months hoping to lift the economy as its struggles in the wake of the devastating Easter attacks that hit the key tourism sector.

Sri Lanka's central bank cut its main lending rate Friday for the second time in three months hoping to lift the economy as its struggles in the wake of the devastating Easter attacks that hit the key tourism sector. The Central Bank of Sri Lanka (CBSL) said the rate at which it lent to commercial banks was reduced by 50 basis points to 8.0 per cent. It added that the 50-basis-point cut in May had not translated into cheaper credit for consumers and expected the latest move to reflect in market lending rates. "It is essential that market lending rates are lowered by bank and non-bank financial institutions in response to their reduced cost of funds, thereby boosting credit flows to productive sectors, and in turn help the revival of the economy," the bank said in its monthly economic review. Sri Lanka's economic growth slowed to 3.2 per cent last year from 3.4 per cent in 2018, but had been expected to pick up in 2019 until the devastating attacks by a homegrown jihadist group that killed hundreds and hammered tourism and consumer spending. "Although economic growth is expected to recover gradually towards its potential in the medium term, domestic and global headwinds are likely to delay this recovery," the bank said. Finance Minister Mangala Samaraweera expected revenues from tourism -- one of the country's biggest income earners -- to plunge $1.5 billion this year because of cancellations by foreign tourists after the bombings, but the industry expects a faster recovery. The government allowed a state of emergency to lapse on Thursday as authorities announced they had arrested or killed those directly responsible for the attacks. The International Monetary Fund released a delayed loan instalment to Sri Lanka following the bombings, helping government efforts to stabilise the economy. The global lender released $164 million under a three-year $1.5 billion bailout that was suspended in October during a power struggle between the president and the prime minister.

Sri Lanka cuts rates as economy struggles after Easter attacks

<a href="https://www.wionews.com/world/singapore-to-raise-retirement-age-to-65-years-prime-minister-243941">Singapore</a>'s core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices.

That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent&nbsp;increase in the previous month.

Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent&nbsp;forecast for 2019, having previously said it would come in the middle.

The 1 per cent-2 per cent&nbsp;forecast range remains in place.

"This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics.

"This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy."

The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move.

The Singapore dollar weakened after the data release and was down around 0.2 per cent&nbsp;against the US dollar on the day.

The headline consumer price index in July rose 0.4 per cent&nbsp;year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent&nbsp;rise, compared with a 0.6 per cent&nbsp;increase a month earlier.

Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent&nbsp;for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday.

"An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing. The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices. That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent increase in the previous month. Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent forecast for 2019, having previously said it would come in the middle. The 1 per cent-2 per cent forecast range remains in place. "This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics. "This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy." The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move. The Singapore dollar weakened after the data release and was down around 0.2 per cent against the US dollar on the day. The headline consumer price index in July rose 0.4 per cent year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent rise, compared with a 0.6 per cent increase a month earlier. Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday. "An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore cuts 2019 core inflation forecast as prices hit a 3-year low

Equity benchmark indices were in the negative zone during early hours on Thursday in line with global cues as uncertainty continued over the chance of global fiscal stimulus.

At 10:15 am, the BSE S &amp; P Sensex was down by 129 points at 36,932 while the Nifty 50 edged lower by 46 points to 10,873.

At the National Stock Exchange, all sectoral indices were in the red except for FMCG. Nifty realty plunged by 6.3 per cent.

Among auto stocks, realty major DLF plummeted 17.5 per cent to Rs 141.35 per share. Oberoi Realty was down 4.3 per cent while Indiabulls Housing Finance suffered a bruising fall of 7.8 per cent to Rs 445.80 per share and Yes Bank lost by 4.2 per cent.

The other prominent losers were Bajaj Finserv, Vedanta, Adani Ports and JSW Steel which lost over 2 per cent each. Hindalco, Zee Entertainment, IndusInd Bank and Bajaj Finance too were in the red.

But FMCG major Britannia gained by 2.6 per cent. Dr Reddy's, ITC, Bharti Infratel and Hindustan Lever showed marginal gains.

Meanwhile, Asian shares went flat as uncertainty continued over the outlook for US interest rates and the global fiscal stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.2 per cent in very light volumes. Japan's Nikkei was down by 0.05 per cent and the Shanghai Composite Index slipped 0.18 per cent. Hong Kong's Hang Seng too lost by 0.8 per cent.

Equity benchmark indices were in the negative zone during early hours on Thursday in line with global cues as uncertainty continued over the chance of global fiscal stimulus.

Equity benchmark indices were in the negative zone during early hours on Thursday in line with global cues as uncertainty continued over the chance of global fiscal stimulus. At 10:15 am, the BSE S & P Sensex was down by 129 points at 36,932 while the Nifty 50 edged lower by 46 points to 10,873. At the National Stock Exchange, all sectoral indices were in the red except for FMCG. Nifty realty plunged by 6.3 per cent. Among auto stocks, realty major DLF plummeted 17.5 per cent to Rs 141.35 per share. Oberoi Realty was down 4.3 per cent while Indiabulls Housing Finance suffered a bruising fall of 7.8 per cent to Rs 445.80 per share and Yes Bank lost by 4.2 per cent. The other prominent losers were Bajaj Finserv, Vedanta, Adani Ports and JSW Steel which lost over 2 per cent each. Hindalco, Zee Entertainment, IndusInd Bank and Bajaj Finance too were in the red. But FMCG major Britannia gained by 2.6 per cent. Dr Reddy's, ITC, Bharti Infratel and Hindustan Lever showed marginal gains. Meanwhile, Asian shares went flat as uncertainty continued over the outlook for US interest rates and the global fiscal stimulus. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.2 per cent in very light volumes. Japan's Nikkei was down by 0.05 per cent and the Shanghai Composite Index slipped 0.18 per cent. Hong Kong's Hang Seng too lost by 0.8 per cent.

Sensex continues downward slide, Nifty realty dips 6.2 per cent as DLF cracks 17 per cent

Bearish trends gripped the stock market on Thursday as investors awaited clarification on tax proposals for foreign portfolio investors made in the Budget and remained unsure of the stimulus package despite assurances by the government.

The BSE S&amp;P Sensex closed 587 points or 1.6 per cent lower at 36,473 while the Nifty 50 was down by 181 points or 1.7 per cent to 10,738.

Except for IT, all sectoral indices were in the red at the National Stock Exchange.

Nifty realty slipped by 6.2 per cent, PSU banks by 3.6 per cent, metal by 3.5 per cent and auto by 1.8 per cent. Among stocks, realty major DLF plummeted 15.9 per cent to Rs 144.30 per share.

Oberoi Realty slipped by 5.6 per cent to wind up at Rs 483.80 apiece.

Shares of Reliance Capital plunged over 19 per cent to hit a multi-year low of Rs 33.30 per share with reports saying that it is exiting the mutual funds business.&nbsp;

With the closure of open offer, Nippon Life Insurance's stake in Reliance Nippon Life Asset Management (RNAM) has risen to 54 per cent.

Yes, Bank fell over 12 per cent intra-day at Rs 57.45 per share with worries over the valuation of its stake in Gautam Thapar's CG Power and Industrial Solutions Ltd, which has been hit by allegations of financial irregularities.&nbsp;

The lender has 12.79 per cent stake in the company.

CG Power plummeted by another 9.75 per cent to Rs 10.65 per share.&nbsp;

LIC Housing Finance was down by nearly 11 per cent, Vedanta by 7.8 per cent, Indiabulls Housing Finance by 5.7 per cent, Bajaj Finserv by 5.5 per cent and Bajaj Finance by 4.9 per cent. However, the gainers included Britannia, Tech Mahindra, Dr. Reddy's, Hindustan Lever and Tata Consultancy Services.

Meanwhile, Asian shares were flat as uncertainty continued over the outlook for US interest rates and the global fiscal stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent in light volumes while Japan's Nikkei ended a few notches higher.

Shanghai blue chips climbed 0.3 per cent but Hong Kong's Hang Seng index was among the biggest losers, down more than 1 per cent as unrest in the Chinese-ruled territory continued to disrupt business and investment environment

Bearish trends gripped the stock market on Thursday as investors awaited clarification on tax proposals for foreign portfolio investors made in the Budget and remained unsure of the stimulus package despite assurances by the government.

Bearish trends gripped the stock market on Thursday as investors awaited clarification on tax proposals for foreign portfolio investors made in the Budget and remained unsure of the stimulus package despite assurances by the government. The BSE S&P Sensex closed 587 points or 1.6 per cent lower at 36,473 while the Nifty 50 was down by 181 points or 1.7 per cent to 10,738. Except for IT, all sectoral indices were in the red at the National Stock Exchange. Nifty realty slipped by 6.2 per cent, PSU banks by 3.6 per cent, metal by 3.5 per cent and auto by 1.8 per cent. Among stocks, realty major DLF plummeted 15.9 per cent to Rs 144.30 per share. Oberoi Realty slipped by 5.6 per cent to wind up at Rs 483.80 apiece. Shares of Reliance Capital plunged over 19 per cent to hit a multi-year low of Rs 33.30 per share with reports saying that it is exiting the mutual funds business. With the closure of open offer, Nippon Life Insurance's stake in Reliance Nippon Life Asset Management (RNAM) has risen to 54 per cent. Yes, Bank fell over 12 per cent intra-day at Rs 57.45 per share with worries over the valuation of its stake in Gautam Thapar's CG Power and Industrial Solutions Ltd, which has been hit by allegations of financial irregularities. The lender has 12.79 per cent stake in the company. CG Power plummeted by another 9.75 per cent to Rs 10.65 per share. LIC Housing Finance was down by nearly 11 per cent, Vedanta by 7.8 per cent, Indiabulls Housing Finance by 5.7 per cent, Bajaj Finserv by 5.5 per cent and Bajaj Finance by 4.9 per cent. However, the gainers included Britannia, Tech Mahindra, Dr. Reddy's, Hindustan Lever and Tata Consultancy Services. Meanwhile, Asian shares were flat as uncertainty continued over the outlook for US interest rates and the global fiscal stimulus. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent in light volumes while Japan's Nikkei ended a few notches higher. Shanghai blue chips climbed 0.3 per cent but Hong Kong's Hang Seng index was among the biggest losers, down more than 1 per cent as unrest in the Chinese-ruled territory continued to disrupt business and investment environment

Sensex crashes by 587 points amid heavy selling pressure, DLF plunges by 16%

&nbsp;Oil&nbsp;rose further above $60 a barrel on Thursday, supported by a drop in US crude inventories and OPEC-led supply cuts, although worries about the global economy weighed.

<a href="https://www.wionews.com/business-%26-economy/oil-prices-rise-after-us-crude-inventories-fall-154520">US crude inventories</a> fell by 2.7 million barrels last week, more than analysts expected.&nbsp;

Still, the US Energy Information Administration also said gasoline and distillate inventories rose.

Brent crude rose 46 cents to $60.76 a barrel by 1017 GMT. US West Texas Intermediate crude added 40 cents to $56.08.

Traders across the board are awaiting a speech from<a href="https://www.wionews.com/business-economy/dow-ends-above-27000-points-for-first-time-sp-500-hits-record-on-federal-reserve-rate-cut-optimism-235154"> Federal Reserve Chairman Jerome Powell </a>on Friday in Jackson Hole, Wyoming that could indicate whether the central bank will continue to cut interest rates.

"Oil&nbsp;looks in limbo at the moment," said Craig Erlam, an analyst at OANDA.&nbsp;

"It's been steadily rising over the last couple of weeks but not in any convincing way."

"A risk rally at the end of the week may get it moving again but that hangs on Powell."

The price of Brent is up by about 13 per cent this year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries, and export cuts in Iran and Venezuela which are under the US 
sanctions.

Iran on Wednesday said if its&nbsp;oil&nbsp;exports are cut to zero, international waterways would not have the same security as before, cautioning Washington against raising pressure on Tehran.

But a slowdown in economic growth amid the US-China trade dispute and Brexit has been pressuring prices and forecasters such as the International Energy Agency have been lowering forecasts for world&nbsp;oil&nbsp;demand.

US President Donald Trump on Wednesday said he was "the chosen one" to address trade imbalances with China, even as congressional researchers warned his tariffs would reduce US economic output by 0.3per cent in 2020.

The Jackson Hole speech is important for&nbsp;oil&nbsp;as signals from the Fed on monetary easing affect the US dollar. A weaker US currency tends to support&nbsp;oil&nbsp;prices, and the dollar eased on Thursday against a basket of currencies.

"The focus now is going to be on Jackson Hole, I think, to the end of the week," said Olivier Jakob,&nbsp;oil&nbsp;analyst at Petromatrix.

Oil rose further above $60 a barrel on Thursday, supported by a drop in US crude inventories and OPEC-led supply cuts, although worries about the global economy weighed.

Oil rose further above $60 a barrel on Thursday, supported by a drop in US crude inventories and OPEC-led supply cuts, although worries about the global economy weighed. US crude inventories fell by 2.7 million barrels last week, more than analysts expected. Still, the US Energy Information Administration also said gasoline and distillate inventories rose. Brent crude rose 46 cents to $60.76 a barrel by 1017 GMT. US West Texas Intermediate crude added 40 cents to $56.08. Traders across the board are awaiting a speech from Federal Reserve Chairman Jerome Powell on Friday in Jackson Hole, Wyoming that could indicate whether the central bank will continue to cut interest rates. "Oil looks in limbo at the moment," said Craig Erlam, an analyst at OANDA. "It's been steadily rising over the last couple of weeks but not in any convincing way." "A risk rally at the end of the week may get it moving again but that hangs on Powell." The price of Brent is up by about 13 per cent this year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries, and export cuts in Iran and Venezuela which are under the US sanctions. Iran on Wednesday said if its oil exports are cut to zero, international waterways would not have the same security as before, cautioning Washington against raising pressure on Tehran. But a slowdown in economic growth amid the US-China trade dispute and Brexit has been pressuring prices and forecasters such as the International Energy Agency have been lowering forecasts for world oil demand. US President Donald Trump on Wednesday said he was "the chosen one" to address trade imbalances with China, even as congressional researchers warned his tariffs would reduce US economic output by 0.3per cent in 2020. The Jackson Hole speech is important for oil as signals from the Fed on monetary easing affect the US dollar. A weaker US currency tends to support oil prices, and the dollar eased on Thursday against a basket of currencies. "The focus now is going to be on Jackson Hole, I think, to the end of the week," said Olivier Jakob, oil analyst at Petromatrix.

Oil steadies above $60 over OPEC supply cuts, global slowdown worries

<a href="https://www.wionews.com/india-news/home-minister-amit-shah-conducts-aerial-survey-of-flood-hit-belagavi-district-in-karnataka-242245">Union Home Minister Amit Shah</a> arrived here on Thursday to chair the 24th meeting of Western Zonal Council.

The two-day meeting will be held at hotel Cidade De Goa in Dona Paula.

Maharashtra Chief Minister Devendra Fadanavis, his Gujarat counterpart Vijay Rupani, Goa Chief Minister Pramod Sawant and administrators from Daman and Diu and Dadra and Nagar Haveli will attend the conclave.

Union Home Minister Amit Shah arrived here on Thursday to chair the 24th meeting of Western Zonal Council. The two-day meeting will be held at hotel Cidade De Goa in Dona Paula.

Union Home Minister Amit Shah arrived here on Thursday to chair the 24th meeting of Western Zonal Council. The two-day meeting will be held at hotel Cidade De Goa in Dona Paula. Maharashtra Chief Minister Devendra Fadanavis, his Gujarat counterpart Vijay Rupani, Goa Chief Minister Pramod Sawant and administrators from Daman and Diu and Dadra and Nagar Haveli will attend the conclave.

Amit Shah arrives in Goa for two-day Western Zonal Council meet

<div class="content" itemprop="articleBody">
Equity indices were flat during early hours on Wednesday tracking global cues but auto stocks showed some gains.

At 10:15 am, the BSE S&amp;P Sensex was up by 34 points at 37,362 while the Nifty 50 edged higher by one point to 11,018.

At the National Stock Exchange, all sectoral indices were in the red except for auto and IT. Nifty metal was down by 1.5 per cent and realty by 0.9 per cent.

Among auto stocks, Eicher Motors gained by 1.9 per cent to Rs 16,200.60 per share while Hero MotoCorp was up by 1.2 per cent, Maruti by 1.1 per cent, Mahindra &amp; Mahindra by 1 per cent and Bajaj Auto by 0.8 per cent.

The other prominent gainers were Infosys, Bajaj Finserv, Bharat Petroleum Corporation and UltraTech Cement.

But Tata Motors was down by 2.9 per cent, Yes Bank by 2.7 per cent, Hindalco by 2.4 per cent, Vedanta by 2.3 per cent and Indiabulls Housing Finance by 2.1 per cent. 
Tata Steel, Britannia, Dr Reddy's and HCL Technologies also showed marginal losses.

Meanwhile, Asian shares were mixed as worries about global recession and trade wars continued. Traders awaited the Group of Seven summit this weekend for clues on what additional steps policymakers will take to boost economic growth.

Japan's Nikkei slipped 0.4 per cent while Shanghai blue chips lost 0.1 per cent. US President Donald Trump showed no signs of backing down in his tussle with China, saying that a confrontation is necessary even if it causes short-term harm to the US economy.&nbsp;
</div>

Equity indices were flat during early hours on Wednesday tracking global cues but auto stocks showed some gains. At 10:15 am, the BSE S&P Sensex was up by 34 points at 37,362 while the Nifty 50 edged higher by one point to 11,018.

Equity indices were flat during early hours on Wednesday tracking global cues but auto stocks showed some gains. At 10:15 am, the BSE S&P Sensex was up by 34 points at 37,362 while the Nifty 50 edged higher by one point to 11,018. At the National Stock Exchange, all sectoral indices were in the red except for auto and IT. Nifty metal was down by 1.5 per cent and realty by 0.9 per cent. Among auto stocks, Eicher Motors gained by 1.9 per cent to Rs 16,200.60 per share while Hero MotoCorp was up by 1.2 per cent, Maruti by 1.1 per cent, Mahindra & Mahindra by 1 per cent and Bajaj Auto by 0.8 per cent. The other prominent gainers were Infosys, Bajaj Finserv, Bharat Petroleum Corporation and UltraTech Cement. But Tata Motors was down by 2.9 per cent, Yes Bank by 2.7 per cent, Hindalco by 2.4 per cent, Vedanta by 2.3 per cent and Indiabulls Housing Finance by 2.1 per cent. Tata Steel, Britannia, Dr Reddy's and HCL Technologies also showed marginal losses. Meanwhile, Asian shares were mixed as worries about global recession and trade wars continued. Traders awaited the Group of Seven summit this weekend for clues on what additional steps policymakers will take to boost economic growth. Japan's Nikkei slipped 0.4 per cent while Shanghai blue chips lost 0.1 per cent. US President Donald Trump showed no signs of backing down in his tussle with China, saying that a confrontation is necessary even if it causes short-term harm to the US economy.

Equities flat in lacklustre trading, metal stocks lose shine

Apple on Tuesday launched a smartphone-generation credit card in the US and moved closer to hitting the hot streaming television market with a new subscription service.

Apple on Tuesday launched a smartphone-generation credit card in the US and moved closer to hitting the hot streaming television market with a new subscription service. The moves come as Apple shifts to emphasize digital content and other services to offset a pullback in the once-sizzling smartphone market. Arrival of an Apple Card tailored particularly for iPhone fans came with reports that the technology titan is keen to launch its TV+ streaming service before Disney goes live with a rival in November. Apple TV+ will debut with a small selection of original content and a possible subscription price of $9.99, Bloomberg reported, citing people familiar with the matter. The price would be more than that charged by powerhouse players Netflix and Amazon Prime as well as the announced subscription cost of a Disney+ service to launch on November 12. California-based Apple did not immediately respond to a request for comment about TV+. Spending on shows Apple has reportedly allocated more than $6 billion for TV+ original shows, a small number of which would be available when the service goes live. Ads for "The Morning Show" starring Jennifer Aniston, Reese Witherspoon and Steve Carrell began appearing on Twitter. The show was described as "a high-stakes drama that pulls back the curtain on the morning news" coming this fall to those with Apple TV+ subscriptions. With Hollywood stars galore, Apple in March unveiled streaming video plans along with news and game subscription offerings as part of an effort to shift its focus to digital content and services to break free of its reliance on iPhone sales. The Apple TV+ service, an on-demand, ad-free subscription service, will launch this year in 100 countries, the company said at the event. "We feel we can contribute something important to our culture and to our society through great storytelling," Apple chief executive Tim Cook said when the service was announced. Apple revealed only a few of the programs in the works but announced collaborations with celebrities on both sides of the camera including Octavia Spencer, J.J. Abrams, Jason Momoa and M. Night Shyamalan. The new content will be available on an upgraded Apple TV app, which will be on smart television sets and third-party platforms including Roku and Amazon's Fire TV. Apple will also allow consumers to subscribe to third-party services like HBO and Starz from the same application. Creative Strategies analyst Carolina Milanesi expected Apple TV+ to be more of a channel at its streaming video service, similar to an HBO, than to be a "one-stop-shop" that would stand alone. Games and Cards Apple is aiming to leverage its position with some 900 million people worldwide who use at least one of its devices. The company has announced plans to launch a new game subscription service called Apple Arcade internationally later this year. "Apple Arcade will introduce an innovative way to access a collection of brand new games that will not be available on any other mobile platform or in any other subscription service," Apple said in a statement. The Apple credit card that became available on Tuesday in a partnership with Goldman Sachs was integrated with Apple Pay. Those signing up will get a physical card and one for a digital wallet, with the two companies pledging to refrain from sharing or selling data to third parties for marketing and advertising. Apple Card features that could shake up the credit card industry include not charging fees, giving users cash back on purchases, and providing tools for people to better manage their debt. "Apple Card delivers new experiences only possible with the power of iPhone," the company said in an online post. The card uses machine learning and mapping capabilities to let users keep track of spending, and provides payment options showing interest costs of various options.

Apple debuts credit card as it readies TV+ launch

Parle Products Pvt Ltd, country's leading biscuit maker, might lay off up to 10,000 workers as slowing economic growth and falling demand in the rural heartland could cause production cuts, a company executive said on Wednesday.

A downturn in Asia's third-largest economy is denting sales of everything from cars to clothing, forcing companies to curtail production and raising hopes that the government will unveil an economic stimulus to revive growth.

A sharp drop in Parle's biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai.

"The situation is so bad, that if the government doesn't intervene immediately ... we may be forced to eliminate these positions," he said.

Parle, founded in 1929, employs about 100,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants.

Shah said demand for popular Parle biscuit brands such as Parle-G had been worsening since India rolled out a nationwide goods and services tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as 5 rupees, or 7 cents a pack.

The higher taxes have forced Parle to offer fewer biscuits in each pack, hitting demand from lower-income consumers in rural India, which contributes more than half of Parle's revenue and where two-thirds of Indians live.

"Consumers here are extremely price-sensitive. They're extremely conscious of how many biscuits they are getting for a particular price," Shah said.

Parle, which has an annual revenue of above $1.4 billion, held talks over the past year with the government's GST council as well as former Finance Minister Arun Jaitley, asking them to review tax rates, Shah added.

Once known as Parle Gluco, the Mumbai-headquartered company's flagship biscuit brand was renamed as Parle-G, and became a household name in India through the 1980s and 1990s. In 2003, Parle-G was considered the world's largest selling biscuit brand.

The slowdown in India's economic growth, which has already led to thousands of job losses in its crucial automotive industry, was accelerating the drop in demand, Shah said.

Market research firm Nielsen said last month India's consumer goods industry was losing steam as spending in the rural heartland cools and small manufacturers lose competitive advantages in a slowing economy.

Parle is not the only food product company to have flagged slowing demand.

Varun Berry, managing director of Britannia Industries Ltd, Parle's main competitor, said earlier this month that consumers were "thinking twice" about buying products worth just 5 rupees.

"Obviously, there is some serious issue in the economy," Berry had said on a conference call with analysts.

Shares in Britannia were down 1.5%, as of 0620 GMT, having fallen as much as 3.9% earlier on Wednesday.

Parle Products Pvt Ltd, country's leading biscuit maker, might lay off up to 10,000 workers as slowing economic growth and falling demand in the rural heartland could cause production cuts, a company executive said on Wednesday.

Parle Products Pvt Ltd, country's leading biscuit maker, might lay off up to 10,000 workers as slowing economic growth and falling demand in the rural heartland could cause production cuts, a company executive said on Wednesday. A downturn in Asia's third-largest economy is denting sales of everything from cars to clothing, forcing companies to curtail production and raising hopes that the government will unveil an economic stimulus to revive growth. A sharp drop in Parle's biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai. "The situation is so bad, that if the government doesn't intervene immediately ... we may be forced to eliminate these positions," he said. Parle, founded in 1929, employs about 100,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants. Shah said demand for popular Parle biscuit brands such as Parle-G had been worsening since India rolled out a nationwide goods and services tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as 5 rupees, or 7 cents a pack. The higher taxes have forced Parle to offer fewer biscuits in each pack, hitting demand from lower-income consumers in rural India, which contributes more than half of Parle's revenue and where two-thirds of Indians live. "Consumers here are extremely price-sensitive. They're extremely conscious of how many biscuits they are getting for a particular price," Shah said. Parle, which has an annual revenue of above $1.4 billion, held talks over the past year with the government's GST council as well as former Finance Minister Arun Jaitley, asking them to review tax rates, Shah added. Once known as Parle Gluco, the Mumbai-headquartered company's flagship biscuit brand was renamed as Parle-G, and became a household name in India through the 1980s and 1990s. In 2003, Parle-G was considered the world's largest selling biscuit brand. The slowdown in India's economic growth, which has already led to thousands of job losses in its crucial automotive industry, was accelerating the drop in demand, Shah said. Market research firm Nielsen said last month India's consumer goods industry was losing steam as spending in the rural heartland cools and small manufacturers lose competitive advantages in a slowing economy. Parle is not the only food product company to have flagged slowing demand. Varun Berry, managing director of Britannia Industries Ltd, Parle's main competitor, said earlier this month that consumers were "thinking twice" about buying products worth just 5 rupees. "Obviously, there is some serious issue in the economy," Berry had said on a conference call with analysts. Shares in Britannia were down 1.5%, as of 0620 GMT, having fallen as much as 3.9% earlier on Wednesday.

Parle may cut up to 10,000 jobs as slowdown bites

Fixing India's weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates although transmission remains inadequate, monetary policy committee meeting minutes showed.

The Reserve Bank of India (RBI) lowered its benchmark interest rates for a fourth straight meeting this month with a slightly bigger than expected cut, underscoring its worries about the near-five year low economic growth pace.

The six-member monetary policy committee (MPC) cut the repo rate by an unconventional 35 basis points (bps) to 5.40 per cent.

"Given the current and evolving inflation and growth scenario at this juncture, it can no longer be business as usual approach. The economy needs a larger push," Governor Shaktikanta Das said in the minutes, released on Wednesday.

Annual retail inflation in July was 3.15 per cent, down from an eight-month high of 3.18 per cent in June and staying below the central bank's 4 per&nbsp;medium-term target for a 12th straight month, raising expectations for a cut in October.

Last week, a Reuters poll predicted the RBI would ease its benchmark rate by 25 basis points again to 5.15 per cent&nbsp;at its October meeting, followed by a 15 basis point cut in the first quarter of 2020.

Since February, the RBI has cut the repo rate by a total 110 basis points (bps), but most Indian banks have not come close to the following suit.

"Under prevailing circumstances, the immediate transmission should be considered not so much in terms of the bank deposit and lending rates but more specific rates influencing new investments such as housing loans, vehicle loans and long term bonds," said one MPC member, Ravindra Dholakia.

Most members of the committee, however, felt rate transmission would be faster in the coming weeks and months aided by surplus liquidity in the banking system.

The RBI is also looking to get banks to link some new loans to its key policy rate or other external benchmarks, Das said on Monday, as he pushes them to cut rates faster to stimulate growth.

"While they are giving stylised arguments to justify their recommendations, none of them has made a clear statement on the outlook or possible timelines for recovery," said Rupa Rege Nitsure, chief economist at L&amp;T Financial Holdings.

"A lot depends on how promptly fiscal authorities undertake remedial measures."

Finance Minister Nirmala Sitharaman has recently held several meetings with industry leaders, who have called for stimulus measures, including tax rebates, to support consumer demand and private investment.

Pami Dua, another member of the MPC, said while monetary policy can impact cyclical factors, it has its limits when the slowdown is structural in nature.

"Therefore, investment-focused fiscal policy and the active continuation of structural reforms are imperative at this juncture," Dua said.

The government was looking into policy issues such as exempting foreign portfolio investor trusts from recently imposed high tax, deferring a proposal to raise minimum public shareholding in listed companies to 35 per cent from 25 per cent and easing of banking credit, a source told Reuters on Friday.

"Given the evolving growth-inflation risk picture, monetary policy should be used judiciously," member Chetan Ghate said.

Fixing India's weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates although transmission remains inadequate, monetary policy committee meeting minutes showed.

Fixing India's weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates although transmission remains inadequate, monetary policy committee meeting minutes showed. The Reserve Bank of India (RBI) lowered its benchmark interest rates for a fourth straight meeting this month with a slightly bigger than expected cut, underscoring its worries about the near-five year low economic growth pace. The six-member monetary policy committee (MPC) cut the repo rate by an unconventional 35 basis points (bps) to 5.40 per cent. "Given the current and evolving inflation and growth scenario at this juncture, it can no longer be business as usual approach. The economy needs a larger push," Governor Shaktikanta Das said in the minutes, released on Wednesday. Annual retail inflation in July was 3.15 per cent, down from an eight-month high of 3.18 per cent in June and staying below the central bank's 4 per medium-term target for a 12th straight month, raising expectations for a cut in October. Last week, a Reuters poll predicted the RBI would ease its benchmark rate by 25 basis points again to 5.15 per cent at its October meeting, followed by a 15 basis point cut in the first quarter of 2020. Since February, the RBI has cut the repo rate by a total 110 basis points (bps), but most Indian banks have not come close to the following suit. "Under prevailing circumstances, the immediate transmission should be considered not so much in terms of the bank deposit and lending rates but more specific rates influencing new investments such as housing loans, vehicle loans and long term bonds," said one MPC member, Ravindra Dholakia. Most members of the committee, however, felt rate transmission would be faster in the coming weeks and months aided by surplus liquidity in the banking system. The RBI is also looking to get banks to link some new loans to its key policy rate or other external benchmarks, Das said on Monday, as he pushes them to cut rates faster to stimulate growth. "While they are giving stylised arguments to justify their recommendations, none of them has made a clear statement on the outlook or possible timelines for recovery," said Rupa Rege Nitsure, chief economist at L&T Financial Holdings. "A lot depends on how promptly fiscal authorities undertake remedial measures." Finance Minister Nirmala Sitharaman has recently held several meetings with industry leaders, who have called for stimulus measures, including tax rebates, to support consumer demand and private investment. Pami Dua, another member of the MPC, said while monetary policy can impact cyclical factors, it has its limits when the slowdown is structural in nature. "Therefore, investment-focused fiscal policy and the active continuation of structural reforms are imperative at this juncture," Dua said. The government was looking into policy issues such as exempting foreign portfolio investor trusts from recently imposed high tax, deferring a proposal to raise minimum public shareholding in listed companies to 35 per cent from 25 per cent and easing of banking credit, a source told Reuters on Friday. "Given the evolving growth-inflation risk picture, monetary policy should be used judiciously," member Chetan Ghate said.

Fixing weak growth is highest priority: RBI policy minutes

Indian shares closed sharply lower on Wednesday, led by declines in metals and banking stocks, as worries over a global recession and an escalating US-China trade war weighed on investor sentiment.

The broader NSE Nifty closed down 0.89 per cent at 10,919.45, while the benchmark BSE Sensex ended 0.72 per cent&nbsp;lower at 37,060.37.

The Nifty metals index ended down 2.89 per cent after hitting its lowest since December 2016, while the Nifty PSU banks index, which tracks state-owned banks, fell by 2.95 per cent with all 12 constituents in the red.

Shares in leading automaker Tata Motors Ltd fell 9.6 per cent after hitting a near 10-year low, as traders reportedly fretted over the company`s businesses in China following dismal results from Chinese auto group Geely Automobile.&nbsp;

Indian shares closed sharply lower on Wednesday, led by declines in metals and banking stocks, as worries over a global recession and an escalating US-China trade war weighed on investor sentiment.

Indian shares closed sharply lower on Wednesday, led by declines in metals and banking stocks, as worries over a global recession and an escalating US-China trade war weighed on investor sentiment. The broader NSE Nifty closed down 0.89 per cent at 10,919.45, while the benchmark BSE Sensex ended 0.72 per cent lower at 37,060.37. The Nifty metals index ended down 2.89 per cent after hitting its lowest since December 2016, while the Nifty PSU banks index, which tracks state-owned banks, fell by 2.95 per cent with all 12 constituents in the red. Shares in leading automaker Tata Motors Ltd fell 9.6 per cent after hitting a near 10-year low, as traders reportedly fretted over the company`s businesses in China following dismal results from Chinese auto group Geely Automobile.

Nifty, Sensex fall sharply; Tata Motors hits decade low

In a bid to enhance passenger convenience, SpiceJet is set to transfer its entire operation to terminal two of Mumbai's Chhatrapati Shivaji Maharaj International Airport from October 1, this year, the airline said on Tuesday.

"A single terminal operation would not just help the airline substantially cut down its costs, but provide our passengers with a seamless and smooth travel experience as they transit between domestic and international flights at one of the country's busiest airports," stated SpiceJet in an official statement.

The transition is being planned and implemented by the airline with the active support of Mumbai International Airport Limited (MIAL).&nbsp; 
&nbsp;

In a bid to enhance passenger convenience, SpiceJet is set to transfer its entire operation to terminal two of Mumbai's Chhatrapati Shivaji Maharaj International Airport from October 1, this year, the airline said on Tuesday.

In a bid to enhance passenger convenience, SpiceJet is set to transfer its entire operation to terminal two of Mumbai's Chhatrapati Shivaji Maharaj International Airport from October 1, this year, the airline said on Tuesday. "A single terminal operation would not just help the airline substantially cut down its costs, but provide our passengers with a seamless and smooth travel experience as they transit between domestic and international flights at one of the country's busiest airports," stated SpiceJet in an official statement. The transition is being planned and implemented by the airline with the active support of Mumbai International Airport Limited (MIAL).

SpiceJet to shift entire operation to terminal 2 of Mumbai airport

Equity indices were volatile during early hours on Tuesday with most sectoral indices in the red.

At 10:15 am, the BSE S&amp;P Sensex was down by 144 points at 37,259 while the Nifty 50 edged lower by 58 points to 10,995.

At the National Stock Exchange, most sectoral indices were in the negative territory with Nifty PSU banks down by 1.2 per cent and private banks by 0.5 per cent. However, Nifty IT was up by 1.4 per cent.

Among stocks, Yes Bank was lower by 4.4 per cent to trade at Rs 73.30 per share. A day earlier, it had closed 3.3 per cent down to Rs 76.80 per share.

Indiabulls Housing Finance too slipped over 3 per cent lower while Britannia lost by 1.6 per cent. UltraTech Cement and Coal India lost by 1.5 per cent each.

However, IT stocks showed some gains with Infosys up by 2 per cent, Tata Consultancy Services by 1.5 per cent and Tech Mahindra by 1.2 per cent.

Pharma major Dr Reddy's was up by 1.4 per cent while Hero MotoCorp too was in the positive territory despite a countrywide slowdown in the auto sector.

Meanwhile, Asian shares were mixed with investors hoping for more stimulus in major economies to avert a global recession.

The Shanghai Composite slipped 0.1 per cent and Hong Kong's Hang Seng Index dropped 0.3 per cent. But Japan's Nikkei traded 0.4 per cent higher and South Korea's KOSPI also gained 0.4 per cent.

Equity indices were volatile during early hours on Tuesday with most sectoral indices in the red. At 10:15 am, the BSE S&P Sensex was down by 144 points at 37,259 while the Nifty 50 edged lower by 58 points to 10,995.

Equity indices were volatile during early hours on Tuesday with most sectoral indices in the red. At 10:15 am, the BSE S&P Sensex was down by 144 points at 37,259 while the Nifty 50 edged lower by 58 points to 10,995. At the National Stock Exchange, most sectoral indices were in the negative territory with Nifty PSU banks down by 1.2 per cent and private banks by 0.5 per cent. However, Nifty IT was up by 1.4 per cent. Among stocks, Yes Bank was lower by 4.4 per cent to trade at Rs 73.30 per share. A day earlier, it had closed 3.3 per cent down to Rs 76.80 per share. Indiabulls Housing Finance too slipped over 3 per cent lower while Britannia lost by 1.6 per cent. UltraTech Cement and Coal India lost by 1.5 per cent each. However, IT stocks showed some gains with Infosys up by 2 per cent, Tata Consultancy Services by 1.5 per cent and Tech Mahindra by 1.2 per cent. Pharma major Dr Reddy's was up by 1.4 per cent while Hero MotoCorp too was in the positive territory despite a countrywide slowdown in the auto sector. Meanwhile, Asian shares were mixed with investors hoping for more stimulus in major economies to avert a global recession. The Shanghai Composite slipped 0.1 per cent and Hong Kong's Hang Seng Index dropped 0.3 per cent. But Japan's Nikkei traded 0.4 per cent higher and South Korea's KOSPI also gained 0.4 per cent.

Sensex slips over 100 points, Nifty below 11,000

Most Asian markets rose Tuesday on the back of hopes for central bank and government stimulus measures around the world, while investors were also cheered by further signs of easing tensions in the China-US trade war.

Trading floors around the world have been tense for several weeks owing to concerns about a number of factors including the trade war, Brexit, a global economic slowdown and tensions in the Middle East.

However, while markets remain on edge, equities have enjoyed a positive start to the week, with Germany reportedly planning government support to avert a recession in Europe's biggest economy and central banks elsewhere looking to ease monetary policy.

Among the key events this week is a speech by Federal Reserve boss Jerome Powell at the annual Jackson Hole symposium of central bankers in Wyoming.

His remarks will be pored over to see if he hints at another interest rate cut following last month's move, and if so how deep it will be. However, some analysts have pointed out that while the US economy is showing signs of slowing, it remains healthy and Powell could decide no new help is needed just yet.

The Fed policy board "did not unanimously agree to the last 0.25 per cent cut," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA. "US economic data continues to perform blissfully, implying the economy is doing just fine.

"Against that backdrop, I struggle to see why... Powell would hit the panic button at Jackson Hole this week. The financial markets could be setting themselves up for an ugly correction into the week's end."

Huawei hope tempered

Still, for now the mood is positive and by lunch Tokyo was up 0.4 per cent, while Shanghai was slightly higher and Hong Kong was flat, weighed by profit-taking after four days of gains.

Sydney gained 0.6 per cent, Singapore, Seoul and Taipei each put on 0.3 per cent and Wellington rose 0.6 per cent. Manila and Jakarta were both down.

The White House's decision to delay again by 90 days a ban on US firms doing business with Huawei was taken as a conciliatory move towards China and provided hope.

The announcement followed comments from Donald Trump and key advisers expressing optimism over the talks, with top-level negotiations between the economic titans lined up for next month.

The news was tempered, however, by the Commerce Department adding 46 companies to its list of Huawei subsidiaries and affiliates that would be covered by the ban if it is implemented in full, taking the total on the list to more than 100.

The "details don't necessarily suggest the US is making too many concessions on the China trade negotiations", said Rodrigo Catril, senior forex strategist at National Australia Bank.

Oil prices were flat, holding Monday's strong gains -- when Brent jumped 1.9 per cent and WTI 2.4 per cent -- on hopes for the trade talks and stimulus and following a strike by Yemeni rebels on a Saudi Arabian oil field at the weekend.

Most Asian markets rose Tuesday on the back of hopes for central bank and government stimulus measures around the world, while investors were also cheered by further signs of easing tensions in the China-US trade war.

Most Asian markets rose Tuesday on the back of hopes for central bank and government stimulus measures around the world, while investors were also cheered by further signs of easing tensions in the China-US trade war. Trading floors around the world have been tense for several weeks owing to concerns about a number of factors including the trade war, Brexit, a global economic slowdown and tensions in the Middle East. However, while markets remain on edge, equities have enjoyed a positive start to the week, with Germany reportedly planning government support to avert a recession in Europe's biggest economy and central banks elsewhere looking to ease monetary policy. Among the key events this week is a speech by Federal Reserve boss Jerome Powell at the annual Jackson Hole symposium of central bankers in Wyoming. His remarks will be pored over to see if he hints at another interest rate cut following last month's move, and if so how deep it will be. However, some analysts have pointed out that while the US economy is showing signs of slowing, it remains healthy and Powell could decide no new help is needed just yet. The Fed policy board "did not unanimously agree to the last 0.25 per cent cut," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA. "US economic data continues to perform blissfully, implying the economy is doing just fine. "Against that backdrop, I struggle to see why... Powell would hit the panic button at Jackson Hole this week. The financial markets could be setting themselves up for an ugly correction into the week's end." Huawei hope tempered Still, for now the mood is positive and by lunch Tokyo was up 0.4 per cent, while Shanghai was slightly higher and Hong Kong was flat, weighed by profit-taking after four days of gains. Sydney gained 0.6 per cent, Singapore, Seoul and Taipei each put on 0.3 per cent and Wellington rose 0.6 per cent. Manila and Jakarta were both down. The White House's decision to delay again by 90 days a ban on US firms doing business with Huawei was taken as a conciliatory move towards China and provided hope. The announcement followed comments from Donald Trump and key advisers expressing optimism over the talks, with top-level negotiations between the economic titans lined up for next month. The news was tempered, however, by the Commerce Department adding 46 companies to its list of Huawei subsidiaries and affiliates that would be covered by the ban if it is implemented in full, taking the total on the list to more than 100. The "details don't necessarily suggest the US is making too many concessions on the China trade negotiations", said Rodrigo Catril, senior forex strategist at National Australia Bank. Oil prices were flat, holding Monday's strong gains -- when Brent jumped 1.9 per cent and WTI 2.4 per cent -- on hopes for the trade talks and stimulus and following a strike by Yemeni rebels on a Saudi Arabian oil field at the weekend.

Asian markets mostly rise on optimism for trade, stimulus

Indian shares settled lower on Tuesday, led by a fall in financial and consumer stocks with Yes Bank Ltd closing at its lowest in over six years.

The broader NSE Nifty closed 0.33 per cent lower at 11,017, while the benchmark BSE Sensex finished down 0.2 per cent at 37,328.01.

The Nifty PSU index finished the day 2.35 per cent lower, with State Bank of India settling down over 1 per cent.

Among consumer stocks, Britannia Industries Ltd lost 3.24 per cent to its lowest since February 2018, while ITC Ltd settled 1.87 per cent lower.

IT stocks held onto gains and closed 1.2 per cent higher as the rupee weakened to its lowest since February.

Indian shares settled lower on Tuesday, led by a fall in financial and consumer stocks with Yes Bank Ltd closing at its lowest in over six years. The broader NSE Nifty closed 0.

Indian shares settled lower on Tuesday, led by a fall in financial and consumer stocks with Yes Bank Ltd closing at its lowest in over six years. The broader NSE Nifty closed 0.33 per cent lower at 11,017, while the benchmark BSE Sensex finished down 0.2 per cent at 37,328.01. The Nifty PSU index finished the day 2.35 per cent lower, with State Bank of India settling down over 1 per cent. Among consumer stocks, Britannia Industries Ltd lost 3.24 per cent to its lowest since February 2018, while ITC Ltd settled 1.87 per cent lower. IT stocks held onto gains and closed 1.2 per cent higher as the rupee weakened to its lowest since February.

Nifty, Sensex end lower; financials, consumer stocks weigh

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL.

While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years.

The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth.

Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent.

Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent&nbsp;benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones.

Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey.

For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth.

The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent.

Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers.

Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others.&nbsp;

The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019.&nbsp;

Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments.

Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&amp;FS default and the NBFC crisis has not helped matters.

The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener.

Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-are-the-rate-cuts-enough-to-boost-growth-2782948">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL. While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years. The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth. Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent. Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones. Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey. For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth. The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent. Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers. Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others. The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019. Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments. Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&FS default and the NBFC crisis has not helped matters. The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener. Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Oil rises more than 1% after a drone attack on Saudi field

Domestic equity benchmark BSE Sensex up by 200 points in early trade on Monday.

The 30-share index was trading 37,577.11 at 9:20am.

Similarly, the broader NSE Nifty above 11,000.

Among stocks, Bharti Infratel was the top gainer and moved up by 3.2 per cent to trade at Rs 257.30 per share. Sun Pharma was up by 2.8 per cent, Indiabulls Housing Finance by 2.7 per cent, Dr Reddy by 2.2 per cent and Cipla by 1.5 per cent.

But Yes Bank slipped by 2 per cent and Grasim by 1.2 per cent. ONGC, Tata Steel and GAIL too showed marginal losses.

Last week on Friday, Sensex and Nifty ended a tick higher, powered by gains in banking stocks, but finished lower for the week with trading dominated by headlines about the Us-China trade conflict and fears of an imminent global recession.

Meanwhile, Asian stock markets tracked the Wall Street`s Friday rally on hopes of more stimulus from central banks around the world to prevent a global recession.

(With input from ANI)

Domestic equity benchmark BSE Sensex up by 200 points in early trade on Monday. The 30-share index was trading 37,577.11 at 9:20am. Similarly, the broader NSE Nifty above 11,000.

Domestic equity benchmark BSE Sensex up by 200 points in early trade on Monday. The 30-share index was trading 37,577.11 at 9:20am. Similarly, the broader NSE Nifty above 11,000. Among stocks, Bharti Infratel was the top gainer and moved up by 3.2 per cent to trade at Rs 257.30 per share. Sun Pharma was up by 2.8 per cent, Indiabulls Housing Finance by 2.7 per cent, Dr Reddy by 2.2 per cent and Cipla by 1.5 per cent. But Yes Bank slipped by 2 per cent and Grasim by 1.2 per cent. ONGC, Tata Steel and GAIL too showed marginal losses. Last week on Friday, Sensex and Nifty ended a tick higher, powered by gains in banking stocks, but finished lower for the week with trading dominated by headlines about the Us-China trade conflict and fears of an imminent global recession. Meanwhile, Asian stock markets tracked the Wall Street`s Friday rally on hopes of more stimulus from central banks around the world to prevent a global recession. (With input from ANI)

Sensex up by 200 points in early trade, Nifty over 11,000

Cathay Pacific shares were choppy in opening trade on Monday after the shock exit of CEO Rupert Hogg, as the airline grapples with mounting Chinese scrutiny over the involvement of some of its staff in anti-government protests in Hong Kong.

Shares rose more than 2% in early trade and later fell by nearly as much, with analysts cautioning that while Hogg's resignation, announced on Friday, appeared necessary to placate Beijing, the Hong Kong airline faced a setback to its three-year financial turnaround plan as a result.

Cathay has emerged as the highest-profile corporate target as Beijing looks to quell protests that have gone on for 11 straight weeks in the Chinese-controlled territory.

The airline has appointed Augustus Tang, a former Cathay executive who had been running an aircraft engineering business for parent Swire Pacific Ltd, as its new chief executive as it attempts to salvage relations with Beijing.

The Chinese regulator had demanded it suspend staff supporting anti-government protests.

Tang's priority should be rebuilding the brand and restoring customer confidence in all markets, including Hong Kong, the mainland and overseas after the Chinese regulatory action and recent disruptions at Hong Kong airport, CAPA Centre for Aviation Chief Analyst Brendan Sobie said.

"Work related to completion of the three-year restructuring may take a back seat for a few months but will be revisited once things stabilise," he said.

Cathay swung to its first profit for the January-June period since 2016 on the back of a transformation plan led by Hogg and forecast it would post higher earnings in the seasonally better second half.

"Management's priority now, I suspect, would be how to curb further interference from the CAAC - an almost impossible task," said Shukor Yusof, the head of consultancy Endau Analytics, referring to the Civil Aviation Administration of China.

"The transformation will be on the back burner for the time being, given that Augustus Tang isn't someone the market is familiar with."

Morningstar analyst Ivan Su said he believed Cathay had done enough to prevent it from being cut off from Chinese airspace, but possibly not enough to placate all Chinese travellers.

"The carrier will likely see weaker demand if travellers boycott Cathay over the short term," he said.

Endau's Yusof said in the longer term, 30% shareholder Air China could buy the remainder of Cathay, but there was no urgency because the Hong Kong carrier was in a state of flux.

"That will only occur when the political climate is right."

Cathay Pacific shares were choppy in opening trade on Monday after the shock exit of CEO Rupert Hogg, as the airline grapples with mounting Chinese scrutiny over the involvement of some of its staff in anti-government protests in Hong Kong.

Cathay Pacific shares were choppy in opening trade on Monday after the shock exit of CEO Rupert Hogg, as the airline grapples with mounting Chinese scrutiny over the involvement of some of its staff in anti-government protests in Hong Kong. Shares rose more than 2% in early trade and later fell by nearly as much, with analysts cautioning that while Hogg's resignation, announced on Friday, appeared necessary to placate Beijing, the Hong Kong airline faced a setback to its three-year financial turnaround plan as a result. Cathay has emerged as the highest-profile corporate target as Beijing looks to quell protests that have gone on for 11 straight weeks in the Chinese-controlled territory. The airline has appointed Augustus Tang, a former Cathay executive who had been running an aircraft engineering business for parent Swire Pacific Ltd, as its new chief executive as it attempts to salvage relations with Beijing. The Chinese regulator had demanded it suspend staff supporting anti-government protests. Tang's priority should be rebuilding the brand and restoring customer confidence in all markets, including Hong Kong, the mainland and overseas after the Chinese regulatory action and recent disruptions at Hong Kong airport, CAPA Centre for Aviation Chief Analyst Brendan Sobie said. "Work related to completion of the three-year restructuring may take a back seat for a few months but will be revisited once things stabilise," he said. Cathay swung to its first profit for the January-June period since 2016 on the back of a transformation plan led by Hogg and forecast it would post higher earnings in the seasonally better second half. "Management's priority now, I suspect, would be how to curb further interference from the CAAC - an almost impossible task," said Shukor Yusof, the head of consultancy Endau Analytics, referring to the Civil Aviation Administration of China. "The transformation will be on the back burner for the time being, given that Augustus Tang isn't someone the market is familiar with." Morningstar analyst Ivan Su said he believed Cathay had done enough to prevent it from being cut off from Chinese airspace, but possibly not enough to placate all Chinese travellers. "The carrier will likely see weaker demand if travellers boycott Cathay over the short term," he said. Endau's Yusof said in the longer term, 30% shareholder Air China could buy the remainder of Cathay, but there was no urgency because the Hong Kong carrier was in a state of flux. "That will only occur when the political climate is right."

Cathay Pacific shares in choppy trade after shock exit of CEO Rupert Hogg

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies.

The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States.

That move helped Chinese stocks lead regional gains on Monday amid a broadly more upbeat investor mood. Hopes major economies will seek to prop up slowing growth with fresh stimulus have helped ease some of the recessionary fears unleashed in markets last week.

"The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," wrote Zhaopeng Xing and Raymond Yeung, economists at ANZ.

"However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices."

In China, the Shanghai Composite Index rose 1.5%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%.

Over recent weeks, recession worries - triggered by an inversion in the US bond yield curve - have led to a shakeout in financial markets. That has driven speculation of more support from policy makers, including from the US Federal Reserve which last month cut rates for the first time since the financial crisis.

Australian stocks added 0.9%, South Korea's KOSPI advanced 0.7% and Japan's Nikkei rose 0.7%.

Wall Street shares had rebounded on Friday after a report that Germany's coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession.

The yen, a gauge of risk sentiment due to its perceived status as a safe haven, weakened for its third successive session.

The Japanese currency last traded at 106.375 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina's markets triggered a fresh bout of anxiety in markets already shaken by the US-China trade war.

"Sentiment in the markets appeared headed for a one-way rout, but policy hopes following reports of the German stimulus have helped halt the steady deterioration," said Ayako Sera, senior market strategist at Sumitomo Mitsui Trust.

"As for steps by China, it needs to be understood that the latest measures are geared towards markets which are already regulated extensively. But China's latest move should nevertheless provide the market with relief."

Elsewhere in currencies, the dollar index against a basket of six major currencies hovered near a two-week high of 98.339 climbed on Friday. The index was supported as US Treasury yields bounced back from recent lows in the wake of German stimulus hopes.

The 10-year US Treasury yield stood at 1.582%, having pulled away from a three-year trough of 1.475% marked last week in the wake of global slowdown fears.

Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus.

"This week's main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell's speech," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

"What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do," Ishikawa said.

Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September has topped 80%.

The euro was steady at $1.1092 while the Australian dollar was effectively flat at $0.6780.

Brent crude oil futures gained 1% to $59.22 per barrel, following in the tracks of improved equity markets, with an ebb in recession concerns curbing fears of weak global demand for commodities.

The longer-term outlook for the crude market remained sombre, however, with OPEC on Friday providing a bearish outlook for oil for the rest of 2019.

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies.

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies. The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States. That move helped Chinese stocks lead regional gains on Monday amid a broadly more upbeat investor mood. Hopes major economies will seek to prop up slowing growth with fresh stimulus have helped ease some of the recessionary fears unleashed in markets last week. "The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," wrote Zhaopeng Xing and Raymond Yeung, economists at ANZ. "However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices." In China, the Shanghai Composite Index rose 1.5%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%. Over recent weeks, recession worries - triggered by an inversion in the US bond yield curve - have led to a shakeout in financial markets. That has driven speculation of more support from policy makers, including from the US Federal Reserve which last month cut rates for the first time since the financial crisis. Australian stocks added 0.9%, South Korea's KOSPI advanced 0.7% and Japan's Nikkei rose 0.7%. Wall Street shares had rebounded on Friday after a report that Germany's coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession. The yen, a gauge of risk sentiment due to its perceived status as a safe haven, weakened for its third successive session. The Japanese currency last traded at 106.375 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina's markets triggered a fresh bout of anxiety in markets already shaken by the US-China trade war. "Sentiment in the markets appeared headed for a one-way rout, but policy hopes following reports of the German stimulus have helped halt the steady deterioration," said Ayako Sera, senior market strategist at Sumitomo Mitsui Trust. "As for steps by China, it needs to be understood that the latest measures are geared towards markets which are already regulated extensively. But China's latest move should nevertheless provide the market with relief." Elsewhere in currencies, the dollar index against a basket of six major currencies hovered near a two-week high of 98.339 climbed on Friday. The index was supported as US Treasury yields bounced back from recent lows in the wake of German stimulus hopes. The 10-year US Treasury yield stood at 1.582%, having pulled away from a three-year trough of 1.475% marked last week in the wake of global slowdown fears. Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus. "This week's main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell's speech," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming. "What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do," Ishikawa said. Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September has topped 80%. The euro was steady at $1.1092 while the Australian dollar was effectively flat at $0.6780. Brent crude oil futures gained 1% to $59.22 per barrel, following in the tracks of improved equity markets, with an ebb in recession concerns curbing fears of weak global demand for commodities. The longer-term outlook for the crude market remained sombre, however, with OPEC on Friday providing a bearish outlook for oil for the rest of 2019.

Asia stocks gain as China rates tweak lifts investor mood

A majority of <a href="https://www.wionews.com/world/white-house-says-no-recession-in-sight-pushes-china-trade-talks-243949">economists</a> expect a <a href="https://www.wionews.com/world/global-stocks-routed-oil-sinks-as-bond-markets-flash-recession-warning-243073">US recession</a> in the next two years but have pushed back the onset amid <a href="https://www.wionews.com/world/recession-could-hit-us-in-less-than-a-year-if-china-trade-war-worsens-survey-223893">Federal Reserve actions</a>, according to a survey released Monday.&nbsp;

The National Association for Business Economists&nbsp;found far fewer experts now think the next recession will start this year compared to a survey in February.

NABE conducted its policy poll as President Donald Trump put the Fed under constant attack, demanding more stimulus, but before the central bank cut the benchmark lending rate on July 31.&nbsp;

However, the Fed was already sending strong signals that it intended to pull back on the rate increases made in 2018 due to concerns starting to dog the economic outlook, including the trade war with China.

"Survey respondents indicate that the expansion will be extended by the shift in monetary policy," said NABE President Constance Hunter, who is chief economist at KPMG.

Only two per cent of the 226 respondents now see a recession this year, compared to 10 per cent in February's survey, NABE said.

However, "the panel is split regarding whether the downturn will hit in 2020 or 2021, Hunter said in a summary of the survey, which showed 38 per cent expect a contraction of growth next year,&nbsp;while 34 per cent doesn't see it until the following year.&nbsp;

More economists shifted their recession prediction to 2021, narrowing the gap from the prior report, which had many more expecting the change next year.

The results show 46 per cent expect at least one more rate cut this year from the Fed, while about a third see policy holding where it is now, with 2.25 per cent as the top end of the policy range.

Economists are skeptical about a resolution to Trump's trade wars, although 64 per cent said a "superficial agreement is possible," NABE said.

But that was before Trump announced another round of tariffs of 10 per cent on the remaining $300 billion in goods not yet hit by US punitive duties. The new measures will take effect in two stages, on September 1 and December 15.

As Trump continues his vocal campaign criticizing the Fed, the NABE survey found economists are concerned about the impact: 55 per cent said his remarks do not influence Fed decisions but do "compromise the public's trust in the central bank."&nbsp;

And over a quarter of respondents said the criticism will "cause the Fed to be more dovish than otherwise, thus threatening its independence."

The survey also asked about fiscal policy, and a majority of economists said Trump's tax cuts "had an overall negative impact on housing activity over the past 18 months," due to changes in deductions allowed for mortgage interest.

A majority of economists expect a US recession in the next two years but have pushed back the onset amid Federal Reserve actions, according to a survey released Monday.

A majority of economists expect a US recession in the next two years but have pushed back the onset amid Federal Reserve actions, according to a survey released Monday. The National Association for Business Economists found far fewer experts now think the next recession will start this year compared to a survey in February. NABE conducted its policy poll as President Donald Trump put the Fed under constant attack, demanding more stimulus, but before the central bank cut the benchmark lending rate on July 31. However, the Fed was already sending strong signals that it intended to pull back on the rate increases made in 2018 due to concerns starting to dog the economic outlook, including the trade war with China. "Survey respondents indicate that the expansion will be extended by the shift in monetary policy," said NABE President Constance Hunter, who is chief economist at KPMG. Only two per cent of the 226 respondents now see a recession this year, compared to 10 per cent in February's survey, NABE said. However, "the panel is split regarding whether the downturn will hit in 2020 or 2021, Hunter said in a summary of the survey, which showed 38 per cent expect a contraction of growth next year, while 34 per cent doesn't see it until the following year. More economists shifted their recession prediction to 2021, narrowing the gap from the prior report, which had many more expecting the change next year. The results show 46 per cent expect at least one more rate cut this year from the Fed, while about a third see policy holding where it is now, with 2.25 per cent as the top end of the policy range. Economists are skeptical about a resolution to Trump's trade wars, although 64 per cent said a "superficial agreement is possible," NABE said. But that was before Trump announced another round of tariffs of 10 per cent on the remaining $300 billion in goods not yet hit by US punitive duties. The new measures will take effect in two stages, on September 1 and December 15. As Trump continues his vocal campaign criticizing the Fed, the NABE survey found economists are concerned about the impact: 55 per cent said his remarks do not influence Fed decisions but do "compromise the public's trust in the central bank." And over a quarter of respondents said the criticism will "cause the Fed to be more dovish than otherwise, thus threatening its independence." The survey also asked about fiscal policy, and a majority of economists said Trump's tax cuts "had an overall negative impact on housing activity over the past 18 months," due to changes in deductions allowed for mortgage interest.

United States economists expect a recession in 2020 or 2021: Survey

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, <a href="https://www.wionews.com/india-news/global-economy-seems-to-be-moving-into-new-unsettling-phase-rbi-governor-shaktikanta-das-238764">Governor Shaktikanta Das</a> said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy.

Since February, the RBI has cut the repo rate by 110 basis points (bps), but most Indian banks - which rely on an opaque rate-setting mechanism, have not come close to the following suit.

The State Bank of India (SBI), the largest lender by assets, has cut its benchmark lending rate by 30 bps.

Commercial banks cite high deposit rates for their inability to cut loan ones.&nbsp;

Marginal reductions restrict how much borrowers benefit from the repo cuts.

"Today, the economy requires a certain amount of push not just from the monetary policy but also from its transmission," Das said. "I think the time has now come to formalise this linking of new loans to external benchmarks like the repo rate."

"We'd kept the external benchmarks in abeyance earlier because we wanted to see how the market evolves," the governor told a banking conference in Mumbai.

SBI, the largest lender by assets, earlier this year linked its savings bank deposits and short-term loans to the repo rate, becoming the first Indian bank to do so.

"I expect more initiatives and this process to become faster," Das said, adding that the RBI has been in talks with banks ensure "faster and greater" adjustment of rates.

Das also said the central bank was in talks with non-bank housing finance companies (NBFCs) to ensure that none collapse amid a debt crisis in the sector that has contributed to a broader economic slowdown.

The RBI is closely monitoring the 50 biggest NBFCs and housing finance companies, including their capital adequacy, stability and cash flows, Das said.

The collapse of Infrastructure Leasing &amp; Financial Services (IL&amp;FS) late last year created contagion fears that hit many other Indian NBFCs and dented credit growth, which has severely stung the auto and real estate sectors.

However, Das said there was no proposal at the moment for any asset quality review for NBFCs. 
&nbsp;

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy.

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy. Since February, the RBI has cut the repo rate by 110 basis points (bps), but most Indian banks - which rely on an opaque rate-setting mechanism, have not come close to the following suit. The State Bank of India (SBI), the largest lender by assets, has cut its benchmark lending rate by 30 bps. Commercial banks cite high deposit rates for their inability to cut loan ones. Marginal reductions restrict how much borrowers benefit from the repo cuts. "Today, the economy requires a certain amount of push not just from the monetary policy but also from its transmission," Das said. "I think the time has now come to formalise this linking of new loans to external benchmarks like the repo rate." "We'd kept the external benchmarks in abeyance earlier because we wanted to see how the market evolves," the governor told a banking conference in Mumbai. SBI, the largest lender by assets, earlier this year linked its savings bank deposits and short-term loans to the repo rate, becoming the first Indian bank to do so. "I expect more initiatives and this process to become faster," Das said, adding that the RBI has been in talks with banks ensure "faster and greater" adjustment of rates. Das also said the central bank was in talks with non-bank housing finance companies (NBFCs) to ensure that none collapse amid a debt crisis in the sector that has contributed to a broader economic slowdown. The RBI is closely monitoring the 50 biggest NBFCs and housing finance companies, including their capital adequacy, stability and cash flows, Das said. The collapse of Infrastructure Leasing & Financial Services (IL&FS) late last year created contagion fears that hit many other Indian NBFCs and dented credit growth, which has severely stung the auto and real estate sectors. However, Das said there was no proposal at the moment for any asset quality review for NBFCs.

Reserve Bank of India weighs linking some new bank loans to the policy rate

A committee of experts headed by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan on Monday submitted its report on replacing the Income Tax Act with a new Direct Tax Code.

In November last year, the Finance Ministry had appointed Ranjan, Member (Legislation) at CBDT, as convenor of the task force which included Girish Ahuja (a chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mukesh Patel (practicing tax advocate), Mansi Kedia (Consultant at ICRIER) and G C Srivastava (retired Indian Revenue Service and advocate).

The task force was scheduled to submit its report by May 31 but the then Finance Minister Arun Jaitley gave it a two-month extension.

Later the government allowed the task force to submit its report by August 16 as the new members requested for more time to provide further inputs.

The task force was assigned to draft direct tax laws incorporating international best practices and keeping in mind the economic needs of the country.

A committee of experts headed by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan on Monday submitted its report on replacing the Income Tax Act with a new Direct Tax Code.

A committee of experts headed by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan on Monday submitted its report on replacing the Income Tax Act with a new Direct Tax Code. In November last year, the Finance Ministry had appointed Ranjan, Member (Legislation) at CBDT, as convenor of the task force which included Girish Ahuja (a chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mukesh Patel (practicing tax advocate), Mansi Kedia (Consultant at ICRIER) and G C Srivastava (retired Indian Revenue Service and advocate). The task force was scheduled to submit its report by May 31 but the then Finance Minister Arun Jaitley gave it a two-month extension. Later the government allowed the task force to submit its report by August 16 as the new members requested for more time to provide further inputs. The task force was assigned to draft direct tax laws incorporating international best practices and keeping in mind the economic needs of the country.

Committee submits report on replacing I-T Act with Direct Tax Code

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the <a href="https://www.wionews.com/business-economy/global-markets-yen-and-bond-bulls-charge-on-as-share-markets-falter-242412">euro zone's biggest economy is now in a recession</a>.

German growth contracted in the second quarter on slumping exports as a global trade war, China's slowdown and Brexit uncertainty sapped confidence, dealing a blow to an export-focused economy.

"Overall economic performance could again decline slightly," the Bundesbank said in a monthly report.

"The main reason for this is the continuing downturn in the industry," the central bank said, pointing to a significant decline in orders and a big drop in sentiment indicators for manufacturing firms.

While domestic consumption continues to isolate the economy, the jobs market is already showing signs of weakness and confidence in the services sector is also dropping, the Bundesbank added.

Still, the construction boom is likely to continue, providing some support.

While Germany has so far rejected the idea of boosting public spending to offset the slowdown, Finance Minister Olaf Scholz said that Berlin has the financial strength to counter any future economic crisis "with full force".

Speaking on Sunday, Scholz said the global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros and the government could again muster such a sum, if necessary.

Obsessed with running a balanced budget, Germany has produced surpluses for years, ignoring calls for more spending to boost growth.

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the euro zone's biggest economy is now in a recession.

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the euro zone's biggest economy is now in a recession. German growth contracted in the second quarter on slumping exports as a global trade war, China's slowdown and Brexit uncertainty sapped confidence, dealing a blow to an export-focused economy. "Overall economic performance could again decline slightly," the Bundesbank said in a monthly report. "The main reason for this is the continuing downturn in the industry," the central bank said, pointing to a significant decline in orders and a big drop in sentiment indicators for manufacturing firms. While domestic consumption continues to isolate the economy, the jobs market is already showing signs of weakness and confidence in the services sector is also dropping, the Bundesbank added. Still, the construction boom is likely to continue, providing some support. While Germany has so far rejected the idea of boosting public spending to offset the slowdown, Finance Minister Olaf Scholz said that Berlin has the financial strength to counter any future economic crisis "with full force". Speaking on Sunday, Scholz said the global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros and the government could again muster such a sum, if necessary. Obsessed with running a balanced budget, Germany has produced surpluses for years, ignoring calls for more spending to boost growth.

German economy could continue to shrink: Bundesbank