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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

President Donald Trump said on Sunday that he had spoken with Apple Inc's Chief Executive Tim Cook about the impact of US tariffs on Chinese imports as well as competition from South Korean company Samsung Electronics Co Ltd.

Trump said Cook "made a good case" that tariffs could hurt Apple, given that Samsung`s products would not be subject to those same tariffs.&nbsp;

Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on September 1 and December 15.

By contrast, the United States and South Korea struck a trade agreement last September.

"I thought he made a very compelling argument, so I`m thinking about it," Trump said of Cook, speaking with reporters at a New Jersey airport.

US stock futures rose upon opening on Sunday after Trump's comments.&nbsp;

In addition to his comments on Apple, Trump said on Twitter earlier in the day that his administration was "doing very well with China."

Apple's MacBook laptops and iPhones would not face the additional tariffs until December 15, but some of the company's other products, including its AirPods, Apple Watch and HomePod, would be subject to the levies on September 1.

Apple was not immediately available for comment outside normal business hours.

President Donald Trump said on Sunday that he had spoken with Apple Inc's Chief Executive Tim Cook about the impact of US tariffs on Chinese imports as well as competition from South Korean company Samsung Electronics Co Ltd.

President Donald Trump said on Sunday that he had spoken with Apple Inc's Chief Executive Tim Cook about the impact of US tariffs on Chinese imports as well as competition from South Korean company Samsung Electronics Co Ltd. Trump said Cook "made a good case" that tariffs could hurt Apple, given that Samsung`s products would not be subject to those same tariffs. Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on September 1 and December 15. By contrast, the United States and South Korea struck a trade agreement last September. "I thought he made a very compelling argument, so I`m thinking about it," Trump said of Cook, speaking with reporters at a New Jersey airport. US stock futures rose upon opening on Sunday after Trump's comments. In addition to his comments on Apple, Trump said on Twitter earlier in the day that his administration was "doing very well with China." Apple's MacBook laptops and iPhones would not face the additional tariffs until December 15, but some of the company's other products, including its AirPods, Apple Watch and HomePod, would be subject to the levies on September 1. Apple was not immediately available for comment outside normal business hours.

Apple CEO warns Trump about China tariffs, Samsung competition

<a href="https://www.wionews.com/world/united-kingdom-economy-shrinks-as-brexit-global-worries-mount-purchasing-managers-index-232725">Bank of England governor Mark Carney</a> has withdrawn from a high-profile business event with China's ambassador to London, sources said Monday, as pro-democracy protests continue in Hong Kong.

Carney had been due to speak at the dinner, aimed at boosting Chinese business links, which is scheduled for September 3 at the Guildhall, the administrative centre of the City of London financial district.

However he will not now attend because of "diary issues", a source close to the matter told AFP.

Some local politicians are reportedly unhappy at the timing of the event, as <a href="https://www.wionews.com/world/hong-kong-police-fire-tear-gas-during-another-weekend-of-protests-242034">Hong Kong police continue to clash with democracy activists</a>.

"The City must use this event to remind China of its responsibilities on human rights, democracy and free speech in Hong Kong," City Councillor Richard Crossan told Monday's edition of London's free daily financial newspaper City AM.

"As the situation in Hong Kong develops, the City must also remember that it is not just a financial services lobbying group.

"It has moral responsibilities, whether it wants them or not."

Another source suggested that a BoE representative could be sent in Carney's place.

Carney had been due to attend alongside China's ambassador to London, Liu Xiaoming, and Catherine McGuinness, who is policy chief for the City of London Corporation.

Both the Bank of England and the City of London Corporation declined to comment.

Bank of England governor Mark Carney has withdrawn from a high-profile business event with China's ambassador to London, sources said Monday, as pro-democracy protests continue in Hong Kong.

Bank of England governor Mark Carney has withdrawn from a high-profile business event with China's ambassador to London, sources said Monday, as pro-democracy protests continue in Hong Kong. Carney had been due to speak at the dinner, aimed at boosting Chinese business links, which is scheduled for September 3 at the Guildhall, the administrative centre of the City of London financial district. However he will not now attend because of "diary issues", a source close to the matter told AFP. Some local politicians are reportedly unhappy at the timing of the event, as Hong Kong police continue to clash with democracy activists. "The City must use this event to remind China of its responsibilities on human rights, democracy and free speech in Hong Kong," City Councillor Richard Crossan told Monday's edition of London's free daily financial newspaper City AM. "As the situation in Hong Kong develops, the City must also remember that it is not just a financial services lobbying group. "It has moral responsibilities, whether it wants them or not." Another source suggested that a BoE representative could be sent in Carney's place. Carney had been due to attend alongside China's ambassador to London, Liu Xiaoming, and Catherine McGuinness, who is policy chief for the City of London Corporation. Both the Bank of England and the City of London Corporation declined to comment.

Bank of England chief pulls out of Chinese event

Equity benchmark indices ended in the green on Monday but last hour selling pressure erased all intra-day gains.

The <a href="https://www.wionews.com/business-economy/sensex-up-by-200-points-in-early-trade-nifty-over-11000-243977">BSE S&amp;P Sensex</a> closed 52 points higher at 37,402 while the Nifty 50 was up by six points to 11,054.

At the National Stock Exchange, sectoral indices were mixed with IT, media, pharma, private banks, and realty in the positive zone.

Among stocks, Sun Pharma was the top gainer with a margin of 2.7 per cent at Rs 426 per share while Tech Mahindra was up by 2.2 per cent.

The other prominent gainers were Axis Bank, Bharti Infratel, Titan, Hindalco, Wipro, ICICI Bank, and Reliance Industries.

However, Yes Bank was down by 3.3 per cent and closed at Rs 76.80 per share. Grasim, Indiabulls Housing Finance, GAIL, and Coal India lost between 1.5 and 1.6 per cent each.

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.

In China, the Shanghai Composite Index rose 2.1 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 1 per cent.

South Korea's KOSPI advanced 0.6 per cent and Japan's Nikkei rose 0.7 per cent.

The Hang Seng index rose by 2.27 per cent as Hong Kong geared up for more anti-government protests later this week.&nbsp; 
&nbsp;

Equity benchmark indices ended in the green on Monday but last hour selling pressure erased all intra-day gains. The BSE S&P Sensex closed 52 points higher at 37,402 while the Nifty 50 was up by six points to 11,054.

Equity benchmark indices ended in the green on Monday but last hour selling pressure erased all intra-day gains. The BSE S&P Sensex closed 52 points higher at 37,402 while the Nifty 50 was up by six points to 11,054. At the National Stock Exchange, sectoral indices were mixed with IT, media, pharma, private banks, and realty in the positive zone. Among stocks, Sun Pharma was the top gainer with a margin of 2.7 per cent at Rs 426 per share while Tech Mahindra was up by 2.2 per cent. The other prominent gainers were Axis Bank, Bharti Infratel, Titan, Hindalco, Wipro, ICICI Bank, and Reliance Industries. However, Yes Bank was down by 3.3 per cent and closed at Rs 76.80 per share. Grasim, Indiabulls Housing Finance, GAIL, and Coal India lost between 1.5 and 1.6 per cent each. 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. In China, the Shanghai Composite Index rose 2.1 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 1 per cent. South Korea's KOSPI advanced 0.6 per cent and Japan's Nikkei rose 0.7 per cent. The Hang Seng index rose by 2.27 per cent as Hong Kong geared up for more anti-government protests later this week.

Equity indices ends in the green; BSE Sensex closes 52 points higher

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth.

But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape."

"There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving."

His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk.

US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates.

The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession.

Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth.

Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China.

The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night.

Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States.

"We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week."

For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth.

Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here."

The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact.

But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China.

A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments.

Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint."

The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession.

Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks.

Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility.

“I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press."

Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China.

"There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States. Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth. But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape." "There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving." His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk. US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates. The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession. Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth. Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China. The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night. Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States. "We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week." For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth. Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here." The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact. But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China. A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments. Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint." The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession. Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks. Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility. “I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press." Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China. "There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.

White House says no recession in sight, pushes China trade talks

<a href="https://www.wionews.com/business-economy/kuwait-to-tap-foreign-debt-markets-to-finance-deficit-1708">The Kuwait Investment Authority</a> (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources.

The report provided rare insight into the strategy of one of the world's biggest sovereign wealth funds, though it did not give a breakdown of KIA's investments in various asset classes.&nbsp;

KIA, in which the Sovereign Wealth Fund Institute estimates manage $592 billion of assets, does not publicly disclose its investments or detailed strategy.

The newspaper report said KIA made "calculated exits" from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago.

The International Monetary Fund (IMF) in July cut its forecast for global growth this year and next, warning that further tariffs in the US-China trade dispute or a disorderly British exit from the European Union could slow growth further, weaken investment and disrupt supply chains.

The IMF said that downside risks had intensified and it expected global economic growth of 3.2 per cent&nbsp;in 2019 and 3.5 per cent&nbsp;in 2020, both down by 0.1 percentage points from its April forecast and its fourth downgrade since October.

Despite recent volatility in equity markets, KIA has achieved a 10 per cent&nbsp;return on its investments in US stock markets since the beginning of this year, the report said.

KIA officials were not immediately available to comment.

Kuwaiti news agency KUNA reported in late 2017 that KIA had more than $300 billion of investments in the United States, diversified among stocks, bonds, real estate, and technology.

The fund's investments are spread across more than 120 economies globally.&nbsp; 
&nbsp;

The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources.

The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources. The report provided rare insight into the strategy of one of the world's biggest sovereign wealth funds, though it did not give a breakdown of KIA's investments in various asset classes. KIA, in which the Sovereign Wealth Fund Institute estimates manage $592 billion of assets, does not publicly disclose its investments or detailed strategy. The newspaper report said KIA made "calculated exits" from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago. The International Monetary Fund (IMF) in July cut its forecast for global growth this year and next, warning that further tariffs in the US-China trade dispute or a disorderly British exit from the European Union could slow growth further, weaken investment and disrupt supply chains. The IMF said that downside risks had intensified and it expected global economic growth of 3.2 per cent in 2019 and 3.5 per cent in 2020, both down by 0.1 percentage points from its April forecast and its fourth downgrade since October. Despite recent volatility in equity markets, KIA has achieved a 10 per cent return on its investments in US stock markets since the beginning of this year, the report said. KIA officials were not immediately available to comment. Kuwaiti news agency KUNA reported in late 2017 that KIA had more than $300 billion of investments in the United States, diversified among stocks, bonds, real estate, and technology. The fund's investments are spread across more than 120 economies globally.

Kuwait sovereign fund in portfolio shift on signs of global economic weakness: Report

Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche`s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.

Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent.&nbsp;

Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger.&nbsp;

Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month.

Elkann visited Pebble Beach during the annual Concours d`Elegance, during which wealthy collectors bring some of the world's rarest vintage automobiles to be admired and sold and premium manufacturers showcase exotic new models.

Ferrari is best known for flashy, high-performance sports cars.

Among fans of vintage<a href="https://www.wionews.com/sports/sebastian-vettel-still-has-what-it-takes-at-ferrari-says-mark-webber-230801"> Ferraris</a>, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events.

&nbsp;GT cars were designed to be comfortable on long road trips.&nbsp;

Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40 per cent of its total sales could come from GT cars by 2022, up from 32 per cent now.&nbsp;

Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017.

The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus.

Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. 
&nbsp; 
Elkann said Ferrari is not aiming for Porsche`s level of sales.&nbsp;

Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche`s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.

Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche`s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast. Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent. Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger. Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month. Elkann visited Pebble Beach during the annual Concours d`Elegance, during which wealthy collectors bring some of the world's rarest vintage automobiles to be admired and sold and premium manufacturers showcase exotic new models. Ferrari is best known for flashy, high-performance sports cars. Among fans of vintage Ferraris, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events. GT cars were designed to be comfortable on long road trips. Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40 per cent of its total sales could come from GT cars by 2022, up from 32 per cent now. Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017. The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus. Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. Elkann said Ferrari is not aiming for Porsche`s level of sales.

Ferrari will expand its lineup of road cars, but not too much

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country.

Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan'&nbsp;here, Gadkari said,&nbsp;"There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector."

"We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said.

The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities."

He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.&nbsp;

 
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Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country.

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector." "We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said. The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities." He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.

MSMEs will play important role in job creation: Nitin Gadkari

Mahindra &amp; Mahindra Ltd on Saturday expanded its global footprint with the inauguration of a local automotive assembly plant at Welipenna near Colombo in Sri Lanka.

Christened Mahindra Ideal Lanka Pvt Ltd, the assembly plant has been set up in collaboration with Ideal Motors of Sri Lanka.

The plant spread across 10 acres rolled out its first product, the compact sport utility vehicle KUV100, and will roll out a slew of products over the next three years.

The knock-down kit (CKD) assembly plant was inaugurated in the presence of Sri Lankan Prime Minister Ranil Wickremesinghe, his Cabinet Minister Malik Samarawickrama, Indian High Commissioner to Sri Lanka Taranjit Singh Sandhu, M&amp;M Managing Director Pawan Goenka, M&amp;M Chief of International Operations Arvind Mathew and others.

"Inauguration of this automotive assembly plant is a significant milestone for Mahindra's foray into the Sri Lanka market," said Goenka.

"Sri Lanka is a key strategic market for us and we are now fully equipped to deliver products customised to local needs on time. This new assembly plant will not only add to industrial growth in the country but will also generate significant employment opportunities at our plant and at supplier's end," he said in a statement.

Mahindra Ideal Lanka will assemble KUV100 with a production capacity of 5,000 units per year. The joint venture company will localise four components -- batteries, tyres, seats and exhausts.

The plant is expected to provide employment to 200 people directly and indirectly over the next two years.

Mahindra & Mahindra Ltd on Saturday expanded its global footprint with the inauguration of a local automotive assembly plant at Welipenna near Colombo in Sri Lanka.

Mahindra & Mahindra Ltd on Saturday expanded its global footprint with the inauguration of a local automotive assembly plant at Welipenna near Colombo in Sri Lanka. Christened Mahindra Ideal Lanka Pvt Ltd, the assembly plant has been set up in collaboration with Ideal Motors of Sri Lanka. The plant spread across 10 acres rolled out its first product, the compact sport utility vehicle KUV100, and will roll out a slew of products over the next three years. The knock-down kit (CKD) assembly plant was inaugurated in the presence of Sri Lankan Prime Minister Ranil Wickremesinghe, his Cabinet Minister Malik Samarawickrama, Indian High Commissioner to Sri Lanka Taranjit Singh Sandhu, M&M Managing Director Pawan Goenka, M&M Chief of International Operations Arvind Mathew and others. "Inauguration of this automotive assembly plant is a significant milestone for Mahindra's foray into the Sri Lanka market," said Goenka. "Sri Lanka is a key strategic market for us and we are now fully equipped to deliver products customised to local needs on time. This new assembly plant will not only add to industrial growth in the country but will also generate significant employment opportunities at our plant and at supplier's end," he said in a statement. Mahindra Ideal Lanka will assemble KUV100 with a production capacity of 5,000 units per year. The joint venture company will localise four components -- batteries, tyres, seats and exhausts. The plant is expected to provide employment to 200 people directly and indirectly over the next two years.

Mahindra inaugurates first automotive assembly plant in Sri Lanka

China's central bank unveiled a key interest rate reform on Saturday to help steer borrowing costs lower for companies and support a slowing economy that has been hurt by a trade war with the United States.

China's central bank unveiled a key interest rate reform on Saturday to help steer borrowing costs lower for companies and support a slowing economy that has been hurt by a trade war with the United States. The People's Bank of China (PBOC) said it will improve the mechanism used to establish the loan prime rate (LPR) from this month, in a move to further lower real interest rates for companies as part of broader market reforms. Analysts say the move, which came after data that showed weaker than expected growth in July and followed a cabinet announcement on Friday, underscores the government's attempts to use reforms to support a slowing economy. "By reforming and improving the formation mechanism of LPR, we will be able to use market-based reform methods to help lower real lending rates," the PBOC said in a statement published on its website. The central bank will "deepen market-based interest rate reform, improve the efficiency of interest rate transmission, and lower financing costs of the real economy," it said. Chinese banks' new LPR quotations will be based on rates of open market operations, and the national interbank funding centre will be authorised to publish the rate from August 20, the PBOC said. It added the rate will be published every month on the 20th, effective this month. Banks must set rates on new loans by mainly referring to the LPR and use LPR as the benchmark for setting floating lending rates, the PBOC said, adding that banks will be barred from setting any implicit floor on lending rates in a coordinated way. The central bank said five-year and longer tenors will be added to the existing one-year LPR, which will help banks set rates on long-term loans such as mortgages. China will add eight small banks, including two foreign-funded banks, to the existing 10 nation-wide banks that will be allowed to submit LPR quotations, the central bank said. The move followed pledges from China's State Council on Friday that the country will rely on market-based reform measures to help lower real interest rates for companies. The central bank said that it will strengthen its supervision on banks' rate quotations and punish banks for irregularities that disrupt the market order. The central bank will incorporate the LPR application into its macro-prudential assessment (MPA) to urge banks to use LPR pricing. SHARPER SLOWDOWN This week's data broadly showed China's economy stumbled more sharply than expected at the start of the third quarter, as the intensifying trade war with the United States took a heavier toll on businesses and consumers. Second-quarter economic growth slowed to a near 30-year low. Tang Jianwei, an economist at Bank of Communications in Shanghai, said the reform could be seen as a guided rate cut as PBOC can guide rates of its open market operations, which will be closely followed by the LPR. "The tool (LPR quotation reform) equals to a guided rate cut, and is only pushed out by the PBOC at crucial moments," said Dai Zhifeng, an analyst with Zhongtai Securities Co. The central bank has pledged to gradually unify two interest rate "tracks" - its market-based rates developed in recent years and its benchmark bank deposit and lending rates. Analysts say the new LPR rate will be lower than the current level, but they are divided over the scope of reductions on borrowing costs for firms. To free up funds for lending and to accommodate local government project financing, most analysts still expect the central bank will cut banks' reserve requirement ratios (RRR) further in the coming months, on top of six reductions since early 2018. Sources have told Reuters that more aggressive action such as interest rate cuts are a last resort, as it could fuel a sharper build-up in debt. In July, central bank head Yi Gang said China would keep its benchmark deposit rate for a relatively long time but would phase out its benchmark lending rate in the push to unify the benchmark lending rate and market-based rates. China's banks currently price their loans based on the benchmark lending rate that has been kept unchanged since October 2015, hampering the central bank's efforts to lower borrowing costs. The PBOC launched the LPR in 2013 to reflect rates that banks charge their best clients. But the LPR has been reacting little to market demand and supply, with the one-year rate currently at 4.31 per cent, versus benchmark one-year lending rate of 4.35 per cent. China's short-term money market rates have been falling more quickly in recent months due to the central bank's cash injections.

China unveils rate reform to steer funding costs lower for firms