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The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report.

"India's economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the International Monetary Fund (IMF) said in its World Economic Update.

Similarly, the global growth forecast for FY20 has been cut down by 0.1 per cent points to 3.2. This is the fourth consecutive time that the global growth forecast has been lowered.

Among the factors cited by the report for the lower growth forecast includes increased trade and technology tensions between the United States and China, prolonged uncertainty on Brexit, and weaker-than-expected activity in emerging market and developing economies.

"Among emerging market and developing economies, the first-quarter GDP in China was stronger than forecast, but indicators for the second quarter suggest a weakening of activity. Elsewhere in emerging Asia, as well as in Latin America, activity has disappointed," the report read.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report. "India's economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the International Monetary Fund (IMF) said in its World Economic Update. Similarly, the global growth forecast for FY20 has been cut down by 0.1 per cent points to 3.2. This is the fourth consecutive time that the global growth forecast has been lowered. Among the factors cited by the report for the lower growth forecast includes increased trade and technology tensions between the United States and China, prolonged uncertainty on Brexit, and weaker-than-expected activity in emerging market and developing economies. "Among emerging market and developing economies, the first-quarter GDP in China was stronger than forecast, but indicators for the second quarter suggest a weakening of activity. Elsewhere in emerging Asia, as well as in Latin America, activity has disappointed," the report read.

International Monetary Fund cuts India's GDP growth forecast to 7% for fiscal year 2019-20

Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite US&nbsp;technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter.

The United States has put Huawei on an export blacklist citing national security issues, barring US&nbsp;suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

Huawei's revenue growth of 30% in the first half is a slowdown from 39% in the first three months of 2019 but is up sharply from 2018. It has so far managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment,&nbsp;Bloomberg said.

The company is said to have rewarded a number of employees for helping it accelerate revenue despite US&nbsp;ban, Bloomberg added.

Huawei declined to comment on the Bloomberg report.

Huawei last month cut revenue expectations for the year, with its founder and CEO Ren Zhengfei saying the company had taken a harder-than-expected hit from the US ban.

The firm has denied its products pose a security threat.

Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite US technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter.

Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite US technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter. The United States has put Huawei on an export blacklist citing national security issues, barring US suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval. Huawei's revenue growth of 30% in the first half is a slowdown from 39% in the first three months of 2019 but is up sharply from 2018. It has so far managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment, Bloomberg said. The company is said to have rewarded a number of employees for helping it accelerate revenue despite US ban, Bloomberg added. Huawei declined to comment on the Bloomberg report. Huawei last month cut revenue expectations for the year, with its founder and CEO Ren Zhengfei saying the company had taken a harder-than-expected hit from the US ban. The firm has denied its products pose a security threat.

Huawei first-half revenue up about 30% despite US ban

Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook.

Iran's capture of a British oil tanker late last week sparked concern about supply disruptions in the Strait of Hormuz, through which about a fifth of the world's supply flows. Crude rose more than 1% on Monday.

On Tuesday, Brent crude fell 40 cents to $62.86 a barrel by 1052 GMT. US&nbsp;West Texas Intermediate crude slipped 20 cents to $56.02.

"The response of oil prices to the seizure of a British oil tanker by armed Iranian forces near the Strait of Hormuz has been amazingly muted so far," said Carsten Fritsch, an analyst at Commerzbank.

"It appears that the majority of market participants are convinced that there will be no open conflict between the West and Iran."

The tensions come as the United States aims to cut off Iran's oil exports and against the backdrop of supply cuts led by the Organization of the Petroleum Exporting Countries since the start of the year to prop up prices.

As part of that plan, the United States has sanctioned Chinese state-run energy company Zhuhai Zhenrong Co Ltd for allegedly violating restrictions imposed on Iran's oil sector.

But due to strong growth in supply from the United States and other non-OPEC producers, oil supply is exceeding demand, according to the International

A weaker outlook for oil demand due to slowing economic growth has weighed on prices, which are still up by 18% in 2019 helped by the OPEC-led Energy Agency, despite lower Iranian exports and OPEC's voluntary supply curbs supply pact.

"Although prices had been driven by supply developments in the first half of the year economic considerations are making oil bulls careful this month," said Tamas Varga of oil broker PVM.

Goldman Sachs on Sunday lowered its 2019 oil demand projection, joining other forecasters such as the IEA and OPEC in trimming its outlook for fuel use.

Oil may gain further support from expectations of another drop in US&nbsp;crude inventories in weekly reports due later on Tuesday and on Wednesday. Analysts expect a 3.4 million-barrel drop in crude stocks.

The American Petroleum Institute, an industry group, releases its inventory report at 2030 GMT.

Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook.

Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook. Iran's capture of a British oil tanker late last week sparked concern about supply disruptions in the Strait of Hormuz, through which about a fifth of the world's supply flows. Crude rose more than 1% on Monday. On Tuesday, Brent crude fell 40 cents to $62.86 a barrel by 1052 GMT. US West Texas Intermediate crude slipped 20 cents to $56.02. "The response of oil prices to the seizure of a British oil tanker by armed Iranian forces near the Strait of Hormuz has been amazingly muted so far," said Carsten Fritsch, an analyst at Commerzbank. "It appears that the majority of market participants are convinced that there will be no open conflict between the West and Iran." The tensions come as the United States aims to cut off Iran's oil exports and against the backdrop of supply cuts led by the Organization of the Petroleum Exporting Countries since the start of the year to prop up prices. As part of that plan, the United States has sanctioned Chinese state-run energy company Zhuhai Zhenrong Co Ltd for allegedly violating restrictions imposed on Iran's oil sector. But due to strong growth in supply from the United States and other non-OPEC producers, oil supply is exceeding demand, according to the International A weaker outlook for oil demand due to slowing economic growth has weighed on prices, which are still up by 18% in 2019 helped by the OPEC-led Energy Agency, despite lower Iranian exports and OPEC's voluntary supply curbs supply pact. "Although prices had been driven by supply developments in the first half of the year economic considerations are making oil bulls careful this month," said Tamas Varga of oil broker PVM. Goldman Sachs on Sunday lowered its 2019 oil demand projection, joining other forecasters such as the IEA and OPEC in trimming its outlook for fuel use. Oil may gain further support from expectations of another drop in US crude inventories in weekly reports due later on Tuesday and on Wednesday. Analysts expect a 3.4 million-barrel drop in crude stocks. The American Petroleum Institute, an industry group, releases its inventory report at 2030 GMT.

Oil slips to around $63 as Iran concerns fades for now

Indian shares settled lower for a fourth straight session on Tuesday, weighed down by losses in financial stocks, with State Bank of India closing at an over one-month low.

The broader NSE Nifty ended 0.13% lower at 11,331.05, while the benchmark BSE Sensex closed down 0.13% at 37,982.74. Both closed at their lowest since mid-May.

State Bank of India dropped 2.5% and was the biggest percentage loser on both the indexes. The Nifty PSU Bank index fell 3.1%.

HDFC Bank Ltd, the country's biggest lender by market value, slipped 1.5% while its largest shareholder Housing Development Finance Corporation Ltd fell 2.2%.

Power Grid Corporation of India Ltd was the top gainer, closing 3.1% higher.

Indian shares settled lower for a fourth straight session on Tuesday, weighed down by losses in financial stocks, with State Bank of India closing at an over one-month low.

Indian shares settled lower for a fourth straight session on Tuesday, weighed down by losses in financial stocks, with State Bank of India closing at an over one-month low. The broader NSE Nifty ended 0.13% lower at 11,331.05, while the benchmark BSE Sensex closed down 0.13% at 37,982.74. Both closed at their lowest since mid-May. State Bank of India dropped 2.5% and was the biggest percentage loser on both the indexes. The Nifty PSU Bank index fell 3.1%. HDFC Bank Ltd, the country's biggest lender by market value, slipped 1.5% while its largest shareholder Housing Development Finance Corporation Ltd fell 2.2%. Power Grid Corporation of India Ltd was the top gainer, closing 3.1% higher.

Sensex, Nifty close lowest since mid-May, financials hurt most

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut.

All 25 components on the Shanghai Stock Exchange's Sci-Tech Innovation Board, or STAR Market, were driven sharply higher in a hearty initial endorsement of China's plan to use the board to help fund fast-growing tech firms and discourage them listing abroad.

Anji Technology, a solar energy battery manufacturer, closed morning trade up 415.44 per cent at 202 yuan after earlier soaring as high as 520 per cent.

The board's biggest component, China Railway Signal &amp; Communication, rose 125.64 per cent to 13.20 yuan on market-leading turnover of 7.6 billion yuan ($1.1 billion).

The introduction of the board, for which listing and trading rules have been dramatically eased, represents one of China's most significant financial market reforms yet and a potential weapon in its growing tech rivalry with the United States.

The tech board is yet to draw any household names.

But China hopes it will eventually include listings from among the country's rich stable of tech "unicorns" start-ups valued at a minimum $1 billion which include Alibaba-linked mobile-payments pioneer Ant Financial, ride-sharing giant Didi Chuxing, and online-services platform Meituan-Dianping.

China's government envisions the board being mentioned in the same breath someday as the tech-heavy Nasdaq, encouraging firms to list at home after the likes of Alibaba and Baidu chose Wall Street.

That will take time the Nasdaq has more than 3,000 companies listed and is one of the world's biggest exchanges.

"I think the science and technology board will develop into a major and important sector in China's capital markets, but it will take a long time, maybe 10 years, 20 years, or even longer," said Jiang Liangqing, a fund manager at Ruisen Capital Management.

Leap of faith

It is a leap of faith for China's volatility-averse authorities, as its stocks have been given relatively free rein.

For the first time, Chinese companies can list without a track record of past profits or restrictions on IPO pricing.

There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed.

China's two main exchanges in Shanghai and Shenzhen are subject to a 10 per cent band to contain volatility.

With attention on the new exchange, those markets languished Monday. Shanghai's main index was 0.57 per cent lower at midday while Shenzhen's was down 0.87 per cent.&nbsp;

The tech board was announced in November by President Xi Jinping as a battle with the United States for technological supremacy heated up.

Xi has called on China's tech leaders to become global champions, while the US has fought back in part by taking steps to clip the wings of Chinese telecom giant Huawei.

When big tech companies list overseas, the government in Beijing loses influence over their fundraising and Chinese investors cannot share in those companies' success due to restrictions on purchasing overseas-listed shares.

China realised it needed to loosen up.

"If China didn’t launch this new tech board now, it would miss the chance to transform its economic development into this 'new economy' mode," said Yang Delong, chief economist at First Seafront Fund.

But there are concerns that the new board could siphon liquidity from China's main markets, already pressured by slowing economic growth and the US trade war.

As a result, analysts believe regulators will take a measured pace in growing the tech board.

"The (main) markets are in a downturn now and if giant companies list on the tech board initially, market capital will be diverted. The market cannot bear that," said Yang.

"The new board won't drain too much from the main boards."

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut.

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut. All 25 components on the Shanghai Stock Exchange's Sci-Tech Innovation Board, or STAR Market, were driven sharply higher in a hearty initial endorsement of China's plan to use the board to help fund fast-growing tech firms and discourage them listing abroad. Anji Technology, a solar energy battery manufacturer, closed morning trade up 415.44 per cent at 202 yuan after earlier soaring as high as 520 per cent. The board's biggest component, China Railway Signal & Communication, rose 125.64 per cent to 13.20 yuan on market-leading turnover of 7.6 billion yuan ($1.1 billion). The introduction of the board, for which listing and trading rules have been dramatically eased, represents one of China's most significant financial market reforms yet and a potential weapon in its growing tech rivalry with the United States. The tech board is yet to draw any household names. But China hopes it will eventually include listings from among the country's rich stable of tech "unicorns" start-ups valued at a minimum $1 billion which include Alibaba-linked mobile-payments pioneer Ant Financial, ride-sharing giant Didi Chuxing, and online-services platform Meituan-Dianping. China's government envisions the board being mentioned in the same breath someday as the tech-heavy Nasdaq, encouraging firms to list at home after the likes of Alibaba and Baidu chose Wall Street. That will take time the Nasdaq has more than 3,000 companies listed and is one of the world's biggest exchanges. "I think the science and technology board will develop into a major and important sector in China's capital markets, but it will take a long time, maybe 10 years, 20 years, or even longer," said Jiang Liangqing, a fund manager at Ruisen Capital Management. Leap of faith It is a leap of faith for China's volatility-averse authorities, as its stocks have been given relatively free rein. For the first time, Chinese companies can list without a track record of past profits or restrictions on IPO pricing. There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed. China's two main exchanges in Shanghai and Shenzhen are subject to a 10 per cent band to contain volatility. With attention on the new exchange, those markets languished Monday. Shanghai's main index was 0.57 per cent lower at midday while Shenzhen's was down 0.87 per cent. The tech board was announced in November by President Xi Jinping as a battle with the United States for technological supremacy heated up. Xi has called on China's tech leaders to become global champions, while the US has fought back in part by taking steps to clip the wings of Chinese telecom giant Huawei. When big tech companies list overseas, the government in Beijing loses influence over their fundraising and Chinese investors cannot share in those companies' success due to restrictions on purchasing overseas-listed shares. China realised it needed to loosen up. "If China didn’t launch this new tech board now, it would miss the chance to transform its economic development into this 'new economy' mode," said Yang Delong, chief economist at First Seafront Fund. But there are concerns that the new board could siphon liquidity from China's main markets, already pressured by slowing economic growth and the US trade war. As a result, analysts believe regulators will take a measured pace in growing the tech board. "The (main) markets are in a downturn now and if giant companies list on the tech board initially, market capital will be diverted. The market cannot bear that," said Yang. "The new board won't drain too much from the main boards."

Shares blast off as 'China's Nasdaq' debuts

Most <a href="https://www.wionews.com/business-economy/asian-markets-surge-on-trump-xi-breakthrough-oil-rallies-231893">Asian markets</a> fell in early trade Monday on dimming hopes for a deep interest rate cut by the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">Federal Reserve</a>, but all the firms on a new tech-focused board in China rallied on its opening day.

Oil prices extended last week's gains after Iran seized a British tanker in the Gulf, fuelling fresh concerns about supplies and possible conflict in the tinderbox Middle East.

Traders took a step back after last week's gains as the New York Federal Reserve tempered comments from its president John Williams who had suggested the central bank would cut borrowing costs by 50 basis points at its policy meeting this month.

Bets that the Fed will only reduce rates by 25 points provided support to the dollar against most high-yielding, riskier currencies.

On equity markets, Tokyo ended the morning 0.3 per cent lower and Hong Kong was off 0.6 per cent.&nbsp;

Shanghai fell 0.7 per cent, with investors in China piling cash into companies listed on the country's new Nasdaq-style board.

Twenty-five stocks debuted on the Shanghai Stock Exchange's Sci-Tech Innovation Board dubbed the STAR Market in which listing and trading rules have been eased to help channel funding to start-ups.

Anji Microelectronics Technology (Shanghai) Co. was one of the stand-out performers, soaring more than 300 per cent

There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed. China's main exchanges are subject to a 10 per cent band to contain volatility.

Oil up on Iran worries

Singapore, Manila and Jakarta were also lower, though Wellington and Taipei edged up while Sydney and Seoul were flat.

There was some upbeat news for investors as China's Xinhua news agency said importers had started an arrangement to buy US agricultural goods, a week after Donald Trump warned he could impose more tariffs if Beijing did not move quickly enough on the trade talks.

Trump and Xi Jinping agreed last month at the G20 to resume talks, with the Chinese leader promising to buy more farming goods from the US.

"If we see China begin to follow through on their G20 sidelines promise, we could see the US follow up with some leniency on Huawei," said Edward Moya, senior market analyst at OANDA. "Both sides don’t want to admit, but they are politically motivated to wrap up this trade deal this year."

On oil markets, both main contracts pressed high as tensions in the Gulf were raised by Iran's seizure of the UK-flagged tanker on Friday.

The news provided support against a weak global economic outlook and concerns about demand.

"Falling global demand and rising US stockpiles have helped turn oil charts very bearish, but that may not last as tensions remain high in the Persian Gulf," said Moya. "If Iran keeps on seizing tankers in the Strait of Hormuz, the risks to the military conflict will grow."

Most Asian markets fell in early trade Monday on dimming hopes for a deep interest rate cut by the Federal Reserve, but all the firms on a new tech-focused board in China rallied on its opening day.

Most Asian markets fell in early trade Monday on dimming hopes for a deep interest rate cut by the Federal Reserve, but all the firms on a new tech-focused board in China rallied on its opening day. Oil prices extended last week's gains after Iran seized a British tanker in the Gulf, fuelling fresh concerns about supplies and possible conflict in the tinderbox Middle East. Traders took a step back after last week's gains as the New York Federal Reserve tempered comments from its president John Williams who had suggested the central bank would cut borrowing costs by 50 basis points at its policy meeting this month. Bets that the Fed will only reduce rates by 25 points provided support to the dollar against most high-yielding, riskier currencies. On equity markets, Tokyo ended the morning 0.3 per cent lower and Hong Kong was off 0.6 per cent. Shanghai fell 0.7 per cent, with investors in China piling cash into companies listed on the country's new Nasdaq-style board. Twenty-five stocks debuted on the Shanghai Stock Exchange's Sci-Tech Innovation Board dubbed the STAR Market in which listing and trading rules have been eased to help channel funding to start-ups. Anji Microelectronics Technology (Shanghai) Co. was one of the stand-out performers, soaring more than 300 per cent There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed. China's main exchanges are subject to a 10 per cent band to contain volatility. Oil up on Iran worries Singapore, Manila and Jakarta were also lower, though Wellington and Taipei edged up while Sydney and Seoul were flat. There was some upbeat news for investors as China's Xinhua news agency said importers had started an arrangement to buy US agricultural goods, a week after Donald Trump warned he could impose more tariffs if Beijing did not move quickly enough on the trade talks. Trump and Xi Jinping agreed last month at the G20 to resume talks, with the Chinese leader promising to buy more farming goods from the US. "If we see China begin to follow through on their G20 sidelines promise, we could see the US follow up with some leniency on Huawei," said Edward Moya, senior market analyst at OANDA. "Both sides don’t want to admit, but they are politically motivated to wrap up this trade deal this year." On oil markets, both main contracts pressed high as tensions in the Gulf were raised by Iran's seizure of the UK-flagged tanker on Friday. The news provided support against a weak global economic outlook and concerns about demand. "Falling global demand and rising US stockpiles have helped turn oil charts very bearish, but that may not last as tensions remain high in the Persian Gulf," said Moya. "If Iran keeps on seizing tankers in the Strait of Hormuz, the risks to the military conflict will grow."

Most Asian markets fall as traders consider Federal rate cut

Microsoft Corp said on Monday it was investing $1 billion in San Francisco-based OpenAI and that the two had formed a multi-year partnership to develop artificial intelligence supercomputing technologies on Microsoft's Azure cloud computing service.

OpenAI was founded in 2015 as a nonprofit with $1 billion in funding from Silicon Valley investors Sam Altman, Peter Thiel and LinkedIn co-founder Reid Hoffman, among others. Earlier this year, the group created a related for-profit entity to take in outside investment.

Since its founding, OpenAI has employed artificial intelligence researchers to make advances in the field, such as teaching a robotic hand to perform human-like tasks entirely in software, cutting down the cost and time to train robots.

The group has also focused on the safety and social implications of AI, researching how computers can generate realistic news stories with little more than headline suggestions and warning researchers to consider how their work and algorithms might be misused by bad actors before publishing them.

OpenAI said the Microsoft investment would help it pursue "artificial general intelligence," or AGI. An AGI is the holy grail of the field and would mean the computing system can master a subject as well or better than the best humans in the world - and master more fields than any single human.

"We believe it's crucial that AGI is deployed safely and securely and that its economic benefits are widely distributed," Altman said in a statement. "We are excited about how deeply Microsoft shares this vision."

Microsoft said the two companies would jointly build new AI technologies on Microsoft's Azure cloud computing service. The two also said that OpenAI would move many, though not all, of its services to Azure and that Microsoft would be its "preferred" partner to commercialize new services.

The two parties declined to answer questions from Reuters about the terms of the deal. Earlier this year, OpenAI created a for-profit limited partnership to take outside investment. The for-profit entity is ultimately controlled by the nonprofit's board.

When OpenAI created the structure in March, it said investors who put money into the for-profit entity would have their returns capped and that the nonprofit's mission would take precedence over turning a profit.

Microsoft and OpenAI declined to answer questions about whether and how Microsoft's return on its $1 billion investment would be capped, or how any revenue and profits from jointly developed technologies would be shared.

The two firms also declined to say whether Microsoft's investment would be made in cash, or whether it would involve credits for the Azure cloud computing service.

Cloud computing services are a major cost for OpenAI, which spent $7.9 million on cloud computing in the 2017 tax year, or about a quarter of its total functional expenses for that year, according to filings with the US&nbsp;Internal Revenue Service.

Microsoft Corp said on Monday it was investing $1 billion in San Francisco-based OpenAI and that the two had formed a multi-year partnership to develop artificial intelligence supercomputing technologies on Microsoft's Azure cloud computing service.

Microsoft Corp said on Monday it was investing $1 billion in San Francisco-based OpenAI and that the two had formed a multi-year partnership to develop artificial intelligence supercomputing technologies on Microsoft's Azure cloud computing service. OpenAI was founded in 2015 as a nonprofit with $1 billion in funding from Silicon Valley investors Sam Altman, Peter Thiel and LinkedIn co-founder Reid Hoffman, among others. Earlier this year, the group created a related for-profit entity to take in outside investment. Since its founding, OpenAI has employed artificial intelligence researchers to make advances in the field, such as teaching a robotic hand to perform human-like tasks entirely in software, cutting down the cost and time to train robots. The group has also focused on the safety and social implications of AI, researching how computers can generate realistic news stories with little more than headline suggestions and warning researchers to consider how their work and algorithms might be misused by bad actors before publishing them. OpenAI said the Microsoft investment would help it pursue "artificial general intelligence," or AGI. An AGI is the holy grail of the field and would mean the computing system can master a subject as well or better than the best humans in the world - and master more fields than any single human. "We believe it's crucial that AGI is deployed safely and securely and that its economic benefits are widely distributed," Altman said in a statement. "We are excited about how deeply Microsoft shares this vision." Microsoft said the two companies would jointly build new AI technologies on Microsoft's Azure cloud computing service. The two also said that OpenAI would move many, though not all, of its services to Azure and that Microsoft would be its "preferred" partner to commercialize new services. The two parties declined to answer questions from Reuters about the terms of the deal. Earlier this year, OpenAI created a for-profit limited partnership to take outside investment. The for-profit entity is ultimately controlled by the nonprofit's board. When OpenAI created the structure in March, it said investors who put money into the for-profit entity would have their returns capped and that the nonprofit's mission would take precedence over turning a profit. Microsoft and OpenAI declined to answer questions about whether and how Microsoft's return on its $1 billion investment would be capped, or how any revenue and profits from jointly developed technologies would be shared. The two firms also declined to say whether Microsoft's investment would be made in cash, or whether it would involve credits for the Azure cloud computing service. Cloud computing services are a major cost for OpenAI, which spent $7.9 million on cloud computing in the 2017 tax year, or about a quarter of its total functional expenses for that year, according to filings with the US Internal Revenue Service.

Microsoft to invest $1 billion in San Francisco-based OpenAI

The key Indian equity indices opened on a negative note on Monday, with the BSE Sensex losing over 250 points.

At 10:30 am Sensex is trading 249 points, or 0.65%, lower at 38,088, with Bajaj Finance, HDFC Bank, HDFC, IndusInd Bank, and Kotak Bank among the top losers. The broader Nifty50 index cracked 60 points,or 0.52%, to 11,360.

All the Nifty sectoral indices, except Nifty IT and Nifty Metal indexes, were trading in the red. While Nifty Realty index bled the most 2.07 per cent, Nifty PSU Bank, Nifty Private Bank, and Nifty Bank indexes were all down over 1 per cent.

In the broader market, the S&amp;P BSE MidCap index was down 164 points, or 1.17 per cent, to 13,914, while the S&amp;P BSE SmallCap index was down 206 points, or 1.54 per cent, to 13,104.

The key Indian equity indices opened on a negative note on Monday, with the BSE Sensex losing over 250 points. At 10:30 am Sensex is trading 249 points, or 0.65%, lower at 38,088, with Bajaj Finance, HDFC Bank, HDFC, IndusInd Bank, and Kotak Bank among the top losers.

The key Indian equity indices opened on a negative note on Monday, with the BSE Sensex losing over 250 points. At 10:30 am Sensex is trading 249 points, or 0.65%, lower at 38,088, with Bajaj Finance, HDFC Bank, HDFC, IndusInd Bank, and Kotak Bank among the top losers. The broader Nifty50 index cracked 60 points,or 0.52%, to 11,360. All the Nifty sectoral indices, except Nifty IT and Nifty Metal indexes, were trading in the red. While Nifty Realty index bled the most 2.07 per cent, Nifty PSU Bank, Nifty Private Bank, and Nifty Bank indexes were all down over 1 per cent. In the broader market, the S&P BSE MidCap index was down 164 points, or 1.17 per cent, to 13,914, while the S&P BSE SmallCap index was down 206 points, or 1.54 per cent, to 13,104.

Sensex sheds over 250 points as equity indices open in red

Indian shares ended lower for a third straight session on Monday as financial stocks took a beating, with HDFC Bank Ltd closing at an over two-month low after quarterly provisions surged and asset quality deteriorated.

The broader NSE Nifty ended 0.64% lower at 11,346.2, while the benchmark BSE Sensex closed down 0.8% at 38,031.13. Both indexes marked their worst closing levels since mid-May.

Lending bellwether HDFC Bank, down 3.1%, was among the top drags on the indexes, after provisions jumped over 60%, gross bad loans ticked up, and loan growth slowed.

Housing Development Finance Corporation Ltd, which holds the biggest stake in HDFC Bank, was the biggest percentage loser on the indexes, closing 5.1% lower.

Meanwhile, Yes Bank Ltd surged 9.5% and miner Vedanta Ltd advanced 3.7%.

Indian shares ended lower for a third straight session on Monday as financial stocks took a beating, with HDFC Bank Ltd closing at an over two-month low after quarterly provisions surged and asset quality deteriorated.

Indian shares ended lower for a third straight session on Monday as financial stocks took a beating, with HDFC Bank Ltd closing at an over two-month low after quarterly provisions surged and asset quality deteriorated. The broader NSE Nifty ended 0.64% lower at 11,346.2, while the benchmark BSE Sensex closed down 0.8% at 38,031.13. Both indexes marked their worst closing levels since mid-May. Lending bellwether HDFC Bank, down 3.1%, was among the top drags on the indexes, after provisions jumped over 60%, gross bad loans ticked up, and loan growth slowed. Housing Development Finance Corporation Ltd, which holds the biggest stake in HDFC Bank, was the biggest percentage loser on the indexes, closing 5.1% lower. Meanwhile, Yes Bank Ltd surged 9.5% and miner Vedanta Ltd advanced 3.7%.

Nifty, Sensex close lower as HDFC Bank drags

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals.

Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits.&nbsp;

ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP.

"The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar.

&nbsp;"As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19."

Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar.

"However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement.

An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year.&nbsp;

Moreover, high gold prices may restrict growth in demand for imports of the precious metal.&nbsp;

At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20.&nbsp;

Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports.

ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18.&nbsp;

A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19.

Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 &nbsp;while remaining steady at around 2.1 per cent of the GDP.

A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size.&nbsp;

According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA. This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals. Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits. ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP. "The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar. "As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19." Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar. "However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement. An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year. Moreover, high gold prices may restrict growth in demand for imports of the precious metal. At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20. Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports. ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18. A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19. Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of the GDP. A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size. According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

Current account deficit to print at 16-17 billion dollar in Q1 FY20: ICRA

Reliance Industries plans to remain focused on subscriber additions rather than chase higher tariffs for its Jio telecoms business, a top company executive said.&nbsp;

Its strategy is aimed at prolonging the pressure on rivals such as Bharti Airtel and Vodafone Idea, whose revenue and profits have plunged since the launch of Jio by Reliance boss Mukesh Ambani, country's richest man.&nbsp;

"We have been telling you from the beginning, the priority for us today is customers," Jio's head of strategy, Anshuman Thakur, said in a news briefing late on Friday after quarterly results.&nbsp;

Since its launch in September 2016 Jio has added 331.3 million subscribers by offering cut-price data plans and free voice calls, along with free music, movies and more.

Its arrival has caused upheaval in India's mobile telephony market, forcing some small players out of business while bigger Vodafone and Idea have responded by merging in India.&nbsp;

Competition from Jio has sent the average revenue per user (ARPU) tumbling. Jio's results for the three months to June 30 showed its ARPU - a key metric for telecoms companies - was at 122 rupees ($1.77), down 9.3% from a year ago.

"We are not in this ARPU game," Thakur said, adding that the management`s priority is to ensure that more subscribers latch on to its network and use its services, thereby creating greater "long-term value."

Jio recently topped Bharti Airtel to become India's second-biggest telecoms operator behind Vodafone Idea.

Analysts had predicted that Jio would start raising its tariffs as soon as it reached a critical mass of subscribers.&nbsp;

Thakur, however, suggested that Jio is in no mood to relent, noting that it added 24.5 million subscribers in the quarter and that its subscribers consume an average of 11.4 gigabytes of data each month.&nbsp;

"We're quite happy with these key performance indicators," he said.

Reliance also announced on Friday that Jio has sold its tower assets via an investment trust to Canada's Brookfield Asset Management for 250 billion rupees.&nbsp; 
&nbsp;

Reliance Industries plans to remain focused on subscriber additions rather than chase higher tariffs for its Jio telecoms business, a top company executive said.

Reliance Industries plans to remain focused on subscriber additions rather than chase higher tariffs for its Jio telecoms business, a top company executive said. Its strategy is aimed at prolonging the pressure on rivals such as Bharti Airtel and Vodafone Idea, whose revenue and profits have plunged since the launch of Jio by Reliance boss Mukesh Ambani, country's richest man. "We have been telling you from the beginning, the priority for us today is customers," Jio's head of strategy, Anshuman Thakur, said in a news briefing late on Friday after quarterly results. Since its launch in September 2016 Jio has added 331.3 million subscribers by offering cut-price data plans and free voice calls, along with free music, movies and more. Its arrival has caused upheaval in India's mobile telephony market, forcing some small players out of business while bigger Vodafone and Idea have responded by merging in India. Competition from Jio has sent the average revenue per user (ARPU) tumbling. Jio's results for the three months to June 30 showed its ARPU - a key metric for telecoms companies - was at 122 rupees ($1.77), down 9.3% from a year ago. "We are not in this ARPU game," Thakur said, adding that the management`s priority is to ensure that more subscribers latch on to its network and use its services, thereby creating greater "long-term value." Jio recently topped Bharti Airtel to become India's second-biggest telecoms operator behind Vodafone Idea. Analysts had predicted that Jio would start raising its tariffs as soon as it reached a critical mass of subscribers. Thakur, however, suggested that Jio is in no mood to relent, noting that it added 24.5 million subscribers in the quarter and that its subscribers consume an average of 11.4 gigabytes of data each month. "We're quite happy with these key performance indicators," he said. Reliance also announced on Friday that Jio has sold its tower assets via an investment trust to Canada's Brookfield Asset Management for 250 billion rupees.

Reliance mobile operator Jio to focus on subscriber numbers not tariffs: Report

Air France, Emirates and Etihad Airways are continuing to operate flights to Cairo after British Airways and Lufthansa suspended services to Egypt's capital.

International Airlines Group's British Airways suspended flights on Saturday for seven days "as a security precaution" as it reviews security at Cairo airport.

Germany's Lufthansa later said it cancelled services from Munich and Frankfurt to Cairo and would resume flights on Sunday.

"In liaison with the French authorities and the local authorities in Egypt, Air France has decided to maintain its service to Cairo," a spokesman said in a statement sent to Reuters.

An Emirates spokeswoman said its flights were operating to schedule.

"We are closely assessing the situation and are in contact with the relevant aviation authorities with regards to our flight operations to Egypt," the spokeswoman said.

The website for Abu Dhabi's Etihad showed its services were also operating.

"Etihad Airways is monitoring the security situation in Cairo," an airline spokesman said.

Air France, Emirates and Etihad Airways are continuing to operate flights to Cairo after British Airways and Lufthansa suspended services to Egypt's capital. International Airlines Group's British Airways suspended flights on Saturday for seven days "as a security precaution" as it reviews security at Cairo airport.

Air France, Emirates and Etihad Airways are continuing to operate flights to Cairo after British Airways and Lufthansa suspended services to Egypt's capital. International Airlines Group's British Airways suspended flights on Saturday for seven days "as a security precaution" as it reviews security at Cairo airport. Germany's Lufthansa later said it cancelled services from Munich and Frankfurt to Cairo and would resume flights on Sunday. "In liaison with the French authorities and the local authorities in Egypt, Air France has decided to maintain its service to Cairo," a spokesman said in a statement sent to Reuters. An Emirates spokeswoman said its flights were operating to schedule. "We are closely assessing the situation and are in contact with the relevant aviation authorities with regards to our flight operations to Egypt," the spokeswoman said. The website for Abu Dhabi's Etihad showed its services were also operating. "Etihad Airways is monitoring the security situation in Cairo," an airline spokesman said.

Air France, Emirates maintain Cairo flights after British Air suspension

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals.

Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits. ICRA forecasts India's CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP.

"The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA's Principal Economist Aditi Nayar.&nbsp;

"As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19."Recently released data indicates that India's merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar."However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded in July 2018, which was the highest monthly print for FY19," she said in a statement.

An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year. Moreover, high gold prices may restrict growth in demand for imports of the precious metal.&nbsp;

At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20. Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports.ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18. A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19.&nbsp;

Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row -- to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 -- while remaining steady at around 2.1 per cent of the GDP.&nbsp;

A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size.&nbsp;

According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.&nbsp;

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA. This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals. Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits. ICRA forecasts India's CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP. "The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA's Principal Economist Aditi Nayar. "As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19."Recently released data indicates that India's merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar."However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded in July 2018, which was the highest monthly print for FY19," she said in a statement. An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year. Moreover, high gold prices may restrict growth in demand for imports of the precious metal. At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20. Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports.ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18. A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19. Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row -- to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 -- while remaining steady at around 2.1 per cent of the GDP. A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size. According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

Current account deficit to print at $16-17 billion in Q1 FY20: ICRA

China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan ($4.36 billion) of capital from three investors, the firm announced on Saturday.

The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country`s efforts to diversify ownership structures among state-owned firms.

The move will significantly improve the company`s debt-to-asset ratio, generate funds for its growth and help modernise its decision-making mechanisms, the announcement said.

It will also use the funds to serve its main air transportation business, pay for construction related to China`s Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong.&nbsp;

China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50% last year as a result of rising fuel costs and a weak yuan currency.&nbsp;

China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan ($4.36 billion) of capital from three investors, the firm announced on Saturday.

China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan ($4.36 billion) of capital from three investors, the firm announced on Saturday. The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country`s efforts to diversify ownership structures among state-owned firms. The move will significantly improve the company`s debt-to-asset ratio, generate funds for its growth and help modernise its decision-making mechanisms, the announcement said. It will also use the funds to serve its main air transportation business, pay for construction related to China`s Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong. China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50% last year as a result of rising fuel costs and a weak yuan currency.

China Southern Airlines to receive $4 billion capital injection

Credit rating agencies for years assigned high ratings to India's Infrastructure Leasing &amp; Financial Services (IL&amp;FS) and its group companies despite its deteriorating financial health, according to a special audit conducted by Grant Thornton India.

Audit firm Grant Thornton was appointed by IL&amp;FS'&nbsp;new board to conduct the review following the government's decision to take charge of the group after its defaults on debt obligations sparked fears of financial contagion.&nbsp;

Grant Thornton reviewed the role of five credit rating agencies -- Fitch group's India Ratings and Research, Indian affiliate of Moody's, ICRA, Standard &amp; Poor's local unit Crisil, CARE Ratings and Brickwork Ratings India -- which assigned 429 ratings to various IL&amp;FS financial instruments in recent years.

In a 105-page report, reviewed by Reuters on Saturday, Grant Thornton said the agencies raised multiple concerns on IL&amp;FS group's financial stress and liquidity position between June 2012 and June 2018, but continued to assign "consistently high" ratings which were only downgraded or reversed last year.

"Various strategies deployed by the then key officials of IL&amp;FS group and certain favours/gifts provided to rating agency officials suggest the possible reasons for consistent good ratings provided to IL&amp;FS group," said Grant Thornton in its report that detailed gifts or favours such as smartwatches and tickets to overseas games.&nbsp;

IL&amp;FS declined to comment. India Ratings said the Grant Thornton report is based on "partial and selective source material", adding "our ratings were based on robust and transparent analysis of relevant information".

Brickwork said it did not assign the highest ratings to IL&amp;FS "because it follows robust, transparent and consistent rating methodology" and its actions were not influenced by any commercial pressures or rating withdrawal requests.

ICRA, Crisil and CARE did not immediately respond to a request for comment.&nbsp;

The IL&amp;FS crisis that started last year has sparked a series of probes into the firm's operations, but Grant Thornton's report raises questions on whether rating agencies have misled investors about the stress levels at other companies in India's shadow banking sector, where new fractures are emerging.

Dewan Housing Finance Corp, another top firm in the sector, last week warned its financial situation was dire, raising more worries about the sector's health and signalling the crisis was far from over. 
&nbsp;

Credit rating agencies for years assigned high ratings to India's Infrastructure Leasing & Financial Services (IL&FS) and its group companies despite its deteriorating financial health, according to a special audit conducted by Grant Thornton India.

Credit rating agencies for years assigned high ratings to India's Infrastructure Leasing & Financial Services (IL&FS) and its group companies despite its deteriorating financial health, according to a special audit conducted by Grant Thornton India. Audit firm Grant Thornton was appointed by IL&FS' new board to conduct the review following the government's decision to take charge of the group after its defaults on debt obligations sparked fears of financial contagion. Grant Thornton reviewed the role of five credit rating agencies -- Fitch group's India Ratings and Research, Indian affiliate of Moody's, ICRA, Standard & Poor's local unit Crisil, CARE Ratings and Brickwork Ratings India -- which assigned 429 ratings to various IL&FS financial instruments in recent years. In a 105-page report, reviewed by Reuters on Saturday, Grant Thornton said the agencies raised multiple concerns on IL&FS group's financial stress and liquidity position between June 2012 and June 2018, but continued to assign "consistently high" ratings which were only downgraded or reversed last year. "Various strategies deployed by the then key officials of IL&FS group and certain favours/gifts provided to rating agency officials suggest the possible reasons for consistent good ratings provided to IL&FS group," said Grant Thornton in its report that detailed gifts or favours such as smartwatches and tickets to overseas games. IL&FS declined to comment. India Ratings said the Grant Thornton report is based on "partial and selective source material", adding "our ratings were based on robust and transparent analysis of relevant information". Brickwork said it did not assign the highest ratings to IL&FS "because it follows robust, transparent and consistent rating methodology" and its actions were not influenced by any commercial pressures or rating withdrawal requests. ICRA, Crisil and CARE did not immediately respond to a request for comment. The IL&FS crisis that started last year has sparked a series of probes into the firm's operations, but Grant Thornton's report raises questions on whether rating agencies have misled investors about the stress levels at other companies in India's shadow banking sector, where new fractures are emerging. Dewan Housing Finance Corp, another top firm in the sector, last week warned its financial situation was dire, raising more worries about the sector's health and signalling the crisis was far from over.

Rating agencies knew of stress at IL&FS, but gave good ratings: Report

Equity benchmark indices erased opening gains in early hours on Friday due to profit booking with the Nifty auto dropping 1.3 per cent.

At 10:15 am, the BSE S&amp;P Sensex was down 238 points at 38,660 while the Nifty 50 slipped 69 points to 11,528. At the National Stock Exchange, all sectoral indices were in the red.

Among stocks, Yes Bank continued its downward slide and dipped 2 per cent lower at Rs 84.05 per share. In the auto sector, Mahindra &amp; Mahindra and Hero MotoCorp between 1.3 per cent and 1.9 per cent respectively.

The other prominent losers were Maruti, GAIL, Indian Oil, ONGC, Bajaj Finance and Bajaj Finserv.

However, UltraTech Cement gained 1.7 per cent to Rs 4,680 per share. Titan, Powergrid, Vedanta and Tata Steel showed marginal gains.

Meanwhile, Asian stocks advanced after a top Federal Reserve official cemented expectations of a US interest rate cut later this month.

The Shanghai Composite Index and Hong Kong's Hang Seng were both up 1 per cent. South Korea's KOSPI also rose 1 per cent and Japan's Nikkei advanced 1.65 per cent.&nbsp; 
&nbsp;

Equity benchmark indices erased opening gains in early hours on Friday due to profit booking with the Nifty auto dropping 1.3 per cent. At 10:15 am, the BSE S&P Sensex was down 238 points at 38,660 while the Nifty 50 slipped 69 points to 11,528.

Equity benchmark indices erased opening gains in early hours on Friday due to profit booking with the Nifty auto dropping 1.3 per cent. At 10:15 am, the BSE S&P Sensex was down 238 points at 38,660 while the Nifty 50 slipped 69 points to 11,528. At the National Stock Exchange, all sectoral indices were in the red. Among stocks, Yes Bank continued its downward slide and dipped 2 per cent lower at Rs 84.05 per share. In the auto sector, Mahindra & Mahindra and Hero MotoCorp between 1.3 per cent and 1.9 per cent respectively. The other prominent losers were Maruti, GAIL, Indian Oil, ONGC, Bajaj Finance and Bajaj Finserv. However, UltraTech Cement gained 1.7 per cent to Rs 4,680 per share. Titan, Powergrid, Vedanta and Tata Steel showed marginal gains. Meanwhile, Asian stocks advanced after a top Federal Reserve official cemented expectations of a US interest rate cut later this month. The Shanghai Composite Index and Hong Kong's Hang Seng were both up 1 per cent. South Korea's KOSPI also rose 1 per cent and Japan's Nikkei advanced 1.65 per cent.

Sensex drops 237 points on profit-booking, Nifty below 11,600

The Indian government had 789.43 billion rupees ($11.47 billion) outstanding loans with the central bank under ways and means advances in the week ended July 12, according to the Reserve Bank of India's (RBI) weekly statistical supplement released on Friday.

The central government had 667.93 billion rupees outstanding loans in the week earlier.

State governments had loans worth 69.94 billion rupees from the RBI in the week ended July 12, compared with 55.66 billion rupees in the previous week, the release showed.

Indian banks' loans rose 12 per cent&nbsp;in the two weeks ended July 5 from a year earlier, while deposits rose 10.3 per cent, the Reserve Bank of India's weekly statistical supplement showed on Friday.

Outstanding loans rose 487.8 billion rupees ($7.09 billion)to 96.98 trillion rupees in the two weeks ended July 5. Non-food credit rose 494.3 billion rupees to 96.27 trillion rupees, while food credit fell 6.5 billion rupees to 707.7 billion rupees.

Bank deposits rose 1.82 trillion rupees to 126.75 trillion rupees in the two weeks ended July 5.

The Indian government had 789.43 billion rupees ($11.47 billion) outstanding loans with the central bank under ways and means advances in the week ended July 12, according to the Reserve Bank of India's (RBI) weekly statistical supplement released on Friday.

The Indian government had 789.43 billion rupees ($11.47 billion) outstanding loans with the central bank under ways and means advances in the week ended July 12, according to the Reserve Bank of India's (RBI) weekly statistical supplement released on Friday. The central government had 667.93 billion rupees outstanding loans in the week earlier. State governments had loans worth 69.94 billion rupees from the RBI in the week ended July 12, compared with 55.66 billion rupees in the previous week, the release showed. Indian banks' loans rose 12 per cent in the two weeks ended July 5 from a year earlier, while deposits rose 10.3 per cent, the Reserve Bank of India's weekly statistical supplement showed on Friday. Outstanding loans rose 487.8 billion rupees ($7.09 billion)to 96.98 trillion rupees in the two weeks ended July 5. Non-food credit rose 494.3 billion rupees to 96.27 trillion rupees, while food credit fell 6.5 billion rupees to 707.7 billion rupees. Bank deposits rose 1.82 trillion rupees to 126.75 trillion rupees in the two weeks ended July 5.

Government's outstanding loans from RBI at 789.43 billion rupees in July 12 week

Lenders to&nbsp;<a href="https://www.wionews.com/india-news/jet-airways-row-delhi-high-court-to-hear-tomorrow-naresh-goyals-plea-seeking-quashing-of-look-out-circular-234105">Jet&nbsp;Airways</a> agreed on Friday to provide some interim financing to the bankrupt airline to help it cover legal and other costs, as resolution experts look to find a potential buyer.

In a regulatory filing, bankruptcy resolution firm Grant Thornton said&nbsp;Jet's lenders had also approved the eligibility criteria for potential buyers.

The filing did not say how much interim funding had been approved, but a source familiar with the matter told Reuters the lenders had agreed to provide $10 million.

The committee of creditors (CoC), via an electronic voting process, also agreed to appoint SBI Caps to help with the whole resolution process.

SBI Caps, the investment banking arm of State Bank of India (SBI), previously led an unsuccessful sale process for the airline before it was dragged to the bankruptcy court.

The source said Grant Thornton planned to open bidding for the airline on Saturday. The only criterion for bidders will be having a net worth of 10 billion Indian rupees ($145 million), added the source.

This is similar to the parameter used when lenders initially tried to sell the airline. Bidding is likely to be open for 15 days and maybe extended if there are no suitors, said the source.

Last month,&nbsp;Jet's creditors, led by SBI, took the airline to bankruptcy court after failing to agree on a revival plan.

Financial creditors, who have the first right to proceeds recovered from a bankruptcy resolution, have submitted claims worth 102 billion rupees out of which 85 billion have been admitted. Apart from this, about 2,400 operational creditors have made claims worth some 123.72 billion rupees, according to reports.

Lenders to Jet Airways agreed on Friday to provide some interim financing to the bankrupt airline to help it cover legal and other costs, as resolution experts look to find a potential buyer.

Lenders to Jet Airways agreed on Friday to provide some interim financing to the bankrupt airline to help it cover legal and other costs, as resolution experts look to find a potential buyer. In a regulatory filing, bankruptcy resolution firm Grant Thornton said Jet's lenders had also approved the eligibility criteria for potential buyers. The filing did not say how much interim funding had been approved, but a source familiar with the matter told Reuters the lenders had agreed to provide $10 million. The committee of creditors (CoC), via an electronic voting process, also agreed to appoint SBI Caps to help with the whole resolution process. SBI Caps, the investment banking arm of State Bank of India (SBI), previously led an unsuccessful sale process for the airline before it was dragged to the bankruptcy court. The source said Grant Thornton planned to open bidding for the airline on Saturday. The only criterion for bidders will be having a net worth of 10 billion Indian rupees ($145 million), added the source. This is similar to the parameter used when lenders initially tried to sell the airline. Bidding is likely to be open for 15 days and maybe extended if there are no suitors, said the source. Last month, Jet's creditors, led by SBI, took the airline to bankruptcy court after failing to agree on a revival plan. Financial creditors, who have the first right to proceeds recovered from a bankruptcy resolution, have submitted claims worth 102 billion rupees out of which 85 billion have been admitted. Apart from this, about 2,400 operational creditors have made claims worth some 123.72 billion rupees, according to reports.

Jet Airways' lenders approve interim finance plan for the carrier

<a href="https://www.wionews.com/india-news/world-bank-retains-indias-growth-rate-for-fy19-20-at-75-224461">The World Bank</a> said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project.

The Beijing-backed Asian Infrastructure Investment Bank (AIIB), that was due to finance $200 million of the project, then said it was reviewing its involvement.&nbsp;

The construction of the city, known as Amaravati, is the brainchild of the state's former chief minister, <a href="https://www.wionews.com/india-news/central-budget-disappointing-says-chandrababu-naidu-233470 ">N&nbsp;Chandrababu Naidu</a>, who lost power in elections in May.&nbsp;

The two banks were due to provide the lion's share of the $715 million cost of critical funding for transport, sanitation and water supply.

The World Bank's withdrawal was reported by Indian media on Thursday but the federal government's involvement in that decision has not been previously disclosed, nor had the AIIB's plans for a review.

Prime Minister Narendra Modi laid the foundation stone for the project in 2015, but he and Naidu fell out after Naidu's party broke from Modi's ruling coalition last year.&nbsp;

"The government of India has withdrawn its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project," Sudip Mozumder, a New Delhi-based spokesman for the bank, told Reuters.&nbsp;

"The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision."&nbsp;

AIIB spokeswoman Laurel Ostfield told Reuters in Beijing that it was aware the World Bank has dropped the project from its investment pipeline.

"Our investment committee will be discussing our involvement in the project early next week," he said.&nbsp;

Dr P Lakshmi Narasimham, the commissioner of the Andhra Pradesh Capital Region Development Authority, the state body overseeing construction of the city, declined to comment on the implications of the funding withdrawal.&nbsp;

The Amaravati project, built on greenfield land on the banks of the sacred Krishna River, has been beset by accusations from activist groups of corruption and environmental damage. The state government has denied the accusations.

Andhra Pradesh was split in two in 2014, with the new state of Telangana containing the historic capital, Hyderabad, though both states agreed to share it for 10 years.

"For a change, good sense has prevailed upon the bank to withdraw from the disastrous programme," Sreedhar R., the director of the Environics Trust, one of the activist groups that has been critical of the project, said in a statement.&nbsp;

"This also vindicates our stance that (AIIB) which is a co-financier in the project, can no longer hide behind the World Bank which it has been doing." 
&nbsp;

The World Bank said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project.

The World Bank said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project. The Beijing-backed Asian Infrastructure Investment Bank (AIIB), that was due to finance $200 million of the project, then said it was reviewing its involvement. The construction of the city, known as Amaravati, is the brainchild of the state's former chief minister, N Chandrababu Naidu, who lost power in elections in May. The two banks were due to provide the lion's share of the $715 million cost of critical funding for transport, sanitation and water supply. The World Bank's withdrawal was reported by Indian media on Thursday but the federal government's involvement in that decision has not been previously disclosed, nor had the AIIB's plans for a review. Prime Minister Narendra Modi laid the foundation stone for the project in 2015, but he and Naidu fell out after Naidu's party broke from Modi's ruling coalition last year. "The government of India has withdrawn its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project," Sudip Mozumder, a New Delhi-based spokesman for the bank, told Reuters. "The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision." AIIB spokeswoman Laurel Ostfield told Reuters in Beijing that it was aware the World Bank has dropped the project from its investment pipeline. "Our investment committee will be discussing our involvement in the project early next week," he said. Dr P Lakshmi Narasimham, the commissioner of the Andhra Pradesh Capital Region Development Authority, the state body overseeing construction of the city, declined to comment on the implications of the funding withdrawal. The Amaravati project, built on greenfield land on the banks of the sacred Krishna River, has been beset by accusations from activist groups of corruption and environmental damage. The state government has denied the accusations. Andhra Pradesh was split in two in 2014, with the new state of Telangana containing the historic capital, Hyderabad, though both states agreed to share it for 10 years. "For a change, good sense has prevailed upon the bank to withdraw from the disastrous programme," Sreedhar R., the director of the Environics Trust, one of the activist groups that has been critical of the project, said in a statement. "This also vindicates our stance that (AIIB) which is a co-financier in the project, can no longer hide behind the World Bank which it has been doing."

World Bank pulls $300 million of funding for Amaravati after Delhi drops support

Low-cost airline GoAir has put a new management team in place as it embarks on an aggressive expansion plan to capture the space vacated with the grounding of Jet Airways.

Miranda Mills, a former executive of Airbus and Rolls Royce, has been appointed as the new Chief Operating Officer. She will join in August and will report to Managing Director and Chief Executive Officer Jeh Wadia.

Mills bring with her over 25 years of experience in the aerospace industry.

Sanjay Gupta will be the new Chief Financial Officer while Arjun Dasgupta will take over as the Vice President for International Operations, the company said in a statement.

The other appointments include Samir Patel who will head network planning, Harjinder Singh Bhasin (airports), Shabnam Syed (marketing and e-commerce), Graham Parker (revenue management) and Richard Nanton (flight operations).

GoAir operates about 285 flights a day to 24 domestic destinations and has four international services.

On Thursday, it announced five new international services to the Gulf region, two to Bangkok and eight new domestic services.

The carrier with 11.1 per cent domestic market share is expanding its India operations from Hyderabad with eight new flights covering cities such as Cochin, Chennai, Jaipur, Bengaluru, Chandigarh and Patna.

Its new international services are Delhi-Abu Dhabi, Mumbai-Abu Dhabi, Mumbai-Muscat, Delhi-Bangkok, Kannur-Dubai, Mumbai-Bangkok and Kannur-Kuwait.

"We have embarked on an aggressive expansion plan and the new flights are a manifestation of that strategy," said Wadia.

"This is a milestone moment for us to have announced seven new international destinations within a year of commencement of our international operations. The global and regional expansion has been planned to allow quick and convenient connections for passengers and is a reflection of our continued journey towards excellence," he said.

GoAir has 51 aircraft and plans to expand its fleet further. Till date, it has flown over 73.3 million passengers since its inception. The company aims to touch the magic figure of 100 million passengers in the next two years. 
&nbsp;

Low-cost airline GoAir has put a new management team in place as it embarks on an aggressive expansion plan to capture the space vacated with the grounding of Jet Airways.

Low-cost airline GoAir has put a new management team in place as it embarks on an aggressive expansion plan to capture the space vacated with the grounding of Jet Airways. Miranda Mills, a former executive of Airbus and Rolls Royce, has been appointed as the new Chief Operating Officer. She will join in August and will report to Managing Director and Chief Executive Officer Jeh Wadia. Mills bring with her over 25 years of experience in the aerospace industry. Sanjay Gupta will be the new Chief Financial Officer while Arjun Dasgupta will take over as the Vice President for International Operations, the company said in a statement. The other appointments include Samir Patel who will head network planning, Harjinder Singh Bhasin (airports), Shabnam Syed (marketing and e-commerce), Graham Parker (revenue management) and Richard Nanton (flight operations). GoAir operates about 285 flights a day to 24 domestic destinations and has four international services. On Thursday, it announced five new international services to the Gulf region, two to Bangkok and eight new domestic services. The carrier with 11.1 per cent domestic market share is expanding its India operations from Hyderabad with eight new flights covering cities such as Cochin, Chennai, Jaipur, Bengaluru, Chandigarh and Patna. Its new international services are Delhi-Abu Dhabi, Mumbai-Abu Dhabi, Mumbai-Muscat, Delhi-Bangkok, Kannur-Dubai, Mumbai-Bangkok and Kannur-Kuwait. "We have embarked on an aggressive expansion plan and the new flights are a manifestation of that strategy," said Wadia. "This is a milestone moment for us to have announced seven new international destinations within a year of commencement of our international operations. The global and regional expansion has been planned to allow quick and convenient connections for passengers and is a reflection of our continued journey towards excellence," he said. GoAir has 51 aircraft and plans to expand its fleet further. Till date, it has flown over 73.3 million passengers since its inception. The company aims to touch the magic figure of 100 million passengers in the next two years.

GoAir appoints new management team to expand operations

Interglobe&nbsp;Aviation&nbsp;Ltd, which operates India's top&nbsp;airline&nbsp;IndiGo, on Friday reported its highest-ever quarterly&nbsp;profit&nbsp;after tax in the June quarter, as the collapse&nbsp;of&nbsp;Jet&nbsp;Airways diverted passengers to other low-cost carriers.

The company and its peer SpiceJet&nbsp;Ltd have both seen a surge in passenger growth, after&nbsp;Jet&nbsp;Airways, once the country's biggest private carrier, declared bankruptcy.

Interglobe&nbsp;said its net&nbsp;profit&nbsp;for the three months ended June 30 rose to over 12 billion rupees&nbsp;from 277.9 million rupees a year ago. Revenue rose 45% to 94.2 billion rupees.

IndiGo's founders have recently been involved in an escalating dispute, dragging down the parent's shares.

IndiGo's yield, a measure of the average passenger fare per mile, rose 12.8%, reflecting the rising passenger preference for the&nbsp;airline, which is now India's biggest by market share.

Interglobe&nbsp;shares closed 0.28% higher on Friday amid a broader market that ended 1.53% down.

Interglobe Aviation Ltd, which operates India's top airline IndiGo, on Friday reported its highest-ever quarterly profit after tax in the June quarter, as the collapse of Jet Airways diverted passengers to other low-cost carriers.

Interglobe Aviation Ltd, which operates India's top airline IndiGo, on Friday reported its highest-ever quarterly profit after tax in the June quarter, as the collapse of Jet Airways diverted passengers to other low-cost carriers. The company and its peer SpiceJet Ltd have both seen a surge in passenger growth, after Jet Airways, once the country's biggest private carrier, declared bankruptcy. Interglobe said its net profit for the three months ended June 30 rose to over 12 billion rupees from 277.9 million rupees a year ago. Revenue rose 45% to 94.2 billion rupees. IndiGo's founders have recently been involved in an escalating dispute, dragging down the parent's shares. IndiGo's yield, a measure of the average passenger fare per mile, rose 12.8%, reflecting the rising passenger preference for the airline, which is now India's biggest by market share. Interglobe shares closed 0.28% higher on Friday amid a broader market that ended 1.53% down.

IndiGo operator Interglobe Aviation profit surges on Jet Air collapse

Global&nbsp;stocks&nbsp;rose on Friday as investors firmed up&nbsp;bets&nbsp;on a US interest&nbsp;rate&nbsp;cut&nbsp;at the end of July after a speech by a top&nbsp;<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/us-lamakers-propose-barring-big-tech-companies-from-offering-financial-services-digital-currencies-236125&amp;sa=U&amp;ved=2ahUKEwivgZmF9MDjAhUD73MBHf2NCOoQFjAGegQIBBAC&amp;usg=AOvVaw0Czkc6147wnx7-a0sTCHUs">Federal Reserve</a> official further cemented expectations for one, fuelling appetite for risky assets and capping the&nbsp;dollar.

European shares opened higher across the board, with the pan-European STOXX 600 index gaining 0.7% in early trade. Britain's FTSE 100 index gained 0.6% and Germany's DAX rose 0.75%.

In oil&nbsp;markets, crude surged after the United States said its navy had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for&nbsp;global&nbsp;crude flows, raising concerns about supply disruptions out of the region.

Iran said all its drones had returned safely to base, and there was no sign of a major escalation in the Gulf.

Comments by New York&nbsp;Fed&nbsp;President John Williams on Thursday made it virtually certain, in the&nbsp;markets' view, that the&nbsp;Fed&nbsp;would&nbsp;cut&nbsp;interest&nbsp;rates by at least 25 basis points at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction.

Financial&nbsp;markets&nbsp;reacted quickly, with&nbsp;Fed&nbsp;fund&nbsp;rate&nbsp;futures at one point pricing in an almost 70% chance of a 50 basis point&nbsp;cut. The odds eased to around 40% after the New YorkFed&nbsp;said William's speech had not been about immediate policy direction.

MSCI's All-Country World Index, which tracks shares in 47 countries, was having its best day in over two weeks, up nearly half a percent on the day. It was, however, still on track to break a six-week streak of weekly gains.

E-mini futures for the S&amp;P 500 index were 0.3% higher, indicating a higher opening on Wall Street later in the day.

"Despite a rather lackluster earnings season so far, investors are focusing on the prospect of a considerably easier monetary policy, which is why we see&nbsp;stocks&nbsp;ready to open higher this morning," said Konstantinos Anthis, head of research at ADSS.

Will the rate cut Suffice?

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1%, bouncing back from the previous day's losses, while Japan's Nikkei advanced 2%.

Elsewhere in Asia, the Shanghai Composite Index rose 0.8%, Australian&nbsp;stocks&nbsp;added 0.75% and South Korea's KOSPI gained 1.4%.

For the week, the MSCI ex-Japan index climbed a modest 1%, as riskier assets were partly capped by US President Donald Trump's reiteration of his threat to impose further duties on Chinese imports.

The two sides resumed talks recently to seek an end to a year-long trade war that has rattled financial&nbsp;markets&nbsp;and slowed&nbsp;global&nbsp;growth. But most analysts do not expect an agreement any time soon, with some predicting a strong risk of further tariff escalation.

"Although central banks around the world have embarked on policy-easing in a bid to support their respective economies, investors are left to ponder whether the stimulus will be enough to offset the effects from heightened US-China trade tensions," said Han Tan, market analyst at FXTM.

The&nbsp;dollar&nbsp;index against a basket of six major currencies&nbsp;stood about 0.1% higher at 96.875 after losing roughly 0.5% overnight to a two-week low of 96.671 in the wake of the comments from the&nbsp;Fed's Williams.

The euro was 0.15% lower at $1.1259 after climbing 0.45% the previous day.

US Treasury yields were lower across the board. The 2-year yield was at 1.7894% after touching a two-week low of 1.7520%. The 10-year yield declined to a 10-day low of 2.023% and was last at 2.0465%.

In commodities, US crude oil futures reversed a large part of the previous day's deep losses, briefly rising 1.45% to $56.10 per barrel before easing back to $55.81, up 0.9%.

Crude rallied after the reports on the Iranian drone. Oil prices had fallen on Thursday amid expectations that output would rise in the Gulf of Mexico as operations resumed following last week's hurricane.

Spot gold eased 0.5% as investors locked in profits after bullion surpassed $1,450 an ounce for the first time in more than six years on dovish&nbsp;Fed&nbsp;signals and Middle East tension.

Global stocks rose on Friday as investors firmed up bets on a US interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar.

Global stocks rose on Friday as investors firmed up bets on a US interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar. European shares opened higher across the board, with the pan-European STOXX 600 index gaining 0.7% in early trade. Britain's FTSE 100 index gained 0.6% and Germany's DAX rose 0.75%. In oil markets, crude surged after the United States said its navy had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, raising concerns about supply disruptions out of the region. Iran said all its drones had returned safely to base, and there was no sign of a major escalation in the Gulf. Comments by New York Fed President John Williams on Thursday made it virtually certain, in the markets' view, that the Fed would cut interest rates by at least 25 basis points at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction. Financial markets reacted quickly, with Fed fund rate futures at one point pricing in an almost 70% chance of a 50 basis point cut. The odds eased to around 40% after the New YorkFed said William's speech had not been about immediate policy direction. MSCI's All-Country World Index, which tracks shares in 47 countries, was having its best day in over two weeks, up nearly half a percent on the day. It was, however, still on track to break a six-week streak of weekly gains. E-mini futures for the S&P 500 index were 0.3% higher, indicating a higher opening on Wall Street later in the day. "Despite a rather lackluster earnings season so far, investors are focusing on the prospect of a considerably easier monetary policy, which is why we see stocks ready to open higher this morning," said Konstantinos Anthis, head of research at ADSS. Will the rate cut Suffice? MSCI's broadest index of Asia-Pacific shares outside Japan was up 1%, bouncing back from the previous day's losses, while Japan's Nikkei advanced 2%. Elsewhere in Asia, the Shanghai Composite Index rose 0.8%, Australian stocks added 0.75% and South Korea's KOSPI gained 1.4%. For the week, the MSCI ex-Japan index climbed a modest 1%, as riskier assets were partly capped by US President Donald Trump's reiteration of his threat to impose further duties on Chinese imports. The two sides resumed talks recently to seek an end to a year-long trade war that has rattled financial markets and slowed global growth. But most analysts do not expect an agreement any time soon, with some predicting a strong risk of further tariff escalation. "Although central banks around the world have embarked on policy-easing in a bid to support their respective economies, investors are left to ponder whether the stimulus will be enough to offset the effects from heightened US-China trade tensions," said Han Tan, market analyst at FXTM. The dollar index against a basket of six major currencies stood about 0.1% higher at 96.875 after losing roughly 0.5% overnight to a two-week low of 96.671 in the wake of the comments from the Fed's Williams. The euro was 0.15% lower at $1.1259 after climbing 0.45% the previous day. US Treasury yields were lower across the board. The 2-year yield was at 1.7894% after touching a two-week low of 1.7520%. The 10-year yield declined to a 10-day low of 2.023% and was last at 2.0465%. In commodities, US crude oil futures reversed a large part of the previous day's deep losses, briefly rising 1.45% to $56.10 per barrel before easing back to $55.81, up 0.9%. Crude rallied after the reports on the Iranian drone. Oil prices had fallen on Thursday amid expectations that output would rise in the Gulf of Mexico as operations resumed following last week's hurricane. Spot gold eased 0.5% as investors locked in profits after bullion surpassed $1,450 an ounce for the first time in more than six years on dovish Fed signals and Middle East tension.

Fed rate cut bets lift stocks, dollar steadies

Oil&nbsp;prices rose on Friday as tensions spiked again in the Middle East&nbsp;after&nbsp;the United States said it had destroyed an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz, a major chokepoint for global crude flows.

Benchmark crude prices were still on track for their biggest&nbsp;weekly&nbsp;decline in seven weeks, however, having&nbsp;fallen sharply earlier in the week on concerns over global&nbsp;oil&nbsp;demand amid slowing economic growth.

Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was&nbsp;set&nbsp;for a&nbsp;weekly&nbsp;drop of around 5%.

West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel&nbsp;after&nbsp;touching $56.36. They ended 2.6% lower in the previous session and were headed for a&nbsp;weekly&nbsp;decline of around 6%.

Indications that the&nbsp;US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets.

"The Fed backstop and the report of the&nbsp;US&nbsp;Navy&nbsp;shooting down an&nbsp;Iranian&nbsp;drone&nbsp;are providing a modicum of support for&nbsp;oil&nbsp;markets amidst a very bearish landscape," he said.

The United States said on Thursday that a&nbsp;US&nbsp;Navy&nbsp;ship had "destroyed" an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz&nbsp;after&nbsp;the aircraft threatened the vessel, but Iran said it had no information about losing a&nbsp;drone.

Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the&nbsp;US economy, reviving bets the central bank may deliver a larger-than-expected cut this month.

Still, the longer-term outlook for&nbsp;oil&nbsp;has grown increasingly bearish.

The International Energy Agency (IEA) is reducing its 2019&nbsp;oil&nbsp;demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a&nbsp;US-China trade spat, it's executive director said on Thursday.

The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters.

"Macro-economic concerns, uncertainty on trade discussions and increasing&nbsp;oil&nbsp;supply from the&nbsp;US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING.

Bank of America Merrill Lynch said any start of&nbsp;US-Iran talks or a&nbsp;US-China trade deal would reduce volatility and anchor Brent&nbsp;oil&nbsp;prices in a $60-$67 per barrel range.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows. Benchmark crude prices were still on track for their biggest weekly decline in seven weeks, however, having fallen sharply earlier in the week on concerns over global oil demand amid slowing economic growth. Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was set for a weekly drop of around 5%. West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel after touching $56.36. They ended 2.6% lower in the previous session and were headed for a weekly decline of around 6%. Indications that the US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets. "The Fed backstop and the report of the US Navy shooting down an Iranian drone are providing a modicum of support for oil markets amidst a very bearish landscape," he said. The United States said on Thursday that a US Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone. Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the US economy, reviving bets the central bank may deliver a larger-than-expected cut this month. Still, the longer-term outlook for oil has grown increasingly bearish. The International Energy Agency (IEA) is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a US-China trade spat, it's executive director said on Thursday. The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters. "Macro-economic concerns, uncertainty on trade discussions and increasing oil supply from the US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING. Bank of America Merrill Lynch said any start of US-Iran talks or a US-China trade deal would reduce volatility and anchor Brent oil prices in a $60-$67 per barrel range.

Oil rises after US Navy downs Iranian drone; set for weekly fall

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own.

The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises, one of the officials, who did not want to be identified, told Reuters.

KfW's India office confirmed the discussions, though the main focus was on credit lines to support small businesses'&nbsp;solar power generation. The talks were at an early stage, KfW said.

The World Bank's India spokesperson did not reply to an email seeking comment.

The official said the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.

“We are exploring, we are having discussions with various funding agencies if something can be done (for small and medium firms),” the second official said.

The officials did not provide full details of the discussions they are having with banks, or identify all those they are talking to, but said talks are at a very early stage.

India's micro, small and medium enterprise (MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call, the second official said.

The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds.

India's 63 million firms in the micro, small and medium firm sector are responsible for more than a quarter of the country's manufacturing and services output, and must be re-energised for Prime Minister Narendra Modi's government to kick-start the economy.&nbsp;

Gross domestic product growth fell to a five-year low of 5.8 per cent&nbsp;in the January-March quarter, well below the 8 per cent-plus rates that the government is targeting.

But credit availability for small and medium firms, which also account for about 45 per cent&nbsp;of India's total exports, has worsened due to a liquidity crisis in the country's shadow banking industry that has seen big lenders struggling to remain solvent.&nbsp;

State-owned banks, which dominate the sector, have not been able to drive increased lending because they are burdened with more than $145 billion in bad loans.

This has led to a severe credit squeeze for smaller firms. They pay up to 17 per cent&nbsp;annual interest on loans from banks, while the shadow banks, which are also known as non-banking financial companies (NBFCS) can charge as much as 20 per cent.

Last month, a study by a Reserve Bank of India panel said the overall deficit in credit for the MSME sector is estimated at about 20 trillion rupees to 25 trillion rupees.&nbsp;

But lending to such firms can be risky as some lack proper financial information, such as historical cash flow data, which makes challenging for banks to assess the credit risks.

To mitigate such risks for foreign banks, the loans would be given sovereign guarantees and be routed through Indian government agencies such as the Small Industries Development Bank of India, the first official said. 
&nbsp;

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own.

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises, one of the officials, who did not want to be identified, told Reuters. KfW's India office confirmed the discussions, though the main focus was on credit lines to support small businesses' solar power generation. The talks were at an early stage, KfW said. The World Bank's India spokesperson did not reply to an email seeking comment. The official said the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation. “We are exploring, we are having discussions with various funding agencies if something can be done (for small and medium firms),” the second official said. The officials did not provide full details of the discussions they are having with banks, or identify all those they are talking to, but said talks are at a very early stage. India's micro, small and medium enterprise (MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call, the second official said. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. India's 63 million firms in the micro, small and medium firm sector are responsible for more than a quarter of the country's manufacturing and services output, and must be re-energised for Prime Minister Narendra Modi's government to kick-start the economy. Gross domestic product growth fell to a five-year low of 5.8 per cent in the January-March quarter, well below the 8 per cent-plus rates that the government is targeting. But credit availability for small and medium firms, which also account for about 45 per cent of India's total exports, has worsened due to a liquidity crisis in the country's shadow banking industry that has seen big lenders struggling to remain solvent. State-owned banks, which dominate the sector, have not been able to drive increased lending because they are burdened with more than $145 billion in bad loans. This has led to a severe credit squeeze for smaller firms. They pay up to 17 per cent annual interest on loans from banks, while the shadow banks, which are also known as non-banking financial companies (NBFCS) can charge as much as 20 per cent. Last month, a study by a Reserve Bank of India panel said the overall deficit in credit for the MSME sector is estimated at about 20 trillion rupees to 25 trillion rupees. But lending to such firms can be risky as some lack proper financial information, such as historical cash flow data, which makes challenging for banks to assess the credit risks. To mitigate such risks for foreign banks, the loans would be given sovereign guarantees and be routed through Indian government agencies such as the Small Industries Development Bank of India, the first official said.

Government seeks to tap foreign lenders for loans to its small firms: Report

<a href="https://www.wionews.com/business-economy/sensex-tanks-over-500-points-auto-stock-suffer-the-most-237078">Indian shares fell sharply on Friday afternoon</a> to close at their worst levels since mid-May, as investors fretted over weak corporate earnings and the government's refusal to tweak the surcharge on foreign investors.

The broader NSE Nifty dropped 1.53 per cent to 11,419.25, while the benchmark BSE&nbsp;Sensex&nbsp;closed 1.44 per cent lower at 38,337.01. The indexes posted their second straight weekly loss.

Whatever hopes there were around the finance minister removing the surcharge on foreign investors have been dashed, said Neeraj Dewan, a director with Quantum Securities, New Delhi, adding that sentiment had also been dampened by weak earnings by some lenders.

Finance Minister Nirmala Sitharaman said on Thursday that foreign portfolio investors could instead register as companies to avoid a new tax surcharge imposed on individual tax payers as well as trusts in the budget for the fiscal year that began on April 1.

Corporate earnings for the June quarter have also failed to impress investors, with several lenders flagging stress in their books. IT heavyweight Tata Consultancy Services Ltd, which kicked off the results season last week, also reported lower margins.

Financial and auto stocks accounted for most of the losses.

Bajaj Finance Ltd declined 4.2 per cent, while Indiabulls Housing Finance Ltd dropped 3.7 per cent.

RBL Bank Ltd plunged 13.7 per cent to its lowest close since Oct. 29 after the lender highlighted risks to its asset quality, despite reporting a 41 per cent&nbsp;jump in quarterly profit.

Larger rival Yes Bank Ltd reported a weak quarter earlier this week, sparking a sell-off in its stock. Its shares declined 3 per cent&nbsp;in the current session.

Auto maker Mahindra and Mahindra Ltd was the biggest loser in the market, sliding 4.4 per cent to its lowest close since Feb. 2016, while peers Tata Motors Ltd and Eicher Motors Ltd dropped 3.7 per cent-4 per cent, driving the Nifty Auto index 3.3 per cent lower.

Meanwhile, electricity producer NTPC Ltd was the top gainer among the seven stocks in the green on the NSE Nifty, closing 2.2 per cent higher.

The Mumbai market moved inversely to its global peers, which rose as investors bet on a US&nbsp;interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one. 
&nbsp;

Indian shares fell sharply on Friday afternoon to close at their worst levels since mid-May, as investors fretted over weak corporate earnings and the government's refusal to tweak the surcharge on foreign investors.

Indian shares fell sharply on Friday afternoon to close at their worst levels since mid-May, as investors fretted over weak corporate earnings and the government's refusal to tweak the surcharge on foreign investors. The broader NSE Nifty dropped 1.53 per cent to 11,419.25, while the benchmark BSE Sensex closed 1.44 per cent lower at 38,337.01. The indexes posted their second straight weekly loss. Whatever hopes there were around the finance minister removing the surcharge on foreign investors have been dashed, said Neeraj Dewan, a director with Quantum Securities, New Delhi, adding that sentiment had also been dampened by weak earnings by some lenders. Finance Minister Nirmala Sitharaman said on Thursday that foreign portfolio investors could instead register as companies to avoid a new tax surcharge imposed on individual tax payers as well as trusts in the budget for the fiscal year that began on April 1. Corporate earnings for the June quarter have also failed to impress investors, with several lenders flagging stress in their books. IT heavyweight Tata Consultancy Services Ltd, which kicked off the results season last week, also reported lower margins. Financial and auto stocks accounted for most of the losses. Bajaj Finance Ltd declined 4.2 per cent, while Indiabulls Housing Finance Ltd dropped 3.7 per cent. RBL Bank Ltd plunged 13.7 per cent to its lowest close since Oct. 29 after the lender highlighted risks to its asset quality, despite reporting a 41 per cent jump in quarterly profit. Larger rival Yes Bank Ltd reported a weak quarter earlier this week, sparking a sell-off in its stock. Its shares declined 3 per cent in the current session. Auto maker Mahindra and Mahindra Ltd was the biggest loser in the market, sliding 4.4 per cent to its lowest close since Feb. 2016, while peers Tata Motors Ltd and Eicher Motors Ltd dropped 3.7 per cent-4 per cent, driving the Nifty Auto index 3.3 per cent lower. Meanwhile, electricity producer NTPC Ltd was the top gainer among the seven stocks in the green on the NSE Nifty, closing 2.2 per cent higher. The Mumbai market moved inversely to its global peers, which rose as investors bet on a US interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one.

Nifty, Sensex see heavy selloff, close at worst levels since mid-May

A key gauge of <a href="https://www.wionews.com/world/chinese-people-have-freedom-of-religion-us-should-stop-using-issue-of-religion-to-interfere-china-236881">China</a>'s debt has topped 300 per cent&nbsp;of gross domestic product, according to the Institute of International Finance (IIF), as Beijing steps up support for the cooling economy while trying to contain financial risks.

China's total corporate, household and government debt rose to 303 per cent&nbsp;of GDP in the first quarter of 2019, from 297 per cent&nbsp;in the same period a year earlier, the IIF said in a report this week which highlighted rising debt levels worldwide.

The IIF is a private global financial industry association, based in Washington.

"While authorities' efforts to curb shadow bank lending (particularly to smaller companies) have prompted a cutback in non-financial corporate debt, net borrowing in other sectors has brought China's total debt to over $40 trillion - some 15 per cent&nbsp;of all global debt," the report said.

"Of note, onshore bond issuance suggests a big pickup in borrowing by local governments and banks this year."

China's economic growth slowed to 6.2 per cent&nbsp;in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting <a href="https://www.wionews.com/world/pompeo-calls-chinas-treatment-of-uighurs-stain-of-the-century-237014">US&nbsp;trade pressure</a>.

Watch:&nbsp;China's economic growth slowest in 27 years

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/china-economic-growth-slowest-in-27-years-236265/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

To revive investment and protect jobs, Beijing has been encouraging banks to lend more, particularly to struggling smaller firms. It has also unveiled billions of dollars in tax cuts and infrastructure spending.

In the first half of this year, local governments' total net bond issuance reached 2.1765 trillion yuan ($316.5 billion), the finance ministry said on Tuesday.

Chinese officials have said repeatedly said debt risks are manageable overall.

A key gauge of China's debt has topped 300 per cent of gross domestic product, according to the Institute of International Finance (IIF), as Beijing steps up support for the cooling economy while trying to contain financial risks.

A key gauge of China's debt has topped 300 per cent of gross domestic product, according to the Institute of International Finance (IIF), as Beijing steps up support for the cooling economy while trying to contain financial risks. China's total corporate, household and government debt rose to 303 per cent of GDP in the first quarter of 2019, from 297 per cent in the same period a year earlier, the IIF said in a report this week which highlighted rising debt levels worldwide. The IIF is a private global financial industry association, based in Washington. "While authorities' efforts to curb shadow bank lending (particularly to smaller companies) have prompted a cutback in non-financial corporate debt, net borrowing in other sectors has brought China's total debt to over $40 trillion - some 15 per cent of all global debt," the report said. "Of note, onshore bond issuance suggests a big pickup in borrowing by local governments and banks this year." China's economic growth slowed to 6.2 per cent in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure. Watch: China's economic growth slowest in 27 years To revive investment and protect jobs, Beijing has been encouraging banks to lend more, particularly to struggling smaller firms. It has also unveiled billions of dollars in tax cuts and infrastructure spending. In the first half of this year, local governments' total net bond issuance reached 2.1765 trillion yuan ($316.5 billion), the finance ministry said on Tuesday. Chinese officials have said repeatedly said debt risks are manageable overall.

China's debt tops 300% of GDP, now 15% of global total: Institute of International Finance