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The benchmark BSE Sensex cracked over 400 points and the NSE Nifty dropped below the 12,000 level in afternoon session Thursday tracking losses in financial stocks after the <a href="https://www.wionews.com/business-economy/reserve-bank-cuts-rates-lowers-gdp-growth-forecast-to-7-in-fy20-224861">Reserve Bank cut its key interest rates</a> for the third time in a row.

The 30-share index was trading 39,627.84 and the broader Nifty fell to 11,861.85 points at around 1:50 pm.

Top losers in the Sensex pack include IndusInd Bank, Yes Bank, Vedanta, SBI, L&amp;T, M&amp;M, Tata Steel, RIL, TCS, ICICI Bank and HDFC twins, shedding up to 5 per cent.

On the other hand, Asian Paints, Coal India, HUL, PowerGrid, HCL Tech and Infosys were trading up to 2 per cent higher.

According to traders, investor sentiment took a hit after the <a href="https://www.wionews.com/business-economy/rbi-cuts-interest-rates-to-9-year-low-expects-banks-to-quickly-lower-home-auto-loan-emis-224911">RBI</a> lowered its benchmark lending rate to nearly a nine-year low of 5.75 per cent.

Slashing benchmark lending rates for the third time this year, the RBI cut its repo rate by 0.25 per cent Thursday and said its future monetary policy stance will be more accommodative.

The central bank also lowered the economic growth forecast for the current fiscal to 7 per cent due to slowdown in domestic activities and escalation in global trade war.

"RBI reduced repo rate by 25 bps as expected. The change in stance to 'accommodative' was a bit of a surprise. Debt markets will take this as a significant positive move though most of the rate cut cycle is probably over," said Suvodeep Rakshit, Sr. Economist, Kotak Institutional Equities.

"The tone of the RBI policy was dovish and highlights the concerns on growth. We maintain our call for another 25 bps rate cut in August factoring in the benign inflation trajectory and the growing concerns on growth," Rakshit added.

On the currency front, the rupee was trading 4 paise lower at 69.30 against the US dollar.

The benchmark BSE Sensex cracked over 400 points and the NSE Nifty dropped below the 12,000 level in afternoon session Thursday tracking losses in financial stocks after the Reserve Bank cut its key interest rates for the third time in a row.

The benchmark BSE Sensex cracked over 400 points and the NSE Nifty dropped below the 12,000 level in afternoon session Thursday tracking losses in financial stocks after the Reserve Bank cut its key interest rates for the third time in a row. The 30-share index was trading 39,627.84 and the broader Nifty fell to 11,861.85 points at around 1:50 pm. Top losers in the Sensex pack include IndusInd Bank, Yes Bank, Vedanta, SBI, L&T, M&M, Tata Steel, RIL, TCS, ICICI Bank and HDFC twins, shedding up to 5 per cent. On the other hand, Asian Paints, Coal India, HUL, PowerGrid, HCL Tech and Infosys were trading up to 2 per cent higher. According to traders, investor sentiment took a hit after the RBI lowered its benchmark lending rate to nearly a nine-year low of 5.75 per cent. Slashing benchmark lending rates for the third time this year, the RBI cut its repo rate by 0.25 per cent Thursday and said its future monetary policy stance will be more accommodative. The central bank also lowered the economic growth forecast for the current fiscal to 7 per cent due to slowdown in domestic activities and escalation in global trade war. "RBI reduced repo rate by 25 bps as expected. The change in stance to 'accommodative' was a bit of a surprise. Debt markets will take this as a significant positive move though most of the rate cut cycle is probably over," said Suvodeep Rakshit, Sr. Economist, Kotak Institutional Equities. "The tone of the RBI policy was dovish and highlights the concerns on growth. We maintain our call for another 25 bps rate cut in August factoring in the benign inflation trajectory and the growing concerns on growth," Rakshit added. On the currency front, the rupee was trading 4 paise lower at 69.30 against the US dollar.

Sensex tanks over 400 points after RBI policy outcome; financial stocks drag

In a move that may lead to lower home, auto and other loan EMIs, the<a href="https://www.wionews.com/business-economy/reserve-bank-cuts-rates-lowers-gdp-growth-forecast-to-7-in-fy20-224861"> RBI Thursday cut interest rates for the third time this year</a> by 25 basis points to their lowest level in nine years and signalled more easing as it looked to support an economy growing at the slowest pace since the BJP first came to power in 2014.

The Reserve Bank of India (RBI) cut the repo rate to 5.75 per cent and reverse repo rate to 5.50 per cent and expected banks to transmit these to home, auto and other loan borrowers faster.

With all the six members of the Monetary Policy Committee (MPC) voting unanimously for a rate cut and switching of its stance to "accommodative" from neutral, RBI Governor Shaktikanta Das said the shift in the stance meant that an increase in interest rates is "off the table."

He wanted banks to expedite the transmission of the current reduction in rates as well as similar ones that happened in February and April.

In three back-to-back bi-monthly monetary policies, the RBI has lowered interest rates by 75 basis points (0.75 percentage point).

With India's GDP growth slipping to a five-year low of 5.8 per cent in the January-March quarter - the first instance of growth falling below China's in last few quarters, the RBI lowered its growth forecast for the economy to 7 per cent from the April view of 7.2 per cent for the 2019-20 April-March fiscal year. 
"Growth impulses have weakened significantly," the RBI said in the monetary policy statement.

The reduction in interest rate will help boost credit growth, helping arrest the slowdown in the economy ahead of the new Finance Minister Nirmala Sitharaman presenting Modi-2.0 government's first budget next month that is widely expected to announce measures to generate jobs and revive the economy.

While inflation remained below its medium-term target to give "scope" to the MPC "to accommodate growth concerns by supporting efforts to boost aggregate demand", the RBI marginally raised its retail inflation outlook for the first half of 2019-20 to a range of 3-3.1 per cent from 2.9-3 per cent that it had outlined in last monetary policy in April, due to a broad-based pickup in food prices.

It, however, slightly trimmed its inflation outlook for the second half of the year to 3.4-3.7 per cent from its earlier projection of 3.5-3.8 per cent.

"The headline inflation trajectory remains below the target mandated to the MPC even after taking into account the expected transmission of the past two policy rate cuts. Hence, there is scope for the MPC to accommodate growth concerns by supporting efforts to boost aggregate demand, and in particular, reinvigorate private investment activity, while remaining consistent with its flexible inflation targeting mandate," the MPC said.

RBI's medium-term inflation target is 4 per cent.

"A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," it said.

With the 0.25 percentage point cut Thursday, the repo rate, at which the central bank lends to the system, comes down to 5.75 per cent, as was widely expected. Earlier, the repo rate was at 5.75 per cent in July 2010.

Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent.

MPC noted that political stability, high capacity utilisation, buoyant stock markets, an uptick in business expectations in the second quarter and financial flows are positive from a growth perspective.

It made its disappointment clear at the transmission of rate cuts, saying the weighted average lending rate has gone down by only 0.21 per cent, while the same for older loans has increased 0.04 per cent, as against policy rate cuts of 0.50 percentage point.

The central bank also announced doing away with charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers.

In a move that may lead to lower home, auto and other loan EMIs, the RBI Thursday cut interest rates for the third time this year by 25 basis points to their lowest level in nine years and signalled more easing as it looked to support an economy growing at the slowest pace since the BJP first came to power in 2014.

In a move that may lead to lower home, auto and other loan EMIs, the RBI Thursday cut interest rates for the third time this year by 25 basis points to their lowest level in nine years and signalled more easing as it looked to support an economy growing at the slowest pace since the BJP first came to power in 2014. The Reserve Bank of India (RBI) cut the repo rate to 5.75 per cent and reverse repo rate to 5.50 per cent and expected banks to transmit these to home, auto and other loan borrowers faster. With all the six members of the Monetary Policy Committee (MPC) voting unanimously for a rate cut and switching of its stance to "accommodative" from neutral, RBI Governor Shaktikanta Das said the shift in the stance meant that an increase in interest rates is "off the table." He wanted banks to expedite the transmission of the current reduction in rates as well as similar ones that happened in February and April. In three back-to-back bi-monthly monetary policies, the RBI has lowered interest rates by 75 basis points (0.75 percentage point). With India's GDP growth slipping to a five-year low of 5.8 per cent in the January-March quarter - the first instance of growth falling below China's in last few quarters, the RBI lowered its growth forecast for the economy to 7 per cent from the April view of 7.2 per cent for the 2019-20 April-March fiscal year. "Growth impulses have weakened significantly," the RBI said in the monetary policy statement. The reduction in interest rate will help boost credit growth, helping arrest the slowdown in the economy ahead of the new Finance Minister Nirmala Sitharaman presenting Modi-2.0 government's first budget next month that is widely expected to announce measures to generate jobs and revive the economy. While inflation remained below its medium-term target to give "scope" to the MPC "to accommodate growth concerns by supporting efforts to boost aggregate demand", the RBI marginally raised its retail inflation outlook for the first half of 2019-20 to a range of 3-3.1 per cent from 2.9-3 per cent that it had outlined in last monetary policy in April, due to a broad-based pickup in food prices. It, however, slightly trimmed its inflation outlook for the second half of the year to 3.4-3.7 per cent from its earlier projection of 3.5-3.8 per cent. "The headline inflation trajectory remains below the target mandated to the MPC even after taking into account the expected transmission of the past two policy rate cuts. Hence, there is scope for the MPC to accommodate growth concerns by supporting efforts to boost aggregate demand, and in particular, reinvigorate private investment activity, while remaining consistent with its flexible inflation targeting mandate," the MPC said. RBI's medium-term inflation target is 4 per cent. "A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," it said. With the 0.25 percentage point cut Thursday, the repo rate, at which the central bank lends to the system, comes down to 5.75 per cent, as was widely expected. Earlier, the repo rate was at 5.75 per cent in July 2010. Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent. MPC noted that political stability, high capacity utilisation, buoyant stock markets, an uptick in business expectations in the second quarter and financial flows are positive from a growth perspective. It made its disappointment clear at the transmission of rate cuts, saying the weighted average lending rate has gone down by only 0.21 per cent, while the same for older loans has increased 0.04 per cent, as against policy rate cuts of 0.50 percentage point. The central bank also announced doing away with charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers.

RBI cuts interest rates to 9-year low, expects banks to quickly lower home, auto loan EMIs

The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court.

On April 2, the Supreme Court had declared as "ultra vires" the February 12 circular that mandated banks to label even a day's default as NPA.

"The revised circular on February 12 on NPA classification will be issued very shortly, in three to four days," Das told reporters at the customary post-policy announcement.

The RBI on February 12, 2018, issued a framework on resolution of stressed assets under which banks were asked to disclose defaults even of a day and have to find a resolution plan within 180 days in case of large account of Rs 2,000 crore and above failing which it would send for bankruptcy.

The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court.

The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court. On April 2, the Supreme Court had declared as "ultra vires" the February 12 circular that mandated banks to label even a day's default as NPA. "The revised circular on February 12 on NPA classification will be issued very shortly, in three to four days," Das told reporters at the customary post-policy announcement. The RBI on February 12, 2018, issued a framework on resolution of stressed assets under which banks were asked to disclose defaults even of a day and have to find a resolution plan within 180 days in case of large account of Rs 2,000 crore and above failing which it would send for bankruptcy.

New NPA resolution norms in 3-4 days: RBI Governor Shaktikanta Das

<a href="https://www.wionews.com/business-economy/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-221236">Oil prices resumed their slide</a> on Wednesday, dragged down by a surprise gain in US inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies.

Brent futures were down 27 cents, or 0.4%, at $61.70 a barrel by 0152 GMT. They rose 1.1% on Tuesday after a near 13 per cent falls in the previous four sessions.

The US West Texas Intermediate crude was down by 32 cents, or 0.6%, at $53.16 a barrel. The US benchmark closed 0.4% higher on Tuesday.

Oil prices have fallen sharply on fears about slowing global demand but won a respite on Tuesday after a global stock market rally on hopes of a cut in US interest rates.

The US crude stocks rose unexpectedly last week, while gasoline and distillate inventories built more than expected, industry group the American Petroleum Institute said on Tuesday.

Crude inventories rose by 3.5 million barrels in the week to May 31 to 478 million, compared with analysts' expectations for a decrease of 849,000 barrels.

Official numbers from the US Energy Information Administration are due out later on Wednesday.

"It was a very bearish number and if confirmed by the EIA it will hammer prices," said Stephen Innes, managing partner at SPI Asset Management in Bangkok.

The oil market has been weighed down by concerns about slowing global growth from the US, Sino trade war and President Donald Trump's threats last week to place tariffs on Mexican imports.

To prevent oversupply and prop up the market, the Organization of the Petroleum Exporting Countries, together with allies including Russia, has been withholding production since the start of the year.

The group plans to decide later this month or in early July whether to continue the supply curbs.

But on Tuesday, the head of oil giant Rosneft, Igor Sechin, said Russia should pump at will and he would seek compensation from the government if cuts were extended.

Russia's average daily oil output has nonetheless dropped to a three-year-low after contaminated crude clogged its main export route.

Further pressuring oil prices and undermining OPEC's efforts to tighten the market has been surging US output to record highs, leading to more of its crude being exported.

"Does it make sense (for Russia) to reduce (oil output) if the U.S immediately takes (our) market share?" Sechin was quoted as saying by Interfax news agency.

"We have to defend our market share," he said.

Oil prices resumed their slide on Wednesday, dragged down by a surprise gain in US inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies.

Oil prices resumed their slide on Wednesday, dragged down by a surprise gain in US inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies. Brent futures were down 27 cents, or 0.4%, at $61.70 a barrel by 0152 GMT. They rose 1.1% on Tuesday after a near 13 per cent falls in the previous four sessions. The US West Texas Intermediate crude was down by 32 cents, or 0.6%, at $53.16 a barrel. The US benchmark closed 0.4% higher on Tuesday. Oil prices have fallen sharply on fears about slowing global demand but won a respite on Tuesday after a global stock market rally on hopes of a cut in US interest rates. The US crude stocks rose unexpectedly last week, while gasoline and distillate inventories built more than expected, industry group the American Petroleum Institute said on Tuesday. Crude inventories rose by 3.5 million barrels in the week to May 31 to 478 million, compared with analysts' expectations for a decrease of 849,000 barrels. Official numbers from the US Energy Information Administration are due out later on Wednesday. "It was a very bearish number and if confirmed by the EIA it will hammer prices," said Stephen Innes, managing partner at SPI Asset Management in Bangkok. The oil market has been weighed down by concerns about slowing global growth from the US, Sino trade war and President Donald Trump's threats last week to place tariffs on Mexican imports. To prevent oversupply and prop up the market, the Organization of the Petroleum Exporting Countries, together with allies including Russia, has been withholding production since the start of the year. The group plans to decide later this month or in early July whether to continue the supply curbs. But on Tuesday, the head of oil giant Rosneft, Igor Sechin, said Russia should pump at will and he would seek compensation from the government if cuts were extended. Russia's average daily oil output has nonetheless dropped to a three-year-low after contaminated crude clogged its main export route. Further pressuring oil prices and undermining OPEC's efforts to tighten the market has been surging US output to record highs, leading to more of its crude being exported. "Does it make sense (for Russia) to reduce (oil output) if the U.S immediately takes (our) market share?" Sechin was quoted as saying by Interfax news agency. "We have to defend our market share," he said.

Oil prices fall on rise in US inventories, supply worries

China on Tuesday imposed a $23.6 million fine on US automaker Ford's joint venture for "price fixing" in violation of anti-monopoly laws, a move coinciding with growing trade tensions with the United States.

Changan Ford Motor Co. "set a minimum resale price" since 2013 for vehicles sold in the southwestern city of Chongqing that, "deprived dealers of pricing autonomy and damaged fair competition and legitimate interests of consumers", the State Administration for Market Regulation said in a statement.

The fine amounted to four per cent on the company's sales value in Chongqing in 2018, the regulator said.

Changan Ford Motor Co. is a 50:50 joint venture between the US automaker and Chinese state-owned Changan Automobile Group. It makes Ford passenger vehicles for the domestic market.

Global carmakers have experienced sliding sales in China, the world's largest vehicle market as the country veers toward an ultra-competitive electric future.

After years of strong growth, car sales declined last year for the first time since the 1990s, hit by a slowing economy, US trade tension, and a Chinese crackdown on shady credit practices that have crimped car-financing channels. 
Sales dipped 2.8 per cent in 2018 to 28.1 million units, according to that China Association of Automobile Manufacturers, a pace that has accelerated in recent months.

Government subsidies and pollution concerns have also pushed Chinese consumers to drop gas-guzzling vehicles in favour of electric cars. 
&nbsp;

China on Tuesday imposed a $23.6 million fine on US automaker Ford's joint venture for "price fixing" in violation of anti-monopoly laws, a move coinciding with growing trade tensions with the United States.

China on Tuesday imposed a $23.6 million fine on US automaker Ford's joint venture for "price fixing" in violation of anti-monopoly laws, a move coinciding with growing trade tensions with the United States. Changan Ford Motor Co. "set a minimum resale price" since 2013 for vehicles sold in the southwestern city of Chongqing that, "deprived dealers of pricing autonomy and damaged fair competition and legitimate interests of consumers", the State Administration for Market Regulation said in a statement. The fine amounted to four per cent on the company's sales value in Chongqing in 2018, the regulator said. Changan Ford Motor Co. is a 50:50 joint venture between the US automaker and Chinese state-owned Changan Automobile Group. It makes Ford passenger vehicles for the domestic market. Global carmakers have experienced sliding sales in China, the world's largest vehicle market as the country veers toward an ultra-competitive electric future. After years of strong growth, car sales declined last year for the first time since the 1990s, hit by a slowing economy, US trade tension, and a Chinese crackdown on shady credit practices that have crimped car-financing channels. Sales dipped 2.8 per cent in 2018 to 28.1 million units, according to that China Association of Automobile Manufacturers, a pace that has accelerated in recent months. Government subsidies and pollution concerns have also pushed Chinese consumers to drop gas-guzzling vehicles in favour of electric cars.

China fines Ford joint venture, citing anti-monopoly law

Asian markets rose Wednesday, tracking rallies on <a href="https://www.wionews.com/business-economy/wall-street-shudders-as-us-china-trade-war-intensifies-218493">Wall Street</a> after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth.

Speaking in Chicago on Tuesday, Fed Chair Jerome Powell admitted that ongoing trade conflicts had dimmed the growth outlook, remarks widely seen as opening the door to a potential interest rate cut.

"We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said.

The comments signal a shift in the policy of the Fed, which has kept interest rates unchanged in 2019 after a series of hikes in 2018 and previous years.&nbsp;

"Powell changed the Fed messaging just enough to avoid signalling a shift from patient to panicked. it was music to US investors' ears who have been starved of positive news of late", said Stephen Innes, Managing Partner at SPI Asset Management.

The Dow closed with gains of 2.1 per cent. 
In Asia, Tokyo jumped 1.9 per cent, while Hong Kong was up 0.8 per cent. Shanghai and Seoul edged up 0.3 per cent and Singapore climbed 0.6 per cent.

Sydney also rose 0.6 per cent even as government statistics showed near-zero growth the previous quarter, underscoring fears for the economy.&nbsp;

The Australian economy has avoided recession for almost 28 years, but a housing slump, rising unemployment and below-target inflation prompted the central bank on Tuesday to cut its key interest rate to a historic low of 1.25 per cent.

&nbsp;Economy at crossroads 
The buying was also supported by more favourable news on the trade front, with Beijing backing negotiations to resolve its spat with Washington and congressional Republicans opposing President Donald Trump's tariff threats against Mexico.

Worries over the US-China trade war "have eased following reports that China's commerce ministry said the trade friction should be resolved through dialogue", Okasan Online Securities' chief strategist Yoshihiro Ito said in a commentary. &nbsp; 
But a new World Bank report showing reduced global growth forecasts for the year suggested that investors could expect the trade headwinds to continue for some time yet.

The world economy is now expected to expand by 2.6 per cent this year, three-tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report.

"The bottom line is that the global economy is coming to a crossroads," World Bank economist Ayhan Kose, who oversaw the report, told AFP.

"We need to find ways to stabilise growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP.

The US-China trade spat has seen the top two superpowers deploy tit-for-tat tariffs on trade worth hundreds of billions of dollars, with no date set for stalled talks to resume.

But there are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit in Japan this month to jump-start negotiations. 
&nbsp;Key figures around 0240 GMT - 
Tokyo - Nikkei 225: UP 1.9 percent at 20,800.64 (break)

Hong Kong - Hang Seng: UP 0.8 percent at 26,978.31

Shanghai - Composite: UP 0.3 percent at 2,870.61

Pound/dollar: UP at $1.2707 from $1.2699 at 2100 GMT Tuesday&nbsp;

Euro/pound: UP at 88.63 pence from 88.61 pence&nbsp;

Euro/dollar: UP at $1.1263 from $1.1254

Dollar/yen: DOWN at 108.05 yen from 108.14 yen&nbsp;

Oil - Brent Crude: DOWN 24 cents at $61.73 per barrel

Oil - West Texas Intermediate: DOWN 29 cents at $53.19 per barrel

New York - Dow: UP 2.1 percent at 25,332.18 (close)

London - FTSE 100: UP 0.4 percent at 7,214.29 (close)

Asian markets rose Wednesday, tracking rallies on Wall Street after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth.

Asian markets rose Wednesday, tracking rallies on Wall Street after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth. Speaking in Chicago on Tuesday, Fed Chair Jerome Powell admitted that ongoing trade conflicts had dimmed the growth outlook, remarks widely seen as opening the door to a potential interest rate cut. "We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said. The comments signal a shift in the policy of the Fed, which has kept interest rates unchanged in 2019 after a series of hikes in 2018 and previous years. "Powell changed the Fed messaging just enough to avoid signalling a shift from patient to panicked. it was music to US investors' ears who have been starved of positive news of late", said Stephen Innes, Managing Partner at SPI Asset Management. The Dow closed with gains of 2.1 per cent. In Asia, Tokyo jumped 1.9 per cent, while Hong Kong was up 0.8 per cent. Shanghai and Seoul edged up 0.3 per cent and Singapore climbed 0.6 per cent. Sydney also rose 0.6 per cent even as government statistics showed near-zero growth the previous quarter, underscoring fears for the economy. The Australian economy has avoided recession for almost 28 years, but a housing slump, rising unemployment and below-target inflation prompted the central bank on Tuesday to cut its key interest rate to a historic low of 1.25 per cent. Economy at crossroads The buying was also supported by more favourable news on the trade front, with Beijing backing negotiations to resolve its spat with Washington and congressional Republicans opposing President Donald Trump's tariff threats against Mexico. Worries over the US-China trade war "have eased following reports that China's commerce ministry said the trade friction should be resolved through dialogue", Okasan Online Securities' chief strategist Yoshihiro Ito said in a commentary. But a new World Bank report showing reduced global growth forecasts for the year suggested that investors could expect the trade headwinds to continue for some time yet. The world economy is now expected to expand by 2.6 per cent this year, three-tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report. "The bottom line is that the global economy is coming to a crossroads," World Bank economist Ayhan Kose, who oversaw the report, told AFP. "We need to find ways to stabilise growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP. The US-China trade spat has seen the top two superpowers deploy tit-for-tat tariffs on trade worth hundreds of billions of dollars, with no date set for stalled talks to resume. But there are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit in Japan this month to jump-start negotiations. Key figures around 0240 GMT - Tokyo - Nikkei 225: UP 1.9 percent at 20,800.64 (break) Hong Kong - Hang Seng: UP 0.8 percent at 26,978.31 Shanghai - Composite: UP 0.3 percent at 2,870.61 Pound/dollar: UP at $1.2707 from $1.2699 at 2100 GMT Tuesday Euro/pound: UP at 88.63 pence from 88.61 pence Euro/dollar: UP at $1.1263 from $1.1254 Dollar/yen: DOWN at 108.05 yen from 108.14 yen Oil - Brent Crude: DOWN 24 cents at $61.73 per barrel Oil - West Texas Intermediate: DOWN 29 cents at $53.19 per barrel New York - Dow: UP 2.1 percent at 25,332.18 (close) London - FTSE 100: UP 0.4 percent at 7,214.29 (close)

Asia markets climb as Fed signals possible rate cut

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market.

"Despite the RBI cutting policy rate by 50 basis points so far in 2019, banks have not adjusted their lending and deposit rate accordingly," it said in a statement.

"On the contrary, a number of banks have raised their deposit rates to mobilise funds."

At the core of this mismatch between the RBI's action and the banks'&nbsp;inability to pass on the benefit to borrowers is the slowdown in household savings, said Ind-Ra.

Increased government borrowing and elevated small savings rate have rendered deposit and investment mobilisation by banks and non-banking finance companies expensive.

Also, India's consumption demand is still not a pronounced credit-fuelled or leveraged demand. Outstanding personal loan (excluding housing loan) and private final consumption expenditure ratio was 35.7 per cent in the fourth quarter of fiscal year-end 19 (28.2 per cent at first quarter fiscal year-end 12).

However, Ind-Ra believes that more than the rate cut, it is the transmission of rate cut into the economy that has emerged as a bigger challenge.

"It is well known that the impact of the monetary policy on the Indian economy is felt with a significant lag, but the situation at the current juncture has become further complicated due to the ongoing crisis in both -&nbsp;the banking and the shadow banking sectors."

While banks are struggling with high non-performing assets, non-banking finance companies are struggling with solvency issues leading to a credit freeze.GDP growth fell to a five-year low in FY19.

Even on a quarterly basis, GDP witnessed a growth slowdown over the fourth quarter of FY18 to the fourth quarter of FY19, continuing the trend observed over the first quarter of FY17 to the first quarter of FY18.On the other hand, inflation is undershooting RBI's targeted four per cent mark consecutively for nine months now.

With the softening of global crude oil prices and adequate food grain stock, there is clearly scope for the RBI to announce at least a 25 basis points rate cut.

This will be the third consecutive rate cut adding up to 75 basis points reduction in the policy rate so far in 2019.&nbsp;

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market.

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market. "Despite the RBI cutting policy rate by 50 basis points so far in 2019, banks have not adjusted their lending and deposit rate accordingly," it said in a statement. "On the contrary, a number of banks have raised their deposit rates to mobilise funds." At the core of this mismatch between the RBI's action and the banks' inability to pass on the benefit to borrowers is the slowdown in household savings, said Ind-Ra. Increased government borrowing and elevated small savings rate have rendered deposit and investment mobilisation by banks and non-banking finance companies expensive. Also, India's consumption demand is still not a pronounced credit-fuelled or leveraged demand. Outstanding personal loan (excluding housing loan) and private final consumption expenditure ratio was 35.7 per cent in the fourth quarter of fiscal year-end 19 (28.2 per cent at first quarter fiscal year-end 12). However, Ind-Ra believes that more than the rate cut, it is the transmission of rate cut into the economy that has emerged as a bigger challenge. "It is well known that the impact of the monetary policy on the Indian economy is felt with a significant lag, but the situation at the current juncture has become further complicated due to the ongoing crisis in both - the banking and the shadow banking sectors." While banks are struggling with high non-performing assets, non-banking finance companies are struggling with solvency issues leading to a credit freeze.GDP growth fell to a five-year low in FY19. Even on a quarterly basis, GDP witnessed a growth slowdown over the fourth quarter of FY18 to the fourth quarter of FY19, continuing the trend observed over the first quarter of FY17 to the first quarter of FY18.On the other hand, inflation is undershooting RBI's targeted four per cent mark consecutively for nine months now. With the softening of global crude oil prices and adequate food grain stock, there is clearly scope for the RBI to announce at least a 25 basis points rate cut. This will be the third consecutive rate cut adding up to 75 basis points reduction in the policy rate so far in 2019.

Reserve Bank of India's interest rate cut in monetary policy unlikely to stimulate growth: Report

South Korea's Samsung Electronics Co Ltd said on Wednesday it plans to cut production at a smartphone plant in China, as competition from domestic rivals squeezes its share of the world's biggest smartphone market to less than a paltry 1%.

The output reduction at the factory in the southern city of Huizhou comes just six months after Samsung said it would close its only other handset plant in China, in the northeastern city of Tianjin, in a move it said would enhance efficiency.

Samsung, the world's biggest smartphone maker, has seen its share of China's market shrink from about 20% in 2013, showed data from Strategy Analytics. The intervening years have seen a bout of anti-South Korean sentiment following a diplomatic spat, as well as a shift to local champions like Huawei Technologies Co Ltd at a time of deteriorating Sino-U.S. relations.

In the three months of 2019, however, Samsung's smartphone sales volume in China rose 40% versus the previous three months, helped strong promotion of premium models and cheaper mass-market handsets, showed an April report from Counterpoint Research.

Samsung's Wednesday statement followed a report by financial magazine Caixin saying the South Korean firm had offered voluntary redundancy for some employees at the Huizhou plant.

Samsung declined to detail the plant's capacity, staff numbers or degree of production cut when contacted by Reuters.

A spokesman in China told Reuters there would be "some adjustment to production volume and staff" based on the market situation. He declined to provide details.

The smartphone maker's share price was 1.0% higher in afternoon trade in Seoul. The KOSPI benchmark share price index was down 1.0%.

South Korea's Samsung Electronics Co Ltd said on Wednesday it plans to cut production at a smartphone plant in China, as competition from domestic rivals squeezes its share of the world's biggest smartphone market to less than a paltry 1%.

South Korea's Samsung Electronics Co Ltd said on Wednesday it plans to cut production at a smartphone plant in China, as competition from domestic rivals squeezes its share of the world's biggest smartphone market to less than a paltry 1%. The output reduction at the factory in the southern city of Huizhou comes just six months after Samsung said it would close its only other handset plant in China, in the northeastern city of Tianjin, in a move it said would enhance efficiency. Samsung, the world's biggest smartphone maker, has seen its share of China's market shrink from about 20% in 2013, showed data from Strategy Analytics. The intervening years have seen a bout of anti-South Korean sentiment following a diplomatic spat, as well as a shift to local champions like Huawei Technologies Co Ltd at a time of deteriorating Sino-U.S. relations. In the three months of 2019, however, Samsung's smartphone sales volume in China rose 40% versus the previous three months, helped strong promotion of premium models and cheaper mass-market handsets, showed an April report from Counterpoint Research. Samsung's Wednesday statement followed a report by financial magazine Caixin saying the South Korean firm had offered voluntary redundancy for some employees at the Huizhou plant. Samsung declined to detail the plant's capacity, staff numbers or degree of production cut when contacted by Reuters. A spokesman in China told Reuters there would be "some adjustment to production volume and staff" based on the market situation. He declined to provide details. The smartphone maker's share price was 1.0% higher in afternoon trade in Seoul. The KOSPI benchmark share price index was down 1.0%.

Samsung Electronics to cut China phone output as market share sinks

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening <a href="https://www.wionews.com/business-economy/india-highest-recipient-of-remittances-at-79-billion-in-2018-world-bank-208916">trade conflict, tumbling confidence</a> and increasingly skittish investment.

Although the global development lender currently expects a modest <a href="https://www.wionews.com/business-economy/china-expected-to-continue-win-win-solutions-for-world-development-world-bank-184302">recovery 2020 and 2021</a>, the bank said in its semi-annual report that a lot will have to go right for this to happen.

Instead the growing risks suggest the outlook could instead grow darker still.

The greatest danger on the horizon is the prospect of worsening trade clashes between major world economies -- a specter that rose again last week when US President Donald Trump announced fresh punitive duties on Mexican goods in a dispute over immigration policy.

The world economy is now expected to expand by 2.6 per cent this year, three tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report.

The World Bank also sounded the alarm about rising debt levels and warned emerging economies they could soon regret the decision to borrow in search of a growth boost.

Newly-installed World Bank President David Malpass, who in his previous position with the US Treasury participated in Trump's stalled trade negotiations with China, said global growth is "fragile" and the slowdown jeopardizes progress in battling world poverty.

"The global economic outlook, in both the near and long term, is confronting substantial challenges," he told reporters.

The new forecast was decidedly gloomier than the latest outlook by the International Monetary Fund, released in April, but which likewise predicted a slowdown and warned of the risks posed by trade conflicts.

"The bottom line is that the global economy is coming to a crossroads," said World Bank economist Ayhan Kose, who oversaw the report, said.

"We need to find ways to stabilize growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP.

World trade volume also is expected to drop off sharply, growing by 2.6 per cent this year, the slowest pace since the global financial crisis and a full percentage point lower than January's forecast.

In East Asia and the Pacific, total economic output is likely to drop below six per cent for the first time since the Asian financial crisis more than 20 years ago.

China's forecast is little changed, with growth projected to slow to 6.2 to per cent this year.

The forecast for the United States is unchanged, with GDP growth slowing to 2.5 per cent this year before weakening to 1.7 per cent in 2020, though still considerably stronger than other advanced economies.

But American exports to Europe and Asia have seen an "especially acute" slowdown, and conditions in the eurozone economic have "deteriorated rapidly" as exports to China, central Asia and elsewhere have shrunk, according to the report.

Latin America's top two economies, Brazil and Mexico, have taken sharp turns for the worse.&nbsp;

The report did not take Trump's latest tariff threat against Mexico into account -- it was announced Friday and is due to take effect June 10 -- but the World Bank cut the forecast by 0.3 points, calling for expansion of just 1.7 per cent in 2019.

If Trump follows through on his threat, tariffs on all Mexican goods would hit 25 per cent in October.

"The big question is, are we pushing the panic button?" Kose said.&nbsp;

"The answer at the moment is no but I think if tensions escalate further, we have to push the panic button and get ready for a much deeper slowdown."

The forecast also sliced 0.7 per cent off its outlook for Brazil, cutting it to 1.5 per cent.

Kose highlighted concerns over rising debt, saying that since 2007 sovereign debt among emerging and developing economies had risen on average by 15 per cent.

These countries should be "extremely careful" not to allow current low interest rates to entice them into overindulging in more debt, and should instead opt for more reforms that can stimulate investment.

"When you accumulate debt, it makes you more vulnerable to crisis, it limits your policy space and then ultimately, you never know when the interest rate's going to increase," he said.

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening trade conflict, tumbling confidence and increasingly skittish investment.

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening trade conflict, tumbling confidence and increasingly skittish investment. Although the global development lender currently expects a modest recovery 2020 and 2021, the bank said in its semi-annual report that a lot will have to go right for this to happen. Instead the growing risks suggest the outlook could instead grow darker still. The greatest danger on the horizon is the prospect of worsening trade clashes between major world economies -- a specter that rose again last week when US President Donald Trump announced fresh punitive duties on Mexican goods in a dispute over immigration policy. The world economy is now expected to expand by 2.6 per cent this year, three tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report. The World Bank also sounded the alarm about rising debt levels and warned emerging economies they could soon regret the decision to borrow in search of a growth boost. Newly-installed World Bank President David Malpass, who in his previous position with the US Treasury participated in Trump's stalled trade negotiations with China, said global growth is "fragile" and the slowdown jeopardizes progress in battling world poverty. "The global economic outlook, in both the near and long term, is confronting substantial challenges," he told reporters. The new forecast was decidedly gloomier than the latest outlook by the International Monetary Fund, released in April, but which likewise predicted a slowdown and warned of the risks posed by trade conflicts. "The bottom line is that the global economy is coming to a crossroads," said World Bank economist Ayhan Kose, who oversaw the report, said. "We need to find ways to stabilize growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP. World trade volume also is expected to drop off sharply, growing by 2.6 per cent this year, the slowest pace since the global financial crisis and a full percentage point lower than January's forecast. In East Asia and the Pacific, total economic output is likely to drop below six per cent for the first time since the Asian financial crisis more than 20 years ago. China's forecast is little changed, with growth projected to slow to 6.2 to per cent this year. The forecast for the United States is unchanged, with GDP growth slowing to 2.5 per cent this year before weakening to 1.7 per cent in 2020, though still considerably stronger than other advanced economies. But American exports to Europe and Asia have seen an "especially acute" slowdown, and conditions in the eurozone economic have "deteriorated rapidly" as exports to China, central Asia and elsewhere have shrunk, according to the report. Latin America's top two economies, Brazil and Mexico, have taken sharp turns for the worse. The report did not take Trump's latest tariff threat against Mexico into account -- it was announced Friday and is due to take effect June 10 -- but the World Bank cut the forecast by 0.3 points, calling for expansion of just 1.7 per cent in 2019. If Trump follows through on his threat, tariffs on all Mexican goods would hit 25 per cent in October. "The big question is, are we pushing the panic button?" Kose said. "The answer at the moment is no but I think if tensions escalate further, we have to push the panic button and get ready for a much deeper slowdown." The forecast also sliced 0.7 per cent off its outlook for Brazil, cutting it to 1.5 per cent. Kose highlighted concerns over rising debt, saying that since 2007 sovereign debt among emerging and developing economies had risen on average by 15 per cent. These countries should be "extremely careful" not to allow current low interest rates to entice them into overindulging in more debt, and should instead opt for more reforms that can stimulate investment. "When you accumulate debt, it makes you more vulnerable to crisis, it limits your policy space and then ultimately, you never know when the interest rate's going to increase," he said.

World Bank slashes global growth forecast amid deepening US-China trade conflict

Four months after announcing cab service, Blu Smart has launched electric cab service in association with Mahindra & Mahindra. Watch this video to know more.

Blu Smart launches electric cab on Mahindra E-Verito

South Korean automaker Kia Motors has decided to name its mid-sized SUV, which will be launched in India, the Seltos. The name is inspired by Greek mythology and the legend of 'Celtos' - the son of Hercules.

The company said that it has replaced C with S as the car exhibits speed, sportiness and strength.

"Seltos is all set to redefine the mid-SUV car segment with its eye-catching looks, exclusive segment first features and athletic design. We have spent a lot of time in perfecting our car to suit the taste of the Indian customers and I am glad that this originally India intended car is so perfect that it compelled us to make Seltos available globally. The car looks absolutely stunning and very closely matches the SP concept we showcased at the 2018 Auto Expo. I am confident that Kia Seltos would be an outright favourite when it hits the roads in the next few months," said Manohar Bhat, Head, Marketing and Sales, Kia Motors India.

Kia Seltos is all set to have its world premier in India on June 20 and will be launched in the second half of 2019. It will be made for the world at the company's facility in Anantapur, Andhra Pradesh.

The Seltos exterior will have distinctive details such as long hood, a strong character line on the front bumper and sharp lines pressed into the bodywork. The cabin, meanwhile, will be characterised by broad, sweeping lines and sophisticated detailing.

The Seltos will come equipped with a range of connected technologies to maximise convenience, comfort and ease of use.

Kia Motors signed a Memorandum of Understanding (MOU) with Andhra Pradesh government in April, 2017, to build a new manufacturing facility in Anantapur district. The manufacturing facility is expected to begin production in the second half of 2019 and produce approximately 300,000 units per year.

South Korean automaker Kia Motors has decided to name its mid-sized SUV, which will be launched in India, the Seltos. The name is inspired by Greek mythology and the legend of 'Celtos' - the son of Hercules.

South Korean automaker Kia Motors has decided to name its mid-sized SUV, which will be launched in India, the Seltos. The name is inspired by Greek mythology and the legend of 'Celtos' - the son of Hercules. The company said that it has replaced C with S as the car exhibits speed, sportiness and strength. "Seltos is all set to redefine the mid-SUV car segment with its eye-catching looks, exclusive segment first features and athletic design. We have spent a lot of time in perfecting our car to suit the taste of the Indian customers and I am glad that this originally India intended car is so perfect that it compelled us to make Seltos available globally. The car looks absolutely stunning and very closely matches the SP concept we showcased at the 2018 Auto Expo. I am confident that Kia Seltos would be an outright favourite when it hits the roads in the next few months," said Manohar Bhat, Head, Marketing and Sales, Kia Motors India. Kia Seltos is all set to have its world premier in India on June 20 and will be launched in the second half of 2019. It will be made for the world at the company's facility in Anantapur, Andhra Pradesh. The Seltos exterior will have distinctive details such as long hood, a strong character line on the front bumper and sharp lines pressed into the bodywork. The cabin, meanwhile, will be characterised by broad, sweeping lines and sophisticated detailing. The Seltos will come equipped with a range of connected technologies to maximise convenience, comfort and ease of use. Kia Motors signed a Memorandum of Understanding (MOU) with Andhra Pradesh government in April, 2017, to build a new manufacturing facility in Anantapur district. The manufacturing facility is expected to begin production in the second half of 2019 and produce approximately 300,000 units per year.

Kia Motors's first mid-SUV will be called Seltos, world premier on June 20

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the <a href="https://www.wionews.com/world/china-warns-its-companies-on-us-travel-rebuffs-trade-criticism-224200">US-China trade war may offer a window</a> of opportunity.

The souring of ties between the world's two largest economies will indicate the extent to which China can switch some of its giant reserve holdings to another hard currency and also point to the limitations the eurozone faces in providing a viable alternative.

In the post-World War Two era, no asset has ever fully matched US government bonds for size, liquidity and credit quality. It is the closest any global security has come to being perceived as a cash-like, risk-free asset with over $16 trillion worth of paper in circulation.

Yet, a year into a bitter tariff war, there are some signs of Beijing's discomfort at being both the United States' biggest trade adversary and one of its biggest creditors.

Recent data showed China sold more US Treasuries in March than it has in any month over the past 2-1/2 years. If that proves to be more than a one-month quirk, speculation will rise about where it is diverting those reserves, and the eurozone - the world's biggest trading bloc - tops the list of likely spots.

On size alone, eurozone government bonds appear to provide a credible landing pad: outstanding securities are almost two-thirds of the overall Treasury market.

There are signs already of greater Chinese interest in Europe -- bankers attribute record Asian demand for recent Spanish, French and Belgian debt sales to Beijing.

And China has stepped up buying debt from Europe's quasi-sovereign entities, bankers told Reuters, in particular, the European Stability Mechanism (ESM) a euro zone-guaranteed AAA/A1-rated bailout fund.

Asian investors snapped up 33 per cent&nbsp;of the ESM's recent 2 billion-euro 10-year bond, data from International Financing Review shows. Asian takeup for ESM's euro issues last year was 4 per cent-5 per cent.

But for Chinese reserve managers to shift hundreds of billions of dollars from Treasuries to Europe's single currency, the euro bloc needs to address key shortcomings.

"I find it hard to square the circle how such a huge Treasury holding can be diversified away, given the landscape we are in," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers.

"In the eurozone, there is not a big risk-free market...Twenty years down the line it may be different."

For Ahmed, the main issue is that credit risk in the bloc is not uniform. The 19 members each run their own fiscal policies, budget rules are too loosely policed to ensure adherence, and euro exit remains a theoretical possibility.

So wealthier members such as Germany remain net savers that run balanced budgets or even surpluses, while others, mostly in southern Europe, are dogged by high debt.

The resulting mix of credit and political risks make it harder to see the aggregate eurozone bond market as a true mirror of the US Treasury universe.

Ross Hutchison, a fund manager at Aberdeen Standard Investments, says it boils down to the fact the United States "has a federal nature that the euro area hasn't got yet".

Additionally, distortions stemming from years of bond-buying stimulus by the European Central Bank mean available euro government bonds are far fewer than may appear.

While euro government debt outstanding is around $9.5 trillion, the ECB is estimated to hold roughly a quarter.

And the kind of "safe" securities that reserve managers seek are even scarcer -- AAA-rated debt from Germany, the Netherlands and Luxembourg total around $2.5 trillion, less if ECB holdings are discounted. Debt from slightly lower-rated France, Belgium and Austria would add another $3 trillion.

Italy, on the other hand, has the bloc's biggest government bond market, worth $2.3 trillion. But its poor debt-to-GDP ratio, sluggish economy and populist policies make its bonds riskier and its credit rating is a notch or two above junk.

So in times of stress, investors clamour for German bonds, while in Italy, yields spike, threatening to undermine local banks that hold these securities.

Italian 10-year yields are at 2.5 per cent, versus Germany's minus 0.22 per cent.

Such risks have chipped away at the euro's fortunes as a reserve currency -- International Monetary Fund data shows it comprises 20 per cent of global central bank holdings, from 26&nbsp;per cent in 2009.

The decline is linked to the 2011 Greek debt crisis that then ravaged Spain, Italy, Portugal and Ireland, highlighting risks of default by a member state and redenomination of euro debt into a new currency.

Common bond?

European officials are keen to counter the dollar's hegemony, and at a conference last month they debated ways to win the euro a "stronger international role".

But they made no mention of the one measure that could resolve the issue at a stroke -- joint debt issuance via common euro zone bonds. Such securities would pool the bloc's risks, and offer safer securities than those from most individual nations.

Olli Rehn, Bank of Finland governor and an ECB governing council member, said last week a safe asset would help enhance the euro's international role, offering hope the issue will be on the agenda of the new European Commission later this year.

A common bond "would be more significant than the creation of another TLTRO in boosting demand for euros globally and reserve managers would be part of that story," said David Owen, chief European economist at Jefferies.

He was referring to the ECB's cheap multi-year loans.

"Maybe there will be more focus on pushing forward this agenda and taking advantage of the US and China having this trade spat," Owen added.

Others, however, note that wealthier states oppose any common bond programme, fearing they will end up footing the bill. Also, across Europe populist and anti-establishment movements are on the rise, with the agenda of slowing integration and returning power to national capitals.

Such groups grabbed a greater share of the vote in EU parliamentary elections last month, albeit less than expected.

"If anything, the trend is towards decentralisation of power," Ahmed said.

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the US-China trade war may offer a window of opportunity.

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the US-China trade war may offer a window of opportunity. The souring of ties between the world's two largest economies will indicate the extent to which China can switch some of its giant reserve holdings to another hard currency and also point to the limitations the eurozone faces in providing a viable alternative. In the post-World War Two era, no asset has ever fully matched US government bonds for size, liquidity and credit quality. It is the closest any global security has come to being perceived as a cash-like, risk-free asset with over $16 trillion worth of paper in circulation. Yet, a year into a bitter tariff war, there are some signs of Beijing's discomfort at being both the United States' biggest trade adversary and one of its biggest creditors. Recent data showed China sold more US Treasuries in March than it has in any month over the past 2-1/2 years. If that proves to be more than a one-month quirk, speculation will rise about where it is diverting those reserves, and the eurozone - the world's biggest trading bloc - tops the list of likely spots. On size alone, eurozone government bonds appear to provide a credible landing pad: outstanding securities are almost two-thirds of the overall Treasury market. There are signs already of greater Chinese interest in Europe -- bankers attribute record Asian demand for recent Spanish, French and Belgian debt sales to Beijing. And China has stepped up buying debt from Europe's quasi-sovereign entities, bankers told Reuters, in particular, the European Stability Mechanism (ESM) a euro zone-guaranteed AAA/A1-rated bailout fund. Asian investors snapped up 33 per cent of the ESM's recent 2 billion-euro 10-year bond, data from International Financing Review shows. Asian takeup for ESM's euro issues last year was 4 per cent-5 per cent. But for Chinese reserve managers to shift hundreds of billions of dollars from Treasuries to Europe's single currency, the euro bloc needs to address key shortcomings. "I find it hard to square the circle how such a huge Treasury holding can be diversified away, given the landscape we are in," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers. "In the eurozone, there is not a big risk-free market...Twenty years down the line it may be different." For Ahmed, the main issue is that credit risk in the bloc is not uniform. The 19 members each run their own fiscal policies, budget rules are too loosely policed to ensure adherence, and euro exit remains a theoretical possibility. So wealthier members such as Germany remain net savers that run balanced budgets or even surpluses, while others, mostly in southern Europe, are dogged by high debt. The resulting mix of credit and political risks make it harder to see the aggregate eurozone bond market as a true mirror of the US Treasury universe. Ross Hutchison, a fund manager at Aberdeen Standard Investments, says it boils down to the fact the United States "has a federal nature that the euro area hasn't got yet". Additionally, distortions stemming from years of bond-buying stimulus by the European Central Bank mean available euro government bonds are far fewer than may appear. While euro government debt outstanding is around $9.5 trillion, the ECB is estimated to hold roughly a quarter. And the kind of "safe" securities that reserve managers seek are even scarcer -- AAA-rated debt from Germany, the Netherlands and Luxembourg total around $2.5 trillion, less if ECB holdings are discounted. Debt from slightly lower-rated France, Belgium and Austria would add another $3 trillion. Italy, on the other hand, has the bloc's biggest government bond market, worth $2.3 trillion. But its poor debt-to-GDP ratio, sluggish economy and populist policies make its bonds riskier and its credit rating is a notch or two above junk. So in times of stress, investors clamour for German bonds, while in Italy, yields spike, threatening to undermine local banks that hold these securities. Italian 10-year yields are at 2.5 per cent, versus Germany's minus 0.22 per cent. Such risks have chipped away at the euro's fortunes as a reserve currency -- International Monetary Fund data shows it comprises 20 per cent of global central bank holdings, from 26 per cent in 2009. The decline is linked to the 2011 Greek debt crisis that then ravaged Spain, Italy, Portugal and Ireland, highlighting risks of default by a member state and redenomination of euro debt into a new currency. Common bond? European officials are keen to counter the dollar's hegemony, and at a conference last month they debated ways to win the euro a "stronger international role". But they made no mention of the one measure that could resolve the issue at a stroke -- joint debt issuance via common euro zone bonds. Such securities would pool the bloc's risks, and offer safer securities than those from most individual nations. Olli Rehn, Bank of Finland governor and an ECB governing council member, said last week a safe asset would help enhance the euro's international role, offering hope the issue will be on the agenda of the new European Commission later this year. A common bond "would be more significant than the creation of another TLTRO in boosting demand for euros globally and reserve managers would be part of that story," said David Owen, chief European economist at Jefferies. He was referring to the ECB's cheap multi-year loans. "Maybe there will be more focus on pushing forward this agenda and taking advantage of the US and China having this trade spat," Owen added. Others, however, note that wealthier states oppose any common bond programme, fearing they will end up footing the bill. Also, across Europe populist and anti-establishment movements are on the rise, with the agenda of slowing integration and returning power to national capitals. Such groups grabbed a greater share of the vote in EU parliamentary elections last month, albeit less than expected. "If anything, the trend is towards decentralisation of power," Ahmed said.

US-China trade war offers Europe chance to bank more Chinese reserves: Report

Venezuelan PDVSA's oil exports took another hit in May, following a deadline for customers to wind-down purchases in order to comply with US&nbsp;sanctions, according to documents from the state-run company and Refinitiv Eikon data.

The energy firm's exports of crude and refined products fell 17% in May from the previous month to 874,500 barrels per day (bpd), mainly due to difficulty in selling off barrels of upgraded crude that used to be bought by US&nbsp;refiners.

Venezuela has drained oil inventories since late January, when Washington imposed sanctions on PDVSA, to offset declining crude output, according to analysts. That allowed the firm to maintain exports around 1 million bpd for the following three months despite the measures.

But some customers ended purchases of Venezuelan oil in late April to comply with sanctions, leaving PDVSA with an accumulation of upgraded oil and further reducing its portfolio of regular buyers, according to the reports and data.

PDVSA did not respond to requests for comment.

In May, PDVSA shipped a total of 33 cargoes of crude and fuel, mainly to Asian destinations. Exports to India fell over a third to 187,000 bpd while shipments to China remained around 450,000 bpd. Russia's Rosneft, which takes PDVSA's barrels as repayment of billions of dollars in loans to Venezuela, was the largest recipient of the OPEC member's oil.

Europe took 8% of the total, almost the same as in April, as Spain's Repsol resumed a swap allowing it to take crude from PDVSA as a late dividend payment while sending fuel in exchange to Venezuela, according to the data.

Venezuela oil exports to Cuba grew in May to 91,000 bpd from 49,000 bpd the previous month, even though the government of US&nbsp;President Donald Trump has hardened sanctions to PDVSA's flow to the island at request of the Congress head, Juan Guaido.

The opposition leader invoked the constitution to assume the role of interim president in January after an election many called a sham that has kept Socialist President Nicolas Maduro in power.

Guaido was recognized by most Western countries as the legitimate president but has struggled to enforce his government's mandate amid a humanitarian crisis in the country. In March, the opposition-led Congress prohibited Venezuelan oil exports to Cuba, but PDVSA, still controlled by Maduro, has continued transporting oil to the island in owned and rented vessels that often switch off their transponders to avoid detection.

Venezuela's dwindling oil exports are the main reason why US&nbsp;refiners have recently struggled to find heavy crude, inflating prices of grades such as Mexico's Maya even above the US&nbsp;crude futures benchmark.

Less fuel as imports plunge over 30 per cent&nbsp;

Venezuela's imports of fuel and diluents fell to 137,500 bpd in May, well below the more than 200,000 bpd received in March and April, which brought lines of drivers to filling stations across the country waiting to refuel their vehicles.

The US&nbsp;government in March told some oil firms and traders to stop shipments of gasoline to Venezuela. In May, it also asked them to halt exports of jet fuel to the OPEC-member nation.

So far this year, Venezuela has imported about 190,000 bpd of refined products, including heavy naphtha for diluting extra-heavy oil, as well as gasoline, diesel and liquefied petroleum gas, according to the documents and data. Most fuel cargoes have been provided by Rosneft, India's Reliance Industries, Repsol and China National Petroleum Corp's unit PetroChina.

Venezuelan PDVSA's oil exports took another hit in May, following a deadline for customers to wind-down purchases in order to comply with US sanctions, according to documents from the state-run company and Refinitiv Eikon data.

Venezuelan PDVSA's oil exports took another hit in May, following a deadline for customers to wind-down purchases in order to comply with US sanctions, according to documents from the state-run company and Refinitiv Eikon data. The energy firm's exports of crude and refined products fell 17% in May from the previous month to 874,500 barrels per day (bpd), mainly due to difficulty in selling off barrels of upgraded crude that used to be bought by US refiners. Venezuela has drained oil inventories since late January, when Washington imposed sanctions on PDVSA, to offset declining crude output, according to analysts. That allowed the firm to maintain exports around 1 million bpd for the following three months despite the measures. But some customers ended purchases of Venezuelan oil in late April to comply with sanctions, leaving PDVSA with an accumulation of upgraded oil and further reducing its portfolio of regular buyers, according to the reports and data. PDVSA did not respond to requests for comment. In May, PDVSA shipped a total of 33 cargoes of crude and fuel, mainly to Asian destinations. Exports to India fell over a third to 187,000 bpd while shipments to China remained around 450,000 bpd. Russia's Rosneft, which takes PDVSA's barrels as repayment of billions of dollars in loans to Venezuela, was the largest recipient of the OPEC member's oil. Europe took 8% of the total, almost the same as in April, as Spain's Repsol resumed a swap allowing it to take crude from PDVSA as a late dividend payment while sending fuel in exchange to Venezuela, according to the data. Venezuela oil exports to Cuba grew in May to 91,000 bpd from 49,000 bpd the previous month, even though the government of US President Donald Trump has hardened sanctions to PDVSA's flow to the island at request of the Congress head, Juan Guaido. The opposition leader invoked the constitution to assume the role of interim president in January after an election many called a sham that has kept Socialist President Nicolas Maduro in power. Guaido was recognized by most Western countries as the legitimate president but has struggled to enforce his government's mandate amid a humanitarian crisis in the country. In March, the opposition-led Congress prohibited Venezuelan oil exports to Cuba, but PDVSA, still controlled by Maduro, has continued transporting oil to the island in owned and rented vessels that often switch off their transponders to avoid detection. Venezuela's dwindling oil exports are the main reason why US refiners have recently struggled to find heavy crude, inflating prices of grades such as Mexico's Maya even above the US crude futures benchmark. Less fuel as imports plunge over 30 per cent Venezuela's imports of fuel and diluents fell to 137,500 bpd in May, well below the more than 200,000 bpd received in March and April, which brought lines of drivers to filling stations across the country waiting to refuel their vehicles. The US government in March told some oil firms and traders to stop shipments of gasoline to Venezuela. In May, it also asked them to halt exports of jet fuel to the OPEC-member nation. So far this year, Venezuela has imported about 190,000 bpd of refined products, including heavy naphtha for diluting extra-heavy oil, as well as gasoline, diesel and liquefied petroleum gas, according to the documents and data. Most fuel cargoes have been provided by Rosneft, India's Reliance Industries, Repsol and China National Petroleum Corp's unit PetroChina.

Venezuela's oil exports drop 17% in May as sanctions kick in: Report

<a href="https://www.wionews.com/business-economy/ilfs-payment-default-crisis-enforcement-directorate-conducts-raid-on-former-directors-in-mumbai-220587">IL&amp;FS Financial Services</a> (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&amp;FS.

The outcome of these investigations is still pending, IFIN said, adding that it had engaged Grant Thornton to conduct a forensic audit.

In March, Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral.

On May 31, a leading daily reported that the Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&amp;FS.

The newspaper also reported that the SFIO accused IL&amp;FS's auditors and others of concealing information and falsifying accounts.

A spokesman for IL&amp;FS did not respond to a Reuters request for comment on the SFIO charges.

The series of defaults by IL&amp;FS in 2018 led to a slew of credit rating downgrades on the company and its subsidiaries and triggered a massive sell-off in stock and debt markets.

The Indian government took control of IL&amp;FS in October and replaced its board in a bid to insulate the financial system from contagion, as it feared the lender's collapse would cause "catastrophic" damage to financial markets and the economy. 
&nbsp;

IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS.

IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS. The outcome of these investigations is still pending, IFIN said, adding that it had engaged Grant Thornton to conduct a forensic audit. In March, Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral. On May 31, a leading daily reported that the Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&FS. The newspaper also reported that the SFIO accused IL&FS's auditors and others of concealing information and falsifying accounts. A spokesman for IL&FS did not respond to a Reuters request for comment on the SFIO charges. The series of defaults by IL&FS in 2018 led to a slew of credit rating downgrades on the company and its subsidiaries and triggered a massive sell-off in stock and debt markets. The Indian government took control of IL&FS in October and replaced its board in a bid to insulate the financial system from contagion, as it feared the lender's collapse would cause "catastrophic" damage to financial markets and the economy.

IL&FS unit confirms investigations by government authorities

The Nasdaq plunged Monday as tech giants <a href="https://www.wionews.com/world/us-preparing-antitrust-probe-of-google-report-223296">Alphabet/Google, Facebook and Amazon</a> suffered bruising losses on reports that US antitrust officials are stepping up oversight of Big Tech.

The Nasdaq Composite Index slumped 1.6 percent to 24,819.78, more than 10 percent below an all-time high just a month ago, a decline known as a "correction" in Wall Street parlance.

The Dow Jones Industrial Average eked out a gain of less than 0.1 per cent to finish at 24,819.78, while the broad-based S&amp;P 500 shed 0.3 per cent to settle at 2,744.45.

The Wall Street Journal, citing unnamed sources, reported that the Justice Department and Federal Trade Commission had agreed to coordinate antitrust enforcement over the biggest tech companies, with Justice taking the lead on Google and the FTC handling Facebook and some aspects of Amazon.

The report follows myriad controversies involving the companies and comes as some presidential candidates call for the giants to broken up.

Shares of Facebook plunged 7.5 per cent, Alphabet dropped 6.1 per cent and Amazon 4.6 per cent.&nbsp;

Other large technology companies also fell significantly, including Apple, Netflix, Salesforce and Microsoft.

The latest probes "could be the start of a new anti-monopoly push in the industry," said Gorilla Trades strategist Ken Berman.

The tech rout comes on the heels of a May equity sell-off as the US and China drifted further apart on trade and after US President Donald Trump announced new tariffs on all imports from Mexican starting June 10.

US manufacturing industry activity slowed further in May in the wake of the latest exchange of US and Chinese tariffs, according to a survey by the Institute for Supply Management. The organization warned that the US tariffs on Mexico could significantly dent activity.

That, along with the retreat in US construction spending in March and April, were the latest in a series of worrisome signs about the health of the US expansion.

James Bullard, a voting member of the Federal Reserve's interest rate-setting committee, said in a speech on Monday that a rate cut "may be warranted soon" given uncertainty about trade conflicts and inflation well below the Fed's two per cent target.

Most Fed officials so far have repeated the central bank's mantra that they can remain patient before deciding on the next move.

The week's calendar also includes release of the much-anticipated US jobs report for May on Friday.

The Nasdaq plunged Monday as tech giants Alphabet/Google, Facebook and Amazon suffered bruising losses on reports that US antitrust officials are stepping up oversight of Big Tech.

The Nasdaq plunged Monday as tech giants Alphabet/Google, Facebook and Amazon suffered bruising losses on reports that US antitrust officials are stepping up oversight of Big Tech. The Nasdaq Composite Index slumped 1.6 percent to 24,819.78, more than 10 percent below an all-time high just a month ago, a decline known as a "correction" in Wall Street parlance. The Dow Jones Industrial Average eked out a gain of less than 0.1 per cent to finish at 24,819.78, while the broad-based S&P 500 shed 0.3 per cent to settle at 2,744.45. The Wall Street Journal, citing unnamed sources, reported that the Justice Department and Federal Trade Commission had agreed to coordinate antitrust enforcement over the biggest tech companies, with Justice taking the lead on Google and the FTC handling Facebook and some aspects of Amazon. The report follows myriad controversies involving the companies and comes as some presidential candidates call for the giants to broken up. Shares of Facebook plunged 7.5 per cent, Alphabet dropped 6.1 per cent and Amazon 4.6 per cent. Other large technology companies also fell significantly, including Apple, Netflix, Salesforce and Microsoft. The latest probes "could be the start of a new anti-monopoly push in the industry," said Gorilla Trades strategist Ken Berman. The tech rout comes on the heels of a May equity sell-off as the US and China drifted further apart on trade and after US President Donald Trump announced new tariffs on all imports from Mexican starting June 10. US manufacturing industry activity slowed further in May in the wake of the latest exchange of US and Chinese tariffs, according to a survey by the Institute for Supply Management. The organization warned that the US tariffs on Mexico could significantly dent activity. That, along with the retreat in US construction spending in March and April, were the latest in a series of worrisome signs about the health of the US expansion. James Bullard, a voting member of the Federal Reserve's interest rate-setting committee, said in a speech on Monday that a rate cut "may be warranted soon" given uncertainty about trade conflicts and inflation well below the Fed's two per cent target. Most Fed officials so far have repeated the central bank's mantra that they can remain patient before deciding on the next move. The week's calendar also includes release of the much-anticipated US jobs report for May on Friday.

Alphabet, Facebook stocks dive over reports of US antitrust move against tech giants

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows.

Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and easing crude oil prices supported the rupee.

At the interbank foreign exchange, the rupee opened on a weak note at 69.10, but gathered momentum and rose to a high of 69.00 against the US dollar, showing 26 paise gain over its previous closing.

The local unit, however, pared some gains and was quoted at 69.13 against the American currency at 0949 hrs.

The rupee had settled at 69.26 against the US dollar on Monday.

Forex traders said the rupee strengthened on an expectation of a rate cut in key policy rates by the Reserve Bank of India.

Meanwhile, foreign institutional investors (FIIs) remained net buyers in capital markets, putting in Rs 3,068.88 crore Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.31 per cent to trade at USD 61.09 per barrel.

Domestic bourses opened on a cautious note Tuesday with benchmark indices Sensex trading 58.44 points down at 40,209.18 and Nifty down 19.75 points at 12,068.80.

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows.

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows. Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and easing crude oil prices supported the rupee. At the interbank foreign exchange, the rupee opened on a weak note at 69.10, but gathered momentum and rose to a high of 69.00 against the US dollar, showing 26 paise gain over its previous closing. The local unit, however, pared some gains and was quoted at 69.13 against the American currency at 0949 hrs. The rupee had settled at 69.26 against the US dollar on Monday. Forex traders said the rupee strengthened on an expectation of a rate cut in key policy rates by the Reserve Bank of India. Meanwhile, foreign institutional investors (FIIs) remained net buyers in capital markets, putting in Rs 3,068.88 crore Monday, according to provisional exchange data. Brent crude futures, the global oil benchmark, fell 0.31 per cent to trade at USD 61.09 per barrel. Domestic bourses opened on a cautious note Tuesday with benchmark indices Sensex trading 58.44 points down at 40,209.18 and Nifty down 19.75 points at 12,068.80.

Rupee rises 26 paise to 69.00 against US dollar

Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets.

After scaling <a href="https://www.wionews.com/business-economy/stock-markets-close-at-record-high-sensex-surges-553-points-nifty-ends-above-12000-for-first-time-223868">lifetime highs in the previous session</a>, the 30-share index was trading 15.27 points, or 0.04 per cent, lower at 40,252.35, and the broader Nifty slipped 10.10 points, or 0.04 per cent, to 12,077.90.

Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent.

On the other hand, Yes Bank, NTPC, PowerGrid, L&amp;T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent.

On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55.

"With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions.

Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.

Bourses on Wall Street too ended in the red on Monday.

On the currency front, the rupee also appreciated 18 paise to 69.08 against the US dollar.

Brent crude futures, the global oil benchmark, were trading 0.41 per cent lower at 61.03 per barrel.

Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets.

Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets. After scaling lifetime highs in the previous session, the 30-share index was trading 15.27 points, or 0.04 per cent, lower at 40,252.35, and the broader Nifty slipped 10.10 points, or 0.04 per cent, to 12,077.90. Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent. On the other hand, Yes Bank, NTPC, PowerGrid, L&T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent. On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55. "With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management. The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews. According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions. Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed. Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions. Bourses on Wall Street too ended in the red on Monday. On the currency front, the rupee also appreciated 18 paise to 69.08 against the US dollar. Brent crude futures, the global oil benchmark, were trading 0.41 per cent lower at 61.03 per barrel.

Sensex, Nifty start on a cautious note as investors await RBI's monetary policy decision

Fuel prices across the nation were slashed on Monday with petrol being sold at Rs 71.23 per litre, a cut of 0.7 paise in the national capital.

While the diesel price was reduced by 0.20 paise. It is now&nbsp;being sold at Rs 65.56 per litre.

Meanwhile, in Mumbai, petrol price was recorded at Rs 76.91 per litre and diesel at Rs 68.76 per litre

Petrol price in Chennai was revised to Rs 74.01 while diesel price was at 69.36.

In Kolkata, petrol is being sold at Rs 73.47. Diesel is being sold at Rs 67.48.

Amid the <a href="https://www.wionews.com/world/us-says-countries-buying-iranian-oil-will-be-subject-to-sanctions-223000">global economic slowdown</a>, oil prices have been falling for the past few days now.

On Tuesday, Brent crude futures, the international benchmark for oil prices, were at $60.88 at 0038 GMT. That was 40 cents, or 0.7%, below last session's close.

US West Texas Intermediate (WTI) crude futures were at $52.94 per barrel, down 31 cents, or 0.6%.

Crude oil futures are now around 20% below their 2018 peaks reached in late April.

Fuel prices across the nation were slashed on Monday with petrol being sold at Rs 71.23 per litre, a cut of 0.7 paise in the national capital. While the diesel price was reduced by 0.

Fuel prices across the nation were slashed on Monday with petrol being sold at Rs 71.23 per litre, a cut of 0.7 paise in the national capital. While the diesel price was reduced by 0.20 paise. It is now being sold at Rs 65.56 per litre. Meanwhile, in Mumbai, petrol price was recorded at Rs 76.91 per litre and diesel at Rs 68.76 per litre Petrol price in Chennai was revised to Rs 74.01 while diesel price was at 69.36. In Kolkata, petrol is being sold at Rs 73.47. Diesel is being sold at Rs 67.48. Amid the global economic slowdown, oil prices have been falling for the past few days now. On Tuesday, Brent crude futures, the international benchmark for oil prices, were at $60.88 at 0038 GMT. That was 40 cents, or 0.7%, below last session's close. US West Texas Intermediate (WTI) crude futures were at $52.94 per barrel, down 31 cents, or 0.6%. Crude oil futures are now around 20% below their 2018 peaks reached in late April.

Petrol prices cut 7 paise, diesel by 20 paise nationwide

Steel is being diverted to Europe as a result of US&nbsp;25 per cent tariffs and the European Union needs to act, the European steel industry chiefs say a letter sent to EU leaders and EU institutions.

There has been a sudden downturn in the European steel industry's prospects, underpinned by long-term trends, 45 chief executives representing around 90 per cent&nbsp;of the EU's steel output said in the letter.

"Global overcapacity in steel and the use of the EU market as a dumping ground for the world's excess capacity are at the root of the problem," they said in the letter sent on Monday and seen by Reuters.

Steel imports into the EU have more than doubled since 2013 while demand had increased only marginally and is seen falling in 2019, they said.

The European Commission is currently reviewing its "safeguard" measures designed to limit incoming steel and prevent a surge of imports as a result of Washington's 25% import tariffs, which have effectively closed the U.S. market.

These safeguard measures should be tightened, the steel chiefs said.

Currently, quotas are set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes envisaged on July 1 and a year later. Beyond these quotas, 25% tariffs apply.

The steel bosses urged EU countries, the European Parliament and the European Commission to convene an emergency meeting with the industry to discuss solutions.

The signatories include the chiefs and regional chiefs of steel and stainless steel producers ArcelorMittal, ThyssenKrupp, Tata Steel and Acerinox.

ArcelorMittal, the world's largest steelmaker, announced production cuts twice in May, while British Steel collapsed into liquidation.

Steel is being diverted to Europe as a result of US 25 per cent tariffs and the European Union needs to act, the European steel industry chiefs say a letter sent to EU leaders and EU institutions.

Steel is being diverted to Europe as a result of US 25 per cent tariffs and the European Union needs to act, the European steel industry chiefs say a letter sent to EU leaders and EU institutions. There has been a sudden downturn in the European steel industry's prospects, underpinned by long-term trends, 45 chief executives representing around 90 per cent of the EU's steel output said in the letter. "Global overcapacity in steel and the use of the EU market as a dumping ground for the world's excess capacity are at the root of the problem," they said in the letter sent on Monday and seen by Reuters. Steel imports into the EU have more than doubled since 2013 while demand had increased only marginally and is seen falling in 2019, they said. The European Commission is currently reviewing its "safeguard" measures designed to limit incoming steel and prevent a surge of imports as a result of Washington's 25% import tariffs, which have effectively closed the U.S. market. These safeguard measures should be tightened, the steel chiefs said. Currently, quotas are set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes envisaged on July 1 and a year later. Beyond these quotas, 25% tariffs apply. The steel bosses urged EU countries, the European Parliament and the European Commission to convene an emergency meeting with the industry to discuss solutions. The signatories include the chiefs and regional chiefs of steel and stainless steel producers ArcelorMittal, ThyssenKrupp, Tata Steel and Acerinox. ArcelorMittal, the world's largest steelmaker, announced production cuts twice in May, while British Steel collapsed into liquidation.

European Union needs to act on steel imports in wake of United States tariffs: Industry

Apple on Monday announced enhanced privacy features as it harmonised software across its lineup of devices while dropping its groundbreaking iTunes store as it gears up for new kinds of digital content.

Apple chief Tim Cook and other executives focused on privacy features as they unveiled software improvements for iPhones, iPads, Apple Watch, Apple TV, and Mac computers at the technology giant's annual gathering of developers in Silicon Valley.

The company also revealed the demise of the iTunes online shop that changed the music industry.

"The future of iTunes is not one app, it's three," said Apple senior vice president of software engineering Craig Federighi.

"Apple Music, Apple Podcasts and Apple TV."

Launched in 2001, iTunes was the online shop to buy and download digital songs for Apple iPod players.

Lifestyles have since shifted to streaming music, video, podcasts, and more from the internet cloud as online data centres and high-bandwidth connections have given rise to on-demand entertainment expectations.

Apple has made a priority of selling digital content and services to the vast, global audience of people who use its devices as it seeks to wean itself off iPhone sales in a cooling smartphone market.

The audience at the Worldwide Developers Conference audience cheered for executives and improvements that promised to make it easier to make apps for Apple devices.

Next-generation iOS software powering iPhones coming out later this year was reworked "top to bottom" to be faster, according to Federighi.

Privacy protections being added to iOS mobile operating software included providing the option of giving apps permission to access location just once, instead of all the time, and letting users know when apps are tracking their whereabouts.

A new "Sign In With Apple" feature will be launched as an alternative to logging in using Facebook or Google accounts.

"This can be convenient, but it can also come at the cost of your privacy," Federighi said.

"These log-ins can be used to track you."

The iOS log-in feature will let people sign into apps using AppleID information, but provides the option of masking user names or email addresses with randomly generated information.

"The entire experience is meant to help you have control over your data," Federighi said, to applause.

"A lot of love for random addresses here."

Apple also announced changes that will make iPads easier to use as auxiliary screens for Mac computers, and even perform a bit more like laptops themselves with capabilities like multiple windows operating simultaneously.

Apple also unveiled a new Mac Pro high-performance desktop computer aimed at professions, with a starting price of $5,999.

"It has a truly gorgeous design and remarkable performance to match," Cook said of Mac Pro.

Apple previewed its iOS 13 for its mobile devices, which includes a "dark mode," an upgraded maps application and faster access through its facial recognition sign-on.

Apple on Monday announced enhanced privacy features as it harmonised software across its lineup of devices while dropping its groundbreaking iTunes store as it gears up for new kinds of digital content.

Apple on Monday announced enhanced privacy features as it harmonised software across its lineup of devices while dropping its groundbreaking iTunes store as it gears up for new kinds of digital content. Apple chief Tim Cook and other executives focused on privacy features as they unveiled software improvements for iPhones, iPads, Apple Watch, Apple TV, and Mac computers at the technology giant's annual gathering of developers in Silicon Valley. The company also revealed the demise of the iTunes online shop that changed the music industry. "The future of iTunes is not one app, it's three," said Apple senior vice president of software engineering Craig Federighi. "Apple Music, Apple Podcasts and Apple TV." Launched in 2001, iTunes was the online shop to buy and download digital songs for Apple iPod players. Lifestyles have since shifted to streaming music, video, podcasts, and more from the internet cloud as online data centres and high-bandwidth connections have given rise to on-demand entertainment expectations. Apple has made a priority of selling digital content and services to the vast, global audience of people who use its devices as it seeks to wean itself off iPhone sales in a cooling smartphone market. The audience at the Worldwide Developers Conference audience cheered for executives and improvements that promised to make it easier to make apps for Apple devices. Next-generation iOS software powering iPhones coming out later this year was reworked "top to bottom" to be faster, according to Federighi. Privacy protections being added to iOS mobile operating software included providing the option of giving apps permission to access location just once, instead of all the time, and letting users know when apps are tracking their whereabouts. A new "Sign In With Apple" feature will be launched as an alternative to logging in using Facebook or Google accounts. "This can be convenient, but it can also come at the cost of your privacy," Federighi said. "These log-ins can be used to track you." The iOS log-in feature will let people sign into apps using AppleID information, but provides the option of masking user names or email addresses with randomly generated information. "The entire experience is meant to help you have control over your data," Federighi said, to applause. "A lot of love for random addresses here." Apple also announced changes that will make iPads easier to use as auxiliary screens for Mac computers, and even perform a bit more like laptops themselves with capabilities like multiple windows operating simultaneously. Apple also unveiled a new Mac Pro high-performance desktop computer aimed at professions, with a starting price of $5,999. "It has a truly gorgeous design and remarkable performance to match," Cook said of Mac Pro. Apple previewed its iOS 13 for its mobile devices, which includes a "dark mode," an upgraded maps application and faster access through its facial recognition sign-on.

Apple drops iTunes, previews iOS 13 'dark mode' for mobile devices in developers conference

The sudden deterioration in trade talks between the United States and China last month has ratcheted up concerns among US firms that the dispute could go beyond tariffs and affect business in the long-term.

Business associations and consultants say they have been fielding a growing number of inquiries from companies about how best to navigate the trade dispute. They expect those calls to intensify after FedEx Corp over the weekend became embroiled in US-China frictions and an ongoing spat over Chinese tech giant Huawei.

Further rattling nerves are Beijing's plans to unveil an unprecedented hit-list of "unreliable" foreign firms, groups and individuals that harm the interests of Chinese companies. China's commerce ministry announced the move on Friday without singling out any country or company.

The US-China Business Council (USCBC), which represents roughly 200 American companies that do business in China, told Reuters on Monday that anxiety among its members was on the rise, especially over the list.

"The key point for them is that there's a great deal of uncertainty on how the list will be implemented and what negative repercussions will be brought about should a company be added to the list," said it's vice president of China operations, Jacob Parker.

"At the moment many of our companies are wondering whether this is an attempt by the Chinese government to increase their potential leverage in the trade negotiations, or if it's an actual effort to force companies into an unenviable position of choosing between the two markets."

Looming list

Analysts said US companies had been more sanguine in the initial stage of the trade war, with many believing that it could not possibly go on, but that began to change after Washington last month accused Beijing of reneging on previous promises, prompting fresh tit-for-tat tariffs.

The United States also last month put China's Huawei on a blacklist that effectively blocks US firms from doing business with the Shenzhen-based telecoms equipment maker, aggravating existing frictions.

"We have in the last three weeks fielded more calls from firms wondering about the political risk here than we probably have in the last 10 years," said Ben Cavender, an analyst at China Market Research Group, whose clients have ranged from clothing retailers to chemical firms.

"Right now there's a lot more concern that the situation regarding the negotiations has become so unstable and so emotional, when or if there's going to be a resolution."

It is unclear exactly how many US companies do business with China, but the American Chambers of Commerce (AmCham) in Beijing and Shanghai count more than 2,000 member firms between them.

"This is a discouraging development," said AmCham Shanghai President Ker Gibbs. "We are concerned and have requested more information about the list. We hope that both sides can refrain from this type of tit-for-tat behaviour and get back to the negotiating table."

Beijing-based AmCham China did not respond to a request for comment.

"At least three clients have asked us about how the entity list might affect their business," said a Shanghai-based consultant, who declined to be named due to the sensitivity of the situation.

Even some British firms had sought advice, he added, saying they were expressing worry over US President Donald Trump's visit to Britain this week, when he is expected to demand that Prime Minister Theresa May's successor ban Huawei from 5G networks.

"They fear that the US president might pressure the incoming prime minister to follow his policies," the consultant said.

South Korea experience

One big concern, analysts said, was that US firms could start to experience similar treatment to that doled out to South Korean companies in 2017, after China opposed Seoul's decision to install a US missile system.

South Korea's fifth-largest conglomerate Lotte, was among the worst hit. Chinese authorities suspended its work on a $2.6 billion project and ordered Lotte Mart stores to shut over what they said were fire safety violations. Company officials privately linked the action to the missile spat.

"It would not be inconceivable that China will look at, for example, large retail brands that are operating here and saying, well maybe they should also have fire code violations too. That would create immediate harm to a lot of businesses," Cavender said.

Another worry is that US corporate officials could personally start to face scrutiny or be investigated in China as a result of the trade frictions, one China-based foreign executive told Reuters on condition of anonymity.

Some, he added, were "exploring summer plans abroad", having not previously considered doing so, because they were worried about getting caught in the crossfire.

"Many US senior executives in China that I know have this growing concern right now."

The sudden deterioration in trade talks between the United States and China last month has ratcheted up concerns among US firms that the dispute could go beyond tariffs and affect business in the long-term.

The sudden deterioration in trade talks between the United States and China last month has ratcheted up concerns among US firms that the dispute could go beyond tariffs and affect business in the long-term. Business associations and consultants say they have been fielding a growing number of inquiries from companies about how best to navigate the trade dispute. They expect those calls to intensify after FedEx Corp over the weekend became embroiled in US-China frictions and an ongoing spat over Chinese tech giant Huawei. Further rattling nerves are Beijing's plans to unveil an unprecedented hit-list of "unreliable" foreign firms, groups and individuals that harm the interests of Chinese companies. China's commerce ministry announced the move on Friday without singling out any country or company. The US-China Business Council (USCBC), which represents roughly 200 American companies that do business in China, told Reuters on Monday that anxiety among its members was on the rise, especially over the list. "The key point for them is that there's a great deal of uncertainty on how the list will be implemented and what negative repercussions will be brought about should a company be added to the list," said it's vice president of China operations, Jacob Parker. "At the moment many of our companies are wondering whether this is an attempt by the Chinese government to increase their potential leverage in the trade negotiations, or if it's an actual effort to force companies into an unenviable position of choosing between the two markets." Looming list Analysts said US companies had been more sanguine in the initial stage of the trade war, with many believing that it could not possibly go on, but that began to change after Washington last month accused Beijing of reneging on previous promises, prompting fresh tit-for-tat tariffs. The United States also last month put China's Huawei on a blacklist that effectively blocks US firms from doing business with the Shenzhen-based telecoms equipment maker, aggravating existing frictions. "We have in the last three weeks fielded more calls from firms wondering about the political risk here than we probably have in the last 10 years," said Ben Cavender, an analyst at China Market Research Group, whose clients have ranged from clothing retailers to chemical firms. "Right now there's a lot more concern that the situation regarding the negotiations has become so unstable and so emotional, when or if there's going to be a resolution." It is unclear exactly how many US companies do business with China, but the American Chambers of Commerce (AmCham) in Beijing and Shanghai count more than 2,000 member firms between them. "This is a discouraging development," said AmCham Shanghai President Ker Gibbs. "We are concerned and have requested more information about the list. We hope that both sides can refrain from this type of tit-for-tat behaviour and get back to the negotiating table." Beijing-based AmCham China did not respond to a request for comment. "At least three clients have asked us about how the entity list might affect their business," said a Shanghai-based consultant, who declined to be named due to the sensitivity of the situation. Even some British firms had sought advice, he added, saying they were expressing worry over US President Donald Trump's visit to Britain this week, when he is expected to demand that Prime Minister Theresa May's successor ban Huawei from 5G networks. "They fear that the US president might pressure the incoming prime minister to follow his policies," the consultant said. South Korea experience One big concern, analysts said, was that US firms could start to experience similar treatment to that doled out to South Korean companies in 2017, after China opposed Seoul's decision to install a US missile system. South Korea's fifth-largest conglomerate Lotte, was among the worst hit. Chinese authorities suspended its work on a $2.6 billion project and ordered Lotte Mart stores to shut over what they said were fire safety violations. Company officials privately linked the action to the missile spat. "It would not be inconceivable that China will look at, for example, large retail brands that are operating here and saying, well maybe they should also have fire code violations too. That would create immediate harm to a lot of businesses," Cavender said. Another worry is that US corporate officials could personally start to face scrutiny or be investigated in China as a result of the trade frictions, one China-based foreign executive told Reuters on condition of anonymity. Some, he added, were "exploring summer plans abroad", having not previously considered doing so, because they were worried about getting caught in the crossfire. "Many US senior executives in China that I know have this growing concern right now."

US firms fret as China's FedEx probe, planned hit-list heightens trade frictions

Eurozone inflation dropped sharply to 1.2 per cent in May, data showed on Tuesday, raising the spectre of a global economic slowdown.&nbsp;

Analysts surveyed by data company Factset had predicted a more modest drop in inflation to 1.4 per cent, down from the 1.7 per cent logged in April.

The latest data puts consumer prices in the 19-nation single currency bloc even further from the European Central Bank's inflation goal of just below 2.0 per cent.

Eurozone unemployment meanwhile dropped to 7.6 per cent in April, down from 7.7 per cent in March.&nbsp;

This marked the lowest rate recorded in the 19-nation single currency bloc since August 2008.

The drop in consumer prices landed a day after data showed that factory output in the eurozone fell close to a six-year low in May.

This has compounded fears that international trade turbulence caused by the protectionist offensive by US President Donald Trump against China and other partners is destabilising the world economy.

Economists say investor confidence is shaken by US-led trade war, putting pressure on the ECB governors to do more to boost the economy when they meet on Thursday.

The ECB's firepower is limited however, after years of very low rates and other unprecedented steps to boost lending and growth in Europe.

Eurozone inflation dropped sharply to 1.2 per cent in May, data showed on Tuesday, raising the spectre of a global economic slowdown. Analysts surveyed by data company Factset had predicted a more modest drop in inflation to 1.

Eurozone inflation dropped sharply to 1.2 per cent in May, data showed on Tuesday, raising the spectre of a global economic slowdown. Analysts surveyed by data company Factset had predicted a more modest drop in inflation to 1.4 per cent, down from the 1.7 per cent logged in April. The latest data puts consumer prices in the 19-nation single currency bloc even further from the European Central Bank's inflation goal of just below 2.0 per cent. Eurozone unemployment meanwhile dropped to 7.6 per cent in April, down from 7.7 per cent in March. This marked the lowest rate recorded in the 19-nation single currency bloc since August 2008. The drop in consumer prices landed a day after data showed that factory output in the eurozone fell close to a six-year low in May. This has compounded fears that international trade turbulence caused by the protectionist offensive by US President Donald Trump against China and other partners is destabilising the world economy. Economists say investor confidence is shaken by US-led trade war, putting pressure on the ECB governors to do more to boost the economy when they meet on Thursday. The ECB's firepower is limited however, after years of very low rates and other unprecedented steps to boost lending and growth in Europe.

Eurozone inflation falls sharply amid slowdown fears

Shares closed lower on Tuesday as investors awaited the central bank's policy meeting decision later this week, weighed down by technology stocks. 
The broader Nifty fell 0.55 per cent to 12,021.65, while the benchmark Sensex settled 0.46 per cent&nbsp;lower at 40,083.54.

Tata Consultancy Services fell 2.6 per cent, dragging the Nifty IT index 1.6 per cent&nbsp;lower.

Country's economy grew at its slowest pace in more than four years in the January-March period, raising prospects of a rate cut by the Reserve Bank of India on Thursday.

On&nbsp;Monday, shares rose about 1.5 per cent&nbsp;to record close as weak economic growth data raised prospects of a rate cut by the central bank at its policy meeting scheduled later this week.

Both the broader NSE Nifty and the benchmark BSE Sensex gained 1.39 per cent&nbsp;each, settling above the 12,000 and 40,000 levels, respectively, for the first time ever.

Hero MotoCorp Ltd advanced about 6 per cent&nbsp;and was the top gainer on both the indexes. The Nifty Auto index rose over 2 per cent.&nbsp;

Indian markets are closed on Wednesday for a holiday.

Shares closed lower on Tuesday as investors awaited the central bank's policy meeting decision later this week, weighed down by technology stocks. The broader Nifty fell 0.

Shares closed lower on Tuesday as investors awaited the central bank's policy meeting decision later this week, weighed down by technology stocks. The broader Nifty fell 0.55 per cent to 12,021.65, while the benchmark Sensex settled 0.46 per cent lower at 40,083.54. Tata Consultancy Services fell 2.6 per cent, dragging the Nifty IT index 1.6 per cent lower. Country's economy grew at its slowest pace in more than four years in the January-March period, raising prospects of a rate cut by the Reserve Bank of India on Thursday. On Monday, shares rose about 1.5 per cent to record close as weak economic growth data raised prospects of a rate cut by the central bank at its policy meeting scheduled later this week. Both the broader NSE Nifty and the benchmark BSE Sensex gained 1.39 per cent each, settling above the 12,000 and 40,000 levels, respectively, for the first time ever. Hero MotoCorp Ltd advanced about 6 per cent and was the top gainer on both the indexes. The Nifty Auto index rose over 2 per cent. Indian markets are closed on Wednesday for a holiday.

Sensex closes lower ahead of RBI policy decision

Australia's central bank lowered the cost of borrowing for the first time in three years on Tuesday, hoping to extend a record 28-year-run without a recession in the face of stiffening economic headwinds.

The Reserve Bank of Australia cut rates by 25 basis points to a historic low of 1.25 per cent as the pace of growth slowed to levels not seen since the <a href="https://www.wionews.com/opinions/how-to-deal-with-the-next-global-financial-crisis-170190">global financial crisis.</a>

Australia dodged much of the global economic tumult of the past two decades as Beijing lapped up its vast iron ore, coal and other mineral deposits.But now rising unemployment, low wages, a housing slump and below-target inflation are stoking fears about the health of the economy down nder.

"The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target," governor Philip Lowe said in a statement.

The rate cut had been expected and analysts believe that more measures to juice the economy could be on the way.Lowe said the bank would "continue to monitor developments in the labour market closely and adjust monetary policy to support sustainable growth in the economy".

The <a href="https://www.wionews.com/world/un-forecasts-global-economy-to-grow-27-in-2019-29-in-2020-220522">economy</a> grew at 0.3 and 0.2 per cent in the last two quarters while figures for the first quarter of 2019 will be released on Wednesday.

Any contraction would trigger alarm with negative growth for two consecutive quarters widely considered a recession. 
Many are predicting the cash rate will fall below 1.0 per cent this year and the central bank could even look at buying up securities.

In the 10 years since the global meltdown, the Reserve Bank of Australia has -- apart from a brief burst of optimism in 2010 -- steadily cut rates from a peak of 7.25 per cent.&nbsp;

Any hope of returning rates to more "normal" pre-crisis levels have been quashed by the slow global recovery, trade disputes between China and the United States and domestic challenges. Lowe said that while the global outlook appears "reasonable", the "downside risks stemming from the trade disputes have increased".

Earlier on Tuesday, there was news of faltering retail sales and the country's main telecoms firm cutting 10,000 contractors.

A downturn in the country's hypercharged housing market, falling consumption and stalled wages have already pushed Australia into a per capita recession, with the output per person falling for two consecutive quarters.

Treasurer Josh Frydenberg urged lenders to pass on the lower cost of borrowing to customers and criticised one lender for announcing it would pass on only an 18 basis-point cut.&nbsp;

The decision to cut rates takes the central bank further into uncharted territory.

Lowe has himself warned that "low-for-long" interest rates could pose problems for financial stability, with banks and other firms overvaluing risky assets.

But already there is talk about the bank going a step further in improving liquidity, by buying up securities -- known as quantitative easing. &nbsp;

National Australia Bank analysts predicted another cut in August and further possible cuts in 2020.

"It's quite possible that the government will begin to contemplate some further financial support as well later in the year if current trends continue," they said.

Australia's central bank lowered the cost of borrowing for the first time in three years on Tuesday, hoping to extend a record 28-year-run without a recession in the face of stiffening economic headwinds.

Australia's central bank lowered the cost of borrowing for the first time in three years on Tuesday, hoping to extend a record 28-year-run without a recession in the face of stiffening economic headwinds. The Reserve Bank of Australia cut rates by 25 basis points to a historic low of 1.25 per cent as the pace of growth slowed to levels not seen since the global financial crisis. Australia dodged much of the global economic tumult of the past two decades as Beijing lapped up its vast iron ore, coal and other mineral deposits.But now rising unemployment, low wages, a housing slump and below-target inflation are stoking fears about the health of the economy down nder. "The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target," governor Philip Lowe said in a statement. The rate cut had been expected and analysts believe that more measures to juice the economy could be on the way.Lowe said the bank would "continue to monitor developments in the labour market closely and adjust monetary policy to support sustainable growth in the economy". The economy grew at 0.3 and 0.2 per cent in the last two quarters while figures for the first quarter of 2019 will be released on Wednesday. Any contraction would trigger alarm with negative growth for two consecutive quarters widely considered a recession. Many are predicting the cash rate will fall below 1.0 per cent this year and the central bank could even look at buying up securities. In the 10 years since the global meltdown, the Reserve Bank of Australia has -- apart from a brief burst of optimism in 2010 -- steadily cut rates from a peak of 7.25 per cent. Any hope of returning rates to more "normal" pre-crisis levels have been quashed by the slow global recovery, trade disputes between China and the United States and domestic challenges. Lowe said that while the global outlook appears "reasonable", the "downside risks stemming from the trade disputes have increased". Earlier on Tuesday, there was news of faltering retail sales and the country's main telecoms firm cutting 10,000 contractors. A downturn in the country's hypercharged housing market, falling consumption and stalled wages have already pushed Australia into a per capita recession, with the output per person falling for two consecutive quarters. Treasurer Josh Frydenberg urged lenders to pass on the lower cost of borrowing to customers and criticised one lender for announcing it would pass on only an 18 basis-point cut. The decision to cut rates takes the central bank further into uncharted territory. Lowe has himself warned that "low-for-long" interest rates could pose problems for financial stability, with banks and other firms overvaluing risky assets. But already there is talk about the bank going a step further in improving liquidity, by buying up securities -- known as quantitative easing. National Australia Bank analysts predicted another cut in August and further possible cuts in 2020. "It's quite possible that the government will begin to contemplate some further financial support as well later in the year if current trends continue," they said.

Australia cuts rates to historic low as economy slows

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring.

The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security.

Almost 70% of responses were collected after exit polls showed Modi's Bharatiya Janata Party would return to power for a second term.

The <a href="https://www.wionews.com/business-economy/sensex-jumps-over-200-points-ahead-of-rbi-policy-meet-223755">Nikkei Manufacturing Purchasing Managers' Index</a> increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month.

"A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand," Pollyanna De Lima, principal economist at IHS Markit, said in a release.

The new business orders sub-index, which tracks overall demand, rose as foreign demand increased at the fastest pace in three months. Output also grew at the strongest rate since February.

That led firms to increase the pace of hiring from the previous month when headcount was barely changed.

"To assist with higher output needs, and benefit from relatively muted cost inflation, companies stepped up hiring and input purchasing," De Lima said.

"Goods producers were also able to charge competitive prices due to negligible increases in their cost burdens, meaning not only higher sales in the domestic market, but also greater overseas demand."

Although input costs increased at a stronger pace in May, manufacturers did not pass on those pressures to customers and instead trimmed prices for the first time since December. The output prices sub-index dropped to 49.9 from 50.8.

That will help keep retail inflation muted and well below the Reserve Bank of India's 4% target, increasing the likelihood of an interest rate cut at the next policy review on June 6.

If the central bank cuts rates this week, as expected, it would mark the third consecutive easing in as many meetings.

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring.

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring. The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security. Almost 70% of responses were collected after exit polls showed Modi's Bharatiya Janata Party would return to power for a second term. The Nikkei Manufacturing Purchasing Managers' Index increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month. "A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand," Pollyanna De Lima, principal economist at IHS Markit, said in a release. The new business orders sub-index, which tracks overall demand, rose as foreign demand increased at the fastest pace in three months. Output also grew at the strongest rate since February. That led firms to increase the pace of hiring from the previous month when headcount was barely changed. "To assist with higher output needs, and benefit from relatively muted cost inflation, companies stepped up hiring and input purchasing," De Lima said. "Goods producers were also able to charge competitive prices due to negligible increases in their cost burdens, meaning not only higher sales in the domestic market, but also greater overseas demand." Although input costs increased at a stronger pace in May, manufacturers did not pass on those pressures to customers and instead trimmed prices for the first time since December. The output prices sub-index dropped to 49.9 from 50.8. That will help keep retail inflation muted and well below the Reserve Bank of India's 4% target, increasing the likelihood of an interest rate cut at the next policy review on June 6. If the central bank cuts rates this week, as expected, it would mark the third consecutive easing in as many meetings.

India factory activity grows at fastest pace in three months in May: PMI

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities.

Forex dealers said the local currency gained strength ahead of the Reserve Bank of India's monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on June 3, 4 and 6.

The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close.

The rupee Friday had settled at 69.70 to the US dollar.

Meanwhile, the 10-year government bond yield was at 6.95 per cent on Monday, against the previous close of 7.03 per cent on Friday.

Forex traders said foreign fund inflows also supported the domestic currency.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis Friday, provisional exchange data showed.

Brent crude futures, the global oil benchmark, eased 1.13 per cent to USD 61.29 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47 per cent to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34 per cent.

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities.

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities. Forex dealers said the local currency gained strength ahead of the Reserve Bank of India's monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on June 3, 4 and 6. The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close. The rupee Friday had settled at 69.70 to the US dollar. Meanwhile, the 10-year government bond yield was at 6.95 per cent on Monday, against the previous close of 7.03 per cent on Friday. Forex traders said foreign fund inflows also supported the domestic currency. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis Friday, provisional exchange data showed. Brent crude futures, the global oil benchmark, eased 1.13 per cent to USD 61.29 per barrel. Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47 per cent to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34 per cent.

Rupee rises 31 paise to 69.39 against US dollar