The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages.

Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. 
But — it's not the first time that the economists have got their prediction wrong.

In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now.

The economic data has some clues — that explain the slowdown in India.

The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales.

In September — the auto sales saw their worst ever fall in 21 years.

There was some recovery in November — but there was an overall drop in domestic sales.

India's top consumer goods companies reported a drop in sales all through this year.

The real estate sector remains in a state of a slump.

The IMF has listed weak income growth as one of the reasons behind the slowdown.

India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world.

Job creation has also taken a hit

Last year — a government report said that India's unemployment rate was at a 45 year high.

Another assessment claims that India has lost nine million jobs in six years till 2018.

Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing &amp; Financial Services Limited (IL&amp;FS). The sudden fall of this institution led to a chain reaction.

Access to cheap credit dried up. It had an impact on the operations of several businessmen.

India's state-run banks to have been struggling with non-performing assets.

The slowdown poses a significant challenge to the Modi government.&nbsp;

Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. But — it's not the first time that the economists have got their prediction wrong. In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now. The economic data has some clues — that explain the slowdown in India. The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales. In September — the auto sales saw their worst ever fall in 21 years. There was some recovery in November — but there was an overall drop in domestic sales. India's top consumer goods companies reported a drop in sales all through this year. The real estate sector remains in a state of a slump. The IMF has listed weak income growth as one of the reasons behind the slowdown. India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world. Job creation has also taken a hit Last year — a government report said that India's unemployment rate was at a 45 year high. Another assessment claims that India has lost nine million jobs in six years till 2018. Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing & Financial Services Limited (IL&FS). The sudden fall of this institution led to a chain reaction. Access to cheap credit dried up. It had an impact on the operations of several businessmen. India's state-run banks to have been struggling with non-performing assets. The slowdown poses a significant challenge to the Modi government. Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

Decoding Indian economic slowdown: Slow consumption, falling income, low wages

One of the founders of dominant <a href="https://www.wionews.com/business-economy/german-court-bans-uber-services-via-rental-cars-in-germany-269165">ride-hailing service Uber</a>, Travis Kalanick, will exit the company at the end of the year, the company announced Tuesday.

Kalanick, who was pushed out as chief executive in 2017 over various controversies, will sever his final ties to the company, resigning from the board of directors effective December 31 "to focus on his new business and philanthropic endeavours," Uber said in a statement.

"Uber has been a part of my life for the past 10 years. At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits," Kalanick said.

Watch: Uber can't fix safety issues

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/paris-uber-cant-fix-safety-issues-267382/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

In March 2018, Kalanick announced the creation of a new investment vehicle, 10100, that will focus on both for-profit and non-profit ventures. The key areas of focus for the fund include real estate, e-commerce and innovation in China and India.

Kalanick and fellow Uber co-founder Garrett Camp got the idea for Uber while visiting Paris in December 2008 when they were unable to find a taxi.

UberCab launched in July 2010 in San Francisco. The company name was shortened in October to Uber.

Board Chairperson Ron Sugar thanked Kalanick for "his unique expertise, honed over 10 years building Uber from a scrappy startup into the global public company."

Kalanick <a href="https://www.wionews.com/business-economy/uber-submits-appeal-to-regain-london-taxi-licence-268225">resigned from Uber</a> in June 2017 amid heavy pressure following a series of disturbing reports about cutthroat workplace culture, harassment, discrimination and questionable business tactics to thwart rivals.

Uber shares have fallen more than 25 per cent since the company went public in May amid questions over its long-term profitability prospects.

Shares rose 1.1 per cent to $30.67 in morning trading Tuesday.&nbsp;

One of the founders of dominant ride-hailing service Uber, Travis Kalanick, will exit the company at the end of the year, the company announced Tuesday. Kalanick, who was pushed out as chief executive in 2017 over various controversies, will sever his final ties to the company, resigning from the board of directors effective December 31 "to focus on his new business and philanthropic endeavours," Uber said in a statement.

One of the founders of dominant ride-hailing service Uber, Travis Kalanick, will exit the company at the end of the year, the company announced Tuesday. Kalanick, who was pushed out as chief executive in 2017 over various controversies, will sever his final ties to the company, resigning from the board of directors effective December 31 "to focus on his new business and philanthropic endeavours," Uber said in a statement. "Uber has been a part of my life for the past 10 years. At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits," Kalanick said. Watch: Uber can't fix safety issues In March 2018, Kalanick announced the creation of a new investment vehicle, 10100, that will focus on both for-profit and non-profit ventures. The key areas of focus for the fund include real estate, e-commerce and innovation in China and India. Kalanick and fellow Uber co-founder Garrett Camp got the idea for Uber while visiting Paris in December 2008 when they were unable to find a taxi. UberCab launched in July 2010 in San Francisco. The company name was shortened in October to Uber. Board Chairperson Ron Sugar thanked Kalanick for "his unique expertise, honed over 10 years building Uber from a scrappy startup into the global public company." Kalanick resigned from Uber in June 2017 amid heavy pressure following a series of disturbing reports about cutthroat workplace culture, harassment, discrimination and questionable business tactics to thwart rivals. Uber shares have fallen more than 25 per cent since the company went public in May amid questions over its long-term profitability prospects. Shares rose 1.1 per cent to $30.67 in morning trading Tuesday.

Uber co-founder Travis Kalanick to leave company's board

Amidst a pronounced economic slowdown in <a href="https://www.wionews.com/business-economy/indian-shares-largely-flat-yes-bank-indiabulls-real-estate-rise-269903">India</a>, the <a href="&lt;div class=&quot;videoWrapper trancodeVideo&quot;&gt;&lt;iframe src=&quot;https://www.wionews.com/business-economy/imf-sidesteps-clash-with-us-over-funding-delays-shareholding-changes-to-2023-256885/embed&quot; width=&quot;560&quot; height=&quot;350&quot; style=&quot;width:100%;max-width:560px;&quot; class=&quot;includeVideo&quot; frameborder=&quot;0&quot; autoplay=1 allowfullscreen&gt;&lt;/iframe&gt;&lt;/div&gt;">International Monetary Fund (IMF)</a> issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year.&nbsp;

According to the report, more efforts by the Indian government are needed to fix the slowdown.

For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years.

Watch:&nbsp;IMF -&nbsp;India now in midst of major economic slowdown, needs urgent action

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The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress.

Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20.

Additionally, <a href="https://www.wionews.com/world/lebanon-pm-asks-world-bank-imf-help-with-economic-rescue-plan-267959">the organisation</a> has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months.

Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent.

The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy.&nbsp;

Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months.&nbsp;

The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown. In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year. According to the report, more efforts by the Indian government are needed to fix the slowdown. For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years. Watch: IMF - India now in midst of major economic slowdown, needs urgent action The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress. Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20. Additionally, the organisation has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months. Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent. The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy. Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months. The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Indian economic slowdown: International Monetary Fund calls for 'urgent' action

<a href="https://www.wionews.com/india-news/indian-observers-to-monitor-uzbekistan-parliamentary-election-on-december-22-265553">Voters in Uzbekistan</a> were heading to the polls Sunday in its first parliamentary election since a new leader ushered in an era of reform after years of isolation and authoritarian rule.

Polling stations in Central Asia's most populous country opened at 0800 local time (0300 GMT) and will close 12 hours later.&nbsp;

President Shavkat Mirziyoyev took charge in 2016 after the death of hardline predecessor and former patron Islam Karimov, who had ruled for almost three decades.

Mirziyoyev has been lauded for doing away with many of Karimov's authoritarian excesses, releasing some political prisoners, battling forced labour and opening up the landlocked state to tourism and foreign investment.&nbsp;

But choices on the ballot in the former Soviet republic are few,&nbsp;all five parties competing are represented in the outgoing parliament.&nbsp;

Muslim-majority but staunchly secular Uzbekistan is home to 33 million people, over 20 million of whom can vote.

Rubber stamp

Britain's influential magazine The Economist this week named Uzbekistan as its country of the year, saying "no other country travelled so far" in 2019.

Yet the reform drive has so far not allowed real competition to Mirziyoyev, 62, to develop.&nbsp;

The 150-member lower house where no party has ever achieved a commanding majority has a long-earned rubber stamp reputation.

Currently the Liberal Democratic Party is the largest in the legislature with 52 seats, followed by Milli Tiklanish, known in English as the National Revival Democratic Party, with 36. &nbsp;

The People's Democratic Party, the Social Democratic Party also known as Adolat and the Ecological Movement of Uzbekistan are also represented there.&nbsp;

<a href="https://www.wionews.com/world/uzbekistan-to-waive-visa-restrictions-for-chinese-citizens-249263">Residents of the capital Tashkent</a> said they wanted to see more from their elected officials and voiced concerns they would not have dared express under Karimov.

Shahzod Alikulov, a builder, said the future parliament should ease the burden of the majority-rural population who feel the sharp end of energy shortages.&nbsp;

"For people to have gas, electricity, roads. That is what I will give my vote for," he told AFP.

Nigina Luftfullaeva, a 22-year-old student, said she would like the new parliament to help eradicate endemic corruption.

"Maybe we will never be able to get rid of it fully, but it would be nice to get rid of it at least partly," Luftfullaeva told AFP.

'New Uzbekistan?'

The elections are being held under the slogan "<a href="https://www.wionews.com/india-news/india-close-and-trusted-friend-of-uzbekistan-ambassador-farhod-arziev-247005">New Uzbekistan, new elections</a>" as authorities seek to brand them as the latest example of a newfound openness.&nbsp;

But the Organisation for Security and &nbsp;Cooperation in Europe (OSCE), which has sent an observer mission to the polls, has said many features of past votes remain in place.

"Very few campaign posters are visible," the group's pre-election report said.&nbsp;

"So far, very little evidence of outdoor campaign activities has been observed."

Karimov was often criticised by international watchdogs over torture and forced labour allegations.

Mirziyoyev has continued to honour Karimov publicly but has been credited with eradicating much of the slavery in the country's cotton sector and lifting Uzbekistan out of isolation.

Luca Anceschi, a senior lecturer in Central Asian Studies at the University of Glasgow, said it was too early to say whether the vote holds any significance in the broader context of Uzbekistan's political transformation.&nbsp;

Popular participation in the poll "seems a crucial element of Mirziyoyev's strategy of support building", Anceschi told AFP.

As to whether parliament can evolve as an institution, he said, "the jury is out".

Voters in Uzbekistan were heading to the polls Sunday in its first parliamentary election since a new leader ushered in an era of reform after years of isolation and authoritarian rule.

Voters in Uzbekistan were heading to the polls Sunday in its first parliamentary election since a new leader ushered in an era of reform after years of isolation and authoritarian rule. Polling stations in Central Asia's most populous country opened at 0800 local time (0300 GMT) and will close 12 hours later. President Shavkat Mirziyoyev took charge in 2016 after the death of hardline predecessor and former patron Islam Karimov, who had ruled for almost three decades. Mirziyoyev has been lauded for doing away with many of Karimov's authoritarian excesses, releasing some political prisoners, battling forced labour and opening up the landlocked state to tourism and foreign investment. But choices on the ballot in the former Soviet republic are few, all five parties competing are represented in the outgoing parliament. Muslim-majority but staunchly secular Uzbekistan is home to 33 million people, over 20 million of whom can vote. Rubber stamp Britain's influential magazine The Economist this week named Uzbekistan as its country of the year, saying "no other country travelled so far" in 2019. Yet the reform drive has so far not allowed real competition to Mirziyoyev, 62, to develop. The 150-member lower house where no party has ever achieved a commanding majority has a long-earned rubber stamp reputation. Currently the Liberal Democratic Party is the largest in the legislature with 52 seats, followed by Milli Tiklanish, known in English as the National Revival Democratic Party, with 36. The People's Democratic Party, the Social Democratic Party also known as Adolat and the Ecological Movement of Uzbekistan are also represented there. Residents of the capital Tashkent said they wanted to see more from their elected officials and voiced concerns they would not have dared express under Karimov. Shahzod Alikulov, a builder, said the future parliament should ease the burden of the majority-rural population who feel the sharp end of energy shortages. "For people to have gas, electricity, roads. That is what I will give my vote for," he told AFP. Nigina Luftfullaeva, a 22-year-old student, said she would like the new parliament to help eradicate endemic corruption. "Maybe we will never be able to get rid of it fully, but it would be nice to get rid of it at least partly," Luftfullaeva told AFP. 'New Uzbekistan?' The elections are being held under the slogan "New Uzbekistan, new elections" as authorities seek to brand them as the latest example of a newfound openness. But the Organisation for Security and Cooperation in Europe (OSCE), which has sent an observer mission to the polls, has said many features of past votes remain in place. "Very few campaign posters are visible," the group's pre-election report said. "So far, very little evidence of outdoor campaign activities has been observed." Karimov was often criticised by international watchdogs over torture and forced labour allegations. Mirziyoyev has continued to honour Karimov publicly but has been credited with eradicating much of the slavery in the country's cotton sector and lifting Uzbekistan out of isolation. Luca Anceschi, a senior lecturer in Central Asian Studies at the University of Glasgow, said it was too early to say whether the vote holds any significance in the broader context of Uzbekistan's political transformation. Popular participation in the poll "seems a crucial element of Mirziyoyev's strategy of support building", Anceschi told AFP. As to whether parliament can evolve as an institution, he said, "the jury is out".

Uzbekistan: Polls held under pro-reform leader

Asserting that the flow of Foreign Direct Investment (FDI) into India has increased in the last few years, Prime Minister Narendra Modi on Friday said that global investors are looking to invest in the country with renewed hope and belief.

"In the last few years, FDI in India has increased. FDI, for me, has two meanings. One is Foreign Direct Investment, and for me, another one is, `First Develop India`," Modi said while addressing the annual ASSOCHAM conference here.

He said that there is a new mood of innovation and enterprise in the entire country today. "There`s an unprecedented belief in India`s ability across the <a href="https://www.wionews.com/opinions/economy-debate-narendra-modis-nda-versus-manmohan-singhs-upa-267271">world</a>. Global investors are looking at India today with renewed hope and belief," the Prime Minister said.

He also said that labour laws have undergone an overhaul as per suggestions from the industry sector, underlining that several steps have been taken to make the industry strong and futuristic.

"I want to tell everyone associated with the banking and corporate sector that the old weaknesses have been ironed out. Take decisions bravely, invest openly, and spend well and keep moving ahead," the Prime Minister said, adding that no action will be taken against right and commercially genuine decisions.

The Prime Minister said that <a href="https://www.wionews.com/india-news/amit-shah-says-indian-economy-moved-to-bold-decisive-decision-making-calls-current-slowdown-temporary-265503">India</a> has made improvements in the Global Competitiveness Index and the country is one of the top 10 FDI destinations in the world.

"There`s no doubt about how weak India`s banking sector was, before 2014. Rs six lakh crores were provisioned to make up for the losses. Rs 70,000 crore and Rs 23,600,000 crore have been made available to the banks by the government," Modi added.

The Prime Minister said that Rs 10,000,000 crore has been earmarked for infrastructure in the next few years and Rs 3,500,000 crore has been set aside to ensure clean drinking water to every family in the country under the 'Jal Jeevan Mission'.

"We are going to invest Rs 10,000,000 crore on <a href="https://www.wionews.com/opinions/security-preparedness-ensuring-safety-in-cities-268773">infrastructure</a> in the coming years. On the rural infrastructure, we have dedicated an investment of Rs 2,500,000&nbsp;crore. We have also earmarked Rs 350,000&nbsp;crore to ensure drinking water to every family in the country," Modi further said.&nbsp;

Asserting that the flow of Foreign Direct Investment (FDI) into India has increased in the last few years, Prime Minister Narendra Modi on Friday said that global investors are looking to invest in the country with renewed hope and belief.

Asserting that the flow of Foreign Direct Investment (FDI) into India has increased in the last few years, Prime Minister Narendra Modi on Friday said that global investors are looking to invest in the country with renewed hope and belief. "In the last few years, FDI in India has increased. FDI, for me, has two meanings. One is Foreign Direct Investment, and for me, another one is, `First Develop India`," Modi said while addressing the annual ASSOCHAM conference here. He said that there is a new mood of innovation and enterprise in the entire country today. "There`s an unprecedented belief in India`s ability across the world. Global investors are looking at India today with renewed hope and belief," the Prime Minister said. He also said that labour laws have undergone an overhaul as per suggestions from the industry sector, underlining that several steps have been taken to make the industry strong and futuristic. "I want to tell everyone associated with the banking and corporate sector that the old weaknesses have been ironed out. Take decisions bravely, invest openly, and spend well and keep moving ahead," the Prime Minister said, adding that no action will be taken against right and commercially genuine decisions. The Prime Minister said that India has made improvements in the Global Competitiveness Index and the country is one of the top 10 FDI destinations in the world. "There`s no doubt about how weak India`s banking sector was, before 2014. Rs six lakh crores were provisioned to make up for the losses. Rs 70,000 crore and Rs 23,600,000 crore have been made available to the banks by the government," Modi added. The Prime Minister said that Rs 10,000,000 crore has been earmarked for infrastructure in the next few years and Rs 3,500,000 crore has been set aside to ensure clean drinking water to every family in the country under the 'Jal Jeevan Mission'. "We are going to invest Rs 10,000,000 crore on infrastructure in the coming years. On the rural infrastructure, we have dedicated an investment of Rs 2,500,000 crore. We have also earmarked Rs 350,000 crore to ensure drinking water to every family in the country," Modi further said.

Global investors looking at India with renewed hope, belief: PM Modi

The Confederation of British Industry's gauge of manufacturing output over the three months to December fell to -16 from -9 in November, its <a href="https://www.wionews.com/business-economy/brexit-weak-global-demand-to-hurt-uk-in-2020-industry-warns-265700">weakest</a> reading since September 2009.

Inflows of new work also deteriorated as the CBI's monthly order book balance fell to -28 from -26.

The survey of 289 manufacturers covered Nov. 22 to Dec. 11, just before Johnson chalked up a comprehensive victory in last Thursday's election.

Other surveys have also shown Britain's <a href="https://www.wionews.com/world/uk-economy-risks-severe-damage-without-orderly-brexit-cbi-181812">manufacturers</a> have struggled in recent months against a global drop in demand, as well as uncertainty surrounding Brexit and the election.

"With manufacturers reporting that output is declining at a pace not seen since the financial crisis, alongside another month of softer order books, it is crucially important to rebuild business confidence in this sector," CBI deputy chief economist Anna Leach said.

"After three years of gridlock, the Prime Minister now has a clear mandate to govern. <a href="https://www.wionews.com/business-economy/uk-business-seeks-brexit-assurances-after-johnson-win-268132">Businesses</a> across the UK will want him to break the cycle of uncertainty," she added.

The survey showed export orders declined at one of the fastest rates since the financial crisis.

The Confederation of British Industry's gauge of manufacturing output over the three months to December fell to -16 from -9 in November, its weakest reading since September 2009.

The Confederation of British Industry's gauge of manufacturing output over the three months to December fell to -16 from -9 in November, its weakest reading since September 2009. Inflows of new work also deteriorated as the CBI's monthly order book balance fell to -28 from -26. The survey of 289 manufacturers covered Nov. 22 to Dec. 11, just before Johnson chalked up a comprehensive victory in last Thursday's election. Other surveys have also shown Britain's manufacturers have struggled in recent months against a global drop in demand, as well as uncertainty surrounding Brexit and the election. "With manufacturers reporting that output is declining at a pace not seen since the financial crisis, alongside another month of softer order books, it is crucially important to rebuild business confidence in this sector," CBI deputy chief economist Anna Leach said. "After three years of gridlock, the Prime Minister now has a clear mandate to govern. Businesses across the UK will want him to break the cycle of uncertainty," she added. The survey showed export orders declined at one of the fastest rates since the financial crisis.

UK factory output slides in three months to December at fastest rate since 2009: CBI

The number of people in employment rose by 24,000 to 32.8 million in the August-to-October period, bucking the median forecast for a drop of 10,000 in a Reuters poll of economists.

The employment rate hit an all-time high of 76.2 per cent&nbsp;while the unemployment rate fell back to its lowest level since the three months to January 1975 at 3.8 per cent.

"The larger-than-expected rise in employment in October suggests the labour market is not getting any worse and may have even started to turn around," said Andrew Wishart at Capital Economics.

The increase in jobs was driven by a rise in the number of self-employed workers and full-time staff, while the number of part-time employees fell.

British government bond prices fell by a small amount as investors viewed the chance of a Bank of England interest rate cut next year as slightly lower.

Britain's labour market has stayed strong even as the economy slowed following the 2016 referendum vote to leave the European Union. That is due in part to employers, who are uncertain about what Brexit will bring, hiring staff who can be laid off easily rather than making longer-term commitments to invest in equipment.

But there had been signs recently that the jobs boom was weakening. These prompted two interest-rate setters at the Bank of England to vote for a cut to borrowing costs last month, and they are expected to do so again this week.

Prime Minister Boris Johnson last week reduced some of the uncertainty hanging over the economy by winning a big majority in a national election, ending any doubts about whether Britain would <a href="https://www.wionews.com/world/first-stop-brexit-uks-johnson-gets-down-to-work-268636">leave</a> the European Union on the new date of January&nbsp;31.

Watch:&nbsp;UK PM Boris Johnson promises the speedy Brexit, to happen before January 31

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But nerves about Brexit could return soon. Johnson plans to pass a law ruling out any extension of the Brexit transition period beyond the end of 2020, saying he is confident he will clinch a free trade deal with the European Union by then.

There were some signs of caution among employers in Tuesday's data. Vacancies were the lowest since the three months to August 2017 at 794,000.

The Office for National Statistics also said average <a href="https://www.wionews.com/business-economy/sterling-rebounds-on-eve-of-uk-election-267749">earnings rose</a> by an annual 3.2 per cent, the weakest increase in more than a year and slowing sharply from growth of 3.7 per cent&nbsp;in the three months to September. The ONS attributed much of the slowdown, however, to high bonus payments in October 2018 which distorted the comparison.

Excluding bonuses, pay growth slowed less sharply to 3.5 per cent&nbsp;from 3.6 per cent&nbsp;in the three months to September and was above the polls forecast of 3.4 per cent.

The number of people in employment rose by 24,000 to 32.8 million in the August-to-October period, bucking the median forecast for a drop of 10,000 in a Reuters poll of economists.

The number of people in employment rose by 24,000 to 32.8 million in the August-to-October period, bucking the median forecast for a drop of 10,000 in a Reuters poll of economists. The employment rate hit an all-time high of 76.2 per cent while the unemployment rate fell back to its lowest level since the three months to January 1975 at 3.8 per cent. "The larger-than-expected rise in employment in October suggests the labour market is not getting any worse and may have even started to turn around," said Andrew Wishart at Capital Economics. The increase in jobs was driven by a rise in the number of self-employed workers and full-time staff, while the number of part-time employees fell. British government bond prices fell by a small amount as investors viewed the chance of a Bank of England interest rate cut next year as slightly lower. Britain's labour market has stayed strong even as the economy slowed following the 2016 referendum vote to leave the European Union. That is due in part to employers, who are uncertain about what Brexit will bring, hiring staff who can be laid off easily rather than making longer-term commitments to invest in equipment. But there had been signs recently that the jobs boom was weakening. These prompted two interest-rate setters at the Bank of England to vote for a cut to borrowing costs last month, and they are expected to do so again this week. Prime Minister Boris Johnson last week reduced some of the uncertainty hanging over the economy by winning a big majority in a national election, ending any doubts about whether Britain would leave the European Union on the new date of January 31. Watch: UK PM Boris Johnson promises the speedy Brexit, to happen before January 31 × But nerves about Brexit could return soon. Johnson plans to pass a law ruling out any extension of the Brexit transition period beyond the end of 2020, saying he is confident he will clinch a free trade deal with the European Union by then. There were some signs of caution among employers in Tuesday's data. Vacancies were the lowest since the three months to August 2017 at 794,000. The Office for National Statistics also said average earnings rose by an annual 3.2 per cent, the weakest increase in more than a year and slowing sharply from growth of 3.7 per cent in the three months to September. The ONS attributed much of the slowdown, however, to high bonus payments in October 2018 which distorted the comparison. Excluding bonuses, pay growth slowed less sharply to 3.5 per cent from 3.6 per cent in the three months to September and was above the polls forecast of 3.4 per cent.

UK jobs growth resumes, unemployment rate near 45-year low

The <a href="https://www.wionews.com/photos/united-states-china-trade-war-in-10-dates-230517">United States&nbsp;and Chinese officials</a> are working on a deal to postpone a round of tariffs set to hit Chinese imports in five days, according to a media report on Tuesday.

Delaying the new duties, which cover about $160 billion in imports, including consumer favourites like mobile phones, could help reassure markets the two sides are making progress towards ending their trade war.

Officials on both sides say they now expect to continue talking past December 15, when the tariffs are due to kick in, according to The Wall Street Journal.

The report helped move Wall Street futures into positive territory.

US officials have reiterated that any final decision by the American camp belongs to President Donald Trump.

For two months, the two sides have struggled to finalise a partial deal that Trump announced in October.

Statements by US officials have run hot and cold in recent days, with markets swooning last week after Trump said a deal could wait until after next year's elections.

But Larry Kudlow, a top White House economic aide, said Friday a deal was "still close."

<a href="https://www.wionews.com/world/ready-for-more-united-states-prisoner-swaps-iran-267212">Trump</a> launched his trade war in March 2018, demanding that China end practices widely seen as unfair,&nbsp;such as forced technology transfers from US firms, and massive subsidies given to Chinese firms.

But observers say Beijing is highly unlikely to make profound changes to the structure of its economy sought by Washington, which could politically undermine the Communist Party.

<a href="https://www.wionews.com/world/witnesses-named-for-trump-impeachment-hearing-in-united-states-house-265830">Trump has also sought pledges</a> from Beijing to make enormous purchases of US farm exports that experts say may exceed demand in China.

Should the December 15 tariffs take effect, virtually all the merchandise the United States imports annually from China will be covered by punitive tariffs.

The United States and Chinese officials are working on a deal to postpone a round of tariffs set to hit Chinese imports in five days, according to a media report on Tuesday.

The United States and Chinese officials are working on a deal to postpone a round of tariffs set to hit Chinese imports in five days, according to a media report on Tuesday. Delaying the new duties, which cover about $160 billion in imports, including consumer favourites like mobile phones, could help reassure markets the two sides are making progress towards ending their trade war. Officials on both sides say they now expect to continue talking past December 15, when the tariffs are due to kick in, according to The Wall Street Journal. The report helped move Wall Street futures into positive territory. US officials have reiterated that any final decision by the American camp belongs to President Donald Trump. For two months, the two sides have struggled to finalise a partial deal that Trump announced in October. Statements by US officials have run hot and cold in recent days, with markets swooning last week after Trump said a deal could wait until after next year's elections. But Larry Kudlow, a top White House economic aide, said Friday a deal was "still close." Trump launched his trade war in March 2018, demanding that China end practices widely seen as unfair, such as forced technology transfers from US firms, and massive subsidies given to Chinese firms. But observers say Beijing is highly unlikely to make profound changes to the structure of its economy sought by Washington, which could politically undermine the Communist Party. Trump has also sought pledges from Beijing to make enormous purchases of US farm exports that experts say may exceed demand in China. Should the December 15 tariffs take effect, virtually all the merchandise the United States imports annually from China will be covered by punitive tariffs.

United States, China working to delay December 15 tariffs: Report

Parle Biscuits, part of the Parle Products group, reported 15.2 per cent year-on-year (YoY) growth in net profit for the financial year 2018-19, with company’s FY19 net profit at Rs 410 crore against Rs 355 crore reported in the previous year. Total revenue too grew by a healthy 6.4 per cent YoY to Rs 9,030 crore.&nbsp;

Parle's good results would have ideally not caught much attention, had it not been for the raging controversy in August 2019 when the leftist eco-system indulged in viciously slanderous lies about how Parle Biscuits was on the verge of bankruptcy and was laying off staff as people in India could no longer afford to buy a packet of biscuits worth Rs 5.&nbsp;

Of course, it later came to light that vested interests that wanted a cut in the prevalent 18 per cent GST rate on biscuits were a part of the rumour mongering exercise to discredit the BJP-led NDA government. The Parle example is a befitting case of how prophets of gloom and doom have been working overtime to create a narrative that the Indian economy is falling off the cliff.

True, the economy is facing cyclical headwinds, after five excellent years of superior growth, witnessed during Narendra Modi's first term as Prime Minister. For the economy to reach the ambitious $5 trillion-mark by 2024-25, it will take the types of reform that were long-promised but never delivered by successive Congress-led UPA regimes. However, if there is any leader today who has both the vision and the will to execute that vision to put India into the global super league of nations, it is Modi whose first six months in office in his second term have shown that he means business.

Massive reductions in unwanted regulations, streamlining of labour laws, privatisation of state entities, removing swathes of bureaucracy, investments in infrastructure and of course, the courage to say no to a lop-sided trade deal like the Regional Comprehensive Economic Partnership (RCEP) are key highlights of Modi's economic agenda.

Under the inept UPA establishment, Free Trade Agreements (FTAs) that compromised India's economic interests had been the order of the day.

Between 2009-10 and 2013-14, the period during which Manmohan Singh was India's Prime Minister the Indian economy grew at 6.7 per cent and emerging market economies by 6.43 per cent. Between 2014-15 and 2018-19, the Indian economy under Prime Minister Modi grew at a superior yearly run rate of 7.4 per cent despite the emerging market space growing by 4.52 per cent. The recent 4.5 per cent GDP print for September 2019 quarter for India has, however, reignited the Modinomics versus Manmohanomics debate.

Where the Modi government has done significantly better than the Manmohan Singh regime is infrastructure. In March 2014, length of national highways stood at 91,287 kms and it had increased by March 2019 to a solid 135,676 kms, growing at &nbsp;8.25 per cent per year in Modi's first term versus a modest run rate of 5.29 per cent under his predecessor. Also, while the number of airline passengers grew by 9.2 per cent in the Manmohan years, the growth under Modi's first term was a record-breaking 15.28 per cent.

More importantly, Modinomics has managed the growth-inflation conundrum very effectively. In April 2014, retail inflation, defined by the consumer price index (CPI), stood at 7.72 per cent with food inflation at 9.21 per cent. CPI, however, averaged at just 4.3 per cent in Modi's first term, with food inflation at barely 1.59 per cent between October 2016 and October 2019. Importantly, food inflation was reined in, despite an average 24 per cent hike in MSP for Kharif crops in 2018. True, in October 2019, CPI touched 4.62 per cent, but the cumulative retail inflation in the April-October 2019 period is still benign, at just 3.47 per cent.

Coming back to the recent 'slowdown' in India, it is cyclical and not structural in nature, because the fundamentals of the economy are in fine fettle and long term growth is intact despite some short term concerns, as recently summed up by international rating giant S&amp;P while maintaining BBB minus with a stable outlook, for India. Out on bail and an accused in the INX media scam, former Finance Minister &nbsp;Chidambaram was recently heard giving bytes to the press that the current decline is structural in an obvious attempt to discredit hard facts. Mr Chidambaram is the last person, if any, who should be lecturing on the economy, given his abysmally poor track record in the past, in 2012, when S&amp;P had downgraded India's rating to BBB minus with a negative outlook, just a notch above junk status.

While one is not denying that there are short term challenges, prophets of gloom and doom are working overtime to undermine India's policymaking and policymakers. For instance, the IHS Markit India Manufacturing PMI, rose to 51.2 in November 2019, from 50.6 in October 2019, but this positive news failed to grab headlines in the 'pink' dailies.

While comparisons are often odious, India continues to decisively outperform peers. The recent sluggish pace comes against the global backdrop of 17 months of protracted US-China trade war, 6 months of massive protests in Hong Kong, leading to a 24.3 per cent decline in retail sales in October 2019, a technical recession in Singapore with GDP growth rate of barely 0.1 per cent in the September 2019 quarter, Venezuelan bankruptcy, double-dip recession in the world's 8th largest economy, Brazil, in May 2019, continued turbulence in the UK around Brexit, recession in Italy, steep slowdown in Japan amidst a trade war with South Korea and of course more importantly, industrial recession in Germany that is battling negative bond yields and its slowest growth rate since the 2011 Euro crisis. The September 2019 PMI number for Germany, the 4th largest economy globally, accounting for 28 per cent of Euro area's GDP, dropped to 49, the first time since April 2013 that Germany's PMI fell below 50.&nbsp;

Speaking of India, reduction in corporate tax from 30% to 22% and for new companies to merely 15%, hike in dearness allowance to 17% from 12%, hike in export credit limit under priority sector lending norms for small exporters, from Rs 25 crore per borrower to Rs 40 crore, corpus of Rs 25,000 crore for stalled housing projects, yearly payout of Rs 6000 to 14.5 crore farmers irrespective of landholding size,100% FDI in coal mining,sale of coal and contract manufacturing, 26% FDI in digital news media, Rs 70,000 crore recapitalisation package for public sector banks and allowing additional 15% depreciation for vehicles bought till 31st March 2020, are measures that will address the demand side of the economy, which has been tepid.

It needs to be mentioned here that passenger vehicle sales in India crossed the three-million milestone for the first time in 2016-17. Maruti Suzuki took 37 years to sell 20 million vehicles in India, with the first 10 million vehicles taking 29 long years to sell. Interestingly, the last 5 million units were sold in barely three years, between 2016-17 and 2019 and it is certainly no coincidence that this happened, with Narendra Modi at the helm! The recent sluggish pace in the auto sector this year which affected UK, Germany, China and Japan in equal measure, has been primarily been on account of stringent BS-VI emission norms. India, relatively speaking, fared much better, despite the disadvantage of a high base effect, thanks to the scorching pace of growth in the previous 5 years under Modi.

Repeated chatter that the current decline in GDP is the result of demonetisation is a myth. The number of income taxpayers jumped in 2018-19 to 8.45 crore from just 3.68 crore in 2013-14. Thanks to demonetisation, the total number of unified payment interface (UPI) transactions in October 2019 hit a record 1.15 billion. Under Manmohan Singh's tenure, the total number of digital transactions stood at a measly 93.2 crore in 2012-13; under Narendra Modi's leadership, digital transactions were a whopping 921.7 crore in volume terms in 2017-18.

Fear-mongering about the efficacy of goods and services tax (GST) is also incorrect as GST has strengthened tax compliance with the indirect tax to gross domestic product (GDP) ratio going up to 5.4 per cent post-GST, from 4.4 per cent in 2014-15.

Externally too, things under Narendra Modi look far healthier than they ever were under Manmohan Singh, with the share of short-term debt in total debt, at only 20 per cent in March 2019 versus a figure of 24.8 per cent in March 2013. Also, the ratio of short-term debt (original maturity) to foreign exchange reserves rose stood at a disturbing 33.1 per cent in March 2013, compared to 26.3 per cent in March 2019.

That the Modi government which successfully completed its first term and 6 months of the second term, with no BoP crisis till date, speaks volumes about the external debt management of the economy, despite challenging global geopolitics.

Foreign exchange reserves were, at a record $448.60 billion as on November 22nd 2019. Under Manmohan Singh's tenure, current account deficit (CAD), was consistently above 3.5 per cent, reaching a dangerous level of 6.7% in the December 2013 quarter, whereas the average CAD figure in Modi's first term, was well below 2%. Talking of foreign direct investment, while India averaged $18.2 billion in FDI annually under UPA I and, $38.4 billion under UPA II, in the Modi government's 5.5 years of tenure till date, the annual FDI figure averaged handsomely at almost $60 billion.

In terms of fiscal prudence too, the Narendra Modi regime wins hands down, with an average fiscal deficit figure of only 3.7% for the 2014-15 to 2018-19 period which is much better than the unreasonably high 5.4%, during the preceding five years, led by Manmohan Singh. That Modinomics has delivered high growth, without compromising macroeconomic stability, amidst the most globally volatile conditions, is therefore well established.

It would be apt to sum up India's future growth trajectory in Prime Minister Narendra Modi's own words from one of his recent public speeches where he so rightfully said--"Good governance with good intentions is the hallmark of our government. Implementation with integrity is our core passion".

Foreign exchange reserves were, at a record $448.60 billion as on November 22nd 2019. Under Manmohan Singh's tenure, current account deficit (CAD), was consistently above 3.5%, reaching a dangerous level of 6.7% in the December 2013 quarter, whereas the average CAD figure in Modi's first term, was well below 2%. Talking of foreign direct investment, while India averaged $18.2 billion in FDI annually under UPA I and, $38.4 billion under UPA II, in the Modi government's 5.5 years of tenure till date, the annual FDI figure averaged handsomely at almost $60 billion.

In terms of fiscal prudence too, the Narendra Modi regime wins hands down, with an average fiscal deficit figure of only 3.7% for the 2014-15 to 2018-19 period which is much better than the unreasonably high 5.4%, during the preceding five years, led by Manmohan Singh. That Modinomics has delivered high growth, without compromising macroeconomic stability, amidst the most globally volatile conditions, is therefore well established.

It would be apt to sum up India's future growth trajectory in Prime Minister Narendra Modi's own words from one of his recent public speeches where he so rightfully said--"Good governance with good intentions is the hallmark of our government. Implementation with integrity is our core passion".

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/business/column-economy-debate-modi-s-nda-versus-manmohan-s-upa-2804970">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

 
&nbsp;

Parle Biscuits, part of the Parle Products group, reported 15.2 per cent year-on-year (YoY) growth in net profit for the financial year 2018-19, with company’s FY19 net profit at Rs 410 crore against Rs 355 crore reported in the previous year.

Parle Biscuits, part of the Parle Products group, reported 15.2 per cent year-on-year (YoY) growth in net profit for the financial year 2018-19, with company’s FY19 net profit at Rs 410 crore against Rs 355 crore reported in the previous year. Total revenue too grew by a healthy 6.4 per cent YoY to Rs 9,030 crore. Parle's good results would have ideally not caught much attention, had it not been for the raging controversy in August 2019 when the leftist eco-system indulged in viciously slanderous lies about how Parle Biscuits was on the verge of bankruptcy and was laying off staff as people in India could no longer afford to buy a packet of biscuits worth Rs 5. Of course, it later came to light that vested interests that wanted a cut in the prevalent 18 per cent GST rate on biscuits were a part of the rumour mongering exercise to discredit the BJP-led NDA government. The Parle example is a befitting case of how prophets of gloom and doom have been working overtime to create a narrative that the Indian economy is falling off the cliff. True, the economy is facing cyclical headwinds, after five excellent years of superior growth, witnessed during Narendra Modi's first term as Prime Minister. For the economy to reach the ambitious $5 trillion-mark by 2024-25, it will take the types of reform that were long-promised but never delivered by successive Congress-led UPA regimes. However, if there is any leader today who has both the vision and the will to execute that vision to put India into the global super league of nations, it is Modi whose first six months in office in his second term have shown that he means business. Massive reductions in unwanted regulations, streamlining of labour laws, privatisation of state entities, removing swathes of bureaucracy, investments in infrastructure and of course, the courage to say no to a lop-sided trade deal like the Regional Comprehensive Economic Partnership (RCEP) are key highlights of Modi's economic agenda. Under the inept UPA establishment, Free Trade Agreements (FTAs) that compromised India's economic interests had been the order of the day. Between 2009-10 and 2013-14, the period during which Manmohan Singh was India's Prime Minister the Indian economy grew at 6.7 per cent and emerging market economies by 6.43 per cent. Between 2014-15 and 2018-19, the Indian economy under Prime Minister Modi grew at a superior yearly run rate of 7.4 per cent despite the emerging market space growing by 4.52 per cent. The recent 4.5 per cent GDP print for September 2019 quarter for India has, however, reignited the Modinomics versus Manmohanomics debate. Where the Modi government has done significantly better than the Manmohan Singh regime is infrastructure. In March 2014, length of national highways stood at 91,287 kms and it had increased by March 2019 to a solid 135,676 kms, growing at 8.25 per cent per year in Modi's first term versus a modest run rate of 5.29 per cent under his predecessor. Also, while the number of airline passengers grew by 9.2 per cent in the Manmohan years, the growth under Modi's first term was a record-breaking 15.28 per cent. More importantly, Modinomics has managed the growth-inflation conundrum very effectively. In April 2014, retail inflation, defined by the consumer price index (CPI), stood at 7.72 per cent with food inflation at 9.21 per cent. CPI, however, averaged at just 4.3 per cent in Modi's first term, with food inflation at barely 1.59 per cent between October 2016 and October 2019. Importantly, food inflation was reined in, despite an average 24 per cent hike in MSP for Kharif crops in 2018. True, in October 2019, CPI touched 4.62 per cent, but the cumulative retail inflation in the April-October 2019 period is still benign, at just 3.47 per cent. Coming back to the recent 'slowdown' in India, it is cyclical and not structural in nature, because the fundamentals of the economy are in fine fettle and long term growth is intact despite some short term concerns, as recently summed up by international rating giant S&P while maintaining BBB minus with a stable outlook, for India. Out on bail and an accused in the INX media scam, former Finance Minister Chidambaram was recently heard giving bytes to the press that the current decline is structural in an obvious attempt to discredit hard facts. Mr Chidambaram is the last person, if any, who should be lecturing on the economy, given his abysmally poor track record in the past, in 2012, when S&P had downgraded India's rating to BBB minus with a negative outlook, just a notch above junk status. While one is not denying that there are short term challenges, prophets of gloom and doom are working overtime to undermine India's policymaking and policymakers. For instance, the IHS Markit India Manufacturing PMI, rose to 51.2 in November 2019, from 50.6 in October 2019, but this positive news failed to grab headlines in the 'pink' dailies. While comparisons are often odious, India continues to decisively outperform peers. The recent sluggish pace comes against the global backdrop of 17 months of protracted US-China trade war, 6 months of massive protests in Hong Kong, leading to a 24.3 per cent decline in retail sales in October 2019, a technical recession in Singapore with GDP growth rate of barely 0.1 per cent in the September 2019 quarter, Venezuelan bankruptcy, double-dip recession in the world's 8th largest economy, Brazil, in May 2019, continued turbulence in the UK around Brexit, recession in Italy, steep slowdown in Japan amidst a trade war with South Korea and of course more importantly, industrial recession in Germany that is battling negative bond yields and its slowest growth rate since the 2011 Euro crisis. The September 2019 PMI number for Germany, the 4th largest economy globally, accounting for 28 per cent of Euro area's GDP, dropped to 49, the first time since April 2013 that Germany's PMI fell below 50. Speaking of India, reduction in corporate tax from 30% to 22% and for new companies to merely 15%, hike in dearness allowance to 17% from 12%, hike in export credit limit under priority sector lending norms for small exporters, from Rs 25 crore per borrower to Rs 40 crore, corpus of Rs 25,000 crore for stalled housing projects, yearly payout of Rs 6000 to 14.5 crore farmers irrespective of landholding size,100% FDI in coal mining,sale of coal and contract manufacturing, 26% FDI in digital news media, Rs 70,000 crore recapitalisation package for public sector banks and allowing additional 15% depreciation for vehicles bought till 31st March 2020, are measures that will address the demand side of the economy, which has been tepid. It needs to be mentioned here that passenger vehicle sales in India crossed the three-million milestone for the first time in 2016-17. Maruti Suzuki took 37 years to sell 20 million vehicles in India, with the first 10 million vehicles taking 29 long years to sell. Interestingly, the last 5 million units were sold in barely three years, between 2016-17 and 2019 and it is certainly no coincidence that this happened, with Narendra Modi at the helm! The recent sluggish pace in the auto sector this year which affected UK, Germany, China and Japan in equal measure, has been primarily been on account of stringent BS-VI emission norms. India, relatively speaking, fared much better, despite the disadvantage of a high base effect, thanks to the scorching pace of growth in the previous 5 years under Modi. Repeated chatter that the current decline in GDP is the result of demonetisation is a myth. The number of income taxpayers jumped in 2018-19 to 8.45 crore from just 3.68 crore in 2013-14. Thanks to demonetisation, the total number of unified payment interface (UPI) transactions in October 2019 hit a record 1.15 billion. Under Manmohan Singh's tenure, the total number of digital transactions stood at a measly 93.2 crore in 2012-13; under Narendra Modi's leadership, digital transactions were a whopping 921.7 crore in volume terms in 2017-18. Fear-mongering about the efficacy of goods and services tax (GST) is also incorrect as GST has strengthened tax compliance with the indirect tax to gross domestic product (GDP) ratio going up to 5.4 per cent post-GST, from 4.4 per cent in 2014-15. Externally too, things under Narendra Modi look far healthier than they ever were under Manmohan Singh, with the share of short-term debt in total debt, at only 20 per cent in March 2019 versus a figure of 24.8 per cent in March 2013. Also, the ratio of short-term debt (original maturity) to foreign exchange reserves rose stood at a disturbing 33.1 per cent in March 2013, compared to 26.3 per cent in March 2019. That the Modi government which successfully completed its first term and 6 months of the second term, with no BoP crisis till date, speaks volumes about the external debt management of the economy, despite challenging global geopolitics. Foreign exchange reserves were, at a record $448.60 billion as on November 22nd 2019. Under Manmohan Singh's tenure, current account deficit (CAD), was consistently above 3.5 per cent, reaching a dangerous level of 6.7% in the December 2013 quarter, whereas the average CAD figure in Modi's first term, was well below 2%. Talking of foreign direct investment, while India averaged $18.2 billion in FDI annually under UPA I and, $38.4 billion under UPA II, in the Modi government's 5.5 years of tenure till date, the annual FDI figure averaged handsomely at almost $60 billion. In terms of fiscal prudence too, the Narendra Modi regime wins hands down, with an average fiscal deficit figure of only 3.7% for the 2014-15 to 2018-19 period which is much better than the unreasonably high 5.4%, during the preceding five years, led by Manmohan Singh. That Modinomics has delivered high growth, without compromising macroeconomic stability, amidst the most globally volatile conditions, is therefore well established. It would be apt to sum up India's future growth trajectory in Prime Minister Narendra Modi's own words from one of his recent public speeches where he so rightfully said--"Good governance with good intentions is the hallmark of our government. Implementation with integrity is our core passion". Foreign exchange reserves were, at a record $448.60 billion as on November 22nd 2019. Under Manmohan Singh's tenure, current account deficit (CAD), was consistently above 3.5%, reaching a dangerous level of 6.7% in the December 2013 quarter, whereas the average CAD figure in Modi's first term, was well below 2%. Talking of foreign direct investment, while India averaged $18.2 billion in FDI annually under UPA I and, $38.4 billion under UPA II, in the Modi government's 5.5 years of tenure till date, the annual FDI figure averaged handsomely at almost $60 billion. In terms of fiscal prudence too, the Narendra Modi regime wins hands down, with an average fiscal deficit figure of only 3.7% for the 2014-15 to 2018-19 period which is much better than the unreasonably high 5.4%, during the preceding five years, led by Manmohan Singh. That Modinomics has delivered high growth, without compromising macroeconomic stability, amidst the most globally volatile conditions, is therefore well established. It would be apt to sum up India's future growth trajectory in Prime Minister Narendra Modi's own words from one of his recent public speeches where he so rightfully said--"Good governance with good intentions is the hallmark of our government. Implementation with integrity is our core passion". (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Economy Debate: Narendra Modi's NDA versus Manmohan Singh's UPA

Japanese Prime Minister Shinzo Abe unveiled <a href="https://www.wionews.com/business-economy/japan-preparing-120-billion-stimulus-package-as-recession-risks-grow-265859">$120 billion in stimulus measures</a> on Thursday, to help the world's third-largest economy overcome the aftermath of the nation's recent natural disasters.

The package is also aimed at helping the nation alleviate the impact of last month's tax hike and survive a potential economic slowdown after an Olympic boom.

"We will introduce a daring fiscal policy worth 13 trillion yen ($120 billion)," Abe told ministers and party leaders at the prime minister's office.

"We have crafted a powerful policy package," Abe added.

The package, expected to be endorsed at a cabinet meeting later in the day, totals some 26 trillion yen if spending by the private sector is counted, according to public broadcaster NHK and other local media.

Under the plan, the government will spend some six trillion yen on a public investment after a series of natural disasters,&nbsp;including killer Typhoon Hagibis,&nbsp;caused huge damage to the country's infrastructure, local media said.

Japan's economy has so far expanded this year, partially because of strong demand related to preparations for the Olympics, which will start in July next year. Some analysts warned the country may suffer a post-Olympic slump.

The package is also aimed at easing the impact of the consumption tax increase to 10 per cent from eight per cent on October 1 and helping Japanese firms prepare for a global economic slowdown due to the US-China trade dispute.

The Tokyo market welcomed the package.

"In particular, stimulus-related shares such as construction companies benefited from the announcement," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

But Yusuke Shimoda, an economist at Japan Research Institute, warned the impact of the package could be "limited."

"The package is likely to boost infrastructure-related businesses, but is unlikely to help reform the nation's slow-growth economy fundamentally," Shimoda said.

The package will also include government measures to help expand exports of farm products as a bilateral trade accord between Tokyo and Washington is set to take effect next year, Kyodo News said.

Among other steps, the government will help people in their 30s and 40s, who have been struggling to find work due to past economic slowdowns, to land new jobs, it said.

Japanese Prime Minister Shinzo Abe unveiled $120 billion in stimulus measures on Thursday, to help the world's third-largest economy overcome the aftermath of the nation's recent natural disasters.

Japanese Prime Minister Shinzo Abe unveiled $120 billion in stimulus measures on Thursday, to help the world's third-largest economy overcome the aftermath of the nation's recent natural disasters. The package is also aimed at helping the nation alleviate the impact of last month's tax hike and survive a potential economic slowdown after an Olympic boom. "We will introduce a daring fiscal policy worth 13 trillion yen ($120 billion)," Abe told ministers and party leaders at the prime minister's office. "We have crafted a powerful policy package," Abe added. The package, expected to be endorsed at a cabinet meeting later in the day, totals some 26 trillion yen if spending by the private sector is counted, according to public broadcaster NHK and other local media. Under the plan, the government will spend some six trillion yen on a public investment after a series of natural disasters, including killer Typhoon Hagibis, caused huge damage to the country's infrastructure, local media said. Japan's economy has so far expanded this year, partially because of strong demand related to preparations for the Olympics, which will start in July next year. Some analysts warned the country may suffer a post-Olympic slump. The package is also aimed at easing the impact of the consumption tax increase to 10 per cent from eight per cent on October 1 and helping Japanese firms prepare for a global economic slowdown due to the US-China trade dispute. The Tokyo market welcomed the package. "In particular, stimulus-related shares such as construction companies benefited from the announcement," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP. But Yusuke Shimoda, an economist at Japan Research Institute, warned the impact of the package could be "limited." "The package is likely to boost infrastructure-related businesses, but is unlikely to help reform the nation's slow-growth economy fundamentally," Shimoda said. The package will also include government measures to help expand exports of farm products as a bilateral trade accord between Tokyo and Washington is set to take effect next year, Kyodo News said. Among other steps, the government will help people in their 30s and 40s, who have been struggling to find work due to past economic slowdowns, to land new jobs, it said.

Japan unveils $120 billion stimulus package

Two Havana department stores began on Monday (December 02) to give change only in pesos, instead of the local dollar equivalent known as the convertible peso, in another step toward ending Cuba's dual monetary system.

Cuba takes another swipe at dual currency system

At 11.50 am on Monday, Sensex stood at 40,861.98 points, gaining 68.17&nbsp;(0.17 per cent), while Nifty clocked in 12,067.10 points,&nbsp;gaining 11.05&nbsp;(0.092 per cent).

MSCI's index of Asia-Pacific shares outside Japan gained 0.46 per cent&nbsp;after investors clung to hopes Beijing and Washington could reach a compromise in trade talks despite concerns of US&nbsp;support to the Honk Kong protests.

Investors at home seemed to have priced in the flagging economic growth, which slowed to 4.5 per cent&nbsp;for the July-September period.

Telecom stocks led gains among sectors as all three major operators in the country announced price hikes over the weekend after a court ruling forced them to cough up nearly $13 billion in dues and levies.

Bharti Airtel&nbsp;rose 8.03 per cent, Vodafone Idea jumped 16.06 per cent&nbsp;and Reliance Jio owner Reliance Industries&nbsp;advanced 3.57 per cent.

Vodafone was the biggest gainer among all stocks listed on the NSE, while Airtel gained most on the Nifty.

Among losers, Oil and Natural Gas Corp&nbsp;dropped 2.54 per cent&nbsp;and was the biggest drag on the indexes.

(With inputs from agencies)

At 11.50 am on Monday, Sensex stood at 40,861.98 points, gaining 68.17 (0.17 per cent), while Nifty clocked in 12,067.10 points, gaining 11.05 (0.092 per cent). MSCI's index of Asia-Pacific shares outside Japan gained 0.

At 11.50 am on Monday, Sensex stood at 40,861.98 points, gaining 68.17 (0.17 per cent), while Nifty clocked in 12,067.10 points, gaining 11.05 (0.092 per cent). MSCI's index of Asia-Pacific shares outside Japan gained 0.46 per cent after investors clung to hopes Beijing and Washington could reach a compromise in trade talks despite concerns of US support to the Honk Kong protests. Investors at home seemed to have priced in the flagging economic growth, which slowed to 4.5 per cent for the July-September period. Telecom stocks led gains among sectors as all three major operators in the country announced price hikes over the weekend after a court ruling forced them to cough up nearly $13 billion in dues and levies. Bharti Airtel rose 8.03 per cent, Vodafone Idea jumped 16.06 per cent and Reliance Jio owner Reliance Industries advanced 3.57 per cent. Vodafone was the biggest gainer among all stocks listed on the NSE, while Airtel gained most on the Nifty. Among losers, Oil and Natural Gas Corp dropped 2.54 per cent and was the biggest drag on the indexes. (With inputs from agencies)

Sensex rises by 68 points, Nifty gains 11

Decoding The Ongoing Economic Slowdown In India.

Gravitas: India's GDP Growth Rate Slumps To A 6-year Low

Finance Minister Nirmala Sitharaman on Wednesday admitted that growth may have come down but said it is not a recession yet.

She added that it will never be a recession ever in the country. In her address to Rajya Sabha, she said that India's real Gross Domestic Product (GDP) growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent.

Sitharaman said, "India's real Gross Domestic Product (GDP) growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent.

"The headline inflation in 2014 was 10.3 and in 2019 when the National Democratic Alliance (NDA) government concluded it was 4.5 only. The core inflation in 2014 was 9.4 and in 2019 was 5.1 only. The food inflation at 2014 was 11.2 and in 2019 just 3.5 only," she said.

"If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever," she added.

Opposition MPs, however, walked out of Rajya Sabha during the Finance Minister's reply on the economic situation of the country.&nbsp;

Finance Minister Nirmala Sitharaman on Wednesday admitted that growth may have come down but said it is not a recession yet. She added that it will never be a recession ever in the country.

Finance Minister Nirmala Sitharaman on Wednesday admitted that growth may have come down but said it is not a recession yet. She added that it will never be a recession ever in the country. In her address to Rajya Sabha, she said that India's real Gross Domestic Product (GDP) growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent. Sitharaman said, "India's real Gross Domestic Product (GDP) growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent. "The headline inflation in 2014 was 10.3 and in 2019 when the National Democratic Alliance (NDA) government concluded it was 4.5 only. The core inflation in 2014 was 9.4 and in 2019 was 5.1 only. The food inflation at 2014 was 11.2 and in 2019 just 3.5 only," she said. "If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever," she added. Opposition MPs, however, walked out of Rajya Sabha during the Finance Minister's reply on the economic situation of the country.

Growth may have come down but there isn't any recession: Sitharaman

Sensex opened at 41,034 points today, almost 200 points up. Yesterday, <a href="https://www.wionews.com/business-economy/sensex-hits-all-time-high-breaches-41k-mark-264523">it breached the 41,000 mark</a> for the first time in its history.&nbsp;

BSE Sensex currently stands at 41,034 points after surging 200 points or 0.50 per cent over the previous close. NSE Nifty gained 55 points or 0.46 per cent to go up 12,093 points.&nbsp;

Top gainers today included Yes Bank (4.96 per cent gain), Tata Motors (1.92 per cent), M&amp;M (1.57 per cent), Maruti (1.56 per cent), and HeroMotocorp (1.03 per cent).

The top losers today are&nbsp;TechM (which dropped by 0.25 per cent), Sun Pharma (0.07 per cent), and HDFC Bank (0.05 per cent).

Yesterday, the top gainers included Hindalco (1.54 per cent gain), Tata Steel (1.66 per cent), Yes Bank (2.12 per cent), ICICI Bank (1.46 per cent), Sun Pharma (1.24 per cent).

The top losers yesterday were Bharti Infratel (which dropped by 4.42 per cent), Zee Entertainment (2.41 per cent), Bharti Airtel (1.79 per cent), Nestle (1.23 per cent), and Grasim (0.82 per cent).&nbsp;

Sensex opened at 41,034 points today, almost 200 points up. Yesterday, it breached the 41,000 mark for the first time in its history. BSE Sensex currently stands at 41,034 points after surging 200 points or 0.

Sensex opened at 41,034 points today, almost 200 points up. Yesterday, it breached the 41,000 mark for the first time in its history. BSE Sensex currently stands at 41,034 points after surging 200 points or 0.50 per cent over the previous close. NSE Nifty gained 55 points or 0.46 per cent to go up 12,093 points. Top gainers today included Yes Bank (4.96 per cent gain), Tata Motors (1.92 per cent), M&M (1.57 per cent), Maruti (1.56 per cent), and HeroMotocorp (1.03 per cent). The top losers today are TechM (which dropped by 0.25 per cent), Sun Pharma (0.07 per cent), and HDFC Bank (0.05 per cent). Yesterday, the top gainers included Hindalco (1.54 per cent gain), Tata Steel (1.66 per cent), Yes Bank (2.12 per cent), ICICI Bank (1.46 per cent), Sun Pharma (1.24 per cent). The top losers yesterday were Bharti Infratel (which dropped by 4.42 per cent), Zee Entertainment (2.41 per cent), Bharti Airtel (1.79 per cent), Nestle (1.23 per cent), and Grasim (0.82 per cent).

Sensex steady at 41K points, Nifty gains 55 points

China is on a spending spree, building roads and buying influence and now it has bought an entire country. It is called Pakistan, the latest colony of the People's Republic of China.&nbsp;

China has invested billions in Pakistan as a result of which Pakistan owes more money to China than it owes to the IMF.&nbsp;

The China Pakistan Economic Corridor — or CPEC — is turning out to be a road to financial hell for Pakistan which is in the middle of an economic crisis.&nbsp;

Slowed down projects, missed deadlines, unavailability of cash and China's refusal to give more credit has led Pakistan into doing what it does best - ask for more money.&nbsp;

The Imran Khan government has turned to its neighbourhood for help.&nbsp;

Using marketing to hide its financial crisis, Pakistan is now selling a new proposal called 'CPEC Plus'.

The pitch is that Iran, UAE and Saudi Arabia should invest and become partners in the infrastructure projects.

Pakistan wants more people using CPEC, only then, can it hope to make enough money to pay back its lender - China.

The plan is quite simple, Pakistan will offer land to these countries, who should put in money to build railway lines and highways.

Since CPEC is proving to be a black hole for funds, it looks financially unviable, the projected revenues won't even cover loan payments.

Under Imran Khan, the progress on CPEC has been even slower, making China impatient which is now controlling not just the business but also the government of Pakistan.&nbsp;

China is deciding the makeup of the Pakistan cabinet and even sacking Pakistani ministers.&nbsp;

Last month, Pakistan missed the deadline to put the CPEC projects back on track, leading Beijing to jump in, who met officials from the Imran Khan government.

Some of these ministers were not playing ball, so, China had them fired from the position.&nbsp;

Case in point - Makhdoom Khusro Bakhtiar who was the minister of planning and development for Pakistan.

According to reports Bakhtiyar met with the Chinese two weeks ago, to get more financial commitments from China.

Bakhtiyar's failure led to China wanting him out immediately, which further led to his replacement into some other portfolio, out of China's way.&nbsp;

This amounts to the kind of control that China now has on Pakistan.

China can switch ministers at whim and Bakhtiar's case is only the beginning.&nbsp;

Reports say China has a long hit list and most likely it will have its way.&nbsp;

China is on a spending spree, building roads and buying influence and now it has bought an entire country. It is called Pakistan, the latest colony of the People's Republic of China.

China is on a spending spree, building roads and buying influence and now it has bought an entire country. It is called Pakistan, the latest colony of the People's Republic of China. China has invested billions in Pakistan as a result of which Pakistan owes more money to China than it owes to the IMF. The China Pakistan Economic Corridor — or CPEC — is turning out to be a road to financial hell for Pakistan which is in the middle of an economic crisis. Slowed down projects, missed deadlines, unavailability of cash and China's refusal to give more credit has led Pakistan into doing what it does best - ask for more money. The Imran Khan government has turned to its neighbourhood for help. Using marketing to hide its financial crisis, Pakistan is now selling a new proposal called 'CPEC Plus'. The pitch is that Iran, UAE and Saudi Arabia should invest and become partners in the infrastructure projects. Pakistan wants more people using CPEC, only then, can it hope to make enough money to pay back its lender - China. The plan is quite simple, Pakistan will offer land to these countries, who should put in money to build railway lines and highways. Since CPEC is proving to be a black hole for funds, it looks financially unviable, the projected revenues won't even cover loan payments. Under Imran Khan, the progress on CPEC has been even slower, making China impatient which is now controlling not just the business but also the government of Pakistan. China is deciding the makeup of the Pakistan cabinet and even sacking Pakistani ministers. Last month, Pakistan missed the deadline to put the CPEC projects back on track, leading Beijing to jump in, who met officials from the Imran Khan government. Some of these ministers were not playing ball, so, China had them fired from the position. Case in point - Makhdoom Khusro Bakhtiar who was the minister of planning and development for Pakistan. According to reports Bakhtiyar met with the Chinese two weeks ago, to get more financial commitments from China. Bakhtiyar's failure led to China wanting him out immediately, which further led to his replacement into some other portfolio, out of China's way. This amounts to the kind of control that China now has on Pakistan. China can switch ministers at whim and Bakhtiar's case is only the beginning. Reports say China has a long hit list and most likely it will have its way.

Pakistan trapped under debt, owes more money to China than IMF

The truth about CPEC is that it's a debt trap. The project has been controversial from the word go.

It was launched four years ago. The corridor is ridden with pitfalls and virtually no profits so far and its proving to be a long road to disaster.&nbsp;

In the year 2015, several ministers and government officials, led by Nawaz Sharif queued up to welcome Xi Jinping in Pakistan.

The Chinese president was there to unveil the "China-Pakistan economic corridor". A multi-billion-dollar plan that would transform Pakistan into a regional economic hub.&nbsp;

Four years later, the story of CPEC is quite different. It has failed to live up to the hype.

CPEC projects have slowed under Imran Khan. The cricketer-turned-politician began his prime ministership by ordering a comprehensive review.

"I think we should put everything on hold for a year so that we can get our act together. Perhaps we can stretch CPEC out over another five years or so", that's the reasoning that Pakistan's Minister for Commerce Abdul Razak Dawood gave last year.

The Imran Khan government maintained that they were not too happy with some contracts.

But, the problems are much deeper. The biggest concern is the security of the project. Terrorists have been targeting Chinese investments and citizens.

In May, three gunmen stormed a five-star hotel killing five people. The Pearl Continental hotel is being developed by China.

It's in Gwadar, home to the deep seaport that is the crown jewel of CPEC.

The biggest opposition is coming from Balochistan. The people there oppose Chinese investments. The Baloch people fear that they will become a minority in their own province if CPEC is allowed to go through.

Baloch nationalists have threatened and carried out attacks on Chinese installations.

China has invested too much in CPEC to back down now. Beijing has demanded security for Chinese nationals from Islamabad.

More than 17 thousand security personnel have been deployed for this purpose. But, china remains unhappy. Its investments still face the terror threat.

So Beijing is taking matters into their own hands. Some reports claim that Chinese troops have been spotted near CPEC projects.

By 2022, it plans to have its own city in Gwadar that will accommodate half a million Chinese citizens.

China is the clear beneficiary of CPEC. It will have its workforce working in Pakistan. Locals will have few job opportunities.

The bill for CPEC runs into billions of dollars. Almost all of the money for the projects is loaned from China and just like Sri Lanka, Pakistan is firmly caught in the dragon's debt trap.

The truth about CPEC is that it's a debt trap. The project has been controversial from the word go. It was launched four years ago. The corridor is ridden with pitfalls and virtually no profits so far and its proving to be a long road to disaster.

The truth about CPEC is that it's a debt trap. The project has been controversial from the word go. It was launched four years ago. The corridor is ridden with pitfalls and virtually no profits so far and its proving to be a long road to disaster. In the year 2015, several ministers and government officials, led by Nawaz Sharif queued up to welcome Xi Jinping in Pakistan. The Chinese president was there to unveil the "China-Pakistan economic corridor". A multi-billion-dollar plan that would transform Pakistan into a regional economic hub. Four years later, the story of CPEC is quite different. It has failed to live up to the hype. CPEC projects have slowed under Imran Khan. The cricketer-turned-politician began his prime ministership by ordering a comprehensive review. "I think we should put everything on hold for a year so that we can get our act together. Perhaps we can stretch CPEC out over another five years or so", that's the reasoning that Pakistan's Minister for Commerce Abdul Razak Dawood gave last year. The Imran Khan government maintained that they were not too happy with some contracts. But, the problems are much deeper. The biggest concern is the security of the project. Terrorists have been targeting Chinese investments and citizens. In May, three gunmen stormed a five-star hotel killing five people. The Pearl Continental hotel is being developed by China. It's in Gwadar, home to the deep seaport that is the crown jewel of CPEC. The biggest opposition is coming from Balochistan. The people there oppose Chinese investments. The Baloch people fear that they will become a minority in their own province if CPEC is allowed to go through. Baloch nationalists have threatened and carried out attacks on Chinese installations. China has invested too much in CPEC to back down now. Beijing has demanded security for Chinese nationals from Islamabad. More than 17 thousand security personnel have been deployed for this purpose. But, china remains unhappy. Its investments still face the terror threat. So Beijing is taking matters into their own hands. Some reports claim that Chinese troops have been spotted near CPEC projects. By 2022, it plans to have its own city in Gwadar that will accommodate half a million Chinese citizens. China is the clear beneficiary of CPEC. It will have its workforce working in Pakistan. Locals will have few job opportunities. The bill for CPEC runs into billions of dollars. Almost all of the money for the projects is loaned from China and just like Sri Lanka, Pakistan is firmly caught in the dragon's debt trap.

CPEC: A project that turns into a roadblock for Pakistan Economy

<a href="https://www.wionews.com/business-economy/indian-markets-end-big-as-bse-sensex-hits-lifetime-high-264376">Sensex opened over 200 points up</a> today, breaching the 41,000 mark for the first time in its history.&nbsp;

BSE Sensex currently stands at a lifetime high of 41,102.29 points after surging&nbsp;216 points or 0.53 per cent over the previous close. NSE Nifty gained 51 points or 0.42 per cent to go up&nbsp;12,126 points.&nbsp;

Top gainers included Hindalco (1.54 per cent gain), Tata Steel (1.66 per cent), Yes Bank (2.12 per cent), ICICI Bank (1.46 per cent), Sun Pharma (1.24 per cent).

The top losers were&nbsp;Bharti Infratel (which dropped by 4.42 per cent), Zee Entertainment (2.41 per cent), Bharti Airtel&nbsp;(1.79 per cent), Nestle (1.23 per cent), and Grasim (0.82 per cent).&nbsp;

On Saturday, US national security adviser Robert O'Brien had said an initial trade deal with China was still possible by the end of 2019 as a result&nbsp;Indian shares rose yesterday, led by metals and real estate stocks, while gains in broader Asia on hopes of progress in the US-China trade talks also boosted sentiment.&nbsp;

On Monday, Bharti Airtel was the biggest gainer in the Sensex pack with a rise of 7.20 per cent in its share value after telecom companies moved to Supreme Court regarding payment of Rs 92,000 crore dues to Department of Telecom.&nbsp;

Tata Steel, IndusInd Bank, Axis Bank, HDFC, Maruti and Tata Motors were the major gainers in the Sensex pack on Monday. In the Nifty, Bharti Airtel, Bharti Infratel, Tata Steel and Hindalco were the top earners. Only two stocks in the 30-share index ended in&nbsp;red.&nbsp;

Earlier, the <a href="https://www.wionews.com/business-economy/indian-markets-end-big-as-bse-sensex-hits-lifetime-high-264376">30-share-index</a>&nbsp;had touched a record high of 40,931.71 points in intraday trade.&nbsp;

(With inputs from agencies)

Sensex opened over 200 points up today, breaching the 41,000 mark for the first time in its history. BSE Sensex currently stands at a lifetime high of 41,102.29 points after surging 216 points or 0.

Sensex opened over 200 points up today, breaching the 41,000 mark for the first time in its history. BSE Sensex currently stands at a lifetime high of 41,102.29 points after surging 216 points or 0.53 per cent over the previous close. NSE Nifty gained 51 points or 0.42 per cent to go up 12,126 points. Top gainers included Hindalco (1.54 per cent gain), Tata Steel (1.66 per cent), Yes Bank (2.12 per cent), ICICI Bank (1.46 per cent), Sun Pharma (1.24 per cent). The top losers were Bharti Infratel (which dropped by 4.42 per cent), Zee Entertainment (2.41 per cent), Bharti Airtel (1.79 per cent), Nestle (1.23 per cent), and Grasim (0.82 per cent). On Saturday, US national security adviser Robert O'Brien had said an initial trade deal with China was still possible by the end of 2019 as a result Indian shares rose yesterday, led by metals and real estate stocks, while gains in broader Asia on hopes of progress in the US-China trade talks also boosted sentiment. On Monday, Bharti Airtel was the biggest gainer in the Sensex pack with a rise of 7.20 per cent in its share value after telecom companies moved to Supreme Court regarding payment of Rs 92,000 crore dues to Department of Telecom. Tata Steel, IndusInd Bank, Axis Bank, HDFC, Maruti and Tata Motors were the major gainers in the Sensex pack on Monday. In the Nifty, Bharti Airtel, Bharti Infratel, Tata Steel and Hindalco were the top earners. Only two stocks in the 30-share index ended in red. Earlier, the 30-share-index had touched a record high of 40,931.71 points in intraday trade. (With inputs from agencies)

Sensex hits all-time high, breaches 41K mark

Chinese President Xi Jinping today asserted his country's interest in working out a <a href="https://www.wionews.com/world/will-strive-to-reach-phase-one-trade-deal-with-us-china-263620">preliminary trade deal</a> with the United States. He added that he believes in avoiding a trade war, but is nonetheless afraid of retaliating when necessary.

"We want to work for a 'phase one' agreement on the basis of mutual respect and equality," Xi told representatives of an international forum, Reuters reported.

"When necessary, we will fight back, but we have been working actively to try not to have a trade war. We did not initiate this trade war and this is not something we want", Jinping added.

Xi was at the Great Hall of the People responding to questions from representatives of the New Economy Forum organised by Bloomberg LP in Beijing.

Yesterday, former US secretary of state <a href="https://www.wionews.com/world/us-china-trade-dispute-could-spark-a-real-war-world-war-i-broke-out-over-relatively-minor-crisis-former-us-secretary-of-state-henry-kissinger-263637">Henry Kissinger</a> warned that an armed conflict could break out between the United States and China if they fail to resolve their trade war.

Kissinger was instrumental in normalising diplomatic relations between Washington and Beijing, came at a conference in Beijing on the future of the two economic giants.

"If a conflict is permitted to run unconstrained, the outcome could be even worse than it was in Europe", he said at the Bloomberg New Economy Forum.

"World War I broke out because of a relatively minor crisis ... and today the weapons are more powerful," the former top diplomat said. 
 
Watch: China seeks sanctions on US at World Trade Organisation

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/wion-wallet-china-seeks-sanctions-on-us-in-world-trade-organisation-257427/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Earlier, China said that it is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal.&nbsp;

"This is in line with the interests of both China and the United States, and of the world," Gao Feng, a spokesman at the ministry, told reporters.&nbsp;

Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence.

Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US administration counters with heightened demands of its own.

(With inputs from Reuters)

Chinese President Xi Jinping today asserted his country's interest in working out a preliminary trade deal with the United States. He added that he believes in avoiding a trade war, but is nonetheless afraid of retaliating when necessary.

Chinese President Xi Jinping today asserted his country's interest in working out a preliminary trade deal with the United States. He added that he believes in avoiding a trade war, but is nonetheless afraid of retaliating when necessary. "We want to work for a 'phase one' agreement on the basis of mutual respect and equality," Xi told representatives of an international forum, Reuters reported. "When necessary, we will fight back, but we have been working actively to try not to have a trade war. We did not initiate this trade war and this is not something we want", Jinping added. Xi was at the Great Hall of the People responding to questions from representatives of the New Economy Forum organised by Bloomberg LP in Beijing. Yesterday, former US secretary of state Henry Kissinger warned that an armed conflict could break out between the United States and China if they fail to resolve their trade war. Kissinger was instrumental in normalising diplomatic relations between Washington and Beijing, came at a conference in Beijing on the future of the two economic giants. "If a conflict is permitted to run unconstrained, the outcome could be even worse than it was in Europe", he said at the Bloomberg New Economy Forum. "World War I broke out because of a relatively minor crisis ... and today the weapons are more powerful," the former top diplomat said. Watch: China seeks sanctions on US at World Trade Organisation Earlier, China said that it is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal. "This is in line with the interests of both China and the United States, and of the world," Gao Feng, a spokesman at the ministry, told reporters. Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence. Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US administration counters with heightened demands of its own. (With inputs from Reuters)

Want to 'work out' preliminary trade deal with US but not afraid of retaliating: Chinese President Xi Jinping

<a href="https://www.wionews.com/south-asia/mahinda-rajapaksa-has-been-sworn-in-as-the-prime-minister-of-sri-lanka-263600">Sri Lanka's presidential election</a> significantly increases policy uncertainty and could prompt loosening that exacerbates fiscal weaknesses and a rollback of reforms, according to Fitch Ratings. 
 
However, whether these risks materialise remains to be seen as a clear policy direction may only start to emerge after parliamentary elections. 
 
Gotabaya Rajapaksa of the Sri Lanka Podujana Peramuna (SLPP) defeated Sajith Premadasa of the ruling United National Party (UNP) in last week's election. He is a former defence secretary and the brother of SLPP leader and ex-president Mahinda Rajapaksa. 
 
Mahinda Rajapaksa has been named prime minister following the resignation of the UNP's Ranil Wickremesinghe, and an interim cabinet is likely to be appointed. 
 
The policy environment in Sri Lanka&nbsp;had improved following the resolution of the 2018 political crisis, supporting the resumption of fiscal and economic reforms and of Sri Lanka's IMF programme. However, political tensions could resurface ahead of elections to parliament, where the UNP is the largest party. 
 
These are expected early next year. The new president's constitutional reform plans could resurrect controversial proposals to enhance the executive's powers. 
 
<a href="https://www.wionews.com/south-asia/charges-dropped-against-immune-new-sri-lanka-president-263597">Gotabaya Rajapaksa's economic manifesto</a> targets average growth of 6.5 per cent or higher, compared with 3.2 per cent in 2018 and a Fitch-forecast 2.8 per cent in 2019, by promoting commodity and apparel exports, construction and tourism. "Strengthening growth and exports will be credit positive, but we think there is a risk of a more expansionary fiscal stance after the parliamentary elections." 
 
Under Mahinda Rajapaksa's presidency from 2005-2015, an aggressive infrastructure drive pushed up government debt. Gotabaya Rajapaksa's manifesto targets a budget deficit below 4 per cent of GDP and inflation below 5 per cent. 
 
"Although detailed economic plans are yet to be announced, we think achieving ambitious growth targets could entail stimulus measures that erode fiscal headroom which is limited by high public debt (about 83 per cent of GDP). This could undermine policy credibility, investor confidence, and potentially complicate relations with the IMF," said Fitch. 
 
The new president's manifesto suggests that the undermining of monetary policy credibility that was a feature of Mahinda Rajapaksa's presidency will not recur. 
 
An important measure of this commitment will be the status of a planned amendment to the Monetary Law Act, which would establish price stability as the central bank's primary objective and support the shift towards flexible inflation targeting. 
 
Gotabaya Rajapaksa's commitments on social spending and public-sector wages and pensions could jeopardise deficit reduction unless government revenue (which is low at just over 13 per cent of GDP) increases. 
 
His manifesto includes plans to replace the Inland Revenue Act, a lynchpin of fiscal reforms under the IMF programme, to unify VAT (currently 15 per cent) and the Nation-Building Tax (2 per cent) with a single VAT rate of 8 per cent and cap personal income tax rates at 15 per cent. If these lead to revenue losses, they could put Sri Lanka's medium-term fiscal consolidation plan at risk. 
 
A 4 per cent deficit may, therefore, prove challenging. "We forecast the deficit to stabilise at about 5 per cent of GDP in 2020-2021, as GDP growth recovers from the April bombings in Colombo. 
 
The market reaction to the election has been mildly positive. The Sri Lankan currency has appreciated by about 0.5 per cent against the dollar and the Colombo stock index rose by about 2 per cent. 
 
A row-back on reforms could have implications for Sri Lanka's IMF programme which has been extended to June 2020. The sixth review was completed in September and, coupled with 4.4 billion dollars of sovereign bond issuance this year, has eased near-term external pressures. 
 
But external debt repayments are substantial at 19 billion dollars in 2020-2023 against reserves of 7.8 billion dollars.

Sri Lanka's presidential election significantly increases policy uncertainty and could prompt loosening that exacerbates fiscal weaknesses and a rollback of reforms, according to Fitch Ratings.

Sri Lanka's presidential election significantly increases policy uncertainty and could prompt loosening that exacerbates fiscal weaknesses and a rollback of reforms, according to Fitch Ratings. However, whether these risks materialise remains to be seen as a clear policy direction may only start to emerge after parliamentary elections. Gotabaya Rajapaksa of the Sri Lanka Podujana Peramuna (SLPP) defeated Sajith Premadasa of the ruling United National Party (UNP) in last week's election. He is a former defence secretary and the brother of SLPP leader and ex-president Mahinda Rajapaksa. Mahinda Rajapaksa has been named prime minister following the resignation of the UNP's Ranil Wickremesinghe, and an interim cabinet is likely to be appointed. The policy environment in Sri Lanka had improved following the resolution of the 2018 political crisis, supporting the resumption of fiscal and economic reforms and of Sri Lanka's IMF programme. However, political tensions could resurface ahead of elections to parliament, where the UNP is the largest party. These are expected early next year. The new president's constitutional reform plans could resurrect controversial proposals to enhance the executive's powers. Gotabaya Rajapaksa's economic manifesto targets average growth of 6.5 per cent or higher, compared with 3.2 per cent in 2018 and a Fitch-forecast 2.8 per cent in 2019, by promoting commodity and apparel exports, construction and tourism. "Strengthening growth and exports will be credit positive, but we think there is a risk of a more expansionary fiscal stance after the parliamentary elections." Under Mahinda Rajapaksa's presidency from 2005-2015, an aggressive infrastructure drive pushed up government debt. Gotabaya Rajapaksa's manifesto targets a budget deficit below 4 per cent of GDP and inflation below 5 per cent. "Although detailed economic plans are yet to be announced, we think achieving ambitious growth targets could entail stimulus measures that erode fiscal headroom which is limited by high public debt (about 83 per cent of GDP). This could undermine policy credibility, investor confidence, and potentially complicate relations with the IMF," said Fitch. The new president's manifesto suggests that the undermining of monetary policy credibility that was a feature of Mahinda Rajapaksa's presidency will not recur. An important measure of this commitment will be the status of a planned amendment to the Monetary Law Act, which would establish price stability as the central bank's primary objective and support the shift towards flexible inflation targeting. Gotabaya Rajapaksa's commitments on social spending and public-sector wages and pensions could jeopardise deficit reduction unless government revenue (which is low at just over 13 per cent of GDP) increases. His manifesto includes plans to replace the Inland Revenue Act, a lynchpin of fiscal reforms under the IMF programme, to unify VAT (currently 15 per cent) and the Nation-Building Tax (2 per cent) with a single VAT rate of 8 per cent and cap personal income tax rates at 15 per cent. If these lead to revenue losses, they could put Sri Lanka's medium-term fiscal consolidation plan at risk. A 4 per cent deficit may, therefore, prove challenging. "We forecast the deficit to stabilise at about 5 per cent of GDP in 2020-2021, as GDP growth recovers from the April bombings in Colombo. The market reaction to the election has been mildly positive. The Sri Lankan currency has appreciated by about 0.5 per cent against the dollar and the Colombo stock index rose by about 2 per cent. A row-back on reforms could have implications for Sri Lanka's IMF programme which has been extended to June 2020. The sixth review was completed in September and, coupled with 4.4 billion dollars of sovereign bond issuance this year, has eased near-term external pressures. But external debt repayments are substantial at 19 billion dollars in 2020-2023 against reserves of 7.8 billion dollars.

Sri Lanka's election result increases policy uncertainty: Fitch ratings

After globalisation, trends show that foreign investors gravitate towards emerging markets and India is no exception. Since investors buy when prices are low and sell after prices increase, India’s entrepreneurship boom has attracted massive foreign investment. This, in turn, has increased liquidity in local markets and expanded India’s investor base overall.&nbsp;

Great news. Now there is a bigger question. Many critics state that this is just a temporary ‘surge’ and this amount of foreign investment will not last for long, particularly during economic slowdowns. However, there are ways that the central government can ensure that foreign investment can be long-term. Looking at some of the major determinants for current foreign investment may help give a clearer indication of what can be done for guaranteed longstanding foreign investment in the country. &nbsp;

Volatility

A major determinant of foreign investment is volatility in the Indian capital market. While volatility introduces risk for investors, it also potentially means superior returns. Experts have quoted many factors for volatility in India including the US ripple effect, a fiscal slippage (in terms of deficit target), a rise in crude oil prices (India is highly dependent on oil for its energy; rises negatively affect the entire country) and new budget proposals (especially with India’s budget session coming up in the next few weeks). Despite this, foreign investors are attracted because India proves to be a prime example of a pre-downturn emerging market. With its young population and a strong GDP, India is by far the world’s fastest-growing economy. Another strong reason attracting foreign investors is aggressive action by the Narendra Modi government. The Modi 1.0 and 2.0 government have shown that the Centre is looking at long term economic well-being and not short term gain for political capital. For example, India is the only emerging market that pays for its commodities (ie. oil) abroad in local rupees rather than using the US dollar. This means that India’s capital investment, even in the future, is not dependant on the US dollar. &nbsp;&nbsp;

The amount of foreign investment looks fantastic in the short term. In order to maintain a high level of overseas investment in India consistently, the government can take several steps to maximize long term gain. One idea is to enforce more specific regulations like applying a selective control measure for foreign investment flow. Tax measures would also keep attracting investors, especially during economic growth slowdowns. Additionally, appropriate policy rules and regulations would also prevent existing foreign companies and MNCs in India to dominate retail trade.&nbsp;

This, in turn, would encourage Indian start-ups to enter the playing field which also keeps investors interested. &nbsp;

Easing Restrictions

Another way to ensure long term foreign investment is to ease restrictions on FDI by joint ventures as well as owned subsidiaries of Indian companies. The existing legal framework under Foreign Exchange Management Act (FEMA) does not allow for FDI by an overseas joint venture or Indian wholly-owned subsidiary without RBI approval. There are also restrictions on Indian firms investing overseas in foreign firms. Overseas direct investment is crucial, especially in times of economic growth slowdown and a lack of investment by the Indian corporate sector. This would help increase foreign funds into Indian business activities. India’s investment in foreign entities would also lead to long term interests overseas which in turn helps foreign investment flow in. &nbsp;

Market Capitalisation

The capitalisation of publicly traded companies is another major determinant of foreign investment flow because it increases it. This capitalisation is important to long term because, over time, a firm increases good performance and an increase in employees. Market capitalisation can also positively and significantly impact GDP growth. But for this, India needs more clarity. Many market experts blame weak availability of domestic data as a huge blow to the stock market. To add to that, the weakening of the Indian rupee, over-taxing foreign portfolio investors and poor corporate earnings also contribute to weaker market sentiment. &nbsp;

Continued focus should be given by the government on a stock market that aims for economic development. This would help attract long term foreign investment. Examples of this are agriculture, green energy and aviation. A controlled and consistent Indian capital market would be irresistible to international portfolio investors. Development based investment is also generally aimed for long term gain and would, therefore, be mutually beneficial for India as well as for overseas investors.&nbsp; &nbsp; 
 
Conclusion

Of course, there are other determinants for foreign investment in India including unforeseen circumstances that can potentially occur. But it is promising to note that the central government is focusing on long term economic stability versus short term gains. For example, this can be seen with PM Narendra Modi’s aggressive focus on development via infrastructure, aviation, diversifying exports, expanding foreign policy, health-care, education, etc. Continued progress at the grassroots level through projects like the Awas Yojana, Ujjwala Yojana and Ayushman Bharat also eventually help the economy by developing the country. &nbsp;

Eventually, as the market becomes regulated with active foreign investors, financial policies should focus on allocating resources and maintaining a healthy financial market. With patience comes great things. As a young, working professional in India, I would rather take a few economic road bumps now in order to gain a strong, diversified and stable market in the near future. It is sad that critics and even experts in the field do not share this patience. Rather, they choose to publish their stances only considering short term conditions. &nbsp;

&nbsp;(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

After globalisation, trends show that foreign investors gravitate towards emerging markets and India is no exception. Since investors buy when prices are low and sell after prices increase, India’s entrepreneurship boom has attracted massive foreign investment.

After globalisation, trends show that foreign investors gravitate towards emerging markets and India is no exception. Since investors buy when prices are low and sell after prices increase, India’s entrepreneurship boom has attracted massive foreign investment. This, in turn, has increased liquidity in local markets and expanded India’s investor base overall. Great news. Now there is a bigger question. Many critics state that this is just a temporary ‘surge’ and this amount of foreign investment will not last for long, particularly during economic slowdowns. However, there are ways that the central government can ensure that foreign investment can be long-term. Looking at some of the major determinants for current foreign investment may help give a clearer indication of what can be done for guaranteed longstanding foreign investment in the country. Volatility A major determinant of foreign investment is volatility in the Indian capital market. While volatility introduces risk for investors, it also potentially means superior returns. Experts have quoted many factors for volatility in India including the US ripple effect, a fiscal slippage (in terms of deficit target), a rise in crude oil prices (India is highly dependent on oil for its energy; rises negatively affect the entire country) and new budget proposals (especially with India’s budget session coming up in the next few weeks). Despite this, foreign investors are attracted because India proves to be a prime example of a pre-downturn emerging market. With its young population and a strong GDP, India is by far the world’s fastest-growing economy. Another strong reason attracting foreign investors is aggressive action by the Narendra Modi government. The Modi 1.0 and 2.0 government have shown that the Centre is looking at long term economic well-being and not short term gain for political capital. For example, India is the only emerging market that pays for its commodities (ie. oil) abroad in local rupees rather than using the US dollar. This means that India’s capital investment, even in the future, is not dependant on the US dollar. The amount of foreign investment looks fantastic in the short term. In order to maintain a high level of overseas investment in India consistently, the government can take several steps to maximize long term gain. One idea is to enforce more specific regulations like applying a selective control measure for foreign investment flow. Tax measures would also keep attracting investors, especially during economic growth slowdowns. Additionally, appropriate policy rules and regulations would also prevent existing foreign companies and MNCs in India to dominate retail trade. This, in turn, would encourage Indian start-ups to enter the playing field which also keeps investors interested. Easing Restrictions Another way to ensure long term foreign investment is to ease restrictions on FDI by joint ventures as well as owned subsidiaries of Indian companies. The existing legal framework under Foreign Exchange Management Act (FEMA) does not allow for FDI by an overseas joint venture or Indian wholly-owned subsidiary without RBI approval. There are also restrictions on Indian firms investing overseas in foreign firms. Overseas direct investment is crucial, especially in times of economic growth slowdown and a lack of investment by the Indian corporate sector. This would help increase foreign funds into Indian business activities. India’s investment in foreign entities would also lead to long term interests overseas which in turn helps foreign investment flow in. Market Capitalisation The capitalisation of publicly traded companies is another major determinant of foreign investment flow because it increases it. This capitalisation is important to long term because, over time, a firm increases good performance and an increase in employees. Market capitalisation can also positively and significantly impact GDP growth. But for this, India needs more clarity. Many market experts blame weak availability of domestic data as a huge blow to the stock market. To add to that, the weakening of the Indian rupee, over-taxing foreign portfolio investors and poor corporate earnings also contribute to weaker market sentiment. Continued focus should be given by the government on a stock market that aims for economic development. This would help attract long term foreign investment. Examples of this are agriculture, green energy and aviation. A controlled and consistent Indian capital market would be irresistible to international portfolio investors. Development based investment is also generally aimed for long term gain and would, therefore, be mutually beneficial for India as well as for overseas investors. Conclusion Of course, there are other determinants for foreign investment in India including unforeseen circumstances that can potentially occur. But it is promising to note that the central government is focusing on long term economic stability versus short term gains. For example, this can be seen with PM Narendra Modi’s aggressive focus on development via infrastructure, aviation, diversifying exports, expanding foreign policy, health-care, education, etc. Continued progress at the grassroots level through projects like the Awas Yojana, Ujjwala Yojana and Ayushman Bharat also eventually help the economy by developing the country. Eventually, as the market becomes regulated with active foreign investors, financial policies should focus on allocating resources and maintaining a healthy financial market. With patience comes great things. As a young, working professional in India, I would rather take a few economic road bumps now in order to gain a strong, diversified and stable market in the near future. It is sad that critics and even experts in the field do not share this patience. Rather, they choose to publish their stances only considering short term conditions. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Ensuring long term foreign investment in India

<a href="https://www.wionews.com/world/alberto-fernandez-wins-argentina-presidential-election-258405">President-elect Alberto Fernandez</a> said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially.

"We cannot make more fiscal adjustments because the situation is enormously complicated," Fernandez, a centre-left Peronist, said in a statement after speaking with IMF chief Kristalina Georgieva.

Fernandez's predecessor Mauricio Macri last year negotiated a $57 billion bailout from the IMF to halt a devastating currency skid.

The economy is in recession and expected to shrink by 3.1 per cent this year, according to the IMF. More than a third of the population lives below the poverty line. Inflation is running at 42 per cent.

Watch: Alberto Fernandez wins presidency

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-argentina-elections-alberto-fernandez-wins-presidency-258567/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Fernandez, with former president Cristina Kirchner as his running mate, defeated Macri in October elections.

The return of the Peronists had prompted fears that Argentina might not live up to its debt obligations.

The government has important debt payments coming up next year, both principal and interest.

The government says that as of the second quarter of this year Argentina's debt totalled $336 billion, or 80 per cent of GDP.

President-elect Alberto Fernandez said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially.

President-elect Alberto Fernandez said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially. "We cannot make more fiscal adjustments because the situation is enormously complicated," Fernandez, a centre-left Peronist, said in a statement after speaking with IMF chief Kristalina Georgieva. Fernandez's predecessor Mauricio Macri last year negotiated a $57 billion bailout from the IMF to halt a devastating currency skid. The economy is in recession and expected to shrink by 3.1 per cent this year, according to the IMF. More than a third of the population lives below the poverty line. Inflation is running at 42 per cent. Watch: Alberto Fernandez wins presidency Fernandez, with former president Cristina Kirchner as his running mate, defeated Macri in October elections. The return of the Peronists had prompted fears that Argentina might not live up to its debt obligations. The government has important debt payments coming up next year, both principal and interest. The government says that as of the second quarter of this year Argentina's debt totalled $336 billion, or 80 per cent of GDP.

Argentina's President-elect vows to make good on debt without austerity measures

<a href="https://www.wionews.com/business-economy/china-coal-fired-power-capacity-still-rising-bucking-global-trend-study-263298">China</a> on Wednesday cut interest rates in a bid to shore up the world's number two economy as cooling domestic demand and a bruising trade spat with the United States hit growth.

The reduction in the loan prime rate (LPR) -- one of the preferential rates commercial banks impose on their best customers and which serves as a reference for other lending rates,&nbsp;was widely expected after disappointing economic data in October.

The one-year LPR was lowered to 4.15 per cent from 4.20 per cent in October, the <a href="https://www.wionews.com/business-economy/nifty-sensex-tick-up-psu-banks-lead-gains-262835">People's Bank of China</a> (PBoC) said in a statement.

The five-year LPR,&nbsp;on which many lenders base their mortgage rates,&nbsp;was also lowered&nbsp;to 4.8 per cent from 4.85 per cent.&nbsp;

The PBoC announced in August a plan to better reflect market changes with a new benchmark lending rate. The LPR, released on the 20th day of every month, is based on rates of the central bank's open market operations, especially medium-term lending facility rates.

The LPR cut is the latest in a series of measures used to reduce borrowing costs as China attempts to free up funds for credit-starved parts of the economy.&nbsp;

Beijing is struggling to kickstart the economy, which expanded at its lowest pace for nearly three decades in the third quarter, battered by the US trade war, falling global demand for its goods and government battles against debt.

The PBoC on Monday trimmed the seven-day reverse repurchase rate to 2.50 per cent from 2.55 per cent, encouraging commercial banks to lend more to small and medium-sized companies.

However, cutting the LPR will have a "small" impact on the economy&nbsp;since it will "not lower the interest rate on the bulk of outstanding loans that are still linked to the PBoC's traditional lending rate", said Julian Evans-Pritchard at Capital Economics.

The decline in the five-year LPR "hints at a possible softening" of restrictions on property buying put in place to mitigate price bubbles, he wrote in a research note.&nbsp;

China on Wednesday cut interest rates in a bid to shore up the world's number two economy as cooling domestic demand and a bruising trade spat with the United States hit growth.

China on Wednesday cut interest rates in a bid to shore up the world's number two economy as cooling domestic demand and a bruising trade spat with the United States hit growth. The reduction in the loan prime rate (LPR) -- one of the preferential rates commercial banks impose on their best customers and which serves as a reference for other lending rates, was widely expected after disappointing economic data in October. The one-year LPR was lowered to 4.15 per cent from 4.20 per cent in October, the People's Bank of China (PBoC) said in a statement. The five-year LPR, on which many lenders base their mortgage rates, was also lowered to 4.8 per cent from 4.85 per cent. The PBoC announced in August a plan to better reflect market changes with a new benchmark lending rate. The LPR, released on the 20th day of every month, is based on rates of the central bank's open market operations, especially medium-term lending facility rates. The LPR cut is the latest in a series of measures used to reduce borrowing costs as China attempts to free up funds for credit-starved parts of the economy. Beijing is struggling to kickstart the economy, which expanded at its lowest pace for nearly three decades in the third quarter, battered by the US trade war, falling global demand for its goods and government battles against debt. The PBoC on Monday trimmed the seven-day reverse repurchase rate to 2.50 per cent from 2.55 per cent, encouraging commercial banks to lend more to small and medium-sized companies. However, cutting the LPR will have a "small" impact on the economy since it will "not lower the interest rate on the bulk of outstanding loans that are still linked to the PBoC's traditional lending rate", said Julian Evans-Pritchard at Capital Economics. The decline in the five-year LPR "hints at a possible softening" of restrictions on property buying put in place to mitigate price bubbles, he wrote in a research note.

China cuts new benchmark rate to boost economy

What Would An Unstable Iran Mean For The World

WION Edit: An Unstable Iran is a threat to global peace and Economy

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation.

Moise also told Reuters he was holding closed-door talks with civil society groups and the private sector, as well as radical and moderate members of the opposition in a bid to break political gridlock by creating a government of unity.

However the 51-year-old president - who faces widespread anger over galloping inflation, rampant insecurity and allegations of corruption - would not say with whom he was talking. Haiti's leading opposition parties have for months said the time for dialogue is over.

"We are in the midst of a humanitarian crisis," Moise said in the interview on Friday in the garden of his home in the hillside suburb of Petionville, overlooking Port-au-Prince and the Caribbean sea. "We need international support to get through this crisis."

More than one-in-three Haitians need urgent assistance to meet their daily food requirements, meaning nearly 3.7 million people, the U.N. World Food Program (WFP) said earlier this month.

But aid organizations are struggling to provide relief due to protester barricades blocking roads, as well as gang violence and other crime. The WFP has said it is ready to launch air and maritime transport operations but needs to raise $2.9 million to do so.

Moise said his acting government had written to the Trump administration requesting aid last month and the US&nbsp;Agency for International Development agreed to provide 2,000 tonnes of food aid to address urgent needs.

The opposition accuses the United States, which has frequently determined the fate of Haitian politics, of propping up Moise and ignoring the people.

The US&nbsp;government has urged all stakeholders to work toward an inclusive dialogue without pre-conditions.

Fuel shortages in August sparked protests that have morphed into a fierce campaign against Moise that has shuttered businesses and schools and galvanized the political opposition.

While turnout in what has become Haiti's longest wave of demonstrations for years has weakened somewhat over the last two weeks, the opposition is calling for a nationwide protest on Monday, a bank holiday that commemorates a major battle of Haiti's independence war.&nbsp;

Moise said he started meeting "lots of people" behind closed doors a week and a half ago, rather than continuing to meet in public.

Two of the most prominent opposition leaders, Andre Michel and Moise Jean Charles, as well as the spokesman of the Episcopal Conference Father Loudeger Mazile, told Reuters they were not participating in the conversations and did not know of any significant figure or group that was.

Democratic void

Haiti has not had a government since March as parliament is required to ratify the president's choice of the prime minister and the minority opposition has blocked such a vote from taking place.

The opposition accuses Moise's ruling alliance of seeking to replace the previous prime minister because he was too keen on investigating the embezzlement of Venezuelan aid funds that could have sullied its members, including the president himself. Moise denies any wrongdoing.

The lack of a government, in turn, is preventing Haiti from accessing hundreds of millions of dollars in international aid funds as well as loans from the World Bank, Inter-American Bank and others earmarked for it.

From next year, it will no longer have a parliament either. The mandates of deputies and most senators ends in January and Haiti failed to hold legislative elections in October as required by the constitution.

"We don't want to govern the country without democratic institutions," said Moise. "But unfortunately it looks like we are headed in that direction and that's why today we are working on finding a political accord."

He reiterated that he had no intention of resigning or holding early elections.

Instead, he said, he wanted to carry out reforms including changing the constitution to strengthen the president's powers so he is not held hostage by parliament.

The presidency is weak under Haiti's current constitution as it was written in the wake of the dynastic dictatorships of Francois "Papa Doc" Duvalier and his son Jean-Claude "Baby Doc" Duvalier.

On the economic front, Moise said he hopes to implement stronger mechanisms to avoid tax and customs evasion to help reduce the ballooning budgetary deficit. This could in turn help bring down inflation of around 20 per cent.

On the investigation into the alleged embezzlement of Venezuelan aid funds, the president said his acting government was pressing for an update.

Moise's opponents, who say he disappeared from public sight at the start of the current crisis, criticize it as too little too late, nearly three years into his five-year mandate.

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation.

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation. Moise also told Reuters he was holding closed-door talks with civil society groups and the private sector, as well as radical and moderate members of the opposition in a bid to break political gridlock by creating a government of unity. However the 51-year-old president - who faces widespread anger over galloping inflation, rampant insecurity and allegations of corruption - would not say with whom he was talking. Haiti's leading opposition parties have for months said the time for dialogue is over. "We are in the midst of a humanitarian crisis," Moise said in the interview on Friday in the garden of his home in the hillside suburb of Petionville, overlooking Port-au-Prince and the Caribbean sea. "We need international support to get through this crisis." More than one-in-three Haitians need urgent assistance to meet their daily food requirements, meaning nearly 3.7 million people, the U.N. World Food Program (WFP) said earlier this month. But aid organizations are struggling to provide relief due to protester barricades blocking roads, as well as gang violence and other crime. The WFP has said it is ready to launch air and maritime transport operations but needs to raise $2.9 million to do so. Moise said his acting government had written to the Trump administration requesting aid last month and the US Agency for International Development agreed to provide 2,000 tonnes of food aid to address urgent needs. The opposition accuses the United States, which has frequently determined the fate of Haitian politics, of propping up Moise and ignoring the people. The US government has urged all stakeholders to work toward an inclusive dialogue without pre-conditions. Fuel shortages in August sparked protests that have morphed into a fierce campaign against Moise that has shuttered businesses and schools and galvanized the political opposition. While turnout in what has become Haiti's longest wave of demonstrations for years has weakened somewhat over the last two weeks, the opposition is calling for a nationwide protest on Monday, a bank holiday that commemorates a major battle of Haiti's independence war. Moise said he started meeting "lots of people" behind closed doors a week and a half ago, rather than continuing to meet in public. Two of the most prominent opposition leaders, Andre Michel and Moise Jean Charles, as well as the spokesman of the Episcopal Conference Father Loudeger Mazile, told Reuters they were not participating in the conversations and did not know of any significant figure or group that was. Democratic void Haiti has not had a government since March as parliament is required to ratify the president's choice of the prime minister and the minority opposition has blocked such a vote from taking place. The opposition accuses Moise's ruling alliance of seeking to replace the previous prime minister because he was too keen on investigating the embezzlement of Venezuelan aid funds that could have sullied its members, including the president himself. Moise denies any wrongdoing. The lack of a government, in turn, is preventing Haiti from accessing hundreds of millions of dollars in international aid funds as well as loans from the World Bank, Inter-American Bank and others earmarked for it. From next year, it will no longer have a parliament either. The mandates of deputies and most senators ends in January and Haiti failed to hold legislative elections in October as required by the constitution. "We don't want to govern the country without democratic institutions," said Moise. "But unfortunately it looks like we are headed in that direction and that's why today we are working on finding a political accord." He reiterated that he had no intention of resigning or holding early elections. Instead, he said, he wanted to carry out reforms including changing the constitution to strengthen the president's powers so he is not held hostage by parliament. The presidency is weak under Haiti's current constitution as it was written in the wake of the dynastic dictatorships of Francois "Papa Doc" Duvalier and his son Jean-Claude "Baby Doc" Duvalier. On the economic front, Moise said he hopes to implement stronger mechanisms to avoid tax and customs evasion to help reduce the ballooning budgetary deficit. This could in turn help bring down inflation of around 20 per cent. On the investigation into the alleged embezzlement of Venezuelan aid funds, the president said his acting government was pressing for an update. Moise's opponents, who say he disappeared from public sight at the start of the current crisis, criticize it as too little too late, nearly three years into his five-year mandate.

Haiti's president calls for support as humanitarian crisis looms

HP Inc. said Sunday it turned down a $33 billion hostile takeover bid from Xerox, saying it undervalued the computer and printer maker.&nbsp;

But the HP board said it still would like to discuss the possibility of reaching a deal with its rival, a venerable US tech company best known for its photocopy machines.

"We recognize the potential benefits of consolidation, and we are open to exploring whether there is value to be created for&nbsp;HP&nbsp;shareholders through a potential combination with Xerox," HP said in a statement.&nbsp;

But the company's board members have&nbsp;"fundamental questions that need to be addressed" first, it added.

It said, for instance, that Xerox's revenue dropped&nbsp;from $10.2 billion to $9.2 billion since June 2018.

And HP is three times more valuable than Xerox with&nbsp;a $27 billion market value.&nbsp;

Hewlett-Packard was one of the first Silicon Valle giants. In 2015, it spun off its enterprise products and services business and held onto the PC and printer businesses. It was renamed HP&nbsp;Inc.

Xerox, founded in 1906 as Haloid, was the pioneer in photocopy machines, so much so that in the United States, its name became a verb meaning to make a photocopy.

HP Inc. said Sunday it turned down a $33 billion hostile takeover bid from Xerox, saying it undervalued the computer and printer maker. But the HP board said it still would like to discuss the possibility of reaching a deal with its rival, a venerable US tech company best known for its photocopy machines.

HP Inc. said Sunday it turned down a $33 billion hostile takeover bid from Xerox, saying it undervalued the computer and printer maker. But the HP board said it still would like to discuss the possibility of reaching a deal with its rival, a venerable US tech company best known for its photocopy machines. "We recognize the potential benefits of consolidation, and we are open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox," HP said in a statement. But the company's board members have "fundamental questions that need to be addressed" first, it added. It said, for instance, that Xerox's revenue dropped from $10.2 billion to $9.2 billion since June 2018. And HP is three times more valuable than Xerox with a $27 billion market value. Hewlett-Packard was one of the first Silicon Valle giants. In 2015, it spun off its enterprise products and services business and held onto the PC and printer businesses. It was renamed HP Inc. Xerox, founded in 1906 as Haloid, was the pioneer in photocopy machines, so much so that in the United States, its name became a verb meaning to make a photocopy.

HP rejects takeover bid from Xerox

As healthcare turns costlier in developed countries, India's medical value travel (MVT) market is expected to reach a volume of nine billion dollars (about Rs 65,000 crore) by next year, according to a new knowledge paper released by industry body FICCI. 
 
The global MVT market estimated at 54 billion dollars is expected to grow at a compound annual growth rate of 13 per cent until 2025. With its growing emphasis, several Asian countries have developed ecosystems necessary to become an MVT hub. 
 
"Among these economies, India is viewed as one of the preferred destinations and holds the fifth position among 41 major medical tourism destinations," said the paper titled 'India: Building Best Practices in Healthcare Services Globally' prepared in collaboration with consulting major Ernst &amp; Young. 
 
The key drivers of growth of MVT are affordability and accessibility of good healthcare services, availability of the latest medical technologies and accreditations, facilitation around hospitality services and minimal waiting time. 
 
The report says India is more affordable in terms of medical treatment and travel when compared to western countries. Medical travellers can save up to 50 per cent as the average daily cost of travel within India is 31 dollars (about Rs 2,232) compared to the United States having 223 dollars (about Rs 16,056). 
 
Besides, the quality of medical service is one of the hallmarks of India's position in global MVT. Currently, there are 38 hospitals accredited by the Joint Commission International (JCI) and 619 accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH). 
 
Even being affordable, the mortality rate after 30 days of surgery is less in India (1.4 per cent) compared to the United States (1.9 per cent) which shows the quality of post-operative care provided by the Indian health service providers. 
 
However, there is a need to improve on post-operative care in terms of environment, hygiene and precautions required after a patient is being operated, said the report. 
 
Besides, India is performing low when it comes to regulations. As of today, there are no regulations applicable to the industry pertaining to facilitators, hospitals, insurance, legal or medical issues, and promotion activities carried out by stakeholders. 
 
"With a lack of regulations, MVT in India might not be able to thrive at a steady pace. Hence, the formulation of regulations is important to make this industry sustainable," said the report. 
 
Significantly, there are no government-to-government institutional arrangements between India and patient source countries. The institutional tie-ups are maintained by hospitals and facilitators without government interference. 
 
In addition, there is no grievances or redressal mechanism in place for international patients to raise any complaints. There is no policy arrangement in place to insure patients in case of unexpected complications in treatment. 
 
Gaurav Taneja, National Director and Leader for Government and Public Sector practice at EY India, said the government must form institutions for regulation and implementation of MVT. There is a need to build a robust platform for patients to interact with different stakeholders of the industry and define a code of conduct for MVT business. 
 
"With a branding and marketing campaign 'Heal in India,' I am sure the country will elevate its existing position to rank among the most preferred MVT destinations," he said in the report.

As healthcare turns costlier in developed countries, India's medical value travel (MVT) market is expected to reach a volume of nine billion dollars (about Rs 65,000 crore) by next year, according to a new knowledge paper released by industry body FICCI.

As healthcare turns costlier in developed countries, India's medical value travel (MVT) market is expected to reach a volume of nine billion dollars (about Rs 65,000 crore) by next year, according to a new knowledge paper released by industry body FICCI. The global MVT market estimated at 54 billion dollars is expected to grow at a compound annual growth rate of 13 per cent until 2025. With its growing emphasis, several Asian countries have developed ecosystems necessary to become an MVT hub. "Among these economies, India is viewed as one of the preferred destinations and holds the fifth position among 41 major medical tourism destinations," said the paper titled 'India: Building Best Practices in Healthcare Services Globally' prepared in collaboration with consulting major Ernst & Young. The key drivers of growth of MVT are affordability and accessibility of good healthcare services, availability of the latest medical technologies and accreditations, facilitation around hospitality services and minimal waiting time. The report says India is more affordable in terms of medical treatment and travel when compared to western countries. Medical travellers can save up to 50 per cent as the average daily cost of travel within India is 31 dollars (about Rs 2,232) compared to the United States having 223 dollars (about Rs 16,056). Besides, the quality of medical service is one of the hallmarks of India's position in global MVT. Currently, there are 38 hospitals accredited by the Joint Commission International (JCI) and 619 accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH). Even being affordable, the mortality rate after 30 days of surgery is less in India (1.4 per cent) compared to the United States (1.9 per cent) which shows the quality of post-operative care provided by the Indian health service providers. However, there is a need to improve on post-operative care in terms of environment, hygiene and precautions required after a patient is being operated, said the report. Besides, India is performing low when it comes to regulations. As of today, there are no regulations applicable to the industry pertaining to facilitators, hospitals, insurance, legal or medical issues, and promotion activities carried out by stakeholders. "With a lack of regulations, MVT in India might not be able to thrive at a steady pace. Hence, the formulation of regulations is important to make this industry sustainable," said the report. Significantly, there are no government-to-government institutional arrangements between India and patient source countries. The institutional tie-ups are maintained by hospitals and facilitators without government interference. In addition, there is no grievances or redressal mechanism in place for international patients to raise any complaints. There is no policy arrangement in place to insure patients in case of unexpected complications in treatment. Gaurav Taneja, National Director and Leader for Government and Public Sector practice at EY India, said the government must form institutions for regulation and implementation of MVT. There is a need to build a robust platform for patients to interact with different stakeholders of the industry and define a code of conduct for MVT business. "With a branding and marketing campaign 'Heal in India,' I am sure the country will elevate its existing position to rank among the most preferred MVT destinations," he said in the report.

India's medical value travel to reach $9 billion: FICCI

One year ago, the sudden arrest at a Tokyo airport of Nissan boss Carlos Ghosn, one of the world's best-known and respected tycoons, sent shockwaves through the business world.

After 130 days languishing in a Japanese detention centre, Ghosn is now out on bail and vigorously proclaiming his innocence, seeking to have his case declared null and void,&nbsp;even if legal experts and his own defence deem his chances unlikely.

The 65-year-old Brazil-born executive faces charges of deferring part of his salary until after his retirement and concealing this from shareholders, as well as syphoning off millions in Nissan cash for his own purposes.

Ghosn denies every charge and has accused prosecutors and even Japanese government officials of colluding in a "plot" with Nissan to find a way to destroy him, fearful he was seeking to merge the firm with France's Renault.

His defence team filed a motion on October 24 to throw out the case given what they allege is illegal activity by Nissan and the prosecution,&nbsp;including seizing his wife's phone and searching private homes.

But even his own defence lawyer Takashi Takano is doubtful of success, telling AFP: "There are no precedents and Japanese courts are very reluctant to accept this type of argument."

Yasuyuki Takai, a former head of the special prosecutors' bureau in Tokyo, agreed: "This motion has zero chance of succeeding."

"The real goal of the lawyers is to get an acquittal. This motion can only serve to calm down the accused and to say publicly that the prosecutors and Nissan did terrible things," Takai told AFP.

'Hostage justice'

Independent lawyer Nobuo Gohara said it was "debatable" as to whether Ghosn even had a legal obligation to declare the alleged deferred salary and "in any case, it should not have led to an arrest".

"The Ghosn case was an enormous global shock which has uncovered very big problems in the way the Japanese system functions," Gohara told AFP.

"This case should never have existed. You can only think that the end goal was to arrest Carlos Ghosn."

The world-famous executive, once revered in Japan for rescuing the struggling Nissan and who crisscrossed the globe in private jets as the head of worldwide business, now faces 15 years in prison if convicted.

Defence and prosecution teams have held regular pre-trial meetings but Ghosn's team has complained that they do not yet have access to prosecution documents "proving" the tycoon's guilt.

This has delayed progress towards a trial and also explains why the defence has not yet itself produced what it says is cast-iron proof of Ghosn's innocence.

Around 99 per cent of trials in Japan result in a conviction and the global media attention given to the Ghosn case has shone a spotlight on the Japanese justice system.

Suspects can be detained for several days without being formally charged and can be re-arrested many times, extending the period of detention,&nbsp;a system critics dub "hostage justice" designed to extract a confession.

Ghosn is now out on bail and has been able to enjoy some trips outside Tokyo with his daughter while preparing for a trial expected to take place in the spring of next year.

His lawyers describe him as in relatively good spirits and combative, even though he remains banned from any contact with his wife Carole,&nbsp;a measure Takano slams as "stupid" and "useless".

"There is no justification... It's just a punishment," said the lawyer, adding he hoped the judges would relent before the Christmas holidays.

One year ago, the sudden arrest at a Tokyo airport of Nissan boss Carlos Ghosn, one of the world's best-known and respected tycoons, sent shockwaves through the business world.

One year ago, the sudden arrest at a Tokyo airport of Nissan boss Carlos Ghosn, one of the world's best-known and respected tycoons, sent shockwaves through the business world. After 130 days languishing in a Japanese detention centre, Ghosn is now out on bail and vigorously proclaiming his innocence, seeking to have his case declared null and void, even if legal experts and his own defence deem his chances unlikely. The 65-year-old Brazil-born executive faces charges of deferring part of his salary until after his retirement and concealing this from shareholders, as well as syphoning off millions in Nissan cash for his own purposes. Ghosn denies every charge and has accused prosecutors and even Japanese government officials of colluding in a "plot" with Nissan to find a way to destroy him, fearful he was seeking to merge the firm with France's Renault. His defence team filed a motion on October 24 to throw out the case given what they allege is illegal activity by Nissan and the prosecution, including seizing his wife's phone and searching private homes. But even his own defence lawyer Takashi Takano is doubtful of success, telling AFP: "There are no precedents and Japanese courts are very reluctant to accept this type of argument." Yasuyuki Takai, a former head of the special prosecutors' bureau in Tokyo, agreed: "This motion has zero chance of succeeding." "The real goal of the lawyers is to get an acquittal. This motion can only serve to calm down the accused and to say publicly that the prosecutors and Nissan did terrible things," Takai told AFP. 'Hostage justice' Independent lawyer Nobuo Gohara said it was "debatable" as to whether Ghosn even had a legal obligation to declare the alleged deferred salary and "in any case, it should not have led to an arrest". "The Ghosn case was an enormous global shock which has uncovered very big problems in the way the Japanese system functions," Gohara told AFP. "This case should never have existed. You can only think that the end goal was to arrest Carlos Ghosn." The world-famous executive, once revered in Japan for rescuing the struggling Nissan and who crisscrossed the globe in private jets as the head of worldwide business, now faces 15 years in prison if convicted. Defence and prosecution teams have held regular pre-trial meetings but Ghosn's team has complained that they do not yet have access to prosecution documents "proving" the tycoon's guilt. This has delayed progress towards a trial and also explains why the defence has not yet itself produced what it says is cast-iron proof of Ghosn's innocence. Around 99 per cent of trials in Japan result in a conviction and the global media attention given to the Ghosn case has shone a spotlight on the Japanese justice system. Suspects can be detained for several days without being formally charged and can be re-arrested many times, extending the period of detention, a system critics dub "hostage justice" designed to extract a confession. Ghosn is now out on bail and has been able to enjoy some trips outside Tokyo with his daughter while preparing for a trial expected to take place in the spring of next year. His lawyers describe him as in relatively good spirits and combative, even though he remains banned from any contact with his wife Carole, a measure Takano slams as "stupid" and "useless". "There is no justification... It's just a punishment," said the lawyer, adding he hoped the judges would relent before the Christmas holidays.

One year after arrest, Ghosn seeks to throw out case against him

The Trump administration is set to issue a two-week extension of a license allowing US&nbsp;companies to continue doing business with China's Huawei Technologies Co Ltd, two sources familiar with the deliberations said.

The extension of around two weeks is far shorter than the prior 90-day extension and a longer extension is in the works but has not yet been finalized due to regulatory hurdles, said one source who was briefed on the matter.

After adding Huawei to an economic blacklist in May citing national security concerns, the US&nbsp;Commerce Department has allowed it to purchase some American-made goods in a move aimed at minimizing disruption for its customers, many of which operate networks in rural America.

The extension will be announced on Monday, when the earlier reprieve is set to expire, the sources said, declining to be identified as the extension has not been publicly announced.

A spokesman for Huawei, the world's biggest maker of telecom network equipment, said the company does not comment on rumours and speculation. The Commerce Department declined to comment.

Commerce Secretary Wilbur Ross told Fox Business Network on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks.

"There are enough problems with telephone service in the rural communities - we don’t want to knock them out. So, one of the main purposes of the temporary general licenses is to let those rural guys continue to operate," Ross said.

The development comes amid discussions between the United States and China aimed at coming to an initial agreement to resolve a trade war that has lasted for over a year.

In blacklisting Huawei, the US&nbsp;government said it had a "reasonable basis to conclude that Huawei is engaged in activities that are contrary to US&nbsp;national security or foreign policy interests". Huawei has repeatedly denied the accusations.

Attorney General William Barr said on Thursday Huawei and ZTE Corp&nbsp;"cannot be trusted," as he backed a proposal to bar US&nbsp;rural wireless carriers from tapping an $8.5 billion government fund to purchase equipment or services from them.

In May, President Donald Trump also signed an executive order declaring a national emergency and barring US&nbsp;companies from using telecommunications equipment made by companies posing a national security risk. The Commerce Department was due to draw up an enforcement plan by mid-October but has yet to publish one.

The Commerce Department is also considering whether to grant individual licenses for US&nbsp;firms to sell components to Huawei after receiving more than 200 requests.

The Trump administration is set to issue a two-week extension of a license allowing US companies to continue doing business with China's Huawei Technologies Co Ltd, two sources familiar with the deliberations said.

The Trump administration is set to issue a two-week extension of a license allowing US companies to continue doing business with China's Huawei Technologies Co Ltd, two sources familiar with the deliberations said. The extension of around two weeks is far shorter than the prior 90-day extension and a longer extension is in the works but has not yet been finalized due to regulatory hurdles, said one source who was briefed on the matter. After adding Huawei to an economic blacklist in May citing national security concerns, the US Commerce Department has allowed it to purchase some American-made goods in a move aimed at minimizing disruption for its customers, many of which operate networks in rural America. The extension will be announced on Monday, when the earlier reprieve is set to expire, the sources said, declining to be identified as the extension has not been publicly announced. A spokesman for Huawei, the world's biggest maker of telecom network equipment, said the company does not comment on rumours and speculation. The Commerce Department declined to comment. Commerce Secretary Wilbur Ross told Fox Business Network on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks. "There are enough problems with telephone service in the rural communities - we don’t want to knock them out. So, one of the main purposes of the temporary general licenses is to let those rural guys continue to operate," Ross said. The development comes amid discussions between the United States and China aimed at coming to an initial agreement to resolve a trade war that has lasted for over a year. In blacklisting Huawei, the US government said it had a "reasonable basis to conclude that Huawei is engaged in activities that are contrary to US national security or foreign policy interests". Huawei has repeatedly denied the accusations. Attorney General William Barr said on Thursday Huawei and ZTE Corp "cannot be trusted," as he backed a proposal to bar US rural wireless carriers from tapping an $8.5 billion government fund to purchase equipment or services from them. In May, President Donald Trump also signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk. The Commerce Department was due to draw up an enforcement plan by mid-October but has yet to publish one. The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei after receiving more than 200 requests.

US to extend license for its companies to continue business with Huawei: Report

Heavy rains in October and November have brought more misery to&nbsp;India's farmers after <a href="https://www.wionews.com/india-news/india-had-driest-june-in-five-years-fears-for-crops-231886">summer-sown crops</a> such as soybean, cotton, rice and vegetables suffered rain and flood damage during the wettest June-September monsoon season in 25 years.

"We couldn't harvest soybeans last month due to continuous rainfall," said Shantabai Chikhale, 65, while harvesting with her son on a one-acre plot in Maharashtra,&nbsp;India's second-largest soybean-producing state.

Chikhale had been expecting a bumper crop, but now estimates that two-thirds of the soybean pods on her farm in Kalamb village were knocked off by the rains, while much of the remaining crop has been damaged.

The recent wet spell is also forcing farmers, like Chikhale, to delay sowing winter crops, placing a further drag on the rural economy at a time when&nbsp;India's economic growth has slumped to a six-year low.

After the ample monsoon rains, The Solvent Extractors' Association (SEA) had expected&nbsp;India&nbsp;soybean harvest to be more than 10 million tonnes, just a little down on 2018's 10.3 million tonnes.

But heavy recent rains damaged the crop in Maharashtra and Madhya Pradesh, which account for more than 85 per cent&nbsp;of&nbsp;India's output, and forced the trade body to cut that estimate to below 9 million tonnes, said BV&nbsp;Mehta, executive director of the SEA.

As a result, local soybean prices have risen to their highest in 3-1/2 years, making exports of soymeal uncompetitive, traders said.

Lower soybean production could force&nbsp;India, the world's biggest importer of edible oils, to import more in 2019/20 marketing year that started on October 1, said a Mumbai-based dealer with a global trading firm.

Other crops hit

The deluge also hit <a href="https://www.wionews.com/world/global-warming-will-make-insects-hungrier-eating-up-key-crops-study-162721">cotton in the world's biggest producer</a>.

Cotton bolls were damaged by late rains in Maharashtra and Gujarat, which account for over half of the country's output, said Arun Sekhsaria, managing director of exporter DD&nbsp;Cotton.

Until a few weeks ago, industry officials such as Pradeep Jain, president of Khandesh Ginning and Pressing Factory Owners and Traders Association, were expecting a 20 per cent&nbsp;jump in cotton production in 2019 from a year ago.

But now Jain says the production could rise by 10 to 12 per cent.

Cyclone Bulbul also soaked the eastern states of Odisha and West Bengal last week, damaging rice crops in these key producing states, said Nitin Gupta, vice president for Olam&nbsp;India's rice business.

"Supplies from the new season crop for exports have been delayed by around two weeks," Gupta said.

Sugar mills in Maharashtra, the number&nbsp;two&nbsp;sugar state, were forced to delay the start of the new crushing season by a few weeks due to wet fields, said Prakash Naiknavare, head of the National Federation of Cooperative Sugar Factories Ltd.

The heavy downpours also elevated prices of vegetables such as onions and tomatoes and lifted food inflation to 7.89 per cent&nbsp;in October from a year earlier.

That, in turn, pushed inflation above the central bank's medium-term target of 4 per cent&nbsp;in October for the first time in 15 months.

The untimely rains also delayed winter sowing of wheat, chickpeas, vegetables and other crops.

"I need to harvest soybean before planting sugarcane. But soybean harvesting has already been delayed," says Chikhale.

Heavy rains in October and November have brought more misery to India's farmers after summer-sown crops such as soybean, cotton, rice and vegetables suffered rain and flood damage during the wettest June-September monsoon season in 25 years.

Heavy rains in October and November have brought more misery to India's farmers after summer-sown crops such as soybean, cotton, rice and vegetables suffered rain and flood damage during the wettest June-September monsoon season in 25 years. "We couldn't harvest soybeans last month due to continuous rainfall," said Shantabai Chikhale, 65, while harvesting with her son on a one-acre plot in Maharashtra, India's second-largest soybean-producing state. Chikhale had been expecting a bumper crop, but now estimates that two-thirds of the soybean pods on her farm in Kalamb village were knocked off by the rains, while much of the remaining crop has been damaged. The recent wet spell is also forcing farmers, like Chikhale, to delay sowing winter crops, placing a further drag on the rural economy at a time when India's economic growth has slumped to a six-year low. After the ample monsoon rains, The Solvent Extractors' Association (SEA) had expected India soybean harvest to be more than 10 million tonnes, just a little down on 2018's 10.3 million tonnes. But heavy recent rains damaged the crop in Maharashtra and Madhya Pradesh, which account for more than 85 per cent of India's output, and forced the trade body to cut that estimate to below 9 million tonnes, said BV Mehta, executive director of the SEA. As a result, local soybean prices have risen to their highest in 3-1/2 years, making exports of soymeal uncompetitive, traders said. Lower soybean production could force India, the world's biggest importer of edible oils, to import more in 2019/20 marketing year that started on October 1, said a Mumbai-based dealer with a global trading firm. Other crops hit The deluge also hit cotton in the world's biggest producer. Cotton bolls were damaged by late rains in Maharashtra and Gujarat, which account for over half of the country's output, said Arun Sekhsaria, managing director of exporter DD Cotton. Until a few weeks ago, industry officials such as Pradeep Jain, president of Khandesh Ginning and Pressing Factory Owners and Traders Association, were expecting a 20 per cent jump in cotton production in 2019 from a year ago. But now Jain says the production could rise by 10 to 12 per cent. Cyclone Bulbul also soaked the eastern states of Odisha and West Bengal last week, damaging rice crops in these key producing states, said Nitin Gupta, vice president for Olam India's rice business. "Supplies from the new season crop for exports have been delayed by around two weeks," Gupta said. Sugar mills in Maharashtra, the number two sugar state, were forced to delay the start of the new crushing season by a few weeks due to wet fields, said Prakash Naiknavare, head of the National Federation of Cooperative Sugar Factories Ltd. The heavy downpours also elevated prices of vegetables such as onions and tomatoes and lifted food inflation to 7.89 per cent in October from a year earlier. That, in turn, pushed inflation above the central bank's medium-term target of 4 per cent in October for the first time in 15 months. The untimely rains also delayed winter sowing of wheat, chickpeas, vegetables and other crops. "I need to harvest soybean before planting sugarcane. But soybean harvesting has already been delayed," says Chikhale.

Rural economy might face setback as untimely rains hit India's summer crops

The <a href="https://www.wionews.com/world/china-holds-in-depth-talks-with-us-on-phase-one-of-trade-deal-262023">United States and China</a> are getting close to a trade agreement, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive talks with Beijing about ending a 16-month trade war.

Kudlow said negotiators for the world's two largest economies were in close touch via telephone but he gave no further details on the timing of a possible deal.

"We're getting close," he told an event at the Council on Foreign Relations in Washington. "The mood music is pretty good, and that has not always been so in these things."

The United States and China have been locked in successive waves of tit-for-tat tariffs that have roiled financial markets and threaten to drag growth in the global economy to its lowest rate since the 2007-2008 financial crisis.

Markets are anxiously awaiting an agreement to end the uncertainty that has slowed business investment around the globe. An agreement had appeared likely in May, but those prospects were dashed after US&nbsp;negotiators said China backed away from the text of a draft agreement.

Kudlow's comments could ease market concerns that flared again this week amid reports that the trade talks had hit a snag over how and when to reduce tariffs, and what level of agricultural purchases could be expected from China.

Markets also soured after US&nbsp;President Donald Trump on Tuesday said he could impose substantial new tariffs on China if no deal was reached.

Kudlow told the audience he had just come from a meeting of the top Trump administration trade officials and was more optimistic.

"It's not done yet, but there has been very good progress and the talks have been very constructive," he told the event.

He also opened the door to the possibility that Trump and Chinese President Xi Jinping would not need to meet in person to clinch a deal.

Trump had hoped to sign the "phase one" agreement with China on the sidelines of the Asian-Pacific Economic Cooperation summit in Chile this month, but that possibility disappeared after Chile withdrew from hosting the event.

Kudlow said the White House had hoped to stick to that general timetable. He joked that his preference was for the deal to be signed in his office on the second floor of the White House.

"I don't like to travel," he quipped.

The United States and China are getting close to a trade agreement, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive talks with Beijing about ending a 16-month trade war.

The United States and China are getting close to a trade agreement, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive talks with Beijing about ending a 16-month trade war. Kudlow said negotiators for the world's two largest economies were in close touch via telephone but he gave no further details on the timing of a possible deal. "We're getting close," he told an event at the Council on Foreign Relations in Washington. "The mood music is pretty good, and that has not always been so in these things." The United States and China have been locked in successive waves of tit-for-tat tariffs that have roiled financial markets and threaten to drag growth in the global economy to its lowest rate since the 2007-2008 financial crisis. Markets are anxiously awaiting an agreement to end the uncertainty that has slowed business investment around the globe. An agreement had appeared likely in May, but those prospects were dashed after US negotiators said China backed away from the text of a draft agreement. Kudlow's comments could ease market concerns that flared again this week amid reports that the trade talks had hit a snag over how and when to reduce tariffs, and what level of agricultural purchases could be expected from China. Markets also soured after US President Donald Trump on Tuesday said he could impose substantial new tariffs on China if no deal was reached. Kudlow told the audience he had just come from a meeting of the top Trump administration trade officials and was more optimistic. "It's not done yet, but there has been very good progress and the talks have been very constructive," he told the event. He also opened the door to the possibility that Trump and Chinese President Xi Jinping would not need to meet in person to clinch a deal. Trump had hoped to sign the "phase one" agreement with China on the sidelines of the Asian-Pacific Economic Cooperation summit in Chile this month, but that possibility disappeared after Chile withdrew from hosting the event. Kudlow said the White House had hoped to stick to that general timetable. He joked that his preference was for the deal to be signed in his office on the second floor of the White House. "I don't like to travel," he quipped.

United States and China 'getting close' to trade deal: White House economic adviser

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