October 7, 2019 / 3:10 AM / 16 days ago

Morning News Call - India, October 7

(Morning News Call - India edition will not be published on Tuesday, October 8, as markets are closed for Dussehra)

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FACTORS TO WATCH

10:30 am: State Bank of India Chairman Rajnish Kumar at launch of a digital initiative in Mumbai.

12:00 pm: Finance Minister Nirmala Sitharaman to inaugurate Income Tax Department’s national e-assessment center in New Delhi.

LIVECHAT - ASIAN MARKETS & RATES

Rabobank's head of Asia-Pacific financial markets research, Michael Every, joins us from Hong Kong to discuss his Asian FX & rates outlook, the Fed rate cycle and its impact on other central banks and U.S.-China trade war effects. To join the conversation at 9:30 am IST, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• RBI cuts rates to near decade lows to revive growth

The Reserve Bank of India (RBI) on Friday cut the key policy rate to its lowest levels in nearly a decade, stepping up its efforts to kickstart an economy growing at its slowest pace in six years.

• SpiceJet could take more of Jet Airways’ 737 MAX planes -chairman

Low-cost carrier SpiceJet may consider taking some of the Boeing 737 MAX planes that were due to be delivered to now bankrupt Jet Airways but are still sitting in Seattle, its chairman said on Friday.

India’s services sector contracts in September on weak demand -PMI

India’s dominant services sector slipped into contraction in September as new business orders fell for the first time since early 2018, according to a private survey which also found business optimism at its lowest in 2-1/2 years.

• Airline bankruptcies surge, leaving rivals vying for planes

Airline bankruptcies have increased this year at the fastest ever rate, led by the collapse of Jet Airways, British travel group Thomas Cook and Avianca of Brazil, according to industry data published on Friday.

• Yes Bank files police complaint over ‘fake news’ on its financial health

Yes Bank on Sunday said it filed a police complaint against what it called as “fake news and rumours” about its financial health circulating on social media, including on the Facebook-owned messaging platform WhatsApp.

• Indian police arrest former MD Thomas of fraud-hit PMC Bank

Indian police arrested Joy Thomas, the former managing director of Punjab and Maharashtra Co-operative Bank (PMC), which has been accused of creating fictitious accounts to hide loans, a spokesman for Mumbai Police said on Friday.

• Grenade attack in Kashmir injures 10 amid India clampdown

A grenade attack on Saturday in Kashmir’s southern city of Anantnag injured 10 people, including a traffic policeman and a journalist, police said on Twitter, blaming “terrorists”.

GLOBAL TOP NEWS

• Second whistleblower in Trump-Ukraine scandal comes forward -lawyer

A second whistleblower has come forward with first-hand knowledge of President Donald Trump’s attempts to get the Ukrainian president to investigate a political rival, lawyers for the official said on Sunday.

• Hong Kong metro partially reopens, city struggles after violent weekend

Hong Kong struggled to recover, with the metro only partially functioning and infrastructure extensively damaged, after scores of protesters were arrested in violent clashes overnight that drew the first warning from the Chinese military.

• HSBC to cut up to 10,000 jobs in drive to slash costs -FT

HSBC is planning to cut up to 10,000 jobs as interim Chief Executive Officer Noel Quinn seeks to reduce costs across the banking group, the Financial Times reported on Sunday.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading little changed at 11,215.00.

• The Indian rupee is expected to open lower against the dollar amid losses in most Asian currencies following a report that China was unwilling to pursue a broad trade deal with the U.S.

• India’s federal government bonds are likely to fall in early trade as state governments sell notes today. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.66% - 6.72% today.

GLOBAL MARKETS

• Wall Street surged on Friday after moderate jobs growth in September offered relief from a spate of dismal economic data this week that has rankled markets and fueled concerns that the world’s largest economy may be sliding into a recession.

• Asian shares edged higher after data showed the U.S. unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world’s largest economy.

• The yen gained slightly and the yuan slipped a tad in early Asian trade on a media report that China wants the scope of this week’s trade talks and any deal with the United States to be narrow.

• The two-year Treasury yield’s dramatic multi-day fall was capped on Friday after U.S. job growth increased moderately in September, leaving the yield up 1.4 basis points on the day, though still down 22.5 basis points for the week.

• Oil prices fell, extending last week’s heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the U.S.-China trade war.

• Gold prices advanced as markets braced for U.S.-China trade negotiations during the week with lesser hopes of a breakthrough, following a report that Chinese officials may not be as willing to bend.

For additional data:

India govt bond market volumes

Stock market reports

Non-deliverable forwards data

Corporate debt stories [IN CORPD]

Local market closing/intraday levels [IN SNAPSHOT]

Monthly inflows [INFLOWS RTRS TABLE IN]

($1 = 70.82 Indian rupees)

Compiled by Samrhitha Arunasalam in Bengaluru

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