Month: March 2015

Asian mkts fall on fears of US jobs could prompt rate hike

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fears that an interest rate hike in the United States is imminent drove Asian stock markets lower on Monday.

Wall Street’s drop of more than 1 percent last Friday also weakened investor sentiment as a stronger-than-expected nonfarm payrolls bolstered the case that the Federal Reserve could hike interest rates sooner rather than later.

The monthly indicator showed a gain of 295,000, above expectations of 240,000 but down from 257,000 in January. The unemployment rate fell to 5.5 percent, while hourly wages ticked up 0.1 percent, below consensus and down from the surprise 0.5 percent gain in January.

“Looking at the employment numbers, they’ve had a good run and 5.5 percent in unemployment is pretty close to full employment,” Deb Clarke, head of Investment Research at Mercer, told CNBC Asia’s “Squawk Box.” “One of the impact is obviously a stronger dollar, which could see a break on growth, but there’s a fair probability that [the Fed] will raise rates in June.”

Hence, the blue-chip Dow Jones Industrial Average closed down 1.5 percent, while the S&P 500 finished 1.4 percent lower. The Nasdaq Composite traded down 1.1 percent last Friday.

ASX loses 1.2 percent

Australia’s S&P ASX 200 index plunged to a two-and-a-half-week low as steep losses among miners and oil producers weighed on the resource-heavy bourse.

BHP Billiton and Rio Tinto fell nearly 2 percent each, while Santos and Oil Search lost 3.7 and 1.8 percent, respectively.

The big four lenders also traded lower, with Westpac and National Australia Bank leading losses with a drop of 0.8 percent each.

Nikkei falls 0.7 percent

Japan’s Nikkei 225 drifted lower after government data showed the world’s third-biggest economy grew less than previously thought in the final quarter of 2014. Gross domestic product (GDP) grew an annualized 1.5 percent in the October-December period, down from an initial reading of 2.2 percent in February, but still showed Japan emerging out of recession.

Heavyweight components including Softbank and Fast Retailing sagged 1 percent each.

A weaker yen, which last traded at 120.7 to the dollar, failed to lift sentiment; exporters such as Sharp and Sony fell 1 percent each.

Nikkei falls 0.7 percent

Japan’s Nikkei 225 drifted lower after government data showed the world’s third-biggest economy grew less than previously thought in the final quarter of 2014. Gross domestic product (GDP) grew an annualized 1.5 percent in the October-December period, down from an initial reading of 2.2 percent in February, but still showed Japan emerging out of recession.

Heavyweight components including Softbank and Fast Retailing sagged 1 percent each.

A weaker yen, which last traded at 120.7 to the dollar, failed to lift sentiment; exporters such as Sharp and Sony fell 1 percent each.

Kospi slips 0.6 percent

South Korea’s Kospi index retreated on the back of a lackluster showing by the index heavyweights, after managing a five-month closing high of 2,012 last Friday.

Hyundai Motor and Kia Motors notched down 0.9 and 0.6 percent, respectively. Other blue-chip majors such as Samsung Electronics and Posco eased 0.8 and 1.7 percent each.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s staggering recovery: Here’s what can go wrong

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India has come a long way since the “taper tantrum” of 2013, transitioning from a “fragile five” economy into a darling of investors.

The election of Prime Minister Narendra Modi last May combined with stabilization in macro-economic conditions – including easing inflation, a shrinking current account deficit and improving government balances – placed the country back on investors` radars.

This resulted in a flood of foreign money entering its stock market, which ranked as one of the top performers globally last year.

While the stars may seem aligned, the economy is not fully in the clear yet, analysts warn.

Goldman Sachs, which is broadly optimistic on the market, says the key obstacles to the Indian growth story would be a loss of reform momentum or a slow pace of job creation, leading to demands for more populist policies.

“Reform momentum can slow either due to an inability to pass key legislation in Parliament, or a demand for greater subsidies if economic activity and jobs do not increase at the desired pace,” Tushar Poddar, chief India economist at the bank, wrote in a note.

In the nine months since coming to power, the Modi government made some progress on the reform front, including easing foreign direct investment (FDI) restrictions in some sectors and ending government price caps on diesel, but big-bang measures are lacking.

Overhauling land and labor laws are among the most crucial, says Poddar. “India`s labor laws are outdated; for example, one law requires government approval to dismiss workers where the factory size is over 100 employees, which leads to production being kept at a small scale and growing informality,” he said.

While Modi is keen to clear these bottlenecks to investment, his party – the Bharatiya Janata Party (BJP) – lacks a majority in the upper house of parliament, making it more difficult to push through contentious reforms.

To get around its lack of representation in the upper house, the BJP has so far resorted to using a series of ordinances to push through contentious laws. In late December, for example, Modi passed an executive order to ease land acquisition rules in sectors like power, housing and defense in order to kick-start billions of dollars in stalled projects.

Read More What India`s budget means for its raging stock rally

However, these laws will ultimately have a short shelf life if both houses of parliament fail to approve them at the budget session of Parliament – which will be held in two phases: February 23-March 20 and April 20-May 8.

“When the government passed through the ordinances, it signaled its intention to push forward despite resistance. But if parliament fails to approve these bills during the current session – in particular the land acquisition bill – it will be concerning,” said Radhika Rao, economist at DBS Group Research.

An eye on jobs

The other key risk to India`s outlook is the slower-than-expected pickup in economic growth,resulting in a sluggish pace of job creation, Poddar said.

“The decline in rural wages is affecting rural consumption demand and job growth. If this trend is not offset by an increase in investment and faster growth in urban areas, it could lead to demand for more populist policies and subsidies from the government rather than reforms,” he said.

Rural wages grew a meager 3.8 percent in November 2014, the lowest since July 2005, as farm output took a hit from the weak monsoon rains.

While these risks exist, Goldman says the case for investing in India remains strong for now.

“The bullish case for India rests on two pillars: its favorable demographics and the scope for catch-up from a very low base in investment, infrastructure and productivity,” the bank said.

“With structural tailwinds, and a government that we think is moving in the right direction on structural reforms, we think the case for remaining positive on Indian assets remains strong,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why Turkey is hurtling towards a currency crisis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Turkish government is playing a dangerous political game that risks hitting the country with a full-blown currency crisis and ratings downgrade, experts warn.

Over the past week, Turkish President Tayyip Erdogan`s administration has lashed out at the central bank, urging it to aggressively lower interest rates to shore up economic growth ahead of general elections in June.

The political pressure has troubled investors, sending the lira to an all-time low of 2.6290 per dollar on Thursday, the third straight day of record declines.

Erdogan’s demands come after the Central Bank of the Republic of Turkey (CBRT) lowered benchmark rates last month, its second cut since December.

While the CBRT has been under pressure to ease policy for years, markets are worried recent scathing attacks could spell the end of the central bank`s independence.

“The CBRT`s dovishness has coincided with a period of intense political pressures, which has only bolstered the market`s skepticism regarding central bank independence and credibility,” stated Barclays analysts in a note.

“There`s nothing wrong with a collaborative policy between government and central banks, but this type of confrontation undermines the CBRT`s authority. It`s also counterproductive as it doesn`t translate into macro stability,” said Vishnu Varathan, senior economist at Mizuho Bank.

Turkish Prime Minister Ahmet Davutoglu attempted to reassure investors on Thursday, stating that the country`s central bank remains independent:

“There is no need to worry about Turkey`s institutional set-up,” he told the Council on Foreign Relations in New York.

The market has taken a dim view of Erdogan`s encroachment into monetary policy and the risk is that he could stir a currency crisis, said Kathleen Brooks, research director at FOREX.com in a note on Thursday. All eyes are now on what the central bank does at the next policy meeting on March 17th.

“It seems like the market is only interested in one direction when it comes to the lira, and that is lower,” Brooks said. “If the central bank governor does resign in the coming days, or bows to pressure from the government, then this could trigger another leg higher for USDTRY.”

Barclays agreed that the lira`s selloff will only get worse if the central bank does yield to Erdogan: “The potentially aggressive interest rates cuts would keep real rates subdued, even though inflation is expected to fall over the coming months, eroding the currency`s attractiveness.”

Read More Can Turkey steer the G-20 supertanker to safer waters?

With losses of 10 percent against the greenback since January, the lira is one of the world`s worst-performing currencies this year.

If it continues to weaken, Turkey`s gross external debt will become more expensive to service. “Although overall public debt levels remain low at 36.6 percent, external debts denominated in foreign currency have risen, which leaves the country vulnerable to a currency crisis,” Brooks continued.

Continued confrontation between the government and central bank increases the risks of Turkey losing its investment grade status over the next few months, according to Barclays.

“The pressures on the CBRT to cut interest rates will likely heighten concerns about checks and balances, policy predictability and broader political risks in Turkey, which had been cited as source of downward pressure on Turkey`s rating by both Fitch and Moody`s,” the bank said.

Consequently, it recommends investors take a more cautious approach towards Turkey despite the country being a major beneficiary of falling commodity prices.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Warren Buffett puts spotlight on Europe’s bond market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Where Warren Buffett goes, others tend to follow, and bankers are predicting that Berkshire Hathaway’s euro debut will open the US corporate issuance floodgates further. So far this year, US firms have already sold an impressive 30 billion euros or so, according to Thomson Reuters data.

The US conglomerate dominated the market on Thursday with its 3 billion euro three-tranche offering. And the action continued on Friday, with it being the most traded deal of the day, according to MarketAxess data.

Berkshire Hathaway’s no-marketing policy outside of its shareholder meetings meant investors were given only a teaser announcement of its bond plans on Wednesday. But evidently that was all it needed: Pre-reconciled orders amounted to 7.5 billion euros, while all three bonds were the top traded at noon on Friday.

Read More The $62B secret of Warren Buffett’s success

Compare this to GDF’s landmark multi-tranche bond – incorporating the first vanilla note with a zero coupon from a corporate – that priced earlier this week. Not one of its four bonds made the top 10 traded on MarketAxess the day after they priced.

While this data is based purely on MarketAxess’ post-trade service, Trax, and does not therefore capture all trading, the company does tend to process approximately 65 percent of fixed income transactions in Europe and its numbers therefore offer a relatively accurate reflection of volumes.

According to one banker away from that deal, the allocation on GDF, mainly buy-and-hold real money, was a reason it did not feature.

One of the leads also pointed out that none of the tranches was particularly large, so the bonds were perhaps less liquid. He added that since it priced investors have had a deluge of supply to focus upon, including that from Berkshire.

Luring in the masses

“For European investors, it was the first opportunity for them to even look at Berkshire, so perhaps some needed the announcement to assess it. But with the market so hot and the company and its CEO being so high profile, we knew it was positioned well,” a lead on the transaction said.

Lead managers Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and Wells Fargo started marketing an eight-year tranche at 35bp area over mid-swaps, a 12-year at 50bp area and a 20-year at 65bp area, implying respective yields of around 0.90 percent, 1.34 percent and 1.75 percent for the Aa2/AA rated company.

Those yields were much lower than the 3.20 percent coupon on a USD1.7 billion bond that matured on February 11 this year which Berkshire is refinancing.

Read More Buffett: These investments are a ‘fool’s game’

Leads set official guidance at plus 30bp area, 45bp area and 60bp area, all to price within a 3bp range. Final terms were announced for a 750 million euro eight-year at 27bp over mid-swaps, a 1.25 billion euro 12-year at 42bp over and a 1 billion euro 20-year at 57bp over.

Striking a balance

Berkshire’s eight-year tranche priced at a premium to where its U.S. dollar deals trade around the same tenor. Its 3.00 percent February 2023s were quoted on Eikon at 55bp over swaps, although factoring in a euro/dollar cross-currency swap that is negative by around 40bp, this made for a premium of some 12bp on the euro issue.

“Companies are having to pay up on the shorter deals at the moment; and on Berkshire’s shorter piece, leads should have left more on the table, as the shorter dated stuff is not well bid. Overall, the deal was well executed though and priced to perfection,” said Louis Gargour, CIO and managing partner at asset manager LNG Capital.

The longer two tranches, due in 12 and 20 years, could have priced at relatively tighter terms post-swap, although any savings are theoretical, due to Berkshire Hathaway’s lack of outstanding longer dated dollar paper.

“If swapped back into dollars, the eight-year comes around 10bp-15bp back of where the dollar bond trades,” a lead on the deal said. “So, if the company was swapping back, it would maybe be wider, although on the longer pieces they could have theoretically saved 10bp-15bp, but it’s tricky to assess as the curve is a weird shape,” the lead said.

He added that for some US corporates tapping the euro market it is a cost-saving exercise, but others may be doing it to keep some of the proceeds in euros.

Berkshire Hathaway has said it will use cash raised from the 3 billion euro deal to refinance some maturing dollar debt, although market players believe it also has a more local investment plan in mind.

“For where the swap rate is, I’m not sure if the deal makes sense. Maybe it’s a coincidence that the company is rumored to be looking at investing in Germany, because raising euro funds for that reason would make more sense,” a banker away from the deal said.

Berkshire Hathaway purchased a German retailer at the end of February, and chief executive Warren Buffet has since said he is ready to pay cash for more good German companies.

Setting a bigger trend

The relentless surge of US corporates tapping the European bond market has continued unabated, partly due to the attractive basis swap levels between euros and dollars, despite this waning over the course of the year, especially for the shorter maturities.

Last week saw more than 15 billion euro of US corporate issuance, with the likes of Coca-Cola, AT&T and Mondelez offering multi-tranche deals designed to appeal to a wide range of investors, and Priceline, Tyco Electronics and Moody’s adding single standalone maturities. Coca-Cola alone accounted for more than half the total – 8.5 billion euro.

Headline-grabbing, Berkshire Hathaway may encourage the theme to continue.

“Since Berkshire priced, we’ve received at least three phone calls from US corporate treasurers enquiring about issuing in euros. I think Berkshire’s deal is going to prompt much more supply,” a syndicate official said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold down 2.7% in worst fall since Dec 2013 on US jobs data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold had its worst day since December 2013 on Friday after better-than-expected US non-farm payrolls fueled speculation the Federal Reserve will raise rates sooner rather than later.

Nonfarm payrolls rose 295,000 last month after downwardly revised 239,000 gain in January, the Labor Department said on Friday.

Read More Surge! Job creation jumps despite tough winter

US gold for April delivery closed 2.7 percent lower at USD 1,164.30 an ounce, its lowest level since December 2013. The metal has wiped out this year’s gains.

The dollar hit an 11-1/2 year high against a basket of major currencies, gaining more than 1 percent after US jobs data and bolstered by bolstered by strong US government bond yields.

A stronger US currency makes dollar-denominated gold more expensive for holders of other currencies, while the rise in returns from US bonds is negative for the metal, which pays no interest.

“The outcome was stronger than the forecast, there is a strong argument to increase rates, we can see that one with a stronger dollar and with the selloff in precious,” Societe Generale analyst Robin Bhar said.

“If we close below January levels, then the most obvious downside would be November’s lows of USD 1,131, obviously there would be big figure support around USD 1,150.”

Markets believe that the strong report could prompt the Fed to soon increase US interest rates, a move that would further boost the dollar, in turn hurting demand for non-interest-bearing assets such as gold.

“We continue to forecast a further strengthening of the US dollar which will keep gold under pressure,” Deutsche Bank said in a note.

Read More The only gold play that Cramer recommends

On the physical market, prices on the Shanghai Gold Exchange suggested physical demand for gold in China, the second biggest bullion consumer, remained at healthy levels.

Chinese gold prices were about USD 4-USD 5 an ounce higher than the global benchmark.

Sustained interest for physical bullion typically gives support to prices, cushioning any downside pressure.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brazil rate hikes: Adding fuel to the fire

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brazilian monetary officials hiked interest rates to a six-year high on Wednesday to combat inflation and stem declines in the real, but economists say the move only tips the country closer to recession.

The Comitê de Política Monetária, or Copom, – the central bank’s monetary policy committee – hiked the benchmark Selic rate by 50 basis points to 12.75 percent, in line with market expectations.

The central bank’s third straight rate hike aims to slow above-target inflation and bolster the Brazilian real, which fell nearly 2 percent to a 10-year low of 3 per US dollar on Wednesday. Inflation figures for February, due Friday, are expected to show annual inflation increased to a fresh 10-year high of 7.54 percent, well above the government’s 4.5 percent target, according to a Reuters poll.

“This [hiking rates] is a dangerous move,” Kathy Lien, managing director of BK Asset Management, told CNBC shortly after the decision. “Yes, inflation is a big problem and they’ve been working very hard to clamp down price pressures, but by raising interest rates, they seriously risk tossing the economy into deeper recession.”

Read More: ‘No solution’ to Brazil’s crisis: Economist

Brazil narrowly escaped a technical recession with growth of 0.1 percent in the third quarter following two quarters of contraction.

Consequences of rate hikes

Monetary tightening is squeezing the life out of Latin America’s biggest economy, according to recent data.

Consumer confidence hit all-time low last month. Weak consumption is a direct consequence of high interest rates: as individuals use more of their income on interest payments, general spending tends to drop. Meanwhile, economists continue to cut their 2015 gross domestic product (GDP) growth projections. Forecasts are for a contraction of 0.58 percent, a central bank survey on February 27 showed, down from negative 0.5 percent a week earlier – that would mark the worst result since 1990.

“Higher interest rates are the last thing the struggling economy needs,” Neil Shearing, chief emerging markets economist at Capital Economics, said in a report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mainland stocks fall as China lowers growth target to 7%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian stocks were mostly lower early Thursday, following a weak lead from Wall Street, and as China set its gross domestic product (GDP) growth target at 7 percent for 2015.

This will be the mainland’s lowest growth target in 11 years, according to a speech by premier Li Keqiang at the annual National People’s Congress (NPC), down from 7.5 percent last year – a sign of the government’s increased focus on quality over quantity as it seeks to overhaul the country’s growth model.

Overnight, US stocks closed lower amid a series of economic data that continued to show moderate growth ahead of Friday’s nonfarm payrolls report. The Dow Jones Industrial Average closed down 0.6 percent, while the S&P 500 finished 0.4 percent lower. The tech-heavy Nasdaq Composite shed 0.3 percent.
 Mainland indices

China’s Shanghai Composite index dropped 0.8 percent amid a broad-based slump.

Blue-chip stocks like the property developers and financials fell; Bank of Communications and Bank of China led losses within the banking sector, down nearly 2 percent each, while Poly Real Estate and China Vanke retreated 2.3 and 1.8 percent each.

Environment plays bucked the downtrend as the NPC seeks to clamdown on China’s pollution woes; Chongqing Water Group advanced 0.8 percent, while Heilongjiang Interchina Water Treatment and Beijing Capital Group added 0.2 percent each.

In Hong Kong, the Hang Seng index sagged 0.6 percent to a three-week low. Focus was on Standard Chartered, which announced a 37 percent slump in 2014’s net profit. Shares in Hong Kong rallied 2.6 percent following a surge in its London-listed stock on Wednesday.

Nikkei up 0.2%

Japan’s Nikkei 225 index recouped losses as the dollar-yen traded inched up slightly to 119.75. As a result, blue-chip exporters turned broadly higher; Mitsubishi Electric, Canon and Sony gained between 0.2 to 1 percent, while Toyota Motor and Toshiba held on to modest losses of 0.6 and 0.3 percent.

Machinery stocks, which are heavily dependent on the mainland, were in focus for the day; Komatsu and Hitachi Construction dropped 0.8 and 0.5 percent, respectively.

ASX sheds 0.4%

Australia’s S&P ASX 200 index notched down to a one-week low as banking stocks continue to come under pressure following the central bank’s decision to put rates on hold. Commonwealth Bank of Australia, Australia & New Zealand Banking and Westpac made losses between 0.3 to 0.4 percent, while National Australia Bank ticked 0.3 percent lower

Meanwhile, retail sales in January rose 0.4 percent month-on-month, matching market consensus, while the month’s trade balance registered at a deficit of A$980 million, slightly below expectations. Both data points “fed into the general belief that Australia is growing at below-trend,” wrote IG’s market strategist Evan Lucas.

Retailers like JB Hi-Fi and Myer resurfaced above the flatline, with a rise of 0.2 and 2.5 percent each, while Harvey Norman trimmed losses to 0.2 percent.

Kospi adds 0.1%

South Korea’s Kospi index rebounded into positive territory as traders digested the latest news coming out of China, which is South Korea’s biggest export market.

Builders were on a roll Thursday, with GS Construction leading gains with a rally of 1.4 percent. Daelim Industries and Hyundai Engineering & Construction piled on 0.5 and 0.8 percent, respectively. Also leading the bourse higher was a 2.1 percent elevation in the shares of Hyundai Motor.

LG Electronics, which was in the news after the head of its handset division said Wednesday that the firm is designing and developing its own mobile processor chips to be used in its next generation mobile phones, pared losses to trade flat.

In other news, US ambassador to South Korea, Mark Lippert, was attacked by an armed assailant screaming that the rival Koreas should be unified, South Korean police and media said Thursday. According to Korea Times, TV images showed Lippert bleeding from his head and wrist and was taken to a hospital for treatment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Holy cow! #Beefban blows up on social media

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The hashtag #beefban is blowing up on Twitter after the Indian state of Maharashtra, home to the country`s financial capital Mumbai, imposed a five-year jail sentence and 10,000 rupee ($162) fine for the sale or possession of the red meat.

The ban, which took effect Monday night , sparked a fierce national debate. Indians hold polarized views over the government`s crackdown on the slaughter of cows, which are regarded as sacred by Hindus who make up more than 80 percent of India`s 1.2 billion population.

Laws that ban or regulate the slaughter of cows exist in many Indian states, but only some have banned the sale of beef products, with others allowing the consumption of meat brought in from other states.

From outrage to support to bafflement, the decision drew a wide spectrum of reactions from social media users. By Wednesday morning, the hashtag #beefban had been used almost 40,000 times, according to social media analytics tool Topsy.

Some took digs at the Indian government for protecting cows` rights amid a lack of progress on women`s rights:

5 yrs imprisonment for possession of Beef,only 2 yrs for sexual harassment! Eating beef more dangerous than sexual harassment?! #BeefBan

Good to know in India is more safe for cows than women. #BeefBan

While, several questioned the government`s priorities:

Maharashtra CM seems to me a complete nincompoop. Power shortage is far serious problem in state right now n look at his priorities #BeefBan

When States begin legislating for the inconsequential but emotive issues you know they are intellectually bankrupt. #BeefBan

Others, meantime, responded with humor:

Cows be like… #BeefBan

Good to know a cow can now step out after dark and wear what she likes #BeefBan #MainBhiCowPlease

To be sure, the ban also had its fair share of supporters including staunch Hindus and animal rights advocates:

Killing mother cow is killing your mother for taste ! I support #BeefBan and I do not want your expert comment on this tweet !

I am an atheist for all practical purposes. I support the #BeefBan not on religious grounds but on those of Animal Rights.

 Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares mixed, but Aussie firms on Australia Q4 GDP

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares traded mixed on Wednesday as a negative finish on Wall Street and a strengthening Japanese currency damped sentiment.

Overnight, US stocks pulled back from recent highs, closing lower in light volume trade as investors weighed soft auto sales and looked ahead to domestic data. The blue-chip Dow Jones Industrial Average and S&P 500 closed down 0.5 percent each, while the tech-heavy Nasdaq finished down 0.6 percent at 4,979 after topping the 5,000 mark for the first time since March 2000 on Monday.

ASX slips 0.4 percent

Australia’s S&P ASX 200 index nudged lower in early trade, reeling from the impact of the Reserve Bank of Australia’s decision to hold interest rates steady on Tuesday.

All the big four lenders were lackluster: Commonwealth Bank of Australia, National Australia Bank and Australia & New Zealand Banking declined 0.7 percent each, while Westpac shed 0.3 percent. Big miners like Rio Tinto and Fortescue Metals lost over 3 percent each.

On the domestic data front, Australia grew 2.5 percent on-year in the October-December period, in line with Reuters estimates. On a quarterly basis, the country expanded 0.5 percent, matching market consensus. The Australian dollar briefly hit USD 0.7796 following the gross domestic product (GDP), but has since rebounded back to USD 0.7823 against the dollar.

Nikkei falls 0.8 percent

Japan’s Nikkei 225 index widened losses as the yen strengthened 0.2 percent to trade at 119.5 against the dollar. As a result, blue-chip exporters started the day on a sour note;Mitsubishi Electric plunged 2.3 percent, while Toyota Motor and Sony lost more than 1 percent each. Canon and Toshiba, meanwhile, shed 0.5 and 0.7 percent, respectively.

Index heavyweights also led the bourse lower; moble carrier Softbank and Fanuc tanked 2.5 and 0.6 percent each, while Fast Retailing reversed losses to head up modestly.

Mainland indices

China’s Shanghai Composite index inched up 0.2 percent amid a mixed trading picture in its blue-chip stocks. As property developers and brokerages rallied, financials such as Bank of China dropped 1 percent.

In Hong Kong, the Hang Seng index shed 0.2 percent in early trade, with focus on Standard Chartered, which is due to announce its full-year profit results after market close today. Shares of the British bank sagged 0.7 percent.

Kospi flat

South Korea’s Kospi index retreated from a new five-month high to slip below the flatline as the outperformers including the automakers trimmed gains. Hyundai Motor and Kia Motors climbed 0.3 and 1.3 percent, respectively, after rallying 3 percent each in the previous session.

AmorePacific erased early gains and receded 4.1 percent after the company said Tuesday it has decided to split its stock to boost value and make its shares more tradable.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow