Trump: Fed kept rates low at Obama’s behest, created ‘false mkt’

GOP presidential nominee Donald Trump told CNBC on Monday the Federal Reserve is doing what President Barack Obama wants by keeping interest rates low.

Fed Chair Janet Yellen and central bank policymakers are very political, and Yellen should be “ashamed” of what she’s doing to the country, Trump said, adding the Fed is not even close to being independent.

By keeping interest rates low, the Fed has created a “false stock market,” Trump argued in a wide-ranging interview in which he also talked about Democratic nominee Hillary Clinton’s health problems.

Trump said rates are being kept lower to bolster Obama’s legacy. “Any increase at all will be a very, very small increase because they want to keep the market up so Obama goes out and let the new guy … raise interest rates … and watch what happens in the stock market.”

Doubting whether rates would change while Obama remains in office, Trump said: “[Obama] wants to go out. He wants to play golf for the rest of this life. And he doesn’t care what’s going to happen after January.”

In response to Trump’s charges about politics influencing the central bank, Minneapolis Fed President Neel Kashkari told CNBC in a separate interview on Monday there’s no truth to that notion.

American savers are the worst hit by the Fed’s easy monetary policies, Trump said. “The ones who did it right — they saved their money [and] they cut down on their mortgages, … and now they’re practically getting zero interest on the money.”

Ariel Investments Vice Chairman Charles Bobrinskoy told CNBC the Fed deserves to be criticized for missing opportunities to raise interest rates and for hurting savers and pension plans. But he said it is “dangerous” and “not healthy” for Trump to question the Fed’s integrity.

“I don’t think Janet Yellen is making her decisions based on trying to help Obama or Clinton. I think they have a view that the world economy is weak enough that it’s not a great time to raise rates. I don’t happen to share that view, but I don’t think this is political,” he told CNBC’s “Squawk on the Street” on Monday.

As a real estate businessman, Trump said: “I love low interest rates,” but for the good of the nation, rates should be higher.

“If I refinance something, I can get money for almost nothing,” Trump said. But knocking Obama for the national debt going to USD 19.5 trillion under his watch, Trump said the debt needs to be reduced because higher rates would make interest payments exorbitant.

“These crazy, low interest rates, they’re not always going to be this way… because of market [conditions],” he said.

 5 Minutes Read

Asia markets tumble at open amid central bank jitters

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

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Summary

Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent.

Asian shares opened in the red on Monday after a sharply lower finish for major US indexes on Friday amid concerns central banks will become less accomodative.

Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent.

The Japanese benchmark index Nikkei 225 shed 1.4 percent; South Korea’s Kospi fell 1.62 percent in Asian trade.

Mainland China markets slumped at the open: The Shanghai composite fell 1.75 percent and the Shenzhen composite shed 2.22 percent. In Hong Kong, the Hang Seng index slid 2.42 percent.

“Traders have been quick to price in worst case scenario as interest rate rise jitters start taking hold and have resulted in some fairly assertive moves in bond, equity, and forex asset classes,” said Stephen Innes, senior trader at OANDA, in a Monday note.

The rising risk sentiment was because “one, the ECB did not extend QE, provoking a sell-off in bond markets, which fed into the medium to long-end US bond curve. Two, traders have convinced themselves the Fed are marching out Leal Brainard, a mega-dove, to bang the Fed’s September rate hike drum,” he added.

Fed Governor Lael Brainard was scheduled for a surprise speech at the Chicago Council on Global Affairs later on Monday.

Other recent Fed speakers have also sounded more hawkish notes.

On Friday, Boston Fed President Eric Rosengren had said that the US economy has proven to be more resilient to exogenous risks and that “gradual tightening is likely to be appropriate.”

Rosengren’s speech was cited by traders as a catalyst for the market volatility, said Chris Weston, chief market strategist at IG, in his morning note..

In company news, Samsung weighed on the Kospi, with its shares dropping 6.01 percent, extending losses from the previous session after the South Korean firm and several airlines urged all customers to stop using the Galaxy Note 7 smartphones amid concerns over fire-prone batteries.

On the data front, Japan’s July core machinery orders rose a larger-than-expected 4.9 percent from the previous month, which suggested that private capital expenditure might have picked up.

Crude oil prices continued to decline; global benchmark Brent traded down 1.42 percent, or $0.68, at $47.34 a barrel and US crude futures were lower by $0.73 at $45.15.

Spot gold slipped 0.11 percent to $1,326.2 an ounce by 9:41 am HK/SIN time.

US markets all shed more than 2 percent on Friday, with the Dow Jones industrial average down 2.13 percent at 18,085.45, the S&P 500 finishing lower by 2.45 percent at 2,127.81 and the Nasdaq composite ending down 2.54 percent at 5,125.91.

“The big mover on Friday was undoubtedly implied volatility,” Weston said. “The VIX (US volatility index) had the biggest move since the U.K. referendum, gaining 39.9 percent.”

On Monday, China will release August new yuan loans, August foreign direct investment and August money supply and India’s August consumer price index (CPI) and August industrial production were due.

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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China’s Aug data, India inflation are economic events this week

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

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Summary

August exports and imports are expected to remain in contractionary territory after tanking an annual 6.8 and 19 percent, respectively, in the previous month. Analysts at Moody’s estimate the August trade deficit at USD 7.1 billion, a slight narrowing from July’s USD 7.76 billion deficit.

India

Monday will be an India-centric day, with foreign trade, consumer price inflation (CPI) and industrial production on tap.

August exports and imports are expected to remain in contractionary territory after tanking an annual 6.8 and 19 percent, respectively, in the previous month. Analysts at Moody’s estimate the August trade deficit at USD 7.1 billion, a slight narrowing from July’s USD 7.76 billion deficit.

Growth in July industrial production could slip to 1.2 percent from an eight-month peak of 2.1 percent in June, HSBC said in a recent note. August CPI, meanwhile, is seen slowing dramatically from a 6 percent spike in July. HSBC predicts a 5.1 percent annual increase and Citi is betting on a 5 percent reading.

“After rising for four consecutive months, CPI inflation is likely to fall drastically in August, led by a steep fall in food prices. High frequency indicators that we track show that the price of vegetables (particularly tomatoes), fruits, pulses and oilseeds have each fallen over the last fortnight,” HSBC said in a note.

Wholesale prices on the other hand, due on Wednesday, are seen climbing 4 percent in August, picking up from July’s 3.5 percent rise, according to a Reuters poll.

China

China is expected to release its M2 money supply, fixed asset investment (FAI), industrial production, retail sales and foreign direct investment (FDI) for the month of August this week.

M2 money supply, a measure of all the money in an economy, including less liquid non-cash elements, due out on Monday, is seen growing 10.4 percent, Reuters estimated. That would reverse July’s 10.2 percent tumble. New yuan loans, meanwhile, likely hit USD 112.32 billion, Reuters said.

Tuesday will see the bulk of data released.

Moody’s and Reuters anticipate FAI for the first eight months of the year to expand 8 percent, which would mark the lowest pace of growth since 1999. Industrial production could rise 5.9 percent on-year, little changed from July’s 6 percent expansion, Moody’s indicated. Retail sales are expected to remain unchanged from July’s 10.2 percent annual growth.

FDI, out Thursday, could hit USD 8 billion from July’s USD 7.71 billion, Moody’s said. But the gains would be temporary, the ratings agency cautioned.

“The overall trend remains flat,” Moody’s said. “Overcapacity in heavy industry, expectations of a lower yuan, and the steady deceleration in GDP growth are weighing on capital inflows.”

Other reports to watch out for

Among the other highlights on Asia’s economic calendar this week are New Zealand’s second quarter gross domestic product (GDP) and Thailand’s monetary policy decision.

The Kiwi economy is forecast to grow “a “bumper 1.2 percent on-quarter,” according to National Australia Bank, a number that would be well above the central bank’s expectations of a 0.8 percent boost.

The Bank of Thailand (BoT) meanwhile is expected to stay on hold amid a weak external environment.

“Recent comments from Governor Veerathai Santiprabhob continued to suggest a wait-and-see stance and a preference for maintaining policy space amid ongoing uncertainties in the global economy,” HSBC explained.

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

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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

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Wall Street seems less convinced of Clinton win over Trump

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

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Summary

The stock market has recently been looking less certain about a Hillary Clinton victory in November, according to a new report by Strategas Research Partners.

The stock market has recently been looking less certain about a Hillary Clinton victory in November, according to a new report by Strategas Research Partners.

“The market has been pricing in a closer election all summer. And now the polls are starting to catch up with what investors had been sensing in the month of August,” Strategas’ Dan Clifton told CNBC’s “Squawk Box” on Friday.

During election cycles, Strategas puts together two different portfolios, aiming to reflect which stocks would do well if the Democratic presidential nominee wins in November and which stocks would benefit from a GOP victory.

“The Democratic portfolio is outperforming the Republican portfolio by about 3 percent year to date,” said Clifton, head of policy research.

But that gap has been narrowing, he added. “At one point, the Democratic portfolio was outperforming the Republican portfolio by 10 percent.”

Clifton said the Democratic portfolio peaked on July 5, the day the FBI released its findings on Clinton’s use of a private email server when she was President Barack Obama’s secretary of state and recommended no criminal charges be filed.

“Slowly the Republican portfolio has been outperforming [since then],” he said, though pointing out the 86 percent correlation between the S&P 500 and Clinton’s probability of winning the election.

Sectors that might benefit from a Clinton win include health care, “not including pharmaceuticals,” because Democrats would keep Obamacare in place but would also take a harder line against drug-price increases, Clifton said.

Infrastructure spending should increase under either a Clinton or a
Donald Trump presidency, but would likely go up more under Clinton, Clifton said.

“Our Strategas infrastructure basket … is up 25 percent year to date, clearly outperforming the S&P 500. The market has begun to price in the infrastructure stocks,” he said.

“[But] we are starting to see the infrastructure stocks slightly underperform the S&P 500 as Hillary Clinton’s probability of winning has gone down in the last couple of weeks or so,” he added.

As the election gets closer, if it looks like a Clinton victory, infrastructure stocks another get another leg up, Clifton predicted.

On the other hand, he said: “If you see the Republicans are going to possibly win this election, you’ll probably see some more rotation to defense.”

With military spending on the wane in recent years, that’s where the “Republican priority will be on the budget overall,” Clifton said.

Other sectors that could benefit from a Trump win include biotechs and big pharma, he said, on the thought a GOP administration would not pressure companies to modify their product pricing.

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

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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North Korea says it tested a miniaturized nuclear warhead

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

 Listen to the Article (6 Minutes)

Summary

North Korean state TV said that the test had no impact on the environment and caused no radiation leak, and proved that the country could make nuclear warheads whenever it wanted and mount them on ballistic rockets.

North Korea said it tested a miniaturized nuclear warhead on Friday, in response to the “threats and sanctions from hostile elements,” including the US, according to the isolated state’s official news agency.

North Korean state TV said that the test had no impact on the environment and caused no radiation leak, and proved that the country could make nuclear warheads whenever it wanted and mount them on ballistic rockets.

The statement from the rogue nation came after multiple global agencies detected seismic activity in North Korea on Friday morning local time. Prior to North Korea’s statement, both Japanese and South Korean authorities said that they believed the explosion, which caused an earthquake, was the result of a nuclear test.

South Korea’s meteorological agency said that the “man-made” quake emitted energy double that emitted by a nuclear test North Korea undertook in January. The South Korean military said the magnitude 5.0 seismic wave would indicate a 10 kilotonne blast, which would be the isolated nation’s largest ever, local news agency Yonhap reported.

South Korea’s Blue House, the equivalent of the U.S. White House, quoted President Park Geun-hyeas saying the North had conducted a nuclear test, adding that North Korea leader Kim Jong Un had behaved with “maniacal recklessness.”

Park held an unscheduled phone call with Barack Obama to discuss the issue, as the U.S. president headed back to the United States from a regional summit in Laos. The Blue House said that the two leaders agreed to use every available means to pressure North Korea to abandon its nuclear program.

Obama said any provocative actions by North Korea would have “serious consequences” and reiterated the US’s commitment to the security of its Asian allies.

Meanwhile, Japan’s Foreign Minister Fumio Kishida said his country had protested to North Korea over the suspected test, and Defense Minister Tomomi Inada told a press briefing that the country’s test and advances in missile technology posed a grave threat to Japan.

“We can’t deny the possibility that North Korea is miniaturizing a device to build a warhead,” Inada said.

He added, however, that the magnitude of the quake suggested it was not a test of a hydrogen bomb, as North Korea had claimed to have tested in January.

Japan’s chief government spokesperson said Japan would consider further unilateral sanctions against North Korea. Japan is a frequent target of North Korea’s aggression, with at least two missiles test-launched in its direction in recent months.

China’s official news agency Xinhua said that North Korea’s nuclear test was “not wise, but it added that South Korea’s decision to deploy a U.S. anti-missile system had damaged the region’s strategic balance.

Dow Jones reported that China’s Foreign Ministry said it was “firmly opposed” to North Korea’s test and urged its neighbor to stop worsening the situation.

Japan’s Foreign Minister Fumio Kishida, center, speaks to media after a National Security Council meeting at Prime Minister Shinzo Abe’s official residence in Tokyo.
Issei Kato | Reuters
Japan’s Foreign Minister Fumio Kishida, center, speaks to media after a National Security Council meeting at Prime Minister Shinzo Abe’s official residence in Tokyo.

North Korea said it tested a miniaturized nuclear warhead on Friday, in response to the “threats and sanctions from hostile elements,” including the U.S., according to the isolated state’s official news agency.

North Korean state TV said that the test had no impact on the environment and caused no radiation leak, and proved that the country could make nuclear warheads whenever it wanted and mount them on ballistic rockets.

The statement from the rogue nation came after multiple global agencies detected seismic activity in North Korea on Friday morning local time. Prior to North Korea’s statement, both Japanese and South Korean authorities said that they believed the explosion, which caused an earthquake, was the result of a nuclear test.

South Korea’s meteorological agency said that the “man-made” quake emitted energy double that emitted by a nuclear test North Korea undertook in January. The South Korean military said the magnitude 5.0 seismic wave would indicate a 10 kilotonne blast, which would be the isolated nation’s largest ever, local news agency Yonhap reported.

South Korea’s Blue House, the equivalent of the U.S. White House, quoted President Park Geun-hyeas saying the North had conducted a nuclear test, adding that North Korea leader Kim Jong Un had behaved with “maniacal recklessness.”

Park held an unscheduled phone call with Barack Obama to discuss the issue, as the U.S. president headed back to the United States from a regional summit in Laos. The Blue House said that the two leaders agreed to use every available means to pressure North Korea to abandon its nuclear program.

Obama said any provocative actions by North Korea would have “serious consequences” and reiterated the US’s commitment to the security of its Asian allies.

Meanwhile, Japan’s Foreign Minister Fumio Kishida said his country had protested to North Korea over the suspected test, and Defense Minister Tomomi Inada told a press briefing that the country’s test and advances in missile technology posed a grave threat to Japan.

“We can’t deny the possibility that North Korea is miniaturizing a device to build a warhead,” Inada said.

He added, however, that the magnitude of the quake suggested it was not a test of a hydrogen bomb, as North Korea had claimed to have tested in January.

Japan’s chief government spokesperson said Japan would consider further unilateral sanctions against North Korea. Japan is a frequent target of North Korea’s aggression, with at least two missiles test-launched in its direction in recent months.

China’s official news agency Xinhua said that North Korea’s nuclear test was “not wise, but it added that South Korea’s decision to deploy a U.S. anti-missile system had damaged the region’s strategic balance.

Dow Jones reported that China’s Foreign Ministry said it was “firmly opposed” to North Korea’s test and urged its neighbor to stop worsening the situation.
Pres. Obama address North Korea’s nuclear threat
Pres. Obama address North Korea’s nuclear threat  
20 Hours Ago | 04:36

On Thursday Yonhap reported that new satellite imagery from U.S. monitoring group 38 North showed fresh activity at the country’s nuclear test city in Punggye-ri.

Additionally, China state TV reported that China had begun monitoring for radiation in its northeast region, near the border with North Korea.

Earlier Friday the European Mediterranean Seismological Centre (EMSC) had logged a magnitude 5 earthquake in North Korea, at a depth of 10 kilometers, at 9 a.m. North Korean time. The quake was about 349 kilometers southeast of Jilin in China, the EMSC said.

The U.S. Geological Survey (USGS) also detected what it called an “explosion” that it said was 11 kilometers east-northeast of Sungjibaegam in North Korea, near a known nuclear test site.

“The wave form signal for an explosion and an earthquake have differences,” Rafael Abreu, a geophysicist at the USGS, told CNBC. “Based on those differences, we are confident it was an explosion. But we can’t say with any certainty what type of explosion.”

He noted that the energy release was equivalent to a 5.3 magnitude earthquake.

In January, North Korea launched its fourth-ever nuclear test, which initially set off warnings of a shallow earthquake. North Korea claimed at the time that the device was a hydrogen bomb, which it called the “H-bomb of justice,” although experts said that there was no evidence that the explosion was a hydrogen bomb..

 The launch of a long-range rocket in February prompted even tighter United Nations sanctions against the country.

North Korea has conducted a series of missile tests in recent months, including a series of three missile tests on Monday as leaders of the Group of 20 nations held a summit in China.

North Korean leader Kim Jong Un has called recent U.S.-South Korean military drills in South Korea, as well as plans for the South to host a U.S. anti-missile system called THAAD, a provocation.

Analysts at the U.S.-Korea Institute at Johns Hopkins University reported on their website in late August that based on its current missile activity, North Korea was on track to develop the capability of hitting targets in the region, including Japan, by 2020.

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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Most Asian markets lower; Nikkei erases gains, Kospi down 1.2%

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

 Listen to the Article (6 Minutes)

Summary

Japan’s benchmark Nikkei 225 was off 0.1 percent, erasing earlier gains, and South Korea’s Kospi extended losses, down 1.19 percent, after Yonhap broke news of a suspected nuclear test in North Korea after an earthquake was detected near a known nuclear testing site.

Asian markets were mostly lower after reports indicated an earthquake in North Korea was caused by an explosion, possibly from a nuclear test in the isolated nation.

Japan’s benchmark Nikkei 225 was off 0.1 percent, erasing earlier gains, and South Korea’s Kospi extended losses, down 1.19 percent, after Yonhap broke news of a suspected nuclear test in North Korea after an earthquake was detected near a known nuclear testing site.

Australia’s S&P/ASX 200 opened down 0.6 percent, dragged by losses in its heavily-weighted financials subindex, which slid 0.87 percent, but losses were offset by its energy sector rising 1.55 percent.

Chinese markets were nearly flat, with the Shanghai composite lower by 0.05 percent and the Shenzhen composite down 0.044 percent. In Hong Kong, the Hang Seng index was up 0.43 percent.

Disappointment with the European Central Bank (ECB) decision to stand pat on policy also weighed shares around the region. The ECB surprised markets by deciding not to extend the deadline of its bond-buying program. It also lowered its growth and inflation forecasts for 2017 and 2018.

“Yesterday’s no-change stance however does not diminish the need for further easing,” Radhika Rao, an economist at DBS Bank, said in a note Friday, citing inflation data remaining well below the central bank’s 2 percent target. “But there was no explicit mention of fresh measures under consideration, spurring a knee-jerk negative reaction in the markets.”

On the data front, China’s inflation in August grew at its slowest pace year-on-year since October 2015.

The August producer price index (PPI) rose 0.2 percent from the previous month, but fell 0.8 percent year-on-year, while the consumer price index (CPI) increased by 1.3 percent on-year, missing a Reuters poll forecast for a 1.7 percent rise.

In South Korea, the central bank held interest rates at 1.25 percent for the third straight month at its policy meeting, as expected, as it took a cautious approach to increasing household debt while awaiting the Fed’s next move.

Oil prices soared more than 4 percent on Thursday after US Energy Information Administration said crude stockpiles dropped by 14.5 million barrels last week to 511.6 million barrels, the biggest weekly drop since January 1999, Reuters reported.

“The record drop is being further propelled by oil production disruptions from storms in the Gulf. Markets have realized that the lack of supply is real and fundamentally driven, which will help the oil price over the short-term at least,” said Anthony Darvall, chief market strategist at trading platform easyMarkets, in a note Friday.

During Asia trade, the global benchmark Brent slipped 0.90 percent to USD49.54 a barrel at 9:46 a.m. HK/SIN, while US crude futures shed 0.82 percent to USD47.23.

Markets will also pay attention to Federal Reserve voting members Eric Rosengren and Daniel Tarullo, who were scheduled to speak later in the day, for hints on Fed rate expectations.

Major US indexes closed lower; the Dow Jones industrial average was down 0.25 percent at 18,479.91, the S&P 500 finished lower by 0.22 percent at 2,181.3 and the Nasdaq composite ended down 0.46 percent, snapping a four-day winning streak as Apple slipped 2.6 percent.

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

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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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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China Aug dollar-denominated exports fall 2.8% on year, imports up 1.5%

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

 Listen to the Article (6 Minutes)

Summary

Exports slid 2.8 percent on-year following July’s 4.4 percent drop, coming in better than Reuters expectations for a 4 percent decline.

Weakening exports continued to dog the world’s second-largest economy in August but imports were a surprise bright spot, Reuters reported on Thursday, citing official data.

Exports slid 2.8 percent on-year following July’s 4.4 percent drop, coming in better than Reuters expectations for a 4 percent decline.

Imports rose 1.5 percent on-year, reversing a 12.5 percent fall in July and beating Reuters’ estimated 4.9 percent fall.

That brought a trade surplus of USD 52.05 billion, slightly below July’s USD 52.31 billion, which was a seven-month high, and missing estimates for USD 58 billion.

The Australian dollar, considered a proxy for China’s economy, edged up to USD 0.7683 against the greenback, from USD 0.7677 ahead of the data.

Mainland and Hong Kong equity markets were little changed.

Thursday’s report was one of many China data points on tap this week.

On Wednesday, Beijing reported August FX reserves fell to USD 3.185 trillion, their lowest level since 2011. Meanwhile, consumer price inflation (CPI) and producer price inflation (PPI) data for August are due Friday.

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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Asia markets mixed as China data on tap; Nikkei down 0.2%

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

 Listen to the Article (6 Minutes)

Summary

Down Under, the S&P/ASX 200 opened down 1.02 percent, with the energy subindex shedding 1.52 percent, the materials subindex losing 1.77 percent and the heavily-weighted financial subindex seeing losses of 0.79 percent.

Asian shares opened mixed on Thursday, as investors consider what the Fed’s Beige Book means for US interest rate expectations.

Down Under, the S&P/ASX 200 opened down 1.02 percent, with the energy subindex shedding 1.52 percent, the materials subindex losing 1.77 percent and the heavily-weighted financial subindex seeing losses of 0.79 percent.

Japan’s Nikkei 225 was down 0.18 percent, while South Korea’s benchmark Kospi opened higher by 0.41 percent.

The Beige Book, a key indicator of the US economic health and closely watched by the Federal Reserve, showed moderate wage growth in coming months. Despite the labor market nearing full employment, broad-based wage pressures have so far been slow to pick up. But if wages start to rise, that would push up inflation in the months ahead and likely spur the Fed into action.

Japan revised its second-quarter gross domestic product (GDP) up to 0.7 percent year-on-year, compared with the initial estimates of 0.2 percent.

Japan-listed Nintendo shares were untraded early in the session, amid heavy buy orders after news that the “Super Mario Run” mobile game will be available on Apple’s app store in December, Reuters reported.

US-listed shares of Nintendo jumped more than 28 percent Wednesday after the announcement.

In currency markets, the US dollar index, which measures the greenback against a basket of currencies, was trading at 94.928, down from levels above 96 last week before the release of disappointing US economic data.

The dollar was fetching 101.78 yen in early Asian trade, compared with the dollar/yen pair trading above 103 last week before the market began to dial back expectations for the Fed to hike rates in September.

“The yen strength over the past 24 hours has been driven by a report published yesterday, noting that the Bank of Japan is struggling to reach policy consensus ahead of its policy meeting on 21 September,” said Rodrigo Catril, FX strategist at National Australia Bank, in a Thursday note.

Oil prices jumped in the US session, after American Petroleum Institute data showed the largest weekly stock declines in nationwide crude inventories in over 30 years. US crude futures settled up USD 0.67 at USD 45.50 a barrel, and jumped nearly 3 percent in post-settlement trading, while Brent added USD 0.72 cents to close at USD 47.98.

China is set to release August trade data while Australia’s July trade figures were due. The European Central Bank has a monetary policy meeting and the US jobless claims were due later in the global day.

“China’s monthly foreign trade surplus has been elevated of late because of the sharp drop in imports,” Moody’s Analytics’ economists wrote in a weekly note. “Exports [have been] relatively subdued, though, indicating that foreign trade in general will be of little benefit to the economy over the near term,” they added.

Stateside, the Dow Jones industrial average finished down 0.06 percent at 18526.14, while the S&P 500 ended effectively flat at 2186.16. The Nasdaq composite was the exception among the majors, edging up 0.15 percent to 5283.93, which was a fresh intraday and closing record.

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Apple introduces the iPhone 7, Apple Watch Series 2

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

 Listen to the Article (6 Minutes)

Summary

Apple officially introduced the iPhone 7 and updated Apple Watch on Wednesday.

Apple officially introduced the iPhone 7 and updated Apple Watch on Wednesday.

The iPhone 7 may have one of the most impressive phone cameras to hit the market yet. As expected, the iPhone 7 Plus will feature two rear cameras.

Apple said that a new software feature allows users to see a live preview with shallow depth of field. Photos taken on the iPhone 7 Plus will be able to achieve a very sharp foreground and blurry background.

The company said the new Apple Watch is not only water resistant up to 50 meters, but up to 50 percent faster. Apple also said that the Series 2 will be available in ceramic, a new material.

The Cupertino, California-based company also announced that it is partnering with Nike to launch the Apple Watch Nike+. The new Apple-branded model will be available starting Sept. 16, but the Nike version will roll out in October.

Shortly after the CEO Tim Cook took the stage, Apple revealed new iPhone features on Twitter, including new cameras, water resistance, stereo speakers and longer battery life. The tweets were promptly deleted.

Apple shares remained essentially flat, even after the event started.

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Leaders admit Ireland will have to accept Apple tax payment

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

 Listen to the Article (6 Minutes)

Summary

The country’s Department of Finance said in a briefing paper sent to members of the Dail, Ireland’s parliament, that its Revenue Commission would have to collect the sum and put it into an escrow account, ahead of a key debate on Wednesday on whether or not to appeal the decision.

Ireland’s government has admitted that it will have to accept a 13 billion euros (USD 14.6 billion) payment from Apple ordered by the European Commission, despite well-publicized resistance to the award from its politicians.

The country’s Department of Finance said in a briefing paper sent to members of the Dail, Ireland’s parliament, that its Revenue Commission would have to collect the sum and put it into an escrow account, ahead of a key debate on Wednesday on whether or not to appeal the decision.

The special sitting of the Dail comes after considerable protests by both Apple and the Irish authorities over the EC decision, which was made on the basis that low tax rates for Apple subsidiaries based in Ireland constituted illegal state aid. This has been hotly contested by the US technology giant, which has had operations in Ireland for more than three decades.

The Department of Finance is insistent that the actions which led to Apple paying an effective corporate tax rate of 1 percent on its European profits in 2003, which fell to 0.005 percent in 2014, were legal under Irish tax law.

Tim Cook, Apple chief executive, has dismissed the ruling as “political crap”, but recently said that Apple is planning to repatriate some of its USD 215 billion overseas cash back to the US next year.

Ireland, where corporation tax is 12.5 percent, has built a reputation as a tax haven over many years, but this has become particularly controversial in the post-credit crisis world, after its bailout by the European Union, and amid growing international scrutiny of multinational companies’ tax affairs.

Many Irish residents want to keep its low-tax status to attract investments, according to a poll released Monday for RTE, Ireland’s national broadcaster, which showed that 62 percent of respondents supported the Irish government appealing the decision.

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?