Month: November 2016

OPEC debates oil cuts amid deep disagreement

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

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OPEC began on Wednesday debating a deal to curtail oil production in an effort to prop up the price of crude, with Iran and Iraq resisting pressure from Saudi Arabia to participate fully in any action.

Ministers from the Organization of the Petroleum Exporting Countries met informally at 0700 GMT at the Vienna Park Hyatt hotel and were due to begin a formal gathering at OPEC headquarters at 0900 GMT.

“I’m optimistic,” said Iranian Oil Minister Bijan Zanganeh, adding there had been no request for Iran to cut output.

“I think we are looking at a very positive meeting,” said UAE Energy Minister Suhail bin Mohammed al-Mazroui. His colleagues from Angola, Algeria and Nigeria also said they believed OPEC would reach a deal on Wednesday.

International Brent crude rose more than 4 percent to over $48 a barrel, after heavy losses a day earlier.

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

European bourses open mixed; OPEC deal on the radar

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

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European markets started Wednesday trading mixed with investors closely following political developments in Italy and a potential OPEC deal.

The pan-European Stoxx 600 opened 0.13 percent lower with most stocks moving south.

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

European markets open lower as oil prices dip

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

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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 currency swap won’t root out tax cheats: Economists

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

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Three weeks after Indian Prime Minister Narendra Modi shocked the country by announcing a major currency reform, doubts remain as to whether the aim of corralling tax evasion will work.

On November 8, Modi announced that all 500 and 1,000 rupee notes in circulation would be cancelled by year-end and replaced with new notes as part of efforts to catch tax evaders holding undeclared cash, or “black money.”

The Reserve Bank of India (RBI) said on Monday that it has received 8.4 trillion rupees (around USD 120 billion) so far in old notes.

Currency controls can certainly hinder large-scale black money operators, including counterfeiters and financiers of terror networks, but they don’t address the conditions that allow hidden wealth to flourish, economists told CNBC.

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 Donald Trump is going to need Janet Yellen

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

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After spending a good portion of his campaign bashing Fed Chair Janet Yellen, President-elect Donald Trump is about to find out he will need her if he wants to implement key parts of his ambitious domestic spending agenda.

In her own way, Yellen already has signed on to a key aspect of Trump’s plan. During a closely watched speech she delivered in October — nearly a month before Trump won the election — the central bank chief entertained the idea of allowing a “high-pressure economy” to come into existence before tightening the monetary screws.

While the details aren’t clear, Yellen said that would entail “robust aggregate demand and a tight labor market” that she said would combat the low-growth environment that has plagued the US since the Great Recession ended.

During the campaign, Trump told CNBC that Yellen should be “ashamed” of the way she has led policy during a term that began in 2014. Yellen has spoken publicly once since the election, at a congressional hearing, but she gave little indication of how she feels about the incoming administration.

Once he takes office, Trump may end up singing a different tune from his sharp campaign-trail criticism.

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

Asia markets open mixed; Nikkei down, Kospi and ASX trade flat

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

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Asia markets were mixed on Tuesday, taking cues from the US where a post-election rally appeared to stumble.

Traders also looked ahead to key global events set to take place this week, including a meeting on Wednesday between the world’s largest oil producers, and the release of the US nonfarm payroll report on Friday.

In Japan, the Nikkei 225 opened down 0.41 percent, while the Topix fell 0.34 percent.

Japanese shares were likely pressured by a slightly stronger yen, which traded at 111.94 against the dollar on Tuesday morning in Asia, climbing from levels near 113.00 in the previous week.

Major exporters sensitive to the yen traded mixed. Among automakers, Toyota was down 0.47 percent, Honda was off by 1.05 percent and Mazda fell 1.02 percent. Electronics maker Sharp was down 0.54 percent, while Canon and Nikon climbed 0.16 and 1.27 percent, respectively.

In South Korea, the Kospi was flat at 1,977.69, with shares of electronics giant Samsung up 0.18 percent. The smartphone maker said in a statement on Tuesday it was reviewing if it should transition to a holding company structure.

The announcement comes after US activist hedge fund Elliott Management proposed in October the company split itself into a holding vehicle for ownership purposes and an operating company, according to Reuters.

Samsung also said it will allocate 50 percent of its free cash flow to shareholder returns for 2016 and 2017, and said it would pay a dividend of 28,500 won (USD 24.36) per share in 2016, up 36 percent on-year.

Meanwhile, Australia’s benchmark ASX 200 was flat at 5,469.20.

The Dow Jones industrial average closed 54.24 points, or 0.28 percent, lower at 19,097.90. The S&P 500 index fell 11.63 points, or 0.53 percent, to close at 2,201.72, while the Nasdaq dropped 30.11 points, or 0.56 percent, to end at 5,368.81.

In the currency market, the dollar pulled back against a basket of currencies to last trade at 101.33, after falling to a session low of 100.64 earlier. That was down from levels near 102.00 in the previous week.

The slip in the dollar saw other major currencies trade higher; the Australian dollar was at USD 0.7492, up from levels below USD 0.7400 last week. The euro was at USD 1.0614, climbing from below $1.055, while the pound traded at USD 1.2409.

Treasurys also rose in the US on Monday, with the two-year note yield dropping to 1.107 percent, while the benchmark 10-year yield traded lower at 2.314 percent.

The pull-back across asset classes could suggest market watchers’ enthusiasm for the Trump administration was waning.

But some analysts pointed out that the change in direction was more indicative of short-term market moves, rather than any fundamental reassessment of what Trump’s economic policies might look like in practice.

“We are much more inclined to view the dollar-yen-led decline in the dollar, modest dip in bond yields and softer stocks as more reflective of short-term market positioning,” Ray Attrill, global co-head of foreign exchange strategy at the National Australia Bank, said in a note.

Oil prices gained more than 2 percent during the US session on Monday, ahead of OPEC’ s official meeting Wednesday.

On Sunday, Saudi Arabian energy minister Khalid al-Falih had cast fresh doubts over the cartel’s ability to agree a proposed production cut when he said the oil market, currently suffering from a supply glut, would rebalance in 2017 even without intervention from producers, reported Reuters.

Meanwhile, a Monday meeting between OPEC and non-OPEC producers was called off after Saudi Arabia declined to attend, Reuters added.

US crude futures closed up 2.21 percent at USD 47.08 a barrel on Monday, while global benchmark Brent climbed 2.12 percent to USD 48.24.

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

China’s central bank deputy governor talks up yuan strength

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

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Comparing the yuan’s recent moves against the dollar misses the currency’s underlying strength of the against a more appropriately watched basket, People’s Bank of China (PBOC) Deputy Governor Yi Gang said in remarks released on Chinese state-run media at the weekend.

In a question-and-answer format interview with Xinhua news agency that was posted on the central bank’s website, Yi said the yuan remained a strong and stable currency in the global monetary system, while noting concerns about a slide against the dollar after Donald Trump’s victory in the Nov. 8 presidential election.

Comparing the yuan’s recent moves against the dollar misses the currency’s underlying strength of the against a more appropriately watched basket, People’s Bank of China (PBOC) Deputy Governor Yi Gang said in remarks released on Chinese state-run media at the weekend.

In a question-and-answer format interview with Xinhua news agency that was posted on the central bank’s website, Yi said the yuan remained a strong and stable currency in the global monetary system, while noting concerns about a slide against the dollar after Donald Trump’s victory in the Nov. 8 presidential election.

The yuan plunged to eight-and-a-half year lows versus the dollar last week. On Monday, the PBOC set the yuan’s central parity rate against the dollar at 6.9042, stronger than the 6.9168 level set on Friday.

“Referencing the yuan against a basket of currencies can better reflect the overall competitiveness of a country’s goods and services,” Yi said.

Yi said the yuan’s movements were due to domestic factors in the US, as they reflected the rise of the greenback on the back of improvements in the US economy and inflation, alongside expectations of a quickening in the pace of Federal Reserve interest rate hikes.

The UK’s June referendum that supported leaving the European Union and the Egyptian central bank’s move to freely float its currency on Nov. 3 also contributed to a faster depreciation of the yuan against the dollar, he added.

“These factors are somewhat unexpected for various countries. A rapid rise in capital inflows back to the US, record highs reached in the three major indices, and a general depreciation in global currencies against the dollar, some of which fell relatively much,” he 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

Japanese stocks lower as yen jumps against dollar

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

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Japanese stocks traded weaker on Monday after an 11 straight sessions of gains as the yen fell sharply against the dollar and oil prices slipped.

Japan’s Nikkei 225 fell 0.82 percent, likely due to the yen strength, which is seen as a negative for Japanese export-oriented stocks. The yen surged more than 1 percent to 111.63 against the dollar as of 10:01 am HK/SIN, well below levels above 113 last week.

Australia’s ASX 200 eased 0.29 percent, weighed by weaknesses in its energy sub-index, which fell 1.94 percent, and its materials sub-index, which was down 1.03 percent.

Tabcorp jumped 2.27 percent at USD 4.73 per share, after The Mail on Sunday reported that British bookmaker Ladbrokes Coral planned to make a 2 billion pound (USD 2.5 billion) bid for the Australian betting company.

In South Korea, the Kospi recovered from earlier losses to trade up 0.17 percent. Hundreds of thousands people rallied in Seoul at the weekend for the fifth straight week of protests against President Park Geun-hye, who is embroiled in a scandal over influence-peddling.

In China, the Shanghai composite was up 0.38 percent, while the Shenzhen composite dipped 0.12 percent. Hong Kong’s Hang Seng edged higher 0.32 percent.

Last Friday, China and Hong Kong securities regulators announced that the long-awaited Hong Kong-Shenzhen stock connect would kick-off on December 5. The trading link would allow foreign investors to trade Shenzhen stocks from Hong Kong.

The dollar index, which tracks the greenback against a basket of currencies, was softer at 100.99 as of 10:02 am HK/SIN, compared to a surge to 102.07 last week, a level not seen since April 2003.

“We think that the dampening of the dollar strength is temporary. Overall, the USD momentum remains to the upside amid Trump’s vast infrastructure program and Fed imminent tightening,” said Cynthia Jane Kalasopatan from Singapore’s Mizuho Bank said in a note on Monday.

Markets have been on a roll since Donald Trump’s surprise presidential election victory on Nov. 8, with “Trumponomics” expected to mean more fiscal spending and higher inflation, while interest rates are also expected to rise.

The Dow Jones industrial average ended up 0.36 percent at 19,152.14 after a holiday-shortened trading session on Friday, the S&P 500 closed up 0.39 percent at 2,213.35 and the Nasdaq composite closed up 0.34 percent at 5,398.92.

The small-cap Russell 2000 hit record intraday highs before closing up 0.38 percent at 1,164.14, a record high close, and notching its longest winning streak since 1996.

“We have a number of really bullish set-ups in global indices at present, obviously, we’ve seen this front and center in all four main US indices, the Nikkei 225 and also the Chinese CSI 300, which is near the year’s highs,” Chris Weston, chief market analyst at spreadbettor IG, said in a note on Monday. “However, we can now add the ASX 200, which, after pushing through 5,500 is eyeing the year’s highs of 5,611 itself.”

Energy shares will also likely be in focus after Reuters reported that Saudi Arabia said it would not attend talks on Monday with non-OPEC members to discuss production cuts, which prompted a fall in crude futures on Friday of more than 3 percent on Friday in the U.S. On Monday in Asian trade, US crude futures were down 0.89 percent at USD 45.65 a barrel, while Brent futures dropped 0.91 percent at USD 46.81.

On Sunday, Saudi Arabia’s energy minister Khalid al-Falih said he believed the oil market would balance itself in 2017 even if producers did not intervene, and that keeping output at current levels could therefore be justified. He said that Saudi Arabia was not attending the Monday meeting because OPEC members themselves had not agreed on production levels.

Across the Asia Pacific region, oil majors were mostly lower. Australia’s Santos dropped 2.51 percent to AUSD 4.085 per share, while Oil Search stock fell 2.52 percent to AUSD 6.765, Japan’s Inpex was down 1.73 percent at 1,079.5 yen and China’s Shanghai Pechemwas down 0.16 percent at 6.1 yuan. South Korea’s Inpex bucked the trend to trade up 0.94 percent at 86,100 won.

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

European markets mixed; Wall Street reopens

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

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European stocks were flat Friday amid what is likely to be low liquidity due to a shortened session on Wall Street after the Thanksgiving holiday.

The pan-European Stoxx 600 was down 0.02 percent at the start of the session with several stocks in red.

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