5 Minutes Read

Pakistan lifts YouTube ban after three years

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

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Summary

YouTube was blocked in Pakistan in 2012 after the posting of an inflammatory video, Innocence of Muslims, sparked violent protests across the Muslim world.

Pakistan announced on Monday that it was restoring YouTube access in the country, after Google created a Pakistan-specific version of its video platform that allows authorities to censor content on the site.

YouTube was blocked in Pakistan in 2012 after the posting of an inflammatory video, Innocence of Muslims, sparked violent protests across the Muslim world.

The three-year ban has been one of the site’s most high-profile outages, alongside its legal battles in Turkey.

Pakistan’s government on Monday ordered the country’s telecom regulator to lift a ban on YouTube within 48 hours, a senior Pakistani official told the Financial Times.

“We have reached an understanding with YouTube so that material considered offensive will not be shown in Pakistan,” he said.

Under the agreement, the Pakistan Telecom Authority will be able to ask YouTube to remove any material it deems offensive, the government said in a statement.

YouTube maintains more than 85 country-specific sites around the world in order to showcase local content, and in some cases to comply with local censorship laws.

In Google’s most recent transparency report, the company said that YouTube received more than 12,000 takedown requests from governments during the second half of 2014.

The company said it had complied with about half of these demands.

Western diplomats said the ban had become irrelevant as many users in Pakistan had found ways to access YouTube using proxy servers.

“Many users were able to successfully access YouTube so what was the point [of] keeping the ban,” said one.

YouTube and other US sites including Facebook have faced periodic blocks in Pakistan over content that is deemed to be blasphemous.

The film, which sparked the ban and caused riots across the Muslim world, was a crude piece of propaganda against the Prophet Mohammed.

After the attacks, YouTube removed the video from its site in Egypt and in Libya, but it remained uploaded in other countries.

Protests in Pakistan over the film grew so large that the US government ran advertisements on local television denouncing the film, hoping to quell the violence.

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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Jail to jihad:Indonesian prisons a breeding ground for militancy

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

 Listen to the Article (6 Minutes)

Summary

Afif’s graduation from jailbird to jihadi shines a light on a prison system where staff shortages, overcrowding and corruption have allowed extremists to mingle and emerge as determined killers in the name of Islam.

Afif was an inmate in a high-security Indonesian jail when he transformed from aspiring radical Islamist to soldier for Islamic State, ready to sacrifice his life for a group based thousands of miles away in the Middle East.

His journey ended with his death last week on a busy intersection in central Jakarta, after the gun and suicide bomb attack he launched with three other militants that brought Islamic State’s brand of violence to Southeast Asia for the first time.

Afif’s graduation from jailbird to jihadi shines a light on a prison system where staff shortages, overcrowding and corruption have allowed extremists to mingle and emerge as determined killers in the name of Islam.

Security officials say Afif, also known as Sunakim, was sentenced to seven years in prison for taking part in a militant training camp in the province of Aceh, where Islam is generally practiced in a stricter form than other parts of Indonesia.

Once behind bars, he refused to follow deradicalization programs, the officials added.

Akbar Hadi, spokesman for the Ministry of Law and Human Rights, declined to comment on whether Afif’s activities were monitored after he was released last August.

Police said he planned the Jakarta siege with the three other attackers, one of whom was also a former convict. Four civilians died in the attack along with the militants.

A report by the Institute for Policy Analysis of Conflict (IPAC) last year said that 26 prisons across Indonesia housed about 270 “convicted terrorists”, but Islamic State supporters accounted for only a small minority of them.

National Police Chief Badrodin Haiti told Reuters that at least five jailed militants were believed to have been in communication with the plotters in the lead-up to the attack.

Couriers, cell phones

While inside Jakarta’s Cipinang prison, Afif was one of some 20 convicts heavily influenced by fellow convict and firebrand Islamist cleric Aman Abdurrahman, experts said.

From behind bars, Abdurrahman heads an umbrella organization formed last year through an alliance of splinter groups that support Islamic State.

“They shared the same cells, they prayed together, they cooked together,” said Taufik Andrie, Jakarta-based executive director of the Institute for International Peacebuilding.

Abdurrahman regularly spread “takfiri” doctrine, a belief among Sunni militants who justify their violence by branding others as infidels, through his sermons and lectures.

Abdurrahman was moved to a maximum security prison in Nusakambangan in Central Java in 2013, but continued to communicate with Afif and a growing group of around 200 followers using couriers and cell phones.

A lawyer for Abu Bakar Ba’asyir, another high-profile radical inmate at Nusakambangan, told Reuters it is easy to convey messages to the outside world from inside prison.

“Any kind of visitor is allowed and even if they don’t exchange any cell phones, there is still an exchange of information and the visitor can interpret that,” said Achmad Michdan.

Social media a key tool

Experts say radical inmates like Abdurrahman still get away with disseminating sermons by email, Facebook, and hard copies. Despite being behind bars, Abdurrahman was able to make an online pledge of allegiance to Islamic State in 2014.

“Those with more radical thinking can also hold religious sermons on a regular basis and it is very easy to convey radical ideas to others,” said Farihin, a former militant who participated in a government deradicalization program during his time in a prison in Palu on the island of Sulawesi.

Indonesia’s counter-terrorism chief, Saud Usman Nasution, told Reuters in November that prison officials were unable to halt this type of communication because of overcrowding.

“We are aware that there is a problem with convicts being allowed to communicate using the Internet and cell phones. There is definitely room for improvement,” said Ministry of Law and Human Rights spokesman Hadi, adding that inmates cannot be forced to join deradicalization programs.

Experts say access to social media and messaging apps like Telegram is a large part of the problem.

Police believe the alleged mastermind of the Jakarta attack, an Indonesian fighting with Islamic State in Syria called Bahrun Naim, used social media to communicate his radical ideas to followers in Indonesia.

He may also have transferred thousands of dollars to accounts here, police said.

Since the attack, Indonesia has blocked websites and sent letters to social media networks Twitter, Facebook and Telegram, asking them to take down radical content.

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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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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Volkswagen faces shareholder claims over emissions scandal

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

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Summary

Law firm Nieding + Barth said on Monday it would lodge a case with a regional court in Brunswick this week, seeking hundreds of millions of euros in damages on behalf of 66 institutional investors from the United States and Britain.

Dozens of large shareholders in Volkswagen plan to sue the carmaker in a German court, seeking compensation for the plunge in its shares due to its emissions test cheating scandal.

Law firm Nieding + Barth said on Monday it would lodge a case with a regional court in Brunswick this week, seeking hundreds of millions of euros in damages on behalf of 66 institutional investors from the United States and Britain.

“On top of that, we collected several thousands of private investors.

Therefore we think we are the biggest platform for suits against Volkswagen in Germany,” said Klaus Nieding of Nieding + Barth.

Volkswagen’s (VW) shares have lost almost a third of their value, or about 22 billion euros (USD 24 billion), since it admitted in September to misleading US regulators about emissions with the help of on-board engine control software.

The law firm plans to use so-called capital market model claims, a German legal procedure which – for lack of US style class-action lawsuits – uses court rulings won by individual investors as templates to set damages for others that are equally affected.

VW, which declined to comment, is facing a legal onslaught on several fronts.

US owners of vehicles with higher-than-stated emissions are expected to seek billions of dollars in damages, while the US Justice Department has sued VW for up to USD 46 billion under the Clean Air Act.

Nieding + Barth said it would argue that VW had been aware of its violation of diesel emissions rules before its first statement on the matter in September and should have informed the public earlier.

Germany’s Bafin watchdog said on Monday its probe of whether VW breached disclosure rules was so complex it would likely take several more months.

Bentham Europe, a litigation finance group backed by US hedge fund Elliott Management and Australian-listed IMF Bentham, said in November it was in contact with VW’s top 200 investors about launching a damages claim in Germany as soon as February.

German lawyer Andreas Tilp in October filed a lawsuit on behalf of retail investors.

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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China’s economy grew 6.9% in 2015, a 25-year low

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

 Listen to the Article (6 Minutes)

Summary

China’s economy grew 6.8 percent in the fourth quarter of 2015

China’s economy expanded at its slowest pace in 25 years in 2015 – at 6.9 percent – reigniting worries about the health of the world’s second-largest economy.

China’s economy grew 6.8 percent in the fourth quarter of 2015.

Economic growth for the quarter was expected to come in at 6.8 percent on-year, down from the third quarter’s 6.9 percent, according to a Reuters poll, which also found economists expected full-year growth at 6.9 percent, down from 2014’s 7.3 percent.

At the opening ceremony for the Asian Infrastructure Investment Bank on Saturday, Chinese Premier Li Keqiang said that China’s economy grew about 7 percent in 2015, with services accounting for half of GDP.

To counter slowing growth, policy makers have taken a slew of easing measures, including interest rate and reserve requirement ratio cuts from the central bank, the People’s Bank of China. Analysts are predicting further easing measures ahead to bolster the mainland’s slipping growth rate.

There are a slew of concerns about the Chinese economy as it transitions from a manufacturing base to services: The country is hooked on debt, the shadow banking sector has imploded, the property market sometimes shows signs of a bubble and major industries are slowing.

Those concerns have driven, at least in part, a sharp drop in China’s stock markets recently. The Shanghai Composite has entered “bear within a bear” territory, falling more than 20 percent from its December high, as well as trading down more than 40 percent from its 52-week high set in June of last year.

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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Don’t panic, buy EM, says Templeton’s Hasenstab

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

 Listen to the Article (6 Minutes)

Summary

Emerging markets assets have tumbled since the start of the year, with China entering a “bear within a bear” territory.The Shanghai Composite is down more than 20 percent from its December high, as well as trading down more than 40 percent from its 52-week high set in June of last year.

Markets are pricing in an economic collapse in emerging markets and that’s a buying opportunity, Templeton Global Macro’s influential chief investment officer Michael Hasenstab told CNBC.

“This is one of those once-in-a-decade periods where there’s mass panic-selling,” Hasenstab told Squawkbox.

“We have blown through the lows of the Global Financial Crisis, we’ve blown through the lows of the Asian Financial Crisis [and] the Tequila Crisis. And it’s true things are slowing. The global economy is slowing. But it’s not this collapse.”

Emerging markets assets have tumbled since the start of the year, with China entering a “bear within a bear” territory.The Shanghai Composite is down more than 20 percent from its December high, as well as trading down more than 40 percent from its 52-week high set in June of last year.

“I have never seen people more pessimistic on an asset class than emerging markets,” Hasenstab said.

Emerging markets have certainly been unloved: about $74 billion flowed out of global emerging market equity funds in 2015, up from $25 billion in outflows in 2014, according to data from JPMorgan. Asian emerging markets bore the brunt of the exit; $39 billion flowed out of Asia ex-Japan equity funds last year, the data showed.

As of last week’s close, the MSCI Emerging Markets Asia index was trading at 10.8 times 2016 earnings, while emerging Europe is trading at 6.2 times, according to data from Credit Suisse. More broadly, the MSCI Emerging Markets index is at 10.4 times 2016 earnings, the data show.

“The market is pricing in a complete implosion and the reality is it should just price in a slowdown. So there’s good value out there if you have the patience and the staying power to hold to your convictions,” Hasenstab said.

“But you’re paid to wait, with valuations cheap and in some cases yields very high. If you just sit there and wait for a year, you’re actually getting a nice return.”

The MSCI Emerging Markets Free index, a free-float-adjusted index tracking global emerging markets, has a trailing dividend yield of 3.0 percent, above its five-year average of 2.7 percent, according to Credit Suisse data.

Templeton Global has scooped up shares in select countries, Hasenstab said, but he noted that not all emerging markets were created equal.

“The countries we’re avoiding [are] places like Venezuela, places like Russia, Turkey, South Africa, where either there’s an oil sensitivity that they can’t escape or there’s some policy challenges or structural problems in their country,” he said.

“But places like Mexico, actually, they’ve had two series of governments that have actually changed parties and had total continuity of economic reform. They’re now the largest auto exporter to the U.S. They’re really well positioned yet they’re getting blown up.”

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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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 GDP: The elephant in the market

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

 Listen to the Article (6 Minutes)

Summary

Growth for the fourth quarter is also expected to ease. This is what analysts are saying ahead of the release.

China’s economic growth data for 2015 are due on Tuesday and markets are bracing for the slowest pace of expansion since 1990.

Growth for the fourth quarter is also expected to ease. This is what analysts are saying ahead of the release.

Brian Tan, an economist at Nomura:

Nomura is forecasting fourth quarter GDP growth slowed to 6.4 percent on-year from 6.9 percent in the third quarter.

“The moderation would largely reflect a much smaller contribution from financial services (reflecting the slump in the equity market). However, growth in the rest of the economy should be similar to the third quarter, as weakness in mining, construction and heavy industry are largely countered by stronger public infrastructure spending, consumption and services,” Nomura said in a note Friday.

“Overall, the timelier monthly data are likely to signal that growth is stabilizing (albeit at a low level and likely only temporarily), underpinned by the cumulative policy easing measures and consistent with the stronger-than- expected trade and total social financing data for December.”

Mizuho Bank:

“Tell-tale signs of the slowdown from lethargic industrial activity to dismal PMI manufacturing have markets bracing for a disappointing read of between 6.9 percent. And the number may not be too far off, with possibility of 6.8 percent as the ‘disappointment.’ Nonetheless, ‘hard evidence’ of 2015 growth missing the 7 percent target (likely to be 6.9 percent) and slowing from 7.3 percent in 2014 is likely to renew pessimism,” the bank said in a note Monday. “Bears will bemoan China’s inability to rekindle growth despite the slew of stimulus launched via the monetary, banking and fiscal channels. And currency market cynics will seize this apparent policy impotency as grounds for yuan devaluation; a favorite conspiracy theory. And talk of ‘currency wars’ could potentially add to the bearish momentum in the markets.”

Societe Generale:

“We expect a mild improvement in growth momentum, reflecting numerous monetary and fiscal stimulus measures,” the bank said in a note Monday. “GDP growth is likely to have slowed another 0.1 percentage-point to 6.8 percent, mainly because of a much-reduced contribution from the financial sector.”

Moody’s Analytics:

“China’s economy decelerated further in the final quarter of 2015, judging from slower growth in industrial production and fixed asset investment and falling exports and imports. Price pressures are nonexistent and the government cut interest rates in the quarter, which indicates a continued output gap and need for stimulus. Our tracking model puts GDP growth at 5.7 percent year-on-year, but the official series is expected to come in closer to 6.8 percent, possibly boosted by higher financial sector activity.”

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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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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How the lifting of Iran sanctions will hit oil: Experts

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

 Listen to the Article (6 Minutes)

Summary

This means that the OPEC member will now be able to export oil, sending a wave of fear across the already weak markets which have been plagued by an energy supply surplus.

International sanctions against Iran were lifted over the weekend after the United Nations nuclear agency declared Tehran had fulfilled its commitment to scale back its nuclear program.

This means that the OPEC member will now be able to export oil, sending a wave of fear across the already weak markets which have been plagued by an energy supply surplus.

Oil prices tankedin early Asian trade Monday and are now about 70 percent lower from the summer of 2014 when prices began their extended decline

Experts weigh in on how Iran’s re-entry into the global oil markets will impact the sector:

Commerzbank head of commodities research, Eugen Weinberg

“Instead of acting as an early indicator like it used to be in the past, the oil price drop is being driven down by deliberate OPEC oversupply, not weak demand (demand is red hot and never been as strong as it is now). So the current stance of the oil market should be a boon for the economies (of oil consuming countries) and the financial markets, not a bust.”

UBS analysts Giovanni Stauvono and Dominic Schnider

The likely increase of Iranian oil production could not have come at a more unfavorable point in time with the oil market oversupplied amid renewed economic concerns (particularly related to China) darkening the outlook for oil demand growth.

“With market participants likely opting for the worst outcome, which would swell the global oversupply even further, lower prices are required to shut-in production from non-OPEC countries, particularly the U.S. These adjustments are likely to (contribute to) even more company defaults related to oil, as well as less investment spending across the oil sector.”

Energy Aspects, chief oil analyst, Amrita Sen

“I’d find it hard to believe it has a bigger effect than (a small knee-jerk reaction)

“We believe Iran will only be able to bring oil to the market gradually – they are only likely to increase production by around 250,000 to 400,000 million barrels a day relatively quickly, but will then face technical constraints that require western expertise and investment.”

Manaar Energy head of consulting, Robin Mills

“I think Iran will return to the market as fast as they reasonably can – they need the revenues.

“Iran won’t return to its pre-sanctions export levels, at least not until they have received substantial new investment, taking several years. But I do expect 600,000-800,000 barrels a day extra over the course of 2016. I don’t expect substantial damage to the fields, as the shut-in was quite predictable and was not caused by war etc.

“I wouldn’t expect a further sharp price fall, given how far prices have already fallen, and this news was quite well flagged.”

FG Energy chairman Fereidun Fesharaki

Iran has pre-sold the oil so we know more than half is not coming to Asia. We can identify, Greece, Spain and Italy for around 200,000 barrels a day, then Turkey and South Africa for around 150,000 barrels a day, Korea, India and Sri Lanka and some others for the rest.

“The market will (open lower) but by the end of the week, this impact may be gone. It is the bigger supply issue which is driving the market and Iran is just one part of the puzzle.

“Size matters, so market share is not only about money but about how important you are. Iran was the second largest OPEC exporter and important. With sanctions, it lost money and became irrelevant. It becomes relevant again and becomes now number three after the Iraqis.”

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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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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 5 Minutes Read

US oil plunges 5.7% on China, closes at $29.42 a barrel

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

 Listen to the Article (6 Minutes)

Summary

The March Brent contract was down USD 1.77, or 6.25 percent, at USD 28.96 a barrel, having fallen as low as USD 28.82, the weakest level since February, 2004.

World oil prices slumped to below USD 29 a barrel on Friday, as a further fall in the Chinese stock market and the prospect of an imminent rise in Iran’s crude exports deepened fears of a longer supply glut.

After closing higher for the first time in eight sessions on Thursday, US and Brent crude futures slumped to new 12-year lows, taking this year’s losses to more than 20 percent, the worst two-week decline since the 2008 financial crisis.

The slump was not over yet, some analysts warned, as the lifting of sanctions on Iran opens the door to a wave of new oil. The International Atomic Energy Agency (IAEA) is expected later on Friday in Vienna to issue its report on Iran’s compliance with an agreement to curb its nuclear program, potentially triggering the lifting of Western sanctions.

Shares in China, the world’s No. 2 oil consumer, tumbled on Friday, with the Shanghai index ending down 3.5 percent to its lowest close since December 2014 and the yuan weakening sharply offshore. Adding to fuel demand concerns, US data showed retail sales fell and industrial production weakened in December.

The “ongoing worries regarding the pace of economic growth” spurred a new round of selling in the oil market, said Tim Evans, energy futures specialist at Citi Futures.

The March Brent contract was down USD 1.77, or 6.25 percent, at USD 28.96 a barrel, having fallen as low as USD 28.82, the weakest level since February, 2004.

US crude futures closed down USD 1.78, or 5.71 percent, at USD 29.42 a barrel.

Prices remained steady after oilfield services firm Baker Hughes reported the US oil rig count fell by just 1 rig, bringing the total to 515. At this time last year, drillers were operating 1,366 rigs in US oil fields.

Even before Iran’s sanctions are lifted, Iran’s oil exports were on target to hit a nine-month high in January. Tehran is expected to target India, Asia’s fastest-growing major oil market, as well as its old partners in Europe with increased exports once sanctions are lifted.

“It is the wrong time for Iran to be returning to the oil market, both for the market and likely also for Iran,” Phillip Futures said in a note on Friday.

Despite oil prices hovering around new multi-year lows, analysts say that prices have not hit the bottom just yet, with demand likely to ease in coming weeks, especially with refiners beginning to shut for routine spring maintenance.

A further fall in prices “cannot be excluded”, Commerzbank analyst Carsten Fritsch told Reuters Global Oil Forum. He warned that USD 25 a barrel “is quite possible, but not much lower than that.”

Commerzbank cut its 2016 forecast for oil prices, changing its year-end expectation for Brent to USD 50 per barrel, down from a previous forecast of USD 63.

The oil price collapse has hammered currencies from commodity-producing nations and spooked financial markets as investors worry about the health of the global economy.

Still, influential US bank Goldman Sachs on Friday maintained its USD 40 price forecast for US crude for the first half of 2016.

“The key theme for 2016 will be real fundamental adjustments that can rebalance markets to create the birth of a new bull market, which we still see happening in late 2016,” Goldman 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

 Daily Newsletter

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

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

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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
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
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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

Oil drops below $30 as Iran supply fears mount

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

 Listen to the Article (6 Minutes)

Summary

Brent is currently around 54 percent lower than its 2015 high while WTI is off around 48 percent from its peak last year

Oil prices hit fresh multi-year lows Friday amid fears of what effect Iran flooding the market with crude will have on the commodity.

Iran is on track to ship 1.10 million barrels a day in January, a 20 per-cent rise on December, according to Reuters reports.

The price of both Brent and WTI dipped below 30 dollars a barrel Friday as the market braced itself for the additional supply.

Brent is currently around 54 percent lower than its 2015 high while WTI is off around 48 percent from its peak last year.

And at least one analyst believes the falling price isn’t about to be checked by oil producers’ cartel, OPEC.

“If you’re asking me at what level will OPEC stop production, then I would say much lower than this,” said Abhishek Deshpande, analyst at Natixis, told CNBC Friday.

Deshpande added that even calls as low as $10 a barrel could have some merit.

“You see people looking at technical levels of $26 because this compares to past trades. But even those analyst calls of $20 and even $10 a barrel are based on technical levels,” he said.

Commodity analysts expect a drop in oil prices as US and European sanctions imposed on Iran when it refused to scale back its nuclear proliferation are lifted and a fresh agreement begins.

“When completion of the deal is announced, the oil markets could see an immediate knee-jerk reaction to the downside” said Societe Generale in a note on Wednesday.

The Tehran government said Wednesday that the International Atomic Energy Agency (IAEA) was set to confirm the country has met its obligations to ensure a lifting of sanctions by Friday.

“The IAEA will issue its final report on Friday to confirm Iran has met its commitments under the JCPOA (Joint Comprehensive Plan of Action),” Deputy Foreign Minister Abbas Araqchi said Wednesday according to a number of media reports.

The plan of action, is an international agreement setting out the terms of Iran’s nuclear program.

Iran has told Reuters Thursday final steps were taking place and it’s now ready for an agreement.

“The core vessel of the Arak reactor has been removed…and IAEA inspectors will visit the site and report it to the IAEA,” the Atomic Energy Organization of Iran said.

Tehran expects sanctions could be lifted before Monday next week and that means the Islamic republic can turn the oil taps back on.

Iran has the fourth-largest oil reserves in the world and the International Energy Agency believes it could add as much as half a million barrels per day to exports as soon as sanctions are lifted.

In an already oversupplied market this could help push down an already plummeting oil price.

“There’s not been an accommodation possible in OPEC…Saudi Arabia and the Gulf countries are not going to cut back, to make room for Iran coming back into the market,” IHS vice chairman of consultancy Dan Yergin told CNBC on Wednesday.

However Jason Gammel, equities analyst at Jefferies told CNBC that a meaningful further drop is unlikely, even allowing for the added Iranian supply.

“We are starting to reach the stage where we start to cause interruptions to the physical supply of oil, so I do think the price needs to come up from where it is,” said Gammel on Thursday.

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
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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?

Dow briefly plunges 400 points after data, oil rout

US stocks traded sharply lower Friday after a slew of disappointing US data, a fresh plunge in oil to below USD 30 a barrel and a sell-off in Chinese stocks that added to mounting concerns about slowing global growth.

The Dow Jones industrial average traded about 330 points lower. Earlier, the index briefly fell more than 400 points in morning trade to dip below the psychologically key 16,000 level.

Financials led decliners in the S&P 500 as the major averages held about 2 percent lower.

“Obviously it started with growth concerns overseas and now we’re (hitting) ourselves with the same growth concerns as retail sales were weak and Empire manufacturing that collapsed,” said Peter Boockvar, chief market analyst at The Lindsey Group.

Dow futures briefly fell 400 points and the 10-year Treasury yield dipped below 2 percent after retail sales declined 0.1 percent in December. Ex-autos, retail sales also fell 0.1 percent.

US crude oil traded about 5 percent lower ahead of the US market open, below $30 a barrel to hit its lowest in more than 12 years. Brent crude was also sharply lower below $30 a barrel.

The January Empire manufacturing was minus 19.4.

The Producer Price Index fell 0.2 percent in December after rising 0.3 percent in November.

Industrial production for December fell 0.4 percent. Capacity utilization was 76.5 percent. Consumer sentiment and business inventories are set to come out at 10:00 a.m. Friday also marks an options expiration day that could bring more volatility.

New York Federal Reserve President William Dudley said that future rate hikes depend on data and that rates are set to continue on gradual upward path. He added that overseas economies pose risk to the United States and there’s little change in outlook since the Fed meeting.

Core inflation is quite stable despite lower energy, Dudley said, noting 2016 growth is to be slightly above 2 percent.

The Shanghai Composite fell about 3.5 percent. European stocks were down more than 2.5 percent in morning trade ET.

The U.S. dollar index was down more than half a percent. The euro was at 1.09 and the yen at at 116.8 yen against the greenback.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, topped 28.5 to hit its highest since September in morning trade.

The Dow Jones Industrial Average traded down 347 points, or 2.13 percent, at 16,027, with Intel leading all constituents lower.

The S&P 500 traded down 41 points, or 2.21 percent, at 1,879, with financials leading all 10 sectors lower.

The Nasdaq composite fell 110 points, or 2.40 percent, to 4,506.

About 13 stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 199 million and a composite volume of 423 million in morning trade.