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Japan September core CPI falls 0.1% on year

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

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Summary

The core consumer price index, which includes oil products but excludes fresh food prices, was more than economists’ median estimate for a 0.2 percent annual gain.

Japan’s core consumer prices fell 0.1 percent in September from a year earlier, government data showed on Friday.

The core consumer price index, which includes oil products but excludes fresh food prices, was more than economists’ median estimate for a 0.2 percent annual gain.

The so-called core-core inflation index, which excludes food and energy prices and is similar to the core index used in the United States, rose 0.9 percent in the year to September.

Core consumer prices in Tokyo, available a month before the nationwide data, fell 0.2 percent in October from a year earlier, versus a 0.1 percent annual fall seen by analysts in a Reuters poll.

Separately, Japanese household spending fell 0.4 percent in September from a year earlier in price-adjusted real terms,government data showed on Friday.

The fall compared with the median estimate of a 1.2 percent increase in a Reuters poll of economists.

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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VW excess emissions linked to 60 US deaths: Study

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

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Summary

By installing sophisticated software known as “defeat devices” in its diesel vehicles, Volkswagen’s cars have emitted 40 times the amount of noxious nitrogen oxide (NOx) than the limit proscribed by the US Environmental Protection Agency, the report published Thursday said.

Volkswagen’s rigging of its diesel cars to cheat on emissions tests could cause around 60 deaths in the US by the end of next year, according to research by scientists at Harvard University and the Massachusetts Institute of Technology.

By installing sophisticated software known as “defeat devices” in its diesel vehicles, Volkswagen’s cars have emitted 40 times the amount of noxious nitrogen oxide (NOx) than the limit proscribed by the US Environmental Protection Agency, the report published Thursday said.

“We all have risk factors in our lives, and [excess emissions] is another small risk factor,” said Steven Barrett of MIT, one of the authors of the report, in a statement. “If you take into account the additional risk due to the excess Volkswagen emissions, then roughly 60 people have died or will die early, and on average, a decade or more early.”

The healthcare sector will also be impacted, according to the study, with “approximately 31 cases of chronic bronchitis, 34 hospital admissions, 120,000 minor restricted activity days, 21,000 lower respiratory symptom days, and 33,000 days of increased bronchodilator usage”.

The study also estimated that the cost of these deaths to the economy was about USD 450 million, an amount that would increase to USD 910 million if there was no recall of the offending vehicles.

VW’s US division had not responded to requests for comment at the time of publication.

The German automaker was forced to take its first quarterly loss in 15 year, some 3.5 billion euros (USD 3.84 billion), as it anticipated hefty payouts to consumers around the world over the deceptive data, as well as the potential recall of 11 million cars. The third-quarter results, released Wednesday, factored in a 6.7 billion-euro writedown related to the scandal.

Also Wednesday VW’s new chief executive, Herbert Diess, apologized at the Tokyo Auto Show for the cheating scandal, promising to win back customer trust.

“On behalf of my entire company, I’d like to apologize,” said Diess, a recent hire from BMW. “We are doing everything we can to bring back this trust in our brand.”

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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Asian shares lackluster ahead of BOJ decision

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

 Listen to the Article (6 Minutes)

Summary

Asian shares posted a lackluster open on Friday, with Australia’s S&P ASX 200 index hitting its lowest level since October 21, following an uninspiring handover from offshore markets.

Asian shares posted a lackluster open on Friday, with Australia’s S&P ASX 200 index hitting its lowest level since October 21, following an uninspiring handover from offshore markets.

Traders were also likely waiting on the sidelines ahead of the Bank of Japan’s (BOJ) monetary policy decision.

Major US averages finished lower overnight, with the Nasdaq Composite leading declines with a 0.4 percent fall. The blue-chip Dow Jones Industrial Average ticked down 0.1 percent, while the S&P 500 ended little changed.

Nikkei flat

Japan’s Nikkei 225 index flip-flopped in early trade, as investors digested the slew of monthly indicators released before the market open.

The core consumer price index, which includes oil products but excludes fresh food prices, dipped 0.1 percent in September from the year-ago period, official data showed, worse than expectations for a 0.2 percent annual gain.

Household spending for September fell 0.4 percent on-year, against Reuters’ estimate for a 1.2. percent rise. Meanwhile, the jobless rate for September was unchanged from the previous month at 3.4 percent, in line with expectations.

Despite slowing inflation in the world’s third-biggest economy, not all analysts expect the BOJ to step on the easing pedal.

“With the BOJ’s easing options limited under the existing monetary policy framework and uncertainties rising over the timing of the Federal Reserve’s lift-off, we believe the central bank has every reason to prefer a hold and preserve its bullets,” a Thursday note from HSBC said.

On the corporate earnings front, Sony shed 0.4 percent despite announcing a second-quarter operating profit on the back of strong PlayStation 4videogame sales.

Baby goods makers got a lift from news of the easing of family planning restrictions in China. Pigeon jumped over 10 percent to its highest since August 20, while Kao rose 3.7 percent.

China markets lower

China’s benchmark Shanghai Composite index ticked down 0.2 percent.

Among other indexes, the blue-chip CSI300 traded flat, while the Shenzhen Composite edged down 0.2 percent.

In Hong Kong, China Huarong Asset Management opened flat in its stock market debut after raising $2.3 billion in the city’s largest initial public offering (IPO) in 2015. The stock traded at its IPO price of HK$3.09.

The Hang Seng index dropped 0.7 percent.

ASX drops 0.7 percent

Australian equities touched their lowest levels since October 21, with banks, miners and gold producers among the hardest-hit. The Sydney bourse was on course for its fifth straight session of losses on Friday.

Australia and New Zealand Banking slid 3.7 percent, while Westpac, Commonwealth Bank of Australia and National Australia Bank dropped between 0.6 and 1.6 percent.

Market bellwether BHP Billiton declined 1.5 percent, while Evolution Mining and Newcrest Mining tanked 3.4 and 1.9 percent respectively after prices of the precious metal hit three-week lows overnight.

Macquarie Group outperformed after unveiling a record first-half net profit. Shares of the investment bank advanced 1 percent.

Bega Cheese and Blackmores diverged following news of a joint-venture deal to produce infant formula. Shares of the former rallied more than 3 percent, while the latter slumped 9.1 percent probably on profit-taking after surging almost 30 percent in the prior trading session.

IG’s market strategist Evan Lucas expects both firms to benefit from the end of China’s one-child policy. “Bega Cheese and Blackmores could not have timed their strategic joint venture announcement better if they tried. The expected boom in babies in China in the next 18 months will almost perfectly coincide with the launch,” the Melbourne-based analyst wrote in a note released early Friday.

Kospi flat

South Korea’s Kospi index treaded water at the open.

Samsung Electronics charged up more than 2 percent, a day after rising 1.3 percent on the back of its first year-on-year profit in two years.

Other blue chips, however, kicked off trade on the back foot. Hyundai Motor and Posco fell 0.7 and 1.9 percent respectively.

On the domestic data front, industrial production rose by a seasonally adjusted 1.9 percent in September from the previous month, official data showed on Friday, gaining for a second month and far outperforming market expectations for a 0.4 percent increase.

Taiex drops 0.5 percent

Advance estimate of gross domestic product (GDP) showed Taiwan’s economy contracting 1.01 percent from a year ago, worse than the 0.6 percent decline forecast in a Reuters poll. It was the first year-on-year decline in quarterly GDP since the global financial crisis in 2009.

Taiwan’s weighted index notched down in early trade.

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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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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Deutsche Bank to shed 35,000 jobs, exit 10 countries

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

 Listen to the Article (6 Minutes)

Summary

The bank will withdraw from Argentina, Chile, Mexico, Uruguay, Peru, Denmark, Finland, Norway, Malta and New Zealand.

Deutsche Bank on Thursday said it would reduce its workforce by some 9,000 full-time jobs by 2020 and close operations in 10 countries.

About 6,000 external contractor positions will also be scrapped by 2020. In addition, the bank plans to dispose of assets with a total cost base of approximately 4 billion euros and 20,000 jobs over the next 24 months. Those assets include its Postbank retail bank.

The bank will withdraw from Argentina, Chile, Mexico, Uruguay, Peru, Denmark, Finland, Norway, Malta and New Zealand.

New chief executive John Cryan told a press conference Germany continued to be the bank’s most important market.

The bank also wants to halve the amount of clients it has in its global markets and investment banking business.

In the heavily anticipated strategy update, Deutsche Bank said it wanted to focus on the markets, products, and clients where it was positioned to succeed.

It also plans to modernize its outdated and fragmented technology and withdraw from higher-risk locations. The plan also aims to see the bank becoming better capitalized, “so that we are no longer playing catch-up with regulation and market expectations”.

Earlier, the bank reported a net loss of 6 billion euros (USD 6.56 billion), slightly less wide than it had previously warned amid continued litigation and impairment charges, as new chief executive John Cryan tries to turn around the German lender.

The group had already announced it expected an after-taxes loss of 6.2 billion euros for the third quarter due to writedowns at its investment banking unit and its Postbank retail bank.

The bank said its profit and revenue were impacted by a series of charges totaling 7.6 billion euros, also announced earlier this month. Deutsche Bank said its litigation reserves increased by 1 billion euros to 4.8 billion euros.

“In the third quarter 2015 we reported a record net loss – a highly disappointing result that was largely driven by items we had already flagged earlier in October,” CEO John Cryan said in a press release,

The earnings come after Deutsche Bank announced it would scrap its 2015 and 2016 dividend to boost the bank’s performance and tackle a number of regulatory challenges. Deutsche Bank said it aimed to resume dividends after this period “at a competitive payout ratio”.

“You had a clear capital challenge at Deutsche, it’s been heavily criticized…I think John Cryan has a track record of being an executive who believes in the validity of having very strong capital ratios and leverage ratios,” Philippe Bodereau, global head of financial research at PIMCO, told CNBC.

“I’m not surprised that he would have come up with more aggressive targets and to achieve that without raising equity something’s got to give and that’s what’s got to give.”

Revenues in the third quarter came in at 7.3 billion euros, down 7 percent year-on-year, hit by a 649 million euro impairment on the bank’s stake 19.99 percent stake in Hua Xia Bank. But revenues at its corporate banking and securities division hit 3.2 billion euros, a 2 percent year-on-year rise, softening the blow somewhat. This was helped by a 20 percent surge in debt sales and trading revenues.

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
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Should Elon Musk be able to buy Twitter?

Republican debate: Here’s who won…and who lost

Two old friends finally dropped the gloves. Others spent time trying to show up each other with a variety of “the only candidate to” do such and such claims. One of the front-runners seemed to barely show up at all.

With much of the crowded Republican presidential field in danger of becoming irrelevant, Wednesday’s debate offered an important opportunity to shine.
Some, however, just seemed to fade farther away.

Viewers of the debate, hosted by CNBC, got treated to a spirited exchange that at times saw the candidates tearing at each other and at others united against two common goals: Democratic front-runner Hillary Clinton and a media they insisted is biased against the GOP.

In all, the night featured a decided set of winners and losers, built on moments golden and not-so-golden. A rundown:

ROCK ‘N’ ROLL RUBIO: The senator from Florida faced some fundamental character questions, namely about the votes he’s missing while campaigning, and some personal finance missteps. Each time, Rubio deflected the challenges and focused on issues.

“I’m not worried about my finances,” he said in one exchange. “This debate needs to be about the men and women across this country who are struggling on a daily basis to provide for their families a better future that we always said this country is about.”

“I still feel strongly the star of the night was Rubio. I think he did really well,” said Greg Valliere, chief global strategist at Horizon Investments. “He was quick to come back on this charge by Jeb (Bush) he should resign. Whenever he talks about his family narrative he seems to have a more upbeat message, more Reaganesque, not negative.”

Score Rubio a winner.

Read More: Rubio: Bring back vocational schools

PAGING DR. CARSON: A recent CBS/New York Times poll has Carson leading the field, sending Donald Trump into second place for the first time in months. At the outset of the debate, Carson promised to follow Ronald Reagan’s 11th commandment: Thou shalt not speak ill about other Republicans.

Carson, though, took the admonition to an extreme, refusing to take the bait on multiple occasions to at least set himself apart from the field. Moreover, at one point, he took a softball question about whether government should clamp down on pharmaceutical companies that gouge on prescriptions and turned it into an academic discussion on overregulation. Trump has recently taken to calling Carson “low energy,” the same as Bush. It was hard to dispute that on the debate stage.

Score Carson a loser.

CANTANKEROUS CRUZ: Sen. Ted Cruz has never been one to shy away from speaking his mind, but he seemed especially on point Wednesday. He was able to drive home how his own background helps him understand the plight of middle America. He also scored comity points by joining Rand Paul in wanting to audit the Federal Reserve, while striking a chord with the hard right on his desire to eliminate the IRS.

Score Cruz a winner.

COMBATIVE CHRISTIE: New Jersey Gov. Chris Christie was forceful and erudite in hitting a core GOP value — crime — as well as a non-core value of developing alternative energy, particularly solar. And he was one of a multitude of voices that lashed out at debate moderators for being either overly aggressive in their questioning or not focusing as clearly on the issues.

Read More: Christie: We should invest in all types of energy

In response to a discussion about fantasy football regulation, Christie ranted, “We have USD 19 trillion in debt, we have people out of work, we have ISIS and Al-Qaeda attacking us, and we’re talking about fantasy football? How about we get the government to do what we’re supposed to be doing?”

Cruz earlier used a question on the debt ceiling to rip the debate panel, saying, “the questions that have been asked so far in this debate illustrate why the American people don’t trust the media. This is not a cage match.” Rubio pounced as well, accusing the media in general of being a “super PAC” for Clinton.

Score Christie a winner and likely the only back-of-the-pack candidate with a chance, albeit low, to move up in the field.

TRUTH-CHALLENGED TRUMP: The Donald was there with all of his home-run lines about making the US more competitive against China, Japan and Mexico. But all the notes he hit were familiar ones. Then, when challenged with statements he made in the past about making life tougher for immigrant workers, he denied criticizing Facebook founder Mark Zuckerberg, despite this published report and statements on his own web site to the contrary.

Score Trump neutral.

Read More: Trump: Only in favor of legal immigration

BELOW-THE-RADAR BUSH: The former Florida governor needed to deliver a knockout punch to re-establish himself at the front of the field. He did little to make that happen. He did, however, engage in one of the more memorable moments of the night. He and Rubio have been friends for years, with the latter calling Bush a mentor. That may have ended for good Wednesday.

“Marco, when you signed up for this, this was a six-year term and you should be showing up to work. What is it, like a French work week?” Replied Rubio: “Someone has convinced you that attacking me is going to help you.” Ouch.

Score Bush a loser and the Bush-Rubio friendship a loser as well.

Read More: Jeb to Rubio: You should show up to work or resign

THE FORLORN FIELD: The rest of the group — Mike Huckabee, Rand Paul, Carly Fiorina and John Kasich each had moments and didn’t do anything necessarily to hurt their chances, but also did nothing likely to get them into the front of the pack. Losers, all.

 5 Minutes Read

Deutsche scraps dividend to boost capital in clean-up

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

 Listen to the Article (6 Minutes)

Summary

Deutsche Bank said on Wednesday it was targeting a reduction of its risk-weighted assets to about 320 billion euros (USD 349 billion) by end-2018 from 416 billion euros at the end of June – towards the top end of analysts’ expectations.

Deutsche Bank said it would sacrifice its 2015 and 2016 dividends as new chief executive John Cryan seeks to bolster the bank’s capital and retain money to pay for sins of the past.

Cryan is under pressure to overhaul Germany’s biggest bank, with costly litigation from past scandals and fallout from a market rout in Asia pushing its valuation well below rivals.

Deutsche Bank said on Wednesday it was targeting a reduction of its risk-weighted assets to about 320 billion euros (USD 349 billion) by end-2018 from 416 billion euros at the end of June – towards the top end of analysts’ expectations.

“The plan is based on the elimination of the Deutsche Bank common share dividend for the fiscal years 2015 and 2016,” it said in a statement, adding that it aimed to resume paying dividends thereafter “at a competitive payout ratio”.

Ever since its post-World War Two reestablishment in 1952, Deutsche Bank has always paid a dividend.

Earlier this month, the lender announced it would split its investment bank in two and part ways with three of its eight management board members.

The bank also said it was aiming to bring down adjusted non-interest expenses to less than 22 billion by 2018 from 23.8 billion euros in 2014, and to reduce its cost/income ratio to 70 percent in 2018 from 84.3 percent at the end of June.

Read More: US escalates Deutsche Bank probe into Russian trades

By comparison, peers Barclays, Credit Suisse and UBS, which are also cutting costs and devising new strategies, currently only spend 64 to 77 cents to earn a euro.

Other major international banks such JP Morgan or UBS made swifter changes to their strategies to address persistently low interest rates and tighter regulation after the financial crisis.

As part of the revamp, Deutsche aims to cut about 23,000 jobs, or roughly a quarter of its workforce, by reducing technology activities and spinning off its PostBank unit, people familiar with the matter told Reuters last month.

Read More: Deutsche Bank to restructure business, part ways with key execs

Cryan said earlier this month a record pretax loss of 6 billion euros in the third quarter would also mean that staff will get lower bonuses.

While Credit Suisse, which also intends to slim down its investment bank, plans to raise 6 billion Swiss francs (USD 6 billion) from investors to bolster capital, Deutsche Bank has not so far signaled it is considering such a step.

The capital hike will bring Credit Suisse’s capital ratio to 12.2 percent, while UBS had 14.4 percent at the end of June and the average for Europe’s 24 biggest banks was 13.2 percent, lifted by high levels at Nordic lenders.

Deutsche Bank is targeting a capital ratio of at least 12.5 percent and a leverage ratio of at least 4.5 percent from the end of 2018. At the end of June, the respective readings were 11.4 percent and 3.6 percent.

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
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 5 Minutes Read

Rebound in Japan’s industrial output eases pressure on BOJ

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

 Listen to the Article (6 Minutes)

Summary

The turnaround reduces pressure on the Bank of Japan to expand its already massive stimulus program as early as Friday, although it is expected to slash its rosy economic and price growth forecasts.

Japanese factory output rose 1.0 percent in September after two straight months of declines and manufacturers expect further gains in October – suggesting the economy is emerging from the doldrums as the effects of China’s slowdown begin to abate.

The turnaround reduces pressure on the Bank of Japan to expand its already massive stimulus program as early as Friday, although it is expected to slash its rosy economic and price growth forecasts.

Thursday’s strong result from the Ministry of Economy, Trade and Industry confounded the median market forecast for a 0.5 percent drop and followed a 1.2 percent slide in August.

Manufacturers’ surveyed by the ministry expect output to rise 4.1 percent in October and slip 0.3 percent in November.

“Industrial output is moving sideways,” the ministry said, revising up its assessment from last month, when it said production was weakening.

Factory output is among key data the BOJ scrutinizes when gauging economic trends. The central bank has said export and output growth remains flat, but it is expected to pick up as global demand recovers.

Read More: IMF: Japan needs sales tax hike for fiscal sustainability

Many analysts, though, say any rebound in economic activity will be too modest to accelerate inflation toward the BOJ’s ambitious 2 percent target next year.

In a semi-annual outlook report due on Friday, the BOJ is likely to cut its growth and inflation forecasts for the current fiscal year, sources say, but will make only minor reductions to its price estimate for next year.

That may allow the BOJ to justify holding off from expanding stimulus on Friday, though some policymakers worry that soft exports will hurt corporate sentiment and so delay capital investment.

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
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?

 5 Minutes Read

Asian stocks mostly higher after Fed holds rates steady

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

 Listen to the Article (6 Minutes)

Summary

Asian stocks mostly advanced on Thursday, encouraged by a stronger finish on Wall Street following the Fed’s decision to leave interest rates near zero.

Asian stocks mostly advanced on Thursday, encouraged by a stronger finish on Wall Street following the Fed’s decision to leave interest rates near zero.

Major US averages surged more than 1 percent overnight, after the Fed kept rates unchanged but signaled that a December rate hike was still on the table. The Nasdaq Composite led gains with a 1.3 percent rise, while the Dow Jones Industrial Average and S&P 500 closed up 1.1 and 1.2 percent respectively.

“The market, economists, commentators and the man on the street has combed over all aspects of the Fed statement, and it seems all have concluded that the Federal Open Market Committee (FOMC) will follow through with its commitment to raise rates at the December meeting. It’s really the only conclusion you can draw from an almost nonchalant statement,” IG’s market strategist Evan Lucas wrote in a note.

Nikkei adds 0.2 percent

Japan’s Nikkei 225 index extended gains following the release of September industrial output, which suggested that the world’s third-biggest economy is embarking on a recovery.

Industrial production rose 1.0 percent on-month in September, official data showed early Thursday, beating expectations for a 0.5 percent drop. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to rise 4.1 percent in October and shrink 0.3 percent in November, data showed.

Among gainers, heavyweight components SoftBank and Fanuc tacked on 2.1 and 3.4 percent respectively, while export-oriented plays such as Komatsu and Sony piled on more than 2 percent each.

However, sharp losses in securities firms limited the bourse’s advances. Nomura Holdings and Daiwa Securities plunged 4.8 and 3 percent respectively. Japan Aviation Electronics slumped 10.3 percent.

China stocks up

Share markets in China rebounded on Thursday, with the key Shanghai Composite up 0.6 percent.

Among other indexes, the CSI300 notched up 0.6 percent while the Shenzhen Composite rallied 1 percent.

Kospi gains 0.7 percent

South Korea’s Kospi index headed north, thanks to a jump in Samsung Electronics.

Shares of the tech giant surged as much as 6.4 percent to 1,392,000 won – its highest since May 4 – after announcing its first year-on-year profit gain in eight quarters, on the back of strong chip sales and a modest pickup for its smartphone business. Third-quarter operating profit jumped 82 percent to 7.4 trillion won (USD 6.46 billion), compared with its guidance for 7.3 trillion won in early October. Revenue rose 8.9 percent to 51.7 trillion won.

In addition, Samsung is planning to buy back 11.3 trillion won of its own shares.

LG Electronics edged up 0.4 percent ahead of its quarterly results.

ASX eases 0.4 percent

Australia’s S&P ASX 200 index surrendered early gains to nudge down below the flatline.

Australia and New Zealand Banking Group (ANZ) eased 0.8 percent after a brief positive start, as the lender posted its lowest growth in annual profit since the global financial crisis prior to the market open.

Among other decliners, heavyweight Telstra dropped 1.1 percent, while a 1 percent drop in gold prices led Newcrest Mining and Evolution Mining down more than 5 percent each.

Energy counters rose along a rebound in crude oil prices overnight; Santos and Woodside Petroleum climbed 2.5 and 1.2 percent respectively, while Oil Search edged up 0.2 percent.

Elsewhere in the region, the Reserve Bank of New Zealand (RBNZ) kept its benchmark interest rate steady at 2.75 percent on Thursday, in line with expectations. Kiwi shares ticked up 0.2 percent, but the New Zealand dollar fell against the U.S. dollar to as low as USD 0.6660, but has since recovered to USD 0.6673.

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?

Fed holds steady; few clues about future rate hike

The Federal Reserve on Wednesday again passed on enacting its first interest hike in more than nine years and left few clues as to when a move would come.

As expected, the Federal Open Market Committee voted to maintain its zero interest rate policy, citing weakness in exports and soft inflation as reasons to continue its historically easy monetary policy. The FOMC vote had just one dissent, from Jeffrey Lacker, who wanted to see the Fed enact a quarter-point hike.

Markets had been looking for the Fed to stay accommodative, particularly in light of recent dovish comments from multiple governors, Daniel Tarullo and Lael Brainard among them, who said publicly that the timing wasn’t right for an increase.

The initial market reaction was that the statement was at least moderately more hawkish, with some focusing on language indicating the factors the Fed will consider “in determining whether it will be appropriate to raise the target range at its next meeting.”

However, beyond that there was little to chew on.

“The Fed continues to find more and more ways to say virtually nothing to the market,” said Michael Arone, chief investment strategist for the US Intermediary Business Group at State Street Global Advisors. “They want to keep their options open for December, but it’s a nondescription of more of the same thing.”

The decision comes amid multiple data points that show a weakening in the economy, particularly in job gains and exports. Inflation measures the Fed follows also reflect little in the way of wage and price pressures, while economists are anticipating a muted holiday shopping season.

The latest statement included only a modest change in the boilerplate language common in Fed communiques. It actually upgraded the progress of household spending and fixed income from “increasing moderately” to “solid” but added some language reflecting a recent softness in job creation.

“The pace of job gains slowed and the unemployment rate held steady,” the statement read.

What’s the market doing now?

However, for those looking to parse the statement for indications about when a rate hike would happen, the latest Fed language offered little.

The statement reiterated September’s introduction of language that showed the central bank is “monitoring global economic and financial developments,” but added little more.

The Fed last raised the funds rate June 29, 2006, then began cutting on Sept. 18, 2007, as the global financial crisis began to steepen. On Dec. 16, 2008, the FOMC then took the rate down to a 0-0.25 percent range where it has stayed since.

Market participants had been expecting the committee to raise rates right up through August, then changed course as the economy weakened, the stock market plunged into correction territory and fears escalated that global weakness would spread.

In the meantime, job creation cooled considerably, with the most recent US nonfarm payrolls report coming in at just 142,000 new positions in September and prior months’ reports revised lower. Gross domestic product growth is expected to be near 1.5 percent for the third quarter, with CNBC’s Rapid Update tracker putting the figure at 1.7 percent.

Traders have adjusted their expectations, with a CME futures gauge now putting the most likely chance for a hike in March 2016.

Uncertainty over the Fed’s direction has contributed to market volatility, though stocks have been on the rise since late September.

 5 Minutes Read

Steel demand ‘evaporating at unprecedented speed’

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

 Listen to the Article (6 Minutes)

Summary

Steel prices have held at USD 170 per ton since October 8, having fallen sharply over the last year from above USD 400 per ton.

The steel industry’s dire straits are in the spotlight this week, with both China and the UK warning about the hit from the dramatic slump in demand, particularly from the world’s second-biggest economy.

Steel prices have held at USD 170 per ton since October 8, having fallen sharply over the last year from above USD 400 per ton.

The World Steel Association forecasts that global steel demand will decrease by 1.7 percent in 2015, before growing by 0.7 percent in 2016. However Chinese demand is seen falling both this year and next, by 3.5 percent and 2 percent respectively, following a demand peak in 2013.

On Wednesday, the deputy head of the China Iron and Steel Association warned that demand for the ferrous metal was waning fast.

“China’s steel demand evaporated at unprecedented speed as the nation’s economic growth slowed. As demand quickly contracted, steel mills are lowering prices in competition to get contracts,” Zhu Jimin, deputy head of the China Iron & Steel Association, said on Wednesday at a briefing in Beijing, according to Bloomberg.

His words came after UK parliament held a special committee on Tuesday to discuss how to support the British steel industry, which was described as “facing terminal decline.”

The (£1.7 billion) USD 2.6 billion steel industry is of declining importance to the U.K. economy, but still employed 34,500 people in 2014. However, several steel plants — largely located in the comparatively poor regions of Yorkshire, the Humber and Wales — have announced job cuts in recent months. Sahaviriya Steel Industries’ major steel plant in North East England is set to close, resulting in the loss of up to 1,700 jobs.

“The UK’s steel industry has been dealt a series of major blows in recent weeks and months. It is facing terminal decline, even though it is an essential foundation for other parts of our economy like aerospace, construction and automotives,” Iain Wright, the politician chairing the business, innovation and skills committee for the UK Parliament, said on Tuesday.

The slump in steel prices can be attributed to the broader rout in metals and other commodities over the last 12 months, as well as the ramp up in world steel production this millennium.

Total world steel production almost doubled between 2000 and 2014, mostly driven by increases in Chinese output, according to a UK parliamentary briefing paper. Growth in production has slowed considerably since then, but this has proved insufficient to compensate for the slump in demand.

In the case of China, heavy investment in infrastructure in the last decade raised demand for industrial goods like cement and steel, encouraging manufacturers to expand production capacity. However, capacity now exceeds demand in several sectors, with steel, cement, aluminum, glass panels and shipping among those affected.

“Resolving overcapacity is not an easy task: It may be unfeasible to halt planned or in-progress projects and reducing capacity may mean job losses and risk social unrest,” Alberto Gallo, head of macro credit research at Royal Bank of Scotland, said in a research note on Monday.

Stocks of major steel producers around the world have slumped this year. Frankfurt-listed shares of ArcelorMittal are down 69 percent since the start of 2015, while U.S. Steel Corporation has plunged 60 percent.

In addition, China’s state-owned Sinosteel delayed an interest payment due on 2 billion yuan (USD 0.3 billion) of 5.3 percent notes last week, highlighting the difficulties facing Chinese steel, coal mining and shipbuilding companies.

“While Sinosteel’s potential default is reflective of the growing inefficiency of state-owned enterprises, it also points to slowing local demand as China continues its transformation into a consumption-based economy,” Gallo 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

 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?