Morning News Call - India, January 12

Last Updated: Thu, Jan 12, 2017 09:00 hrs

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_01122017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 10:00 am: Insolvency and Bankruptcy Board Chairman M.S. Sahoo, State Bank of India Deputy Managing Director Pallav Mohapatra at conference on Insolvency and Bankruptcy Code 2016 in Kolkata. 11:00 am: Finance Ministry officials to meet Parliamentary standing Committee on Finance in New Delhi. 5:30 pm: Government to release December consumer price inflation data in New Delhi. 5:30 pm: Government to release November industrial output data in New Delhi. LIVECHAT-CHINA BAD DEBTS Michael Pettis, senior fellow with Carnegie Asia Program, finance professor at Peking University's Guanghua School of Management China is poised to take a deleveraging approach this year to bring down its debt level, which some peg at about 250 percent of GDP. At 12:00 pm, Pettis will talk about the potential impacts from this deleveraging and the chances whether it would be successful. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS  Amazon halts sales of Indian flag doormat after visa threat Amazon.com removed doormats resembling the Indian tri-colour flag from its Canadian website on Wednesday, after an Indian government threat to rescind visas of the U.S. company's employees if they did not stop selling the product.  Central bank chief urges government to cut borrowing Reserve Bank of India Governor Urjit Patel urged the government on Wednesday to show some progress in cutting high federal and state government borrowing, just weeks before Prime Minister Narendra Modi's administration is due to unveil its annual budget.  Supreme Court throws out case alleging Modi took cash payments India's Supreme Court on Wednesday threw out a case brought by an anti-corruption lawyer that accused Prime Minister Narendra Modi of accepting suspicious cash payments, dealing a blow to an opposition leader who had latched on to the case.  Inflation seen cooling in December as cash crunch hit demand Inflation in India is expected to have cooled to a two-year low in December as the government's surprise currency crackdown rattled the economy and severely hurt consumption, a Reuters poll found.  Mistry asks Indian tribunal to block his removal from Tata Sons board Cyrus Mistry, the ousted chairman of India's Tata Sons, sought to block the company from removing him from its board in a petition filed with a national tribunal on Wednesday.  Mahindra group wants to foster in-house start-ups -Chairman India's autos-to technology conglomerate Mahindra wants to spur a greater start-up culture within the group, looking to foster new businesses which will compliment its existing products and services.  Demonetization to hold back India's 2017 fuel demand growth India's fuel demand growth is expected to slow by as much as 40 percent in 2017 from last year as a government-induced cash shortage hurts businesses, industry and car sales.  Saudi keeps Feb oil exports steady to most buyers in Asia; cuts India, Malaysia Saudi Arabia has cut February term crude supplies to refiners in India and Southeast Asia, seeking to comply with an OPEC deal, but it has held most of its exports to the rest of Asia steady for a second month, industry sources said on Wednesday. GLOBAL TOP NEWS  Trump accuses U.S. spy agencies of Nazi practices over 'phony' Russia dossier President-elect Donald Trump escalated a fight with U.S. spy agencies on Wednesday, just nine days before he takes over their command as president, and accused them of practices reminiscent of Nazi Germany.  Samsung leader Lee arrives for questioning by prosecutors Samsung Group leader Jay Y. Lee arrived at the South Korean special prosecutor's office for questioning over bribery suspicions as part of a widening influence-peddling scandal that may permanently unseat President Park Geun-hye.  U.S. indicts six as Volkswagen agrees to $4.3 bln diesel settlement Volkswagen AG has agreed to pay the largest ever U.S. criminal fine levied on an automaker to settle charges that it conspired for nearly 10 years to cheat on diesel emission tests, while prosecutors on Wednesday charged six current and former senior VW executives for their roles in the scheme. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures was trading at 8,424.00, trading up 0.3 pct from its previous close.  The Indian rupee will likely open higher against the dollar, tracking its Asian peers, as U.S. President-elect Donald Trump did not elaborate on his fiscal spending plans at a keenly-watched press conference yesterday, dampening demand for the greenback.  Indian sovereign bonds are poised to rise, as U.S. President-elect Donald Trump's maiden press briefing yesterday did not elaborate on his pre-poll promises of expansionary policies that would warrant a tighter monetary policy in the world's largest economy. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.36 pct-6.42 pct band today. The bond had closed at 104.11 rupees, yielding 6.39 pct, yesterday. GLOBAL MARKETS  U.S. stocks ended higher after a choppy day on Wednesday as energy and technology gains countered a drop in healthcare stocks after President-elect Donald Trump said pharmaceutical companies were "getting away with murder" by charging high prices.  The U.S. dollar nursed widespread losses after President-elect Donald Trump's long-awaited news briefing provided scant clarity on future fiscal policies, disappointing bulls wagering on major stimulus.  U.S. Treasury debt yields fell on Wednesday with benchmark yields briefly touching the lowest in a month following stellar demand at a 10-year note sale, while President-elect Donald Trump's remarks spurred safe-haven demand for bonds.  Oil prices dipped on the back of rising U.S. crude inventories and plentiful supplies, despite emerging output cuts from OPEC and other producers.  Gold edged higher to hold near 7-week highs touched in the previous session, as the dollar weakened after Donald Trump provided little clarity on future fiscal policies in his first press conference as U.S. president-elect. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.14/68.17 January 11 -$91.99 mln $50.64 mln 10-yr bond yield 6.66 pct Month-to-date - $49.59 mln Year-to-date - - For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1=68.32 Indian rupees) (Compiled by Sourav Bose in Bengaluru)



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