Page 2348 - Business Finance

RBI springs surprise, keeps interest rates unchanged

After back-to-back hike since June, the Reserve Bank of India (RBI) Friday kept interest rates unchanged, surprising markets that had expected a rate hike to support tumbling rupee and combat inflationary pressures from high oil prices. With five of its six members voting for a status quo, RBI's monetary policy committee (MPC) left repo rate at 6.50 per cent and changed policy stance to 'calibrated tightening' from 'neutral', which RBI Governor Urjit Patel said meant there would be no rate cut in the current cycle. Vowing to keep the inflation rate under targeted 4 per cent, RBI warned that volatile and rising oil prices, and tightening of global financial conditions pose substantial risks to growth and inflation. A majority of the analysts and bankers had expected that RBI will raise interest rate by at least a 0.25 per cent with some even rooting for a 0.50 per cent increase in view of the developments over the last few days where rupee had continued to slide and international oil ..

Patel defends status quo, shift in policy stance

Reserve Bank Governor Urjit Patel Friday said the two consecutive rate hikes earlier and its lower inflation forecasts made it to go in for a surprising status quo and shift the policy stance to "calibrated tightening". The surprise move left the market and the rupee bleeding, as the RBI watchers were expecting a rate hike to stem slide in the rupee, which plummeted to a new low of 74.23 to the US dollar in intra-day trade. Given the shift in policy stance from "neutral", a rate cut is off the table and one should expect only a status quo or a hike going forward, the monetary authority said, dismissing the interpretation of Friday's status quo as a deferred rate hike. Patel said the stance has been changed to "calibrated tightening" from "neutral" because the RBI feels that the risks are "tilted to the upside". Defending the status quo, Patel said, "Please recall that we had two rate hikes in the space of two months...we are not bound to increase rates at every meeting because that is

India, Russia welcome consultation on FTA

India and Russia on Friday welcomed the commencement of consultations on Free Trade Agreement (FTA) between the Eurasian Economic Union (EAEU) and its member states, and New Delhi.The two countries, in a joint statement, also supported the idea to expedite the negotiation process on FTA.Both the sides also reviewed the progress on the achievement of the goal to increase two-way investment to USD 30 billion by the year 2025 and noted with satisfaction that both countries were on the way to achieving this target.They noted that bilateral trade increased by more than 20 per cent in 2017 and have agreed to work towards its further increase and diversification. The two countries also expressed their support for promoting bilateral trade in national currencies.It was also announced that the first meeting of the Strategic Economic Dialogue between the NITI Aayog of India and the Ministry of Economic Development of the Russian Federation would be held later in 2018 in Russia.The progress in ..

OnePlus pips Apple, becomes consumers' top choice for next smartphone

The CMR Mobile Industry Consumer Insight (MICI) is a comprehensive nationwide survey of smartphone consumers across six metros, provides a compelling portrait of changing consumer aspirations, preferences and challenges, and dislikes around premium smartphone brands.As per the latest CMR Mobile Industry Consumer Insight (MICI) survey findings, consumers are not focusing on smartphone specifications, but interestingly looking at premium smartphone brands as devices that "make them feel powerful" (55 per cent), as "an extension of their lifestyle" (49 per cent),and makes them feel like "they have arrived" (30 per cent).Among upcoming smartphone brands, the one that consumers are keenly looking for is OnePlus (36 per cent), followed by Apple (34 per cent) and Samsung (18 per cent). The OnePlus appeal and promise is very high among consumers. In the age group of 18-32, 59 per cent of those surveyed favor OnePlus, and it reigns supreme as the brand of choice for aspirational buyers ...

RBI policy, rupee spook market; Sensex down nearly 800 points (Roundup)

The Reserve Bank of India's new policy stance of "calibrated tightening", along with a weak rupee and uncertainty in global trade, hit the key Indian equity indices, which crashed by over 2 per cent each on Friday.

Julius Baer sees Brexit bet pay off as UK business grows

EDINBURGH (Reuters) - Swiss private bank Julius Baer is benefiting from steady growth of wealth creation in Britain and its bet that Brexit is not a long-term threat to its business, the firm's chief executive for Europe said.

S. Korea court releases Lotte chairman from jail

The chairman of South Korean retail giant Lotte Group was released from jail on Friday after an appeals court suspended four years his sentence in a massive corruption scandal that brought down former president Park Geun-hye. Shin Dong-bin, 63, was jailed for 30 months in February for providing seven billion won (USD 6.2 million) to a foundation controlled by Park's secret confidante in return for state favours regarding Lotte's duty-free business. "It is judged that the donation was made with the expectation of some reciprocity," a court statement said. But Shin made the payment "passively" after a demand from the president, it added, and "feared consequences on his business if he declined to do so". "It is difficult to hold him accountable for bribery when he had limited freedom on making the decision," the statement said. Shin was the second head of a top conglomerate to be jailed for seeking to curry favour with Park after Samsung heir Lee Jae-yong was imprisoned for allegedly ...

'Brand India should be known for giving value for money'

Manufacturing in India should build the perception that it provides "value for money" as is the case for German-made products that are perceived as "good quality and premium priced", the head of a foreign multinational operating in the country said on Friday.

Record US imports drive goods trade deficit with China to high in August

The US trade deficit ballooned in August to its highest level in six months as exports of tariff-targeted goods fell while American consumers snapped up imported cars and mobile phones, the government reported Friday. With US imports of goods and services at their highest on record, the result pushed the goods deficits with China and Mexico to all time-highs, according to the Commerce Department report. The total US trade deficit rose 6.4 per cent over July to USD 53.2 billion, overshooting analyst forecasts which called for a smaller five percent increase. That was on record imports of USD 262.7 billion and exports of USD 209.4 billion. The result came at a triumphant moment for President Donald Trump, who has hailed a new agreement to remodel North America's trading system and is waging a battle of tariffs with Beijing. The August figures suggested retaliatory tariffs imposed by China continued to whipsaw American farmers, whose rural counties Trump's Republican party traditionally .

Wall Street flat after September jobs data

(Reuters) - Wall Street was set to open little changed on Friday after September jobs data showed further tightening in the U.S. labor market and moderate inflation pressures, doing little to deter predictions of gradual rate hikes by the Federal Reserve.

HSBC appoints new global head of financial institutions group

LONDON (Reuters) - Britain's HSBC said on Friday it had hired Peter Enns as global head of financial institutions group in its investment bank, which has lost a number of high-profile dealmakers this year.

Samsung posts record Q3 profit on thriving chip business

Samsung Electronics on Friday announced it broke record for the highest profit in a single quarter, registering 65 trillion won ($57.5 billion) in revenue in the third quarter of 2018.

RBI's status quo brings cheer for real estate developers

Real estate developers heaved a sigh of relief after the RBI kept key policy rates unchanged and said any hike in the interest rate would have affected housing demand during the upcoming festival season. "RBI's decision to keep the repo rate unchanged is a relief to the developers, home buyers and real estate stakeholders at large. "However, the economy is too precariously poised for real estate to pull itself by its bootstraps. We hope in particular for decisive steps to end the credit freeze," CREDAI's National President Jaxay Shah said. NAREDCO President Niranjan Hiranandani said RBI has kept rates unchanged but some banks have already hiked interest rates. He wondered whether banks will now reverse their recent hikes. Anshuman Magazine, Chairman, India and South East Asia, CBRE, said: "Any hike in repo rate would have impacted consumption sentiment and also the real estate sector. Also, the change in stance of the RBI from neutral to calibrated tightening is an indication of the ..

57% women business leaders plan finances independently: Report

Financial dependence is history among the country's women business leaders with a report saying that 56.67 per cent of them plan their financial matters independent of other family members. About 38.71 per cent took all financial decisions jointly with spouse/father/partners, and only 6.45 per cent contributed towards family earnings and allowed their money to be managed by the spouse/father/partner, the report named 'Success Strategies of Women Leaders' released at the third WomeNation Summit organised by CIIIndian Women Network said. The report, which covers responses from established and successful women leaders, aged 50 and above, said that most women leaders give a great deal of importance to networking. While the most preferred modes of networking were participation in professional bodies and networking events (34.17 per cent) and establishing collaborative relationships at work (33.79 per cent), respondents have a rating of 7.79 out of a maximum of 10 on ...

Oil prices rise on Iran sanctions, outlook uncertain

LONDON (Reuters) - Oil prices steadied just below four-year highs on Friday as world fuel markets tightened ahead of a new round of U.S. sanctions on Iranian oil exports due to be imposed in November.

India-Russia trade to cross $30 bn by 2025: Putin

As Russian President Vladimir Putin on Friday expressed hope that the mutual trade turnover between India and Russia would grow to $30 billion by 2025, Prime Minister Narendra Modi invited Russia to set up a dedicated defence industrial park in the country.

Nasscom unveils 'Centre of Excellence' for IoT in Haryana

In collaboration with the Haryana government, Indian IT industry's apex body Nasscom on Friday launched here its Centre of Excellence for Internet of Things (CoE - IoT).

U.S. job growth slows; unemployment rate falls to 3.7 percent

WASHINGTON (Reuters) - U.S. job growth slowed sharply in September likely as Hurricane Florence depressed restaurant and retail payrolls, but the unemployment rate fell to near a 49-year low of 3.7 percent, pointing to a further tightening in labor market conditions.

Futures swing after September jobs data

(Reuters) - U.S. stock index futures briefly turned positive on Friday after a U.S. Labor Department report showed job growth slowed sharply in September, while a steady rise in wages suggested moderate inflation pressures, easing concerns about the economy overheating.

India's GDP growth may exceed RBI's projection of 7.4 pc in FY19: Garg

Economic Affairs Secretary Subhash Chandra Garg Friday said the GDP growth is expected to be higher than the RBI's projection of 7.4 per cent for the current fiscal. The Reserve Bank in its fourth bi-monthly policy review retained GDP forecast for 2018-19 at 7.4 per cent based on an overall assessment. "Government welcomes MPC statement and decision to keep the rates unchanged. Government's assessment of inflation is in line with the MPC's assessment. We believe growth should turn out to be higher than that projected by MPC (monetary policy committee)," he tweeted. Later, the finance ministry in a statement said the status quo decision by the MPC is in consonance with the government's assessment of inflation and growth going forward and for achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. "The government welcomes the MPC's assessment and notes its decision to maintain the Policy Rate," the