Weekly News 16 - 20 October 2023
16 October 2023 - (Economic Times) As global debt worries mount, is another crisis brewing?
Record debts, high-interest rates, the costs of climate change, health and pension spending as populations age and fractious politics are stoking fears of a financial market crisis in big developed economies. A surge in government borrowing costs has put high debt in the spotlight, with investors demanding increased compensation to hold long-term bonds and policymakers urging caution on public finances.
Over 80% of the $10 trillion rise in global debt in the first half to a record $307 trillion came from developed economies, the Institute of International Finance says. In the United States, where brinkmanship around a debt limit brought it close to a default, Italy and Britain are of most concern, more than 20 prominent economists, former policymakers and big investors told Reuters.
17 October 2023 - (Economic Times) India is the shining star of Asia now: Tyler Dickson, Investment Banking Head, Citi
While global macroeconomic headwinds drive volatility in markets, India saw strong merger and acquisition (M&A) activities in 2023. The Indian IPO market saw a flurry of activity with stock markets toting up the greatest number of new listings in 2023 globally. Tyler Dickson, head of investment banking at Citi, sees India as a shining star in Asia right now.
In an interaction with Swaraj Dhanjal & Bhaskar Dutta, Dickson said the American bank was bullish about M&A and equity market activity in India. He spoke about the impact of higher interest rates on dealmaking, how China- +One is making India an attractive market, and why he is cautiously optimistic about technology deals across M&A, equity, and debt markets in 2024.
18 October 2023 - (Economic Times) Maritime sector sets sights on Rs 80 lakh cr investment by 2047, document released by PM Modi shows
Prime Minister Narendra Modi on Tuesday said the India-Middle East-Europe Economic Corridor (IMEEC) has the potential to "transform" the global maritime trade, and invited investors to partner with the country to be a part of the initiative. India is eyeing an investment of ₹75-80 lakh crore in the country's maritime sector by 2047, according to a vision document released by Modi, who also laid the foundation stone of maritime projects worth more than ₹23,000 crore.
Speaking at the inauguration of the third Global Maritime India Summit (GIMS) via a video link, the prime minister said India was able to forge a historic consensus at the G-20 for IMEEC. The initiative will prove to be a catalyst for prosperity like the Silk Route was a few centuries ago, he added. "For investors, this is an opportunity to partner with India and be a part of these efforts (of making the corridor happen)," he said.
19 October 2023 - (Economic Times) Curbs extended on exports of sugar, eased for rice
The government has extended restrictions on the export of all varieties of sugar - raw, white, refined and organic - beyond October 31 owing to domestic production concerns on weak-monsoon worries. At present sugar is on the restricted list till October 31. However, the food ministry has been allowing the industry to export certain quantities depending upon availability.
However, these restrictions will not be applicable to sugar being exported to the European Union and the US under CXL and tariff rate quota (TRQ) concessions. A specified amount of sugar is exported to these regions at lower tariffs. India on Wednesday permitted the exports of 10,34,800 tonnes of non-basmati white rice to seven countries, including Nepal, Cameroon and Malaysia. The export is permitted through National Cooperative Exports Limited (NCEL), the Directorate General of Foreign Trade (DGFT) said in a notification.
20 October 2023 - (Economic Times) Monetary policy ought to remain actively disinflationary; interest rates to remain high: RBI Guv Shaktikanta Das
Reserve Bank Governor Shaktikanta Das on Friday stressed that the monetary policy must remain actively disinflationary to ensure that the decline in inflation from its peak of 7.44 per cent in July continues smoothly. Addressing the Kautilya Economic Conclave 2023, he also said price stability and financial stability complement each other and it has been an endeavour at RBI to manage both efficiently.
Retail inflation declined to a three-month low of 5.02 per cent annually in September on account of moderation in vegetables and fuel prices and was back within the Reserve Bank's comfort level. The inflation based on the Consumer Price Index (CPI) was 6.83 per cent in August and 7.41 per cent in September 2022. In July, inflation touched a peak of 7.44 per cent. The Reserve Bank has raised the key policy rate (repo) by 250 basis points since May 2022 to tame inflation. However, it pressed the pause button on the rate hike in February this year.
https://economictimes.indiatimes.com/news/india/need-to-keep-eye-on-geopolitical-situation-cea-v-anantha-nageswaran/articleshow/104448679.cms
https://economictimes.indiatimes.com/markets/expert-view/india-is-the-shining-star-of-asia-now-tyler-dickson-investment-banking-head-citi/articleshow/104480814.cms
https://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/maritime-sector-sets-sights-on-rs-80-lakh-cr-investment-by-2047-document-released-by-pm-modi-shows/articleshow/104507099.cms
https://economictimes.indiatimes.com/news/economy/agriculture/curbs-extended-on-exports-of-sugar-eased-for-rice/articleshow/104535832.cms
https://economictimes.indiatimes.com/news/economy/policy/monetary-policy-ought-to-remain-actively-disinflationary-rbi-governor-shaktikanta-das/articleshow/104574376.cms
