| News Announcement |
Impact Analysis |
| Donald Trump now plans to tax French Wines imported into the US |
- The trade war was triggered by France announcing a digital tax on US companies operating in France
- Trump has promised to retaliate with a tax on French Wines, which has a very big market in the US
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| Iran situation continued to remain tense with tanker seizure |
- Iran seized two British tankers near the Strait of Hormuz in retaliation to a similar action by the UK
- While Trump has issued a warning to Iran, he has desisted from committing to any large scale action
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| London Stock Exchange may be buying Refinitiv for $27 billion |
- Refinitiv is one of the largest data analytics company in the world and LSE looks to combine with Refinitiv
- Globally exchanges are increasingly looking at combining with data analytics providers for value added extension
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| Vodafone Idea reports quarterly loss of Rs.4873 crore for June quarter |
- The pressure on profits continued after the ARPUs continued to be under pressure for the quarter
- Vodafone has already written off losses to the tune of Rs.20,000 crore in the last four quarters
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| Trump says, China could delay trade deal till 2020 |
- Trump fears that China could actually delay the trade deal till the 2020 elections for maximum political mileage
- The trade war between the US and China has led to a slowdown in growth in the US, China and rest off the world
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| Government may scrap vehicles more than 15 years old |
- The idea is to address the issue of vehicular pollution in the cities through more frequent pollution checks for old cars
- However, this could indirectly boost the demand situation for the auto industry as renewal demand could increase
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| PMO asks the Finance Ministry to rethink on sovereign bonds |
- The PMO has been worried about the currency risk implicit in these sovereign bonds if the dollar appreciates
- This risk becomes more pronounced as India was planning a 30-year sovereign bond, which could heighten the risk
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| IMF must restrict the US from misusing Currency Manipulator tag: Das |
- In the past, the US has accused countries like India and China of deliberately intervening to weaken currency
- The Manipulator tag allows the US to take punitive action against nations trying to boost exports this way
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| Investors lose Rs.150,000 crore of market value during the week |
- The losses were driven by a sharp correction in the financials and auto stocks on worries over rising NPAs
- This sharp correction also ensured that the July F&O series turned out to be the worst in last 9 months
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| India’s Kharif output lags as monsoons remain patchy |
- With a near 35% shortfall in rains in July, the Kharif sowing is surely going to get affected according to agri experts
- Weak rainfall, leads to lower farm incomes and higher food grain prices leading to a spike in food inflation
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| Consumer financing boom may have peaked in India; Chris Wood |
- Chris Wood of CLSA believes that the sweet spot of easy money and low cost of funds is now over in India
- This could lead to a weakening of the consumer financing book, that had led a lot of NBFC stocks higher
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| Maruti and Tata Motors announce weak results for the quarter |
- In the case of Maruti and Tata Motors there was de-growth in sales and also a fall in profits
- Auto companies are currently caught between weak demand and rising input costs, which is squeezing margins
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| Indian auto parts makers to lay off nearly 1 million workers |
- This has been necessitated by the weak auto demand which is stressing out most ancillary manufacturers
- The auto ancillary segment currently employs around 5 million hands and this means 20% of the jobs will go
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| FPIs withdraw $1.75 billion in the first 25 days of July |
- The selling by FPIs became specifically acute after the Union Budget announced revised FPI tax norms
- Buyback tax combined with higher FPI tax surcharge have sharply dampened equity sentiments among the FPIs
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| Zee may be facing a hurdle in getting out if its debt crisis |
- The big challenge for Zee was to repay the debt by September and was counting on the Dish sale to Airtel
- However, the deal appears to have run into rough weather due to Airtel having concerns over valuation
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| ECB chief has committed to let the dovishness continue in policy |
- ECB chief, Mario Draghi, has kept the option of further rate cuts and QE open to tackle economic slump
- Former IMF chief, Christine Lagarde will soon be taking over as the chief of ECB from Mario Draghi
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| Boris Johnson takes over as the new Prime Minister of Britain |
- One of his first challenges will be to complete the BREXIT formalities before October 31st
- UK can either just walk out of BREXIT, or insist on a deal or just call for fresh elections in Britain
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| HDFC and SBI spar over Jet Airways’ BKC property at NCLT |
- SBI has objected to HDFC seeking to keep the BKC property of Jet outside the NCLT process for resolution
- HDFC wanted separate treatment for the BKC property as it was specifically mortgaged by Jet for a credit facility
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| IMF cuts India’s growth rate target by 30 basis points to 7% |
- According to IMF, India was unlikely to grow at above 7% in the next two years due to domestic issues
- Apart from the consumption slowdown and the liquidity crunch, IMF has also warned of global headwinds
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