GLOBAL NEWS-
The Indian government is likely to seek to raise about 800 billion rupees ($11.21 billion) through the sale of state-owned assets in the next fiscal year, beginning April 1, two government sources with direct knowledge of budget discussions told.The government could also sell shares in a number of state-owned companies through initial public offerings, the sources said. Possible candidates for these include Telecommunications Consultants India, Indian Railways’ subsidiaries IRCTC, RailTel Corporation India and National Seeds Corporation (NSC).
The target, which is the same as for the current financial year, includes proceeds from the expected privatisation of loss-making national carrier Air India, and the sale of an insurer to be created by the merger of three state-owned firms, the sources said. It will also involve the sale of units in an exchange traded fund consisting of minority stakes in about 20 state-owned companies.
Asian stocks took a breather on Wednesday, with mounting signs of slowing global growth and concerns over a yet-unresolved Sino-U.S. trade dispute putting the brakes on investor appetite for risk assets.MSCI’s broadest index of Asia-Pacific shares outside Japan was mostly unchanged, stalling after climbing to a seven-week high on Monday.The Shanghai Composite Index was last up 0.1 percent, having flitted in and out of the red.
Australian stocks were a shade lower and Japan’s Nikkei nudged up 0.2 percent.On Wall Street, the S&P 500, the Nasdaq and the Dow all posted their biggest one-day percentage drops since Jan. 3 on Tuesday.Following a sharp drop in December, U.S. shares gained through much of January, supported in part by expectations for a thaw in U.S.-China trade tensions and a more dovish-sounding Federal Reserve. That also prompted global investors to plow into riskier assets.
China will step up fiscal spending this year to support its economy, focusing on further cuts in taxes and fees for small firms, finance ministry officials said on Wednesday.China’s fiscal spending rose 8.7 percent to 22.1 trillion yuan ($3.3 trillion) in 2018, while revenue increased 6.2 percent to 18.3 trillion yuan, said Li Dawei, an official at the finance ministry.China achieved its 2018 fiscal revenue target despite extensive tax cuts last year, Li added.Beijing delivered about 1.3 trillion yuan of cuts in taxes and fees in 2018.Finance Minister Liu Kun said this month that China will further lower taxes and fees this year.
The government is also studying a plan to reduce social security fees to lighten the burden on small companies.Policy insiders also expect Beijing to cut the value-added tax, which ranges from 6 percent for the services sector to 16 percent for manufacturers.
Policymakers’ pledge of more aggressive tax reductions in 2019 has fanned expectations that the annual budget deficit ratio could be lifted to 3 percent of gross domestic product.
As much as U.S. President Donald Trump wants to boost markets through a trade pact with China, he will not soften his position that Beijing must make real structural reforms, including how it handles intellectual property, to reach a deal.Offering to buy more American goods is unlikely by itself to overcome an issue that has bedeviled talks between the two countries. Those talks are set to continue when Chinese Vice Premier Liu He visits Washington at the end of January.The United States accuses China of stealing intellectual property and forcing American companies to share technology when they do business in China.
Beijing denies the accusations.With a March 1 deadline approaching to reach an agreement or risk an escalation of tariffs on another $200 billion worth of Chinese goods, the two sides are still far apart on key, structural elements critical for a deal, according to sources familiar with the talks.“We’re not yet in a position where our concerns have been addressed sufficiently,” one U.S. official said, speaking on condition of anonymity. The official said the Trump team.
The Bank of Japan kept monetary policy steady on Wednesday and cut its price projections, bolstering market views it is in no position to rush an exit from its massive stimulus programme, despite the costs of prolonged easing.In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.The central bank also left unchanged its forward guidance, adopted in July, that pledges to keep interest rates extremely low for an extended period.The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.
British workers’ pay growth hit a new 10-year high and employment grew by much more than expected in the three months to the end of November, as the labour market remained robust despite other signs of an economic slowdown ahead of Brexit.Average weekly earnings, including bonuses, rose by 3.4 percent on the year, the Office for National Statistics said on Tuesday, the biggest rise since mid-2008 and compared with a median forecast of 3.3 percent in a Reuters poll of economists.Excluding bonuses, earnings rose by an annual 3.3 percent in the three months to November. Adjusted for inflation, total pay rose at the fastest pace for two years.
Gold prices held steady on Wednesday, as mounting concerns over a slowing global economic growth and uncertainty around Sino-U.S. trade tensions dampened appetite for risk.Spot gold was little changed at $1,284.19 per ounce by 0112 GMT, while U.S. gold futures were also steady at $1,283.40 per ounce.Spot gold rose 0.4 percent on Tuesday, its biggest one-day percentage gain in more than a week, as global stock markets fell on concerns over global growth. Asian stocks dipped further on Wednesday.
Oil prices were steady on Wednesday on hopes that increased Chinese spending would stem an economic slowdown that is showing signs of spreading and has been weighing on financial markets.International Brent crude oil futures were at $61.49 per barrel virtually unchanged from their last close.U.S. West Texas Intermediate (WTI) crude futures were at $52.98 per barrel, 3 cents below their last settlement.The steadier prices followed a 2-percent fall in crude futures and a slump in international financial markets on Tuesday as concerns over global growth spooked investors into looking for safe-haven assets such as government bonds or gold.
Whether OPEC’s efforts will be successful will also depend on the development of oil production in the United States, where crude output jumped by 2 million barrels per day (bpd) in 2018 to an unprecedented 11.9 million bpd.The boom was largely fueled by onshore shale oil drilling. And while the U.S. Energy Information Administration (EIA) said on Tuesday that it expected shale output to rise further, it said that production growth would slow in the coming years.