Wall Street stocks ended last week with losses on Friday following government data indicating employers slowed the pace of hiring in August.
Asia shares ease, euro slugged by energy crisis
Asian shares slipped on Monday while the euro took a fresh spill after Russia shut a major gas pipeline to Europe, leading some governments there to announce emergency measures to ease the pain of soaring energy prices.
The euro was down 0.4% at $0.9908 and looking likely to test its recent 20-year low of $0.99005 as markets priced in more risk of a European recession.
Germany announced plans to spend 65 billion euros ($64.7 billion) on shielding customers and businesses from rising costs, while Finland and Sweden offered liquidity guarantees to keep power companies open.
Oil prices jumped along with the whole energy complex as a holiday in U.S. markets made for thin trading conditions. News of more coronavirus lockdowns in China only added to the jittery mood. (Reuters)
Q1 GDP growth below expectation, cause for concern: Subbarao
India’s GDP growth of 13.5 per cent in the April-June quarter of 2022-23 has turned out be a cause for ‘disappointment and concern’, as there was expectation of a bigger bounce back from the first quarter of last year when economic activity was crippled by the Delta wave of COVID-19, former RBI governor D Subbarao said on Sunday.
Subbarao added that risk factors for the country’s growth outlook in the short term include high commodity prices, possibility of a global recession, monetary tightening by the RBI and an uneven monsoon that could threaten crop output, especially of rice.
“The economy clocked growth of 13.5 per cent in the first quarter (April-June) of this fiscal year which would have been cause for celebration in any other circumstance.
“In the event, it’s turned out be a cause for disappointment and even concern,” he told PTI in an interview. (PTI)
Paytm says no link with Chinese loan merchants under ED scanner
Digital financial services firm One97 Communications, which operates under the Paytm brand, on Sunday denied any link with the merchants that are under the Enforcement Directorate scanner in the Chinese loan app case.
Paytm said that none of the funds frozen by the Enforcement Directorate (ED) belongs to it or any of its group firms.
“As a part of ongoing investigations on a specific set of merchants, the ED has sought information regarding such merchants to whom we provide payment processing solutions. We wish to clarify that these merchants are independent entities, and none of them are our group entities,” Paytm said in a regulatory filing.
The ED on Saturday said it has conducted raids at six premises of online payment gateways, such as Razorpay, Paytm and Cashfree in Bengaluru, over the alleged irregularities in instant app-based loans “controlled” by Chinese persons. (PTI)
Reliance retail arm acquires control of Insight Cosmetics
Reliance Retail Ventures Ltd (RRVL) has bought a controlling stake in makeup and personal care brand Insight Cosmetics, said two people aware of the deal, marking the entry of the billionaire Mukesh Ambani-owned company into the cosmetic business. Insight Cosmetics was launched by Mumbai-based entrepreneur Dinesh Jain in 2001. (Full Report)
India’s trade deficit widens to $28.68 bn in August as imports rise sharply
India’s trade deficit widened to $28.68 bn during August as imports climbed sharply by 37% to $61.68 billion but exports decline marginally to $33 billion, official data released by the commerce and industry ministry released late on Saturday showed.
Amid fears of demand slowdown in large export markets such as the US and EU and a prolonged lockdown in China, India’s exports in August declined to $33 billion compared to $36.27 billion in July.
“Imports of petroleum products form a large share of import and its been rising as coal and petroleum are being stocked to ensure energy security. Ports are chocked with coal at the moment. Rising imports are not a concern as it is feeding into exports. We need to focus on boosting exports. (Full Report)
Former Tata Sons chair Cyrus Mistry dies in road accident
Cyrus Mistry, the 54-year-old former chairman of Indian conglomerate Tata Sons, died in a road accident near financial capital Mumbai on Sunday, Indian police said.
Mistry was ousted as chairman of Tata Sons, the holding company of the $300-billion salt-to-software Tata conglomerate, in a boardroom coup in 2016, sparking a long-drawn-out legal tussle on which India’s top court eventually ruled in Tata Group’s favour.
The accident took place in Palghar, located about 100 kilometres (62 miles) north of Mumbai, on Sunday afternoon. Mistry was travelling to Mumbai from Gujarat with three others, B. Patil, the top police official in Palghar district, said.
A senior Mumbai police official said the car in which Mistry was travelling had rammed into a divider, and that he had died at the accident site. (Reuters)
Wall Street stocks fall on Friday again as hiring slows; economy added 315,000 jobs in August
Wall Street stocks ended the week with losses Friday as an early-session rally fizzled following government data indicating employers slowed the pace of hiring in August.
Data showed the US economy added 315,000 jobs last month, which was in line with what economists were expecting, but lower than the 526,000 posted in July.
Stocks initially rose on the report as markets bet the moderating employment situation would ease pressure on the Federal Reserve to hike interest rates.
But markets reversed course midday after Russia’s move to halt natural gas deliveries to Germany sharpened worries over a European recession.
The Dow Jones Industrial Average ended 1.1% lower at 31,318.44.
The broad-based S&P 500 fell 1.1% to 3,924.26, while the tech-rich Nasdaq Composite Index shed 1.3 percent to 11,630.86. (AFP)
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