GMF: LIVECHAT - ASIA & EX-U.S. PARIS ACCORD How will the exit of the climate agreement by the U.S. change the demand and supply of renewable energy and related equipments? Will that present an opportunity or give a blow to those companies in Asia? Frank Yu, principal consultant from Wood Mackenzie, will discuss potential impacts from the Paris Accord 2.0 on APAC at 12:00 pm IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India's economy to turn around in April-June quarter - adviser India's economy is expected to recover in the current quarter as the pain stemming from Prime Minister Narendra Modi's cash clampdown late last year has ended, a top policy adviser of the government said on Friday.
• India says to levy 3 percent tax on gold under new regime, industry relieved India will tax gold at a rate of 3 percent under a new nationwide sales tax that comes into effect on July 1, the government said on Saturday.
• RCom gets reprieve on its debts until end 2017 Anil Ambani, chairman of India's Reliance Communications, said on Friday its lenders had agreed to a plan which gives the company a reprieve on its loans until the end of the year, providing a much-needed breathing space.
• JSW steel raises bid for Italy's troubled Ilva steel plant A consortium led by India's JSW Steel raised its bid for Italy's troubled Ilva steel plant, a statement said on Saturday, in a challenge to a group that was declared the winner of the tender process last month, but whose offer faces labour union opposition.
• India's market regulator sets up panel to improve corporate governance India's market regulator has set up a committee to help improve corporate governance of listed companies, it said on Friday, in the light of recent high-profile corporate tussles.
• Air India privatisation very difficult without debt write-off - govt adviser Privatising state-owned airline Air India will be "very difficult" unless the government writes off at least part of its debts, a senior government economic adviser said on Friday after a top policy panel recommended selling off the carrier.
• State Bank of India head says Essar-Rosneft deal to close in June A $13 billion takeover by Russian oil major Rosneft of India's Essar Oil should close this month after delays caused by debts to Indian lenders, the head of State Bank of India said on Friday, adding she had "more or less" approved the deal.
• GVK Power to sell 10 percent stake in Bengaluru airport to Fairfax India Airport operator GVK Power and Infrastructure on Friday said it will sell 10 percent of its residual stake in Bangalore International Airport Limited in southern India to Fairfax India Holdings Corp for 12.90 billion rupees.
GLOBAL TOP NEWS • "Enough is enough" PM May says after London attackers kill seven Prime Minister Theresa May said Britain must be tougher in stamping out Islamist extremism after attackers killed at least seven people by ramming a van into pedestrians on London Bridge and stabbing revellers in nearby bars.
• South Korea launches $10 billion fiscal package to boost jobs, welfare South Korea's new government announced a 11.2 trillion won fiscal stimulus package, increasing social welfare subsidies and taking steps to deliver on President Moon Jae-in's election promise to create 810,000 public sector jobs.
• Southeast Asian nations step up cooperation as Islamic State threat mounts Southeast Asian nations plan to use spy planes and drones to stem the movement of militants across their porous borders, defence officials said at the weekend, as concerns rise over the growing clout of Islamic State in the region.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were trading at 9,664.00, trading up 0.2 percent from its previous close.
• The Indian rupee is likely to open higher against the dollar, as weaker-than-expected U.S. monthly employment data prompted investors to push back expectations of Federal Reserve rate hikes.
• Indian government bonds will likely edge lower, as the central bank will auction 300 billion rupees of cash management bills today, weighing on demand for dated securities. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.60 percent-6.65 percent band today.
GLOBAL MARKETS • U.S. stocks closed at record levels for a second consecutive session on Friday, as gains in technology and industrial stocks more than offset a lukewarm jobs report.
• Japan's Nikkei share average barely moved, capped by a stronger yen but retaining enough momentum to stay close to a 22-month high scaled the previous session.
• The dollar nursed losses, coming close to a seven-month low against a currency basket plumbed after disappointing U.S. employment data prompted investors to pare back their expectations of future U.S. Federal Reserve rate hikes.
• U.S. benchmark and long-dated Treasury yields fell to nearly seven-month lows, and short-dated yields touched their lowest in more than two weeks on Friday after weaker-than-expected U.S. employment data suggested cautious Federal Reserve policy beyond June.
• Oil markets were subdued, with Brent struggling to maintain $50 per barrel as efforts led by OPEC to tighten the market were undermined by persistently rising U.S. production.
• Gold held steady after hitting its highest in over six weeks earlier, buoyed as a disappointing U.S. jobs report appeared to dilute the prospects for an aggressive string of interest rate hikes in the United States.
ADD TABLE.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.48/64.51 June 2 -$9.18 mln $398.67 mln 10-yr bond yield 7.00 Month-to-date -$69.93 mln $514.38 mln Year-to-date $7.91 bln $13.95 bln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 64.44 Indian rupees) (Compiled by Benny Thomas in Bengaluru)
