Purnartha - 11-Aug-2014 - Important news (India & Global) (To receive these updates in your mailbox every morning - just call our toll free number: 1800 - 266 - 0161 or send an e-mail to support@purnartha with your name and phone number) INDIA 1) The government is likely to take a final call on the gas price after the end of Parliament session. A decision on what should be the way of pricing natural gas would eventually rest with Finance Minister Arun Jaitley though officials in the government said the government was wary of the Supreme Court case on a public interest litigation filed by Gurudas Dasgupta and Prashant Bhusan. 2) Governor Raghuram Rajan said their monetary stance is on target and might not change unless macroeconomic data suggest otherwise. A rate cut by RBI seems unlikely in the current calendar year. After the meeting on Sunday of the RBI board, with Jaitley presiding, the governor reiterated at a press conference that the current interest rate policy was on course to meet the targets on inflation. At this point, uncertainty is two-way...If news comes on either side, we can change what the policy is. But, as of now we think the policy is on target. This is contingent on data coming in, said Rajan. GLOBAL 1) Chinas consumer inflation came in as forecast at 2.3% rise, data showed by the National Bureau of Statistics on Saturday reinforcing bets that benign price pressures will give authorities room to relax monetary policy if needed and also pointed to stubborn deflationary pressures among producers and manufacturers. The producer price index fell 0.9% for the 29th consecutive month, in line with forecasts for a 0.9% decline. 2) Sagging exports pushed Britains trade deficit to a five-month high in June, suggesting a more balanced economic recovery still looks a way off, although the construction industry recovered from a dip in May. Exports of British goods to countries outside the European Union fell to their lowest level since September 2011, coinciding with the pound hitting a near six-year high against the dollar. The countrys total goods trade deficit grew to 9.4 billion pounds ($15.8 billion) in June, its highest level since January, from 9.2 billion pounds in May. Exports of goods decreased in June by 0.4 billion pounds, reflecting falls in oil and manufactured goods. Imports also declined, but only by 0.1 billion pounds. 3) U.S. nonfarm productivity rebounded more strongly than expected in the second quarter, but a sharp slowdown in unit labor costs pointed to still-tame wage pressures that could give the Federal Reserve room to keep interest rates low for a while. The Labor Department said on Friday productivity increased at a 2.5 percent annual rate after contracting at a revised 4.5 percent pace in the first quarter, which was the fastest decline since the fourth quarter of 1981. The economy grew at a 4.0 percent rate after shrinking at a 2.1 percent pace in the first quarter. The trend in productivity, however, remains sluggish. Compared to the second quarter of 2013, productivity increased 1.2 percent.
Posted on: Mon, 11 Aug 2014 07:19:33 +0000
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