India's fiscal deficit in the six months through September approached 93% of the target for the full year, limiting the scope for more tax cuts to boost economic growth, while infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounting for nearly 40% of India's industrial output, fell 5.2% in September from a year earlier, the worst performance in years.
SEBI has asked banks to disclose any material divergences in their non-performing assets on a continuous basis. In a circular issued on Thursday, the market regulator said banks must disclose such information within 24 hours of the receipt of the Reserve Bank of India's risk assessment report. Currently, such divergences are disclosed by banks in their quarterly financial results. The new rules will apply to situations where the additional provisioning for NPAs assessed by the RBI exceeds 10% of the reported profit before provisions and contingencies. The disclosure rules will also apply if the additional gross NPAs identified by the central bank exceed 15% of the published incremental gross NPAs for the reference period
Dismal core sector data along with weak manufacturing sector may prompt the Reserve Bank of India to become aggressive at the fifth Bi-monthly Monetary Policy review in December, experts said.
US President Donald Trump said on Thursday the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a "Phase One" trade deal after Chile cancelled a planned summit set for mid-November, Reuters reported. Chile's decision to cancel the Nov. 16-17 Asia-Pacific Economic Cooperation summit in Chile threw a wrench in plans for Trump and Xi to sign a deal on the side-lines. US and Chinese negotiators have been racing to finalize a text of the "phase one" agreement for Trump and Xi to sign this month, a process clouded by wrangling over US demands for a timetable of Chinese purchases of US farm products.
The Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signalled there would be no further reductions unless the economy takes a turn for the worse. Fed cut its key overnight lending rate to a target range of between 1.50% and 1.75%. Meanwhile, latest NFP data showed the US economy added 128,000 jobs to the economy, beating expectations. But, the ISM manufacturing PMI for October came in slightly worse at 48.3 compared with 48.9 market expectations. So, the data on the day is mixed viz better employment, weaker manufacturing, mixed inflation. According to the CME FedWatch Tool, there is currently only a 14% of a rate cut at the Dec 11 meeting. However, there is a lot of data remaining, including November's data for NFP and ISM
Britain will hold its first December election in almost a century after Prime Minister Boris Johnson won approval from parliament on Tuesday for an early ballot aimed at breaking the Brexit deadlock. After the European Union granted a third delay to the divorce that was originally supposed to take place on March 29, the United Kingdom, its parliament, and its electorate remain divided on how, or indeed whether, to go ahead with Brexit. Johnson remains frustrated in his attempts to ratify the last-minute divorce deal that he struck with the EU earlier this month.
Piramal Enterprises Ltd is seeking shareholders' nod to raise Rs 1,750 crore from a Canadian investor by issuing compulsorily convertible debentures (CCDs). In a notice for an extraordinary general meeting to be held on November 25 in Mumbai, the company said it required additional funding for various purposes, including general corporate purposes, in view of its future outlook, growth targets and prospects. On Oct 25, the company's board had approved raising of funds aggregating up to Rs 5,400 crore, subject to regulatory approvals. On the same day the company had also entered into a securities subscription agreement with the investor, Caisse de depot et placement du Quebec for raising Rs 1,750 crore.
Mukesh Ambani-led Reliance Industries Ltd (RIL) has decided to set up a new digital services company to act as an umbrella platform for all the Reliance-owned digital businesses including Reliance Jio, MyJio, JioTV, JioCinema, JioNews and JioSaavn. The new company will fit between the parent company and the subsidiary Reliance Jio, and will make the telecom company debt-free, according to Ambani. In a press release, said the new company will be a "transformational" and "disruptive" digital service platform. He also added that the company will focus on services in healthcare, education, agriculture, commerce, government-to-citizen services, gaming and manufacturing sector among others. The company's board of directors have approved the formation and a capital infusion of Rs 1.08 lakh crore for the platform. The investment will be in the form of a rights issue of optionally convertible preference shares (OCPS). Moreover, the new platform will also acquire RIL's total equity investment of INR 65,000 crore in Jio.
Private sector lender YES Bank said it received a binding offer for a stake purchase in the bank from a global investor. "The bank would like to inform that it has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares," the bank said in a regulatory filing. According to a CNBC TV18 report, Hong Kong-based SPGP Holdings showed interest in investing around $1.2 billion in the bank.
Fiat Chrysler and Peugeot owner PSA Group plans to merge that would create a new trans-Atlantic auto making giant with roughly 410,000 employees and combined revenues of $190 billion. Shareholders of each automaker would own 50% of the combined operation, the companies said in a joint statement. A binding agreement could be finalized within weeks, the statement said. The move comes after Fiat Chrysler withdrew from merger talks with its French rival Renault. Both companies in a statement said that the combined entity would leverage is strong global R&D footprint and ecosystem to foster innovation and meet challenges in connected, electrified, shares and autonomous mobility with speed and capital efficiency.
Oil giant Royal Dutch Shell registered a 15% fall in third-quarter net profit, citing lower energy prices and chemicals margins. Net income attributable to shareholders on a current cost of supplies (CCS) basis, and excluding identified items, came in at $4.767 billion for the third quarter of 2019. That compared with a profit of $5.624 billion in the same quarter a year ago and $3.462 billion in the second quarter. However, Shell managed to comfortably beat analysts' estimates of $3.91 billion.
Experts from international wealth management firm, Spearvest, have given an enthusiastic Saudi Aramco's forthcoming Initial Public Offering (IPO), which is due to be launched on November 3 with trading expected to start from December 11. Saudi Aramco, the world's most profitable company and largest oil producer globally, last year earned greater profits than Apple, JP Morgan, Nestle and Airbus combined ($111 billion). Aramco is looking to float a 1% to 2% stake on the kingdom's Tadawul market, in what would be one of the largest ever public offerings, worth upwards of $20 billion. Saudi Aramco produces more than one in every 10 barrels of oil produced globally, which is more than double Exxon Mobil's production, its closest competitor.
Value Investing (Part 2)
In the last edition, we discussed the different factors investors can look for when making an investment decision (both quantitative and qualitative factors) using value investing. In Part II, we will discuss following two things:
The core tenet of value investing is that the investor:
Wholesale Inventories (Sep); Michigan Consumer Sentiment Index (Nov) PREL
USDA WASDE Report
Baker Hughes US Oil Rig Count
SBM Weekly Issue 3: For week ended 1 November 2019
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