Investors are hopeful that Fed will lower its hawkish stances and will go easy on future interest rate hikes. Still, an increase of 75 basis points is on cards but with a hint that officials are open to dialling back the pace of increases.
Credit Suisse Is Not For Sale, Chairman Says
Any bargain hunters hoping to snap up Credit Suisse Group AG now that the lender’s revamp has pushed its stock down yet again may find themselves getting short shrift in Zurich.
“We are going to thrive again, so we don’t have any takeover discussions,” Credit Suisse Chairman Axel Lehmann said in an interview with Bloomberg Television in Hong Kong on Monday. “We want to stay independent.”
With its share price slumping by more than half this year, the 166-year-old institution has been vulnerable to rumors of takeover bids and concerns over its stability. Lehmann said the 4 billion Swiss franc ($4 billion) capital increase would make the lender “rock solid,” helping it to carry out a vital restructuring that radically downsizes the loss-making investment bank and shrinks its trading operations. (Bloomberg)
Airlines brace for impact as supply chain issues emerge as carriers may face shortage of parts, engines, aircraft
The winter schedule for airlines in India started on 30 October, with companies bracing for the impact of supply chain issues due to a a shortage of parts, engines and planes.
“For any industry, capacity deployment is a key parameter for its fixed cost absorption. Supply chain issues for aircraft, leading to their non-availability for flying, will lead to under absorption of capacity, impacting the earnings, given we are in the midst of the winter/festive travel season,” said Suprio Banerjee, vice president and sector head at ICRA.
There are visible challenges that Indian airlines are facing due to supply chain issues. For IndiGo, the largest airline in the country with a 58% market share, over 35 aircraft, or more than 12% of its fleet, have been grounded for at least seven days, a data analysis by Mint from Flightradar24 showed. The problem is not limited to IndiGo and is more severe for airlines such as GoFirst, which has around 8% market share and have a fleet size of 59 aircraft. (Read More)
India’s gold demand dips as inflation hits rural buyers
India’s gold consumption in the months of October to December could fall by around a quarter from a year ago as inflation depresses rural demand, the World Gold Council (WGC) said on Tuesday.
The lower purchases in the world’s second-biggest gold consumer could weigh on prices, which are trading near their lowest level in more than two years.
Falling demand for gold imports could also help to narrow India’s trade deficit and support the rupee.
Higher inflation is likely to curb rural demand, which was starting to recover from disruption caused by last year’s COVID-19-led lockdowns, Somasundaram PR, regional chief executive officer of WGC’s Indian operations, told Reuters. (Reuters)
Rupee slumps 34 paise to 82.81 against US dollar
The rupee pared its initial gains and settled 34 paise lower at 82.81 against the US dollar on Monday, tracking the strength of the American currency in the overseas market.
At the interbank foreign exchange market, the local unit opened at 82.35 and witnessed a high of 82.32 and a low of 82.82.
It finally settled at 82.81 against the American currency, registering a fall of 34 paise over its last close of 82.47.
The Indian rupee depreciated on Monday amid strength in the US dollar. However, positive domestic equities and weak crude oil prices cushioned the downside, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas (PTI)
Tata Steel Q2 results: Consolidated PAT dips 87% to ₹1,514 cr, misses estimate
Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of ₹1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown. The PAT was lower by 87% compared to a profit of ₹11,918 crore recorded during the same quarter last year.
On a sequential basis, the PAT witnessed a decline of 80% from ₹7,764.96 crore achieved during the April – June quarter. (Read More)
Airtel net profit surges 86%, Arpu at industry high of ₹190
Bharti Airtel Ltd’s fiscal second-quarter profit rose 86% from a year earlier on subscriber additions and higher revenue per user. But the company’s earnings still missed analysts’ estimates, prompting the company to call for another round of industry-wide tariff increases.
Net profit rose to ₹2,145 crore for the September quarter from ₹1,134 crore in the year-ago period. Profit rose 33% sequentially from ₹1,607 crore in the June quarter.
Revenue, however, beat analysts’ estimates, rising over 22% to ₹34,526 crore, boosted by 4G customer additions. Sequentially, revenue rose 5.2% from ₹32,804 crore. (Read More)
Sebi bans Mehul Choksi from capital market for 10 yrs; slaps ₹5 cr fine
Sebi on Monday barred fugitive businessman Mehul Choksi from the securities markets for 10 years and imposed a fine of ₹5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.
He has been directed to pay the penalty within 45 days, as per the Securities and Exchange Board of India (Sebi) order.
Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹14,000 crore. (Read More)
Bain Capital to sell $410 million Axis Bank stake
Bain Capital will sell a 1.24% stake in private lender Axis Bank Ltd through a block trade on Tuesday, which is expected to fetch the private equity investor $410 million, according to the deal terms seen by Mint.
Bain Capital holds a 4.24% stake in Axis Bank as of 30 September through three entities – BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
As per the deal terms, BC Asia Investments VII will sell a 1.24% stake at a floor price of ₹888 per share, a 2% discount to the closing price of ₹906 per share on Monday on NSE. (Read More)
Wall Street ends strong month on weaker note; focus on Fed meeting
U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve’s policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
The Dow Jones Industrial Average fell 128.85 points, or 0.39%, to 32,732.95, the S&P 500 lost 29.08 points, or 0.75%, to 3,871.98 and the Nasdaq Composite dropped 114.31 points, or 1.03%, to 10,988.15.
For the month, the Dow jumped 13.95%, the S&P climbed 7.99% and the Nasdaq advanced 3.9%.
Apple Inc lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names such as Amazon.com and Google-owner Alphabet which have been under pressure in the rising rate environment, were also lower, down 0.94% and 1.85%, respectively. (Reuters)
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