Mukherjee to Borrow Record $93 Billion to Fund India Budget; Stocks Slump India’s Finance Minister Pranab Mukherjee announced plans to borrow a record 4.51 trillion rupees ($93 billion) to fund budget spending on roads, power and aid for the poor. Stocks, bonds and the currency slumped.
Rupee, Stocks, Bonds Slide as 16-Year High Deficit Threatens Credit Rating India’s stocks, rupee and bonds slid after the government forecast the widest budget deficit in 16 years, increasing the risk of a cut in sovereign ratings.
India's Budget Deficit of 6.8% `Within Boundary' of Expectation, S&P Says India’s proposed budget deficit of 6.8 percent of gross domestic product, the widest in 16 years, is “within the boundary of our expectation,” according to Standard & Poor’s.
India Ends Turnover Tax on Commodities to Foster the $1 Trillion Market India, the world’s biggest user of gold and the second-biggest grower of rice and wheat, ended a plan to tax trading commodity futures, luring more investors to a market that’s doubled to $1 trillion in the past three years.
India Doubles Tax on Bullion Imports to Raise Cash; Move May Cool Demand India, the world’s biggest consumer of bullion, doubled import taxes on gold and silver as the government sought to raise funds to spend on roads and supply food grain to the poor at below market rates.
Government Bonds Drop as India Budget Deficit to Reach 6.8% of GDP in FY10 India’s five-year bonds dropped the most in three weeks as the government said its budget deficit will reach an estimated 6.8 percent of gross domestic product in the year ending March 31, the most since 1994.
Russia, India Question Reliance on Dollar as G-8 Leaders Prepare to Meet Russia and India said the world economy is too reliant on the U.S. dollar and called for changes in how $6.5 trillion in currency reserves are managed, as Group of Eight leaders prepare to meet this week.
Asian Stocks Fall on Growth Concern; India's Reliance Slumps After Budget Asian stocks fell, sending the MSCI Asia Pacific Index to its first four-day drop since February, as concern the global recovery will falter caused commodity prices to drop and the yen to strengthen.
Stocks in U.S. Decline, Extending Global Slide, as Commodities, Oil Slump U.S. stocks extended a global retreat, dragging the MSCI World Index lower for a third day, as concern that the economic recovery will stall sent commodity producers and industrial shares lower. Oil slid to a five-week low, while the dollar and two-year Treasuries advanced.
U.S. Service Industries Contract at Slowest Pace in Nine Months, ISM Says U.S. service industries from retailers to home builders contracted last month at the slowest pace in nine months, as measures of new orders and employment improved.
Earnings Dropped Worldwide in Second Quarter as Job Losses Hurt Consumers Earnings at such companies as Ford Motor Co. and Arcelor Mittal may continue to decline in the next three months as the highest unemployment in a quarter-century keeps consumers from spending.
General Motors Wins Court Approval to Sell Most Assets to U.S. Treasury General Motors Corp. won approval to sell most of its assets to a U.S. Treasury-funded buyer, cementing the Obama administration’s efforts to remake the auto industry and leaving restructuring professionals with several years of work to liquidate the leftovers.
Bank of America's Bad Loans Top $7 Billion, Credit Suisse's Orenbuch Says Bank of America Corp., the largest U.S. lender, faces a 10 percent jump in uncollectible loans to $7.6 billion when it reports second-quarter earnings, Credit Suisse said in a report today.
Two-Year Treasuries Advance as Stocks Decline, Fed Buys $7 Billion of Debt Treasury two-year notes rose for a third day as the Federal Reserve bought $7 billion in government securities and declining equities stoked demand for the relative safety of fixed-income assets.
ECB `Showmanship' Achieves Covered Bond Purchase Plan Intent, Analysts Say The European Central Bank’s plan to buy covered bonds has achieved its aim of revitalizing the market for the debt even before the purchases start today, according to Ciaran O’Hagan, a Paris-based fixed-income strategist at Societe Generale SA.
source: Bloomberg
