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ETMarkets Morning Podcast (ETMarkets.com)

China’s GDP growth slows to three decade low; UK PM faces Brexit battle & more

05:45 Min | October 18, 2019, 9:20 AM IST
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Transcript
Hello There! Good Morning. This is Nandini Sanyal from ETMarkets.com, and here is all the news you need to start your day

The Headlines:

>> China’s GDP grows at weakest pace in 27-1/2 years

>> UK PM faces Brexit battle in Parliament

>> India's depressed auto mart sees an upgrade in choice

AND

>> Bond yield surge casts cloud over Vodafone Idea

And We have more. Stay with us.

Let’s first have a quick glance at how the markets are looking like...

Asian stocks edged higher on Friday, tracking the global lift in sentiment after the UK and the European Union struck a long-awaited Brexit deal, but concern about the Chinese economy is likely to cap gains.

>> SGX Nifty traded nearly 20 points down at 7 am (IST), signalling weakness ahead on Dalal Street. MSCI index for Asia-Pacific shares outside Japan rose 0.1%. Australian shares were off 0.6%, while Japan's Nikkei added 0.5%.

>> Wall Street logged small gains overnight. Dow gained 0.09%, the S&P500 0.28% and Nasdaq 0.4%

AND IN CURRENCY MART

The rupee darted up 27 paise to close at 71.16 against the US dollar on Thursday, led by optimism over the Brexit deal amid softening crude oil prices.

LET ME NOW quickly GO OVER the top news we are tracking this morning.

China economy grows at weakest pace in 27.5 years
China’s economic growth slowed more than expected to 6.0% year-on-year in the third quarter, the weakest pace in at least 27-1/2 years, as demand at home and abroad faltered amid a bruising Sino-US trade war. Friday’s data marked a further loss of momentum for the economy from the second quarter’s 6.2% growth

After Brexit deal, suspense over Parliament vote
EU leaders unanimously backed a new Brexit deal with Britain on Thursday, leaving Prime Minister Boris Johnson facing a battle to secure the UK parliament’s backing for the agreement if he is to take Britain out of Europe on Oct. 31. The Northern Irish party that Johnson needs to help ratify any agreement has refused to support it. Opposition Labour is unhappy and says it would vote against it. Johnson does not have a majority in the 650-seat parliament. Parliament defeated a previous deal struck by Johnson’s predecessor Theresa May three times.

India lines up top PSUs for stake sale
The Cabinet Committee on Economic Affairs will next week take up a proposal to reduce government stake in a number of state-owned companies below 51 per cent. These companies are those in which the government already holds less than 60 per cent stake, and could include IndianOil, NTPC, Bharat Electronics, BEML, Engineers India, GAIL India and Nalco

India's depressed auto mart sees upgrade in choice
Utility vehicles are set to overtake hatchbacks as the top-selling automobile segment in India next year, suggest sales trends, thanks to buyers’ growing preference for the spacious and safer SUVs. Utility vehicles accounted for 40% of the total passenger vehicle segment in September, driven by a set of new SUVs. That was just five percentage points behind hatchbacks.

E-tailers under probe for predatory pricing
The government is probing Flipkart and Amazon over alleged predatory pricing, commerce minister Piyush Goyal said. Warning of stringent action in case of violation, he said detailed questionnaires have been sent to the companies. Flipkart and Amazon both said they were complaint with laws

Meanwhile,

The simmering feud between IndiGo’s founders has now reached the US courts, with co-founder Rahul Bhatia seeking a legal order from a Maryland court to retrieve correspondence from IndiGo independent director Anupam Khanna. Bhatia has alleged that Khanna has been “acting in concert” with co-founder Rakesh Gangwal.

NOW, LET’S HAVE A QUICK LOOK AT SOME OF THE TOP CORPORATE NEWS THIS MORNING

>> DHFL says the quantum of its exposure to Sunblink was an outcome of market consolidation that caused several loans to various companies to be bunched together and Sunblink listed as the borrower.

>> Vodafone Idea bond yields surged 42.91%, pulling prices down in a secondary market transaction on Wednesday as investors turned apprehensive over its financials.

>> L&T Infotech reported a 10% fall in net profit, at Rs 360.4 crore for the quarter ended September 30, as wage hikes hurt the company’s bottomline.

>> Strong operating performance and likely divestments of an education business and a part of the promoters’ stake in Zee should help it repay Rs 7,000 crore of outstanding debt, which is due in six months.

>> Avantha Group’s Jhabua Power has received expressions of interest from JSW, Adani Power, NTPC and Tata Power-backed Resurgent Power

>> Altico Capital has proposed repaying banks in full over the next 4-5 years from the proceeds of asset sales, simultaneously offering to issue bonds upfront to its mutual fund lenders in a resolution plan

LASTLY a look at the oil price,

Oil prices were stable on Friday ahead of data that analysts say could show China, the world’s largest oil consumer, just recorded its weakest quarter of economic growth in nearly three decades. Brent crude oil futures fell by 9 cents to $59.82 a barrel while WTI crude futures rose by 4 cents to $53.97
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