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Today’s Live Business News: Jobs Report, Inflation and Stocks

The United States faces a default sometime between Dec. 21 and Jan. 28 if Congress does not act to raise or suspend the debt ceiling, a Washington think tank warned on Friday.

The projection from the think tank, the Bipartisan Policy Center, was a narrower window than it provided last month, and the nonpartisan group suggested that the actual deadline, or X-date, could be toward the earlier end of that range.

Democrats and Republicans appear to have tempered their tone around raising the debt limit this time around. While lawmakers have not settled on a path to lifting the borrowing cap, they are exploring a series of ways to raise it, including some that could ultimately hand more power to the White House to avoid the kind of standoffs that have routinely crippled Washington.

Republicans continue to publicly insist that Democrats must act alone to address the issue, while Democrats have countered that raising the borrowing cap is a shared responsibility given that both political parties have incurred big debts over the last several years.

“Those who believe the debt limit can safely be pushed to the back of the December legislative pileup are misinformed,” said Shai Akabas, the director of economic policy at the Bipartisan Policy Center. “Congress would be flirting with financial disaster if it leaves for the holiday recess without addressing the debt limit.”

Treasury Secretary Janet L. Yellen warned lawmakers in November that the United States could be unable to pay its bills soon after Dec. 15. During testimony before the Senate Banking Committee this week, she underscored the urgency of the matter.

“I cannot overstate how critical it is that Congress address this issue,” Ms. Yellen said. “America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery.”

In September, Ms. Yellen called for the debt limit to be eliminated, explaining that it had become a destructive policy that posed unnecessary risks to the economy. After approaching the first default in American history, Congress in October raised the statutory debt limit by $480 billion, an amount the Treasury Department estimated would allow the government to continue borrowing through early December.

Congressional leaders have been quietly discussing ways to address the debt ceiling, after Republicans warned that they would not help Democrats clear the 60-vote threshold needed to break a Republican filibuster against legislation to raise the borrowing cap.

Senators Chuck Schumer of New York, the majority leader, and Mitch McConnell of Kentucky, the minority leader, have spoken repeatedly in recent weeks about the issue, but they have remained tight-lipped in public about a possible solution.

The debate has been further complicated by former President Donald J. Trump and his continued influence over the Republican Party. He has repeatedly railed at Mr. McConnell and the other Republican senators who backed a procedural vote in October that cleared the way for Democrats to raise the debt limit.

But Mr. McConnell, while pushing for Democrats to raise the borrowing cap without help from his conference, pledged this week that a default would be avoided.

Credit…Al Drago for The New York Times

“Let me assure everyone the government will not default, as it never has,” Mr. McConnell said on Tuesday. Pressed further, he added, “We’re having useful discussions about the way forward.”

Cut out of both the $1.9 trillion coronavirus relief package that passed in March and the $2.2 trillion climate, tax and spending plan that Democrats are trying to push through the Senate, Republicans have refused to help Democrats accommodate debt incurred by both parties. They have taken that position even though leaders of both parties signed off on the spending that helped the debt balloon.

Democrats, in turn, have balked at a Republican demand to use a fast-track process known as budget reconciliation to raise the debt limit without Republican votes. Democrats used the process to pass the coronavirus relief package and they are using it again for the climate, tax and spending plan, but they have argued that Republicans should help keep the government from defaulting.

Aides in both parties, while cautioning that a solution has not been agreed to, noted that party leaders had so far refrained from publicly trading blame over the issue.

As a way of navigating around the impasse, some officials have discussed the possibility of handing the authority of raising the debt limit to the administration, while granting Congress the ability to disapprove the decision with just a simple majority.

Some lawmakers, however, may be unwilling to hand that power to the White House or lose a cudgel often used by the minority party to exert pressure, particularly while 60 votes are needed to end a filibuster in the Senate.

Other officials have floated attaching legislation raising the debt limit to the sprawling annual defense policy bill, which is the last major must-pass piece of legislation that lawmakers plan to approve in December.

But it is unclear whether such a plan would be successful: Attaching a debt ceiling increase could jeopardize the Republican votes needed to counter the bloc of liberal Democrats who typically oppose the defense bill in protest of military spending. Representative Kevin McCarthy, Republican of California and the minority leader, warned on Friday that such a maneuver could tank passage of the entire package.

The Bipartisan Policy Center said that there was additional uncertainty surrounding the debt limit this year because of the pandemic and the various economic relief programs that are still ongoing.

Dec. 15 is a particularly important date because the Treasury Department is required to make a $118 billion payment to the Highway Trust Fund. If corporate tax receipts that are due that day come in weak, Treasury could face a cash crunch and the United States could be unable to meet all of its obligations, such as paying out Social Security and funding military paychecks.

The Congressional Budget Office said this week that it expected that Treasury might run out of cash by the end of December if Congress failed to act. The budget office suggested, however, that Treasury might be able to defer some Highway Trust Fund payments that were mandated in the recently passed infrastructure law, potentially staving off a default until sometime in January.

Along with its updated projection, the Bipartisan Policy Center unveiled a new proposal for dealing with the debt limit, although it is unlikely to help lawmakers this time around.

The proposal, which is being introduced by Representatives Jodey C. Arrington, Republican of Texas, and Scott Peters, Democrat of California, would establish a process giving the president authority to suspend the debt limit through the following fiscal year as long as Congress does not pass a resolution blocking the move within 30 days. The president would then have to offer a debt reduction proposal for Congress to consider separately.

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Business News and FOMC Meeting: Live Updates

ImageThe future of Jerome H. Powell as the Fed chair is being debated within the Biden administration, complicating the decision on rates.
Credit…Stefani Reynolds for The New York Times

The Federal Reserve’s November policy statement, which will be released on Wednesday afternoon, is expected to include plenty of news about the central bank’s short-term plans to scale back its purchases of government-backed bonds. Yet Wall Street is most acutely focused on what comes next.

Jerome H. Powell, the Fed chair, and his fellow policymakers are expected to announce a plan to slow their $120 billion in monthly asset purchases, which they had been using to support the economy during the pandemic. But with inflation at a three-decade high, investors are eager to hear how worried officials are about prices, and to glean what that might mean for the future of the Fed’s other monetary tool, its policy interest rate.

The Fed’s main rate is its more traditional and more powerful monetary lever, and it has been set to near zero since March 2020. While policymakers are set to leave it at rock bottom this week, other central banks around the world are moving toward rate increases as supply chain snarls and labor shortages help to fuel inflation. Economists and investors increasingly expect that America’s central bank will follow suit next year.

When and how quickly the Fed might lift borrowing costs is important for the economy, because higher rates would cool down growth by slowing borrowing and spending, weighing on business investment and home buying and weakening the job market.

  • The Fed’s statement. The policy-setting Federal Open Market Committee will release its statement at 2 p.m. and the central bank is widely expected to announce its plans to taper off bond purchases.

    Investors will also look for an update to the Fed’s discussion about inflation. In its September policy statement, the Fed said “inflation is elevated, largely reflecting transitory factors.” The central bank noted that prices had previously run persistently below the Fed’s goal, language that suggested high prices were not a long-term threat.

  • Mr. Powell’s price forecast. The Fed chair has been clear that he thinks it is time to scale back its bond purchases but not to raise interest rates, and that the pace at which the Fed tapers is not meant to signal when borrowing costs are going to move up. But he and his colleagues have also sounded increasingly worried about price increases, which they had previously argued would be “transitory.” While Mr. Powell is likely to maintain that rapid price increases should fade as the economy normalizes, he will probably also stress the uncertainty around that forecast.

  • Mr. Powell’s take on inflation expectations. Fed officials had pointed to inflation expectations as an encouraging sign that consumers and businesses expected price gains to simmer down with time. But several price outlook gauges have now moved higher. Most are still at historically normal levels, but the continuing increases are sure to catch policymakers’ attention.

  • Mr. Powell’s thoughts about the inflation and jobs trade-off. The Fed is trying to avoid raising rates quickly in response to today’s hot inflation, worried that it will cool off the economy just as supply chains begin to right themselves and booming demand for goods fades — a cocktail what would naturally bring inflation back down. That could unnecessarily slow the economy, weakening hiring at time when millions of jobs remain missing compared with before the pandemic. After all, the Fed has two goals: stable prices and full employment.

  • The global context. High inflation isn’t a problem made in America. Prices are surging across many wealthy nations. The Bank of England could become the first major central bank to lift interest rates when it meets on Thursday. The Reserve Bank of Australia has ditched part of its economy-stoking monetary policy, and the Bank of Canada is walking back its own stimulus package.

  • The politics. President Biden’s White House studiously avoids commenting on Fed policy in deference to the central bank’s independence. But this is a high-stakes meeting for Mr. Powell. It could well be the last one before the administration announces whether it will keep him or replace him at the central bank’s helm after his term ends early in 2022. Some commentators expect the administration will want a Fed chair who favors growth-friendly policies, but it is also the case that the White House is focused on inflation. Mr. Biden himself has demurred when asked about his criteria and whether he has made a decision yet.

    “I’m not going discuss it with you because that’s in train now, we’ll be making those announcements fairly quickly,” Mr. Biden said during a news conference Tuesday when asked about Mr. Powell’s potential renomination.

Credit…Manu Fernandez/Associated Press

Algeria has stopped supplying gas through one of its main pipelines that crosses Morocco, a move that could threaten Spain with reduced supplies or higher prices for natural gas as winter approaches and energy costs are soaring.

The shutdown, which began Monday, is the result of a longstanding territorial feud between Morocco and Algeria. It is meant to deprive Morocco of natural gas, which generates about 10 percent of the country’s electricity, as well as tens of millions of dollars of transit fees paid by users of the pipeline.

But it may also have a heavy impact on Spain, which imports about half of its gas from Algeria. Spaniards, like others throughout Europe, have been struggling with higher electrical bills because of a surge in the price of natural gas. The government in Madrid has had to take emergency measures to soften the blow on consumers.

The pipeline, with a capacity of about 13 billion cubic meters a year, is not the only way for Algerian gas to reach Spain. A smaller undersea pipeline that links Algeria and southern Spain can carry about eight billion cubic meters a year, and Sonatrach, the Algerian national energy company, recently said that it hoped to increase its output to 10.5 billion cubic meters by the end of November.

Algeria is also proposing to make up for Spain’s lost gas by chartering tankers to transport liquefied natural gas across the Mediterranean, even as the cost of such shipments has surged recently.

This week’s move by the Algerian government comes after it broke off diplomatic relations with Morocco in August, in part to protest Morocco’s efforts to control the Western Sahara, a disputed territory. Since then Algeria has also closed off its airspace to Moroccan aircraft.

The dispute was rekindled last year when the Polisario Front, a Western Sahara separatist group backed by Algeria, broke off a longstanding cease-fire with Morocco.

On Sunday the Algerian government said that Sonatrach would end its commercial activities with Morocco because that country’s “hostile” actions threatened “the national unity” of Algeria.

Morocco said the gas shut-off would have an “insignificant” impact on its electricity network. Morocco had been using Algerian gas to power two electricity plants that are partly operated by Spanish companies.

After an emergency meeting in Algiers last week, Spain’s environment and energy minister, Teresa Ribera, said that she was confident that Algeria could “guarantee that everything works in the most fluid and best manner possible” to keep gas supply flowing to Spain.

Some analysts are warning that it will be a challenge for Algeria to raise the capacity of the undersea pipeline or charter more liquefied natural gas ships, given that there is a shortage of available vessels.

Gonzalo Escribano, an energy expert at the Real Instituto Elcano, a Madrid-based think tank, said that Algeria’s pipeline closing could result in Spain paying more for the gas, given the high cost and complicated logistics of shipping liquefied natural gas, but it should not pose a major supply risk ahead of the winter. Despite the latest tensions, he said, “Algeria has historically always honored its contracts and political pledges in this field.”

For Morocco, however, Mr. Escribano said, “the situation is much more complicated,” both in terms of losing Algerian gas that had fueled its electricity grid and losing the fees that it had received from the gas transiting through the pipeline.

Credit…Caitlin O’Hara for The New York Times

Zillow, the real estate website known for estimating house values, said on Tuesday that it would exit the business of rapidly buying and selling houses amid heavy losses and that it planned to let go about nearly 25 percent of its employees.

The announcement was a major strategic retreat and a black eye for Richard Barton, Zillow’s chief executive, who founded the company 16 years ago and has long talked about transitioning Zillow’s popular website into a marketplace. Last year, Mr. Barton predicted Zillow Offers, which made instant offers on homes in a practice known as iBuying, could generate $20 billion a year.

On Tuesday, Zillow, which said it has 8,000 employees, said the division had been the source of huge losses and had made the company’s overall bottom line unpredictable. Zillow Offers lost more than $420 million in the three months ending in September, roughly the same amount that the company had earned in total during the prior 12 months.

“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated,” Mr. Barton said in a statement accompanying its quarterly financials.

Mr. Barton, speaking on a conference call with analysts on Tuesday afternoon, said the decision had “weighed heavily” on him. “We could blame the current losses on exogenous market events,” Mr. Barton said. “But it would be naïve to predict that unpredictable events won’t happen in the future.”

In all the company lost nearly $330 million in the third quarter, which was far worse than Wall Street analysts had predicted. The company made a $40 million profit in the same period a year ago.

Shares of Zillow have fallen more than 50 percent from a high of nearly $200 in February, when it was still a darling of investors as the housing market heated up. The stock dropped 11.5 percent on Tuesday to about $85.50 before it released its financials, and a further 7.5 percent in after-hours trading. (Even so, Zillow’s shares are worth double what they were at the beginning of the pandemic.)

Three years ago, the company announced plans to employ its pricing estimates to buy and sell houses. Now, Zillow is sitting on thousands of houses worth less than what the company paid for them. Last month, Zillow announced it would temporarily stop buying new homes. At the time, it blamed a lack of workers to fix up and sell the houses it had bought. But on Tuesday, Mr. Barton said using its algorithm to buy and sell houses had not produced predictable profits. It is now looking to offload its remaining 7,000 houses.

It appears the company underestimated the risk of holding houses in between transactions, which was a departure from the low-risk, high-margin ad business. And it tried to quickly ramp up its home-flipping business to 5,000 transactions a month, which Mr. Barton set as a goal, in a housing market that was already low on inventory and was starting to cool off.

Zillow’s stumble also raises questions about its core product, which is built around its value estimates. Aaron Edelheit, who began buying houses in the wake of the Great Recession, tweeted his thanks to Zillow for paying “such an extremely high price” for one of his properties this summer. “It appeared they were panic buying,” Mr. Edelheit, who is leaving the real estate market to focus on cannabis, told The New York Times’s DealBook newsletter. “I didn’t get it. I should have shorted the stock.”

Credit…Scott Olson/Getty Images

For the second time in under one month, workers at the agriculture equipment maker Deere & Company rejected a contract proposal negotiated by their union on Tuesday, extending a strike that began in mid-October.

Roughly 10,000 workers, primarily at plants in Iowa and Illinois, on Oct. 10 voted down an earlier agreement negotiated by the United Automobile Workers union.

“The strike against John Deere & Company will continue as we discuss next steps with the company,” the union said in a statement.

Marc A. Howze, a senior Deere official, said in a statement that the agreement would have included an investment of “an additional $3.5 billion in our employees, and by extension, our communities.”

“With the rejection of the agreement covering our Midwest facilities, we will execute the next phase of our Customer Service Continuation Plan,” the statement continued, alluding to its use of salaried employees to run facilities where workers are striking.

Many workers had complained that wage increases and retirement benefits included in the initial proposal were too weak given that the company — known for its distinctive green-and-yellow John Deere products — was on pace for a record of nearly $6 billion in annual profits.

According to a summary produced by the union, wage increases under the more recent proposal would have been 10 percent this year and 5 percent in the third and fifth years. During each of the even years of the six-year contract, employees would have received a lump-sum payment equivalent to 3 percent of their annual pay.

That was up from earlier proposed wage increases of 5 or 6 percent this year, depending on a worker’s labor grade, and 3 percent in 2023 and 2025.

The more recent proposal also included traditional pension benefits for future employees and a post-retirement health care fund seeded by $2,000 per year of service, neither of which were included in the initial agreement.

Chris Laursen, a worker at a John Deere plant in Ottumwa, Iowa, who was president of his local there until recently, said he voted in favor of the new agreement after voting to reject the previous one.

“We have the support of the community, we have the support of workers all around the country,” Mr. Laursen said. “If we turned down a 20 percent increase over a six-year period, substantial gains to our pension plan, I’m afraid we would lose that.”

But Mr. Laursen said he still had concerns about the vagueness of the company’s commitment to improving its worker incentive plan, and such concerns appeared to weigh on his co-workers, 55 percent of whom voted to reject the newer contract.

One wrinkle complicating the vote was suspicion among rank-and-file workers toward the union leadership related to a series of corruption scandals, which have led to more than 15 convictions, including two recent U.A.W. presidents.

The work stoppage at Deere was part of an uptick in strikes around the country last month that also included more than 1,000 workers at Kellogg and more than 2,000 hospital workers in upstate New York.

Overall, more than 25,000 workers walked off the job in October, versus an average of about 10,000 in each of the previous three months, according to data collected by researchers at Cornell University.

Credit…Alberto Pezzali/Associated Press

A coalition of the world’s biggest investors, banks and insurers that collectively control $130 trillion in assets said on Wednesday that they were committing to use that capital to hit net zero emissions targets in their investments by 2050, in a push that would make limiting climate change a central focus of most major financial decisions for decades to come.

The group, called the United Nations Glasgow Financial Alliance for Net Zero, is made up of 450 banks, insurers and asset managers in 45 countries. It said the pledge amounted to a transformation of the global financial system and would help businesses, financial firms and entire industries undergo fundamental restructuring for a carbon-neutral future.

“We now have the essential plumbing in place to move climate change from the fringes to the forefront of finance so that every financial decision takes climate change into account,” Mark Carney, the former head of the Bank of England, who is leading the alliance, said in a statement.

The agreements are largely voluntary. But they show a commitment by a broad range of financial institutions — banks, insurers, pension funds, asset managers, export credit agencies, stock exchanges, credit rating agencies, index providers and audit firms — to have emissions slashed in the companies in which they invest, and to have their lending aligned toward the target of restricting a global temperature rise to 1.5 degrees Celsius above preindustrial levels.

The companies agreed to undergo a review every five years to measure how well they are hitting these targets. They also said they would report the emissions they finance ever year.

But critics said the pledges fell short because they don’t commit investors to stop placing money in fossil fuels.

“This announcement yet again ignores the biggest elephant in the room: fossil fuel companies,” Richard Brooks, the climate finance director of STAND.earth, an environmental group, said in a statement. “We cannot keep under 1.5 degrees if financial institutions don’t stop funding coal, oil and gas companies.”

The coalition, which was created in April, is chaired by Mr. Carney, the United Nations’ climate finance envoy. Among its members are the investment management company BlackRock, HSBC Holdings, Morgan Stanley and Deutsche Bank.

Critically, the initiative would create a new body to hold investors and companies to account on climate-related goals.

The alliance also said that nearly 40 central banks in countries generating two-thirds of the world’s emissions would introduce stress tests to gauge how financial firms are handling climate-related risks. Some, including the European Central Bank and Bank of England, plan to administer the stress tests to the banks they supervise early next year.

The alliance also pledged to scale more private capital flows to emerging and developing economies, which are among those facing the most brutal costs of climate change.

Mr. Carney said on Tuesday at the Climate Horizon Summit in Glasgow that the finance industry was moving away from just seeing global warming as a risk to their business, and instead considering how the industry could be part of the solution.

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Business news live – The Hindu

Morning agenda:

Oil extends gains in Asian trading after rising for seven weeks. A global energy crunch due to shortage of coal and gas ahead of winter is pushing the price of crude oil. Brent futures rose by over $1 to $85.89 a barrel.

China’s September oil processing rate fell on feedstock shortage and environmental inspections, which cut production. The country’s economy grew at the slowest pace in a year in the third quarter, hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks.

Japan’s Prime Minister Fumio Kishida has urged the country’s oil producers to increase output to support industries hit by high energy costs.

In India, diesel consumption fell in the first half of October compared to same period last year, according to preliminary sales data. Diesel sales by the country’s state fuel retailers came in at 2.4 million tonnes during Oct. 1-15, a decline of about 9.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from last year and down 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the same period in 2019, the data showed. – John Xavier

For more news on global economy, business and markets, read our live blog

3:13 P.M.

DMart parent’s stock tumbles

Shares of DMart’s owner Avenue Supermarts tumbled 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} briefly after hitting a record high, over investor concerns about valuation.

The company reported a 110{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} surge in consolidated net profit for the September quarter earlier today. However, several brokerages flagged limitations to the stock’s upside due to high valuation.

2:55 P.M.

Sterlite Power bags ₹324 crore project

Sterlite Power has bagged a power transmission project worth ₹324 crore. The Nangalbibra-Bongaigaon interstate power transmission project consist of a new 220/132 kV substation at Nangalbibra and laying of 130 km of 400kV D/c transmission line connecting Bongaigaon in Assam to Nangalbibra in Meghalaya across the river Brahmaputra.

2:40 P.M.

Russia boosts oil and gas output

Russia has cranked up oil and gas condensate output to 10.84 million barrels per day (bpd) over October 1-17, an increase from 10.72 million bpd on average in the previous month. The country’s decision to increase production comes as the OPEC+ phases out supply cuts due to rise in demand.

2:25 P.M

Housing sales grow in Bengaluru, Mumbai

Housing sales in eight major cities in the country grew 59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 55,907 units in the July-September period, compared with the year ago period, indicating signs of recovery. Eight prime residential markets that witnessed a remarkable upswing during the period were Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. These cities showed a three-fold jump to 65,211 units.

The demand for residential properties bounced back in the September ending quarter after a drop in the previous quarter, PropTiger, one of the leading housing brokerage firms, said in a report. Housing units in the price bracket of less-than-₹45-lakh contributed the most to quarterly sales with 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} share, as per the report.

2:15 P.M

SEBI gives nod for Star Health, Adani Wilmar IPOs

Capital markets regulator Sebi has allowed six companies, including Adani Wilmar, Star Health & Allied Insurance, and Nykaa to launch initial public offerings (IPOs).

Adani Wilmar will issue new equity shares worth up to ₹4,500 crore. And, Star Health and Allied Insurance Company’s IPO will make a fresh issue of equity shares worth ₹2,000 crore.

The IPO of FSN E-Commerce Ventures, which runs online marketplace for beauty and wellness products Nykaa, will offer new equity shares worth ₹525 crore.

Penna Cement Industries, Latent View Analytics and Sigachi Industries are the other three firms that received Sebi’s clearance.

1:55 P.M.

Japan PM’s pandemic-relief plans

Japan’s Prime Minister Fumio Kishida said the country has to issue government bonds to fund the pandemic-relief measures in the world’s third largest economy.

“Japan is still in a crisis situation. To protect people’s lives and livelihood, we should decisively resort to government bond issuance to fund necessary policies,” Kishida said

12:40 P.M.

Rupee trades flat against U.S. dollar

After posting gains for two straight days last week, the Indian rupee was trading marginally lower against the U.S. dollar today. The domestic unit opened on a steady note against the greenback and traded cautiously between a high of 75.26 and a low of 75.29. The Indian currency is tracking a stronger greenback.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at 94.09.

12:10 P.M.

Oil continues its rally

Oil price surged, hitting their highest level in years on rising gas and coal prices, and increase in demand. Brent crude rose 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $85.76 a barrel, while the U.S. WTI gained 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to $83.51 a barrel.

Brent hit a session-high of $86.04, the highest since October 2018. WTI touched a session-high of $83.73, highest since October 2014. Both contracts rose by at least 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last week.

11:50 A.M.

Japan’s PM to country’s oil producers

Japan’s Prime Minister Fumio Kishida urged oil producers to increase output and take measures to support industries facing high energy costs.

Kishida said he has instructed his cabinet to take “necessary action flexibly” to ease the pain caused by high oil prices, which could potentially damage the country’s economic recovery.

“We’re closely watching the impact oil price moves have on the domestic industry and people’s livelihood,” Kishida noted.

Japanese Prime Minister Fumio Kishida speaks during a news conference at the Prime Minister's official residence Thursday, October 14, 2021, in Tokyo.

Japanese Prime Minister Fumio Kishida speaks during a news conference at the Prime Minister’s official residence Thursday, October 14, 2021, in Tokyo.
 
| Photo Credit: AP

 

11:20 A.M.

China’s September coal output dips

China’s coal output dipped in September compared to August, as production was curbed in some of the major coal producing regions due to tighter safety inspections.

China, the world’s biggest coal producer and consumer, produced 334.1 million tonnes of the fuel last month, from 335.24 million tonnes in August, the National Bureau of Statistics data showed. The coal output in September was 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower than the year ago period.

As China continues to suffer under power shortages, the government has initiated measures to increase coal output. China’s data last week showed that “current” daily coal output rose to over 11.2 million tonnes, the highest since February.

10:25 A.M.

Petrol, diesel price hiked again

Petrol and diesel prices in the country are at record highs after another round of rate hike on Sunday. Prices of petrol and diesel were increased by 35 paise per litre. The auto fuels now cost 33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} more than the rate at which aviation turbine fuel or jet fuel is sold to airlines.

In Delhi, Petrol is now sold at ₹105.84 per litre, and diesel at ₹94.57 a litre, both prices touching record high levels.

With this rise, petrol is now at ₹100-a-litre mark or more in all State capitals while diesel has touched the 100-mark in over a dozen states.

10:15 A.M.

China’s GDP growth hits 1-year low

China’s economy grew at the slowest pace in a year in the third quarter, hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks. The country’s gross domestic product (GDP) grew 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in July-September from a year earlier. China’s recovery is losing steam after a rebound. 

A slowing property sector is also weighing on the country’s economy. Property stocks in the country plunged even as the People’s Bank of China said spillover effects from Evergrande Group’s debt woes were controllable.

The CSI300 Real Estate Index, which tracks China’s biggest developers, fell more than 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while an index tracking the broader sector was down roughly 1.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The People’s Bank of China Governor Yi Gang said on Sunday the economy faces challenges such as default risks for certain firms due to “mismanagement”, and that authorities are keeping a close eye “so they do not become systematic risks”.

9:39 A.M.

Asian market update | Sensex opens

Indian indices opened on a strong note today amid mixed global cues. The BSE Sensex hit a new all-time high at 61,894.33, after opening over 500 points higher than its previous close at 61,817.32. Similarly, NSE Nifty gained 161.55 points to open at 18,500.10, a fresh record high.

Shares in mainland China and Hong Kong plunged following the release of Chinese economic data for the third quarter, which showed that the world’s second largest economy grew slower than expected.

China’s gross domestic product grew 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in July-September from a year earlier. Chinese blue chips fell 1.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Hong Kong’s Hang Seng lost 0.45{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trade after opening in green.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while Japan’s Nikkei lost 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. South Korea’s Kospi opened at 3,017.48, marginally higher than its previous close.

Decline in the Asian market comes after stocks globally ended last week in a bullish mood posting their best day in five months on Friday.

 

 

—-  Edited by John Xavier

 

(With inputs from Reuters, PTI and other news agencies.)

Posted on

Business news live: Sensex soars to a new high

Today’s agenda:

Investment activity in India rebounded in the September ending quarter, but growth was not spread across all sectors or states. Gujarat secured the highest amount of fresh investment commitments among the top 5 states, which included Maharashtra, Telangana, Karnataka and Odisha. Manufacturing led the pack among industries, and irrigation and infrastructure lagged.

Coal crisis hit the country’s Aluminium sector as the industry demanded immediate resumption of supplies from Coal India for its survival.

In other developments, the U.S. Federal Reserve released minutes of its September 21-22 meeting, which revealed the Fed plans to scale back its bond buying programme next month. In China, the Evergrande crisis sapped investors appetite for Chinese dollar bond. – John Xavier

Follow our live blog for more on business, economy and markets

4:30 P.M.

China’s coal prices near record high

 China coal prices held near record high after cold-weather prompted power plants to stock up on fuel to ease an energy crunch.

China has been grappling with a widening power crisis due to a shortage of coal, record-high fuel prices and booming post-pandemic demand.  

Soaring energy prices sent producer prices to their highest in at least 25 years in September, rising 10.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a year earlier, and cold winter weather is likely to worsen the situation.

Beijing has ramped up efforts to contain coal price rises. Some of it includes raising domestic coal output, rationing of power at factories and assuring energy supplies will be secured for the winter heating season.

4:00 P.M.

Sensex soars to a new high

Equity benchmark Sensex rallied 569 points to close at a new high amid positive macro cues and upbeat global markets. The sense rose 0.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to close above 61,000 for the first time at 61,305.95.

The Nifty also surged 0.97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a new lifetime closing high of 18,338.55.

ITC was the top gainer in the Sensex pack, followed by HDFC Bank, and PowerGrid while TCS, HCL Tech, and Bajaj Finance were among the laggards.

The Indian market stayed in green due to the upbeat global market and favourable inflation data. 

The wholesale price-based inflation eased to 10.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September, and retail inflation in September too slowed to a five-month low of 4.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on moderating food prices.

In Asia, Seoul and Tokyo ended with strong gains, while Shanghai was in the red. Stock exchanges in Europe were trading on a positive note in mid-session deals.

3:30 P.M.

Passenger vehicle sales drop  

Passenger vehicle wholesales in India fell 41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-on-year in September as the semiconductor shortage hit production of automobiles.

Passenger vehicle sales last month stood at 1,60,070 units compared with 2,72,027 units in the same month a year ago. 

According to the Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches to dealers plunged 17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 15,28,472 units, compared to 18,49,546 in September 2020.

While demand for automobiles is picking up, the semiconductor chip shortage has been a major concern for the industry. During the festive season when sales usually peak, customers have to wait for a long time on popular models of some segments. 

3:00 P.M.

Energy crisis could threaten global economic recovery: IEA

The global energy crunch could boost oil demand by half a million barrels per day (bpd), fuelling inflation and slowing the world’s recovery from the COVID-19 pandemic, the International Energy Agency (IEA) said. 

Oil and natural gas prices have skyrocketed to multi-year highs recently, leading to record power prices across the world. 

“Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming,” the IEA said in its monthly oil report.

Due to an increased demand for oil,  global oil demand next year is now projected to recover to pre-pandemic levels. 

2:15 P.M.

Govt approves proposals for telecom PLI scheme

The Department of Telecom approved 31 proposals of companies including Nokia India, HFCL, and Foxconn requiring an investment of  ₹3,345 crores over the next four and a half years.

The other firms selected for the PLI scheme are HFCL, Flextronics, Coral Telecom, VVDN Technologies, Akashastha Technologies, and GS India.

With the scheme for telecom gear manufacturing, the government aims to encourage the production of equipment worth ₹2.44 lakh crore and create direct and indirect employment for about 40,000 people.

1:30 P.M.

Oracle opens Israel cloud centre to withstand rocket attacks

Oracle opened a public cloud centre in Israel to let firms and Israeli people store their data on local servers rather than relying on other countries. 

The underground data centre, which is the first of two planned public cloud centres in the country is built below one of Jerusalem’s technology parks. 

The nine floors centre, estimated to have cost hundreds of millions of dollars, is designed to work even during the potential terror.  The company claims it can withstand a rocket direct, a missile direct hit or even a car bomb.

1:00 P.M.

WPI inflation eases to 10.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September

The wholesale price-based inflation eased to 10.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September on moderating food prices despite a rise in prices of crude petroleum. It stood at 11.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in August.

Inflation in food articles eased for the fifth straight month, recording 4.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September from 1.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in August, primarily on low vegetable prices. Pulses prices continued to spike at 9.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Retail inflation in September eased to a five-month low of 4.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on moderating food prices.

12:30 P.M.

EU rules will raise cybercrime risks: Apple 

Apple said EU’s draft rules that will allow users to install software from outside its App Store would boost cybersecurity risk.

On the contrary, the Coalition for App Fairness, which includes Spotify, Match Group and Epic Games, argued that built-in security measures such as encrypted data and antivirus programmes provide security to devices, and not its App Store. 

The group wants regulators to loosen Apple’s grip on its App Store so they can bypass it to reach Apple’s hundreds of millions of users and also to avoid paying commissions of up to 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for purchases made in the Store.

11:30 A.M.

Rupee rises against US dollar

The Indian rupee rose 12 paise to 75.25 against the US dollar in opening trade on heavy buying in domestic equities and fresh foreign fund inflows. 

At the interbank foreign exchange, the domestic unit opened strong at 75.27 against the US dollar before gaining further to 75.25, a 12 paise rise against the previous close.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 94.05.

10:45 A.M.

U.S. Federal Reserve to reduce bond purchases

According to the minutes of the September 21-22 Fed meeting, the U.S. central bank would scale back its bond-buying programme, and conclude its $120 billion asset purchases by the middle of next year. 

Policymakers discussed cutting the Fed’s purchases of Treasuries by $10 billion a month and those of mortgage-backed securities by $5 billion a month. However several participants preferred a faster reduction.

If a decision to begin tapering is agreed upon in the Fed’s next policy meeting scheduled at  November 2-3,  the process could begin by the middle of that month or mid-December.

10:00 A.M.

Infosys, Wipro announce Q2 results

Infosys reported a 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise in its second-quarter net profit on growth across verticals and geographies, strong revenue contribution from the Daimler deal, and higher adoption of digital transformation.

The net profit of India’s second-largest IT service company stood at ₹5,421 crore as compared with ₹4,845 crore in the same quarter a year ago.

Infosys also raised its annual revenue outlook due to an increased demand for its software services from global businesses. 

Wipro posted a 17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} jump in consolidated net profit for the quarter ended September 30. The net profit rose to ₹2,930.6 crore as compared with ₹2,484.4 crore in the same period a year ago.

Consolidated revenue of Wipro increased by about 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to ₹9,667.4 crore during the quarter compared to ₹15,114.5 crore it registered in the corresponding quarter of 2020-21.

Wipro said it is in position to hire 25,000 people in the next financial year and is also resuming work back from office in a staggered manner starting with fully vaccinated senior colleagues in India.

9:30 A.M.

Asian markets open | Sensex update

India’s benchmark equity indices opened at fresh record high. At 9:17 IST, the benchmark index rose 388.11 points to 61125.16 and the Nifty surged 117.70 points or 0.65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 18279.50.

Most Asian markets rose as investors anticipated that inflation will push rate hikes around the world.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} while Japan’s Nikkei surged 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Overnight on Wall Street the S&P 500 rose 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and in early Asia trade S&P 500 futures were also up 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The minutes from last month’s Federal Reserve meeting showed policymakers’ growing concern about inflation and a general agreement to start tapering asset purchases soon.

 

—-  Edited by John Xavier

 

(With inputs from Reuters, PTI and other news agencies.)

Posted on

Live Business News: Nobel in Economics, Southwest Airlines Delays, I.M.F. Outlook

ImageA Nobel Prize medal in 2020.
Credit history…Jacquelyn Martin/Associated Push

David Card, Joshua D. Angrist and Guido W. Imbens have produced a job of studying unintended experiments — Mr. Card in labor economics and Mr. Angrist and Mr. Imbens in analyzing cause and result.

On Monday, their operate earned them the 2021 Nobel Memorial Prize in Financial Sciences.

All 3 winners are primarily based in the United States. Mr. Card, who was born in Canada, performs at the University of California, Berkeley. Mr. Angrist, born in the United States, is at M.I.T. and Mr. Imbens, born in the Netherlands, is at Stanford College.

“Uncovering causal associations is a key obstacle,” said Peter Fredriksson, chairman of the prize committee. “Sometimes, mother nature, or coverage modifications, supply conditions that resemble randomized experiments. This year’s laureates have proven that this sort of normal experiments assistance solution important concerns for culture.”

Mr. Card’s do the job has challenged typical knowledge in labor economics — including the plan that bigger least wages led to decrease work. He was a co-writer of influential reports on that subject with Alan Krueger, who died in 2019, including a person that applied the pure geographical border among New Jersey and Pennsylvania to check the result of a minimum wage change. Comparing outcomes amongst the states, the research discovered that employment at fast food restaurants was not influenced by an increase in New Jersey’s minimum amount wage.

Mr. Angrist and Mr. Imbens have contributed to the way researchers believe about and analyze natural experiments.

Two American economists affiliated with Stanford University, Paul R. Milgrom and Robert B. Wilson, gained the 2020 Nobel in economics for enhancements to auction principle. Abhijit Banerjee and Esther Duflo of M.I.T. and Michael Kremer of Harvard gained in 2019 for their experiment-dependent study in improvement economics.

The award, formally named the Sveriges Riksbank Prize in Financial Sciences in Memory of Alfred Nobel, has been specified 53 occasions due to the fact 1969.

  • The Nobel Prize in Physiology or Medicine was awarded jointly to David Julius and Ardem Patapoutian, who independently learned crucial mechanisms of how people sense warmth, chilly, contact and their very own bodily actions.

  • Syukuro Manabe, Klaus Hasselmann and Giorgio Parisi ended up recognized with the Nobel Prize in Physics for do the job that “laid the foundation of our know-how of the Earth’s local weather and how humanity influences it.”

  • The Nobel Prize in Chemistry went to Benjamin Listing and David W.C. MacMillan for their development of a new instrument to construct molecules, do the job that has spurred improvements in pharmaceutical study and permitted experts to assemble catalysts with considerably less effects on the setting.

  • Abdulrazak Gurnah was awarded the Nobel Prize in Literature for “his uncompromising and compassionate penetration of the results of colonialism and the fate of the refugee in the gulf involving cultures and continents.”

  • Two journalists hundreds of miles aside, Maria Ressa of the Philippines and Dmitri A. Muratov of Russia, ended up honored with the Nobel Peace Prize for their tireless initiatives to keep the strong to account.

Credit history…David Zalubowski/Linked Push

Vacationers flying Southwest Airways more than the weekend confronted hundreds of canceled flights as well as annoying delays, with the airline scrapping about a quarter of all its flights on Saturday and Sunday.

The airline canceled just over 800 flights on Saturday, or 24 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of all its scheduled flights, in accordance to FlightAware, a monitoring services. By midday on Sunday, Southwest had currently canceled over a thousand flights, or 28 percent of its schedule, with hundreds far more delayed.

“We experienced weather issues in our Florida airports at the starting of the weekend, challenges that ended up compounded by unpredicted air targeted traffic management challenges in the same region, triggering delays and prompting substantial cancellations,” the airline claimed in a assertion on Sunday. “We’ve continued diligent operate throughout the weekend to reset our operation with a target on acquiring aircraft and crews repositioned to consider care of our clients.”

Southwest additional that recovering from the disruption was much more challenging than regular mainly because it is functioning less flights than before the pandemic, complicating attempts to reschedule travellers.

Posted on

Business News Live: India coal crisis brews as power demand surges

12:10 P.M.

B C Patnaik takes charge as MD of LIC

nsurance behemoth LIC on Friday said B C Patnaik has taken charge as the managing director (MD) of the company, PTI reported.

He was appointed as Managing Director vide a government notification dated July 5, 2021, LIC said in a statement.

Prior to taking charge as MD of LIC, Patnaik was the Secretary General, Council for Insurance Ombudsman, (CIO) Mumbai, it said

11:55 A.M.

India coal crisis brews as power demand surges

Indian utilities are scrambling to secure coal supplies as inventories hit critical lows after a surge in power demand from industries and sluggish imports due to record global prices push power plants to the brink, Reuters reported.

Over half of India’s 135 coal-fired power plants have fuel stocks of less than three days, government data shows, far short of federal guidelines recommending supplies of at least two weeks.

Prices of power-generation fuels are surging globally as electricity demand rebounds with industrial growth, tightening supplies of coal and liquefied natural gas. India is competing against buyers such as China, the world’s largest coal consumer, which is under pressure to ramp up imports amid a severe power crunch.

11:45 A.M.

Piramal Capital & Housing Finance acquires DHFL

Piramal Enterprises said its subsidiary, Piramal Capital & Housing Finance Limited (PCHFL), has merged with debt-ridden Dewan Housing Finance (DHFL) after paying Rs 34,250 crore to the creditors of the troubled housing finance company, PTI reported.

PCHFL has merged into DHFL with effect from September 30, 2021 pursuant to the reverse merger as contemplated under scheme of arrangement provided under the resolution plan, Piramal Enterprises said in a regulatory filing.

“Consequent to the Reverse Merger, DHFL shall issue such number of equity shares to the shareholders of PCHFL i.e. to Piramal Enterprises Limited (PEL), in accordance with the scheme of arrangement provided under the resolution plan,” it said.

11:30 A.M.

Nissan reports over three-fold increase in domestic sales in September

Automaker Nissan India said its domestic wholesales rose over three fold to 2,816 units in September, up from 780 units in the same month of last year, PTI reported.

The company said its exports last month stood at 5,900 units, compared with 211 units in September 2020.

In the first half of the current financial year, the automaker said it has achieved domestic wholesales of 18,591 units with a growth of 459 per cent over last year.

11:20 A.M.

Paras Defence lists with over 171{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} premium

Shares of Paras Defence and Space Technologies made a dream debut and jumped over 171{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} against its issue price of Rs 175, PTI reported.

The stock listed at Rs 475, a jump of 171.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the issue price on BSE. It further soared 185{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to Rs 498.75. On NSE, it listed at Rs 469, rallying 168 per cent from the issue price.

The company commanded a market valuation of Rs 1,945.13 crore on the BSE.

11:10 A.M.

India’s power consumption up 1.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September

India’s power consumption grew 1.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September to 114.49 billion units (BU), showing subdued recovery according to power ministry data, PTI reported.

In the entire month of September last year, the power consumption was 112.43 BU, higher than 107.51 BU in the same month in 2019.

Experts say the recovery in power demand and consumption in September 2021 remained subdued mainly because of heavy rains in the month.

11:00 A.M.

Toyota Kirloskar posts 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} growth in domestic sales

Toyota Kirloskar Motor (TKM) reported 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} growth in its domestic wholesales to 9,284 units in September as compared with same month last year, PTI reported. The carmaker had dispatched 8,116 vehicles in September 2020.

“Demand in the personal mobility segment continues as we step into the festive months. Customer orders have been on a constant rise and we are witnessing a steady growth, ever since the second wave,” TKM Associate General Manager (Sales and Strategic Marketing) V Wiseline Sigamani said in a statement.

Crysta and Fortuner continue to dominate their respective segments, both garnering huge customer interests and orders, he added.

10:45 A.M.

India’s factory activity improved in Sept

India’s factory activity improved last month as a recovery in the economy from the pandemic-induced slump boosted demand and output, according to a private survey, Reuters reported.

That recovery might continue for at least a few months, supported by ultra-easy monetary policy and continued fiscal spending.

A hike in the Reserve Bank of India’s key interest rate looks to be a rare possibility until at least next fiscal year and India’s government said earlier this week it would continue with its borrowing-backed spending to revive the economy.

10:35 A.M.

Rupee slumps 12 paise to 74.35 against US dollar

The Indian rupee declined 12 paise to 74.35 against the US dollar in opening trade, tracking strength of the American currency in the overseas market and a muted trend in domestic equities, PTI reported.

At the interbank foreign exchange, the rupee opened at 74.33 against the dollar, then fell further to 74.35, registering a fall of 12 paise over its previous close. On Thursday, the rupee had settled at 74.23 against the US dollar.

10:00 A.M.

Ola Electric raises over $200 million

Ola Electric said it has raised over $200 million from Falcon Edge, SoftBank Group and others at a valuation of $3 billion.

In a statement, the company the funding will strengthen Ola’s Mission Electric which urges the industry and consumers to commit to electric and ensure that no petrol two wheelers should be sold in India after 2025.

“Ola will accelerate development of other vehicle platforms including electric motorbike, mass market scooter and its electric car,” Ola said.

9:25 A.M.

Sensex, Nifty open lower

The Indian benchmark equity indices, Sensex and Nifty opened the October series on a negative note. At 9:17 IST, the Sensex fell 0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or 394.26 points to 58732.10 and the Nifty was down 0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or 110 points at 17508.20 points.

About 807 shares advanced, 981 declined and 117 remain unchanged.

9:15 A.M.

Oil slips as OPEC+ weighs output boost

Oil prices dropped on the prospect that the OPEC+ supplier alliance might step up a planned increase in output to ease supply concerns, Reuters reported.

U.S. West Texas Intermediate (WTI) crude futures slipped 5 cents to $74.98 a barrel, though the contract remained on track to post its sixth consecutive week of gains.

Brent crude futures fell 7 cents, or 0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to $78.24 a barrel, but was still heading for a small rise on the week, marking a fourth straight week of gains.

9:00 A.M.

Asian stocks extend global slide

Asian equities followed Wall Street sharply lower as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked, Reuters reported.

Japan’s Nikkei tumbled 1.86{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while the broader Topix slid 1.95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Australian stocks slumped 2.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and South Korea’s Kospi lost 1.51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

An MSCI index of Asia-Pacific stocks dropped 1.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Chinese markets are closed for a week from Friday for the Golden Week holiday.