Inflation expectations

Workers load sacks of cement onto trucks parked at a rail yard on the outskirts of Patna, Bihar, India, on Thursday, Feb. 25, 2021. Photographer: Anindito Mukherjee/Bloomberg The Reserve Bank of India’s surveys have no doubt played a part in the rate hike and in formulating the stance of the Monetary Policy Committee. Take, for instance, the survey of household inflation expectations. While it’s true that inflation expectations have come down, they remain elevated, as Chart 1 shows. The last time inflation expectations were this high before the pandemic was in September 2015, when households were yet to recover from the soaring inflation in the post-financial crisis... … [Read more...] about RBI survey data show upbeat business sentiment, elevated inflation

Representative image Shares slipped and the dollar hung off recent highs on Tuesday as investors eyed U.S. inflation data due a day later that will likely yield clues to any further aggressive Federal Reserve rate hikes. The stakes are high for the July U.S. consumer prices report on Wednesday after an unexpectedly strong U.S. jobs data last week boosted expectations of a sharp interest rate increase to tackle soaring inflation. The broader Euro STOXX 600 fell 0.6%, after logging its best session in nearly two weeks on Monday, with German stocks down 0.7%. Miners and autos, among top gainers a day earlier, led declines on Tuesday. Wall Street futures pointed to slim gains. "The focus is on tomorrow's U.S. inflation numbers and whether or not they are likely to show any indication of a softening of inflationary pressures," said Michael Hewson, chief market analyst at CMC Markets. Close "Are we near the peak, and will tomorrow's CPI numbers reflect that?" … [Read more...] about Stocks stumble as caution reigns ahead of U.S. inflation data

By CHRISTOPHER RUGABER WASHINGTON (AP) — Americans may finally be catching a break from relentlessly surging prices — if just a slight one — even as inflation is expected to remain painfully high for months. Thanks largely to falling gas prices, the government’s inflation report for July, to be released Wednesday morning, is expected to show that prices jumped 8.7% from a year earlier — still a sizzling pace but a slowdown from the 9.1% year-over-year figure in June, which was the highest in four decades. The forecast by economists, if it proves correct, would raise hopes that inflation might have peaked and that the run of punishingly higher prices is beginning to ease slightly. There have been other hopeful signs, too, that the pace of inflation may be moderating. At the same time, an array of other economic developments are threatening to keep intensifying inflation pressures. The pace of hiring is robust and average wages are up sharply. And even as gas prices fall, … [Read more...] about US inflation will likely stay high even as gas prices fall

Dear Reader , The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. In a case of how cheer for the economy may not be so for markets, investors in US stocks fretted over excellent jobs data. US businesses added 5,28,000 jobs in July, beating most estimates by an embarrassing margin. US 2-year treasuries rose after the report, as the market priced in a more certain likelihood of another 75-basis point rate hike by the US Fed. But the S&P 500 slipped, as investors pondered over what too strong an economy could mean for interest rates. Those fears did not carry over to India, however, with the stock market rising by a strong 0.8 percent at 1.15pm. The RBI’s 50 basis point hike in the repo rate last week and its determination to stay in ‘withdrawal of accommodation’ mode is … [Read more...] about Moneycontrol Pro Panorama | Are US and Indian markets decoupling?

Accelerating inflation has cooled the Philippines’ second-quarter economic growth to 7.4 percent, below market expectations, the government reported on Tuesday. Gross domestic product (GDP) expansion during the April-to-June period was lower than 8.2 percent a quarter ago and 12.1 percent a year ago, National Statistician Dennis Mapa said in a press briefing. The majority of economists watching the Philippines had projected a sustained above 8-percent growth for the second quarter. Also, Mapa said second-quarter GDP or the total goods and services produced in the country was smaller than the first-quarter output by 0.1 percent. “Transportation and storage, manufacturing, human health and social work activities were the top contributors to the [quarter-on-quarter] decline,” the Philippine Statistics Authority (PSA) said in a statement. Socioeconomic Planning Secretary Arsenio Balisacan nonetheless noted that the Philippines was the second-fastest growing economy in emerging … [Read more...] about Soaring inflation cools PH Q2 GDP growth to 7.4%

PRO Only Highlights - Quarterly performance largely backed by improved realisations - Medium-term triggers China plus and protectionist measures for tyre industry - Valuations not inexpensive; but improved medium-term outlook The Q1FY23 results of Britannia Industries (BIL; CMP: Rs 3,689; Market capitalisation: Rs 88,850 crore) were below expectations. On a three-year CAGR (compounded annual growth rate), BIL has witnessed a value growth of 11 percent and volume growth of 6 percent. June 2022 quarter performance BIL’s revenue grew 9 percent on the back of a 2 percent decline in volumes, year on year (YoY). Market share gains have now continued for about 36 quarters in a row for BIL. Gross margins declined,... … [Read more...] about Britannia Industries: Higher raw material prices weigh on June quarter

Share to Twitter Share to Linkedin Both oil and gas exported from Russia bring in significant revenue that can be used to support the Russian war in Ukraine. But the export revenue from oil sales is much greate r than export revenue from gas sales. If the West stops buying oil this really hurts Russia – more than if the West stopped buying gas. Back in May, the EU agreed to ban all Russian oil imports by the end of 2022, at least those that are delivered by sea. That was a good move. Russia threatens to cut gas supplies to the European Union. Russia has realized that cutting natural gas doesn’t affect their export revenue (like oil does) but it affects the economies of EU countries a lot more. Russia supplied the EU with 40% of its gas last year , with Germany, Italy, and Netherlands the top three importers in actual volumes of gas. Germany had imported more than 50% of its gas from Russia via the Nord Stream 1 pipeline. By the end of June, … [Read more...] about Russia Threatens, EU Reduces, US Industry Helps To Untangle The Natural Gas War In Europe.

Susanna Twidale and Kate Holton (Reuters) (The Jakarta Post) PREMIUM London   ● Wed, August 10 2022 The United Kingdom’s cap on domestic energy prices is expected to rise to more than 4,200 pounds (US$5,089) a year in January, up 230 percent on the year before, a leading economic forecasting group said on Tuesday, deepening the cost of living crisis. The Bank of England warned last week that the UK was on course for a long recession, as unprecedented energy prices push inflation toward 13 percent. Yet while governments across Europe race to increase gas storage and reduce usage, The UK’s political response has largely been put on hold by the race to select a new prime minister. to Read Full Story SUBSCRIBE NOW Starting from IDR 55,500/month Unlimited access to our web and app content e-Post daily digital newspaper No advertisements, no interruptions Privileged access to our events and programs Subscription to our newsletters We accept … [Read more...] about UK cost of living crisis set to intensify as energy bills forecast to soar

- A + A KUALA LUMPUR (Aug 9): KLCC Stapled Group's net profit for the second quarter ended June 30, 2022 (2QFY22) rose 14.69% to RM165.18 million, from RM144.01 million a year ago, as revenue grew 25% to RM350.31 million from RM280.17 million. The group declared interim dividends comprising 0.99 sen and 7.01 sen relating to KLCC Property Holdings Bhd and KLCC REIT respectively for 2QFY22, totalling eight sen per stapled security, to be payable on Sept 28. These brought KLCC Stapled Group's total income distribution to 16 sen for the first half of FY22. The group said in a Bursa Malaysia filing on Tuesday (Aug 9) that the improved year-on-year performance was mainly due to a better performance of its retail segment, driven by lower rental assistance and higher advertising income. In a separate statement, it stated that Suria KLCC and the retail podium of Menara 3 Petronas, which represent the retail segment, saw a 46.4% increase in revenue to RM125.2 million. The … [Read more...] about KLCC Stapled Group’s 2Q net profit rises 15% to RM165 mil, declares eight sen dividends

Julian Zelizer, a CNN political analyst, is a professor of history and public affairs at Princeton University. He is the author and editor of 24 books, including, " The Presidency of Donald J. Trump: A First Historical Assessment ." Follow him on Twitter @julianzelizer . The views expressed in this commentary are his own. View more opinion on CNN. (CNN) President Joe Biden delivered a bold speech on Thursday night , calling for a ban on assault weapons and other gun policies, including strengthening background checks and enacting new "red flag" laws. "Enough, enough," he told the nation, urging Congress to take action after a slew of mass shootings rocked the country. "We can't fail the American people again." The speech comes at a difficult moment for Biden. The administration is facing multiple escalating crises, which are slowly undermining his leadership and political strength. There's the Russian war in Ukraine, inflation and stock market turbulence, mass … [Read more...] about Opinion: How Biden can avoid Carter’s one-term presidential fate