Central bankers are in a precarious spot in this chaotic pandemic economy. U.S. and U.K. consumers are grousing about rising prices and want some relief. But if government officials give it to them by raising interest rates, they may set back the recovery. It wouldn’t be the first time an errant move by a central bank triggered a recession.
Commodities Market News
Spot rubber continued to make moderate gains on Thursday. The commodity edged up mainly on fresh buying as certain companies from the tyre and non-tyre sectors were offering higher rates for RSS grades since a couple of days. As per reports, the domestic supply of NR will be low in short term as the State’s traditional rubber growing region, including the key rubber-producing districts, are badly hit by unseasonal downpours, devastating flash floods, and landslides.RSS-4 improved to ₹172.50 (172) and ₹172 (171.50) per kg respectively, according to traders and the Rubber Board. The grade firmed up to ₹167 (166.50), according to dealers. The volumes were low.Latex pricesThe progress made in vaccination drive across countries can have a negative bearing on the demand for rubber gloves as well as the glove prices, reports the Association of Natural Rubber Producing countries (ANRPC). This may weigh on latex prices. The recent capacity addition in nitrile across countries, particularly in China, can also impact on the demand for latex from the glove manufacturing industry. The developments in the latex market often pass on to RSS market as well.In futures, the front month October delivery was down 0.91 per cent from Wednesday’s settlement price to close at ₹173 per kg with a volume of 5 lots on the Multi Commodity Exchange (MCX).RSS-3 (spot) firmed up to ₹144.50 (142.16) per kg at Bangkok. SMR20 flared up further to ₹139.22 (135.77) and Latex to ₹99.27 (96.87) per kg at Kuala Lumpur.The natural rubber contract for the November delivery was up 0.75 per cent from previous day’s settlement price to close at 14.08 Yuan (₹164.77) per kg with a volume of 4,835 lots in day time trading on Shanghai Futures Exchange (ShFE).Spot rubber rates (₹/kg): RSS-4:172.50 (172), RSS-5: 169.50 (169), ISNR20: 161.50 (161) and Latex (60% drc): 123 (122.50).Rubber Board campaignThe Rubber Board is launching a mass contact programme ‘Campaign 2021’, aiming at increasing production and productivity of natural rubber in the country. The objective of the campaign is to make India self sufficient in domestic NR requirements. KN Raghavan, Executive Director, Rubber Board will inaugurate the programme on Friday, October 22 at 11 am through Facebook live on the Board’s official Facebook page (facebook. com/rubberboard).The theme of the campaign is ‘Resurgence in rubber for Aatmanirbhar Bharath’. Board is expected to contact 50,000 farmers through 2,500 meetings arranged across the country. The campaign will be held either by group meetings or through online meetings. According to a press release issued by the Board, the meetings will be conducted in strict compliance with the Covid-19 protocol.
SCRANTON, Pa. (AP) — In an abrupt change, the White House is floating new plans to pay for parts of President Joe Biden’s $2 trillion social services and climate change package, shelving a proposed big increase in corporate tax rates though also adding a new billionaires’ tax on the investment gains of the very richest Americans.The reversal Wednesday came as Biden returned to his hometown of Scranton, Pennsylvania, to highlight the middle class values he says are at the heart of the package that Democrats are racing to finish. Biden faces resistance from key holdouts, including Sen. Kyrsten Sinema, D-Ariz., who has not been on board with her party’s plan to undo Trump-era tax breaks to help pay for it. “This has been declared dead on arrival from the moment I introduced it, but I think we’re going to surprise them, because I think people are beginning to figure out what’s at stake,” Biden said in a speech at Scranton’s Electric City Trolley Museum, his first visit home since becoming president.Negotiations between the White House and Democratic leaders on Capitol Hill are underway on what’s now a scaled-back package but would still be an unprecedented federal effort to expand social services for millions and confront the rising threat of climate change. It’s coupled with a separate $1 trillion bill to update roads and bridges.Biden and his Democratic Party have given themselves a deadline to seal agreement after laboring to bridge his once-sweeping $3.5 trillion vision preferred by progressives with a more limited focus that can win over party centrists. He has no Democratic votes to spare for passage in the closely divided Congress, and leaders want agreement by week’s end.The newly proposed tax provisions, though, are likely to sour progressives and even some moderate Democrats who have long campaigned on undoing the 2017 GOP tax cuts that many believe unduly reward the wealthy, costing the federal government untold sums in lost revenue at a time of gaping income inequality.Administration officials spoke with congressional leaders on the tax alternatives, according to a person familiar with the private talks and granted anonymity to discuss them. The changes may be needed to win over Sinema, who had objected to plans to raise the rates on corporations and wealthy individuals earning more than $400,000 a year, said the person and several others.As it stands, the corporate tax rate is 21%, and Democrats want to lift it to 26.5% for companies earning more than $5 million a year. The top individual income tax rate would rise from 37% to 39.6% for those earning more than $400,000, or $450,000 for married couples. Under the changes being floated that 21% corporate rate would stay the same.However, the revisions wouldn’t be all positive for big companies and the wealthy. The White House is reviving the idea of a minimum corporate tax rate, similar to the 15% rate Biden had proposed earlier this year. That’s even for companies that say they had no taxable income — a frequent target of Biden who complains that they pay “zero” in taxes.And there could be a new billionaires’ tax, modeled on legislation from Sen. Ron Wyden, D-Ore., the chairman of the Finance Committee, who has proposed taxing stock gains of those with more than $1 billion in assets — fewer than 1,000 Americans.Sinema has not publicly stated her position, and her office did not respond to a request for comment.Another key Democrat, conservative Sen. Joe Manchin of West Virginia, has said he prefers a 25% corporate rate. He has been withholding his support for the bill with additional objections to its provisions on climate change and social services.On the call with the administration and the White House, Wyden said he “stressed the importance of putting an end to America’s two tax codes, and finally showing working people in this country that the wealthiest Americans are going to pay taxes just like they do.”The shift comes as Democrats and Biden appear to have abandoned what had been a loftier package in favor of a smaller, more workable proposal the party can unite around.In the mix: At least $500 billion to battle climate change, $350 billion for child care subsidies and free pre-kindergarten, a new federal program for at least four weeks of paid family leave, a one-year extension of the $300 monthly child tax credit put in place during the COVID-19 crisis, and funding for health care provided through the Affordable Care Act and Medicare. Likely to be eliminated or shaved back: plans for tuition-free community college, a path to permanent legal status for certain immigrants in the U.S. and a clean energy plan that was the centerpiece of Biden’s strategy for fighting climate change.Democrats are growing anxious they have little to show voters despite their campaign promises and have had trouble explaining what they’re trying to do with the massive package, made up of so many different proposals.It’s a tall order that was leading to an all-out push Wednesday to answer the question — “What’s in the damn bill?” — as a press release from Sen. Bernie Sanders, the independent from Vermont, put it.The president especially wants to advance his signature domestic package to bolster federal social services and address climate change by the time he departs for a global climate summit next week. Manchin has made clear he opposes the president’s initial energy plan, which was to have the government impose penalties on electric utilities that fail to meet clean energy benchmarks and provide financial rewards to those that do. Instead, Biden is focused on providing at least $500 billion in tax credits, grants and loans for energy producers that reach emission-reduction goals.Democrats are moving to retain many of the programs but trim their duration to shave costs. Biden wants to extend the $300 monthly child tax credit that was put in place during the COVID-19 crisis for another year, rather than allow it to expire in December, but not as long as Democrats wanted. What had been envisioned as a months-long federal paid family leave program could be shrunk to as few as four weeks — an effort to at least start the program rather than eliminate it.Biden also wants to ensure funding for health care programs, including for home- and community-based health care services, supporting a move away from widespread nursing home care. And a new program to provide dental, vision and hearing aid benefits to people on Medicare proposed by Sanders, is likely to remain in some fashion.___Associated Press writers Kevin Freking and Josh Boak contributed to this report.
The next tranche of Sovereign Gold Bonds 2021-22 will be open for subscription for five days from October 25, the finance ministry said in a statement on Thursday.
The bonds under the 2021-22 series will be issued in four tranches during October 2021-March 2022, taking the total to 10. Under the series, bonds were issued in six tranches from May 2021 to September 2021.
The subscription period for 2021-22 Series-VII will be October 25-October 29, and bonds will be issued on November 2, the finance ministry said in a statement.
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges (National Stock Exchange of India and Bombay Stock Exchange).
The Reserve Bank of India will issue the bonds on behalf of the Government of India.
The price of bonds will be fixed in the Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last three working days of the week preceding the subscription period. The issue price of the gold bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode.
The tenure of the bond will be for a period of eight years with an exit option after fifth year to be exercised on the next interest payment dates.
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value, said the ministry adding the minimum permissible investment will be 1 gram of gold.
The maximum limit of subscription shall be 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
Know Your Customer (KYC) norms will be the same as that for the purchase of physical gold.
The sovereign gold bond scheme was launched in November 2015, with an objective to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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JSW Steel reported highest-ever quarterly net profit of ₹7,179 crore in the September quarter on back of higher realisation. The net profit was up by more than four times compared to ₹1,595 crore logged in the same period last year.Sales increased 71 per cent to₹31,909 crore (₹18,662 crore) even as sales volume was down eight per cent at 3.79 million tonne (4.12 mt) due to the impact of the second Covid wave.Sales were also affected by inventory build-up due to the start of the company’s new downstream facilities and an increase in inventories at the ports. Exports during the quarter increased 26 per cent as domestic demand was subdued due to the monsoon.The company achieved the highest ever quarterly EBITDA of ₹10,417 crore despite higher raw material prices of iron ore, coking coal and other key inputs like power, natural gas and ferroalloys.During the quarter, JSW Steel’s capacity utilisation was at 91 per cent across its operations. The company had logged other income of ₹702 crore as recognition of fair valuation gain on re-measurement of optionally fully convertible debentures held in one of the joint ventures.The net profit contribution of Bhushan Power and Steel increased 86 per cent on a sequential basis to ₹603 crore (₹323 crore). JSW Steel exercised the conversion option of optional fully convertible debenture held in Piombino Steel, the SPV holding 100 per cent of the shares of BPSL. Following this, JSW Steel now holds a controlling stake of 83 per cent in BPSL through the SPV, effective from October 1.Of the planned capex of ₹18,240 crore this fiscal, the company spent ₹3,639 crore in the September quarter.Overseas operations The Electric Arc Furnace-based steel manufacturing facility in Ohio, US reported an EBITDA of $48 million against EBITDA loss of $11 million in the same period last year. The US plate and pipe mill reported an EBITDA of $13 million.The Italy-based rolled long products manufacturing facility reported an EBITDA of €6.10 million against EBITDA loss of €4.76 million in the June quarter.
The 10-year U.S. Treasury yield held above 1.64% early on Thursday, ahead of the release of weekly jobless claims data.The yield on the benchmark 10-year Treasury note gained almost 2 basis points, rising to 1.653% at 7:05 a.m. ET. The yield on the 30-year Treasury bond climbed 2 basis points to 2.129%. Yields move inversely to prices and 1 basis point is equal to 0.01%.The 10-year rate hit 1.67% earlier this week, as investors eyed strong earnings, which boosted hopes of a continued economic recovery.The Labor Department is due to release the number of jobless claims filed during the week ended Oct. 16 at 8:30 a.m. ET on Thursday.Last week, the number of weekly unemployment insurance claims fell below 300,000 for the first time since the start of the coronavirus pandemic. Investors will be watching to see if jobless claims continue to fall, particularly given that the Federal Reserve has indicated that it will soon start to normalize its monetary policy, as the central bank nears its economic goals.Stock picks and investing trends from CNBC Pro:Meanwhile, September’s existing home sales data is due out at 10 a.m. ET.Fed Governor Christopher Waller is set to discuss the U.S. economy at the Official Monetary and Financial Institutions Forum, at 9 a.m. ET.Auctions are scheduled to be held on Thursday for $60 billion of four-week bills, $25 billion of eight-week bills and $19 billion of five-year Treasury Inflation-Protected Securities.
High prices threaten India’s goal to boost the use of gas in its energy mix as some industries look at switching back to coal and pet coke, a top bureaucrat in the Oil Ministry said on Wednesday.Prime Minister Narendra Modi has set a target to raise the share of natural gas in the country’s energy mix to 15 per cent by 2030 from about 6.2 per cent now to cut India’s carbon footprint.Intermediary use of gasIn the long run, India wants to raise the use of renewables and biofuels and had turned to the use of natural gas in the “intermediate period” despite holding vast reserves of coal, Oil Secretary Tarun Kapoor said at the India Energy Forum.Also see: Oil & gas: PM explores areas of investment with CEOs“Now this very high gas price has given us a message that probably we can not rely on natural gas. The rather basic question now is can we rely on imports,” Kapoor said.High Asia pricesLiquefied natural gas (LNG) under long-term deals costs about $11–12 per million British thermal units (mmBtu), versus more than $38 per mmBtu on Asia’s spot gas LNG-AS market currently and a record high of over $56 hit earlier this month.To cut its carbon footprint, India allowed some consumers to shift to gas. Kapoor said these industries might switch back to coal and pet coke due to the higher gas prices. Pet coke, short for petroleum coke, is a byproduct of the oil-refining process.India, the world’s third biggest oil consumers and importer, is also exploring strategies to cut its crude import bill including asking companies to jointly negotiate for oil purchase contracts.Also see: India plans refiners’ joint oil deals to cut import billKapoor said Indian refiners should look at having long-term oil contracts of more than one year’s duration with a fixed, or near to fixed, price component.“In oil, term contract is just a one-year contract and it is not a fixed-price contract,” Kapoor said.“The contract can be fixed-price or linked to some index which is not so volatile. It is just a question of reducing risk,” he added.
Demand for gold in China is continuing its rebound after the gold market had been negatively impacted by the fallout of the coronavirus. September, a month leading up to important Chinese holidays, saw withdrawals from the Shanghai Gold Exchange increase 27% compared to the previous month.
Besides the rise in withdrawals in September, Chinese gold imports showed a strong increase in August. Both are signs that the gold market in China is potentially recovering.
Additionally, local premiums have been going up for three months straight, also signaling high demand for the precious metal, according to schiffgold.com analysts.
Gold’s recovery signs
It’s worth noting, that gold is increasingly popular as an investment, signaled by the fact that Chinese gold ETFs haven’t reported outflows for four months in a row. The ETFs currently hold the second-largest amount of gold ever, FT.com reports citing Morningstar’s data.
This is taking place during volatile times for the Chinese stock market and economic woes.
Pundits point to stagflation as a possible sign that demand for gold might continue to increase. October is normally a strong month for jewelry sales in China because of the National Day Holiday.
Gold production in China, the world’s largest producer, has fallen amid gold mine output disruptions, according to a mining.com news report. This, combined with government policies aimed at bolstering Chinese gold consumption, point to higher demand for gold in the coming months.
As per our previous research, China accounted for 380 metric tons or 11.9% share of the global gold production in 2020 followed by Australia’s production of 320 metric tons, representing 10% of the global share.
Gold demand outside of China shows mixed signals
Not only in China has the demand for Gold ETFs increased sharply, but gold ETFs in India also attracted 60 million dollars in September, which is almost 20 times higher than the August inflow of $3.19 million. Although gold ETF demand in Asia is rising, demand for gold is not going up everywhere.
A group of leading banks, who partnered to launch gold futures, have halted gold futures due to low volume. Additionally, our previous data shows a decline in gold ETFs demand in the United States as the most popular U.S. gold ETFs recorded an average decline of over 7% in 2021.
The continuous contract of aluminium on the Multi Commodity Exchange (MCX), which was moving sideways between ₹222 and ₹235 in the second half of September, broke out of this range in the first week of October and rallied sharply. It made a fresh high of ₹259.3 last Monday. But thereafter, the price softened and is now trading around ₹245.Although the prices are under pressure since the beginning of this week, the overall bullish trend is intact and the drop in price appears to be a mere corrective decline and the contract has good chance to recover. However, from where the recovery will begin remains uncertain. Immediate support levels can be spotted at ₹240 i.e., the 21-day moving average (DMA) and the subsequent one at ₹235. So, the contract could gradually drop to the price band of ₹235 and ₹240 and then resume the uptrend. Also, the 38.2 per cent Fibonacci retracement level of the prior rally lies at ₹237 i.e., within the above-mentioned price band. Therefore, until aluminium futures stay above ₹235, the chance of a short-term bearish reversal looks remote. Given the prevailing conditions, traders can consider going long at ₹240 and accumulate at ₹235. Stop-loss can be placed at ₹228. If the recovery occurs as expected, the contract can rally to ₹250, a breakout of which can lift it to ₹258. So, take partial profits at ₹250, revise the stop-loss to ₹240 and look for next target at ₹258.
Petrol and diesel rates have increased 15 times so far in October.
(Image: REUTERS)Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: The price of petrol and diesel were hiked for the second consecutive day on Thursday by oil marketing companies. Petrol in the national capital today costs Rs 106.54 per litre, up 35 paise from yesterday while Diesel in the capital city is retailing at Rs 95.27 per litre, an increase of 35 paise. Petrol and diesel rates have increased 15 times so far in October. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.Mumbai’s petrol cost is still the highest across metro cities, standing at a staggering Rs 112.44 per litre. Diesel in the country’s financial capital costs Rs 103.26 per litre. The divergence in prices between Delhi and Mumbai is due to various local VAT charges in different cities. Petrol and Diesel prices are fixed on the basis of freight charges, local taxes, and VAT. Petrol has crossed the Rs 100-a-litre mark in Delhi, Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Jammu and Kashmir, Odisha, Tamil Nadu, Ladakh, and some cities of Bihar and Punjab.Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Hyderabad, UP, Punjab, Haryana, Pune-Chennai: Petrol prices – Rs 103.61 per litre; Diesel prices – Rs 99.59 per litre-Kolkata: Petrol prices – Rs 107.11 per litre; Diesel prices – Rs 98.38 per litre-Pune: Petrol prices – Rs 111.96 per litre; Diesel prices – Rs 101.21 per litre-Bengaluru: Petrol prices – Rs 110.25 per litre; Diesel prices – Rs 101.12 per litre-Hyderabad: Petrol prices – Rs 110.82 per litre; Diesel prices – Rs 103.94 per litre-Noida (UP): Petrol prices – 103.74 per litre; Diesel prices – Rs 95.91 per litre-Mohali (Punjab): Petrol prices – Rs 108.63 per litre; Diesel prices – 98.41 per litre-Chandigarh: Petrol prices Rs 102.54 per litre; Diesel prices – Rs 94.99 per litre-Gurugram (Haryana): Petrol prices – Rs 104.15 per litre; Diesel prices – Rs 96.02 per litreCrude Oil priceCrude oil prices were up once again on Thursday morning as investors continued to gauge the demand-supply imbalance across the globe. According to Reuters, Brent crude futures were trading at $85.99 per barrel. U.S. West Texas Intermediate futures were at $83.79 a barrel.Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.