Thursday December 14, 2017
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Falling yuan, sinking rupee, stalled reforms subdue markets

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Mumbai, Devaluation of the Chinese yuan and the Indian rupee, as also the stalled reforms process, dampened investor sentiments in the equity markets during the weekly trade ended Aug 14.

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The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) fell by 169.08 points or 0.59 percent during the weekly trade, ending at 28,067.31 points from the previous close of 28,236.39 points on Aug 7. The S&P BSE Sensex had marginally gained by 121.83 points during the weekly trade ended Aug 7.
“The devaluation of yuan is a sign that the currency wars have started at a time when the world economy is stalling, commodities prices are falling and the Chinese markets are bleeding,” Anand James, co-head, technical research desk, Geojit BNP Paribas.
“The yuan’s surprise devaluation also stroked fears of competitive devaluation across Asia, especially before the (US) Fed’s monetary policy decision due in September,” he added
The yuan has fallen by 4.6 percent since Tuesday, its biggest devaluation since 1994.
The devaluation, intended to boost exports, has made investment in China cheaper, thereby leading foreign funds away from India.
This also impacted the rupee, which on Thursday fell to its lowest level against the US dollar in 24 months at Rs.65.23.
The logjam in parliament and the yuan’s devaluation led the markets to lose a total of 724 points during the first three trading days of the week.
However, investors were seen hopeful of a rate-cut based on healthy macro-economic data points including Consumer Price Index (CPI), Index of Industrial Production (IIP) and Wholesale Price Index (WPI).
“The recovery was led by the 0.05 percent rise of the yuan (on Friday), after three days of depreciation instigated by the People’s Bank of China, and better than expected macro data,” Rahul Dholam, senior analyst with Angel Broking, cited
The macro-economic data points showed a fall in India’s annual retail inflation rate to 3.78 percent in July, the annual wholesale inflation fell to (-)4.05 percent, however there was a rise in the factory output to 3.8 percent in June.The WPI coupled with consumer price index (CPI) have pointed at a gradual reining in of prices.
The RBI has set a target for CPI inflation at 6 percent by January 2016.
On the bright side of the volatile weekly trade was the possibility that the government might extend the “Monsoon Session” or call for a “Special Session” of parliament to pass the GST bill kept investors optimistic about the future of the key economic legislation.
“The signals that are coming — like an extension of the monsoon session or a proposed special session to get the GST bill passed — are very encouraging,” Devendra Nevgi, chief executive of ZyFin.
“The India growth story is based on the ability of the government to bring in reforms. For the central bank to be able to cut rates and usher in the demand by propping-up the consumer sentiment. The lack of reforms will send a dampening signal to the rest of the world,” Nevgi elaborated.
Lately, investors have been reluctant to chase higher prices given the possibility that the reform process might be stalled due to the government’s inability to conduct business in parliament.

(IANS)

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Dalai Lama says that India and China have great potential

The spiritual leader feels that both the countries are doing compassionate works

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Dalai Lama talks about India and China
Tibetan spiritual leader Dalai says that India and China can work together. VOA

New Delhi, Nov 19

Tibetan spiritual leader the Dalai Lama on Sunday said India and China have “great potential” and they could work together at a “practical level”.

“I think, a great potential… India and China combined are doing more compassionate work… At a practical level also. Imagine two billion people working together,” he told reporters here after inaugurating Smile Foundation’s initiative, The World of Children.

The spiritual leader, who has lived in India in self-imposed exile since 1959, said neither country had the “ability to destroy the other”.

“Whether you like it or not, you have to live side by side,” he said.

Underlining the ancient spiritual connection between the two countries, he said Chinese Buddhist Hsuan Tsang visited Nalanda (now in Bihar) and brought Nalanda Buddhist traditions to China.

“All thinkers of Nalanda are Indian. So Nalanda’s tradition is India’s tradition,” he said.

The Nalanda traditions had turned Tibetans, who were warriors, into more compassionate, peaceful and non-violent nation, he said.

“So sometimes in Delhi, teasing my Indian friend, (I say) if Tibet still remained in the previous way of life, like Mongols, Chinese invasion may not have taken place,” the Dalai Lama said in a lighter vein.

He said nobody in the world wanted violence but it was happening “because our minds are dominated by destructive emotions due to short-sightedness”.

“Nobody wants problems. Yet, many problems are our own creation.”

The Dalai Lama said the existing modern education was oriented to material values. India can take lead in improving the education system by combining modern education with ancient knowledge, he said. (IANS)

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Donald Trump Planning to meet Putin during his Asia tour

Donald Trump's first trip to Asia is the longest international tour.

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US President Donald Trump
US President Donald Trump. wikimedia commns
  • US President Donald Trump said on Sunday that he expected to meet his Russian counterpart Vladimir Putin during his Asia tour.

“I think it’s expected we’ll meet with Putin, yeah. We want Putin’s help on North Korea, and we’ll be meeting with a lot of different leaders,” Donald Trump told reporters on Air Force One before landing at the Yokota Air Base in Japan, Efe reported.

Putin is scheduled to participate in the Asia-Pacific Economic Cooperation (APEC) summit in Da Nang, Vietnam, which Trump will also attend as part of his long Asia tour.

The North Korean nuclear threat is expected to dominate Donald Trump’s meetings in Japan and the next two stages of his tour, South Korea and China, where he will have a highly anticipated sit-down with Chinese President Xi Jinping.

The remainder of the tour will be more focused on economic issues, with Trump scheduled to take part in the APEC meeting in Da Nang and then in the Association of Southeast Asian Nations (ASEAN) Summit and the East Asia Summit in the Philippines.

Donald Trump’s first trip to Asia is the longest international tour by a US head of state since the one then-President George H.W. Bush embarked on in 1992.

Bush became ill at the end of that trip, famously vomiting on the Japanese prime minister’s lap at a formal dinner before fainting.(IANS)

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‘Dalai Lama is a Political Figure under the cloak of Religion, Meeting or Hosting the Dalai Lama is a major offence’ Warns China

In April this year, China had reacted violently to a visit by the Dalai Lama to Tawang, in India’s northeast border state of Arunachal Pradesh, large parts of which is claimed by Beijing.

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Dalai Lama
The 14th Dalai Lama, Wikimedia

Beijing, October 21, 2017 : As US Secretary of State Rex Tillerson prepares to visit India next week, China on Saturday warned that it will be deeply offended if any foreign leader meets with or any country invites the Dalai Lama.

On the sidelines of the 19th National Congress of the Communist Party of China, a Chinese Minister dubbed the Tibetan spiritual leader as a “political figure under the cloak of religion”.

“Any country or any organisation or anyone accepting to meet with the Dalai Lama in our view is a major offence to the sentiment of the Chinese people,” said Zhang Yijiong, Executive Vice Minister of the United Front Work Department of the ruling Communist Party of China (CPC).

“Also, since they have committed to recognising China as a sole legitimate government representing China, it contravenes their attempt, because it is a serious commitment,” Zhang added.

China accuses the Dalai Lama of stoking unrest and secessionist activities in Tibet from where the spiritual leader fled to India in 1959 after a failed uprising.

The Dalai Lama has urged for more autonomy for Tibet.

Beijing opposes any country or leader keeping in touch with the Dalai Lama.

“I want to make it clear that the 14th Dalai Lama, the living Buddha handed down by history is a political figure under the cloak of religion,” said Zhang.

In February this year, Tillerson had told members of the Senate Foreign Relations Committee during his confirmation hearing that he is committed to promoting dialogue on Tibet and receiving the Dalai Lama.

Top US Democrat Nancy Pelosi had visited the Dalai Lama in Dharamsala, India, in May, and sought to draw the world’s attention to human rights in Tibet, triggering protests by China.

China resorts to different tactics if any country hosts the Dalai Lama. For instance, Beijing blocked a major highway leading to Mongolia, crippling the economy there after Ulan Bator hosted the leader late last year.

Mongolia later apologised and promised Beijing never to invite the Dalai Lama.

“Officials, in their capacity as officials, attending all foreign-related activities represent their governments. So I hope governments around the world speak and act with caution and give full consideration to their friendship with China and their respect for China’s sovereignty,” Zhang added.

The comments from the Chinese Minister also comes days after Tillersoon described India as a partner in a strategic relationship and said the US would “never have the same relationship with China, a non-democratic society”.

According to reports, last month China refused to fund travel for visiting scholars at University of California, San Diego, apparently in retaliation for inviting the Dalai Lama to be its 2017 commencement speaker.

In April this year, China had reacted violently to a visit by the Dalai Lama to Tawang, in India’s northeast border state of Arunachal Pradesh, large parts of which is claimed by Beijing. (IANS)