Day: February 13, 2022

India files complaint against ABG Shipyard alleging $3 billion bank fraud

Investing.com - Financial Markets Worldwide

Please try another search

Stock Markets5 hours ago (Feb 13, 2022 03:50AM ET)

2/2

India files complaint against ABG Shipyard alleging $3 billion bank fraud© Reuters. A man rides his bicycle past India’s Central Bureau of Investigation (CBI) headquarters building in New Delhi, India, March 6, 2018. REUTERS/Adnan Abidi

2/2

By Nidhi Verma

NEW DELHI (Reuters) – India’s federal investigation agency has filed a police complaint against ABG Shipyard Ltd and its promoters accusing it of defrauding banks of 228.42 billion Indian rupees ($3.03 billion).

The report, posted on the Central Bureau of Investigation’s website, said a forensic audit report it received from the banks two years ago had found instances of fraud in April 2012 and July 2017.

ABG Shipyard could not be reached for comment and did not immediately respond to an email. The shipbuilder, identified by the central bank as one of India’s “dirty dozen” highly indebted companies, has filed for bankruptcy resolution.

According to figures from the forensic audit that were included in the CBI complaint, the company owed 70.89 billion rupees to ICICI Bank, 36.34 billion rupees to IDBI Bank, 29.25 billion rupees to the State Bank of India, 16.14 billion rupees to Bank of Baroda, 12.44 bilion rupees to Punjab National Bank and 12.28 billion rupees to Indian Overseas Bank.

State Bank of India, where the accounts of ABG Shipyard were maintained, had filed the forensic audit in a report to the CBI.

That report, included in the CBI complaint posted on Sunday, said the fraud took the form of diversion of funds, “misappropriation and criminal breach of trust with an objective to gain unlawfully at the cost of the Bank’s funds”.

“The money was used for purposes other than the purpose for which the funds were released by the Bank”, it said.

($1 = 75.3188 Indian rupees)

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Energy & Precious Metals – Weekly Review and Outlook

Investing.com - Financial Markets Worldwide

Please try another search

Commodities23 hours ago (Feb 13, 2022 04:49AM ET)

Energy & Precious Metals - Weekly Review and Outlook© Reuters

By Barani Krishnan

Investing.com — “In the midst of chaos, there is opportunity,” said Sun Tzu, the ancient Chinese master strategist who authored The Art of War.

And in the midst of Friday’s chaos in figuring out Vladmir Putin’s next move, oil bulls saw another opportunity to drive crude prices higher, this time past the key $95-a-barrel resistance which presumably leaves them just one crisis short of the much-awaited $100 prize.

Friday’s drama started just before 1:30 PM New York (6:30 PM London) when wire services flashed broadcaster PBS’ bulletin that the United States believed Putin had made up his mind to invade Ukraine. The Russian leader had communicated this to his forces marshaled along the Ukrainian border, the reports said. An invasion was expected by next week, two Biden administration officials told PBS – echoing Secretary of State Tony Blinken’s thoughts –  the reports added.

All hell then broke loose. Within a 15-minute trading candle, U.S. crude rocketed from $92 to a session high of $94.66, while Brent went from $93 to a peak of $95.65. Almost every energy and metals market rose as well, with gold surging to a three-month high above $1,862. 

Wall Street’s indexes got trounced again, with the and both down almost 3% at one point (the S&P rebounded a little by the close to finish 2% down). For stocks, the deja vu of January’s lows beckons after a two-week rally this month.

With markets remaining on edge, White House National Security Adviser Jake Sullivan told a news conference that afternoon that Russia could indeed invade Ukraine soon while the world’s attention is glued on the Olympics. He said Moscow has all the forces required to launch a major military operation on Kiev; that it will probably begin with aerial attacks and reiterated that the United States will respond decisively if Putin proceeded as thought.

Sullivan, however, said something else that probably superseded the rest of his spiel at the news conference, and that was: “We do not claim that Putin has made a final decision”. That was important to many in the markets as it signaled the White House may have made more of the situation than what it really was.

As Ed Moya of online trading platform OANDA put it: “A period of calm was somewhat expected regarding the Ukraine situation, but that does not seem to be the case anymore.” 

Whatever the case, U.S. crude gave back a chunk of its gains from the day’s highs, settling marginally lower on the week after a seven-week blitz higher (in after-hours trade, it did get closer to its intraday peak). Brent also retreated but not much, finishing up more than 1% on the week for an eighth straight week of gains.

Oil was also boosted Friday by the International Energy Agency’s warning that global oil supplies might be short of demand.

The Paris-based IEA, in its monthly report, lifted its forecast for this year’s global oil demand by 800,000 barrels a day to 3.2 million barrels.

The IEA also estimated there could be a billion barrels shortfall by the end of last year between what the Organization of the Petroleum Exporting Countries and its allies – known as OPEC+ – were supposed to have pumped versus actual deliveries to the market since the start of 2021. 

“The oil market is incredibly tight,” Toril Bosoni, head of the IEA’s markets and industry division, said in a Bloomberg television interview after the release of the report. “Prices continue to surge and are now reaching levels that are uncomfortable for consumers across the world.”

Prior to the Russia-Ukraine brouhaha and the IEA warning, oil prices showed a loss of about 3% on the week as Thursday ended. The drop came on the back of concerns that Iranian oil supplies could legitimately return to the market through a nuclear deal and that the Federal Reserve could impose rate hikes of as much as 0.5% a month over the next few months to curb runaway U.S. inflation.

So back to Sun Tzu’s quote on chaos and opportunity, both shorts and longs had their share of oil’s spoils at different stages of the week though the market once again tipped towards the bulls by Friday’s close.

Oil Prices & Technical Outlook

New York-traded settled up $3.22, or 3.6%, at $93.10 a barrel. WTI hit an intraday high of $94.65 earlier. For the week though, WTI was down 37 cents, or 0.3%, registering its first decline after seven straight weeks of gains.

London-traded , the global benchmark for oil, hit a session high of $95.65 before settling at $94.44, up $2.98, or 3.3%. That put Brent up 1.3% for the week, giving it an eighth straight week of gains.

Chart-wise, both benchmarks were overbought after eight straight weeks of gains, said Sunil Kumar Dixit, chief technical strategist at skcharting.com.

“It’s extremely overbought actually,” said Dixit. “In WTI’s case, this week’s rise from the lows of $88.40 to the highs of $94.65 has left it with a weekly stochastic reading of 94/94 and weekly RSI reading 71.”

“These are the prime overbought conditions that shout out aloud for an imminent correction to at least $88 and $77 over short to mid term. But will we get that? Probably not, as long as the Ukraine crisis keeps bubbling.” 

Dixit added that consolidation above $90 and $92 could strengthen WTI to position for $98 and eventually cross the much-anticipated $100 mark, with $101 and $107 targets.

Gold Price & Market Activity

The last time gold got above $1,860 was three months ago, and the last time it rose 2% in a day was six months ago – long enough for longs in the market to forget.

But that’s what happened in Friday’s session amid U.S.-fed fears of an imminent Russia-Ukraine war and that, too, after the close of the Comex session that unofficially put the market up 3% for the week.

Gold’s most active futures contract on New York’s Comex, , settled up $4.70, or 0.3%, at $1,842.10 an ounce.

That was before reports that the United States believed Russia has decided to invade Ukraine.

Almost immediately after its marginally higher settlement, April gold began rallying fast and furiously, adding another $25 to reach $1,867.25 – its highest since early November and the official session peak now for Monday.

Unlike oil prices, gold barely wavered from its highs even as White House National Security Adviser Jake Sullivan walked back some of the assertion that Russia would definitely attack Ukraine by next week (talk about gold’s long-absconded safe-haven quality making a forceful return). 

For longs in the market, gold’s ability to sustain above the key $1,800 has been a boon despite repeated fears of excessive U.S. rate hikes this year to deal with soaring inflation.

So, the golden question is: Will bullion get to $1,900 next, and by next week?

Geopolitics might have the answer to that, now gold’s safe-haven role is back in play.

Gold Technical Outlook

Dixit of skcharting.com said gold looked quite set to reach $1,900 with its current momentum.

“Gold has witnessed one of the best weekly gains amidst sabotage attempts at institutional levels throughout the year and back,” said Dixit, referring to the past maneuvers of so-called bullion banks to keep the yellow metal depressed. 

He said with its rise from $1,808 support, gold had broken through multiple resistance levels and clocked $1,865, closing the week at $1,859, for a decent $41 gain.

The weekly Stochastic of 50/50 and RSI of 57 were supportive for continuation of the current momentum, Dixit said.

“Since $1,860 marked the significant 23.6% Fibonacci level of $1,678 to $1,916 major retracement, prices may witness a continued charge to $1,900-$1,916 if gold can sustain above the $1,843-$1,825 support zone in the event of any correction,” he added.

Disclaimer: Barani Krishnan does not hold a position in the commodities and securities he writes about.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Hong Kong reports 1,347 COVID cases as healthcare system overwhelmed

Investing.com - Financial Markets Worldwide

Please try another search

Coronavirus3 hours ago (Feb 13, 2022 08:10AM ET)

Hong Kong reports 1,347 COVID cases as healthcare system overwhelmed© Reuters. FILE PHOTO: A customer wearing a face mask shops in front of partially empty shelves at a supermarket, following the outbreak of the coronavirus disease (COVID-19), at Sha Tin district, in Hong Kong, China, February 7, 2022. REUTERS/Lam Yik

By Joyce Zhou and Twinnie Siu

HONG KONG (Reuters) -Hong Kong reported 1,347 new daily COVID-19 infections on Sunday, down from the previous day’s record, but the spread, with 2,000 more suspected cases, threatens the city’s overstretched healthcare system, authorities said.

The surge in coronavirus cases, the biggest test yet for Hong Kong’s “dynamic zero-COVID” strategy, comes a day after the government said China would help the city with testing, treatment and quarantine capacity.

Following the death of a four-year-old who had tested preliminary positive for the disease this week, the government said late on Sunday that children from the age of three would be eligible for vaccinations from Feb. 15.

Authorities also warned food supplies into the city may be disrupted, after some cross-border truck drivers tested positive for coronavirus, but said they were doing everything to get the situation back to normal “as soon as possible.”

Hong Kong imports 90% of its food, with the mainland its most important source, especially for fresh food. Consumers have felt shortages of some imported goods, including premium seafood, due to stringent flight restrictions.

Health authorities in the city of 7.5 million people reported 1,347 new coronavirus infections, down from Saturday’s 1,514, but they told a news conference there were about 2,000 preliminary cases. The rapid spread of the outbreak was overwhelming healthcare facilities, they said.

Local media had reported that the city would report a record 3,000 infections, including the preliminary cases.

“For those in a stable condition, please wait patiently. Please heed our appeal,” said Hospital Authority official Larry Lee.

Hong Kong’s No. 2 official, John Lee, said on Saturday there were no plans to lock down the city, where schools, gyms, cinemas and most other venues are closed. Social gatherings are limited to two people, restaurants close at 6 p.m. and it is rare to see anyone without a mask.

Most office employees have reverted to working from home.

Hong Kong and mainland China are among the few places in the world still aiming to suppress every COVID-19 outbreak, but the Omicron variant has proven tough to control and the spread is piling pressure on a stretched healthcare system.

Mainland measures announced on Saturday will give Hong Kong some breathing space as medical capacity is tested on all fronts, although there were no specific details of the plans and it was not clear how quickly they could be implemented.

Hospital beds for COVID patients in the global financial hub are at 90% occupancy, data from the Hospital Authority showed, while isolation facilities were nearing their maximum.

Welfare Minister Law Chi-kwong said the city will shorten the quarantine period for residents and staff of residential care homes for the elderly because they are running short of isolation beds.

Hong Kong has recorded around 24,000 infections and more than 200 deaths, far lower than other similar major cities, although medical experts warn it could see 28,000 daily infections by the end of March, with the unvaccinated elderly a particular worry.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Himalaya yogi ran India’s top bourse as puppet master, regulator says

Investing.com - Financial Markets Worldwide

Please try another search

Stock Markets6 hours ago (Feb 14, 2022 12:31AM ET)

2/2

Himalaya yogi ran India's top bourse as puppet master, regulator says© Reuters. FILE PHOTO: Chitra Ramkrishna, Managing Director and CEO, National Stock Exchange (India), participates in The Future of Finance panel discussion during the IMF-World Bank annual meetings in Washington October 12, 2014. REUTERS/Yuri Gripas

2/2

By Abhirup Roy

MUMBAI (Reuters) – The former head of India’s largest stock exchange shared confidential information with a yogi and sought his advice on crucial decisions, a probe by the market regulator has found, ahead of the bourse’s much-awaited public listing.

In a case of “bizarre misconduct” that was a “glaring breach” of regulations, Chitra Ramkrishna, the former chief executive of National Stock Exchange (NSE), shared information including the bourse’s financial projections, business plans and board agenda with a purported spiritual guru in the Himalayas, the Securities and Exchange Board of India (SEBI) said.

“The sharing of financial and business plans of NSE … is a glaring, if not unimaginable, act that could shake the very foundations of the stock exchange,” SEBI said in an order, imposing penalties on Ramkrishna, the bourse and other top former executives for the lapses.

Ramkrishna, who quit NSE in 2016 citing “personal reasons”, was not immediately reachable for comment. NSE and SEBI did not respond to requests for comment.

Allegations of corporate governance lapses have dogged NSE for several years. The exchange had planned to go public in 2017 but its listing was derailed by allegations officials had provided some high frequency traders unfair access through co-location servers, which could speed up algorithmic trading.

After a three-year investigation, SEBI fined the exchange over $90 million and barred it from raising money on securities markets for six months. NSE challenged the order in court and has sought SEBI’s approval to file for a new IPO.

However, during that investigation, SEBI found documents showing Ramkrishna’s emails to an unknown person, who she said during questioning was a “spiritual force” she had sought guidance from for 20 years.

Ramkrishna, in her defence, told SEBI that sharing of information with the person who was “spiritual in nature” did not compromise confidentiality or integrity.

The SEBI order however stated that it was “absurd” for Ramkrishna to contend that sharing sensitive information such as dividend pay-out ratios, business plans and the performance appraisals of NSE employees did not cause harm.

The SEBI probe also found the purported guru had substantial influence over the appointment of a mid-level executive, without any capital market experience, directly as an adviser to Ramkrishna with inadequate documentation and a salary higher than most senior NSE officials.

The guru was running the exchange, and Ramkrishna was “merely a puppet in his hands”, SEBI said.

Questions emailed to an address given in the SEBI order as belonging to the guru were not immediately responded to.

SEBI also said NSE and its board were aware of the exchange of confidential information but had chosen to “keep the matter under wraps”.

The regulator fined NSE 20 million rupees ($270,000) and has barred the exchange from launching any new products for six months.

SEBI imposed a penalty of 30 million rupees on Ramkrishna and barred her from any bourse and SEBI-registered intermediary for three years.

Ramkrishna was among a group of executives who in the early 1990s started NSE as a challenger to the more established BSE Ltd, then known as Bombay Stock Exchange. She was appointed joint managing director of NSE in 2009 and promoted to CEO in 2013.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

China issues blizzard alert in first Beijing snowfall of Olympics

Investing.com - Financial Markets Worldwide

Please try another search

World4 hours ago (Feb 13, 2022 06:55AM ET)

China issues blizzard alert in first Beijing snowfall of Olympics© Reuters. A municipal worker sweeps snow off a street amid snowfall in Beijing, China January 20, 2022. REUTERS/Carlos Garcia Rawlins

BEIJING (Reuters) – The China Meterological Administration issued a blizzard warning for Sunday saying significant snowfall is expected in large parts of northern China including Beijing, the capital and current site of the Winter Olympics.

The weekend snowfall, which had already begun in some areas on Saturday, is the capital’s first since the Winter Olympics opened on Feb. 4, government notices showed.

The Women’s Freeski slopestyle qualification in Zhangjiakou, featuring Team China gold medalist Eileen Gu, was rescheduled to later on Sunday due to the snow, a notice on the Beijing 2022 official Olympic website said.

The authorities issued a blue blizzard warning, the lowest of the country’s four-tiered alerts, with some regions forecast to receive up to 4 cm (1.6 inches) of snow. They advised the public to cut back on unnecessary outdoor activities.

“It is expected that there will be heavy snow in parts of central and southern Inner Mongolia, northern Shanxi, central and northern Hebei, northern Beijing, southern Tianjin, eastern and southern Liaoning, and Xinjiang along the Tianshan Mountains today,” the China Meterological Administration notice said.

Beijing temperatures dropped, with the Beijing Meteorological Observatory forecasting a minimum temperature of -6 degrees Celsius (21°F). (This story corrects headline to specify first Beijing snowfall)

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Indian Muslim students say hijab ban forces choice of religion or education

Investing.com - Financial Markets Worldwide

Please try another search

World1 hour ago (Feb 13, 2022 07:40AM ET)

Indian Muslim students say hijab ban forces choice of religion or education© Reuters. FILE PHOTO: Women hold placards during a protest, organised by Hum Bhartiya, against the recent hijab ban in few colleges of Karnataka state, on the outskirts of Mumbai, India, February 11, 2022. REUTERS/Francis Mascarenhas

By Sunil Kataria

UDIPI, India (Reuters) – Ayesha Imthiaz, a devout Indian Muslim who considers wearing a hijab an expression of devotion to the Prophet Mohammad, says a move by her college to expel hijab-wearing girls is an insult that will force her to choose between religion and education.

“The humiliation of being asked to leave my classroom for wearing a head scarf by college officials has shaken my core belief,” said the 21-year-old student from southern Karnataka’s Udupi district, where protests over the head covering ban began.

“My religion has been questioned and insulted by a place which I had considered as a temple of education,” she told Reuters.

“It is more like telling us you chose between your religion or education, that’s a wrong thing,” she said after studying for five years at the Mahatma Gandhi Memorial college in Udupi.

Several Muslim girls who protested the ban had received threatening calls and were forced to stay indoors, she added.

College officials say students are allowed to wear the hijab on campus and only asked them to take it off inside the classroom.

Udupi is one of three districts in Karnataka’s religiously sensitive coastal region, which is a stronghold of Prime Minister Narendra Modi’s right-wing Bharatiya Janata Party (BJP).

The stand-off has increased fear and anger among minority Muslims, who say the country’s constitution grants them the freedom to wear what they want. Protests over the ban have escalated, with hundreds demonstrating this month in Kolkata and Chennai.

Last week, a judge at the state’s high court referred petitions challenging the ban to a larger panel.

The issue is being closely watched internationally as a test of religious freedom guaranteed by the Indian Constitution.

The U.S. Office of International Religious Freedom (IRF) on Friday said the hijab bans “violate religious freedom and stigmatize and marginalize women and girls.”

In response, India’s foreign ministry on Saturday said outside comments over internal issues were not welcome and the matter was under judicial review.

Imthiaz and six other Muslim girls protesting the ban say they are determined to fight for their religious freedom in the face of some hardline Hindu students and even some of their friends.

“It is really hurtful to see our own friends going against us and telling ‘I have a problem with you wearing the hijab’…its affected our bonds and mental health,” Imthiaz said.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Top 5 Things to Watch in Markets in the Week Ahead

Investing.com - Financial Markets Worldwide

Please try another search

EconomyFeb 13, 2022 07:53AM ET

Top 5 Things to Watch in Markets in the Week Ahead© Reuters

By Noreen Burke

Investing.com — Concerns over tensions between Russia and Ukraine together with uncertainty over how aggressively the Federal Reserve is going to raise interest rates look set to dominate market sentiment in the week ahead. Wednesday’s Fed minutes may provide a sense of how quickly policymakers want to move, while appearances by several Fed officials will also be parsed for clues. The U.S. data calendar features January figures on producer prices, which will be closely watched after data last week showing hit their highest in 40 years last month. Meanwhile, earnings season is ending, but not before a last flurry of reports. And the U.K. is to release a string of economic data that looks set to keep the Bank of England on track for more rate hikes. Here’s what you need to know to start your week.

  1.  Geopolitical tensions

Wall Street’s three main indexes closed sharply lower on Friday after the White House warned that a could begin any day. While stocks got hit, prices for Treasuries, the and other safe-haven assets, such as rose.

prices also surged as the prospect of sanctions on Russia, a top producer, added to fears over already tight global supplies.

Some analysts believe soaring prices could exacerbate already high inflation, adding to pressure on the Fed to raise rates more aggressively.

“By pushing energy prices even higher, a Russian invasion would likely exacerbate inflation and redouble pressure on the Fed to raise interest rates,” said Bill Adams, Chief Economist for Comerica Bank, in a note cited by Reuters.

“From the Fed’s perspective, the inflationary effects of a Russian invasion and higher energy prices would likely outweigh the shock’s negative implications for global growth,” he said.

  1. Fed minutes, speakers

With markets already pricing in a strong chance the Fed will hike rates by half a percentage point at its upcoming March meeting, Wednesday’s from the Fed’s January meeting, will be scrutinized for any indications on how big a move officials are contemplating.

Last month Fed Chair Jerome Powell flagged a March lift-off and said there was “quite a bit of room” to raise interest rates without threatening the recovery in the labor market.

On Friday, Goldman Sachs said it now expects quarter percentage point rate hikes this year, up from its previous forecast of five, as it updated its forecast following Thursday’s data.

Several Fed officials are due to make appearances this week that will also be closely watched. St. Louis Fed’s and Cleveland Fed President Loretta are to speak on Thursday. On Friday Fed Governor Lael speaks, as do New York Fed President John , Fed Governor Christopher and Chicago Fed President Charles .

Last Thursday Bullard said in the light of the latest CPI reading he now wants a of interest rate hikes over the next three Fed meetings.

  1. U.S. economic data

Markets will get an additional update on the inflation picture with Tuesday’s release of figures, which are expected to remain elevated.

Soaring inflation has seen so Wednesday’s data on retail sales will also be in focus this week. Retail sales are expected to have risen last month, boosted by higher auto sales.

The economic calendar features reports on , , , and .

  1. Earnings

Earnings season is drawing to a close, but this week will see a big flurry of . Airbnb Inc (NASDAQ:) reports on Tuesday, followed by semiconductor giant NVIDIA (NASDAQ:) and Cisco Systems (NASDAQ:), which are both due to report after the close of trade on Wednesday.

Retailer Walmart (NYSE:), known for its everyday low pricing, reports Thursday, and is better positioned than other retailers to withstand rising price pressures. The pandemic has triggered inflation across the supply chain from labor to raw materials, forcing companies to pass higher prices onto consumers. However, many companies could still not fully offset the impact and that hit their profits.

Deere (NYSE:), the world’s largest maker of farm equipment reports Friday.

  1. U.K. data

It’s a packed week on the U.K. economic calendar with the latest figures out Tuesday, data on Wednesday and on Friday.

The Bank of England has just delivered the first back-to-back rate hikes since 2004 amid surging inflation, which it expects to peak above 7%. Markets are currently pricing in another 130 basis points in hikes before the end of the year.

The jobs report is expected to show the unemployment rate unchanged from last month’s reading of 4.1% while the annual rate of inflation is expected to hold steady at 5.4%.

Retail sales are expected to rebound from December’s 3.7% slump, but inflation, rising energy bills, higher rates and tax hikes will all weigh on the outlook.

–Reuters contributed to this report

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

India’s Life Insurance Corp files $8 billion IPO papers

India's Life Insurance Corp files $8 billion IPO papers© Reuters. FILE PHOTO: Life Insurance Corporation of India (LIC) logo is seen at a metro station in Mumbai, India, January 31, 2022. REUTERS/Francis Mascarenhas/File Photo

By Nupur Anand, Aftab Ahmed and Sudarshan Varadhan

NEW DELHI (Reuters) – State-run Life Insurance Corporation of India (LIC) has filed draft papers with the market regulator to sell 5% of its shares to potentially raise nearly $8 billion, dwarfing the biggest IPO in Asia’s third-largest economy by a considerable margin.

The offering is crucial to the Narendra Modi-led government’s efforts to meet its sharply trimmed divestment target for the current financial year and will provide a measure of the success of the government’s pro-market policies.

India’s largest insurer will be selling 316.25 million shares, according to the draft prospectus filed on Sunday, amounting to nearly 5% of the post-offer paid up share capital.

The government could raise a little more than 600 billion Indian rupees ($7.97 billion) from the issuance rather than the initial plan for about 900 billion rupees, having trimmed the offering because of market conditions, a government source said.

The listing is likely to be completed by the end of March, the source added.

The filing also stated an embedded value of 5.39 trillion Indian rupees ($71.56 billion). The embedded value is a measure of future cash flows in life insurance companies and a key financial gauge for insurers.

The IPO is seen as a test of investor appetite for new offerings, with a number of companies that listed last year now trading below their offer prices on concerns over lofty valuations and looming increases to interest rates by global central banks fighting inflationary pressures.

The expected listing also comes against the backdrop of foreign investors pulling out funds from the domestic market.

The life insurance giant, which had more than 105,000 full-time employees at the end of September and counts itself among the top five global insurers, manages more than $500 billion of assets and holds more than 60% of India’s life insurance market by premiums.

Graphic: Top five global insurers: https://graphics.reuters.com/INDIA-IPO/LIC/gkvlgjzqjpb/chart.png

LIC has more than 280 million policies in force and a report by Brand Finance has put the insurer’s brand value at $8.66 billion.

Though the government’s scaling back of its privatisation target to $10.5 billion raised uncertainty about the size of the planned LIC offering, government officials have said investors should not assume the revised target points to a smaller than expected IPO for LIC.

India’s most recent IPO by a life insurer was in 2017, when HDFC Life Insurance raised $1.3 billion. Its share price has nearly doubled since the listing.

Graphic: India’s 10 biggest IPOs: https://graphics.reuters.com/INDIA-IPO/IPO/zdpxoqmnyvx/chart.png

LIC’s planned offering will dwarf the record $2.5 billion IPO by payments company Paytm last year. Though Paytm’s IPO was then the country’s biggest, the shares have since fallen by 58% from its offer price.

Indian companies raised a record $16.6 billion through initial share sales in 2021, 52% more than the previous record high in 2017, Refinitiv data shows.

The LIC listing could make it one of India’s five biggest companies by market capitalisation, joining energy to telecoms group Reliance Industries, software services company TCS, HDFC Bank and IT giant Infosys (NYSE:).

PAST IPOs

State-run companies that completed the previous three biggest such IPOs have lost more than half their market value since listing.

Coal India is trading at about 145 rupees a share, a far cry from its listing price of about 350 rupees in 2010.

Similarly, state-run insurers General Insurance Corp and New India Assurance are trading at a little more than 135 rupees per share, less than half their IPO prices.

Government officials told Reuters that India will be “very sensitive” while pricing the LIC share issue to ensure decent long-term returns on investment. The price band will be decided in the coming days and roadshows for potential investors will begin shortly.

Goldman Sachs (NYSE:), Citigroup (NYSE:), Axis Capital (NYSE:), Nomura and SBI Capital Market along with five other banks are the IPO bookrunners, according to the draft papers.

($1 = 75.3188 Indian rupees)

U.S. says Russia may create pretext to attack Ukraine

U.S. says Russia may create pretext to attack Ukraine© Reuters. Service members take part in military exercises held by the armed forces of Russia and Belarus at the Gozhsky training ground in the Grodno region, Belarus, February 12, 2022. Leonid Scheglov/BelTA/Handout via REUTERS

By David Lawder and Pavel Polityuk

WASHINGTON/KYIV (Reuters) -Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday, as it reaffirmed a pledge to defend “every inch” of NATO territory.

Russia has more than 100,000 troops massed near Ukraine, which is not part of the Atlantic military alliance, and Washington – while keeping open the diplomatic channels that have so far failed to ease the crisis – has repeatedly said an invasion is imminent.

Moscow denies any such plans and has accused the West of “hysteria”.

German Chancellor Olaf Scholz, on the eve of a trip that takes him to Kyiv on Monday and Moscow for talks with President Vladimir Putin on Tuesday, called for Russia to de-escalate and warned of sanctions if Moscow did invade.

A German official said Berlin did not expect “concrete results https://www.reuters.com/world/europe/germany-hopes-putin-meet-will-yield-insight-into-his-aims-govt-source-2022-02-13” but diplomacy was important.

In what could amount to a major concession to Moscow, Ukraine’s ambassador to Britain told the BBC Kyiv could drop its bid to join NATO to avoid war.

Ambassador Vadym Prystaiko was quoted as saying Ukraine was willing to be “flexible” over its goal to join the Atlantic military alliance.

“We might – especially being threatened like that, blackmailed by that, and pushed to it,” Prystaiko was quoted as saying when asked if Kyiv could change its position on NATO membership.

In Washington, President Joe Biden’s National Security Adviser Jake Sullivan said an invasion could begin “any day now”.

“We cannot perfectly predict the day, but we have now been saying for some time that we are in the window,” Sullivan told CNN.

U.S. officials said they could not confirm reports that U.S. intelligence indicated Russia planned to invade on Wednesday.

Sullivan said Washington would continue sharing what it learned with the world in order to deny Moscow the chance to stage a surprise “false flag” operation that could be a pretext for an attack.

It would also “defend every inch of NATO territory … and Russia we think fully understands that message,” Sullivan added in a separate CBS interview.

Biden spoke to his Ukrainian counterpart Volodymyr Zelenskiy on Sunday and they agreed on the importance of continuing to pursue diplomacy and deterrence in response to Russia’s military build-up, the White House said after the call.

Zelenskiy’s office said he invited Biden to visit Ukraine soon. The White House declined to comment.

Agreeing with the U.S. assessment that an invasion could happen “at any moment,” a British government spokesperson said Britain was working on a package of military support and economic aid for Ukraine to be announced in coming days. Prime Minister Boris Johnson will make a trip to Europe later this week to build support to end the standoff with Russia.

Biden told Putin in a phone call https://www.reuters.com/world/biden-putin-speak-ukraine-warnings-mount-2022-02-12 on Saturday that the West would respond decisively to any invasion and such an attack would harm and isolate Moscow.

Ukrainian Defence Minister Oleksii Reznikov said on Twitter (NYSE:) that Kyiv had so far received almost 1,500 tonnes of ammunition from allies delivered on 17 flights, including about 180 tonnes from the United States.

Canada’s defense ministry said it has temporarily withdrawn its Ukraine-based military personnel to an undisclosed location in Europe. Canada, which is home to the world’s third-largest Ukrainian population after Ukraine and Russia, has kept a 200-strong training mission in western Ukraine since 2015.

RUSSIAN SECURITY DEMANDS

The Kremlin said Putin told Biden during their call on Saturday that Washington had failed to take Russia’s main concerns into account, and that it had received no “substantial answer” on key elements of its security demands.

Putin wants guarantees from the United States and NATO that include blocking Ukraine’s entry into NATO, refraining from missile deployments near Russia’s borders and scaling back NATO’s military infrastructure in Europe to 1997 levels.

Washington regards many of the proposals as non-starters but has pushed the Kremlin to discuss them jointly with Washington and its European allies.

“The diplomatic path remains open. The way for Moscow to show that it wants to pursue that path is simple,” U.S. Secretary of State Anthony Blinken https://www.reuters.com/world/blinken-says-risk-russian-invasion-high-enough-justify-us-embassy-drawdown-2022-02-13 said after he held talks on Saturday with Asian allies.

Washington and its European allies and others have been scaling back or evacuating embassy staff and urging citizens to depart immediately or avoid travel to Ukraine.

U.S. staff at the Organisation for Security and Cooperation in Europe (OSCE) began leaving https://www.reuters.com/world/us/us-staff-osce-begins-pullout-donetsk-eastern-ukraine-2022-02-13 by car from the rebel-held city of Donetsk in east Ukraine on Sunday, a Reuters witness said.

The OSCE conducts operations in Ukraine including a civilian monitoring mission in Russian-backed, self-proclaimed separatist republics in the regions of Donetsk and Luhansk, where a war that began in 2014 has killed more than 14,000 people.

Ukraine said on Sunday it wanted talks with Russia and members of the OSCE within 48 hours to discuss Russia’s military build-up. Ukrainian Foreign Minister Dmytro Kuleba said Moscow had not responded after Kyiv on Friday invoked a part of the Vienna Document, a set of security agreements, to demand Moscow explain its military activities.

Dutch carrier KLM said https://www.reuters.com/world/europe/ukraine-sees-no-point-closing-its-airspace-presidential-adviser-says-2022-02-13 it would stop flying to Ukraine and Germany’s Lufthansa said it was considering suspending flights.

An adviser to Zelenskiy, Mykhailo Podolyak, said that regardless of what airlines chose to do Kyiv would not close its airspace as that would resemble “a kind of partial blockade”.

A French presidency official said on Saturday, after President Emmanuel Macron spoke with Putin, that there were no indications from what the Russian leader said that Moscow was preparing an offensive, though Paris remained “extremely vigilant”.

British defence minister Ben Wallace cautioned against putting too much hope in talks, telling The Sunday Times of London that there was “a whiff of Munich in the air from some in the West”, referring to a 1938 pact that failed to halt German expansionism under Adolf Hitler.

U.S.-Canada bridge reopens after police clear protesters

Investing.com - Financial Markets Worldwide

Please try another search

Stock Markets5 hours ago (Feb 14, 2022 12:42AM ET)

2/2

U.S.-Canada bridge reopens after police clear protesters© Reuters. FILE PHOTO: Protesters interact with police officers, who stand guard on a street after Windsor Police said that they are starting to enforce a court order to clear truckers and supporters who have been protesting against coronavirus disease (COVID-19) va

2/2

By Kayla Tarnowski, David Morgan and Chris Helgren

WINDSOR, Ontario/WASHINGTON/OTTAWA (Reuters) -North America’s busiest trade link reopened for traffic late Sunday evening, ending a six-day blockade, Canada Border Services Agency said, after Canadian police cleared the protesters fighting to end COVID-19 restrictions.

Canadian police made several arrests on Sunday and cleared protesters and vehicles that occupied the Ambassador Bridge in Windsor, Ontario, after a court order on Friday.

The blockade https://www.reuters.com/world/americas/truckers-ambassador-bridge-perfect-spot-threaten-us-canada-trade-2022-02-11 had choked the supply chain for Detroit’s carmakers, forcing Ford Motor (NYSE:) Co, the second-largest U.S. automaker, General Motors Co (NYSE:) and Toyota Motor (NYSE:) Corp to cut production.

The bridge carries about $360 million a day in two-way cargoes – 25% of the value of all U.S.-Canada goods trade.

A Windsor Police official told reporters that 20 to 30 arrests had been made. Police also seized vehicles within the demonstration area, according to an earlier statement.

Police stepped up their presence on Sunday with more than 50 vehicles, including cruisers, buses and an armoured car, as the number of protesters dropped to around 45 from roughly 100 on Saturday. Windsor Police tweeted “there will be zero tolerance for illegal activity”.

In Ottawa, counter protests started blocking vehicles trying to join the protests on Sunday, with residents losing patience over the three-week-old demonstrations.

In the western Canadian province of British Columbia, the Pacific highway border crossing in Surrey was temporarily closed on Sunday afternoon, for a second day, by a group of about 200 protesters, according to a Reuters photographer on the scene. A small group of protesters gathered on U.S. side of the border, blocking incoming vehicles.

The “Freedom Convoy” protests https://www.reuters.com/world/americas/how-ottawas-anti-vaccine-mandate-protests-are-spreading-globally-2022-02-09, started in the national capital Ottawa by Canadian truckers opposing a vaccinate-or-quarantine mandate for cross-border drivers, entered its 17th day on Sunday. But it has now morphed into a rallying point against broader COVID-19 curbs, carbon tax and other issues, with people joining in cars, pick-up trucks and farm vehicles.

“We’re fed up, we’re tired. We want Ottawa to be boring again,” said an Ottawa resident at a counter protest in front of the city’s police headquarters.

The Canadian government had discussed whether to invoke special emergency powers https://www.reuters.com/article/us-health-coronavirus-canada-emergency-f-idCAKBN21442M to deal with the protests in the capital, Emergency Preparedness Minister Bill Blair told CBC News on Sunday. Blair said the lack of police enforcement in Ottawa was “inexplicable.”

The rarely used Emergencies Act would allow the federal government to override the provinces and authorize special temporary measures to ensure security during national emergencies anywhere in the country. It has only been used once in peacetime – by Trudeau’s father, former Prime Minister Pierre Trudeau – in 1970.

Strangling bilateral trade, protests have spread to three border points, including in Alberta and Manitoba. Canadian police have said the protests have been partly funded by U.S. supporters, and Ontario froze funds donated via one U.S. platform GiveSendGo on Thursday.

The estimated loss so far from the blockades to the auto industry alone could be as high as $850 million, based on IHS Markit’s data, which puts the 2021 daily flow in vehicles and parts at $141.1 million a day.

“Today, our national economic crisis at the Ambassador Bridge came to an end,” Windsor City Mayor Drew Dilkens said in a tweet.

In Europe, a convoy of 150 cars protesting COVID-19 restrictions left Paris on Sunday morning and headed towards Brussels, protesters told Reuters.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Would you like to receive notifications on latest updates for new Trades? No Yes
Scroll to Top