![]() ![]() G-20 leaders will be meeting Bali, Indonesia this week on Tuesday and Wednesday, and the agenda is likely to be centered around geopolitical tensions and financial market risks. ![]() On top of that, speeches will be made from Neel Kashkari and Loretta Mester on Thursday G-20 meeting brings focus back on geopolitics and markets Remarks from Fed Governor Christopher Waller will likely be a focus as Waller previously proposed not to pause, until core PCE falls below 3% on a monthly annualized basis. Investors will get to gauge what the Fed’s latest thinking is, as we hear from a number of Fed officials this week, who will likely focus on the softer CPI print last week and if it’s changed their assessment of inflation and interest rate rates. Look for hints on the Fed’s hiking path in Fed speak this week Elsewhere in America, Canada will release inflation and housing starts data. On top of that, a bevy of large retailers, report earnings including Home Depot, Walmart, and Target, which will help investors gauge the health of the world's largest economy. Then on Wednesday, retail sales are on watch and are expected to have rebounded, rising 1% in October after stagnating the month earlier. If the numbers are weaker than this, it could provide further support to the equity market rally, as the Fed would garner more catalysts to slow its pace of hikes. Bloomberg consensus estimates PPI will rise 8.4% Y/Y and +0.3% M/M for core PPI or +7.2% Y/Y. As a result, this week investors will pay more attention to the October producer prices index (PPI) numbers on Tuesday, as they try to gauge if the service component of core inflation is slowing. This is important to the calculation of core PCE, which the Fed watches most closely. In the October CPI release last week, we saw a fall in health insurance costs due to technical factors, which added to the slowing of the service component of core CPI. ![]() Investors will be looking for further signs that point to a slowdown in inflationary pressures. ![]() "The relief comes just in time, and it will, at the very least, assist telecom companies in navigating the market," said Sonam Chandwani, Managing Partner at law firm KS Legal & Associates.US eco data and news on tap US producer prices, retail sales and big retail earnings India's newest carrier, Reliance Jio has already paid its small share of AGR dues.Īs part of the measures, the cabinet also allowed 100% foreign direct investment in the sector via the automatic route, Vaishnaw said, a move that will allow easy investment in the sector without separate government approvals. so that more and more players can get into this sector," Vaishnaw said.īharti Airtel has said it paid dues estimated at 180 billion rupees and government figures show it owes a further 259.76 billion. And for that there will be further reforms when the 5G spectrum is auctioned out. "We believe that there should be healthy competition in the sector. On Wednesday, Vaishnaw said the government did not want a duopoly. It is saddled with net debt of 1.91 trillion rupees and its billionaire chairman's resignation last month sparked fears that India might be left with just two major carriers. Vodafone Idea, a combination of the India unit of Britain's Vodafone Group and domestic telecoms firm Idea Cellular, has paid the government 78.54 billion rupees ($1.07 billion) in AGR dues, but still owes roughly 500 billion. The Supreme Court had directed companies to clear AGR dues by 2031. The measures, which also include a four-year deferral in payments of AGR dues, will likely ease the cash crunch at Vodafone Idea. India had long held that even companies' non-telecoms revenue was part of AGR, leading to a lengthy legal battle which culminated in 2019 with the Supreme Court siding with the government's view and leading to a bill of roughly $13 billion for wireless carriers.Īll telecoms reforms will be applied going forward and not retrospectively, Vaishnaw said, which means Indian carriers still have to settle billions of dollars in outstanding AGR payments to the government. Vaishnaw said the government was changing the contentious definition of adjusted gross revenue (AGR) to count only telecoms revenue. India's telecoms sector ran into trouble in late 2016 with the entry of billionaire Mukesh Ambani's Reliance Jio, sparking a price war that has forced some rivals out of the market and turned profits into losses. Vodafone Idea's owners, Britain's Vodafone Group and India's Aditya Birla Group, said the reforms will help unshackle the telecoms sector. Some of the other measures announced in the telecoms package include raising the tenure of airwaves held by firms to 30 years from the current 20 years, waiving the usage charge for airwaves acquired via future auctions, and completely free sharing of spectrum between carriers, Vaishnaw said.īharti Airtel and Reliance Jio said the measures will boost growth in the telecoms industry. ![]()
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