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Morning News Call – India, July 18

To access a PDF version of this newsletter, please click here here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH LIVECHAT – BONDS UPDATE Reuters European Government Bonds Correspondent Abhinav Ramnarayan delves into sovereign bond markets at 5:00 pm IST. To join the conversation, click on the link: INDIA TOP NEWS • Yes Bank profit slumps on higher provisions, asset quality hit Yes Bank posted a 91% drop in quarterly profit on Wednesday, due to a nearly three-fold rise in provisions for loan losses, while asset quality deteriorated sharply. • Wipro tops profit forecast on demand from key clients Software services exporter Wipro reported a 13% rise in first-quarter profit thanks to robust demand from financial clients and said its main information technology business could show modest growth in the current quarter. • India panel report on transfer of central bank funds to be submitted to RBI “very soon”-source A Reserve Bank of India (RBI) panel formulating guidelines for transfer of the central bank’s surplus funds to the government has finalized its recommendations and will be submitting its long-delayed report “very soon,” a source familiar with the matter said on Wednesday. • U.S. FDA says Indian drugmaker was shredding, dumping key documents A U.S. Food and Drug Administration (FDA) investigator discovered that India‘s Strides Pharma Science, which exports to the U.S. market, was shredding drug production, quality and laboratory documents and dumping others in a scrap yard. • Nine companies weighing bids for Vedanta’s Zambian assets – minister Zambia expects nine companies to submit bids for Konkola Copper Mines within weeks, mines minister Richard Musukwa said on Wednesday, even as a court case with Mumbai-listed Vedanta over its ownership was underway. • Allahabad Bank reports SEL Manufacturing‘s 6.89 billion rupees fraud Allahabad Bank on Wednesday reported a 6.89 billion rupees fraud related to textile company SEL Manufacturing to the Reserve Bank of India. • Punjab & Sind Bank flags fraud in Bhushan Power account Punjab & Sind Bank said on Wednesday it has reported a 2.38 billion rupee fraud to the country’s central bank, relating to allegations of diversion of funds by the indebted Bhushan Power & Steel Ltd. • Netflix to roll out cheaper mobile-only plan in India Netflix said on Wednesday it would roll out a lower-priced mobile-only plan in India, tapping into a price-sensitive market where data consumption on smartphones is surging. GLOBAL TOP NEWS • Sliding Japan exports, manufacturing gloom heighten economic risks Japan‘s exports fell for a seventh straight month in June, pressured by Sino-U.S. trade frictions, slowing China growth and rising trade protectionism, as manufacturers’ business confidence hit a three-year low. • Japanese official says negotiators working hard on US-Japan trade deal U.S. and Japanese officials are working hard to reach agreement on a bilateral trade agreement, a senior Japanese official told Reuters on Wednesday, adding he was looking forward to news on the deal in the near future. • South Korea’s central bank surprises with rate cut as Japan row adds to risks South Korea’s central bank unexpectedly cut its policy interest rate for the first time in three years, as a trade dispute with Japan among other pressures heightened risks for the already slowing economy. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.2% lower at 11,648.50. • The Indian rupee is expected to open little changed against the U.S. currency amid losses on the dollar index and decline in equities. • Indian government bonds are likely to rise in early session, tracking a fall in crude oil prices and lower U.S. Treasury yields. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.30%-6.36% today. GLOBAL MARKETS • U.S. stock indexes fell on Wednesday as weak results from CSX Corp stoked concerns that the protracted trade war between the United States and China could hurt corporate earnings. • Asian shares wobbled as Wall Street stocks dropped on early signs that the U.S.-China trade war could hurt corporate earnings, helping to underpin solid demand for safe-haven U.S. Treasuries. • The dollar nursed light losses, weighed down by lower U.S. yields and a rebound in the pound from 27-month lows. • U.S. Treasury yields fell on Wednesday as concerns about the U.S.-China trade war boosted demand for safe haven debt and after data showed weakness in the U.S. housing market. • Oil prices fell, extending declines into a fourth day, after official data showed U.S. stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season. • Gold prices rose to their highest in two weeks, as the dollar eased after weaker-than-expected U.S. housing data increased expectations for an interest rate cut by the U.S. Federal Reserve. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.82/68.85 July 17 -$2.47 mln $90.58 mln 10-yr bond yield 6.34 pct Month-to-date -$822.15 mln -$833.59 mln Year-to-date $10.52 bln $567.17 mln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 68.7350 Indian rupees) (Compiled by Yoganand KN in Bengaluru)