NASDAQ snaps a five day losing streak

Dow up over 700 points at the session highs

The major US indices close sharply higher on the first day of the new trading month/new trading quarter with the NASDAQ index snapping a five day losing streak.

Shares of Merck surged 8.6% on the back of a Covid drug that cuts hospitalizations by 50%. Transportation stocks like United airlines, Delta Airlines and Southwest Airlines are also higher on the back of that news. Energy was the best performing sector as oil prices move back to the upside.
  • NASDAQ up for the first time in six sessions
  • Dow S&P, NASDAQ still on track for weekly losses
  • Russell 2000 index up nearly 2%
  • All S&P sectors are higher after yesterday saw the same sectors all lower
The final numbers are showing
  • Dow industrial average rose 483.53 points or 1.43% at 34327.45
  • S&P rose 49.55 points or 1.15% at 4357.09
  • NASDAQ index rose 118.12 points or 0.82% at 14566.70
  • Russell 2000 rose 37.26 points or 1.69% at 2241.63
For the week,, the major indices all closed lower.
  • Dow Jones -3.0%
  • S&P index -3.84%
  • NASDAQ index -3.13%

Japan GDP preliminary for Q2 -7.8% q/q (vs. expected -7.5%)

Japan GDP preliminary for Q2 2020, capturing the impact of the COVID-19 outbreak and response

GDP sa -7.8% q/q  , a miss on already ugly low expectations

  • expected -7.5%, prior -0.6%

GDP annualised sa -27.8% q/q (ps when you see screaming headlines that Japan’s economy has shrunken 30% …. it hasn’t, but this is what the economically illiterate are referring to – you’ll know better)

  • expected -26.9%, prior -2.2%

GDP nominal -7.4% q/q

  • expected -6.5%, prior -0.5%

GDP deflator (an inflation indication) %

  • expected 1.7%, prior 0.9%

Private consumption -8.2%

  • expected -6.9% q/q, prior -0.8%

Business spending -1.5% … if there is some not quite so bad news to take away from the data release this smaller than expected drop in capex is it

  • expected -4.0%, prior -1.7%
This is the 3rd consecutive quarter of GDP contraction for Japan.
Japan is a net exporters, the decline in demand offshore has taken a heavy toll on shipments – Q2 exports fell at their fastest since Q1 2009 (GFC influence) and external demand has subtracted the biggest hit from GDP since 1980 (based on comparable data).
ps. yen is doing little on the data release.

About 84,545 bank fraud cases reported during 2019-20: RBI in RTI reply

Around 84,545 fraud cases – involving about Rs 1.85 lakh crore – were reported by scheduled commercial banks and select FIs during 2019-20, an RTI activist said, citing information received from the Reserve Bank of India.

RTI (Right to Information) activist Abhay Kolarkar said that he had sought various banking related queries under the jurisdiction of the RBI in June 2020, and the replies to the same he received a few days back.

Kolarkar in his RTI query sought to know how many fraud cases have taken place during April 1, 2019 to March 31, 2020 and the amount involved in it.

The RBI stated that the total number of frauds reported by Scheduled commercial banks and select FIs during Financial Year 2019-20 is 84,545 and the amount involved therein is Rs 1,85,772.42 crore.

To the query about how many bank employees are involved in fraud cases and how much amount is involved, the RBI replied that the information on the question is not available.

“However, it may be noted that total number of frauds reported to have been committed by staff, as reported by Scheduled commercial banks and Select FIs during FY 2019-20 is 2,668 and amount involved therein is Rs 1,783.22 cr,” the central bank said.

The RTI also sought to know how many consumer complaints received by the RBI’s 15 ombudsmen offices during April 1, 2019 to March 31, 2020.

During July 1, 2019 to March 2020, about 2,14,480 complaints were received.

The highest number of complaints received by SBI- 63,259, HDFC bank- 18,764, ICICI bank- 14,582, Punjab National Bank- 12,469, Axis bank -12,214 followed by other banks.

The central bank in its reply said about 56,493 complaints received between April 1, 2019 to June 30, 2019.

The RTI query also sought information on number of branches exited by banks and those closed after merger during April 1, 2019 to March 31, 2020.

To which, the RBI provided information about the ‘number of merged branches with another branch of same bank’ during 2019-2020, which stood at 438 branches — SBI – 130, Central Bank of India – 62, Allahabad Bank – 59 and other banks.

The total number of branches closed in 2019-20 are 194, including 78 branches of SBI and 25 of Fino payments Bank limited.

Indian Economy :Unknown Facts

Unknown Fact

India’s long-term local currency debt is rated at Ba2 by Moody’s, two levels below the investment grade and at par with Armenia and Turkey. Indian government debt accounts for about 80 percent of GDP. Standard & Poor’s and Fitch Ratings have a rating of BBB-, the lowest investment grade.

The government’s annual debt repayments will rise to 1.14 trillion rupees in the next fiscal year from 531 billion rupees.

The 10-year yield has risen 62 basis points in the past year, the worst performer during that period among the 10 Asian local-currency debt markets outside Japan, according to indexes compiled by HSBC Holding Plc. It fell 95 basis points in the previous 12 months.

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