Tuesday, 21 August, 2018

Robust IIP data points to manufacturing revival

India's factory output grows 7.1% in December After hitting 25-month high in November, IIP shrinks to 7.1% in December 2017
Elsie Buchanan | 14 February, 2018, 17:57

Consumer food basket inflation eased a little to 4.7 per cent in January, from 4.96 per cent in December.

The inflation data compared with a consensus City expectation for a fall to 2.9 per cent.

The RLA argues that today's figures show that calls by many in the Labour Party and elsewhere for rents to be linked to inflation would leave many tenants worse off. While inflation might hover around 2% or so in 2018, it's unlikely to rise much further. Presumably bond traders looked at the same numbers that Asia Unhedged looked at, and concluded that the price fluctuations of clothing during after-Christmas sales would not determine the policy of the world's most important central bank.

The report follows the Labor Department's annual revisions to CPI last week that took the December monthly increase in the core index down to 0.2 percent, from an initially reported 0.3 percent.

Inflation, including owner occupiers' housing costs, held steady in January, at 2.7 percent. Core consumer price inflation - excluding food, energy, alcohol and tobacco - rose to 2.7 per cent from 2.5 per cent. The manufacturing sector outperformed, clocking an 8.4 per cent growth on a year-on-year basis. In fact, in its last monetary policy committee (MPC) meeting, the central bank hiked the inflation projection for the January- March 2019 quarter to 5.1 per cent from 4.7 per cent in the third quarter.

"Inflation has been the missing piece in the puzzle for rate hikes over the past several months, which had led some members of the [Federal Open Market Committee] to dissent on rate hike decisions over the past year", said Leslie Preston, senior economist at TD.

Champagne orders review of controversial helicopter deal with the Philippines
This was in line with President Rodrigo Duterte's armed forces modernization program. In 2014, the Philippines also bought eight Bell 412 helicopters from Bell Helicopter.


"The negative disparity between wage increases and the cost of living goes on, which turns the heat up on Carney to raise interest rates in an effort to bring down inflation", says Calum Bennie, savings expert at Scottish Friendly.

Mel Stride, the Financial Secretary to the Treasury, said: "The good news is that inflation is expected to fall this year".

As the intraday chart above makes clear, that was the market's first response to the CPI number: the 10-year TIPS yield jumped from 0.76 to 0.80 in the first 10 minutes after the number appeared.

What are they saying?: "This is a classic inflation scare", said Michael Arone, chief investment strategist of State Street Global Advisors, before the CPI report was issued.

"Headline inflation was unchanged with petrol prices rising by less than this time previous year". The mining sector grew by just 1.2 per cent. However, as CPI inflation was rising since Jul'17 it will result in toned down inflation for Jul'18-Dec'18 period, with some inflation prints even possibly slipping below 4% and hence a positive surprise. The CPI rose 0.2 per cent in December.

Recommended

  • Google is bringing Instant one-tap replies to messaging apps

    Google is bringing Instant one-tap replies to messaging apps

    The project is still in very early stages of development, and not much is known about it, other than the fact that it exists. Reply will also have an auto-responder, plus a " do not disturb " mode for those times when you're on holiday, or driving.
    Rising bond yields could win next round in battle with stock market

    Rising bond yields could win next round in battle with stock market

    At the same time, the USA deficit is growing and would be bumped up even more by the Senate budget deal, if it passes Congress. The fragile rebound lifted the market a bit, and the Dow and S&P 500 are now about 8% off their from all-time highs.
    Romero hammers Rockhold in Perth

    Romero hammers Rockhold in Perth

    Rockhold (16-4) applied the pressure in Round 1 in his attempt to break down his opponent and claim the interim belt. A bout Whittaker was the real prize, and courtesy of another highlight finish, Romero will be granted that chance.
  • Armed man killed after breaking into gaming YouTubers' home

    Armed man killed after breaking into gaming YouTubers' home

    Austin authorities indicated that "it was apparent that Giles' sole intent was to cause harm to someone who resides there". As police arrived on scene, a Lincoln sedan with New Mexico plates was seen backing out of the driveway to the home.
    Rahul Gandhi continues with temple circuit

    Rahul Gandhi continues with temple circuit

    Gandhi's 30-minute speech in Hindi was simultaneously translated in the native language Kannada for the benefit of the audience. Rahul Gandhi is campaigning in poll-bound Karnataka ahead of upcoming assembly elections in the state.
    Boris Johnson challenges Aung San Suu Kyi on Rohingya crisis

    Boris Johnson challenges Aung San Suu Kyi on Rohingya crisis

    Neighbouring Bangladesh has agreed a timeframe with Myanmar for repatriating Rohingya people at a rate of 1,500 each week. Rohingya refugees sheltering in Bangladesh must be allowed to return to their homes in safety, Boris Johnson has warned.
  • South Korea's Moon hosts talks with North Korean leader's sister

    South Korea's Moon hosts talks with North Korean leader's sister

    As the first immediate member of the North's ruling family to visit South Korea, Kim was swarmed by the local news media. Blue House spokesman Kim Eui-kyeom cited Moon as replying: "Let's create the environment for that to be able to happen".
    Manchester City's Sergio Aguero hails 'great player' Kevin De Bruyne

    Manchester City's Sergio Aguero hails 'great player' Kevin De Bruyne

    The Algerian saw a deadline day move to the opposing side fall through and he only returned to training with the club on Friday. And Puel claimed both he and the Algeria worldwide will not focus their efforts on the rest of the season without any issues.
    Ireland's Thrashing Of Italy Has Certainly Come At A Cost

    Ireland's Thrashing Of Italy Has Certainly Come At A Cost

    Stockdale soon had his second and Ireland's eighth before Italy grabbed a third late on through Matteo Minozzi . Ireland eased to a 63-10 win over the Italians in Rome a year ago .
  • Newcastle rock United as Huddersfield win at last

    Newcastle rock United as Huddersfield win at last

    The Reds endured a frustrating afternoon at St James' Park and were beaten 1-0 after a second-half victor from Matt Ritchie . Manchester United play Spanish giants Sevilla in the first leg of their last 16 Champions League clash on Wednesday.
    President Trump signs spending bill

    President Trump signs spending bill

    Paul, a fiscal conservative , used procedural tactics to block the Senate from voting on the bill before the midnight deadline. In floor speeches Thursday night, Paul lambasted his fellow Republicans for supporting a bill that will worsen the deficit .
    Oxfam faces fresh probe over Haiti prostitutes scandal

    Oxfam faces fresh probe over Haiti prostitutes scandal

    However, the minister said Oxfam did "absolutely the wrong thing" by not reporting the detail of the incidents to the government. Asked by Andrew Marr whether she felt Oxfam's managers had failed in moral leadership, Ms Mordaunt said: "Yes, I do".

SpaceX launches world's most powerful rocket SpaceX launches world's most powerful rocket Instead of a gentle glide, it slammed into the ocean at around 300 miles per hour , just over 300 feet from the floating platform. The Falcon Heavy core booster for instance missed its sea-based target and pretty much wrecked it in the process.

Olympics: US ski star Shiffrin adjusts her schedule Olympics: US ski star Shiffrin adjusts her schedule The women's giant slalom was to feature 81 skiers, headlined by competition favourite Mikaela Shiffrin of the United States. Men and women shared race days at the 2006 Turin Olympics and 1998 Nagano Olympics, for example.

Benitez warns errors can't be made in opposition to Man United Benitez warns errors can't be made in opposition to Man United However, Mourinho isn't underestimating Newcastle given his poor record at St James' Park ahead of Sunday's clash. Alexis Sanchez has eight goals in his last 10 Premier League games against newly-promoted sides.

Mick Mulvaney denies that he's being considered to replace John Kelly Mick Mulvaney denies that he's being considered to replace John Kelly The FBI informed the White House of these charges, which held up Mr Porter's application for a permanent security clearance. He had denied the allegations and alleged that he "was the victim of repeated physical violence" during his marriage.

Zuma's future in Ramaphosa's hands Zuma's future in Ramaphosa's hands The occasion marked the first time Mandela addressed South Africans after 27 years in prison for opposing apartheid. The demonstrations would have been timed to coincide with a parliamentary vote of no-confidence on February 22.

NY attorney general files lawsuit against Weinstein NY  attorney general files lawsuit against Weinstein Telephone and email messages seeking comment from Weinstein and the company were not immediately returned. The Met Police are now investigating nine different accusations from women against Weinstein.

Patriots Bringing Back Joe Judge Along With Josh McDaniels Patriots Bringing Back Joe Judge Along With Josh McDaniels These include roster construction, salary cap management, et cetera, which was extremely valuable in McDaniels' decision to stay. He has not picked up a football, but he is throwing balls, working on arm speed. "No, I'm not going to do any comments".

Chris Mazdzer Wins US's First Men's Singles Olympic Luge Medal Chris Mazdzer Wins US's First Men's Singles Olympic Luge Medal On Sunday, he'll try to win a historic medal for Team U.S.A using the same technique that has proven effective for him so far. But everything fell apart in the final run as Loch looked a shell of his self, unable to control his line down the hill.

Egyptian air force pounds Sinai militants Egyptian air force pounds Sinai militants Last week the New York Times reported that unmarked Israeli aircraft were carrying out covert strikes in Egypt with the Egyptian president's approval.

National Pizza Day deals in the Lowcountry National Pizza Day deals in the Lowcountry If you ever pick up a pizza pie and don't finish it all in one sitting, we got some reheating instructions from a pro. Those items include everything from a medium two-topping pizza to an eight-piece chicken wing meal, and so much more.

3 people killed in helicopter crash near Grand Canyon 3 people killed in helicopter crash near Grand Canyon He said National Transportation Safety Board officials were expected at the crash scene to begin investigating the cause. The four survivors were airlifted to a Nevada hospital while crews were recovering the three bodies, authorities said.

Russia: Aircraft with 71 on board crashes near Moscow Russia: Aircraft with 71 on board crashes near Moscow Plane crashes are common in Russian Federation , where airlines often operate ageing aircraft in testing flying conditions. All 71 people travelling on a Russian plane which crashed near Moscow have been killed, according to Russian authorities.

Everton tracking possible summer replacement for Allardyce Everton tracking possible summer replacement for Allardyce Everton eased to a comfortable 3-1 victory over Crystal Palace at Goodison Park on Saturday - but a section of the home crowd booed the second-half introduction of Morgan Schneiderlin .

Freezing rain warning in effect for Waterloo Region, snow event in Cambridge Freezing rain warning in effect for Waterloo Region, snow event in Cambridge Environment Canada has lifted a special weather statement for Waterloo Region, however a freezing rain warning is in effect. Freezing rain is expected for the most of the day Sunday after another round of snow developing overnight Saturday.

Clemson Projected As A 3 Seed In March Clemson Projected As A 3 Seed In March Auburn's only losses this season have come against teams rated 17th (Texas A&M), 33rd (Alabama) and 39th in the RPI (Temple). Kansas was the sixth overall seed and part of a stacked West region that included Arizona, North Carolina and Purdue.