India Ratings has maintained a stable outlook for the textile sector for 2019-20 following strong domestic demand, waning impact of the disruptions due to GST and demonetisation and rising exports aided by a weak rupee. India's textiles sector may see higher growth following robust domestic demand and depreciating rupee value, a report said. India Ratings has maintained a stable outlook for the textile sector for 2019-20 following strong domestic demand, waning impact of the disruptions due to GST and demonetisation and rising exports aided by a weak rupee. The textile companies are likely to improve cash-flow from operations for FY20, as their working capital would stabilise as challenges related to demonetisation and the GST subside, Ind-Ra report said. The sector is also likely to continue deleveraging gradually in FY20 in view of strong annual growth generation and some moderation in the debt level. The liquidity of the majority of players in the sector is likely to remain adequate, alongwith an improvement in operational cash generation, backed by steady raw material costs and strong demand from end-user segments, it added. Ind-Ra expects the domestic and global stock-to-use ratios to remain under pressure during cotton year 2018-19. The agency said global cotton production is likely to decline in cotton year 2018-19 owing to a low acreage and adverse weather conditions in key cotton-growing nations. Domestic cotton price moderated to an average rate of Rs 128 per kg during the third quarter of FY19 from the average level of Rs 134 per kg during the second quarter of the current year. While expectations of a high acreage during cotton year 2019-20 narrowing global production gap could keep prices range-bound. China's cotton production continues to be much lower than its consumption. Its cotton deficit was increasingly met through imports over the last three years. With its cotton reserves declining, the sensitivity of global cotton prices to China's cotton policies have increased in the past few quarters. Any decision by China to further increase imports could lead to a rise in global cotton prices. Meanwhile, the India's textile exporters are likely to continue to benefit from improved cost competitiveness due to a weak rupee, which would drive volume growth. Over the first nine-month of FY19, the Indian rupee depreciated at a higher rate against the US dollar than the currencies of key apparel-exporting countries like Vietnam and Bangladesh. India's apparel exports also showed signs of recovery in the third quarter of FY19 and are likely to rise in FY20 after remaining weak for three years, the report said.
Source: Money Control
A gauge measuring overall activity, or animal spirits, moved two notches lower in December from a month ago, underpinning a view that India’s growth has slowed and it might need a dose of fiscal and monetary stimulus to boost demand. The indicator, compiled by Bloomberg, reflects a pullback in new orders and business activity, as well as easing inflationary pressures. While overall demand remained subdued, expectations of a financial package for farmers in the governments interim budget is stoking hopes for a revival in rural consumption. Here’s a breakdown of the dashboard:
Business Activity
Growth in both services and manufacturing slowed in December, with the Nikkei India Composite PMI Output Index falling to 53.6 from a 25-month high of 54.5 the previous month. While manufacturing firms saw a slower expansion in jobs creation, the dominant services sector saw companies hire extra staff, all of which supported business sentiment at a three-month high. Still, input-cost pressures eased, suggesting selling prices for firms slowed. That’s likely to make it easier for the inflation-targeting Reserve Bank of India to cut interest rates in the coming months. Investors are hoping that the six-member monetary policy committee led by new Governor Shaktikanta Das will junk its hawkish bias for a more neutral stance when it meets next week.
Exports
Exports in December barely grew from a year earlier, while performing only slightly better than in November as a global slowdown kept the lid on demand. A double-digit contraction in exports of gems and jewellery and a 3.1 percent drop in machinery and engineering goods weighed down non-oil shipments, according to Madhavi Arora, an economist at Edelweiss Securities Pvt. The gap between exports and imports was at $13 billion in December, compared with $16.7 billion the previous month, as a drop in crude oil prices narrowed the import bill. A smaller trade deficit is likely to prove less of a drag on overall gross domestic product growth in the fourth quarter.
Consumer Activity
Data from the Society of Indian Automobile Manufacturers showed that firms clocked their lowest monthly sales so far in the financial year through March 2019, according to Sridhar V, a partner at Grant Thornton India LLP. Little bit of easing of funding and favourable fuel price levels can improve sentiment in the fourth quarter, he said. The Citi India Financial Conditions Index, a liquidity indicator, shows a sharp drop in December, hitting consumption. But signs emerged this month that the tight financial conditions are easing. The index includes gauges such as short-term money market rates, government bond yields and credit default spreads. Demand for bank loans held steady -- up 15.1 percent in December from a year earlier, and broadly unchanged from the equivalent rise seen in November.
Industrial Activity
Growth in infrastructure industries -- which contribute 40 percent to factory output -- slowed considerably in November to the lowest reading in 16 months. It was dragged down by a slump in production of crude oil and fertilizers. Overall, growth in the index for industrial production also slid, expanding at 0.5 percent in November from a year ago. That’s the lowest reading in 17 months. Data for both indicators are reported with a month’s lag.
Source: The Hindu Business Line
Now, businesses supplying goods worth more than ₹50,000 will have option to include details of e-way bills generated while filing the final monthly sales return under GSTR-1, a move aimed at curbing tax evasion by reporting different sets of supplies data. Matching of invoices of e-way bills with the sales shown in GSTR-1 will help taxmen in assessing whether the supplies have been accurately shown in sales return and GST paid on the same, tax experts said. "To avoid double data entry, GSTN has provided a facility to taxpayers, where month's e-way bill data is shown in format, which is required by a taxpayer to fill up the Form GSTR-1. The taxpayer can import data in his GSTR-1 form or import the same and use it with GSTR-1 offline tool to create his GSTR-1 Return Form," GST Network said. Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over₹50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018. Following this, it has come to investigative officers' notice that some transporters are doing multiple trips by generating only a single e-way bill or not reflecting e-way bill invoices while filing GSTR-1. It has also come to the notice that certain e-way bill is not being generated even as supplies are being made. While generating e-way bill, details of supplier, receiver and other invoice details like number, date, goods, quantity, HSN code etc are provided by the taxpayer on e-way Bill Portal. This data is now transferred to GST portal, GSTN, which has developed the technology backbone for Goods and Services Tax (GST), said. "With this facility, taxpayer will not be required to enter data in his Form GSTR-1 for all invoices for which he has generated e-way bill. This will avoid double data entry by taxpayers. This facility will help taxpayer to fill up their Form GSTR-1 in less time. This will also avoid any data entry mistakes made while filling details," GSTN Chief Executive Prakash Kumar said. GSTN said it has divided the taxpayers into three categories to download /import the data into GSTR-1. In last 18 months, around 90 per cent of taxpayers have reported up to 50 B2B and B2C large invoices in a month. "Since these invoices can be easily seen on the screen, facility to import the data directly into GSTR-1 has been provided for such taxpayers. These taxpayers can edit the details imported in GSTR-1, if required, and then file their Form GSTR 1 online after adding other details like B2C supplies," GSTN said. For those having more than 50 invoices but up to 500, have been provided facility to download the data in a prescribed 'csv' file format, which can then be imported into GSTR 1 offline tool. In case the number of invoices is more than 500, the invoice details can be imported from return Dashboard on GST portal as a 'zip' file. Tax payer can add more invoices (like those below₹50,000 in value) and upload in offline tool to prepare his/her return. Linking of e-way bill data with GSTR-1 would help taxmen keep a tab on whether the supplies shown in e-way bill matches the sales shown in the returns form and thereby check evasion. AMRG & Associates Partner Rajat Mohan said: "This facility would add to the immediate convenience of taxpayers; however, it would also prove to be a swift method of checking tax collections and any probable evasion. "Once the system is stabilized, GSTN would have automated and regular reports of e-way bills transaction, which were not captured while filing outward supplies in GSTR-1".
Source: Live Mint
More than two and half years into the government’s three-year deadline to create 10 million new jobs in the textile sector have passed but manufacturers are yet to ramp up hiring. An imaginatively designed Rs 6,000-crore mega-package for the textile industry was announced in June 2016, aimed to boost exports by $30 billion, and attract investments worth Rs 74,000 crore over the next three years until 2019. At the same time, Finance Minister Arun Jaitley had said the package would lead to a flat addition of 10 million jobs across the sector. So how many jobs have ...
Source: Business Standard
DIPP rechristened to include internal trade
The government has notified changing the name of the Department of Industrial Policy & Promotion (DIPP) to the Department for Promotion of Industry and Internal Trade, and has enhanced its role. The notification has also included four new categories of responsibilities the renamed body will be in charge of, including the promotion of internal trade (including retail trade), the welfare of traders and their employees, matters relating to facilitating Ease of Doing Business, and matters relating to start-ups. These are in addition to the previous responsibilities of the erstwhile DIPP relating to general industrial policy, administration of the Industries (Development and Regulation) Act, 1951, industrial management, productivity in industry, and matters related to e-commerce. The inclusion of the promotion of internal trade in the name and responsibilities of the body has been welcomed by the traders’ body Confederation of All India Traders. “Long standing demand of CAIT [has been] accepted by the Government and retail trade is now under DIPP Ministry of Commerce,” CAIT said in a statement. “CAIT was making demand of Ministry of Internal Trade since last 10 years. With creation of the Department for Internal Trade, the way is paved for creation of a Ministry. Traders across country are pleased with the move. It’s a step which will bring retail trade in mainstream of the economy.”
Source: The Hindu
Biswanath Chariali: Chief Minister Sarbananda Sonowal laid the foundation stone of Assam’s fourth and the largest ‘Eri Spun Silk Mill’ at Borgang in Biswanath district on Tuesday. This mill to be set up with financial outlay of Rs. 21 crore under North East Region Textile Promotion Scheme of Ministry of Textiles, Government of India sets the target to produce 33 MT high-quality eri yarn and 22 MT noil yarn per year opening direct employment opportunity for 107 unemployed and benefitting 4 to 5 thousand eri and muga rearers. Speaking on the occasion, Chief Minister Sonowal underlined the importance of rural economy for accelerating growth of a State and said this new project would give a major boost to development in Assam. He appreciated the role played by eri and muga rearers for giving a distinct identity to the state in the field of Handloom, Textile and Sericulture sectors and observed that this initiative would go a long way in rejuvenating the beleaguered Handloom and Textile sector. Sonowal in his speech also highlighted the State government’s various welfare measures for giving a dignified life to the citizens saying that the State government is fully committed to the cause of the people and would do nothing to hard the interest of the state. Stating that the high-level committee constituted for implementation of the sixth schedule of Assam Accord is a golden opportunity for the State that ensures constitutional safeguard to the people of Assam, he made a fervent call to AASU to take lead in its fruitful execution. Sonowal also came down heavily against Congress and the Left front for spreading misinformation about the Citizenship Amendment Bill and thereby creating confusion among people. He categorically said that the bill was drafted keeping in mind the national policy of the Union Government and it would no way affect the interest of the indigenous people of Assam. The misinformation spread by certain vested interest sections that 1.90 core Bangladeshi migrants would get a settlement in Assam after the passage of the bill by the Rajya Sabha is a blatant lie. He moreover urged the people to remain alert against such misinformation campaign and thwart the ulterior designs of evil forces. Further saying that the State government is working with a commitment to uphold the interests of the local people, he said that in a bid to establish the indigenous people’s right over land the State government has already allotted land patta to 11,500 local landless families and another 1 lakh families would be provided pattas within February this year. He also informed that process has also been initiated to provide land pattas to small tea growers in the state. Minister for Handloom & Textiles and Sericulture Ranjit Dutta speaking on the occasion expressed the view that the proposed Eri Spun Silk Mill would be a harbinger of growth in rural economy of the state. He informed that for implementation of this 21-crore project government of India has already released Rs.1.80 crore in first phase. The Handloom and Textiles minister highlighting the rich potential of Eri and Muga sector in Assam said that while the entire North East produces 60% of the country’s eri yarn and Assam alone 80% of muga yarn, the industry remained neglected during the time of previous Congress governments. Asserting the State government’s commitment to revive this sector, he informed that Rs. 465 crore Assam Silk Outreach Mission has been taken up and steps like plantation at Muga farm, construction of boundary wall of the farms and financial assistance to eri rearers have been taken up. He also informed that due to state government’s committed efforts Assam recorded 6661 MT Eri production during 2017-18 in Assam.
Source: The Sentinel
American sanctions on Venezuelan stated-owned oil firm PDVSA may not have a direct impact on India’s import mix, but it sure is a signal of changing geo-political dynamics and its implications on the oil market. Vandana Hari, Founder and CEO of Vanda Insights, said “on the global supply and demand level, the oil market appears unconcerned about the latest US sanctions against Venezuela, so there has been no “fear premium” in crude prices, which appear set to track global economic sentiment and within that the progress of the US-China trade talks this week.” According to reports, PDVSA is looking at options to sidestep the sanctions by proposing oil swaps to its crude buyers. “It was also said to be considering asking traders to be intermediaries in supplying crude to the US. It was not clear if any of these arrangements had been put in place,” the January 30 report of Vanda Insights said. International Brent crude oil futures rose over 2 per cent on Tuesday in reaction. Venezuela is among the world's largest heavy crude oil producers. But, for India, Venezuela is a relatively smaller supplier of crude in its import mix, with purchases limited to the private refiners — Reliance and Essar, Hari told BusinessLine. Elaborating, she said, “The logic so far is that as the US has halted nearly 500,000 barrels a day of Venezuelan crude imports, those barrels should be seeking alternative buyers, at discounted prices. However, whether non-US companies dealing with PDVSA and the Venezuelan central bank could come under US sanctions remains a question.” Mukesh Ambani-led Reliance Industries sources about 200,000-300,000 barrels a day of oil from Venezuela. According to an analyst tracking the company, “Reliance has a mixed portfolio of crude oil imports and while it purchases substantial quantity of crude on contract from Venezuela and Saudi Arabia, it majorly procures from the spot market. The company is closely watching the global developments before working on a strategy.” The whole situation is likely to benefit West Asia suppliers of heavy crude to India.
Disturbing development
According to Narendra Taneja, an energy expert, “Venezuela has been an important supplier of crude to Indian refiners for years, and often the Latin American country would offer prices that no other country could match.” While Taneja believes that the political standoff in Caracas is a disturbing development for India, he says: “The Venezuelan crude exports have been on the declining curve for some time now. It is a significant disturbance but not a shock.” “Reduced crude supplies from Venezuela and Iran will be a substantial cause of stress as far as crude prices in 2019 are concerned. The US, Russia and Saudi Arabia will need to pump more oil to maintain market equilibriums,” he added.
Reduce import
Most in the industry feel that it is time for India to work on its crude import policy. Dharmendra Pradhan, Minister for Petroleum & Natural Gas, and his team have been taking various steps for reduction of import dependency that include increasing domestic production, promoting energy efficiency and conservation measures, giving thrust on demand substitution, and capitalising untapped potential in bio-fuels. The government is also looking at promoting alternative fuels/renewables and implementing measures for refinery process improvements. The Ministry has also allowed the public sector oil marketing companies to formulate policies for import of crude oil in their best commercial interest and in accordance with the extant guidelines of the Central Vigilance Commission, etc.
Source: Business Line
Indian fashion scene has come a long way from being avant-garde to focusing on country's vast textile heritage, which served as the inspiration for four young designers at Lakme Fashion Week Summer/Resort 2019. The designers -- Madhumita Kath, Amrapali Singh, Sunaina Khera and Ujjwala Bhadu -- who were a part of Gen Next show on Wednesday and presented their collection at the fashion gala for the first time, believe India's cultural diversity unites them through fashion. "Every part of our country is rich in textile and crafts. We have so much to soak in and create. Another plus is that there is no dearth of skill... We can and we are creating more refined products. We have been exposed to such diverse cultural mix that fashion is one space where every influence comes together," Madhumita told PTI. For her label, Ek Katha', Madhumita created a collection called Bliss" where she used a combination of textures that were created with herringbone and diamond weaves. Ujjwala, whose collection was a fusion of cultures and crafts with Indian textiles acting as the base, draws her inspiration from the colourful vibe of the country. "Our craftsmanship and use of textiles and colours is magical. We have rich source of inspiration in our hands and can never fall short of ideas courtesy our heritage," she said. Amrapali's label Birdwalk's debut LFW range "Queen of Hearts was all about simple, comfort and playful appeal inspired by the pack of cards. "Our immeasurably rich and diverse cultural heritage, particularly in the area of textile manufacturing and design is like a superpower. The extraordinary craftsmanship passed down to generations is easily accessible. "It'll be a shame if we don't uphold this amazing heritage and these skills continue to wane with each passing generation," she said. Sunaina said people love fashion in India and want to experiment with their style. "Our history, culture, heritage, craft and most importantly our people, who love fashion and are giving us a chance to dress them up, are our biggest strength," she said. The Gen Next show, presented by INIFD was the first show of the five-day-long fashion extravaganza, which concludes on February 3.
Source: Business Standard
Group of 11 well-known banks to launch blockchain-based funding for SMEs . ICICI, Axis, HDFC along with 8 other banks are all set to launch the country’s first block-chain linked funding for small as well as medium enterprises (SMEs). The step is expected to bring about a major difference to the lending practices. The list of banks includes ICICI Bank, Axis Bank, Yes Bank, HDFC Bank, RBL Bank, Kotak Mahindra Bank, Standard Chartered Bank, and South Indian Bank. Apart from these, the State Bank of India, IndusInd Bank and Bank of Baroda will also be involved in this initiative as outside members, as per the report by The Economic Times. “The idea of having such an organization is to remove any communication hurdle among the different banks. A blockchain network can only thrive if the entire ecosystem is working in synergy through a single network,” said Abhijeet Singh, Head of Business Technology at ICICI Bank. As per the sources, all the discussions between the participating banks is being mediated by a consortium called the Blockchain Infrastructure Company (BIC). The bank representatives have had a few meetings for establishing a live network to ensure transparency and security in the supply-chain finance. According to Mr. Singh, the major reason to have a ledger-network is for ensuring transparency in the credit disbursement process, ‘especially in the underbanked section’. The network will allow the banks to access public credit data, helping them in avoiding high-risk situations. The data entry made by any member will also be visible to every stakeholder in the supply-chain. In the words of Vivek Belgavi of PwC, “It is impossible to change the entry once it is made, therefore providing immunity to frauds.”
Source: Horizon Cottage
The rupee Wednesday ended almost flat at 71.12 against the US dollar as forex traders preferred to sit on the fence while awaiting cues from key upcoming events like US Fed policy and India's Union Budget. At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.34 then fell further to 71.36 against the US dollar. The local unit, however, recouped most of its initial losses and settled for the day at Rs 71.12, lower by just 1 paisa over its previous close. During the day, the Indian currency had depreciated by 25 paise to 71.36 against the US dollar but gathered strength towards the fag-end of the session amid increased selling of the greenback by exporters ahead of the outcome of the Federal Open Market Committee (FOMC) meeting and Sino-US trade talks outcome. On Tuesday, the rupee had settled 1 paisa lower at 71.11 against the US dollar. "The Indian rupee traded marginally lower today. It remains the second worst performing emerging market currency in last one month," Sanctum Wealth Management Chief Investment Officer Sunil Sharma said. According to V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities, "Emerging market currencies traded right to US dollar as Fed likely to hold the rates as unchanged and outcome from US China trade talks likely to remain positive." Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading largely unchanged at 95.80. Foreign funds bought shares worth Rs 130.25 crore from the capital markets on a net basis, and domestic institutional investors also purchased shares worth Rs 502.26 crore Wednesday, provisional data showed. Meanwhile, equity benchmarks Sensex and Nifty Wednesday ended flat as cautious investors refrained from taking any bets ahead of January derivatives expiry, US Fed policy outcome and upcoming Union Budget. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.2442 and for rupee/euro at 81.5380. The reference rate for rupee/British pound was fixed at 93.2867 and for rupee/100 Japanese yen at 65.20.
Source: Money Control
Indian petroleum minister Dharmendra Pradhan recently urged Odisha state chief minister Naveen Patnaik in a letter to allot 75 acres land for a textile park proposed by the Indian Oil Corporation Limited (IOCL) in Bhadrak. The ₹1,971-crore project can make Bhadrak the Surat of eastern India and generate more investment and job opportunities, he said. A memorandum of understanding was signed between IOCL and the state government regarding the project on November 16, 2017. The IOCL has written several times to the state government requesting for land for the project but has received no response, which is delaying the project, a news agency report quoted the minister as saying. (DS)
Source: Fibre2fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1329.57 |
USD/Ton |
0% |
1/30/2019 |
|
VSF |
1971.36 |
USD/Ton |
0% |
1/30/2019 |
|
ASF |
2390.56 |
USD/Ton |
0% |
1/30/2019 |
|
Polyester POY |
1266.51 |
USD/Ton |
0% |
1/30/2019 |
|
Nylon FDY |
2745.22 |
USD/Ton |
0% |
1/30/2019 |
|
40D Spandex |
4748.48 |
USD/Ton |
0% |
1/30/2019 |
|
Nylon POY |
2537.47 |
USD/Ton |
0% |
1/30/2019 |
|
Acrylic Top 3D |
1469.06 |
USD/Ton |
0% |
1/30/2019 |
|
Polyester FDY |
2997.48 |
USD/Ton |
0% |
1/30/2019 |
|
Nylon DTY |
5594.30 |
USD/Ton |
0% |
1/30/2019 |
|
Viscose Long Filament |
1543.26 |
USD/Ton |
0% |
1/30/2019 |
|
Polyester DTY |
2567.15 |
USD/Ton |
0% |
1/30/2019 |
|
30S Spun Rayon Yarn |
2730.38 |
USD/Ton |
0% |
1/30/2019 |
|
32S Polyester Yarn |
1995.85 |
USD/Ton |
0% |
1/30/2019 |
|
45S T/C Yarn |
2878.77 |
USD/Ton |
0% |
1/30/2019 |
|
40S Rayon Yarn |
2522.63 |
USD/Ton |
0% |
1/30/2019 |
|
T/R Yarn 65/35 32S |
2151.66 |
USD/Ton |
0% |
1/30/2019 |
|
45S Polyester Yarn |
2537.47 |
USD/Ton |
0% |
1/30/2019 |
|
T/C Yarn 65/35 32S |
3027.16 |
USD/Ton |
0% |
1/30/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
1/30/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
1/30/2019 |
|
40S Combed Poplin |
1.11 |
USD/Meter |
0% |
1/30/2019 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
1/30/2019 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
1/30/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14839 USD dtd. 30/1/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Egyptian Minister of Trade and Industry, Amr Nassar says, in a recent announcement, China has started building the largest textile and garment city in Egypt. The textile and garment city- being built by Mankai, a Chinese holding company, will cover more than three million square meters in the city of Sadat, north of Cairo and it will consist of 592 factories. The minister of trade and industry, Amr Nassar, said the project will utilize the latest technology in the textile industry. Adding that factories in the first stage will begin their trial operation in May this year. Egypt already has key textile bases in el Mahalla, el-Kubra and other cities. The Chinese government has signed initial sales contracts for 48 first-stage factories for Chinese companies. Meanwhile, the Chinese company Mankai has agreed to inject new investments into leather goods in the city of Badr.
Source: Africa.net
Headline equities of the Japan share market closed down on Wednesday, 30 January 2019, as risk sentiments muted on caution ahead of the conclusion of a Federal Reserve policy meeting and U. S.-China talks with high level negotiations set to begin later stateside. Total 29 sub-indexes of TOPIX fell into red terrain, with shares in Securities & Commodities Futures, Electric Power & Gas, Other Financial Business, Textiles & Apparels, and Warehousing & Harbor Transportation Services issues being notable losers. At closing bell, the 225-issue Nikkei index fell 108.10 points, or 0.52%, at 20,556.54. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 6.33 points, or 0.41%, to 1,550.76. Tokyo market came under pressure of position-squaring selling by investors who were waiting to see the outcomes of the U. S. Federal Reserve's policy-setting meeting ending later in the day and the ministerial-level trade talks between the United States and China in Washington through Thursday. All eyes are on a Federal Open Market Committee meeting ending Wednesday. Although the Fed is expected to leave its short-term interest rate unchanged, the nuances of a press conference by Chairman Jerome Powell will be closely watched. Ahead of the start of the two-day FOMC meeting, speculation grew that Fed policymakers would discuss slowing or ending the U. S. central bank's move to shrink its balance sheet. Top US and Chinese trade officials return to the bargaining table on Wednesday, with extra tension in the atmosphere amid Washington's sweeping prosecution of Chinese telecoms giant Huawei. resident Donald Trump will reportedly meet Chinese Vice Premier Liu He in an attempt to move negotiations forward. But the Justice Department's charges against Chinese tech giant Huawei, its subsidiaries and a top company executive may be a hurdle. China has urged U. S. authorities to end what it called an "unreasonable crackdown" against Huawei, which has been accused of stealing technology and violating sanctions on Iran. The world's two largest economies are battling for nothing less than future dominance in critical high-tech industries, according to US Trade Representative Robert Lighthizer, the lead US negotiator. A little over three years ago, Beijing launched a strategic plan dubbed "Made in China 2025" that aimed to make the nation the global leader in aerospace, robotics, artificial intelligence, new-generation autos and other areas -- sectors US officials say now represent the "crown jewels" of American technology and innovation. US President Donald Trump has repeatedly said he favors a healthy Chinese economy but not at the expense of American business and know-how. In specific, US officials are attacking Chinese trade practices they say are unfair, spotlighting the forced transfer of American technology through requirements that foreign companies form joint ventures with local firms, as well as the alleged theft of American intellectual property through hacking. To pressure Beijing, the White House has slapped tariffs on $250 billion in Chinese imports. And Trump is poised to more than double US duty rates on $200 billion in goods from China to 25% on March 2 should the talks fail. Beijing has responded by slapping duties on virtually every product it buys from the United States, or about $110 billion in exports. Given the complexity of issues, a finished agreement is unlikely to emerge from the two days of talks in Washington this week. But US Treasury Secretary Steven Mnuchin said Tuesday he expected "significant progress," and noted the governments have another month left in the 90-day truce declared in December. Daiwa Securities Group Inc. tumbled 6.22 percent after the company announced disappointing consolidated earnings for April-December on Tuesday. Akebono Brake Industry Co. plunged 18.22 percent following its announcement Wednesday morning that the major auto parts maker's request for the start of alternative dispute resolution, or ADR, procedures for out-of-court business reconstruction was accepted. Other major losers included clothing retailer Fast Retailing Co. and automaker Suzuki Motor Corp. By contrast, electronic parts makers related to Apple Inc. gained ground as the U. S. technology giant's sales forecast for January-March, released Tuesday, fell within market expectations. Taiyo Yuden Co. jumped 4.23 percent and Murata Manufacturing Co. rose 2.57 percent. Shin-Etsu Chemical Co. gained 2.07 percent thanks to its brisk earnings in April-December.
Japan retail sales were up a seasonally adjusted 0.9 percent on month in December, the Ministry of Economy, Trade and Industry said on Wednesday, following the downwardly revised 1.1 percent decline in November (originally -1.0 percent). On a yearly basis, retail sales advanced 1.3 percent - following the 1.4 percent gain in the previous month.
Source: Business Standard
The proposed law was expected to end forced technology transfer for foreign investors in China, which is one of the demands of Trump. China has unveiled a draft foreign investment law, making provision for wholly foreign-owned enterprises with legal cover for overseas investments and technology - a key demand of US President Donald Trump to end the trade war between the world’s two largest economies. The draft foreign investment law will be submitted to the upcoming plenary session of the National People’s Congress (NPC), the rubber stamp parliament, scheduled to be opened on March 5. The decision was made by the NPC Standing Committee on Wednesday at a closing meeting of its two-day session, state-run Xinhua news agency reported. Once adopted, the unified law will replace three existing laws on Chinese-foreign equity joint ventures, non-equity joint ventures (or contractual joint ventures) and wholly foreign-owned enterprises. The proposed law was expected to end forced technology transfer for foreign investors in China, which is one of the demands of Trump. The foreign investment law will be a basic law in that field, and its drafting is an important move in implementing the strategy of further opening-up made by the ruling Communist Party of China, the report said. The drafting of the foreign investment law is also necessary in help with China’s efforts to attract more foreign investment, protect foreign investors’ legitimate rights and interests, foster an environment favorable to doing business, as well as provide legal guarantee to opening-up at a higher level, according to the document. “China will not close its door to the world; but will only become more and more open,” said Li Zhanshu, chairman of the NPC Standing Committee. Plans to bring about a foreign investment law was announced as Chinese Vice Premier Liu He is set to hold two-day talks with his American counterpart Robert Lighthizer on January 30-31 in Washington to work out a crucial deal to end the trade war. Liu is heading a 30-member delegation. Trump has been pressing China to bring down USD 375 billion trade deficit in the bilateral trade, which he attributes to unfair trade practices by Beijing. Officials said talks are expected to deliver specific commitments on Trump’s demand that China to expand market access for US in China, improve protection of intellectual property rights (IPR) and reduce the trade surplus with the US, but it would take time to reform state-owned firms another major source of friction. Trump has set March 1 as the deadline for a deal. He has threatened to slap tariffs on all Chinese exports to US if the two sides fail to reach a deal. Early this month, Elon Musk, the CEO of US electric carmaker Tesla, laid foundation to set up USD seven billion plant in Shanghai, becoming the first to benefit from a new policy allowing foreign carmakers to set up wholly-owned subsidiaries in China. The new plant, Tesla’s first outside the United States, is located in Lingang Area, a high-end manufacturing park in the southeast harbour of Shanghai. It is designed with an annual capacity of 500,000 electric cars. China has softened its stand by offering a mix of concessions by resuming purchases of US soybeans, suspended punitive tariffs on imports of US cars and toned down its ‘Made in China 2025’ plan, which aimed at breaking the country’s reliance on foreign technology and pull its hi-tech industries up to Western levels.
Source: The Hindu Business Line
Hennes & Mauritz AB has hired Christopher Wylie, the whisteblower who exposed the Cambridge Analytica scandal, to help as the Swedish fashion retailer turns to data analytics and artificial intelligence to better understand what its customers want. Wylie has signed a consultancy contract with H&M, spokeswoman Ulrika Isaksson said in an emailed response to questions on Wednesday. Wylie's main focus will be to help H&M get better insights on customers, products and markets, as well as support work on “sustainable and ethical” artificial intelligence, she said. H&M is betting that big data and AI can help provide the insights it needs after inventory rose to a record level last year. The company has in the past few years struggled to adapt to consumers' online shift and is trying to catch up with Zara owner Inditex SA. In September, H&M Chief Executive Officer Karl-Johan Persson said the effects of the company's revamp could start to be seen in sales, as the company developed better ways to forecast trends and prices.
Source: Economic Times
