Traders in India's derivative market anticipate a hike in the foreign investment limit for overnight index swaps (OIS) during the central bank's monetary policy review on Thursday. As of August 6, foreign investors had used 96% of the existing ₹3.5 billion ($41.70 million) limit. "Various representations have been made to the RBI because utilisation has remained high for a long time," said a Treasury head of a foreign bank. During talks with the RBI, bank treasury executives have urged hiking the ceiling to ₹4.5 billion or deleting it entirely, despite no clear industry approach. The R
On October 14, the UK government will host an international investment summit to attract global investors and boost economic growth. Up to 300 business executives will gather at the event, which Prime Minister Keir Starmer is hosting to promote the UK as a top investment location. Business and Trade Secretary Jonathan Reynolds will pitch the United Kingdom as a reliable commercial partner devoted to long-term economic progress. With a recent landslide victory, the Labour Party under Starmer is aiming for an annual economic growth rate of about 2.5%, which is comparable to pre-financial cri
The UK government, under the leadership of Prime Minister Keir Starmer, has new housing goals to build 1.5 million houses by the next election. Deputy Prime Minister Angela Rayner announced plans to expand the annual aim from 300,000 to 370,000 homes. Despite criticism, Rayner insisted that these measures are necessary for the country's growth. Rayner indicated that less than 200,000 homes are expected to be completed this year, emphasising the previous government's inadequacies. The government intends to consult on an overhaul of the National Planning Policy Framework, with amendments exp
Foreign banks have purchased more than $16 billion in Indian bonds this year, breaking the previous record set in 2023 in only seven months, according to official statistics. The Indian banking system's liquidity surplus reached a nearly one-year high this month, driving up demand for bonds. Foreign investors' continuous buying has reduced the burden on domestic banks to absorb the bond supply. Foreign banks and portfolio investors prioritise short-term bonds, resulting in lower rates and a steeper yield curve. According to CCIL data, foreign banks have purchased bonds worth 1.37 trilli
Parliament informed on Tuesday that the government earned ₹98,681 crore from the long-term capital gains (LTCG) tax on listed securities in 2022–23, a 15% increase from the previous fiscal year. Pankaj Chaudhary, Minister of State for Finance, revealed in the Rajya Sabha that the LTCG tax on shares and units of equity-oriented mutual funds, imposed in April 2018 at a 10% rate with an exemption for profits up to ₹1 lakh annually, has consistently grown. The government collected ₹86,075 crore in 2021-22, compared to ₹38,589 crore in 2020-21, ₹26,008 crore in 2019-20, and ₹29
The Thailand Board of Investment (BOI) announced a 35% rise in investment proposals for the first half of 2024, amounting to 458.4 billion baht ($12.8 billion). Electronics and electrical appliances, automobiles, chemicals, and data centres are among the key growing areas. Foreign direct investment (FDI) increased by 16%, with a significant increase in regional headquarters. Applications increased by 64% to 1,412 projects from 863 in the same period last year, indicating trust in Thailand as a solid production base. Mr. Narit Therdsteerasukdi, Secretary General of the BOI, highlighted 1
Saudi Arabia has imported oil from Kuwait for the first time in more than two years, in a strategic effort to satisfy rising summer energy demands. This change occurs as discounted supplies from Russia have decreased. According to maritime analytics firms Kpler and Vortexa, Saudi Arabia's imports of Kuwaiti high sulphur fuel oil (HSFO) surpassed 180,000 metric tonnes (approximately 37,000 barrels per day) this month. Saudi Arabia's reliance on Kuwaiti fuel represents its first purchase since 2022. The decision keeps more Kuwaiti supply in the Middle East, supporting benchmark prices in Sin
India's business activity increased at the fastest pace in three months in July, owing to strong demand, particularly in the services sector. A poll by HSBC's Flash India composite purchasing managers' index, produced by S&P Global, found that the index increased to 61.4 in July from 60.9 in June, representing three years of continuous improvement. The indicator measures growth of more than 50, suggesting a robust private sector. The spike was led by the services industry, which saw its PMI rise to 61.1, a four-month high, while manufacturing experienced significant growth, with a PMI
Japan will resume funding for Sri Lanka's stalled infrastructure projects, including the development of the main international airport. This decision comes after Sri Lanka successfully restructured its foreign debt following a financial crisis. Sri Lanka defaulted on $46 billion in international borrowings two years ago, during the economic crisis, prompting bilateral lenders like Japan to cease project funding. Hideaki Mizukoshi, Japan's ambassador to Sri Lanka, declared that Japan is the first country to restore finance for stalled projects. According to a Sri Lankan finance ministry
According to a government draft, Japanese ministries plan to submit a budget that exceeds 110 trillion yen ($698 billion) for the fourth year in a row. The main cause of this increase is the projected increase in interest rates, which will drive up the cost of debt servicing. Japan has doubled the amount of its economy in public debt, making it the most debt-ridden country among developed nations. The Bank of Japan (BOJ) may raise interest rates from their current near-zero levels, which would result in higher debt management expenses. The record 114.38 trillion yen sought for the curre