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Reopening Economy Lends Fresh Impetus to Indian Shares – Yahoo Canada Finance

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Reopening Economy Lends Fresh Impetus to Indian Shares

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(Bloomberg) — Stock investors are taking heart from India’s efforts to re-open its economy, even as the nation continues on a trajectory to overtake the U.S. as the country with the most coronavirus cases.

The S&P BSE Sensex’s has rallied almost 12% since hitting a more than two-month low on Sept. 24, the best performance among the world’s national equity benchmarks, according to data compiled by Bloomberg. It is less than 2% away from wiping out its losses for the year.

A Jefferies Financial Group Inc. model tracking economic recovery last week showed activity in India is already at 93% of pre-Covid levels. The nation is set to further relax restrictions on gatherings of people and allow schools, multiplexes and entertainment parks to reopen in some areas from Oct. 15.

“A higher-than-expected level of economic reopening, coupled with various steps from policy makers, creates an upside risk for GDP and earnings estimates, said Sameer Kalra, a strategist at Mumbai-based Target Investing. “There is a good chance that third-quarter GDP shows a recovery and then the Sensex hits a record by December,” he said.

The Sensex capped its best week since early June on Friday as the central bank signaled more policy easing ahead and announced a slew of liquidity steps to support the economy. In the past few days, data showing a mild improvement in some economic indicators and optimism over earnings results from a few major firms have also helped boost investor sentiment.

Maruti Suzuki India Ltd., the biggest carmaker, posted its highest monthly sales in two years in September as an end to a nationwide lockdown prompted dealerships to stock up ahead of a festive season.

“India has started to outperform EM more persistently and consistently after reaching a relative floor in March,” Morgan Stanley analysts Ridham Desai and Sheela Rathi wrote in an Oct. 9 note to clients. For this outperformance to be sustained, India needs to continue to deliver policy that lifts its potential growth in the eyes of market participants, they wrote.

Morgan Stanley is overweight consumer discretionary, industrials and energy stocks.

India is set to announce third-quarter growth data at the end of November. That number will be closely watched after Asia’s third-largest economy contracted by a record in the second quarter.

“The Indian government has pursued a gradual re-opening and the Covid peak seems to be behind now,” Jefferies strategists Mahesh Nandurkar and Abhinav Sinha wrote in a note last week as they upgraded the nation’s financial stocks to overweight from neutral.

(Update Sensex performance in second paragraph. An earlier version of the story corrected the third paragraph to show that Jefferies’ report was from last week.)

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Varcoe: Facing historic 10 per cent hit to economy, it's time for Calgary to play more offence – Calgary Herald

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Article content continued

She also pointed to a CED study last year that found companies across the province will spend $18.4 billion on digital transformation initiatives across various industrial sectors by 2022.

CED expects the number of local technology companies to at least double by 2030, while the sector creates almost 50,000 new jobs in Calgary over the next decade.

“The offence strategy is about diversification, but it’s also about digital transformation,” Moran said in an interview.

Economic growth in 2021 will also come from areas such as agriculture, health care and clean energy technology, said ATB chief economist Todd Hirsch.

“We need to embrace the fact that the world has changed,” Hirsch said after the event.

“We need to stop trying to get back on track. What we need to do is forge a brand new track.”

ATB vice president and chief economist Todd Hirsch at the Calgary Economic Development’s Outlook for 2021 virtual event on Tuesday, Oct. 20, 2020. Photo by Video frame grab

The track has to make sure unemployed Calgarians aren’t left behind. Thousands of people need a steady paycheque. Access to education, retraining and economic supports will be critical.

Mayor Naheed Nenshi said even if the city’s GDP increases next year, he’s concerned it will bring a jobless recovery along with it.

“The work we do in Calgary needs to be singularly focused on good, decent jobs,” he said in an interview.

Finally, here’s a positive economic note, even with fierce headwinds rocking the city.

“We do see 2021 as the start of a consistent recovery period,” said Goucher.

“We see conditions essentially improving on all fronts and it should lead to a stable recovery in Calgary from 2021 and on.”

After a gruelling 2020, the recovery can’t get here soon enough.

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

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China's fiscal revenues rise 4.7% in third-quarter as economy gains steam – TheChronicleHerald.ca

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BEIJING (Reuters) – China’s fiscal revenues grew 4.7% in the third quarter from a year earlier, reversing a 7.4% drop in the previous quarter, the finance ministry said on Wednesday, as the country’s economic recovery picked up pace.

China’s economy in the July to September quarter expanded by 4.9% from a year earlier, weaker than analyst expectations but faster than the second quarter’s 3.2% growth.

For the first nine months of the year, fiscal revenues fell 6.4% from a year earlier to 14.10 trillion yuan ($2.12 trillion), while fiscal expenditures dropped 1.9% to 17.519 trillion yuan, the ministry said.

Liu Jinyun, a finance ministry official, told a briefing that tax receipts could get a boost from China’s continued economic rebound in the fourth quarter.

“The decline in accumulative fiscal revenues will gradually moderate,” he said.

The government is on track to cut taxes and fees by more than 2.5 trillion yuan in 2020, including 1.88 trillion yuan in the first eight months, the ministry said.

China has allocated 200 billion yuan in local government special bonds to help resolve risks at small banks, Wang Kebing, a second finance ministry official, told the briefing.

In July, China’s cabinet said it would allow local governments to use part of the money they raise from special bonds this year to recapitalise some small banks.

China’s local governments will be allowed to issue 3.75 trillion yuan in special bonds this year, up from 2.15 trillion yuan in 2019.

(Reporting by Kevin Yao, Writing by Gabriel Crossley; Editing by Ana Nicolaci da Costa and Christian Schmollinger)

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China's fiscal revenues rise 4.7% in third-quarter as economy gains steam – The Guardian

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BEIJING (Reuters) – China’s fiscal revenues grew 4.7% in the third quarter from a year earlier, reversing a 7.4% drop in the previous quarter, the finance ministry said on Wednesday, as the country’s economic recovery picked up pace.

China’s economy in the July to September quarter expanded by 4.9% from a year earlier, weaker than analyst expectations but faster than the second quarter’s 3.2% growth.

For the first nine months of the year, fiscal revenues fell 6.4% from a year earlier to 14.10 trillion yuan ($2.12 trillion), while fiscal expenditures dropped 1.9% to 17.519 trillion yuan, the ministry said.

Liu Jinyun, a finance ministry official, told a briefing that tax receipts could get a boost from China’s continued economic rebound in the fourth quarter.

“The decline in accumulative fiscal revenues will gradually moderate,” he said.

The government is on track to cut taxes and fees by more than 2.5 trillion yuan in 2020, including 1.88 trillion yuan in the first eight months, the ministry said.

China has allocated 200 billion yuan in local government special bonds to help resolve risks at small banks, Wang Kebing, a second finance ministry official, told the briefing.

In July, China’s cabinet said it would allow local governments to use part of the money they raise from special bonds this year to recapitalise some small banks.

China’s local governments will be allowed to issue 3.75 trillion yuan in special bonds this year, up from 2.15 trillion yuan in 2019.

(Reporting by Kevin Yao, Writing by Gabriel Crossley; Editing by Ana Nicolaci da Costa and Christian Schmollinger)

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