Business news live: Asian markets open red
The International Monetary Fund (IMF) has decided to let Kristalina Georgieva remain as head of the fund. After reviewing the accusations that she improperly influenced a World Bank report in favour of China, the lender’s board reaffirmed its full confidence in her. U.S. Treasury Secretary Janet Yellen told on Monday that WilmerHale’s report into World Bank data-rigging allegations against the Georgieva “raised legitimate issues and concerns”, but a lack of direct evidence meant a leadership change was unwarranted.
Our blog will track developments in the energy markets as oil continues its climb about $80 a barrel. Futures on Brent crude, the global oil benchmark, rose 1.5% to $83.65 a barrel, their highest settle value in three years. In India, some states experienced electricity blackouts because of coal shortages, while in China the government ordered miners to ramp up coal production as power prices surged.
According to a government report on Monday, cited by Reuters, volatility in the prices of crude oil, edible oils and metal products pose concerns for India’s economy, though inflation is expected to ease in coming months.
Later today, the Union government is expected to release September consumer price inflation, and August Industrial production data. – John Xavier
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IMF backs Kristalina Georgieva
The International Monetary Fund (IMF) expressed full confidence in its Managing Director Kristalina Georgieva in response to allegations that she pressured World Bank staff to alter data in favour of China.
The fund’s 24-member executive board noted that the law firm WilmerHale did not conclusively demonstrate that Georgieva played an improper role as for CEO of the World Bank.
The law firm in its report alleged that Georgieva and other senior officials applied “undue pressure” on bank’s staff to boost China’s ranking in the Doing Business 2018 report.
Oil falls amid global energy crisis
Oil prices fall for the first time in four days after weeks of gains even as global energy crisis pushes up demand. Brent crude fell 0.3%, to $83.39 a barrel while U.S. oil fell 0.4%, to $80.19 a barrel.
Power prices have risen to records amid energy crisis in India, China, the United States, and parts of Europe in the last few weeks. Major industrial regions in China are witnessing power shortages, leading to an increase of over 10% in prices of thermal coal futures.
Asian markets open|Sensex update
The Indian benchmark indices opened in red today amid weak global cues. The Sensex opened 0.19% lower at 60018.70, and the Nifty opened 11.70 points lower at 17934.30.
Asian shares fell in early trade as global energy crunch fuelled inflation fears and clouded investor sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9%, Australia was down 0.29% and Japan’s Nikkei slid 1.03%. China’s blue chip CSI 300 Index fell 0.75%, and Hong Kong’s Hang Seng Index opened 1.35% lower.
China Evergrande group missed paying all of its offshore bondholders by Monday deadline which could weigh on investor sentiment. The company’s troubles have sent shockwaves across global markets.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)