The consecutive rise in weekly claims shows that the resurgent coronavirus threatens to stall an economic rebound that was already moderating from a breakneck pace in the third quarter. Some economists predict a contraction in gross domestic product the first three months of 2021.(Reuters/File photo)
The consecutive rise in weekly claims shows that the resurgent coronavirus threatens to stall an economic rebound that was already moderating from a breakneck pace in the third quarter. Some economists predict a contraction in gross domestic product the first three months of 2021.(Reuters/File photo)

US recovery more tenuous as jobless claims rise, incomes fall

Wednesday’s data indicate the economic rebound is becoming more tenuous amid soaring coronavirus cases, fresh lockdowns and an extended deadlock in Congress over a new stimulus package.
By Bloomberg | Posted by Mallika Soni
UPDATED ON NOV 25, 2020 10:36 PM IST

Applications for US state unemployment benefits unexpectedly posted the first back-to-back weekly increase since July, while Americans’ incomes and savings fell last month.

Wednesday’s data indicate the economic rebound is becoming more tenuous amid soaring coronavirus cases, fresh lockdowns and an extended deadlock in Congress over a new stimulus package.

Initial jobless claims in regular state programs increased by 30,000 to 778,000 in the week ended November 21, according to Labor Department data. Without adjustments for seasonal fluctuations, the figure rose by about 78,000 during the week.

A separate Commerce Department report showed US household spending rose in October but incomes dropped by more than forecast, owing in large part to a decline in government supplemental jobless benefits. The savings rate fell for a sixth month.

Continuing claims -- the total pool of Americans on ongoing state unemployment benefits -- fell by 299,000 to 6.07 million in the week ended November 14. But the number of Americans on an extended assistance program continued to increase, a sign that more people have exhausted regular state benefits.

The consecutive rise in weekly claims shows that the resurgent coronavirus threatens to stall an economic rebound that was already moderating from a breakneck pace in the third quarter. Some economists predict a contraction in gross domestic product the first three months of 2021.

The job market faces additional hurdles as states and cities restrict business activity and hospitalizations spike.

“The continued weakness of the labor market is something that is going to drive the whole economy down,” Catherine Mann, global chief economist at Citigroup Inc., said on Bloomberg Television. At the same time, solid sectors like manufacturing are “going to keep us from being in official recession, but it’s going to be very grim,” she said.

Continuing claims for Pandemic Unemployment Assistance, which provides benefits to self-employed and gig workers, increased by about 466,000 to 9.15 million. The Pandemic Emergency Unemployment Compensation, which provides payments to the long-term unemployed, was used by 4.51 million Americans. Those two programs will expire at year-end, leaving many without government aid.

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India vaccinated 148,266 people on Monday, taking the total to 381,305. (Bloomberg)
India vaccinated 148,266 people on Monday, taking the total to 381,305. (Bloomberg)

Indian companies consider buying vaccines for employees

Reuters
PUBLISHED ON JAN 18, 2021 11:31 PM IST
Steel producer Jindal Steel and Power Ltd, autos-to technology conglomerate Mahindra Group and consumer goods giant ITC Ltd have begun initial checks on vaccines being available to buy after the government covers priority segments.
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FILE PHOTO: International Monetary Fund (IMF) Managing Director Kristalina Georgieva makes remarks during a closing news conference for the International Monetary Finance Committee (IMFC), during the IMF and World Bank's 2019 Annual Meetings of finance ministers and bank governors, in Washington, U.S., October 19, 2019. REUTERS/Mike Theiler/File Photo(REUTERS)
FILE PHOTO: International Monetary Fund (IMF) Managing Director Kristalina Georgieva makes remarks during a closing news conference for the International Monetary Finance Committee (IMFC), during the IMF and World Bank's 2019 Annual Meetings of finance ministers and bank governors, in Washington, U.S., October 19, 2019. REUTERS/Mike Theiler/File Photo(REUTERS)

IMF chief sees 'high degree of uncertainty' in global outlook

Reuters
PUBLISHED ON JAN 18, 2021 08:51 PM IST
IMF Managing Director Kristalina Georgieva said a new allocation of the IMF's own currency, Special Drawing Rights, would help give countries more fiscal space to tackle the health crisis and shift to a digital and green economy.
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Risks to the recovery could be in the form of additional regulatory measures, protracted restrictions on international travel and jump in the pandemic in new cases, said the report. (Representative Image)
Risks to the recovery could be in the form of additional regulatory measures, protracted restrictions on international travel and jump in the pandemic in new cases, said the report. (Representative Image)

Healthcare sector's revenue expected to grow 20% in 2021-22: Report

PTI
PUBLISHED ON JAN 18, 2021 07:58 PM IST
Domestic rating agency Icra has a stable outlook for the sector in the long-term outlook, given the swift rebound in occupancy as well as structural factors.
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After a decent show so far in 2020 despite the pandemic, the IPO market is awaiting a bumper crop with more than 30 IPOs worth over <span class='webrupee'>₹</span>30,000 crore lined up for the new year.(AP/ Representational)
After a decent show so far in 2020 despite the pandemic, the IPO market is awaiting a bumper crop with more than 30 IPOs worth over 30,000 crore lined up for the new year.(AP/ Representational)

IRFC IPO subscribed 65% on first day of offer

PTI
PUBLISHED ON JAN 18, 2021 07:58 PM IST
Price range for the offer, which is scheduled to close on Wednesday, has been fixed at 25-26 per share.
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The total amount released so far in 12 instalments is <span class='webrupee'>₹</span>72,000 crore at an average interest rate of 4.70 per cent.(PTI)
The total amount released so far in 12 instalments is 72,000 crore at an average interest rate of 4.70 per cent.(PTI)

GST compensation shortfall: FinMin releases installment of 6,000 cr to states

PTI, New Delhi
PUBLISHED ON JAN 18, 2021 07:00 PM IST
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of 1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax (GST).
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A visitor wearing a face mask to protect against the coronavirus walks among vehicles from Nissan at the Beijing International Automotive Exhibition in Beijing. China.(AP/ File)
A visitor wearing a face mask to protect against the coronavirus walks among vehicles from Nissan at the Beijing International Automotive Exhibition in Beijing. China.(AP/ File)

Nissan to promote Japan-based contract workers to full-time

Bloomberg
PUBLISHED ON JAN 18, 2021 05:34 PM IST
The hiring plan will “enable more efficient and effective business operations as well as improve individuals’ motivation and skills,” Azusa Momose, a spokeswoman for the company said.
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After eight years, the RBI under the current Governor Shaktikanta Das has been building up the foreign exchange (forex) reserve.(Mint file photo)
After eight years, the RBI under the current Governor Shaktikanta Das has been building up the foreign exchange (forex) reserve.(Mint file photo)

Forex intervention by RBI to touch USD 93 billion by March: Report

PTI, Mumbai
PUBLISHED ON JAN 18, 2021 05:13 PM IST
The report said they are more confident now that the RBI will continue to buy forex when the dollar is weakening.
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Foreign investors bought $2.4 billion worth of Indian stocks in the first two weeks of this month after investing the most since 2012 last year. (PTI PHOTO)
Foreign investors bought $2.4 billion worth of Indian stocks in the first two weeks of this month after investing the most since 2012 last year. (PTI PHOTO)

Sensex closes 470 points lower at 48,564 pts, Nifty ends session at 14,228 pts

Bloomberg
UPDATED ON JAN 18, 2021 04:20 PM IST
India’s equity benchmark fell in line with its regional peers on Monday, extending Friday’s decline. The drop moved the S&P BSE Sensex further away from the key 50,000 level it was looking to breach last week.
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The Nifty Metal Index was the worst performing index, falling 4.1% to its lowest since Jan 4.(AP)
The Nifty Metal Index was the worst performing index, falling 4.1% to its lowest since Jan 4.(AP)

Shares hit over 1-week low as shadow lenders drop on fears of tighter rules

Reuters, Bengaluru
PUBLISHED ON JAN 18, 2021 04:08 PM IST
The blue-chip NSE Nifty 50 index fell 1.06% to close at 14,281.3, while the benchmark S&P BSE Sensex was down 0.96% at 48,564.27.
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The investment strategy for the new fund will be the same as in the first fund, it said, adding that the investments will be made in three identified themes.(Reuters | Representational image)
The investment strategy for the new fund will be the same as in the first fund, it said, adding that the investments will be made in three identified themes.(Reuters | Representational image)

Tata Capital PE fund raises 1,250 cr to invest in urbanisation, manufacturing

PTI
PUBLISHED ON JAN 18, 2021 03:58 PM IST
The fund has both newer and existing investors, which include global and European fund of funds, Japanese institutions and a leading Asian development finance institution, a statement said.
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Mizoram’s first solar power plant has been commissioned at Tlungvel.(Reuters/ Representational photo)
Mizoram’s first solar power plant has been commissioned at Tlungvel.(Reuters/ Representational photo)

Total speeds up renewables push with $2.5 bln investment in Indian solar power

Reuters
PUBLISHED ON JAN 18, 2021 03:44 PM IST
For its investment, Total will get a 20% stake in AGEL and a seat on its board, as well as a 50% share in the Indian firm's portfolio of solar power assets, the French firm said.
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IRFC IPO comprises up to 178.20 crore shares, comprising a fresh issue of up to 118.80 crore and offer-for-sale of up to 59.40 crore shares by the government.(iStock)
IRFC IPO comprises up to 178.20 crore shares, comprising a fresh issue of up to 118.80 crore and offer-for-sale of up to 59.40 crore shares by the government.(iStock)

IRFC IPO opens for subscription; wise decision to invest, say experts

By hindustantimes.com | Edited by Shivani
PUBLISHED ON JAN 18, 2021 11:16 AM IST
As per experts, it will be a wise decision to invest in the IRFC IPO due to the strategic role of the Indian railways in financing growth. It also has a low-risk business model and lower credit risk.
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The S&amp;P BSE Sensex slid 0.3% to 48,878.1 as of 9:50 a.m. in Mumbai, with three stocks falling for each one that rose.(HT photo)
The S&P BSE Sensex slid 0.3% to 48,878.1 as of 9:50 a.m. in Mumbai, with three stocks falling for each one that rose.(HT photo)

Indian stocks drop for a second day, tracking losses in Asia

Bloomberg
PUBLISHED ON JAN 18, 2021 11:01 AM IST
Foreign investors have bought $2.4 billion worth of Indian stocks this month through Jan 14.
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The cryptocurrency could be hurt by an exodus of trend-following investors unless it can “break out” above $40,000 soon.(Reuters)
The cryptocurrency could be hurt by an exodus of trend-following investors unless it can “break out” above $40,000 soon.(Reuters)

Bitcoin retreats from $40,000 level strategists view as key

Bloomberg
PUBLISHED ON JAN 18, 2021 10:27 AM IST
Traders seeking clues about investor appetite for risk have been gripped by Bitcoin’s stunning rally and turbulent 12% slide.
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The Bombay Stock Exchange (BSE) building in Mumbai(PTI)
The Bombay Stock Exchange (BSE) building in Mumbai(PTI)

Sensex opens over 200 points lower at 48,831; Nifty falls 70.60 points to 14,363

PTI
UPDATED ON JAN 18, 2021 10:02 AM IST
HDFC Bank, HCL Tech, SBI, Tech Mahindra and ICICI Bank were among the gainers in the Sensex pack.
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