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Reactions to India's reduction of consumption tax on hundreds items
India announced on Wednesday that it would reduce taxes on hundreds of items, from soaps to cars, to boost domestic demand. It also simplified the complicated structure of its goods and services tax to just two rates, from four. There were some exceptions, however, for luxury goods and "sin goods". Early sessions saw the benchmark BSE Sensex (BSE index) and Nifty 50 rise by 0.8% each. Here's how the industry has responded so far: ANISH SHAH, GROUP COOPERATIVE & MD MAHINDRA GROUP "The next-generation GST Reforms... mark an important moment in India's quest to build a simpler and fairer tax system that is more inclusive. Mahindra views these reforms in a transformative way. These reforms simplify compliance, increase affordability, and energise the consumption while allowing industry to invest more confidently." SAURABH AGAWAL, PARTNER, AUTOMOTIVE TASKS LEADER AT EY INDIA The rationalization of GST on automobile vehicles and parts has been a welcome and significant change. This move, which makes vehicles more affordable in all segments will boost consumer spending and simplify the complex classification disputes that have plagued the industry for years. SAMIR SHAH, EXECUTIVE DIR. & CFO HDFC ERGO GENERAL INSURANCE COMPANY "The GST Council's decision to exempt health insurance for individuals from GST is an important development. This decision is in line with the regulator's broader goal of "Insurance for All By 2047", and represents a significant step forward. It is expected that the premiums will decrease due to the lower taxes. However, the exact amount of this reduction will depend on the availability of input tax credits, which we will learn more about in the next few days." NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO The GST announcement reduces inflation, increases consumer sentiment, does not disturb fiscal consolidation, and improves the ease of doing business. It also partially offers negative effects of tariffs. SHAILESH CHANDRA PRESIDENT, SOCIETY FOR INDIAN AUTOMOBILE MANUFACTURERS This timely move will bring new energy to the Indian automotive sector and bring cheer to consumers. These announcements, which will make vehicles more affordable for first-time buyers, middle-income families and those in the entry-level segments, will benefit them greatly. C S VIGNESHWAR PRESIDENT, FEDERATION OF AUTOMOBILE DELIVERERS ASSOCIATIONS "The 56th GST Council Meeting marks a watershed for India's automotive retail industry. This is a bold step that will increase affordability, stimulate demand and strengthen India's mobility eco-system. "There may be a need for clarification on the levy of cess and how it is treated in dealer's books. This will ensure that there are no ambiguities during transition." SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED. "At Patanjali Foods we are committed to passing these benefits on to our customers. This initiative not only will increase FMCG penetration in urban and rural India, but it will also act as catalyst for wider economic revival by boosting consumption and supporting related sectors. This reduction will benefit our categories like ghee soaps, biscuits and noodles, honey and chyawanprash." RADHIKA RAO IS A SENIOR ECONOMIST IN THE DBS BANK OF SINGAPORE The lower GST rate will have a positive impact on growth in the second and third quarters of this year, as well as FY27. It will also improve operational efficiency and expand the formal economy. GARIMA KAPOOR ECONOMIST INSTITUTIONAL EQUITIES ELARA SECURITIES MUMBAI We expect GST-related demand boost to add between 100 and 120 bps to GDP growth in the next 4-6 quarters. This will nullify the negative impact on exports to US. We remain positive on the increase in consumer demand as multiple policy levers are now favourable for the very first time in over a decade. SHRIPAL SHAH is the MD & CEO of KOTAK SECURITIES The GST rate reductions are timely, as they come just before the holiday season and in the context of US tariff disputes. Consumers will have more money to spend on essentials such as FMCG, autos and concrete. It should boost the demand and help businesses and traders see more volume. The earnings for next quarter may also be boosted. This could also help to reduce inflation. It will depend on how quickly the companies can pass these benefits onto their customers. DEVARSH VAKIL HEAD OF PRIME RESEARCH HDFC SECURITIES The GST reforms are a paradigm shift towards economic rationality. Rate reductions for essentials such as dairy, medicine, and food directly benefits consumers because of their inelastic nature. These reforms are a combination of RBI rate cuts, income tax rebates for FY26, and a moderated inflation. They create multiple stimuli to stimulate consumption and economic growth."
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Palm prices rise on the back of better exports
Malaysian palm futures were up on Thursday as traders anticipated robust export demand to key destinations. They also awaited demand and supply statistics from the Malaysian Palm Oil Board for additional cues. At the midday break, the benchmark palm oil contract on Bursa Derivatives Exchange for November delivery gained 38 ringgit or 0.86% to 4,480 Ringgit ($1,065.40), a metric tonne. The contract dropped 0.76% during the previous session. The Malaysian stock exchange will be closed Friday due to a public holiday. The price of crude palm oil futures rose as traders expect the demand for exports to remain strong in September. They are also waiting on data from Malaysian Palm Oil Board and export figures due next week. He said that "the production numbers will determine the direction of the market in the future". A survey on Wednesday showed that Malaysian palm oil inventories will rise for the sixth consecutive month, as production continues outpacing exports, despite an improvement in demand. Dalian's palm oil contract, which is the most active contract, gained 0.3% while soyoil prices rose by 0.14%. Chicago Board of Trade soyoil prices were up by 0.06%. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils. Oil prices fell, extending a drop of more than 2% from the previous trading session. Investors and traders are looking ahead to a meeting at OPEC+ this weekend, where producers will likely consider a further increase in production targets. Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures. The palm ringgit's trade currency, the dollar, has weakened by 0.14%, making it slightly cheaper for foreign buyers. Technical analyst Wang Tao stated that palm oil could test the support zone between 4,367 and 4,381 Ringgit per metric tonne. A break below this level would open up the road to 4,343 Ringgit.
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Heavy rains in Delhi flood Delhi's Yamuna River, crossing the danger mark.
After heavy rains in the north, parts of Delhi and Indian Kashmir flooded Thursday. However, weather officials predict some relief from the downpours. This year's fierce monsoon has caused immense destruction, with at least 130 deaths in August. The torrential rains in the Himlayan enclaves of Ladakh and Himachal Pradesh, as well as the federal territory Jammu and Kashmir and the Himlayan enclave Jammu and Kashmir have flooded many rivers to dangerous levels. After a breach in the Jhelum River embankment, authorities advised people to evacuate their homes. Omar Abdullah said on X that "the Jhelum is rising, but at a slower rate than expected." The administration will not lower its guard. "We continue to closely monitor the situation." Officials said that rescuers were searching for people who may have been trapped under debris at the Ratle Hydroelectric Power Project on the Chenab River in Drabshalla after heavy rain caused a landslide. Indian weather officials predict that showers will ease on Thursday with moderate rainfall expected in Jammu & Kashmir and Uttarkhand. The Yamuna River in Delhi, India's capital, reached the danger level on Tuesday. The Central Water Commission called it a "severe" situation. As a precaution, thousands of people had evacuated their homes to safer areas before the muddy water began pouring in. The historic Loha Pul or Iron Bridge that spans the Yamuna River in the old part of the town has been closed by the authorities. Many people waded in floodwaters around the historic Red Fort. They carried an idol of Lord Ganesha - the Hindu god that vanquishes all obstacles - for an annual ritual. Rains have destroyed crops on tens and thousands of hectares in Punjab, the breadbasket of the country. Since August began, 37 people have died. The floods in India and Pakistan were exacerbated by the authorities releasing water from dams. Reporting by Adnan Abidin and Tanvi Mehta from New Delhi; Fayaz Bukhari in Srinagar, Editing by Clarence Fernandez
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AMBITION EUROPE-Stress relief as Japan's debt auction is successful
Gregor Stuart Hunter gives us a look at what the day will bring for the European and Global markets. Jittery bonds markets found calm after members of the Federal Reserve sounded a support note for rate reductions and Japan's most recent super-long bond auction passed without incident. The markets stabilized after a Thursday auction of 30-year Japanese Government Bonds met with a bidding-to-coverage ratio of 3,31. This was after the yield of similar-dated debt reached a record. The bond market is not yet experiencing a new wave of fear, despite the fact that demand for 30-year Japanese government bonds was at its lowest level since June. Investors in Asia took a positive view of the U.S. Stock Futures after Federal Reserve officials including Governor Christopher Waller reiterated their support for rate reductions in the months to come. Stephen Miran, the nominee of President Donald Trump to fill a vacant seat on the Federal Reserve Board said that he would also work to preserve the independence of the central bank ahead a Senate confirmation meeting later today. According to CME Group’s FedWatch tool, traders are pricing in a 96% probability that the Fed will cut interest rates during its September meeting. The yield on 10-year Treasury bills rose to 4.2187% from its U.S. closing of 4.211% Wednesday. Meanwhile, the U.S. Dollar Index retreated 0.1% to 97.231. Early European trading saw pan-regional futures flat, German DAX Futures slipping 0.1%, and FTSE Futures up 0.1%. MSCI's broadest Asia-Pacific share index outside Japan, which had been up in the beginning, was down by 0.2% at its last update. China losses were to blame for this. Bloomberg News reported that financial regulators were preparing cooling measures to cool the market. The blue-chip CSI 300 dropped 2.5%, and was on course for its largest one-day drop since April. The SSE STAR 50 Index fell 5.4% as GPU chip maker Cambricon Technologies, a leader in the recent rally, dropped as much as 132%. The BSE Sensex rose 1.1% at the opening of the markets after the Indian government slashed taxes on several items to boost consumption and counteract U.S. Tariffs. Brent crude fell 0.7% on the commodities market to $67.16 per barrel. Gold spot prices dropped by 0.8% to $3,531.63 an ounce, after reaching a record high on Wednesday. The following are key developments that may influence the markets on Thursday. Earnings: Broadcom, CVC Capital Partners, Lululemon Athletica Eurozone economic data: retail sales for July Debt auctions: France: 10 year, 17-year, and 31-year government bond auctions United Kingdom: 20-year government debt auction
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Oil prices continue to fall as OPEC+ considers a new output increase
Oil prices fell on Thursday, extending a drop of more than 2% from the previous session. Investors and traders are looking ahead to a meeting at OPEC+ this weekend, where producers will likely consider another increase to output targets. Brent crude dropped 46 cents or 0.7% to $67.14 a bar by 0416 GMT. U.S. West Texas intermediate crude fell 47 cents or 0.7% to $63.5 a bar. Two sources with knowledge of the discussions said that eight members of the Organization of the Petroleum Exporting Countries (OPEC+) will discuss further increases in production at a Sunday meeting. The group is seeking to regain its market share. Brent crude oil is under pressure again as OPEC+ looks to release more barrels (in the fourth quarter). If this goes ahead, it could worsen the anticipated surplus, especially during the lean season," ANZ Research analysts said in a note to clients. OPEC+ agreed to increase output targets from April to September by approximately 2.2 million barrels a day, plus a 300,000. bpd quota for the United Arab Emirates. Middle Eastern oil has remained the most expensive region in the world despite production increases. According to a Haitong Securities report, this has boosted the confidence of Saudi Arabian and other OPEC member countries to increase output. Vivek Dhar is an analyst with Commonwealth Bank of Australia. He said that claiming more market share was another factor driving OPEC+'s decision to raise quotas in April. Dhar stated that "this implies that OPEC+ is more comfortable with a Brent oil price of $60 to $65 per barrel than their prior target of $70." He added that Brent futures would likely fall between $60 and $65, pushing WTI into a range of high $50 to low $60, putting pressure on the economics behind the growth in U.S. Shale Oil supply. The market is also waiting for government data about U.S. crude stocks, which are due later on Thursday. This is a day earlier than usual as Monday was a U.S. federal holiday. Market sources cited American Petroleum Institute (API), which released figures on Wednesday, to say that U.S. crude stock levels rose by 622,000 barges in the week ending August 29. API's estimate of a U.S. increase in crude stock went against the estimates of analysts surveyed by who, on average estimated that U.S. crude inventory had fallen by 2,000,000 barrels. (Reporting from Sam Li in Beijing, Trixie Yap and Nicole Jao in New York. Additional reporting by Nicole Jao and Christian Schmollinger.
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Climate change is responsible for the weather that caused Iberian fires, according to a report
According to an analysis conducted by World Weather Attribution, the hot, dry, and windy conditions that caused Spain's worst wildfires for at least 30 years are 40 times as likely to occur again due to climate change. World Weather Attribution, an international collaboration, has carried out over 110 studies to determine the influence of climate changes on extreme weather events. A group of 13 scientists analysed weather data and found that extreme conditions which caused the fires that occurred in the Iberian Peninsula's northwest, including Portugal, last month, are likely to occur every 15 years because of today's climate. Climate is now 1.3 degrees Celsius warmer than pre-industrial levels, when similar events were expected every 500 years. In the European Union, forest fires have destroyed more than one million hectares in this summer. Spain and Portugal accounted for two-thirds. At least eight people were killed in the fires, which forced thousands to evacuate and halted rail and auto traffic in many areas. The fires coincided with the longest heatwave in history, lasting 16 days. Theodore Keeping is a researcher with the Centre for Environmental Policy Imperial College London. He added that "for wildfires there is an urgent need to manage vegetation in rural areas," especially land that had been abandoned by shepherds and farmers. "In the end, however, we need to stop burning coal, oil and gas." The study concluded that heatwaves with similar intensity would occur every 13 to 2,500 years, if man-made climate changes did not exist. Scientists analysed a daily severity rating (DSR) that takes into account temperature, humidity, windspeed and rain in order to determine the intensity and difficulty of an upcoming wildfire. The study concentrated on the 10 most intense DSR days every year, and the 10 hottest summer days in northwestern Spain. (Reporting and editing by Andrei Khalip, Gareth Jones and Charlie Devereux)
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New tax law aims to give Philippines a fairer share of mining profits
On Thursday, Philippine President Ferdinand Marcos Jr. signed into law a measure that overhauls the country's tax system for mining. The aim is to provide a greater share of revenue to the government as well as more transparency in the sector. The new law replaces the fragmented system that differed depending on what type of mining agreement was signed. Marcos stated during the signing ceremony that "we are putting in place a more fair, clearer system that responds to both the needs of our people and environment." The previous system required only mines located within mineral reserves to pay royalties. However, the fiscal obligations were different depending on the type mining agreement. The new law simplifies and increases taxation on all large-scale metal mining operations. It is expected to generate additional revenue of approximately 6.26 billion pesos (110.56 millions) per year. The margin-based royalties will range from 1% up to 5% depending on profitability. When income margins are greater than 30%, there will be a tax rate of between 1% and 10%. This is to capture excess profits in commodity booms. The law introduces a rule of ring-fencing, which means that each mining project is taxed separately. This prevents companies from balancing losses from one project with profits from another. "The days of a mining contractor burying its profits under the weights of losses are over." Marcos stated that we can no longer use the failure of one project to hide the success of another. "Transparency has become the norm." The Philippines has untapped copper, gold and nickel reserves worth an estimated $1 trillion. Government data revealed that mining concessions cover less than 3% (or 22.22 million acres) of the 9 million hectares (9 million acres), which have been identified as areas with high mineral potential. According to the Mines and Geosciences Bureau, in 2023, the exports of mineral products and non-metallic minerals will total $7.32 billion. This is a slight decrease from $7.53 million in 2022. ($1 = 56.6220 Philippine Pesos)
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Asia markets rise as Fed comments and jobs data indicate rate cuts
Asian stocks rose in the early hours of trading on Thursday, as Federal Reserve officials' dovish remarks soothed investor nerves during a period when global growth concerns and bond market sell-offs were at an all-time high. The Nikkei rose by 1.2%, and Australian shares gained 0.8% after their largest one-day drop since April. MSCI's broadest Asia-Pacific share index outside Japan, which includes Japan and Australia, lost early gains before falling 0.2% in the last few days. Losses in China were a major factor. Bloomberg News reported that financial regulators were preparing cooling measures to cool the market. The Shanghai Composite dropped 1.6%, and was headed for a third consecutive day of declines. The financial markets started September with a gloomy mood. A sell-off of longer-dated debts has dampened investor confidence in advance of Friday's crucial non-farm payrolls in the United States. A 30-year auction of Japanese government bonds will be held later today to test the appetite of global debt markets for super-long fixed income. The bond market sold-off overnight, but the concern about the fiscal health in major economies, from Japan to Britain and United States, kept borrowing costs for long-term loans near their multi-year-highs. Investors received a boost in confidence after Federal Reserve officials including Governor Christopher Waller expressed their support for rate reductions in the months to come. Stephen Miran said that he would also work to maintain the independence of the Federal Reserve Board. He was selected by President Donald Trump to fill a vacant seat. U.S. Stock Futures rose 0.1%, as investors reacted positively to the Fed's dovish remarks and bought beaten-down stocks. Tony Sycamore is a market analyst with IG, Sydney. He said: "We had one or two weak days but dip-buyers stepped in." Many people see this September weakness as a good opportunity to buy, with the economy still growing strongly. "This is an excellent backdrop for equity markets." The latest "JOLTS", or Job Openings Report, released on Wednesday showed that job openings were lower than expected. This boosted market bets for a rate reduction at the Fed meeting scheduled later in the month. The Federal Reserve "Beige Book", which was released in September, painted a mixed image of the U.S. economy. This appeared to confirm the concerns of monetary policymakers. Analysts from ING described the report's tone as "bleak," and said that it "was littered with tariff warnings about prices." According to CME Group’s FedWatch tool, traders are pricing in a 96% probability that the Fed will cut interest rates during its September meeting. The yield on the benchmark 10-year Treasury note rose to 4,2226% from its U.S. closing of 4.211% Wednesday. The two-year rate, which increases with traders' expectation of higher Fed Funds rates, reached 3.6187%, compared to a U.S. closing of 3.612%. The dollar was unchanged against the yen, at 148.13. It remained within the trading range that it has been in since August began. The euro currency fell 0.1% to $1.1652, whereas the dollar index (which tracks the greenback's value against other major trading partners) rose 0.1% to 98.217. Brent crude fell 0.5% on the commodities market to $67.29 per barrel. Gold spot prices fell 0.8% to $3529.94 an ounce, after reaching a record high on Wednesday.
SPIE Secures Cabling Job at Taiwanese Offshore Wind Farm
SPIE Global Services Energy, through its SPIE Wind Connect, has secured termination and testing job of the inter-array cables for the Taiwan Power Company (TPC) offshore wind farm phase II.
SPIE Wind Connect signed the contract with Shinfox Far East Energy (SFE) for the 300 MW TPC phase II, located approximately 20 kilometers offshore from Changhua County in Taiwan.
The inter-array cables connect 31 Vestas V174-9.5MW offshore wind turbines to the offshore substation. Execution of works began in August 2025, with completion scheduled in 2026.
Building on the success of TPC Phase I, which added 109.2MW of renewable energy capacity in November 2021, TPC Phase II is set to significantly expand Taiwan’s offshore wind portfolio.
Once operational, it is expected to generate 1,000 GWh of electricity annually, meeting the power needs of approximately 270,000 households and reducing carbon dioxide emissions by over 403,000 metric tonnes each year.
“This project marks another significant milestone in SPIE Wind Connect growing presence in Asia’s offshore wind sector.
“As Taiwan establishes itself as a regional leader in offshore wind, with a robust project pipeline through 2035 and world-class wind resources, we are honored to be entrusted by Shinfox Far East Energy to contribute to the country’s energy transition,” said Sam Dowey, Managing Director at SPIE Wind Connect.