Last week Raghuram G. Rajan, who warned of a credit crisis in 2005 before it hit, waived a flag of caution and said that the trade wars when combined with a build-up in leverage and high asset prices could result in a toxic mix that dragged global growth.
While global growth has been strong in recent years, the concern is how long can it continue, and whether elevated asset prices are justified on the basis of it, Rajan said at Jackson Hole, Wyoming.
The Indian stock markets scaled new highs for the fifth consecutive week, while the rupee staged a good recovery on Friday, after falling below 70 during the week, to end higher by 20 paise at 69.91 against the US currency.
The two-day talks between U.S. and Chinese officials hit a roadblock while the crude oil prices firmed up.
Reliance Industries made history by becoming the first Indian company to cross Rs 8 trillion in market capitalisation. The market capitalisation of the company has doubled since the launch of Reliance Jio, which has disrupted the Indian telecom industry.
Here are the global and national events that are likely to impact economy and businesses this week.
SEBI: Capital market regulator Sebi is preparing the ground to allow ‘on tap public issue of bonds’ — a mechanism that will let corporates use stock exchanges to sell bonds directly to investors, including retail investors, any time and as many times during a financial year, after filing a single prospectus.
Issue of shares by unlisted cos: The guidelines making it mandatory for unlisted companies to issue new shares only in the dematerialised form are expected soon. This is an attempt to fight the black money menace.
Monsoon update: Despite the deluge in Kerala IMD data says that more than 40% districts in South India had a deficient rainfall this monsoon season. The worst rain-deficient state in South India was Tamil Nadu.
GDP Data: Government will announce data on second-quarter GDP on Friday. The Indian economy expanded 7.7 percent in the first quarter, higher than a downwardly revised 7 percent in the previous quarter.
U.S. second-quarter GDP data and Japan’s consumer confidence data for August will be unveiled on Wednesday.
Bank of Korea will announce policy on on Friday. Weak jobs growth has cooled speculation of an interest-rate increase, but the central bank has indicated its next move is up.