Good morning and happy Monday to you!
This is the daily morning update from NDTV Profit. Here’s everything you need to know at the start of the new week.
First up — global equity markets are positive at the start — this after Wall Street ended higher at the end of the week on the back of positive data in the US. Consumer spending rose in November amid strong demand, which pointed to the economy’s continued resilience.
There was also good news on inflation last month. The report from the Commerce Department on Friday showed moderate monthly rises in prices, with a measure of underlying inflation posting its smallest gain in six months. That’s according to a Reuters report. Still, the annual increase in core inflation, which strips out food and fuel, remained well above the Fed’s 2% target.
Wall Street ended the week higher — the Dow gained nearly 500 points, while the S&P 500 and the Nasdaq climbed 1% each. In the Asia Pacific region this morning, all three early risers are trading higher by over a percent each.
US Avoids Government Shutdown
Meanwhile, the US Congress passed spending legislation early on Saturday. That averted a government shutdown ahead of the busy holiday season. The Democrat-controlled Senate in an 85-11 vote passed the bill to continue government funding 38 minutes after it expired at midnight on Saturday. The government did not invoke shutdown procedures in the interim.
The legislation would extend government funding until March 14, provide $100 billion for disaster-hit states and $10 billion for farmers, and extend farm and food aid programs due to expire at the end of the year. At that point, the Trump administration will once again have to work towards building consensus to raise the debt ceiling.
Trump Threatens To Reclaim Panama Canal
In other news, even before he takes charge, President-elect Donald Trump is making headlines. The latest is a threat to reassert US control over the Panama Canal. The canal was handed over to Panama many years back. The threat, according to Trump, was ostensibly because Panama was charging the US excessive rates to use the passage.
Speaking to a crowd of supporters in Arizona, Trump also said he would not let the canal fall into the “wrong hands,” warning of potential Chinese influence on the passage. After the event, he posted an image on Truth Social of an American flag flying over a narrow body of water, with the comment: “Welcome to the United States Canal!”
In a recorded message Panama’s President Jose Raul Mulino said that Panama’s independence was non-negotiable and that China had no influence on the canal’s administration. He also defended the passage rates Panama charged, saying they were not set “on a whim”, read a Reuters report.
What GST Council Said About Your Popcorn Preference
In news back home, there were several updates from the GST Council Meeting over the weekend. But perhaps what stood out was the decision on popcorn. For savory popcorn—mixed with salt and spices—it retains the essential character of namkeens. This means a GST of 5% applies if it is supplied loose or unpackaged, while 12% GST kicks in for pre-packaged and labeled popcorn, according to officials. But caramel popcorn is considered a sugar confectionery. As a result, caramel popcorn and similar offerings will attract a higher 18% GST.
Besides that, the Group of Ministers has been given more time as requested on the tax treatment of health insurance, according to Finance Minister Nirmala Sitharaman. She also said that states are not comfortable with bringing jet fuel under GST ambit citing it being in the basket of petroleum goods.
SEBI Crackdown
In other news, markets regulator Securities and Exchange Board of India has uncovered a front-running scheme involving a PNB MetLife equity dealer Sachin Bakul Dagli and eight other entities, who generated illegal gains of Rs 21 crore. The front-running by these entities continued for more than three years.
SEBI, through an interim order on Friday, prohibited Dagli and eight other entities from the securities market and impounded the unlawful gains made by them. In a statement on Sunday, PNB MetLife stated that it has fully cooperated with Sebi in the investigation and taken disciplinary action against the individual involved.
. Read more on Business by NDTV Profit.NDTV Profit Podcast: While popcorn occupied substantial part of the 55t GST Council meeting, Donald Trump continued to make headlines ahead of his return to White House. Read MoreBusiness, Markets, World
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