On Episode 335 of The Core Report, financial journalist Govindraj Ethiraj talks to Nicole Schwab, the Co-Head of the Nature Positive Pillar at the World Economic Forum, and member of the Executive Committee.
SHOW NOTES
• (00:00) The Take
• (03:50) Stories Of The Day
• (04:31) Markets are flat again
• (05:55) The Chinese Central Bank has stopped buying gold, could that slow prices?
• (07:42) Citigroup says India will struggle to create enough jobs
• (12:07) Goldman Sachs says all is well and will be better with the Budget
• (14:01) Why companies must step up their investments in and contribution to nature based climate solutions
The Markets Flat:
The Sensex and Nifty50 indices remained subdued on Monday, with the BSE Sensex closing down 36 points at 79,960 and the Nifty50 ending the day down 3 points at 24,321. Key drivers included gains in stocks like HUL, Nestle, and Reliance Industries, offset by declines in Titan, HDFC Bank, TCS, Tata Steel, and Sun Pharma. The MidCap and SmallCap indices, although hitting record intraday highs, ended the day 0.14% and 0.22% lower, respectively. On the international front, French stocks gained modestly following a surprising win by the left in the parliamentary elections, resulting in a potentially hung parliament, CNBC reported.
China’s Central Bank Pauses:
The People's Bank of China has paused its gold purchases for the second consecutive month as gold prices declined from record highs. The central bank's gold reserves stood unchanged at 72.8 million troy ounces. This halt follows an 18-month buying spree that saw gold prices reach their highest ever. Analysts speculate that high gold prices have deterred further buying but anticipate that purchases might resume as China looks to diversify its financial reserves amidst economic uncertainties.
The Citi vs Goldman Views:
The Indian government has countered a Citigroup report that suggested India would face difficulties in generating sufficient jobs, despite projecting a 7% growth rate. Official sources, including the Periodic Labour Force Survey and the Reserve Bank of India's data, demonstrate substantial job growth, contradicting Citigroup's claims. The RBI's latest reports suggest a robust increase in jobs, with total employment rising to 643.3 million in FY 2023/24 from 596.7 million in the previous year. In contrast, the Centre for Monitoring Indian Economy reported an increase in unemployment rates, with a notable spike to 9.2% in May, the highest in eight months.
Goldman Is Back With The Positive Spin:
Ahead of the upcoming budget, Goldman Sachs analysts have predicted adherence to fiscal consolidation, emphasizing a long-term economic vision rather than short-term stimulus measures. This approach aligns with the government's broader economic policies slated for the centennial of Indian independence in 2047. The analysts highlighted limited fiscal room due to high public debt but noted that infrastructure enhancements could foster positive long-term growth effects.
Natural Climate Solutions:
A collaborative report by the World Economic Forum, the Confederation of Indian Industry, and IORA Ecological Solutions has brought to light significant insights on private sector investments in natural climate solutions (NCS) in India. The report indicates a direct correlation between economic risks and nature loss, emphasizing the importance of NCS in mitigating climate change impacts and enhancing biodiversity. It pointed out that a substantial portion of India's forestland is degraded, making conservation and restoration efforts critical for ecological and socio-economic resilience.
#stockmarkettoday #SensexNiftyUpdate #FrenchElections #ChinaGoldReserves #indiaeconomy #JobCreationIndia #GoldmanSachsIndia #goldmansachs #NaturalClimateSolutions #economicpolicyindia #financenews #govindrajethiraj #thecorereport #thecore
RESOURCES
- Unlocking Private Sector Investment into Natural Climate Solutions in India (WHITE PAPER) (www3.weforum.org/docs/WEF_Unl...)
Listeners! We await your feedback.... (tinyurl.com/TCR-Listener-Survey)
To collaborate with our Core Brand Studio contact shiva@thecore.in
For more of our coverage check out thecore.in (www.thecore.in/)
Support the Core Report (thecore-in.mojo.page/support-...) --
Join & Interact anonymously on our whatsapp channel (whatsapp.com/channel/0029Va5t...)
Subscribe to our Newsletter (www.thecore.in/category/podca...)
Follow us on:
Twitter ( / the_core_in )
Instagram ( / the.core.in )
Facebook ( / thecore.biz )
Linkedin ( / thecore-in )
KZfaq ( / @thecore_in )