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The UN climate conference COP29 in Baku concluded with an agreement for $300 billion in annual climate finance, but many countries, including India, expressed dissatisfaction over the lack of commitment from wealthier nations. Small Island States criticized richer countries for being opportunistic, while concerns grew that the US might withdraw from climate discussions, echoing past threats from Trump.
Saudi Arabia's ambitious Vision 2030 projects, including the $1.5 trillion NEOM initiative, face scrutiny as the kingdom shifts focus to domestic investments amid rising deficits and lower oil revenues. Despite a projected budget deficit of $21.1 billion for 2024, officials assert that non-oil revenues now cover 37% of expenditures, indicating a commitment to fiscal discipline and economic diversification. However, skepticism remains regarding the feasibility of mega-projects, with some analysts predicting potential cutbacks to ensure sustainability.
China's central bank has maintained its medium-term lending rate at 2.0% to stabilize the yuan amid pressures following the U.S. presidential election. The People's Bank of China aims for gradual policy adjustments, with expectations of potential reserve requirement ratio cuts and a cautious approach to interest rate changes as it navigates economic challenges. The offshore yuan has depreciated over 3% since late September, prompting discussions on balancing economic revitalization with exchange rate stability.
Zimbabwe's president is set to convene a conference with creditors and finance executives on Monday. The agenda includes ambitious plans to address debt arrears and restructure $12.7 billion in external debt, with the goal of accessing international capital markets for the first time in over 20 years.
Goldman Sachs anticipates a cautious approach from Asia's central banks regarding interest rate cuts, influenced by the strength of the US dollar and potential tariffs from the Trump administration. The Bank of Korea is expected to refrain from further rate reductions this week, while Indonesian officials have indicated limited capacity for lowering borrowing costs due to US political developments.
India is set to finalize a carbon credit deal with Japan by early 2025, with plans to pursue similar agreements with South Korea and Singapore. As the world's third-largest carbon dioxide emitter, India aims to attract investment and technology for pollution mitigation projects that will generate carbon credits.
Base metals and iron ore experienced gains as the dollar fell sharply following Donald Trump's nomination of Scott Bessent for Treasury secretary. All major contracts on the London Metal Exchange rose, reflecting a broader increase in stocks and risk assets, with the US currency declining the most in over two weeks.
Traders are gearing up for a dynamic trading day following the BJP-led alliance's decisive victory in the Maharashtra state elections, with Nifty futures rising over 1%. This win is perceived as a signal of policy continuity in India's wealthiest state, although concerns about the Adani Group, foreign investor outflows, and high valuations remain.
Indian markets ended a two-week losing streak with a positive weekly close, driven by a rally on Friday despite ongoing foreign institutional investor (FII) selling. The BSE Sensex rose by 1.98% and the Nifty50 by 1.7%, partly fueled by exit poll results indicating strong support for Maharashtra's incumbent government. FIIs sold equities worth Rs 11,414.18 crore during the week, totaling Rs 40,947.35 crore for the month.
Nifty and Sensex are expected to rise following a strong victory for the BJP in Maharashtra, fueling optimism for a revival in economic growth. Investors are keenly watching the market for potential gains stemming from this political development.
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