Morning News Call - India, December 5

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_12052018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH • 2:30 pm: Monetary Policy Committee to announce interest rate decision in Mumbai.

• 2:45 pm: RBI Governor Urjit Patel to brief media post policy decision in Mumbai.

• 5:00 pm: RBI conference call with analysts post policy decision in Mumbai.

INDIA TOP NEWS • India seen holding rates steady as inflation, growth soften Analysts expect India's central bank to support an economy that is losing momentum by leaving interest rates unchanged at a policy meeting on Wednesday, when just over a month ago most of them had predicted a hike.

• Key accused in Agusta Westland chopper scam extradited to India A key accused and alleged middleman in India's abortive, scandal-tainted helicopter deal with Anglo-Italian firm Agusta Westland was extradited to India from Dubai late on Tuesday, according to local media.

• Etihad, Jet Airways in talks on rescue deal - sources Etihad Airways is holding talks with Jet Airways and its bankers on a rescue plan for the debt-laden Indian carrier, two sources aware of the matter told Reuters.

• S&P cuts credit rating of Tata Motors on JLR weakness S&P Global Ratings on Tuesday lowered the credit rating of Tata Motors and its luxury car unit Jaguar Land Rover Automotive (JLR), citing weaker-than-expected profitability at JLR.

• UAE and India sign 35 billion rupees currency swap agreement India and the United Arab Emirates on Tuesday signed a currency swap agreement to boost investment and enable direct trade without using dollars or other international currencies.

• Indian Oil Corp issues 5-year tanker tender to import Iraqi oil: document Indian Oil has issued a global tender to charter scrubber-fitted oil tankers for at least five years to import Iraqi oil, a tender document seen by Reuters showed.

GLOBAL TOP NEWS • China confident it can clinch U.S. trade pact as Trump demands "real deal" China expressed confidence that it can reach a trade deal with the United States, despite fresh warnings from President Donald Trump that he would revert to more tariffs if the two sides cannot resolve their differences.

• British PM suffers setbacks as Brexit debate starts in parliament British Prime Minister Theresa May suffered embarrassing defeats on Tuesday at the start of five days of debate over her plans to leave the European Union that could determine the future of Brexit and the fate of her government.

• Top U.S. senators briefed by CIA blame Saudi prince for Khashoggi death Senior U.S. senators said on Tuesday they were more certain than ever that Saudi Arabia's crown prince, Mohammed bin Salman, was responsible for the killing of journalist Jamal Khashoggi after receiving a CIA briefing on the matter.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading down 0.4 percent at 10,864.50, from the previous close.

• The Indian rupee is expected to open lower against the dollar after growth and trade worries prompted a selloff in U.S. equities, dimming demand for regional assets.

• Indian government bonds will likely open higher in early session amid expectations of a dovish commentary by the nation’s rate-setting panel today, while fall in U.S. Treasury yields will also improve investor appetite. Yield on the benchmark 7.17 percent 2028 bond is likely to trade in a 7.55 percent-7.60 percent band till the policy decision today.

GLOBAL MARKETS • Wall Street tumbled more than 3 percent on Tuesday, led lower by bank and industrial shares, as the U.S. bond market sent unsettling signs about economic growth and investors worried anew about global trade.

• Asian stocks slid, dragged down by Wall Street's tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.

• The dollar remained under pressure after the U.S. bond market sent worrisome signs about economic growth overnight, adding to fears that the Federal Reserve could put its rate-hike cycle on hold.

• The difference between short-dated and long-dated U.S. Treasury yields narrowed further on Tuesday as the inversion of the yield curve spread between more maturities, prompted by worries about a slowdown in U.S. economic growth.

• Oil prices fell, weighed down by swelling U.S. inventories and a plunge in global stock markets as China's government warned of increasing economic headwinds.

• Gold prices were steady as the dollar edged up, while palladium dipped from record highs touched in the previous session but was in close proximity to the bullion.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.53/70.56 December 4 -7.93 mln -218.91 mln 10-yr bond yield 7.57 pct Month-to-date -- -$239.84 mln Year-to-date -5.08 bln -7.39 bln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 70.5200 Indian rupees) (Compiled by Hrithik Kiran Bagade in Bengaluru)