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Morning News Call - India, November 4

Nov 4 (Reuters) - To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_11042019.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH LIVECHAT - REUTERS INVESTMENT SUMMIT 2019 Mihir Vora, Chief Investment Officer, Max Life Insurance, and Rahul Chadha, Chief Investment Officer, Mirae Asset Global Investments participate in discussions at 9:30 am and 11:30 am IST respectively. To join the conversation. To join the conversation, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • Thailand says new Asian trade deal to be signed in 2020 Thailand said on Sunday that Southeast Asian nations are committed to signing a pact by February 2020 on forging what could become the world's largest trade bloc, even after new demands by India dealt a blow to the process backed by China. • India's Yes Bank posts quarterly loss as asset quality worsens Indian private-sector lender Yes Bank Ltd reported a bigger-than-expected loss for the second quarter on Friday, as asset quality worsened and provisions swelled. • Softening demand drags Indian factory growth to 2-year low in Oct - PMI India's factory activity growth hit a two-year low in October as new orders and output rose at a slower pace, dragging business confidence to its weakest since early 2017, a survey showed on Friday, suggesting more policy easing is on the cards. • India's Congress party says Priyanka Gandhi Vadra hit by WhatsApp privacy breach India's main opposition Congress party said on Sunday that its general secretary Priyanka Gandhi Vadra had been informed by messaging service WhatsApp that her phone was hacked during this year's election campaign by malware from Israeli surveillance firm NSO. • India orders IndiGo to replace all Pratt engines on Airbus A320neo planes IndiGo must replace all Pratt & Whitney (P&W) engines on its fleet of almost 100 twin-engined Airbus A320neo family aircraft with new P&W power units, India's air safety watchdog said on Friday following recent inflight engine shutdowns. • Amazon's bid to acquire stake in Indian retailer faces antitrust hurdle-sources India's antitrust body has sought more information from Amazon.com Inc about its planned acquisition of a stake in India's Future Retail , sources with knowledge of the matter told Reuters, which could potentially delay the deal. • Germany's Merkel renews push for FTA with India, pledges green funds German Chancellor Angela Merkel said on Saturday there was a need for a fresh attempt to restart talks on finalising a free trade agreement (FTA) between India and the European Union. • India's smog-bound capital suffers most hazardous air so far this year Air pollution in New Delhi and surrounding towns reached the worst levels so far this year on Sunday, with authorities in the world's most polluted capital city having already declared a public health emergency and ordered the closure of schools. GLOBAL TOP NEWS • Saudi Aramco kick-starts what could be world's biggest IPO, offers scant details Saudi Arabia's giant state oil company finally kick-started its initial public offering (IPO) on Sunday, announcing its intention to float on the domestic bourse in what could be the world's biggest listing as the kingdom seeks to diversify its economy away from oil. • Hong Kong braces for protests as two critical after weekend clashes Two people were in critical condition in Hong Kong, police said, after a weekend of chaotic clashes with anti-government protesters, as China called for a "tougher" stance to end months of unrest that have roiled the Asian financial hub. • Australian weak retail sales, jobs point to need for more stimulus Australian retail sales surprisingly fell last quarter while growth in September was weaker-than-expected, underlining the need for even more stimulus to jumpstart the slowing economy. LOCAL MARKETS OUTLOOK (As reported by NewsRise) SGX Nifty nearest-month futures 0.2% higher at 11,960.00. The Indian rupee is expected to open higher against the dollar as better-than-expected U.S. job additions and optimism that the U.S. and China are nearing an interim trade deal boosted risk appetite. Indian government bonds are likely to fall in early session, as the central bank's announcement to conduct longer-term reverse repo auctions raised uncertainty over the quantum and pace of open market note purchases in the rest of this fiscal year. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.43%-6.48%. GLOBAL MARKETS • U.S. stocks rallied to close out the trading week on Friday as the S&P 500 set a closing record for the third time in five days after an upbeat U.S. jobs report and data on Chinese manufacturing eased concerns about slowing global growth. • Asian shares rose to 14-week highs on Monday as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors' appetite for riskier assets. • Major currencies started the week quietly with a holiday in Tokyo making for thin trading conditions and investors waiting to hear the first official speech from the new head of the European Central Bank later in the session. • U.S. government bond yields were higher on Friday after evidence of stronger-than-expected domestic jobs growth in October outweighed the continued contraction of the manufacturing sector, under pressure from the U.S.-China trade war. • Oil prices eased as traders remained cautious ahead of fresh European and U.S. economic data, despite hopes for some resolution to the U.S.-China trade row that has hurt global economic growth and crimped energy demand. • Gold prices slipped on signs that a U.S.-China trade deal could be signed this month and as a string of strong economic data bolstered investors' appetite for riskier assets, taking some shine off the precious metal. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.90/70.93 November 1 1,989.84 crore 1,056.56 crore 10-yr bond yield 6.48% Month-to-date 1,990 crore 1,057 crore Year-to-date 70,543 crore 33,913 crore (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 70.60 Indian rupees) (Compiled by Nayyar Rasheed in Bengaluru)