Daily BriefsMacro

Macro: Central Government: A Troubling Balance Sheet in Sight and more

In today’s briefing:

  • Central Government: A Troubling Balance Sheet in Sight
  • Equity Markets Ahead of The US Presidential Election

Central Government: A Troubling Balance Sheet in Sight

By Nitin Mangal

The Indian central government today made a 180 degree turn and decided to reverse its stance on the GST compensation owed by the states. The centre agreed to implement a special window through which it will borrow on behalf of the all the states combined. While this is deemed to bridge the gap on the GST shortfall, it does however indicate severe financial issues the centre is undergoing.


Equity Markets Ahead of The US Presidential Election

By Michael J. Howell

  • World economy is enjoying a V-shaped rebound
  • Bond markets are flat-lining, but look vulnerable to a post-Election sell-off
  • Asset allocators remain skewed towards ‘safe’ assets
  • World equities are under-priced relative to both the expanding pool of Global Liquidity and the rising stock of ‘safe’ assets

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