Market round-up: China’s travel growth to top US over next decade
China’s travel industry is projected to grow at an average rate of 8% annually from 2017 to 2027, outpacing other major economies like India and the US, according to the World Travel and Tourism Council. The forthcoming 1-8 October national holidays will be a barometer of the booming industry, with China Tourism Academy projecting 710 million trips, up 10% from last year. Bloomberg
Pullback seen in Mumbai home sales in first half
Home sales in Mumbai are gaining ground, it appears. Estimates by Anarock Property Consultants show sales of houses in the first half of 2017 at 28,250 units are picking up pace and are down by 6% from a year ago, but are up sequentially over the second half of 2016, when sales were affected by demonetization. Interestingly, the quick roll-out of the Real Estate (Regulations and Development) Act in Maharashtra and the launch of compact small-ticket housing in suburban areas in recent months pushed up sales. Mid-sized developers are cashing in on the demand for smaller houses from a significant cross section of Mumbai’s upwardly-mobile nuclear families. This segment aided sales growth in the last six months.
Diverging stimulus pitches Indian bonds vs Indonesia
Indian bonds are offering the highest real yields over Indonesian debt since 2015, thanks to expectations of a divergence in policy stimulus between the two countries. Bank Indonesia unexpectedly cut its policy rate last Friday, citing a low inflation outlook. That same week, India’s 10-year yield jumped seven basis points after ET Now reported the government is weighing a possible stimulus worth Rs40,000 crore ($6.2 billion) and may relax the fiscal deficit target for this year. India inflation has averaged just 2.47% in the past five months, compared with 4.11% in Indonesia. As a result, the inflation-adjusted yield advantage that India’s 10-year notes offer over Indonesia’s widened to 202 basis points, the most since April 2015. This is a marked turnaround from November when the reverse was true, with a spread as low as minus 400 basis points. A basis point is one-hundredth of a percentage point. Bloomberg