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Modi's Labor Reform Push May Remove Key Hurdle For Investors

Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labor laws to attract investment and make it easier to do business in a country where changing archaic rules is a challenge for any government.

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Video commentary for November 27th 2019

 

Eoin Treacy's view

 A link to today's video commentary is posted in the Subscriber's Area

Some of the topics discussed include: P&F review of global markets

 

Please Note - Comment of the Day will not be updated on Thursday in observance of the Thanksgiving Day Holiday

 

Eoin Treacy's view

Modi's Labor Reform Push May Remove Key Hurdle For Investors

This article by by Bibhudatta Pradhan and Vrishti Beniwal for Bloomberg may be of interest to subscribers. Here is a section:

Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labor laws to attract investment and make it easier to do business in a country where changing archaic rules is a challenge for any government.

After a long struggle, his government will push a crucial industrial relations bill allowing companies to hire workers on fixed-term contracts of any duration. The legislation, to be tabled in Parliament’s current winter session, does not seek to change stringent laws on hiring and firing, but allows the government the flexibility to relax the conditions through an executive order.

Unlike his last term in power, when Modi decided against bringing this labor reform bill to Parliament, this time around he knows he has the numbers needed. The current changes are part of a process to streamline 44 different federal labor laws into four codes, another step to formalize the $2.7 trillion economy.

It comes on the back of several recent reforms announced by Modi’s government to boost investment, including aggressive cuts in corporate taxes, relaxation of foreign investor rules and the biggest privatization drive in more than a decade.

 

Eoin Treacy's view

Indian voters gave Modi the increased majority in both houses he asked for. India’s massive young, ambitious population is eager for change, and they knew that the only way to get it is to free the hands of government to push through much needed reform. No one is under any illusion that it will be difficult and there are going to be some vested interests in the bureaucracy who will be upset, but the need for reform is undeniable. The fact Modi is following through and tackling some of the country’s thorniest issues is about as positive sign of improving governance as anyone might hope for.

 

 

Biggest LNG Producer Targets 64% Jump in Capacity by 2027

This article by Simone Foxman and Verity Ratcliffe for Bloomberg may be of interest to subscribers. Here is a section:
 

Qatar’s plan for a 64% increase in LNG capacity is likely to intensify a global glut in the fuel. The nation is seeking to fend off competition from rival producers such as Australia and the U.S. that have ramped up production and eroded the Gulf state’s historic dominance of the market. Australia has exported about 70 million tons of LNG this year, compared with 71.9 million for Qatar, according to vessel-tracking data compiled by Bloomberg.

The North Field holds more than 1,760 trillion cubic feet of gas, and state-run Qatar Petroleum will “immediately” start engineering work for two additional LNG production plants, or trains, for a combined capacity of 16 million tons annually, Al Kaabi said in a statement. Qatar will be able to produce about 6.7 million barrels of oil equivalent a day by 2027, said Al Kaabi, who also serves as QP’s President and Chief Executive Officer.

 

Eoin Treacy's view

The quantities of natural gas that can be brought to market, almost at will, are nothing short of astounding and suggest a price war is inevitable. With Australia now producing almost as much gas as Qatar and the USA exporting the bounty from shale wells the global market for gas is likely to continue to grow.

 

 

5G, Royalties, Chip Mix Turn Qualcomm to Growth

This note focusing on Qualcomm and 5G may be of interest to subscribers. Here is a section:

 

THESIS: A strong position in 5G chips, coupled with expanded royalties, may position Qualcomm for sales and EPS growth in fiscal 2020. Higher-priced 5G handsets aid its royalty business, while increased use of its advanced 5G chips will drive up chip content and average prices. This content is further enhanced by a wider portfolio of radio-frequency chip offerings. The company is set up to gain from a richer 5G handset mix and pricing, as well as a higher-end chip mix and content expansion of its own portfolio. Royalty mix aids margin, expanding EPS faster than sales. A softer, slower global 5G ramp up, especially outside China, is the key risk.

 

Eoin Treacy's view

Speed and lag are two of the biggest obstacles to moving more of the global economy online. 5G is up to 100 times faster than 4G and removes lag from the equation. China switched on a national 5G network earlier this month and the majority of major economies plan to move to full roll out in 2020. Samsung and some Chinese companies are producing 5G phones but the number of models on offer will also significantly increase in 2020.

 

 

Eoin's personal portfolio: precious metals long initiated

 

Eoin Treacy's view

One of the most commonly asked questions by subscribers is how to find details of my open traders. In an effort to make it easier I will simply repost the latest summary daily until there is a change. I'll change the title to the date of publication of new details so you will know when the information was provided.

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