FirstFT: JPMorgan plans to add India to bond index

This article is an on-site version of our FirstFT newsletter. Subscribe to our Asia, Europe/Africa Where Americas edition to send it straight to your inbox every morning of the week

Hello. JPMorgan is probing big investors to add India to its widely followed emerging markets bond index, setting the stage for billions of dollars to flow into the country’s domestic fixed income market as it opens up to capital strangers.

Wall Street bank is seeking investors’ views on whether to make a large chunk of India’s Rs$1 billion-dominated bond market eligible for inclusion in the GBI-EM Global Index Diversified local currency debt, according to two people familiar with the matter.

A move to add Indian debt to one of the bank’s flagship indices would mark an inflection point for global investors’ exposure to the world’s fifth-largest economy and the culmination of years of talks between the Indian government, index providers and investors.

Indian government bonds rallied on Friday after the Financial Times announced the consultation, with the country’s 10-year debt yield falling 0.07 percentage points to 7.22%.

Goldman Sachs estimated that including India’s sovereign bonds in the influential benchmark would generate around $30 billion in inflows from passive investors.

JPMorgan’s consultation is expected to be completed by next month, with the announcement of a formal proposal expected in October, according to people familiar with the matter. The bank declined to comment on the potential inclusion, as did India’s finance ministry.

Thanks for reading FirstFT Americas. Enjoy the weekend – Gordon

1. Joe Biden walks out swinging In an impassioned and combative speech in Maryland last night, the president condemned Republicans for promoting “semi-fascism”. His tone reflected a newfound drive to target Republicans, and Donald Trump in particular, amid growing optimism in Democratic circles that November’s midterm elections could turn out better for the party than expected. feared just a few months ago.

2. Surge in US-listed Chinese stocks New York-listed shares in major Chinese technology groups rose yesterday as the United States and China come close to resolving a longstanding standoff over audits of Chinese companies. Certificates of deposit linked to shares of tech giant Alibaba jumped 8% while e-commerce site JD.com rose 11%.

3. The bombings disconnect the Ukrainian nuclear power plant from the electricity grid Fears of a catastrophic accident at one of Europe’s biggest nuclear power plants intensified yesterday after bombings caused the first temporary cutoff of Ukraine’s Zaporizhzhia reactor complex from the country’s power grid. Kyiv and Moscow accused each other of artillery strikes near the plant.

4. Saudi Arabia sends a message to Biden on oil Riyadh this week warned it could lead OPEC+ in cutting oil production, a message aimed at wayward traders and US President Joe Biden’s administration as it seeks to revive a nuclear deal with Iran, which has stoked concerns in the kingdom of Iranian oil returning to the market and driving down prices.

5. The Taiwanese president welcomes a US senator Tsai Ing-wen told Marsha Blackburn recent American visitors have strengthened the island’s resolve to defend itself, with the Tennessee senator becoming the latest to defy China’s bid to dissuade foreigners from engaging with Taipei.

  • Go further: The US has “no good options” on Taiwan, raising big questions about what it will do next.

Did you follow the news this week? Take our quiz.

The coming days

All eyes on the top of Jackson Hole Global stocks rose ahead of Jay Powell’s speech at the Jackson Hole Economics Symposium later in the day and the dollar rose. But futures trading suggests stocks will open slightly lower on Wall Street later after making gains yesterday.

Economic data Powell’s speech comes on the day the Fed’s favorite inflation gauge – the core personal consumption expenditure price index – is updated. The base figure is expected to have risen 0.3% in July, according to economists polled by Refinitiv, but the annual figure is expected to have fallen slightly to 4.7%. The University of Michigan also updates its consumer confidence index.

Search Mar-a-Lago The US Department of Justice has until noon Eastern Time today to release a redacted version of the affidavit that led to the search of Donald Trump’s Florida residence. A U.S. federal judge yesterday ordered the Justice Department to unseal the affidavit, which was used to obtain a search warrant that led FBI agents to raid the former president’s home at the Mar- a-Lago in Palm Beach looking for sensitive government documents.

Join the FT in partnership with Millicom at Latin America Information Dinner on September 22 to hear Guatemalan President Alejandro Giammattei and others discuss how ambitious resets of policy frameworks in Central America and the rest of the region can foster new investment.

What else we read

Capital Group: the slow giant in dangerous waters In a sea full of predators, Capital Group is like a whale shark: slow, friendly and huge. The fund manager’s collaborative culture, low fees and dedication to active stock picking make it a well-respected outlier in the increasingly cutthroat industry.

Scientists Create ‘Synthetic’ Mouse Embryos Embryos that contain growing brains, beating hearts, and the precursors to all the other organs in place were made without the use of sperm or eggs. Researchers from the University of Cambridge and the California Institute of Technology said they were the most complete mammalian embryos made from stem cells to date.

Why Filmmakers Can’t Resist Tolkien’s Fantasy World Stanley Kubrick considered The Lord of the Rings as “unfilmable”. The story of the spread of the epic tale on screen, on the radio, on stage or in games is not that of dwarves, orcs, elves, balrogs, wizards or hobbits, but that of legal disputes, troubled adaptations and multi-million dollar acquisitions, writes Stephen Bush.

How ‘The Simpsons’ Became a Shared Language Whereas The simpsons is an entertaining TV show – perhaps one of the greatest TV shows of all time – it’s so much more than that, argues philosopher Tom Whyman. The simpsons is also a language that binds a generation.

Germany’s cheap transport system reaches buffers Germany’s Affordable Ticket Experiment – a €9 per month ticket for local trains and public transport – was introduced to soften the blow of the cost of living crisis and tackle climate change by encouraging people to abandon the car. It proved extremely popular – which made it even more difficult to pull it off.

  • Opinion: “It’s the uncertainty, not the delay, that holds you back at the end”: Tim Harford reflects on the horrors of modern train travel.

Travel

The Aman Hotel Group is best known for its sublime minimalist retreats in exotic destinations. But in recent years it has started opening locations in urban centers and this month launched Aman New York, the city’s newest and most expensive hotel.

The exterior of Aman New York, showing some of the ornate gold leaf reliefs

The exterior of Aman New York, showing some of the ornate gold leaf reliefs © Robert Rieger

troubled times — Document the changes in business and the economy between Covid and conflict. Register here

Work – Discover the big ideas shaping today’s workplaces with a weekly newsletter from Work & Careers Editor-in-Chief Isabel Berwick. Register here

About Emilie Brandow

Check Also

Trade finance software market is booming globally: Finastra, Aite Matrix, Newgen Software

Latest research study published by HTF MI “Global Trade Finance Software Market” with 100+ pages …