Corona Capital: Europe’s recovery, Indian selloffs

Indian Railway Catering and Tourism

21/08/2020 10:49

(The authors are Reuters Breakingviews columnists.  The
opinions expressed are their own.)
    By Breakingviews columnists
    LONDON/MUMBAI, Aug 21 (Reuters Breakingviews) - Corona
Capital is a column updated throughout the day by Breakingviews
columnists around the world with short, sharp pandemic-related
insights.

    LATEST
    - Europe’s recovery
    - India’s asset sales

    SKETCHY REBOUND. The European economy is embarking on a
patchy recovery. Purchasing managers’ surveys from Germany
 urn:newsml:reuters.com:*:nZRN000LVV and France  urn:newsml:reuters.com:*:nZRN000LVR were weaker than expected
in August, data showed on Friday. And while the comparable UK
Purchasing Managers’ Index rose to its highest level in nearly
seven years, jobs were cut at a faster pace across services and
manufacturing  urn:newsml:reuters.com:*:nZRN000LW7.
    The fragile recovery and grim outlook for employment bodes
ill for consumption. True, UK retail sales volumes jumped in
July to surpass pre-pandemic levels, official data showed https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/july2020.
 But the figures were flattered by the performance of
supermarkets and other food shops, given that clothing sales
remained nearly 26% lower than in February. European governments
will need to spend more to help hard-hit sectors and those
joining dole queues. British debt has topped https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/july2020
 2 trillion pounds for the first time and will reach new highs
in the coming year. It won’t be the only country to break such
records. (By Swaha Pattanaik)

    TOUGH TRACK. Indian Railways is barely plying the tracks
because of the pandemic. But New Delhi doesn’t see that as a
barrier to raising funds by selling off https://www.livemint.com/news/india/central-govt-invites-bids-from-merchant-bankers-to-manage-stake-sale-in-irctc-11597935863146.html
 a stake in a unit that has exclusive rights to provide it with
catering services and online bookings. Shares in the $2.9
billion Indian Railway Catering and Tourism Corporation
 INIR.NS  are trading well below a February peak but above the
price at which it listed last year. A successful sale will
deliver to New Delhi a tiny portion of the 2.1 trillion rupees
($28 billion) it aims to pocket this financial year from asset
sales and underscore its zeal for reform  urn:newsml:reuters.com:*:nL4N2D00DU. Other
high-profile bits on the block include Air India. But the
fortunes of that also depend on the free movement of people.
Deadlines for bids for the carrier have been pushed back
multiple times. Until Indians can travel easily, proceeds might
not be first class. (By Una Galani)
    
        
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 (Editing by Liam Proud and Oliver Taslic)