Morning Buzz: Household savings fall to five-decade low, pension outgo may rise to Rs 17 lakh crore, and more

Falling or stagnant household incomes were the main reason for increasing borrowings. Image: Shutterstock

Household savings fall to nearly 50-year low

Financial savings of households fell to a five-decade low of 5.1 percent of GDP in FY23, down from 7.2 percent in FY22. The annual financial liabilities rose to 5.8 percent of GDP compared to 3.8 percent in FY22 pointing to increasing reliance on loans for short-term consumption. Falling or stagnant household incomes were the main reason for increasing borrowings.  
(Mint, Financial Express)  

Pension outgo may rise to Rs 17 lakh crore under old pension scheme  

The decision by some states to revert to the old pension scheme may put a cumulative burden of 4.5 times that of the national pension scheme. By 2050, the outgo under the old pension scheme could rise to Rs 17 lakh crore as opposed to Rs 4 lakh crore under the national pension scheme. A few states like Jharkhand, Punjab, Himachal Pradesh and Chattisgarh have announced a move back to the old pension scheme.  
(Indian Express)

Total plans 50:50 JV with Adani Green  

Total Energies is close to investing $300 million in a 50:50 JV with Adani Green Energy to house 1 GW of renewable energy projects. The decision will be announced in a few days. Total Energies holds a 19.75 percent stake in Adani Green. The promoters hold 56.27 percent. In July, Adani Green said it would raise Rs 12,300 crore after selling a stake to institutional investors.  
(Economic Times)

US Bond yield rise to highest level since 2007

The US 5- and 10-year bond yields rose to the highest level since 2007 after the continued rise in global oil prices as well as higher than anticipated inflation data in Canada. Markets are gradually coming to the realisation that rates are not going back to pre-pandemic levels. Investors are now watching the Fed quarterly rate projections to be released on Wednesday.  
(Economic Times)