RUSSIA: INDIA: Modi And Putin Tout Closer Economic Ties
Reuters reporting comments from Russian President Vladimir Putin on day two of his first trip to India since the start of the Ukraine war. The trip appears primarily designed to bolster Russia’s decades-long strategic relationship with India amid efforts by the Trump administration to curb Russia's oil exports to India and a long-standing strategy by successive US administrations to bring India closer to the West.
- Putin described talks with Indian colleagues and a meeting with Prime Minister Narendra Modi as “useful,” adding that “numerous agreements [were] signed today aimed [at] strengthening cooperation with India.” Putin said, “Russia is ready to provide uninterrupted fuel supplies to India.”
- AFP noted earlier that agreements are expected to cover defence, technology, aircraft and space exploration. Putin added that his visit, and the agreements signed, “will further enhance [Russia's] strategic partnership with India.”
- Reuters reports that Modi said after talks with Putin earlier, “India and Russia have agreed on an economic co-operation programme to expand and diversify their trade until 2030," adding that the two sides are trying for an “early conclusion” of a free trade agreement between India and the Eurasian Economic Union, which could open markets for Indian pharmaceutical and agricultural exports.
- ABC News notes, “Bilateral trade between the two countries stood at $68.7 billion in the last fiscal year ended March, and the aim is to boost it to $100 billion by 2030. The trade is heavily skewed in favor of Russia with deep deficits for India, which it is looking to bridge by pushing exports.”
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUROZONE DATA: Oct PMIs: Growth Momentum Improving Everywhere Except France
The October PMI round signalled a positive start to Eurozone growth momentum in Q4. With Q3 flash GDP having already printed above the ECB's September projections, the case for unchanged policy rates going forward is growing. However, some ECB officials remain cognisant of downside risks heading into 2026.
Following upward revisions in France and Germany, and stronger-than-expected readings in Italy and Spain, the Eurozone services PMI was revised up to 53.0 (vs 52.6 flash, 51.3 prior). With the manufacturing PMI confirming flash estimates at 50.0 on Monday, this left the composite reading at a 29-month high of 52.5.
At a country level, France's underperformance amid ongoing political uncertainty remains stark.
Summary from the final October composite PMI release:
- "The euro area economy saw its strongest expansion since May 2023 during October, with growth accelerating and tentatively pointing to a breakout from the subdued trend seen in the first nine months of the year. This sharper upturn was supported by improved demand conditions as new business rose at the steepest pace for two-and-a-half years. Employment growth meanwhile quickened to a 16-month high, despite a slight weakening of businesses’ year-ahead activity expectations".
- "As for prices, input cost inflation eased for a second month running, taking it further below its historic average. Euro area companies were more aggressive with their price setting, however, lifting their charges to the greatest extent in seven months"
UK DATA: Upward Revision To Oct Services PMI, But Fall In Employment Still Noted
Momentum in UK services activity remains positive, though October’s 52.3 final read remains below August’s 54.2. While stronger new orders supported the aggregate index, another reduction in employment numbers and easing output charge inflation will be noted by the BOE.
Key notes from the UK services PMI release:
- “Survey respondents cited a gradual turnaround in new work and sales opportunities, despite elevated business uncertainty and delayed decision-making among clients”
- “Anecdotal evidence suggested that a rebound in order books and successful new product launches had helped to boost business activity in October.”…“Stronger order books appeared to reflect rising domestic demand, with service providers noting increased marketing spending and greater sales enquiries. In contrast, new work from abroad decreased for the second month running”
- “October data pointed to only a slight reduction in employment numbers across the service economy” … “Where a reduction in headcount was reported, this mainly reflected efforts to offset higher payroll costs through the non-replacement of voluntary leavers.”
- “Input cost inflation remained historically strong , but moderated for the second month running to its lowest since November 2024. Higher salary payments were commonly reported”
- “ Average prices charged by service providers meanwhile increased at the slowest pace since June,”
MNI: UK OCT FINAL SERV PMI 52.3 (51.1 FLASH, 50.8 SEP)
- MNI: UK OCT FINAL SERV PMI 52.3 (51.1 FLASH, 50.8 SEP)
- UK OCT FINAL COMPOSITE PMI 52.2 (51.1 FLASH, 50.1 SEP)
