Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand. He emphasised that the positives currently outweigh the negatives, highlighting that the economy is on a stable growth path as detailed in a report by CNBC TV18.

In a recent interview with CNBC TV18 in Washington DC, Das acknowledged some slowdown in specific sectors but asserted that the agricultural sector is thriving this year, largely due to favorable monsoon conditions. He expressed confidence in the upcoming rabi crop and noted a revival in rural demand, signalling a positive shift for the economy.

Das pointed out that several key economic indicators are showing strong growth, further supporting the notion that the economy is performing well. However, he also stressed the importance of being aware of external risks, including geopolitical tensions, geo-economic fragmentation, and severe weather events that could affect external demand. He stated, “By and large, India’s economic growth has always been sustained by domestic demand and investment, both of which remain robust.”

Growth projections of RBI<o:p></o:p>

Looking ahead, the RBI projects India’s economy to grow by 7.2 per cent in FY25, with quarterly growth rates anticipated at 7 per cent for Q2, 7.4 per cent for Q3, and 7.4 per cent for Q4. Das noted a favourable balance between growth and inflation, which allowed the RBI to adopt a neutral policy stance in its recent monetary meeting. This flexibility will enable the RBI to closely monitor incoming data and adjust its policies as needed.

Das highlighted that inflation appears to be moderating, with further reductions expected as the year progresses. However, he cautioned that risks to the inflation outlook remain, stressing the need for careful consideration before making any premature policy changes.

Regarding interest rates, Das indicated that any potential cuts would hinge on forthcoming data and inflation trends. He mentioned that household inflation expectations have been gradually decreasing over the past two years, indicating a shift in sentiment.

Views on the Banking sector<o:p></o:p>

On banking sector stability, Das dismissed concerns of systemic risks, noting that both the banking and non-banking finance sectors remain robust. However, he acknowledged issues in the microfinance sector, where the RBI has found that some non-banking financial companies (NBFCs) were charging excessively high interest rates, prompting regulatory action.

The RBI has recently barred four NBFCs from issuing loans due to exorbitant practices, underlining its commitment to consumer protection.

Finally, Das mentioned ongoing discussions about the liquidity coverage ratio (LCR) guidelines in light of the growing prevalence of digital banking. He indicated that the RBI is considering tightening LCR norms to mitigate risks associated with rapid withdrawals, reflecting the evolving landscape of banking in the digital age. Feedback from the banking sector will be taken into account as these measures are developed.

Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand.

Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand. He emphasised that the positives currently outweigh the negatives, highlighting that the economy is on a stable growth path as detailed in a report by CNBC TV18. In a recent interview with CNBC TV18 in Washington DC, Das acknowledged some slowdown in specific sectors but asserted that the agricultural sector is thriving this year, largely due to favorable monsoon conditions. He expressed confidence in the upcoming rabi crop and noted a revival in rural demand, signalling a positive shift for the economy. Das pointed out that several key economic indicators are showing strong growth, further supporting the notion that the economy is performing well. However, he also stressed the importance of being aware of external risks, including geopolitical tensions, geo-economic fragmentation, and severe weather events that could affect external demand. He stated, “By and large, India’s economic growth has always been sustained by domestic demand and investment, both of which remain robust.” Growth projections of RBI Looking ahead, the RBI projects India’s economy to grow by 7.2 per cent in FY25, with quarterly growth rates anticipated at 7 per cent for Q2, 7.4 per cent for Q3, and 7.4 per cent for Q4. Das noted a favourable balance between growth and inflation, which allowed the RBI to adopt a neutral policy stance in its recent monetary meeting. This flexibility will enable the RBI to closely monitor incoming data and adjust its policies as needed. Das highlighted that inflation appears to be moderating, with further reductions expected as the year progresses. However, he cautioned that risks to the inflation outlook remain, stressing the need for careful consideration before making any premature policy changes. Regarding interest rates, Das indicated that any potential cuts would hinge on forthcoming data and inflation trends. He mentioned that household inflation expectations have been gradually decreasing over the past two years, indicating a shift in sentiment. Views on the Banking sector On banking sector stability, Das dismissed concerns of systemic risks, noting that both the banking and non-banking finance sectors remain robust. However, he acknowledged issues in the microfinance sector, where the RBI has found that some non-banking financial companies (NBFCs) were charging excessively high interest rates, prompting regulatory action. The RBI has recently barred four NBFCs from issuing loans due to exorbitant practices, underlining its commitment to consumer protection. Finally, Das mentioned ongoing discussions about the liquidity coverage ratio (LCR) guidelines in light of the growing prevalence of digital banking. He indicated that the RBI is considering tightening LCR norms to mitigate risks associated with rapid withdrawals, reflecting the evolving landscape of banking in the digital age. Feedback from the banking sector will be taken into account as these measures are developed.

Optimism Prevails: RBI Governor Shaktikanta Das on India's economic outlook

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities.

Ben Tsocanos, aerospace director at S&amp;P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history.

Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million.

Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further.

Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027.

Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company.

Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil.

Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&amp;P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations.

As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. 

The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters. The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities. Ben Tsocanos, aerospace director at S&P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history. Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million. Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further. Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027. Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company. Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil. Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations. As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing eyes $22 billion stock offering to strengthen finances amid ongoing strike

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC.

The CNBC report further explained that, the price of bitcoin was last higher by about 3 per cent at $69,925.00, according to Coin Metrics. Further, at about 6:00 p.m. Eastern on October 28, it touched $70,207.02 and has been oscillating since.

Stocks tied to the price of the cryptocurrency were little changed in extended trading. In regular trading on October 28, crypto exchange platform Coinbase rallied by 5 per cent and bitcoin proxy MicroStrategy soared by nearly 9 per cent.

The last time bitcoin touched $70,000 was in June of this year. It has tested that level several times this year, after hitting a record of $73,797.68 in March. Earlier forays above $70,000 have been limited to mere blips.

Optimism is building towards the US elections<o:p></o:p>

Optimism is building ahead of the US presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000.

Still, it may be poised for a breakout with stocks hitting new highs this month. As there are major events to follow in the first week of November, election day on November 5 and another Federal Reserve rate policy decision on November 7.

Donald Trump has presented himself as pro-crypto<o:p></o:p>

Republican nominee and former president Donald Trump has been courting the crypto industry this year and presented himself as the pro-crypto candidate. Whereas democratic nominee and Vice President Kamala Harris have been more muted on crypto, and the industry is split on how her potential presidency could affect crypto companies.

The outcome is widely viewed as a key catalyst for future price action in the bitcoin, but investors have watching and waiting as the election approaches. Last week, bitcoin surged toward $70,000, but it ultimately fell short of the threshold.

Investors are also watching for earnings from Coinbase and MicroStrategy, both slated for October 30. On October 28, MicroStrategy, which trades as a high-beta play on the price of bitcoin, registered its highest close since March 15, 2000. MicroStrategy is looking to extend its seven-week win streak, its longest since rally since an 11-week streak that ended in late October 2010.

Market participants and investors are going to closely watch these developments in bitcoin and take informed investment decisions based on the outcome of the US elections. 

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC.

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC. The CNBC report further explained that, the price of bitcoin was last higher by about 3 per cent at $69,925.00, according to Coin Metrics. Further, at about 6:00 p.m. Eastern on October 28, it touched $70,207.02 and has been oscillating since. Stocks tied to the price of the cryptocurrency were little changed in extended trading. In regular trading on October 28, crypto exchange platform Coinbase rallied by 5 per cent and bitcoin proxy MicroStrategy soared by nearly 9 per cent. The last time bitcoin touched $70,000 was in June of this year. It has tested that level several times this year, after hitting a record of $73,797.68 in March. Earlier forays above $70,000 have been limited to mere blips. Optimism is building towards the US elections Optimism is building ahead of the US presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000. Still, it may be poised for a breakout with stocks hitting new highs this month. As there are major events to follow in the first week of November, election day on November 5 and another Federal Reserve rate policy decision on November 7. Donald Trump has presented himself as pro-crypto Republican nominee and former president Donald Trump has been courting the crypto industry this year and presented himself as the pro-crypto candidate. Whereas democratic nominee and Vice President Kamala Harris have been more muted on crypto, and the industry is split on how her potential presidency could affect crypto companies. The outcome is widely viewed as a key catalyst for future price action in the bitcoin, but investors have watching and waiting as the election approaches. Last week, bitcoin surged toward $70,000, but it ultimately fell short of the threshold. Investors are also watching for earnings from Coinbase and MicroStrategy, both slated for October 30. On October 28, MicroStrategy, which trades as a high-beta play on the price of bitcoin, registered its highest close since March 15, 2000. MicroStrategy is looking to extend its seven-week win streak, its longest since rally since an 11-week streak that ended in late October 2010. Market participants and investors are going to closely watch these developments in bitcoin and take informed investment decisions based on the outcome of the US elections.

Building up to the US election, Bitcoin briefly tops $70,000 for the first time since June

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies.

Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks.

Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security."

He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities.

These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations.

In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions.

The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security.

As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies. Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks. Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security." He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities. These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations. In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions. The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security. As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

US implements new investment restrictions on AI and semiconductors in China

In a landmark ruling, Google has been ordered to pay £2.4 billion (approximately Rs 26,172 crore) following a prolonged 15-year legal battle with a UK couple, Shivaun Raff and her husband, Adam.

The European Court of Justice upheld the European Commission's original 2017 fine, which accused Google of abusing its market dominance in the comparison shopping sector. The tech giant expressed disappointment over the court's decision according to a detailed report by BBC.

How it all started?<o:p></o:p>

Shivaun and Adam Raff co-founded their price comparison website, Foundem, in 2006 after leaving secure jobs to pursue their entrepreneurial dreams. Their platform aimed to help consumers find the best prices across various online retailers.

However, from the moment they launched, they noticed a significant drop in their visibility on Google search results, particularly for terms like ‘price comparison’ and ‘comparison shopping’. This decline severely limited their audience reach and revenue potential. In a way Google abused its market dominance.

"We were monitoring our rankings, and then we saw them all plummet almost immediately," Adam recalled in a recent interview. Initially, the couple believed their site's poor performance was an unfortunate mistake, a misidentification by Google's spam filters. "We thought this was collateral damage," Shivaun stated, hoping that with enough communication, the issue could be resolved. 

Despite multiple attempts to engage with Google and rectify their search ranking, the couple received no response for over two years. By late 2008, they suspected something more complicated was at play when their site began experiencing unusually high traffic, leading them to consider the possibility of a cyber-attack. However, it turned out to be a surge in interest from users, ultimately resulting in Foundem being recognized as the best price comparison site in the UK by Channel 5’s The Gadget Show.

Frustrated by Google’s lack of response and the detrimental impact on their business, the Raffs turned to regulatory bodies in the UK, the US, and Brussels for assistance. Unfortunately, by 2016, they were forced to shut down Foundem, though they have continued their fight against Google through civil damages claims, with a court date set for 2026.

Biggest penalty ever imposed<o:p></o:p>

The fine imposed on Google in 2017 was the largest ever levied by the European Commission until it was overtaken by a subsequent £4.3 billion fine for different violations.

Google has since claimed that it has made necessary adjustments to its business practices to comply with regulatory demands, stating that these changes have benefited over 800 comparison shopping services.

A spokesperson for Google said that the CJEU judgement [in 2024] only relates to “how we showed product results from 2008-2017.”

He further stated according to the BBC report that, “The changes we made in 2017 to comply with the European Commission's Shopping decision have worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services. For this reason, we continue to strongly contest the claims made by Foundem and will do so when the case is considered by the courts,” the spokesperson added.

Hence, the outcome of this lengthy legal battle highlights the challenges small businesses face when competing against industry giants and underscores the importance of fair competition in the digital marketplace.

In a landmark ruling, Google has been ordered to pay £2.4 billion (approximately Rs 26,172 crore) following a prolonged 15-year legal battle with a UK couple, Shivaun Raff and her husband, Adam.

In a landmark ruling, Google has been ordered to pay £2.4 billion (approximately Rs 26,172 crore) following a prolonged 15-year legal battle with a UK couple, Shivaun Raff and her husband, Adam. The European Court of Justice upheld the European Commission's original 2017 fine, which accused Google of abusing its market dominance in the comparison shopping sector. The tech giant expressed disappointment over the court's decision according to a detailed report by BBC. How it all started? Shivaun and Adam Raff co-founded their price comparison website, Foundem, in 2006 after leaving secure jobs to pursue their entrepreneurial dreams. Their platform aimed to help consumers find the best prices across various online retailers. However, from the moment they launched, they noticed a significant drop in their visibility on Google search results, particularly for terms like ‘price comparison’ and ‘comparison shopping’. This decline severely limited their audience reach and revenue potential. In a way Google abused its market dominance. "We were monitoring our rankings, and then we saw them all plummet almost immediately," Adam recalled in a recent interview. Initially, the couple believed their site's poor performance was an unfortunate mistake, a misidentification by Google's spam filters. "We thought this was collateral damage," Shivaun stated, hoping that with enough communication, the issue could be resolved. Despite multiple attempts to engage with Google and rectify their search ranking, the couple received no response for over two years. By late 2008, they suspected something more complicated was at play when their site began experiencing unusually high traffic, leading them to consider the possibility of a cyber-attack. However, it turned out to be a surge in interest from users, ultimately resulting in Foundem being recognized as the best price comparison site in the UK by Channel 5’s The Gadget Show. Frustrated by Google’s lack of response and the detrimental impact on their business, the Raffs turned to regulatory bodies in the UK, the US, and Brussels for assistance. Unfortunately, by 2016, they were forced to shut down Foundem, though they have continued their fight against Google through civil damages claims, with a court date set for 2026. Biggest penalty ever imposed The fine imposed on Google in 2017 was the largest ever levied by the European Commission until it was overtaken by a subsequent £4.3 billion fine for different violations. Google has since claimed that it has made necessary adjustments to its business practices to comply with regulatory demands, stating that these changes have benefited over 800 comparison shopping services. A spokesperson for Google said that the CJEU judgement [in 2024] only relates to “how we showed product results from 2008-2017.” He further stated according to the BBC report that, “The changes we made in 2017 to comply with the European Commission's Shopping decision have worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services. For this reason, we continue to strongly contest the claims made by Foundem and will do so when the case is considered by the courts,” the spokesperson added. Hence, the outcome of this lengthy legal battle highlights the challenges small businesses face when competing against industry giants and underscores the importance of fair competition in the digital marketplace.

Google hit with Rs 26,172 crore fine after 15-year legal battle with UK couple

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC.

He further stated that “Trade controversy sees never winners, only losers,” Lindner told CNBC in an exclusive conversation on the sidelines of the International Monetary Fund’s annual meeting in Washington, DC.

What US trade policy could look like if Donald Trump were elected as president is a key issue, Lindner suggested. “In that case we need diplomatic efforts to convince whoever enters the White House that it’s not in the best interest of the US to have a trade conflict with the European Union. We would have to consider retaliation,” he said. Lindner belongs to the pro-business Free Democratic Party which is currently in coalition with Chancellor Olaf Scholz’s Social Democratic Party.

The US′ problem with trading lies with China rather than the EU, Lindner said, adding that the EU “should not become a negative side effect” of controversy between the US and China.

Trump has floated the idea of tariffs<o:p></o:p>

Trump has floated the idea that, if he were elected, blanket tariffs of 10 per cent to 20 per cent could be imposed on almost all imports, no matter where they came from.

If such a 20 per cent tariff were implemented by the US, the EU’s and Germany’s gross domestic product would fall in the coming years, Reuters reported on October 24 citing a study by German economic institute IW. Trade is one of the main pillars of the German economy, suggesting heightened tensions, uncertainty and tariffs would hit the country harder than others.

Earlier this month, the German statistics office, Destatis, said that the US′ importance as a trading partner for Germany has been growing. The agency said that since 2021, the US had been the second-most important trade partner for Germany behind China, but in the first half of 2024, foreign trade turnover with the US was higher than that with China. In 2023, around 9.9 per cent of German exports went to the US, according to Destatis.

Trade tensions between the US and China, and the EU and China, have been rising throughout the year. Both the US and EU have implemented higher tariffs and on some goods imported from China, citing unfair trade practices.

China in turn has also announced higher temporary tariffs on some imports from the EU. Several probes and investigations into one another’s competition, subsidy, and other practices are also ongoing as the tit-for-tat measures continue.

After the EU voted to impose tariffs on Chinese-made electric vehicles, Germany’s Lindner urged the union not to start a trade war. Germany had previously advocated against higher duties, raising concerns about what they could mean for the country’s struggling carmakers.

Earlier in the week, Gita Gopinath, deputy managing director of the IMF, told CNBC that an escalation of trade and tariffs tensions between the U.S. and China would be “costly for everybody.”

Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the relationships of top economies throughout the globe evolve.

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC.

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC. He further stated that “Trade controversy sees never winners, only losers,” Lindner told CNBC in an exclusive conversation on the sidelines of the International Monetary Fund’s annual meeting in Washington, DC. What US trade policy could look like if Donald Trump were elected as president is a key issue, Lindner suggested. “In that case we need diplomatic efforts to convince whoever enters the White House that it’s not in the best interest of the US to have a trade conflict with the European Union. We would have to consider retaliation,” he said. Lindner belongs to the pro-business Free Democratic Party which is currently in coalition with Chancellor Olaf Scholz’s Social Democratic Party. The US′ problem with trading lies with China rather than the EU, Lindner said, adding that the EU “should not become a negative side effect” of controversy between the US and China. Trump has floated the idea of tariffs Trump has floated the idea that, if he were elected, blanket tariffs of 10 per cent to 20 per cent could be imposed on almost all imports, no matter where they came from. If such a 20 per cent tariff were implemented by the US, the EU’s and Germany’s gross domestic product would fall in the coming years, Reuters reported on October 24 citing a study by German economic institute IW. Trade is one of the main pillars of the German economy, suggesting heightened tensions, uncertainty and tariffs would hit the country harder than others. Earlier this month, the German statistics office, Destatis, said that the US′ importance as a trading partner for Germany has been growing. The agency said that since 2021, the US had been the second-most important trade partner for Germany behind China, but in the first half of 2024, foreign trade turnover with the US was higher than that with China. In 2023, around 9.9 per cent of German exports went to the US, according to Destatis. Trade tensions between the US and China, and the EU and China, have been rising throughout the year. Both the US and EU have implemented higher tariffs and on some goods imported from China, citing unfair trade practices. China in turn has also announced higher temporary tariffs on some imports from the EU. Several probes and investigations into one another’s competition, subsidy, and other practices are also ongoing as the tit-for-tat measures continue. After the EU voted to impose tariffs on Chinese-made electric vehicles, Germany’s Lindner urged the union not to start a trade war. Germany had previously advocated against higher duties, raising concerns about what they could mean for the country’s struggling carmakers. Earlier in the week, Gita Gopinath, deputy managing director of the IMF, told CNBC that an escalation of trade and tariffs tensions between the U.S. and China would be “costly for everybody.” Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the relationships of top economies throughout the globe evolve.

German Finance Minister issues warning over potential US trade war

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet.

Transaction to include shares and debt<o:p></o:p>

The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk.

Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show.

Boeing needs capital infusion to maintain an investment-grade rating<o:p></o:p>

Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year.

Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner.

Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11.

Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion.<o:p></o:p>

The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.”<o:p></o:p>

The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year.

Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds.

Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.<o:p></o:p>

<o:p>&nbsp;</o:p>

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg. The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet. Transaction to include shares and debt The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk. Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show. Boeing needs capital infusion to maintain an investment-grade rating Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year. Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner. Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11. Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion. The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.” The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year. Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds. Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.

Boeing aims for capital boost exceeding $15 billion beginning Monday

India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg.

A steady influx of foreign capital has positioned the nation’s bonds among top performers in developing markets this year, while the country’s stock market hit a record high last month, buoyed by robust domestic liquidity, the Bloomberg report detailed further. Further, India’s appeal is driven by a blend of structural factors: stable political ties with both the US and Russia, capital controls that curb hot money flows, and a currency that’s less impacted by big dollar moves than emerging market peers.

India’s divergence from global markets was evident last week when its sovereign bonds remained relatively steady despite a global selloff in US Treasuries. The nation has become a key emerging market bet for abrdn plc., particularly ahead of the US presidential election on Nov. 5, as hedge funds brace for a pickup in global volatility.

“India’s local bond market is relatively insulated from the volatility of global markets, remaining peaceful amidst the storm,” said Edward Ng, a bond fund manager at Nikko Asset Management Co. “Given the market’s low volatility, we remain comfortable staying invested in Indian bonds,” which may outperform in a strong-dollar environment, he said.

Currency is a key pillar of India’s resilience<o:p></o:p>

A key pillar of India’s resilience is its currency once one of Asia’s most volatile. For much of 2024, the rupee has been stuck between 82.8 and 84.1 per dollar due to the Reserve Bank of India’s interventions. Data compiled by Bloomberg show that the currency has only shaved 1 percentage point off the returns on Indian bonds this year, less than half the rate of currency-related losses on emerging market local-currency bonds overall.<o:p></o:p>

The rupee offers “minimal” volatility, Edwin Gutierrez, head of EM sovereign debt at Abrdn investments, said in an interview. “In this world of uncertainty, it ain’t a bad place to be.”

To be sure, India isn’t a hotspot for global equity investors right now. Signs of a slowdown in the country’s robust economic growth and a rebound in Chinese stocks have led to outflows of $8.8 billion from local shares in October, set for a record. While domestic investors’ purchases have evened out foreign outflows, the stock market is still on track for its worst month since March 2020.

The selloff hasn’t led to dramatic swings in the market. The 60-day historical volatility for the benchmark NSE Nifty 50 Index stands at 13.2 per cent, 1.95 percentage points lower than the S&amp;P 500 Index, indicating relative stability in comparison. UBS Global Wealth Management suggests the selloff is a buying opportunity as the soft patch in India’s growth and earnings appears transitory. The view followed Goldman Sachs Group Inc. tactically lowering local shares to neutral from overweight last week.<o:p></o:p>

India isn’t the only emerging economy offering a low correlation to global sentiment. Amundi SA and William Blair &amp; Company, LLC have said they favor frontier markets such as Nigeria and Kazakhstan, as potential buffers against US election-driven turmoil.

Yet these alternatives lack the liquidity and depth of India’s $1.3 trillion sovereign debt market and $5 trillion of stocks. The country is also expected to lure more offshore funds as part of its inclusion in JPMorgan’s bond index. BlackRock Inc. and Amundi SA have launched ETFs to ride that wave. India is due to join Bloomberg’s EM gauges in January.

“India local still screens fairly attractively to us,” compared with other assets globally like dollar-denominated debt, said Leonard Kwan, portfolio manager of T. Rowe Price Group Inc.’s dynamic EM bond strategy. “We’re overweight rather than in line with the benchmark” on India. Market participants and global investors are going to follow these developments carefully and make informed investment decisions with regard to India as an investment destination.

<o:p>&nbsp;</o:p>

India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg.

India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg. A steady influx of foreign capital has positioned the nation’s bonds among top performers in developing markets this year, while the country’s stock market hit a record high last month, buoyed by robust domestic liquidity, the Bloomberg report detailed further. Further, India’s appeal is driven by a blend of structural factors: stable political ties with both the US and Russia, capital controls that curb hot money flows, and a currency that’s less impacted by big dollar moves than emerging market peers. India’s divergence from global markets was evident last week when its sovereign bonds remained relatively steady despite a global selloff in US Treasuries. The nation has become a key emerging market bet for abrdn plc., particularly ahead of the US presidential election on Nov. 5, as hedge funds brace for a pickup in global volatility. “India’s local bond market is relatively insulated from the volatility of global markets, remaining peaceful amidst the storm,” said Edward Ng, a bond fund manager at Nikko Asset Management Co. “Given the market’s low volatility, we remain comfortable staying invested in Indian bonds,” which may outperform in a strong-dollar environment, he said. Currency is a key pillar of India’s resilience A key pillar of India’s resilience is its currency once one of Asia’s most volatile. For much of 2024, the rupee has been stuck between 82.8 and 84.1 per dollar due to the Reserve Bank of India’s interventions. Data compiled by Bloomberg show that the currency has only shaved 1 percentage point off the returns on Indian bonds this year, less than half the rate of currency-related losses on emerging market local-currency bonds overall. The rupee offers “minimal” volatility, Edwin Gutierrez, head of EM sovereign debt at Abrdn investments, said in an interview. “In this world of uncertainty, it ain’t a bad place to be.” To be sure, India isn’t a hotspot for global equity investors right now. Signs of a slowdown in the country’s robust economic growth and a rebound in Chinese stocks have led to outflows of $8.8 billion from local shares in October, set for a record. While domestic investors’ purchases have evened out foreign outflows, the stock market is still on track for its worst month since March 2020. The selloff hasn’t led to dramatic swings in the market. The 60-day historical volatility for the benchmark NSE Nifty 50 Index stands at 13.2 per cent, 1.95 percentage points lower than the S&P 500 Index, indicating relative stability in comparison. UBS Global Wealth Management suggests the selloff is a buying opportunity as the soft patch in India’s growth and earnings appears transitory. The view followed Goldman Sachs Group Inc. tactically lowering local shares to neutral from overweight last week. India isn’t the only emerging economy offering a low correlation to global sentiment. Amundi SA and William Blair & Company, LLC have said they favor frontier markets such as Nigeria and Kazakhstan, as potential buffers against US election-driven turmoil. Yet these alternatives lack the liquidity and depth of India’s $1.3 trillion sovereign debt market and $5 trillion of stocks. The country is also expected to lure more offshore funds as part of its inclusion in JPMorgan’s bond index. BlackRock Inc. and Amundi SA have launched ETFs to ride that wave. India is due to join Bloomberg’s EM gauges in January. “India local still screens fairly attractively to us,” compared with other assets globally like dollar-denominated debt, said Leonard Kwan, portfolio manager of T. Rowe Price Group Inc.’s dynamic EM bond strategy. “We’re overweight rather than in line with the benchmark” on India. Market participants and global investors are going to follow these developments carefully and make informed investment decisions with regard to India as an investment destination.

Global investors turn to India amid rising financial market uncertainty

Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, according to two people familiar with the matter according to a detailed report by Reuters.

The Reuters report further stated that, Sophgo had ordered chips from TSMC that matched the one found on Huawei’s Ascend 910B, the people said. Huawei is restricted from buying the technology to protect US national security. Reuters could not determine how the chip ended up on the Huawei product.

Sophgo, which is affiliated with cryptocurrency mining equipment company Bitmain, did not respond to requests for comment. TSMC along with Huawei also declined to comment. The US Department of Commerce said it was aware of reports of potential violations of US export controls but could not comment on whether any investigation is ongoing.

How was the TSMC chip discovered on Huawei’s device?<o:p></o:p>

A different source told Reuters on Tuesday that tech research firm TechInsights discovered the TSMC chip on Huawei’s Ascend 910B when it took apart the multi-chip processor. Alerted to the finding, about two weeks ago, TSMC notified the US, the source said.

About the same time, TSMC also halted shipments to a client, Reuters reported on Wednesday, citing a Taiwan official who said the suspension came after the company discovered a chip it supplied to the client ended up in a Huawei product. TSMC alerted Taiwan and US authorities, and began a detailed investigation, the official said. But the official did not name the client, which the latest sources have identified as Sophgo. The Information tech news outlet also reported the name earlier on Saturday.

TSMC, the world’s largest contract chipmaker, said earlier this week it had not supplied Huawei since mid-September 2020, and that it “proactively communicated” with the Commerce Department regarding the matter.&nbsp; “We are not aware of TSMC being the subject of any investigation at this time,” the company statement said.

Shenzhen-based Huawei said in a statement on Tuesday it has not produced any chips via TSMC after the US imposed new export rules on the company in 2020. In 2020, the US expanded its authority to stop shipments of foreign-produced items to Huawei that are the direct product of US technology or software, including TSMC’s chips. Before then, TSMC supplied chips for Huawei’s Ascend series, sources told Reuters earlier this year. Its Ascend 910B, released in 2022, is viewed as the most advanced AI chip from a Chinese company.

In August, the Research Institute for Democracy, Society and Emergency Technology (DSET) in Taiwan reported that Bitmain, which it described as a leading Chinese integrated circuit (IC) design enterprise and supplier of cryptocurrency mining machines, was “aiming to challenge the AI chip market dominance of Nvidia and AMD.”

The DSET report described Sophgo as a Bitmain affiliate. According to a corporate registration database, Sophgo was co-founded by Micree Zhan, who also co-founded Bitmain. The company also communicated with the Federal Communications Commission in 2023 using a Bitmain email address and the name Xiamen Sophgo Technologies Ltd.

In 2021, prosecutors raided Bitmain’s operations in Taiwan and accused two Bitmain affiliates of illegally recruiting Taiwanese semiconductor engineers and illegally conducting R&amp;D, according to a statement by the New Taipei prosecutor's office.

Further, four Taiwanese defendants pleaded guilty and were given fines, according to the statement. Sophgo’s website says it has R&amp;D centers in more than 10 cities in China and other countries. Market participants and investors will follow these developments carefully and make informed investment decisions accordingly.

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, according to two people familiar with the matter according to a detailed report by Reuters.

Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, according to two people familiar with the matter according to a detailed report by Reuters. The Reuters report further stated that, Sophgo had ordered chips from TSMC that matched the one found on Huawei’s Ascend 910B, the people said. Huawei is restricted from buying the technology to protect US national security. Reuters could not determine how the chip ended up on the Huawei product. Sophgo, which is affiliated with cryptocurrency mining equipment company Bitmain, did not respond to requests for comment. TSMC along with Huawei also declined to comment. The US Department of Commerce said it was aware of reports of potential violations of US export controls but could not comment on whether any investigation is ongoing. How was the TSMC chip discovered on Huawei’s device? A different source told Reuters on Tuesday that tech research firm TechInsights discovered the TSMC chip on Huawei’s Ascend 910B when it took apart the multi-chip processor. Alerted to the finding, about two weeks ago, TSMC notified the US, the source said. About the same time, TSMC also halted shipments to a client, Reuters reported on Wednesday, citing a Taiwan official who said the suspension came after the company discovered a chip it supplied to the client ended up in a Huawei product. TSMC alerted Taiwan and US authorities, and began a detailed investigation, the official said. But the official did not name the client, which the latest sources have identified as Sophgo. The Information tech news outlet also reported the name earlier on Saturday. TSMC, the world’s largest contract chipmaker, said earlier this week it had not supplied Huawei since mid-September 2020, and that it “proactively communicated” with the Commerce Department regarding the matter. “We are not aware of TSMC being the subject of any investigation at this time,” the company statement said. Shenzhen-based Huawei said in a statement on Tuesday it has not produced any chips via TSMC after the US imposed new export rules on the company in 2020. In 2020, the US expanded its authority to stop shipments of foreign-produced items to Huawei that are the direct product of US technology or software, including TSMC’s chips. Before then, TSMC supplied chips for Huawei’s Ascend series, sources told Reuters earlier this year. Its Ascend 910B, released in 2022, is viewed as the most advanced AI chip from a Chinese company. In August, the Research Institute for Democracy, Society and Emergency Technology (DSET) in Taiwan reported that Bitmain, which it described as a leading Chinese integrated circuit (IC) design enterprise and supplier of cryptocurrency mining machines, was “aiming to challenge the AI chip market dominance of Nvidia and AMD.” The DSET report described Sophgo as a Bitmain affiliate. According to a corporate registration database, Sophgo was co-founded by Micree Zhan, who also co-founded Bitmain. The company also communicated with the Federal Communications Commission in 2023 using a Bitmain email address and the name Xiamen Sophgo Technologies Ltd. In 2021, prosecutors raided Bitmain’s operations in Taiwan and accused two Bitmain affiliates of illegally recruiting Taiwanese semiconductor engineers and illegally conducting R&D, according to a statement by the New Taipei prosecutor's office. Further, four Taiwanese defendants pleaded guilty and were given fines, according to the statement. Sophgo’s website says it has R&D centers in more than 10 cities in China and other countries. Market participants and investors will follow these developments carefully and make informed investment decisions accordingly.

TSMC suspended shipments to China firm after chip found on Huawei processor: Report

In a recent three-hour interview on Joe Rogan’s influential podcast, former US President Donald Trump reiterated his controversial proposal to eliminate income taxes in favour of tariffs as detailed in a report by CNBC. When Rogan directly questioned him about the feasibility of such a plan, Trump replied, “Yeah, sure, but why not?” 

Trump emphasised that his administration would prioritize protecting American jobs and industries, stating, “We will not allow the enemy to come in and take our jobs... unless they pay a big price. And the big price is tariffs.” This approach forms a core element of Trump’s economic strategy as he campaigns for the 2024 Republican presidential nomination.

Possibility of a $2 trillion loss over a decade<o:p></o:p>

Among his proposed tax reforms, Trump suggests removing income taxes on tips, overtime pay, and Social Security benefits, along with reinstating his 2017 tax cuts, which are set to expire in 2025. He has also mentioned potential income tax exemptions for specific groups, including fire-fighters, police officers, military personnel, and veterans. However, estimates indicate that eliminating income taxes on these categories could result in a staggering $2 trillion loss over a decade, according to the Tax Foundation, a nonpartisan think tank.

The proposal is a 20% tariff on imports

To counterbalance these projected losses, Trump proposes implementing a 20 per cent tariff on imports from all countries, with higher rates specifically for Chinese goods. Nonetheless, economic analysts expressed doubts about the viability of this strategy. Garrett Watson, a senior policy analyst at the Tax Foundation, pointed out that even the most aggressive tariff increases would not generate sufficient revenue to compensate for the substantial income tax losses. He noted that while tariffs might bring in approximately $3.8 trillion over ten years, individual income taxes are expected to yield around $33 trillion in the same timeframe.

The broader implication of Trump’s tax plan, which includes these tariffs, could lead to an expansion of the federal deficit by $3 trillion over the next decade, according to Watson. Additionally, the burden of tariffs would primarily fall on the US importers, potentially driving up production costs and consumer prices, an issue particularly concerning as inflation appears to be stabilising now due to the policies of the US Federal Reserve.

Vice President Kamala Harris has criticised Trump’s approach, characterizing it as a “sales tax on the American people” and arguing that it disproportionately affects low-income individuals. In response to these accusations, Trump defended his proposal on social media, claiming that tariffs are “paid for by the abusing country.” However, critics have pointed out that such taxes ultimately burden US consumers.

As Trump continues to advocate for his tariff-centric tax overhaul, the debate over its economic implications intensifies, with analysts and opponents urging caution about its potential impact on middle-class Americans.

<o:p>&nbsp;</o:p>

In a recent three-hour interview on Joe Rogan’s influential podcast, former US President Donald Trump reiterated his controversial proposal to eliminate income taxes in favour of tariffs as detailed in a report by CNBC.

In a recent three-hour interview on Joe Rogan’s influential podcast, former US President Donald Trump reiterated his controversial proposal to eliminate income taxes in favour of tariffs as detailed in a report by CNBC. When Rogan directly questioned him about the feasibility of such a plan, Trump replied, “Yeah, sure, but why not?” Trump emphasised that his administration would prioritize protecting American jobs and industries, stating, “We will not allow the enemy to come in and take our jobs... unless they pay a big price. And the big price is tariffs.” This approach forms a core element of Trump’s economic strategy as he campaigns for the 2024 Republican presidential nomination. Possibility of a $2 trillion loss over a decade Among his proposed tax reforms, Trump suggests removing income taxes on tips, overtime pay, and Social Security benefits, along with reinstating his 2017 tax cuts, which are set to expire in 2025. He has also mentioned potential income tax exemptions for specific groups, including fire-fighters, police officers, military personnel, and veterans. However, estimates indicate that eliminating income taxes on these categories could result in a staggering $2 trillion loss over a decade, according to the Tax Foundation, a nonpartisan think tank. The proposal is a 20% tariff on imports To counterbalance these projected losses, Trump proposes implementing a 20 per cent tariff on imports from all countries, with higher rates specifically for Chinese goods. Nonetheless, economic analysts expressed doubts about the viability of this strategy. Garrett Watson, a senior policy analyst at the Tax Foundation, pointed out that even the most aggressive tariff increases would not generate sufficient revenue to compensate for the substantial income tax losses. He noted that while tariffs might bring in approximately $3.8 trillion over ten years, individual income taxes are expected to yield around $33 trillion in the same timeframe. The broader implication of Trump’s tax plan, which includes these tariffs, could lead to an expansion of the federal deficit by $3 trillion over the next decade, according to Watson. Additionally, the burden of tariffs would primarily fall on the US importers, potentially driving up production costs and consumer prices, an issue particularly concerning as inflation appears to be stabilising now due to the policies of the US Federal Reserve. Vice President Kamala Harris has criticised Trump’s approach, characterizing it as a “sales tax on the American people” and arguing that it disproportionately affects low-income individuals. In response to these accusations, Trump defended his proposal on social media, claiming that tariffs are “paid for by the abusing country.” However, critics have pointed out that such taxes ultimately burden US consumers. As Trump continues to advocate for his tariff-centric tax overhaul, the debate over its economic implications intensifies, with analysts and opponents urging caution about its potential impact on middle-class Americans.

Donald Trump advocates tariff-driven tax overhaul

The Japanese Yen (JPY) has reached a new three-month low against the US Dollar (USD) following significant political changes in Japan. In Sunday’s national election, Japan's ruling coalition suffered a loss of its parliamentary majority for the first time in 15 years, sparking concerns about the future direction of the country’s monetary policy as detailed in a report by FXStreet.

The report further stated that, this uncertainty is believed to have influenced the Bank of Japan (BoJ) to adopt a cautious approach towards potential interest rate hikes, thereby exerting downward pressure on the JPY.

During the Asian trading session on Monday, the USD/JPY pair surged beyond the mid-153.00s as the US Dollar continued to exhibit a robust bullish sentiment. The recent influx of positive economic data from the United States bolstered expectations that the Federal Reserve (Fed) would implement more measured rate cuts in the upcoming months.

Additionally, rising speculation about Donald Trump’s potential return to the presidency, combined with concerns regarding increased deficit spending under his administration, contributed to a sell-off in US Treasuries. This scenario has helped the USD maintain its strength near its highest level since late July.

Liberal Democratic Party delivered a weak performance

On the domestic front, the election results indicated that Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) and its coalition partner, Komeito, secured only 215 out of 465 lower house seats, falling short of the 233 needed for a majority and down from the previous 279. This outcome has heightened doubts about the BoJ's capacity to continue raising interest rates, resulting in a bearish opening for the Yen.

Geopolitical tensions are also influencing market dynamics. Over the weekend, Israel conducted precise military strikes on targets in Iran in retaliation for recent missile attacks, although Iran has indicated a willingness to refrain from retaliatory action if a ceasefire agreement is reached regarding Gaza and Lebanon. This development has eased fears of a broader conflict in the region.

From a technical standpoint, the USD/JPY pair recently broke through the 200-day Simple Moving Average and surpassed the 61.8 per cent Fibonacci retracement level from a previous decline. This breakout has opened the door for potential gains beyond the 154.00 mark, with targets set towards 154.35-154.40. However, the Relative Strength Index (RSI) indicates that the pair may enter overbought territory, suggesting that traders should remain cautious and consider waiting for a consolidation phase or a pullback before seeking further opportunities. Immediate support is expected around 153.20-153.15, while a significant decline could see the pair test the 152.00 mark.

Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the US and Japan economies evolve and develop going ahead.

&nbsp;

The Japanese Yen (JPY) has reached a new three-month low against the US Dollar (USD) following significant political changes in Japan. In Sunday’s national election, Japan's ruling coalition suffered a loss of its parliamentary majority for the first time in 15 years, sparking concerns about the future direction of the country’s monetary policy as detailed in a report by FXStreet.

The Japanese Yen (JPY) has reached a new three-month low against the US Dollar (USD) following significant political changes in Japan. In Sunday’s national election, Japan's ruling coalition suffered a loss of its parliamentary majority for the first time in 15 years, sparking concerns about the future direction of the country’s monetary policy as detailed in a report by FXStreet. The report further stated that, this uncertainty is believed to have influenced the Bank of Japan (BoJ) to adopt a cautious approach towards potential interest rate hikes, thereby exerting downward pressure on the JPY. During the Asian trading session on Monday, the USD/JPY pair surged beyond the mid-153.00s as the US Dollar continued to exhibit a robust bullish sentiment. The recent influx of positive economic data from the United States bolstered expectations that the Federal Reserve (Fed) would implement more measured rate cuts in the upcoming months. Additionally, rising speculation about Donald Trump’s potential return to the presidency, combined with concerns regarding increased deficit spending under his administration, contributed to a sell-off in US Treasuries. This scenario has helped the USD maintain its strength near its highest level since late July. Liberal Democratic Party delivered a weak performance On the domestic front, the election results indicated that Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) and its coalition partner, Komeito, secured only 215 out of 465 lower house seats, falling short of the 233 needed for a majority and down from the previous 279. This outcome has heightened doubts about the BoJ's capacity to continue raising interest rates, resulting in a bearish opening for the Yen. Geopolitical tensions are also influencing market dynamics. Over the weekend, Israel conducted precise military strikes on targets in Iran in retaliation for recent missile attacks, although Iran has indicated a willingness to refrain from retaliatory action if a ceasefire agreement is reached regarding Gaza and Lebanon. This development has eased fears of a broader conflict in the region. From a technical standpoint, the USD/JPY pair recently broke through the 200-day Simple Moving Average and surpassed the 61.8 per cent Fibonacci retracement level from a previous decline. This breakout has opened the door for potential gains beyond the 154.00 mark, with targets set towards 154.35-154.40. However, the Relative Strength Index (RSI) indicates that the pair may enter overbought territory, suggesting that traders should remain cautious and consider waiting for a consolidation phase or a pullback before seeking further opportunities. Immediate support is expected around 153.20-153.15, while a significant decline could see the pair test the 152.00 mark. Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the US and Japan economies evolve and develop going ahead.

Yen dips to three-month low amid political shifts in Japan

India’s economy is poised for significant growth, with real Gross Domestic Product (GDP) projected to rise by 7.2 per cent in the fiscal year 2024-25, according to Union Finance Minister Nirmala Sitharaman as explained in a report by the Press Trust of India.

Addressing the 50th International Monetary and Financial Committee (IMFC) meeting on October 26, she highlighted the vital role of investment and consumption as fundamental drivers of this optimistic forecast the PTI report detailed further.

Sitharaman emphasised several factors contributing to this growth outlook. Healthy balance sheets among banks and corporations, a return to normalcy in supply chains, and an increase in business optimism create a favourable economic environment. Additionally, the government’s robust capital expenditure plans are expected to further bolster growth, with inflation projected at a manageable 4.5 per cent, the report detailed further.

The Finance Minister also discussed India’s commitment to inclusive growth and social empowerment, aligning with the nation’s long-term vision of becoming a high-income economy by 2047. She remarked, “As India pursues its long-term vision of becoming a high-income economy by 2047, it remains committed to global collaboration.” The government aims for USD one trillion in merchandise exports by 2030, focusing on improved logistics, trade reforms, and deeper integration into global value chains.

Sitharaman’s remarks also touched on India's fiscal discipline. The country has adhered to its budgeted gross fiscal deficit target of 5.6 per cent of GDP for 2023-24, which has been lowered to 4.9 per cent for the upcoming fiscal year. Central government revenue expenditure saw a healthy rise of 9.6 per cent during July-August, bouncing back from a 1.5 per cent contraction in the previous quarter.

Increase in female labour force participation<o:p></o:p>

Another significant achievement highlighted was the increase in female labour force participation, which surged from 23.3 per cent in 2017-18 to 37 per cent in 2022-23. This improvement is crucial for enhancing economic productivity and fostering social development.

Investment trends also signal positive momentum. The central government’s capital expenditure rose by an impressive 25.8 per cent in July-August 2024, following a challenging first quarter. This emphasis on infrastructure development is anticipated to attract more private investment, further stimulating economic activity.

Sitharaman also addressed an important milestone: the complete electrification of villages across India. She stated, “I don't think any village in India is unelectrified today,” reflecting on the substantial progress made since 2014 when many areas lacked basic electrification infrastructure, according to another report by ANI.

Therefore, Nirmala Sitharaman's confidence in India's economic trajectory and its appeal to global investors reinforces the nation’s position as a key player in the global economy. With strategic focus on investment, infrastructure, and inclusive growth, India is well on its way to achieving its ambitious economic goals for the future.

Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the Indian economy evolves and develops going ahead.

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India’s economy is poised for significant growth, with real Gross Domestic Product (GDP) projected to rise by 7.2 per cent in the fiscal year 2024-25, according to Union Finance Minister Nirmala Sitharaman as explained in a report by the Press Trust of India.

India’s economy is poised for significant growth, with real Gross Domestic Product (GDP) projected to rise by 7.2 per cent in the fiscal year 2024-25, according to Union Finance Minister Nirmala Sitharaman as explained in a report by the Press Trust of India. Addressing the 50th International Monetary and Financial Committee (IMFC) meeting on October 26, she highlighted the vital role of investment and consumption as fundamental drivers of this optimistic forecast the PTI report detailed further. Sitharaman emphasised several factors contributing to this growth outlook. Healthy balance sheets among banks and corporations, a return to normalcy in supply chains, and an increase in business optimism create a favourable economic environment. Additionally, the government’s robust capital expenditure plans are expected to further bolster growth, with inflation projected at a manageable 4.5 per cent, the report detailed further. The Finance Minister also discussed India’s commitment to inclusive growth and social empowerment, aligning with the nation’s long-term vision of becoming a high-income economy by 2047. She remarked, “As India pursues its long-term vision of becoming a high-income economy by 2047, it remains committed to global collaboration.” The government aims for USD one trillion in merchandise exports by 2030, focusing on improved logistics, trade reforms, and deeper integration into global value chains. Sitharaman’s remarks also touched on India's fiscal discipline. The country has adhered to its budgeted gross fiscal deficit target of 5.6 per cent of GDP for 2023-24, which has been lowered to 4.9 per cent for the upcoming fiscal year. Central government revenue expenditure saw a healthy rise of 9.6 per cent during July-August, bouncing back from a 1.5 per cent contraction in the previous quarter. Increase in female labour force participation Another significant achievement highlighted was the increase in female labour force participation, which surged from 23.3 per cent in 2017-18 to 37 per cent in 2022-23. This improvement is crucial for enhancing economic productivity and fostering social development. Investment trends also signal positive momentum. The central government’s capital expenditure rose by an impressive 25.8 per cent in July-August 2024, following a challenging first quarter. This emphasis on infrastructure development is anticipated to attract more private investment, further stimulating economic activity. Sitharaman also addressed an important milestone: the complete electrification of villages across India. She stated, “I don't think any village in India is unelectrified today,” reflecting on the substantial progress made since 2014 when many areas lacked basic electrification infrastructure, according to another report by ANI. Therefore, Nirmala Sitharaman's confidence in India's economic trajectory and its appeal to global investors reinforces the nation’s position as a key player in the global economy. With strategic focus on investment, infrastructure, and inclusive growth, India is well on its way to achieving its ambitious economic goals for the future. Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the Indian economy evolves and develops going ahead.

FM Nirmala Sitharaman projects 7.2% GDP growth for India in FY25

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Zee News Rajasthan

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Hanshika Ujlayan

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