Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times.

According to experts, muted wholesale inflation may prevent nominal GDP growth from exceeding the 10.5 per cent Union Budget target for this fiscal year.

The Economic Times cited Gaura Sengupta, an economist from IDFC First Bank, who indicated that their projection for nominal GDP growth in FY24 is tracking around 9 per cent with a downside risk. Compared to 9.6 per cent the year before, she forecast wholesale inflation to average at 0.2 per cent for this fiscal year.

As per the data released last week, the wholesale price index (WPI), which makes up 70 per cent of the GDP deflator used to compute nominal GDP, experienced deflation for the fifth consecutive month in August.

Compared to a 1.36 per cent deflation in July, WPI-based inflation dropped by 0.52 per cent in August.

As the base effects diminish, experts claim that WPI will start to trend upward starting in September, but they predict that inflation will remain low for the remainder of the fiscal year.

A rating company called CareEdge expects wholesale inflation to be between 1 per cent and 2 per cent in FY24.

Sengupta stated that tax receipts are showing the effects of the muted nominal growth.

“The impact of the slowdown in nominal GDP growth is already visible with gross tax collection growth slowing to 2.8 per cent YoY in FYTD24 (Financial Year-to-Date) (Apr to Jul), with a decline in corporate tax collections and a slowdown in income tax growth. Even GST tax collections where compliance is improving, a slowdown is seen in nominal growth rates to 11 per cent in FYTD24 (Apr to Aug) from 33 per cent in FYTD23,” The Economic Times quoted Sengupta as saying.

Others claim that low or negative wholesale price increases may prevent that, notwithstanding Sengupta's optimism that the government will be able to achieve its 5.9 per cent fiscal deficit objective with moderate expenditures.

According to Bank of Baroda chief economist Madan Sabnavis, deficit ratios might increase by as much as 0.2 percentage points if nominal growth approaches the real growth rate of 6.5 per cent.

Real GDP growth in the first quarter of FY24 was 7.8 per cent, while nominal GDP growth was just slightly higher at 8 per cent.

The delay in reaching the goal of a $5 trillion economy, according to Sabnavis, is another obstacle.

"This (6.5 per cent nominal growth) will push forward the year when we can hope to touch the $5-trillion mark," The Economic Times quoted Sabnavis as saying.

By 2026–2027, India is expected to surpass Japan as the third-largest economy in the world, according to the IMF, when its economy will reach $5 trillion.

In FY24, Sabnavis projects a nominal GDP growth rate of 8–9 per cent.

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Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times.

Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times. According to experts, muted wholesale inflation may prevent nominal GDP growth from exceeding the 10.5 per cent Union Budget target for this fiscal year. The Economic Times cited Gaura Sengupta, an economist from IDFC First Bank, who indicated that their projection for nominal GDP growth in FY24 is tracking around 9 per cent with a downside risk. Compared to 9.6 per cent the year before, she forecast wholesale inflation to average at 0.2 per cent for this fiscal year. As per the data released last week, the wholesale price index (WPI), which makes up 70 per cent of the GDP deflator used to compute nominal GDP, experienced deflation for the fifth consecutive month in August. Compared to a 1.36 per cent deflation in July, WPI-based inflation dropped by 0.52 per cent in August. As the base effects diminish, experts claim that WPI will start to trend upward starting in September, but they predict that inflation will remain low for the remainder of the fiscal year. A rating company called CareEdge expects wholesale inflation to be between 1 per cent and 2 per cent in FY24. Sengupta stated that tax receipts are showing the effects of the muted nominal growth. “The impact of the slowdown in nominal GDP growth is already visible with gross tax collection growth slowing to 2.8 per cent YoY in FYTD24 (Financial Year-to-Date) (Apr to Jul), with a decline in corporate tax collections and a slowdown in income tax growth. Even GST tax collections where compliance is improving, a slowdown is seen in nominal growth rates to 11 per cent in FYTD24 (Apr to Aug) from 33 per cent in FYTD23,” The Economic Times quoted Sengupta as saying. Others claim that low or negative wholesale price increases may prevent that, notwithstanding Sengupta's optimism that the government will be able to achieve its 5.9 per cent fiscal deficit objective with moderate expenditures. According to Bank of Baroda chief economist Madan Sabnavis, deficit ratios might increase by as much as 0.2 percentage points if nominal growth approaches the real growth rate of 6.5 per cent. Real GDP growth in the first quarter of FY24 was 7.8 per cent, while nominal GDP growth was just slightly higher at 8 per cent. The delay in reaching the goal of a $5 trillion economy, according to Sabnavis, is another obstacle. "This (6.5 per cent nominal growth) will push forward the year when we can hope to touch the $5-trillion mark," The Economic Times quoted Sabnavis as saying. By 2026–2027, India is expected to surpass Japan as the third-largest economy in the world, according to the IMF, when its economy will reach $5 trillion. In FY24, Sabnavis projects a nominal GDP growth rate of 8–9 per cent. WATCH WION LIVE HERE

As India nears its GDP target, experts worry about subdued nominal growth

India's leading low-cost airline, IndiGo, is set to embark on a pilot project aimed at evaluating and managing pilot fatigue using smartwatches, as revealed in an internal memo obtained by Reuters. The airline intends to appoint a consultant to enhance its fatigue risk management procedures, reflecting a commitment to pilot well-being and safety.&nbsp;

Pilots will have the opportunity to volunteer for the trials, which will employ a fatigue management tool developed by Thales. The data collected during these trials will be analysed anonymously.&nbsp;

Reuters quoted Ashim Mittra, the head of IndiGo’s flight operations department,&nbsp;as explaining in the memo, “IndiGo will test Thales’ fatigue management tool to assess pilot alertness levels over the next few months. Once completed, we will collectively evaluate the efficacy and accuracy of the data.” &nbsp;

This development comes&nbsp;after a recent incident in which an IndiGo pilot fell unconscious and died at the boarding gate before his scheduled flight. The incident led to complaints from some Indian pilots, who expressed concerns about being pushed to their limits by airlines, despite adhering to duty time guidelines. &nbsp;

According to Mittra’s memo, integrating a consultant into IndiGo's operations will be crucial to developing a reliable fatigue risk management system in the upcoming months. Additionally, it will allow the airline to design specialised techniques to efficiently reduce fatigue.&nbsp;

Meanwhile, India's aviation regulator is conducting a review of pilot fatigue data collected through spot checks and airline surveillance to determine if changes are needed in flight duty time regulations or fatigue management protocols.&nbsp;

The trial will concentrate on specific flight patterns utilising on-ground devices at four airports, including Delhi and Mumbai, according to the memo. Additionally, smartwatches and cameras will be used voluntarily to monitor fatigue levels on different flights routes and planes.&nbsp;

IndiGo has been collaborating with Thales on the development of this fatigue management tool, which utilises real-time data, historical information, and predictive analysis, surpassing traditional scheduling methods.&nbsp;

As per reports, Mittra emphasised that the trial won't replace the airline's existing fatigue risk management process, and pilots would still be required to report fatigue based on self-assessment.&nbsp;

(With inputs from Reuters)&nbsp;

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India's leading low-cost airline, IndiGo, is set to embark on a pilot project aimed at evaluating and managing pilot fatigue using smartwatches, as revealed in an internal memo obtained by Reuters.

India's leading low-cost airline, IndiGo, is set to embark on a pilot project aimed at evaluating and managing pilot fatigue using smartwatches, as revealed in an internal memo obtained by Reuters. The airline intends to appoint a consultant to enhance its fatigue risk management procedures, reflecting a commitment to pilot well-being and safety. Pilots will have the opportunity to volunteer for the trials, which will employ a fatigue management tool developed by Thales. The data collected during these trials will be analysed anonymously. Reuters quoted Ashim Mittra, the head of IndiGo’s flight operations department, as explaining in the memo, “IndiGo will test Thales’ fatigue management tool to assess pilot alertness levels over the next few months. Once completed, we will collectively evaluate the efficacy and accuracy of the data.” This development comes after a recent incident in which an IndiGo pilot fell unconscious and died at the boarding gate before his scheduled flight. The incident led to complaints from some Indian pilots, who expressed concerns about being pushed to their limits by airlines, despite adhering to duty time guidelines. According to Mittra’s memo, integrating a consultant into IndiGo's operations will be crucial to developing a reliable fatigue risk management system in the upcoming months. Additionally, it will allow the airline to design specialised techniques to efficiently reduce fatigue. Meanwhile, India's aviation regulator is conducting a review of pilot fatigue data collected through spot checks and airline surveillance to determine if changes are needed in flight duty time regulations or fatigue management protocols. The trial will concentrate on specific flight patterns utilising on-ground devices at four airports, including Delhi and Mumbai, according to the memo. Additionally, smartwatches and cameras will be used voluntarily to monitor fatigue levels on different flights routes and planes. IndiGo has been collaborating with Thales on the development of this fatigue management tool, which utilises real-time data, historical information, and predictive analysis, surpassing traditional scheduling methods. As per reports, Mittra emphasised that the trial won't replace the airline's existing fatigue risk management process, and pilots would still be required to report fatigue based on self-assessment. (With inputs from Reuters) WATCH WION LIVE HERE

India’s IndiGo likely to launch project to track pilot fatigue: Report 

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.&nbsp;

The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15.&nbsp;

Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world.&nbsp;

Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy."&nbsp;

Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics.&nbsp;

Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month.&nbsp;

Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.”&nbsp;

For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams.&nbsp;

Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice.&nbsp;

With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs.&nbsp;

Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices.&nbsp;

Although the shop could apply warnings to other products, it does not currently have plans to expand this programme.&nbsp;

(With inputs from Reuters)

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Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea. The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15. Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world. Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy." Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics. Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month. Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.” For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams. Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice. With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs. Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices. Although the shop could apply warnings to other products, it does not currently have plans to expand this programme. (With inputs from Reuters) WATCH WION LIVE HERE

French retail chain Carrefour takes action against "shrinkflation". Here's why

With India’s flag carrier, Air India, revealing&nbsp;its new brand identity in August, the airline is all set to enter a new era in its journey of being a distinct carrier in domestic and international skies.

The arrival of the new logo which features a contemporary design in the colours of gold, red, and purple; replacing the former red and saffron, and speculations about Air India’s famous mascot, the Maharajah retiring, sets the tone for a drastic change that the airline is about to witness in the coming years.

Just like the country&nbsp;it serves, Air India has had a rich history which has changed quite a lot over time. In this story, we trace the journey of India’s flag carrier that started out with a transporter of mail to India’s national carrier owned by the Indian government to how it was privatised and taken over by the TATA Group.

From a Transporter of Mail to a Transporter of Passengers

Air India's remarkable journey from being a mail carrier to a global passenger airline is a testament to the vision and determination of its founder, JRD Tata. It all began in 1932 when Tata Air Services was founded. Initially focused on transporting mail for Imperial Airways, the airline quickly expanded its operations to include passenger services. Within its first year, Tata Air Services had not only transported 10.7 tons of mail but had also carried 155 passengers, showcasing its efficiency and punctuality.

In 1938, the airline was renamed Tata Airlines and took its first step into international aviation by adding Colombo, Sri Lanka, to its route map. The profits grew tenfold by 1937, underscoring its success. However, World War II temporarily halted civilian aviation as Tata Airlines' planes were repurposed for military use.

Post-independence, the Indian government acquired a 49 per cent&nbsp;stake in the airline, which was then rebranded as Air India. In 1948, Air India made its historic inaugural long-haul flight from Mumbai to London Heathrow, marking a significant milestone in its transformation into a global airline.

From TATA Airlines to Air India

The evolution from Tata Airlines to Air India was a pivotal moment in the airline's history. Despite the government's nationalization of Air India in the 1950s, JRD Tata returned as its chairman to ensure that the airline's high standards were maintained. His commitment to excellence and dedication to Indian aviation was unwavering.

Air India continued its modernisation and expansion efforts, acquiring cutting-edge aircraft like the Boeing 707 in 1960 and the Boeing 747 in 1971. These acquisitions marked the beginning of a new era, enabling Air India to serve long-haul destinations with unparalleled comfort and efficiency. The airline expanded its global footprint, adding destinations across Europe and Asia, becoming a familiar sight in airports around the world.

However, in 1977, JRD Tata was removed as chairman, and Air India came under government control, marking a significant shift in its management and operations.

Merger with domestic carrier – Indian Airlines

The merger of Air India with Indian Airlines in 2007 was a significant development in the history of Indian aviation. It aimed to consolidate both carriers under the Air India brand, streamlining their operations and creating a more competitive and efficient entity. The merger brought together two distinct facets of Indian aviation—Air India's international operations and Indian Airlines' domestic network.

While the merger held promise, challenges soon emerged. The aviation landscape in India was changing rapidly with the emergence of new private carriers like Jet Airways. Despite Air India's historical successes, it faced growing competition and financial difficulties. The merged entity struggled to overcome these challenges, leading to a complex financial situation that persisted for almost two decades.

Mounting debt

Air India, once India's aviation pride, faced a crippling debt burden of Rs 61,000 crore. However, the government retained a portion of the debt, leaving Air India's finances in dire straits with just Rs 2,750 crore in cash.

The airline's financial crisis stemmed from a series of missteps, including an ill-advised order of 111 Boeing aircraft driven by political considerations, leading to equity erosion. Flawed aircraft configurations, the inability to offer direct flights, and the failed merger with Indian Airlines compounded its challenges. Labour unions secured extravagant salaries, diminishing cost competitiveness, while poor adaptability in a liberalised economy and leadership changes further aggravated the problems.

TATA’s takeover

The Tata Group finally assumed control of Air India in January 2022, embarking on a mission to revive the struggling carrier. This transition marked a significant shift in the airline's ownership.

Tata's ambitious vision for Air India includes a massive order for 470 aircraft, the largest in the airline's history. With a portfolio that includes Air India, Air India Express, AIX Connect (AirAsia India), and the joint venture Vistara with Singapore Airlines, the Tata Group is working towards merging Air India Express and AIX Connect, along with integrating Vistara into Air India. This strategic consolidation aims to optimise resources and streamline operations within the group.

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With India’s flag carrier, Air India, revealing its new brand identity in August, the airline is all set to enter a new era in its journey of being a distinct carrier in domestic and international skies.

With India’s flag carrier, Air India, revealing its new brand identity in August, the airline is all set to enter a new era in its journey of being a distinct carrier in domestic and international skies. The arrival of the new logo which features a contemporary design in the colours of gold, red, and purple; replacing the former red and saffron, and speculations about Air India’s famous mascot, the Maharajah retiring, sets the tone for a drastic change that the airline is about to witness in the coming years. Just like the country it serves, Air India has had a rich history which has changed quite a lot over time. In this story, we trace the journey of India’s flag carrier that started out with a transporter of mail to India’s national carrier owned by the Indian government to how it was privatised and taken over by the TATA Group. From a Transporter of Mail to a Transporter of Passengers Air India's remarkable journey from being a mail carrier to a global passenger airline is a testament to the vision and determination of its founder, JRD Tata. It all began in 1932 when Tata Air Services was founded. Initially focused on transporting mail for Imperial Airways, the airline quickly expanded its operations to include passenger services. Within its first year, Tata Air Services had not only transported 10.7 tons of mail but had also carried 155 passengers, showcasing its efficiency and punctuality. In 1938, the airline was renamed Tata Airlines and took its first step into international aviation by adding Colombo, Sri Lanka, to its route map. The profits grew tenfold by 1937, underscoring its success. However, World War II temporarily halted civilian aviation as Tata Airlines' planes were repurposed for military use. Post-independence, the Indian government acquired a 49 per cent stake in the airline, which was then rebranded as Air India. In 1948, Air India made its historic inaugural long-haul flight from Mumbai to London Heathrow, marking a significant milestone in its transformation into a global airline. From TATA Airlines to Air India The evolution from Tata Airlines to Air India was a pivotal moment in the airline's history. Despite the government's nationalization of Air India in the 1950s, JRD Tata returned as its chairman to ensure that the airline's high standards were maintained. His commitment to excellence and dedication to Indian aviation was unwavering. Air India continued its modernisation and expansion efforts, acquiring cutting-edge aircraft like the Boeing 707 in 1960 and the Boeing 747 in 1971. These acquisitions marked the beginning of a new era, enabling Air India to serve long-haul destinations with unparalleled comfort and efficiency. The airline expanded its global footprint, adding destinations across Europe and Asia, becoming a familiar sight in airports around the world. However, in 1977, JRD Tata was removed as chairman, and Air India came under government control, marking a significant shift in its management and operations. Merger with domestic carrier – Indian Airlines The merger of Air India with Indian Airlines in 2007 was a significant development in the history of Indian aviation. It aimed to consolidate both carriers under the Air India brand, streamlining their operations and creating a more competitive and efficient entity. The merger brought together two distinct facets of Indian aviation—Air India's international operations and Indian Airlines' domestic network. While the merger held promise, challenges soon emerged. The aviation landscape in India was changing rapidly with the emergence of new private carriers like Jet Airways. Despite Air India's historical successes, it faced growing competition and financial difficulties. The merged entity struggled to overcome these challenges, leading to a complex financial situation that persisted for almost two decades. Mounting debt Air India, once India's aviation pride, faced a crippling debt burden of Rs 61,000 crore. However, the government retained a portion of the debt, leaving Air India's finances in dire straits with just Rs 2,750 crore in cash. The airline's financial crisis stemmed from a series of missteps, including an ill-advised order of 111 Boeing aircraft driven by political considerations, leading to equity erosion. Flawed aircraft configurations, the inability to offer direct flights, and the failed merger with Indian Airlines compounded its challenges. Labour unions secured extravagant salaries, diminishing cost competitiveness, while poor adaptability in a liberalised economy and leadership changes further aggravated the problems. TATA’s takeover The Tata Group finally assumed control of Air India in January 2022, embarking on a mission to revive the struggling carrier. This transition marked a significant shift in the airline's ownership. Tata's ambitious vision for Air India includes a massive order for 470 aircraft, the largest in the airline's history. With a portfolio that includes Air India, Air India Express, AIX Connect (AirAsia India), and the joint venture Vistara with Singapore Airlines, the Tata Group is working towards merging Air India Express and AIX Connect, along with integrating Vistara into Air India. This strategic consolidation aims to optimise resources and streamline operations within the group. WATCH WION LIVE HERE

Flashback Friday: The story of India’s flag carrier – Air India

Singapore is taking proactive steps to harness the changing dynamics of global manufacturing flows by partnering with Malaysia and Indonesia to bolster its regional supply chain. This strategic collaboration aims to capitalise on rising investments from India, China, and Southeast Asia in recent years.&nbsp;

During an event hosted by LSEG and Reuters Newsmaker,&nbsp;Managing Director of Singapore’s Economic Development Board (EDB)&nbsp;Jacqueline Poh highlighted the importance of fostering a robust manufacturing base that encompasses Singapore, the southern Malaysian state of Johor, and the nearby Riau Islands of Indonesia. This collaborative effort is envisioned to position Southeast Asia as a formidable production hub.&nbsp;

Singapore’s objective is twofold: to maintain its status as one of the world’s premier financial centres and leverage the ongoing wealth shift towards Asia. Concurrently, the city-state is actively establishing itself as a wealth management hub catering to the ultra-rich.&nbsp;

However, the competition for a share of this growth is intensifying across the region as economies and businesses recover from the lingering effects of the COVID-19 pandemic.&nbsp;

Poh cautioned that the EDB anticipates a relatively subdued 2023 in terms of investments following a record-breaking 2022. In the previous year, Singapore secured S$22.5 billion (approximately $16.5 billion) in fixed asset investments, with over 66 per cent originating from electronics manufacturing projects.&nbsp;

“The primary driver for investments was the semiconductor super cycle," Reuters quoted Poh as saying. However, the electronics industry has faced a downturn, leading to a reversal of this trend.&nbsp;

Currently, Singapore holds an 11 per cent share of the global semiconductor market, with 20 per cent of global semiconductor equipment being manufactured within the country.&nbsp;

Additionally, Poh emphasised the EDB’s commitment to promoting “green finance” and renewable energy investments, encompassing sectors such as solar, wind, and hydropower.&nbsp;

Rising Family Offices&nbsp;

Singapore is maintaining its status as a sanctuary for the wealthy, who are establishing family offices to handle their money outside of their native countries in order to avoid political unrest and economic unpredictability.&nbsp;

According to data from the Monetary Authority of Singapore (MAS), there will be 1,100 single family offices in Singapore by the end of 2022, up from 400 at the end of 2020. These offices manage investments, taxes, asset transfers, and other financial problems for the wealthy.&nbsp;

Poh maintained that Singapore has made efforts to foster these family offices by enhancing training initiatives focused on asset management and financial planning.&nbsp;

“We've worked with the Wealth Management Institute at the MAS to start a brand-new course for family offices so that our family offices have to attend this new sort of training to better understand how they can deploy their capital,” Reuters quoted Poh as saying.&nbsp;

(With inputs from Reuters)&nbsp;

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Singapore is taking proactive steps to harness the changing dynamics of global manufacturing flows by partnering with Malaysia and Indonesia to bolster its regional supply chain.

Singapore is taking proactive steps to harness the changing dynamics of global manufacturing flows by partnering with Malaysia and Indonesia to bolster its regional supply chain. This strategic collaboration aims to capitalise on rising investments from India, China, and Southeast Asia in recent years. During an event hosted by LSEG and Reuters Newsmaker, Managing Director of Singapore’s Economic Development Board (EDB) Jacqueline Poh highlighted the importance of fostering a robust manufacturing base that encompasses Singapore, the southern Malaysian state of Johor, and the nearby Riau Islands of Indonesia. This collaborative effort is envisioned to position Southeast Asia as a formidable production hub. Singapore’s objective is twofold: to maintain its status as one of the world’s premier financial centres and leverage the ongoing wealth shift towards Asia. Concurrently, the city-state is actively establishing itself as a wealth management hub catering to the ultra-rich. However, the competition for a share of this growth is intensifying across the region as economies and businesses recover from the lingering effects of the COVID-19 pandemic. Poh cautioned that the EDB anticipates a relatively subdued 2023 in terms of investments following a record-breaking 2022. In the previous year, Singapore secured S$22.5 billion (approximately $16.5 billion) in fixed asset investments, with over 66 per cent originating from electronics manufacturing projects. “The primary driver for investments was the semiconductor super cycle," Reuters quoted Poh as saying. However, the electronics industry has faced a downturn, leading to a reversal of this trend. Currently, Singapore holds an 11 per cent share of the global semiconductor market, with 20 per cent of global semiconductor equipment being manufactured within the country. Additionally, Poh emphasised the EDB’s commitment to promoting “green finance” and renewable energy investments, encompassing sectors such as solar, wind, and hydropower. Rising Family Offices Singapore is maintaining its status as a sanctuary for the wealthy, who are establishing family offices to handle their money outside of their native countries in order to avoid political unrest and economic unpredictability. According to data from the Monetary Authority of Singapore (MAS), there will be 1,100 single family offices in Singapore by the end of 2022, up from 400 at the end of 2020. These offices manage investments, taxes, asset transfers, and other financial problems for the wealthy. Poh maintained that Singapore has made efforts to foster these family offices by enhancing training initiatives focused on asset management and financial planning. “We've worked with the Wealth Management Institute at the MAS to start a brand-new course for family offices so that our family offices have to attend this new sort of training to better understand how they can deploy their capital,” Reuters quoted Poh as saying. (With inputs from Reuters) WATCH WION LIVE HERE

Singapore in talks with Malaysia and Indonesia to establish regional supply chain: Report 

The European Central Bank (ECB) made a significant move by raising its key interest rate to a record high of 4 per cent on Thursday. However, in light of the economic struggles faced by the euro zone, the ECB signalled that this rate hike, which marked the 10th increase in a 14-month battle against inflation, is likely to be its last.

The ECB, which oversees monetary policy for the 20 countries sharing the euro, also revised its inflation and economic growth forecasts. It now anticipates that inflation will decrease more slowly towards its 2 per cent target over the next two years while revising downward its growth projections.

This present situation indicates the challenges faced by ECB policymakers as inflation rates continue to exceed the target rate, yet high borrowing costs and economic difficulties in China are hampering overall economic activity.

Consequently, the ECB sent a strong signal that its interest rate hikes have likely come to an end. This prompted a drop in euro zone bond yields and the euro’s value, while European shares gained as investors speculated that rate cuts might be on the horizon in the coming year.

Reuters quoted a statement made by the ECB saying, “Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”

However, this return to target inflation is now expected to occur at a slower pace than previously projected. The ECB’s previous forecasts suggest inflation rates of 5.6 per cent in 2023, 3.2 per cent in 2024, and 2.1 per cent in 2025.

The 25-basis-point interest rate hike pushed the rate that the ECB pays on bank deposits to 4 per cent, marking the highest level since the launch of the euro currency in 1999. When the ECB began to strictly control its monetary policy in July 2022, this rate came to reach a low of minus 0.5 per cent, indicating that banks had to pay to keep their funds safe with the central bank.

ECB President Christine Lagarde did not entirely dismiss the possibility of continued rate hikes, emphasising that interest rates would need to stay at restrictive levels for a while. Reuters quoted her at a press conference as saying, “The focus is going to move, going forwards, to the duration, but that is not to say, because we can't say that now, that we are at peak.”

Nevertheless, market reactions and forecasts have indicated scepticism about the ECB's commitment to keeping borrowing costs high for an extended period. Traders now anticipate the possibility of a rate cut as early as June, up from expectations of a cut in September prior to Thursday’s decision, which shall follow two more rate cuts anticipated at the end of 2024.

The lower market rates following the hike raise questions about the ECB’s determination to maintain elevated borrowing costs. Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management, commented, “The ECB won't be happy about this.”

While the ECB’s decision is being closely watched, the U.S. Federal Reserve is widely expected to stick to the same rates at its upcoming policy meeting. In contrast, the Bank of England is expected to proceed with a rate hike, despite some adjustments in expectations following the ECB's decision.

Responding to questions about whether the ECB's downgrade of its growth forecasts implied a regional recession as the base-case scenario, Lagarde maintained that the slowdown was temporary, expressing confidence that growth would rebound in 2024.

The ECB's adjustment of its 2024 inflation estimate played a role in the discussions, highlighting concerns that inflation, currently above 5 per cent, might remain at elevated levels for an extended period.

(With inputs from Reuters)

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The European Central Bank (ECB) made a significant move by raising its key interest rate to a record high of 4 per cent on Thursday. However, in light of the economic struggles faced by the euro zone, the ECB signalled that this rate hike, which marked the 10th increase in a 14-month battle against inflation, is likely to be its last.

The European Central Bank (ECB) made a significant move by raising its key interest rate to a record high of 4 per cent on Thursday. However, in light of the economic struggles faced by the euro zone, the ECB signalled that this rate hike, which marked the 10th increase in a 14-month battle against inflation, is likely to be its last. The ECB, which oversees monetary policy for the 20 countries sharing the euro, also revised its inflation and economic growth forecasts. It now anticipates that inflation will decrease more slowly towards its 2 per cent target over the next two years while revising downward its growth projections. This present situation indicates the challenges faced by ECB policymakers as inflation rates continue to exceed the target rate, yet high borrowing costs and economic difficulties in China are hampering overall economic activity. Consequently, the ECB sent a strong signal that its interest rate hikes have likely come to an end. This prompted a drop in euro zone bond yields and the euro’s value, while European shares gained as investors speculated that rate cuts might be on the horizon in the coming year. Reuters quoted a statement made by the ECB saying, “Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.” However, this return to target inflation is now expected to occur at a slower pace than previously projected. The ECB’s previous forecasts suggest inflation rates of 5.6 per cent in 2023, 3.2 per cent in 2024, and 2.1 per cent in 2025. The 25-basis-point interest rate hike pushed the rate that the ECB pays on bank deposits to 4 per cent, marking the highest level since the launch of the euro currency in 1999. When the ECB began to strictly control its monetary policy in July 2022, this rate came to reach a low of minus 0.5 per cent, indicating that banks had to pay to keep their funds safe with the central bank. ECB President Christine Lagarde did not entirely dismiss the possibility of continued rate hikes, emphasising that interest rates would need to stay at restrictive levels for a while. Reuters quoted her at a press conference as saying, “The focus is going to move, going forwards, to the duration, but that is not to say, because we can't say that now, that we are at peak.” Nevertheless, market reactions and forecasts have indicated scepticism about the ECB's commitment to keeping borrowing costs high for an extended period. Traders now anticipate the possibility of a rate cut as early as June, up from expectations of a cut in September prior to Thursday’s decision, which shall follow two more rate cuts anticipated at the end of 2024. The lower market rates following the hike raise questions about the ECB’s determination to maintain elevated borrowing costs. Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management, commented, “The ECB won't be happy about this.” While the ECB’s decision is being closely watched, the U.S. Federal Reserve is widely expected to stick to the same rates at its upcoming policy meeting. In contrast, the Bank of England is expected to proceed with a rate hike, despite some adjustments in expectations following the ECB's decision. Responding to questions about whether the ECB's downgrade of its growth forecasts implied a regional recession as the base-case scenario, Lagarde maintained that the slowdown was temporary, expressing confidence that growth would rebound in 2024. The ECB's adjustment of its 2024 inflation estimate played a role in the discussions, highlighting concerns that inflation, currently above 5 per cent, might remain at elevated levels for an extended period. (With inputs from Reuters) WATCH WION LIVE HERE

European Central Bank raises interest rates to record high amid economic challenges

India’s Directorate General of Civil Aviation (DGCA), the country’s aviation regulator, has taken proactive steps to address concerns surrounding engine failures in IndiGo flights, seeking answers from engine manufacturer Pratt &amp; Whitney, as confirmed by the country’s civil aviation ministry on Thursday.&nbsp;

In response to a series of incidents involving engine failures, the DGCA has formally requested Pratt &amp; Whitney to identify the root causes of these engine issues and share data related to engine failures on a global scale. &nbsp;

The move aims to ensure the safety and reliability of aircraft engines in operation.&nbsp;

This is the second instance this year in which Pratt &amp; Whitney has faced scrutiny over engine problems. Earlier this week, the parent company, RTX, disclosed a rare manufacturing flaw that could potentially ground hundreds of Airbus jets in the coming years. &nbsp;

The issue comes on the heels of a recall in July, which affected 200 engines worldwide due to high-pressure turbine parts' snags. Carriers were urged to remove these engines for inspection before September 15.&nbsp;

Pratt &amp; Whitney has indicated its consideration of a phase two recall, targeting the removal of up to 600 engines between 2023 and 2026. Detailed servicing plans are expected to be released within the next 60 days.&nbsp;

According to the statement issued by the Indian civil aviation ministry, eleven engines installed in IndiGo flights were “impacted” by the recall initiated in July. &nbsp;

In response, IndiGo has been working closely with Pratt &amp; Whitney to assess the potential consequences of these engine failures.&nbsp;

(With inputs from Reuters)&nbsp;

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India’s Directorate General of Civil Aviation (DGCA), the country’s aviation regulator, has taken proactive steps to address concerns surrounding engine failures in IndiGo flights, seeking answers from engine manufacturer Pratt & Whitney, as confirmed by the country’s civil aviation ministry on Thursday.

India’s Directorate General of Civil Aviation (DGCA), the country’s aviation regulator, has taken proactive steps to address concerns surrounding engine failures in IndiGo flights, seeking answers from engine manufacturer Pratt & Whitney, as confirmed by the country’s civil aviation ministry on Thursday. In response to a series of incidents involving engine failures, the DGCA has formally requested Pratt & Whitney to identify the root causes of these engine issues and share data related to engine failures on a global scale. The move aims to ensure the safety and reliability of aircraft engines in operation. This is the second instance this year in which Pratt & Whitney has faced scrutiny over engine problems. Earlier this week, the parent company, RTX, disclosed a rare manufacturing flaw that could potentially ground hundreds of Airbus jets in the coming years. The issue comes on the heels of a recall in July, which affected 200 engines worldwide due to high-pressure turbine parts' snags. Carriers were urged to remove these engines for inspection before September 15. Pratt & Whitney has indicated its consideration of a phase two recall, targeting the removal of up to 600 engines between 2023 and 2026. Detailed servicing plans are expected to be released within the next 60 days. According to the statement issued by the Indian civil aviation ministry, eleven engines installed in IndiGo flights were “impacted” by the recall initiated in July. In response, IndiGo has been working closely with Pratt & Whitney to assess the potential consequences of these engine failures. (With inputs from Reuters) WATCH WION LIVE HERE

DGCA seeks answers from Pratt & Whitney over engine failures in India’s IndiGo

The Pakistani government is facing severe financial challenges as it has been unable to pay salaries to its diplomatic staff stationed at select missions for the past three months due to a severe dollar liquidity crisis, according to a report by the Times of India.&nbsp;

As reported by The News International, press attaches working in diplomatic missions in the United States and Hong Kong, as well as press counsellors posted in Singapore, have not been compensated since June.&nbsp;

The report further states that Pakistan's finance ministry has indicated that salaries cannot be disbursed even for the month of September, citing exhaustion of the country's foreign exchange reserves.&nbsp;

This crisis is particularly concerning for Pakistani officials stationed in cities where the cost of living is high, such as Washington, D.C. and Hong Kong, as they now might have to face another month without salaries.&nbsp;

Top government sources quoted in The News International confirmed the prolonged salary delay, stating, “The press attaches working in Washington, D.C., and Hong Kong as well as press counsellor deputed in Singapore continue to live without salary from June.”&nbsp;

This is not the first time Pakistan has faced such challenges in paying its diplomatic staff. In the previous fiscal year (2022-23), the government confronted a similar issue, which was ultimately addressed with the approval of salaries through the supplementary grant by then Finance Minister Ishaq Dar for employees in the Economic Coordination Committee (ECC) of the Cabinet.&nbsp;

Pakistan’s economy has been struggling for several years, leading to considerable hardships for its population due to soaring inflation rates. The crisis has been further exacerbated by depleting foreign exchange reserves and skyrocketing energy prices.&nbsp;

Despite receiving approval for a long-awaited $3 billion bailout from the International Monetary Fund (IMF) aimed at helping Pakistan avoid default on its debt repayments, Islamabad is grappling with the challenge of meeting the conditions imposed by the lender, further complicating the nation's financial outlook.&nbsp;

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The Pakistani government is facing severe financial challenges as it has been unable to pay salaries to its diplomatic staff stationed at select missions for the past three months due to a severe dollar liquidity crisis, according to a report by the Times of India.

The Pakistani government is facing severe financial challenges as it has been unable to pay salaries to its diplomatic staff stationed at select missions for the past three months due to a severe dollar liquidity crisis, according to a report by the Times of India. As reported by The News International, press attaches working in diplomatic missions in the United States and Hong Kong, as well as press counsellors posted in Singapore, have not been compensated since June. The report further states that Pakistan's finance ministry has indicated that salaries cannot be disbursed even for the month of September, citing exhaustion of the country's foreign exchange reserves. This crisis is particularly concerning for Pakistani officials stationed in cities where the cost of living is high, such as Washington, D.C. and Hong Kong, as they now might have to face another month without salaries. Top government sources quoted in The News International confirmed the prolonged salary delay, stating, “The press attaches working in Washington, D.C., and Hong Kong as well as press counsellor deputed in Singapore continue to live without salary from June.” This is not the first time Pakistan has faced such challenges in paying its diplomatic staff. In the previous fiscal year (2022-23), the government confronted a similar issue, which was ultimately addressed with the approval of salaries through the supplementary grant by then Finance Minister Ishaq Dar for employees in the Economic Coordination Committee (ECC) of the Cabinet. Pakistan’s economy has been struggling for several years, leading to considerable hardships for its population due to soaring inflation rates. The crisis has been further exacerbated by depleting foreign exchange reserves and skyrocketing energy prices. Despite receiving approval for a long-awaited $3 billion bailout from the International Monetary Fund (IMF) aimed at helping Pakistan avoid default on its debt repayments, Islamabad is grappling with the challenge of meeting the conditions imposed by the lender, further complicating the nation's financial outlook. WATCH WION LIVE HERE

Pakistani diplomatic staff go unpaid for months amid dollar liquidity crunch 

Elon Musk's X Corp. has taken a significant step towards resolving a series of lawsuits filed by thousands of former Twitter employees who said that they were denied severance pay following Musk’s acquisition of the social media giant last year. In an exclusive memo obtained by Bloomberg News, attorney Shannon Liss-Riordan, representing the affected workers, announced that Twitter has agreed to engage in mediation to address the legal claims.&nbsp;

The legal battle, which has been ongoing for nearly ten months, revolves around allegations of labour and workplace violations, primarily centred on X Corp.'s failure to provide severance packages to employees laid off during the aftermath of the $44 billion acquisition. Over the course of this dispute, approximately 2,000 former Twitter employees have been pushed into negotiation by the company, a move that Shannon Liss-Riordan criticised in court filings due to Twitter's non-participation.&nbsp;

Liss-Riordan's memo, sent to her clients and viewed by Bloomberg News, declared the latest development: “After 10 months of pressing them in every direction, we have succeeded in getting Twitter to the table. Twitter wants to mediate with us in a global attempt to settle all claims we have filed.”&nbsp;

Sources familiar with the matter, who wished to remain anonymous, have confirmed that X Corp. is now complying with a court order to engage in mediation to address these disputes.&nbsp;

The mediation sessions have been scheduled for December 1 and December 2, as disclosed in Liss-Riordan’s memo. The parties involved will work alongside a mediator in an effort to reach an amicable resolution to the long-standing disputes.&nbsp;

In response to the developments, Liss-Riordan issued a statement on behalf of the affected employees, saying, “We are very proud to be representing nearly 2,000 former Twitter employees, in individual arbitrations as well as more than a dozen class action lawsuits in court. We are working hard to recover what they are owed.”&nbsp;

(With inputs from Bloomberg)

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Elon Musk's X Corp. has taken a significant step towards resolving a series of lawsuits filed by thousands of former Twitter employees who said that they were denied severance pay following Musk’s acquisition of the social media giant last year.

Elon Musk's X Corp. has taken a significant step towards resolving a series of lawsuits filed by thousands of former Twitter employees who said that they were denied severance pay following Musk’s acquisition of the social media giant last year. In an exclusive memo obtained by Bloomberg News, attorney Shannon Liss-Riordan, representing the affected workers, announced that Twitter has agreed to engage in mediation to address the legal claims. The legal battle, which has been ongoing for nearly ten months, revolves around allegations of labour and workplace violations, primarily centred on X Corp.'s failure to provide severance packages to employees laid off during the aftermath of the $44 billion acquisition. Over the course of this dispute, approximately 2,000 former Twitter employees have been pushed into negotiation by the company, a move that Shannon Liss-Riordan criticised in court filings due to Twitter's non-participation. Liss-Riordan's memo, sent to her clients and viewed by Bloomberg News, declared the latest development: “After 10 months of pressing them in every direction, we have succeeded in getting Twitter to the table. Twitter wants to mediate with us in a global attempt to settle all claims we have filed.” Sources familiar with the matter, who wished to remain anonymous, have confirmed that X Corp. is now complying with a court order to engage in mediation to address these disputes. The mediation sessions have been scheduled for December 1 and December 2, as disclosed in Liss-Riordan’s memo. The parties involved will work alongside a mediator in an effort to reach an amicable resolution to the long-standing disputes. In response to the developments, Liss-Riordan issued a statement on behalf of the affected employees, saying, “We are very proud to be representing nearly 2,000 former Twitter employees, in individual arbitrations as well as more than a dozen class action lawsuits in court. We are working hard to recover what they are owed.” (With inputs from Bloomberg) WATCH WION LIVE HERE

Elon Musk's X Corp. seeks resolution in Twitter severance pay lawsuits: Report 

The commerce minister on Wednesday said that India will develop new policies to attract electric vehicle (EV) producers and promote more investment in the industry.

The remarks from Piyush Goyal come as American electric vehicle manufacturer Tesla and the Narendra Modi administration continue to discuss the idea of establishing a facility in India.

Sources with exclusive knowledge of the situation told Reuters that India was developing an EV strategy that would lower import levies for automakers that committed to some local manufacture.

Goyal told Reuters that there will be industry consultation on the new regulation when asked about the government’s plans.

The administration wants to enhance domestic EV manufacturing as and when feasible and attract more investment, to that he remarked, “We will come out with a policy.”

Reuters further quoted Goyal as saying, “As we get large-scale production, we will start enjoying the fruits of economies of scale of new technologies.” However, he did not elaborate on any potential incentives.

Senior executives from Tesla who were interested in constructing a factory in India met with Goyal in August.

For both the Indian market and for exports, Tesla intends to build a low-cost EV priced at $24,000, which is about 25 per cent less expensive than its current entry-level model.

Tesla, which spent $1 billion on parts last year, plans to purchase components from India this year in the range of $1.7 billion and $1.9 billion, according to Goyal, who made the announcement on Tuesday.

(With inputs from Reuters)&nbsp;

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The commerce minister on Wednesday said that India will develop new policies to attract electric vehicle (EV) producers and promote more investment in the industry.

The commerce minister on Wednesday said that India will develop new policies to attract electric vehicle (EV) producers and promote more investment in the industry. The remarks from Piyush Goyal come as American electric vehicle manufacturer Tesla and the Narendra Modi administration continue to discuss the idea of establishing a facility in India. Sources with exclusive knowledge of the situation told Reuters that India was developing an EV strategy that would lower import levies for automakers that committed to some local manufacture. Goyal told Reuters that there will be industry consultation on the new regulation when asked about the government’s plans. The administration wants to enhance domestic EV manufacturing as and when feasible and attract more investment, to that he remarked, “We will come out with a policy.” Reuters further quoted Goyal as saying, “As we get large-scale production, we will start enjoying the fruits of economies of scale of new technologies.” However, he did not elaborate on any potential incentives. Senior executives from Tesla who were interested in constructing a factory in India met with Goyal in August. For both the Indian market and for exports, Tesla intends to build a low-cost EV priced at $24,000, which is about 25 per cent less expensive than its current entry-level model. Tesla, which spent $1 billion on parts last year, plans to purchase components from India this year in the range of $1.7 billion and $1.9 billion, according to Goyal, who made the announcement on Tuesday. (With inputs from Reuters) WATCH WION LIVE HERE

India to develop new policy to promote EV investment: Commerce minister  

Based on government data released on Wednesday, consumer inflation in the United States rose in August for a second consecutive month, increasing pressure on policymakers to lower prices.&nbsp;

According to the Labour Department, the consumer price index (CPI), a crucial inflation indicator, increased by 3.7 per cent from a year ago, accelerating from&nbsp;3.2 per cent in&nbsp;July. However, a measurement that removed volatile parts cooled.

The Federal Reserve has rapidly increased the benchmark lending rate since March of last year in an effort to reduce demand and stably cut inflation, but the present level is persistently higher than the two percent stated target.

&nbsp;“The index for gasoline was the largest contributor to the monthly all items increase, accounting for over half of the increase,” AFP quoted the Labor Department as saying.

The government also noted that the rent-adjusted shelter index continues to rise for the 40th straight month.

The CPI increased by 0.6 per cent from July to August, speeding up from the previous month as well.

While the most recent report may cause the Fed to pause for a while, economists believe it is unlikely to result in additional rate increases.

Ernest and Young chief economist Gregory Daco told AFP that should the “core” readings weaken consistently, “that will be taken as a sign by the Fed that perhaps further tightening is not necessary.”

“The paradigm for Fed policymakers has shifted away from tighten at all costs to tighten only as certain conditions are being met,” Daco stated.

Included in these circumstances are whether or not domestic demand is stronger than anticipated and whether the labour market is still active than anticipated.

According to Oxford Economics analyst Nancy Vanden Houten, the Fed will likely place more emphasis on underlying inflation when determining its monetary policy.

“We think they’re going to be quite cautious about lowering rates,” AFP quoted her. as saying

“We think that they’re done raising interest rates. We think the risk remains for more rate increases, but we certainly don't expect one next week,” she said.

The central bank has increased interest rates to their highest level in 22 years. The Federal Reserve's next action will be to lower interest rates, but Vanden Houten predicted that won’t happen until the middle of next year.

(With inputs from agencies)&nbsp;

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Based on government data released on Wednesday, consumer inflation in the United States rose in August for a second consecutive month, increasing pressure on policymakers to lower prices.

Based on government data released on Wednesday, consumer inflation in the United States rose in August for a second consecutive month, increasing pressure on policymakers to lower prices. According to the Labour Department, the consumer price index (CPI), a crucial inflation indicator, increased by 3.7 per cent from a year ago, accelerating from 3.2 per cent in July. However, a measurement that removed volatile parts cooled. The Federal Reserve has rapidly increased the benchmark lending rate since March of last year in an effort to reduce demand and stably cut inflation, but the present level is persistently higher than the two percent stated target. “The index for gasoline was the largest contributor to the monthly all items increase, accounting for over half of the increase,” AFP quoted the Labor Department as saying. The government also noted that the rent-adjusted shelter index continues to rise for the 40th straight month. The CPI increased by 0.6 per cent from July to August, speeding up from the previous month as well. While the most recent report may cause the Fed to pause for a while, economists believe it is unlikely to result in additional rate increases. Ernest and Young chief economist Gregory Daco told AFP that should the “core” readings weaken consistently, “that will be taken as a sign by the Fed that perhaps further tightening is not necessary.” “The paradigm for Fed policymakers has shifted away from tighten at all costs to tighten only as certain conditions are being met,” Daco stated. Included in these circumstances are whether or not domestic demand is stronger than anticipated and whether the labour market is still active than anticipated. According to Oxford Economics analyst Nancy Vanden Houten, the Fed will likely place more emphasis on underlying inflation when determining its monetary policy. “We think they’re going to be quite cautious about lowering rates,” AFP quoted her. as saying “We think that they’re done raising interest rates. We think the risk remains for more rate increases, but we certainly don't expect one next week,” she said. The central bank has increased interest rates to their highest level in 22 years. The Federal Reserve's next action will be to lower interest rates, but Vanden Houten predicted that won’t happen until the middle of next year. (With inputs from agencies) WATCH WION LIVE HERE

US consumer inflation rises to 3.7 per cent in August: Report 

Goldman Sachs and JPMorgan on Wednesday&nbsp;lowered their estimates for the UK’s GDP growth for the entire year, citing an unexpectedly severe decline in the economy in July.

The brokerages each reduced their projection by 20 basis points, with JPMorgan now anticipating 0.4 per cent growth and Goldman Sachs pegging growth at 0.3 per cent.

In contrast to all predictions in a Reuters survey of experts, which had projected a drop of 0.2 per cent, the Office for National Statistics (ONS) said that GDP shrank by 0.5 per cent in July from June.

While JPMorgan and Morgan Stanley economists anticipate a flat UK economy this year, a bombardment of dismal economic data might signal a significant risk of recession, they said.

The global banks claimed that a severe slump in the private sector was to blame for the weakness and projected diminishing momentum, in contrast to the ONS, which attributed the economic contraction to bad weather and doctor-led strikes.

“August PMIs were worse than we had expected, and we are getting slightly concerned about the pace of deterioration in employment indicators too,” Reuters quoted Bruna Skarica, an economist at Morgan Stanley, as saying.&nbsp;

The British economy may be deteriorating more than the Bank of England anticipated in advance of its September policy meeting, according to GDP figures.

In contrast to a prior prediction of 0.1 per cent growth, Skarica now anticipates that third quarter GDP will remain flat.

“We have been arguing against the idea that the UK is entering into a proper recession dynamic... That remains the case, but the near-term path for growth looks worse,” JPMorgan economist Allan Monks told Reuters.

(With inputs from Reuters)&nbsp;

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Goldman Sachs and JPMorgan on Wednesday lowered their estimates for the UK’s GDP growth for the entire year, citing an unexpectedly severe decline in the economy in July.

Goldman Sachs and JPMorgan on Wednesday lowered their estimates for the UK’s GDP growth for the entire year, citing an unexpectedly severe decline in the economy in July. The brokerages each reduced their projection by 20 basis points, with JPMorgan now anticipating 0.4 per cent growth and Goldman Sachs pegging growth at 0.3 per cent. In contrast to all predictions in a Reuters survey of experts, which had projected a drop of 0.2 per cent, the Office for National Statistics (ONS) said that GDP shrank by 0.5 per cent in July from June. While JPMorgan and Morgan Stanley economists anticipate a flat UK economy this year, a bombardment of dismal economic data might signal a significant risk of recession, they said. The global banks claimed that a severe slump in the private sector was to blame for the weakness and projected diminishing momentum, in contrast to the ONS, which attributed the economic contraction to bad weather and doctor-led strikes. “August PMIs were worse than we had expected, and we are getting slightly concerned about the pace of deterioration in employment indicators too,” Reuters quoted Bruna Skarica, an economist at Morgan Stanley, as saying. The British economy may be deteriorating more than the Bank of England anticipated in advance of its September policy meeting, according to GDP figures. In contrast to a prior prediction of 0.1 per cent growth, Skarica now anticipates that third quarter GDP will remain flat. “We have been arguing against the idea that the UK is entering into a proper recession dynamic... That remains the case, but the near-term path for growth looks worse,” JPMorgan economist Allan Monks told Reuters. (With inputs from Reuters) WATCH WION LIVE HERE

Goldman and JPMorgan lower UK’s growth forecast for 2023

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