The Narendra Modi government released a white paper, claiming their strategic policies, commitment to reforms, and strong leadership led to India's economic transformation over the past decade on Friday.

Shifting gears

The document contrasts the current regime with the previous United Progressive Alliance (UPA) era, blaming "policy paralysis, fiscal irresponsibility, and corruption" for India's earlier struggles.

It credits the BJP-led government with propelling the nation from the "Fragile Five" to the world's fifth-largest economy through sound economic management.

UPA's legacy

The white paper criticises the UPA government for jeopardising macroeconomic stability, citing high inflation and irresponsible fiscal deficits.

The 2014 banking crisis, attributed to undisclosed bad loans, is labelled as a significant UPA legacy.

A Credit Suisse report highlighting "significant undisclosed liabilities" is used to emphasise the crisis's severity.

Modi's reform agenda

The document claims the Modi government tackled the banking crisis head-on, increased capital spending, and achieved fiscal consolidation upon taking office.

These measures, it argues, not only improved India's international standing but also paved the way for sustained high growth.

Investing in the future

The government claims to have addressed challenges inherited from the UPA era while investing in both the foundation and superstructure of the economy.

The white paper underlines that fiscal consolidation and improved government spending quality were achieved without compromising on welfare programs, citing statistics and observations from multilateral institutions as support.

Discipline amid crisis

Acknowledging that some improvements were influenced by external factors, the document criticises the UPA's "reckless lending" and ensuing bad loans crisis.

It commends the Modi government's ability to maintain fiscal discipline even during the pandemic and achieve faster-than-expected fiscal consolidation, attributing this to their "political capital."

Centralised approach

The white paper subtly attributes the success to a centralised approach under the current government, highlighting improved implementation of welfare and infrastructure programs.

It cites a shift from sporadic coverage to "saturation coverage," ensuring basic necessities reach beneficiaries through targeted support.

The share of capital expenditure in total spending has also increased, with efficiency in utilisation boosted by a "Whole of Government" approach leveraging Gati Shakti and Pragati initiatives.

The Narendra Modi government released a white paper, claiming their strategic policies, commitment to reforms, and strong leadership led to India's economic transformation over the past decade on Friday.

The Narendra Modi government released a white paper, claiming their strategic policies, commitment to reforms, and strong leadership led to India's economic transformation over the past decade on Friday. Shifting gears The document contrasts the current regime with the previous United Progressive Alliance (UPA) era, blaming "policy paralysis, fiscal irresponsibility, and corruption" for India's earlier struggles. It credits the BJP-led government with propelling the nation from the "Fragile Five" to the world's fifth-largest economy through sound economic management. UPA's legacy The white paper criticises the UPA government for jeopardising macroeconomic stability, citing high inflation and irresponsible fiscal deficits. The 2014 banking crisis, attributed to undisclosed bad loans, is labelled as a significant UPA legacy. A Credit Suisse report highlighting "significant undisclosed liabilities" is used to emphasise the crisis's severity. Modi's reform agenda The document claims the Modi government tackled the banking crisis head-on, increased capital spending, and achieved fiscal consolidation upon taking office. These measures, it argues, not only improved India's international standing but also paved the way for sustained high growth. Investing in the future The government claims to have addressed challenges inherited from the UPA era while investing in both the foundation and superstructure of the economy. The white paper underlines that fiscal consolidation and improved government spending quality were achieved without compromising on welfare programs, citing statistics and observations from multilateral institutions as support. Discipline amid crisis Acknowledging that some improvements were influenced by external factors, the document criticises the UPA's "reckless lending" and ensuing bad loans crisis. It commends the Modi government's ability to maintain fiscal discipline even during the pandemic and achieve faster-than-expected fiscal consolidation, attributing this to their "political capital." Centralised approach The white paper subtly attributes the success to a centralised approach under the current government, highlighting improved implementation of welfare and infrastructure programs. It cites a shift from sporadic coverage to "saturation coverage," ensuring basic necessities reach beneficiaries through targeted support. The share of capital expenditure in total spending has also increased, with efficiency in utilisation boosted by a "Whole of Government" approach leveraging Gati Shakti and Pragati initiatives.

Decoding the Modi government's white paper on Indian economy

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Digital World Acquisition Corp (DWAC), the blank-check acquisition company set to take former US President Donald Trump's social media platform public, is reportedly on the brink of securing a $50 million financing deal. <o:p></o:p>

A Reuters report cited sources familiar with the matter, who said that the deal, based on convertible notes, is expected to be announced in the coming days. <o:p></o:p>

The financing will play a crucial role in supporting DWAC as it navigates the final stages of its merger with Trump Media &amp; Technology Group (TMTG), the owner of the anticipated social media platform Truth Social.<o:p></o:p>

DWAC shares experienced a surge, closing 4.4 per cent higher at $47.66 following news of the impending financing deal. <o:p></o:p>

The stock has witnessed a remarkable threefold increase since January 15, coinciding with Trump's victory in the Iowa caucus, as investors anticipate the former president's return to the political arena, potentially enhancing the value of Truth Social. <o:p></o:p>

Investment firms, including Anson Funds, All Blue Capital, and Mangrove Partners, have reportedly expressed interest in purchasing the convertible notes, underscoring the financial community's keen interest in the venture.<o:p></o:p>

The merger journey for DWAC and TMTG has been marked by challenges and regulatory scrutiny. <o:p></o:p>

DWAC initially announced a $1 billion private-investment-in-public-equity (PIPE) transaction, which was later cancelled. <o:p></o:p>

Facing delays and regulatory scrutiny, the company amended its deal with TMTG in August 2021, giving Trump new shares in DWAC with increased voting power. <o:p></o:p>

The company has since faced investigations from the US Department of Justice and the Securities and Exchange Commission (SEC), leading to changes in its leadership and board. <o:p></o:p>

Despite these hurdles, DWAC is poised to draw $10 million from the $50 million convertible note raise for immediate use, with plans to tap the remainder upon completing the merger with TMTG.<o:p></o:p>

The path to completing the merger has been prolonged, with DWAC initially failing to meet the September 2022 deadline. <o:p></o:p>

A crucial amendment to the deal unwound the PIPE and granted Trump additional shares with enhanced voting authority.<o:p></o:p>

&nbsp;The company is currently awaiting SEC clearance to allow shareholders to vote on the merger with TMTG. <o:p></o:p>

DWAC's resilience is evidenced by its commitment to the process, as it expects to utilise $10 million from the convertible note raise immediately, with the remainder kept for the completion of the deal with TMTG.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Digital World Acquisition Corp (DWAC), the blank-check acquisition company set to take former US President Donald Trump's social media platform public, is reportedly on the brink of securing a $50 million financing deal.

Digital World Acquisition Corp (DWAC), the blank-check acquisition company set to take former US President Donald Trump's social media platform public, is reportedly on the brink of securing a $50 million financing deal. A Reuters report cited sources familiar with the matter, who said that the deal, based on convertible notes, is expected to be announced in the coming days. The financing will play a crucial role in supporting DWAC as it navigates the final stages of its merger with Trump Media & Technology Group (TMTG), the owner of the anticipated social media platform Truth Social. DWAC shares experienced a surge, closing 4.4 per cent higher at $47.66 following news of the impending financing deal. The stock has witnessed a remarkable threefold increase since January 15, coinciding with Trump's victory in the Iowa caucus, as investors anticipate the former president's return to the political arena, potentially enhancing the value of Truth Social. Investment firms, including Anson Funds, All Blue Capital, and Mangrove Partners, have reportedly expressed interest in purchasing the convertible notes, underscoring the financial community's keen interest in the venture. The merger journey for DWAC and TMTG has been marked by challenges and regulatory scrutiny. DWAC initially announced a $1 billion private-investment-in-public-equity (PIPE) transaction, which was later cancelled. Facing delays and regulatory scrutiny, the company amended its deal with TMTG in August 2021, giving Trump new shares in DWAC with increased voting power. The company has since faced investigations from the US Department of Justice and the Securities and Exchange Commission (SEC), leading to changes in its leadership and board. Despite these hurdles, DWAC is poised to draw $10 million from the $50 million convertible note raise for immediate use, with plans to tap the remainder upon completing the merger with TMTG. The path to completing the merger has been prolonged, with DWAC initially failing to meet the September 2022 deadline. A crucial amendment to the deal unwound the PIPE and granted Trump additional shares with enhanced voting authority. The company is currently awaiting SEC clearance to allow shareholders to vote on the merger with TMTG. DWAC's resilience is evidenced by its commitment to the process, as it expects to utilise $10 million from the convertible note raise immediately, with the remainder kept for the completion of the deal with TMTG. (With inputs from Reuters)

Truth Social deal partner set to receive $50 mn ahead of public debut: Report

In a day marked by fluctuations, the S&amp;P 500 index made a brief but impactful touch on the 5,000-point milestone, leaving investors reacting to earnings reports, a steady jobs report, and insights from policymakers on potential interest rate cuts.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Despite the market's initial excitement, the benchmark managed only a modest gain, highlighting the nuanced dynamics at play in the financial landscape.<o:p></o:p>

Beneath the surface, small-cap indexes demonstrated resilience, outperforming their larger counterparts. <o:p></o:p>

Semiconductor stocks, notably ARM Holdings, experienced a surge of 47.9 per cent after forecasting robust demand for artificial intelligence-related designs. <o:p></o:p>

Reflecting this positive trend, Keith Lerner, co-chief investment officer at Truist Advisory Services, noted a "risk-on appetite" and the ongoing leadership shown by the semiconductor sector.<o:p></o:p>

Walt Disney shares rose by 11.5 per cent, propelled by a profit that surpassed Wall Street estimates. <o:p></o:p>

The media giant also unveiled a comprehensive plan, including a $3 billion share repurchase initiative, a 50 per cent dividend increase, a gaming investment, and plans for an ESPN streaming service in 2025. <o:p></o:p>

Similarly, Spirit Airlines reported a narrower-than-expected loss, leading to a 3.3 per cent increase in its shares, with expectations of positive cash flow from the second quarter onwards.<o:p></o:p>

As more than half of S&amp;P 500 companies disclosed their quarterly earnings, an impressive 80.6 per cent exceeded expectations, surpassing the long-term average of 67 per cent. <o:p></o:p>

The economic data front revealed a slightly better-than-expected decrease in new claims for unemployment benefits, indicating underlying strength in the labour market.<o:p></o:p>

The S&amp;P 500, while closing just below the 5,000 mark, achieved a record high for the second consecutive day, underscoring investor optimism. <o:p></o:p>

Despite uncertainties surrounding interest rate cuts and concerns about regional bank stability, the index gained 2.85 points, or 0.06 per cent, to reach 4,997.91. <o:p></o:p>

The Dow Jones Industrial Average rose by 0.13 per cent, and the Nasdaq Composite posted a gain of 0.24 per cent.<o:p></o:p>

Leading the major-sector gains, the energy sector rose by 1.1 per cent in response to an increase in crude prices. <o:p></o:p>

Notably, the Russell 2000 small-cap index outperformed, closing up 1.5 per cent, while the Philadelphia semiconductor index ended 1.6 per cent higher, positioning itself as a significant beneficiary of artificial intelligence technology.<o:p></o:p>

However, amid the positive momentum, shares of New York Community Bancorp declined by 6.5 per cent following earlier gains. <o:p></o:p>

This shift came after the lender's appointment of a new executive chairman and considerations to reduce exposure to the troubled commercial real estate segment.<o:p></o:p>

Meanwhile, PayPal shares saw an 11.2 per cent decline after forecasting flat growth in adjusted profit for the current year, impacting the S&amp;P 500 financial sector.<o:p></o:p>

Market dynamics also witnessed notable movements in individual stocks, with Ralph Lauren's stock rallying by 16.8 per cent post a third-quarter revenue beat. <o:p></o:p>

Apparel maker Under Armour closed up 0.1 per cent, buoyed by an increased annual profit forecast.<o:p></o:p>

In the broader market context, advancing issues outnumbered decliners on both the NYSE and Nasdaq, highlighting a generally positive sentiment. <o:p></o:p>

The S&amp;P 500 recorded 56 new 52-week highs and 7 new lows, while the Nasdaq posted 249 new highs and 109 new lows, providing a comprehensive snapshot of the day's market activity.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a day marked by fluctuations, the S&P 500 index made a brief but impactful touch on the 5,000-point milestone, leaving investors reacting to earnings reports, a steady jobs report, and insights from policymakers on potential interest rate cuts.

In a day marked by fluctuations, the S&P 500 index made a brief but impactful touch on the 5,000-point milestone, leaving investors reacting to earnings reports, a steady jobs report, and insights from policymakers on potential interest rate cuts. This is based on a Reuters report. Despite the market's initial excitement, the benchmark managed only a modest gain, highlighting the nuanced dynamics at play in the financial landscape. Beneath the surface, small-cap indexes demonstrated resilience, outperforming their larger counterparts. Semiconductor stocks, notably ARM Holdings, experienced a surge of 47.9 per cent after forecasting robust demand for artificial intelligence-related designs. Reflecting this positive trend, Keith Lerner, co-chief investment officer at Truist Advisory Services, noted a "risk-on appetite" and the ongoing leadership shown by the semiconductor sector. Walt Disney shares rose by 11.5 per cent, propelled by a profit that surpassed Wall Street estimates. The media giant also unveiled a comprehensive plan, including a $3 billion share repurchase initiative, a 50 per cent dividend increase, a gaming investment, and plans for an ESPN streaming service in 2025. Similarly, Spirit Airlines reported a narrower-than-expected loss, leading to a 3.3 per cent increase in its shares, with expectations of positive cash flow from the second quarter onwards. As more than half of S&P 500 companies disclosed their quarterly earnings, an impressive 80.6 per cent exceeded expectations, surpassing the long-term average of 67 per cent. The economic data front revealed a slightly better-than-expected decrease in new claims for unemployment benefits, indicating underlying strength in the labour market. The S&P 500, while closing just below the 5,000 mark, achieved a record high for the second consecutive day, underscoring investor optimism. Despite uncertainties surrounding interest rate cuts and concerns about regional bank stability, the index gained 2.85 points, or 0.06 per cent, to reach 4,997.91. The Dow Jones Industrial Average rose by 0.13 per cent, and the Nasdaq Composite posted a gain of 0.24 per cent. Leading the major-sector gains, the energy sector rose by 1.1 per cent in response to an increase in crude prices. Notably, the Russell 2000 small-cap index outperformed, closing up 1.5 per cent, while the Philadelphia semiconductor index ended 1.6 per cent higher, positioning itself as a significant beneficiary of artificial intelligence technology. However, amid the positive momentum, shares of New York Community Bancorp declined by 6.5 per cent following earlier gains. This shift came after the lender's appointment of a new executive chairman and considerations to reduce exposure to the troubled commercial real estate segment. Meanwhile, PayPal shares saw an 11.2 per cent decline after forecasting flat growth in adjusted profit for the current year, impacting the S&P 500 financial sector. Market dynamics also witnessed notable movements in individual stocks, with Ralph Lauren's stock rallying by 16.8 per cent post a third-quarter revenue beat. Apparel maker Under Armour closed up 0.1 per cent, buoyed by an increased annual profit forecast. In the broader market context, advancing issues outnumbered decliners on both the NYSE and Nasdaq, highlighting a generally positive sentiment. The S&P 500 recorded 56 new 52-week highs and 7 new lows, while the Nasdaq posted 249 new highs and 109 new lows, providing a comprehensive snapshot of the day's market activity. (With inputs from Reuters)

S&P 500 briefly touches the 5,000-mark. Here are the details

In a significant economic shift, Mexico has emerged as the leading source of goods imported to the United States, overtaking China for the first time in more than two decades. <o:p></o:p>

According to a report by the Associated Press (AP), figures released by the US Commerce Department on Wednesday reveal that the value of goods imported from Mexico to the US rose nearly 5 per cent in 2023, reaching over $475 billion, while Chinese imports saw a significant decline of 20 per cent, totalling $427 billion.<o:p></o:p>

This historic change in import dynamics underscores the growing tensions between Washington and Beijing, with the US making deliberate efforts to diversify sources and foster relationships with countries closer to home. <o:p></o:p>

The Trump administration initiated tariffs on Chinese imports in 2018, a trend continued by President Biden, reflecting a bipartisan consensus on addressing trade imbalances and concerns about Beijing's trade practices.<o:p></o:p>

Amidst the strained US-China economic relations, the Biden administration has been encouraging companies to explore alternative sourcing strategies such as "friend-shoring" in allied countries or "reshoring" by bringing manufacturing back to the US.<o:p></o:p>

This shift is in response to the challenges posed by offshoring to China and the disruptions in global supply chains due to the COVID-19 pandemic, leading companies to seek suppliers closer to the United States, a strategy referred to as "near-shoring".<o:p></o:p>

The growing trend of importing goods from Mexico is not a straightforward narrative. <o:p></o:p>

While Mexico has benefited from the shift away from Chinese factories, some Chinese manufacturers have established operations in Mexico, leveraging the advantages of the US-Mexico-Canada Trade Agreement. <o:p></o:p>

This agreement, in effect for three years, facilitates duty-free trade in North America for many products. <o:p></o:p>

Derek Scissors, a China specialist at the American Enterprise Institute, highlighted that major drops in Chinese imports were observed in politically sensitive categories like computers, electronics, chemicals, and pharmaceuticals.<o:p></o:p>

Scissors suggested that the decline in US reliance on Chinese goods is influenced by wariness towards Beijing's economic policies, particularly under President Xi Jinping. <o:p></o:p>

Factors such as Xi's stringent COVID-19 lockdowns in 2022 and counterespionage investigations targeting foreign companies have contributed to a reassessment of China's reliability. <o:p></o:p>

He noted that the shift in import patterns may not be a temporary change, stating, "I don't see the US being comfortable with a rebound in those areas in 2024 and 2025."<o:p></o:p>

Overall, the US trade deficit in goods with the rest of the world narrowed by 10 per cent in the past year, amounting to $1.06 trillion.<o:p></o:p>

(With inputs from AP)<o:p></o:p>

In a significant economic shift, Mexico has emerged as the leading source of goods imported to the United States, overtaking China for the first time in more than two decades.

In a significant economic shift, Mexico has emerged as the leading source of goods imported to the United States, overtaking China for the first time in more than two decades. According to a report by the Associated Press (AP), figures released by the US Commerce Department on Wednesday reveal that the value of goods imported from Mexico to the US rose nearly 5 per cent in 2023, reaching over $475 billion, while Chinese imports saw a significant decline of 20 per cent, totalling $427 billion. This historic change in import dynamics underscores the growing tensions between Washington and Beijing, with the US making deliberate efforts to diversify sources and foster relationships with countries closer to home. The Trump administration initiated tariffs on Chinese imports in 2018, a trend continued by President Biden, reflecting a bipartisan consensus on addressing trade imbalances and concerns about Beijing's trade practices. Amidst the strained US-China economic relations, the Biden administration has been encouraging companies to explore alternative sourcing strategies such as "friend-shoring" in allied countries or "reshoring" by bringing manufacturing back to the US. This shift is in response to the challenges posed by offshoring to China and the disruptions in global supply chains due to the COVID-19 pandemic, leading companies to seek suppliers closer to the United States, a strategy referred to as "near-shoring". The growing trend of importing goods from Mexico is not a straightforward narrative. While Mexico has benefited from the shift away from Chinese factories, some Chinese manufacturers have established operations in Mexico, leveraging the advantages of the US-Mexico-Canada Trade Agreement. This agreement, in effect for three years, facilitates duty-free trade in North America for many products. Derek Scissors, a China specialist at the American Enterprise Institute, highlighted that major drops in Chinese imports were observed in politically sensitive categories like computers, electronics, chemicals, and pharmaceuticals. Scissors suggested that the decline in US reliance on Chinese goods is influenced by wariness towards Beijing's economic policies, particularly under President Xi Jinping. Factors such as Xi's stringent COVID-19 lockdowns in 2022 and counterespionage investigations targeting foreign companies have contributed to a reassessment of China's reliability. He noted that the shift in import patterns may not be a temporary change, stating, "I don't see the US being comfortable with a rebound in those areas in 2024 and 2025." Overall, the US trade deficit in goods with the rest of the world narrowed by 10 per cent in the past year, amounting to $1.06 trillion. (With inputs from AP)

Mexico surpasses China as top source of US imports amid global economic shifts

In a stark warning, TAG Immobilen, one of Germany's largest landlords, has forecasted that home prices in the country could plunge as much as 30 per cent below their 2022 peak, portraying a more pessimistic outlook than its counterparts. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The co-CEO of TAG Immobilen, Martin Thiel, expressed a somber view of Europe's largest residential property market, noting that while they anticipate a bottoming out at a 20 per cent decline, the company is preparing for a potential 25 per cent or 30 per cent drop. <o:p></o:p>

Thiel emphasised the need for financial precautions, stating, "The balance sheet must be able to withstand that. You simply need that cushion."<o:p></o:p>

Thiel's assessment contrasts sharply with the more optimistic outlook presented by Germany's largest listed property group, Vonovia. <o:p></o:p>

CEO Rolf Buch expressed cautious optimism that the worst might be over for the property market, acknowledging potential lower valuations in the next half-year but suggesting a turnaround soon. <o:p></o:p>

Despite a 10 per cent write-down of property value by Vonovia, Buch compared the market situation to Formula One racing, indicating an imminent acceleration after a period of braking.<o:p></o:p>

Germany's property industry, valued at 670 billion euros, plays a critical role in the country's economy, contributing significantly to jobs and output. <o:p></o:p>

Thiel's perspective diverges from other industry leaders, including LEG Immobilien's CEO Lars von Lackum, who remains more sanguine, stating, "The German property market is not going to implode." <o:p></o:p>

While Germany experienced a property boom in recent years, a sudden rise in interest rates and building costs has led to insolvencies and frozen deals, making it the hardest-hit country in Europe in the current property market upheaval.<o:p></o:p>

Thiel's comments offer a unique insight into an industry dominated by small, privately-owned companies. <o:p></o:p>

The reluctance to book losses among investors and executives has been a prevailing sentiment, hoping for an improvement in market conditions. <o:p></o:p>

Thiel highlighted the existing standstill in deals, with both buyers and sellers reluctant to bridge the gap in price expectations. <o:p></o:p>

He mentioned, "Potential buyers know that the prices have changed. Both sides are some way apart. That is why we partially have a standstill."<o:p></o:p>

Thiel admitted to misjudging the scale of the slump, leading to strategic measures such as withholding dividends, selling properties, and raising capital. <o:p></o:p>

The unforeseen volatility in the market has prompted a reassessment of stability, with Thiel reflecting, "If you had asked at the beginning of 2022 whether prices for apartments... would fall by 20 per cent, I probably would have said: impossible. The business is too stable for that.”<o:p></o:p>

Looking ahead, the forecast for the German property market in 2024 appears grim. Economic institute DIW predicts a decline in construction spending, marking the first decrease since the financial crisis, with stabilisation expected in 2025. <o:p></o:p>

The ongoing challenges in the property sector have led to calls for emergency aid, emphasising the broader economic implications of the downturn.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a stark warning, TAG Immobilen, one of Germany's largest landlords, has forecasted that home prices in the country could plunge as much as 30 per cent below their 2022 peak, portraying a more pessimistic outlook than its counterparts.

In a stark warning, TAG Immobilen, one of Germany's largest landlords, has forecasted that home prices in the country could plunge as much as 30 per cent below their 2022 peak, portraying a more pessimistic outlook than its counterparts. This is based on a Reuters report. The co-CEO of TAG Immobilen, Martin Thiel, expressed a somber view of Europe's largest residential property market, noting that while they anticipate a bottoming out at a 20 per cent decline, the company is preparing for a potential 25 per cent or 30 per cent drop. Thiel emphasised the need for financial precautions, stating, "The balance sheet must be able to withstand that. You simply need that cushion." Thiel's assessment contrasts sharply with the more optimistic outlook presented by Germany's largest listed property group, Vonovia. CEO Rolf Buch expressed cautious optimism that the worst might be over for the property market, acknowledging potential lower valuations in the next half-year but suggesting a turnaround soon. Despite a 10 per cent write-down of property value by Vonovia, Buch compared the market situation to Formula One racing, indicating an imminent acceleration after a period of braking. Germany's property industry, valued at 670 billion euros, plays a critical role in the country's economy, contributing significantly to jobs and output. Thiel's perspective diverges from other industry leaders, including LEG Immobilien's CEO Lars von Lackum, who remains more sanguine, stating, "The German property market is not going to implode." While Germany experienced a property boom in recent years, a sudden rise in interest rates and building costs has led to insolvencies and frozen deals, making it the hardest-hit country in Europe in the current property market upheaval. Thiel's comments offer a unique insight into an industry dominated by small, privately-owned companies. The reluctance to book losses among investors and executives has been a prevailing sentiment, hoping for an improvement in market conditions. Thiel highlighted the existing standstill in deals, with both buyers and sellers reluctant to bridge the gap in price expectations. He mentioned, "Potential buyers know that the prices have changed. Both sides are some way apart. That is why we partially have a standstill." Thiel admitted to misjudging the scale of the slump, leading to strategic measures such as withholding dividends, selling properties, and raising capital. The unforeseen volatility in the market has prompted a reassessment of stability, with Thiel reflecting, "If you had asked at the beginning of 2022 whether prices for apartments... would fall by 20 per cent, I probably would have said: impossible. The business is too stable for that.” Looking ahead, the forecast for the German property market in 2024 appears grim. Economic institute DIW predicts a decline in construction spending, marking the first decrease since the financial crisis, with stabilisation expected in 2025. The ongoing challenges in the property sector have led to calls for emergency aid, emphasising the broader economic implications of the downturn. (With inputs from Reuters)

German property market faces bleak outlook as TAG Immobilen warns of 30pc price decline

In a staggering downturn, Snap, the parent company of Snapchat, witnessed a sharp decline of over 32 per cent in its shares on Wednesday, following disappointing fourth-quarter revenue results that fell short of Wall Street expectations. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The plummeting stock value, coupled with the struggle to compete for advertising dollars against industry giants like Meta and Alphabet, raises concerns about Snap's ability to maintain its market momentum.<o:p></o:p>

Snap's fourth-quarter revenue reached $1.36 billion, missing the estimated $1.38 billion, marking a significant setback for the company in the fiercely competitive advertising landscape. <o:p></o:p>

Unlike Snap, Meta experienced a remarkable 25 per cent surge in advertising sales during the holiday quarter, while Alphabet's Google ad business grew by 11 per cent, with YouTube ad sales increasing by 16 per cent in the same period.<o:p></o:p>

Jasmine Enberg, principal analyst at Insider Intelligence, commented on Snap's performance, stating, "Once again, Snap's results have disappointed investors," noting that the company's rebound is struggling to keep pace with the significant successes of tech giants in the advertising arena. <o:p></o:p>

Susannah Streeter, head of money and markets at Hargreaves Lansdown, emphasised the concern over Snap's management, stating that the recent disappointing results have turned into a "crisis of confidence”.<o:p></o:p>

The market reaction to Snap's underwhelming performance is further intensified by the company's decision to lay off 10 per cent of its workforce, amounting to 528 employees. <o:p></o:p>

This move aims to "invest incrementally" in Snap's growth over time, but Bernstein analyst Mark Shmulik points out that despite these layoffs, the cost per employee remains high compared to industry benchmarks, while ad revenue growth lags behind. <o:p></o:p>

Snap's shares currently trade at a forward price-to-earnings (PE) ratio of 88.37, in stark contrast to Meta's 22.71 and Pinterest's 29.47, indicating a less attractive investment opportunity.<o:p></o:p>

"Investor patience has been tested, and it's clear fewer are optimistic about Snap's ability to bounce back from the ad slump," noted Susannah Streeter. <o:p></o:p>

The market response signals a crisis for Snap, with its shares heading for the worst day since July 2022.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a staggering downturn, Snap, the parent company of Snapchat, witnessed a sharp decline of over 32 per cent in its shares on Wednesday, following disappointing fourth-quarter revenue results that fell short of Wall Street expectations.

In a staggering downturn, Snap, the parent company of Snapchat, witnessed a sharp decline of over 32 per cent in its shares on Wednesday, following disappointing fourth-quarter revenue results that fell short of Wall Street expectations. This is based on a Reuters report. The plummeting stock value, coupled with the struggle to compete for advertising dollars against industry giants like Meta and Alphabet, raises concerns about Snap's ability to maintain its market momentum. Snap's fourth-quarter revenue reached $1.36 billion, missing the estimated $1.38 billion, marking a significant setback for the company in the fiercely competitive advertising landscape. Unlike Snap, Meta experienced a remarkable 25 per cent surge in advertising sales during the holiday quarter, while Alphabet's Google ad business grew by 11 per cent, with YouTube ad sales increasing by 16 per cent in the same period. Jasmine Enberg, principal analyst at Insider Intelligence, commented on Snap's performance, stating, "Once again, Snap's results have disappointed investors," noting that the company's rebound is struggling to keep pace with the significant successes of tech giants in the advertising arena. Susannah Streeter, head of money and markets at Hargreaves Lansdown, emphasised the concern over Snap's management, stating that the recent disappointing results have turned into a "crisis of confidence”. The market reaction to Snap's underwhelming performance is further intensified by the company's decision to lay off 10 per cent of its workforce, amounting to 528 employees. This move aims to "invest incrementally" in Snap's growth over time, but Bernstein analyst Mark Shmulik points out that despite these layoffs, the cost per employee remains high compared to industry benchmarks, while ad revenue growth lags behind. Snap's shares currently trade at a forward price-to-earnings (PE) ratio of 88.37, in stark contrast to Meta's 22.71 and Pinterest's 29.47, indicating a less attractive investment opportunity. "Investor patience has been tested, and it's clear fewer are optimistic about Snap's ability to bounce back from the ad slump," noted Susannah Streeter. The market response signals a crisis for Snap, with its shares heading for the worst day since July 2022. (With inputs from Reuters)

Snap faces investor backlash as ad revenue stumbles against tech giants Meta, Alphabet

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is preparing to launch a substantial $4-5 billion fund aimed at investing in India through the tax-neutral finance hub in Gujarat, known as Gujarat International Finance Tec-City (GIFT City). <o:p></o:p>

According to Reuters, two undisclosed sources with direct knowledge of the matter revealed that the regulatory authority for financial services at GIFT City has granted in-principal approval for ADIA to establish the fund.<o:p></o:p>

This strategic decision by ADIA, first announced in a joint statement by India and the UAE last July, positions the sovereign wealth fund as the pioneer in making investments in India through GIFT City. <o:p></o:p>

The regulatory approval, not previously reported, signifies a step forward for the fund's entry into the Indian market. <o:p></o:p>

ADIA's spokesperson declined to comment, and queries to the International Financial Services Authority (IFSCA), the hub's regulatory body, went unanswered.<o:p></o:p>

The $4-5 billion fund is expected to be operational by the middle of this year, as stated by one of the sources. <o:p></o:p>

These allocated funds will be systematically invested in India, marking a major financial development for the region. <o:p></o:p>

Investments can cover a diverse range of assets, including Indian and foreign equities, debt securities, and more.<o:p></o:p>

GIFT City, located in Prime Minister Narendra Modi's home state of Gujarat, has been gaining attention as Modi's government aims to enhance its financial significance. <o:p></o:p>

Recent initiatives include allowing unlisted Indian firms to list shares directly on exchanges within the city. <o:p></o:p>

Finance Minister Nirmala Sitharam emphasised during the budget announcement that GIFT City is envisioned as a "gateway for global capital and financial services for the economy".<o:p></o:p>

ADIA's approval to operate in GIFT City is seen as a landmark decision, coming just ahead of Prime Minister Modi's scheduled visit to Abu Dhabi to inaugurate a grand temple. <o:p></o:p>

This move strengthens the bilateral ties between India and the UAE, with trade reaching $85 billion for the financial year ending March 2023. <o:p></o:p>

The UAE is also home to one of the world's largest Indian diaspora populations, constituting almost 35 per cent of the country's total population.<o:p></o:p>

The financial landscape within GIFT City offers enticing benefits, including a 10-year tax holiday for companies establishing their presence there. <o:p></o:p>

Additionally, there are no taxes imposed on fund transfers from overseas jurisdictions, providing proximity to Indian markets. <o:p></o:p>

ADIA and its subsidiaries have been granted exemptions from long-term capital gains taxes on Indian investments, a special provision applicable until March 2025 ([Reuters]).<o:p></o:p>

As of December 2023, GIFT City had 95 local and global funds with commitments totalling $30 billion and investments exceeding $2.93 billion. <o:p></o:p>

The International Financial Services Authority (IFSCA) is actively engaging in early discussions with other sovereign wealth funds to set up operations in GIFT City, indicating the growing appeal of this finance hub.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is preparing to launch a substantial $4-5 billion fund aimed at investing in India through the tax-neutral finance hub in Gujarat, known as Gujarat International Finance Tec-City (GIFT City).

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is preparing to launch a substantial $4-5 billion fund aimed at investing in India through the tax-neutral finance hub in Gujarat, known as Gujarat International Finance Tec-City (GIFT City). According to Reuters, two undisclosed sources with direct knowledge of the matter revealed that the regulatory authority for financial services at GIFT City has granted in-principal approval for ADIA to establish the fund. This strategic decision by ADIA, first announced in a joint statement by India and the UAE last July, positions the sovereign wealth fund as the pioneer in making investments in India through GIFT City. The regulatory approval, not previously reported, signifies a step forward for the fund's entry into the Indian market. ADIA's spokesperson declined to comment, and queries to the International Financial Services Authority (IFSCA), the hub's regulatory body, went unanswered. The $4-5 billion fund is expected to be operational by the middle of this year, as stated by one of the sources. These allocated funds will be systematically invested in India, marking a major financial development for the region. Investments can cover a diverse range of assets, including Indian and foreign equities, debt securities, and more. GIFT City, located in Prime Minister Narendra Modi's home state of Gujarat, has been gaining attention as Modi's government aims to enhance its financial significance. Recent initiatives include allowing unlisted Indian firms to list shares directly on exchanges within the city. Finance Minister Nirmala Sitharam emphasised during the budget announcement that GIFT City is envisioned as a "gateway for global capital and financial services for the economy". ADIA's approval to operate in GIFT City is seen as a landmark decision, coming just ahead of Prime Minister Modi's scheduled visit to Abu Dhabi to inaugurate a grand temple. This move strengthens the bilateral ties between India and the UAE, with trade reaching $85 billion for the financial year ending March 2023. The UAE is also home to one of the world's largest Indian diaspora populations, constituting almost 35 per cent of the country's total population. The financial landscape within GIFT City offers enticing benefits, including a 10-year tax holiday for companies establishing their presence there. Additionally, there are no taxes imposed on fund transfers from overseas jurisdictions, providing proximity to Indian markets. ADIA and its subsidiaries have been granted exemptions from long-term capital gains taxes on Indian investments, a special provision applicable until March 2025 ([Reuters]). As of December 2023, GIFT City had 95 local and global funds with commitments totalling $30 billion and investments exceeding $2.93 billion. The International Financial Services Authority (IFSCA) is actively engaging in early discussions with other sovereign wealth funds to set up operations in GIFT City, indicating the growing appeal of this finance hub. (With inputs from Reuters)

UAE's ADIA unveils ambitious $4-5bn investment plan in India via Gujarat's finance hub

In a twist for the fixed-income market, uncertainty is making a comeback after the Federal Reserve's recent statements and robust economic data threw a curveball into expectations.<o:p></o:p>

According to a Reuters report, investors who rode the explosive rally that elevated bond prices at the close of 2023 are now facing heightened risks as they reassess their bets on when the Federal Reserve might cut interest rates this year.<o:p></o:p>

Late last year, a surge in Treasury investments was fuelled by the anticipation of a first-quarter rate cut by the Fed. <o:p></o:p>

However, the landscape is shifting following a blowout US jobs report and a cautious Federal Reserve message, warning that premature rate cuts could trigger an inflationary rebound.<o:p></o:p>

Yields on the 10-year Treasury, inversely related to prices, have surged by 20 basis points from December's lows, prompting investors to reconsider their strategies.<o:p></o:p>

Reuters quoted Robert Tipp, the chief investment strategist at PGIM Fixed Income, managing $794 billion in assets, who said, "The combination of the jobs numbers and the Fed press conference has really caused a splintering in the potential outcomes."<o:p></o:p>

Tipp suggests that 10-year yields could approach last year's high of approximately 5 per cent this year, up from the current level of around 4.1 per cent.<o:p></o:p>

The uncertainty reflects in the futures market as well, with investors now assigning only a 20 per cent chance of a Federal Reserve rate cut in March, down from 64 per cent a month ago. <o:p></o:p>

Federal Reserve Chair Jerome Powell, dismissing expectations of a March cut, emphasised the need for greater confidence in inflation moving towards its 2 per cent target.<o:p></o:p>

John Madziyire, head of US Treasuries and TIPS at Vanguard, expressed a shift in strategy, stating, "Now maybe we'll start scaling in at 4.25 per cent on the view that we could potentially go to 4.5 per cent, pricing a ... higher-for-longer scenario."<o:p></o:p>

The uncertainty is prompting some investors to reconsider their positions. <o:p></o:p>

Spencer Hakimian, CEO of Tolou Capital Management, has been reducing exposure to long-term Treasuries and adding shorter-term ones, anticipating elevated rates for a longer duration. <o:p></o:p>

The risk of higher interest rates impacting the value of long-duration bonds is a concern for many investors.<o:p></o:p>

The looming uncertainty is also fuelled by expectations of nearly $2 trillion in new US government bond issuance this year. <o:p></o:p>

Investors fear that rising yields may be necessary to attract buyers, given the potential fiscal impact and warnings from rating agencies Fitch and Moody's.<o:p></o:p>

Despite the rise in yields, the stock market has remained resilient. The S&amp;P 500 is up over 4 per cent for the year and near a record high.<o:p></o:p>

Matt Eagan, portfolio manager at Loomis, Sayles &amp; Company, predicts 10-year yields at 4.5 per cent, partly due to anticipated large government issuance.<o:p></o:p>

Amid the uncertainty, many still believe that the overall direction for rates is lower, contingent on inflation maintaining a cooling trend. <o:p></o:p>

Federal Reserve officials, projecting three quarter-point rate cuts this year, signal a cautious approach, adjusting the pace rather than ruling out rate cuts altogether.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a twist for the fixed-income market, uncertainty is making a comeback after the Federal Reserve's recent statements and robust economic data threw a curveball into expectations.

In a twist for the fixed-income market, uncertainty is making a comeback after the Federal Reserve's recent statements and robust economic data threw a curveball into expectations. According to a Reuters report, investors who rode the explosive rally that elevated bond prices at the close of 2023 are now facing heightened risks as they reassess their bets on when the Federal Reserve might cut interest rates this year. Late last year, a surge in Treasury investments was fuelled by the anticipation of a first-quarter rate cut by the Fed. However, the landscape is shifting following a blowout US jobs report and a cautious Federal Reserve message, warning that premature rate cuts could trigger an inflationary rebound. Yields on the 10-year Treasury, inversely related to prices, have surged by 20 basis points from December's lows, prompting investors to reconsider their strategies. Reuters quoted Robert Tipp, the chief investment strategist at PGIM Fixed Income, managing $794 billion in assets, who said, "The combination of the jobs numbers and the Fed press conference has really caused a splintering in the potential outcomes." Tipp suggests that 10-year yields could approach last year's high of approximately 5 per cent this year, up from the current level of around 4.1 per cent. The uncertainty reflects in the futures market as well, with investors now assigning only a 20 per cent chance of a Federal Reserve rate cut in March, down from 64 per cent a month ago. Federal Reserve Chair Jerome Powell, dismissing expectations of a March cut, emphasised the need for greater confidence in inflation moving towards its 2 per cent target. John Madziyire, head of US Treasuries and TIPS at Vanguard, expressed a shift in strategy, stating, "Now maybe we'll start scaling in at 4.25 per cent on the view that we could potentially go to 4.5 per cent, pricing a ... higher-for-longer scenario." The uncertainty is prompting some investors to reconsider their positions. Spencer Hakimian, CEO of Tolou Capital Management, has been reducing exposure to long-term Treasuries and adding shorter-term ones, anticipating elevated rates for a longer duration. The risk of higher interest rates impacting the value of long-duration bonds is a concern for many investors. The looming uncertainty is also fuelled by expectations of nearly $2 trillion in new US government bond issuance this year. Investors fear that rising yields may be necessary to attract buyers, given the potential fiscal impact and warnings from rating agencies Fitch and Moody's. Despite the rise in yields, the stock market has remained resilient. The S&P 500 is up over 4 per cent for the year and near a record high. Matt Eagan, portfolio manager at Loomis, Sayles & Company, predicts 10-year yields at 4.5 per cent, partly due to anticipated large government issuance. Amid the uncertainty, many still believe that the overall direction for rates is lower, contingent on inflation maintaining a cooling trend. Federal Reserve officials, projecting three quarter-point rate cuts this year, signal a cautious approach, adjusting the pace rather than ruling out rate cuts altogether. (With inputs from Reuters)

Uncertainty looms over US treasury market as Fed signals caution

<a name="OLE_LINK1"></a>The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.5 per cent, as announced by Governor Shaktikanta Das following the Monetary Policy Committee (MPC) meeting on Thursday. <o:p></o:p>

This decision marks a continuation of the RBI's approach over the past year, where the repo rate has remained at 6.5 per cent since the last increase in February 2023, aimed at curbing inflation influenced by global factors.

"This decision underscores the central bank's cautious approach, balancing economic stability, and inflationary concerns in a volatile pre-election environment," Adhil Shetty, CEO of Bankbazaar.com said.

Shetty mentioned that in the current economic landscape, there is persistent concern about food inflation, whereas core inflation has exhibited signs of softening, prompting a positive response from the market.

He further noted that globally, growth remains stable, with indicators suggesting recovery in FY24.

However, Shetty also pointed out that central banks are exercising caution, prioritising financial stability before committing to major rate cuts.

On the subject of loans, Shetty noted, "While home buyers in India had hoped for rate reductions to bolster their purchasing confidence, the RBI's decision to maintain interest rates, albeit on the higher side, ensures loans remain relatively stable. Despite this, the residential real estate sector in India continues to show resilience, with an uptick in property purchases."

In addition to the interest rate decision, the RBI revised the GDP growth rate for the fiscal year 2023-24, indicating an upward adjustment from 7 per cent to 7.3 per cent. <o:p></o:p>

The central bank also provided insights into its inflation outlook, projecting consumer inflation at 5.4 per cent for the current financial year (2023-24) and further anticipating a decrease to 4.5 per cent in the upcoming fiscal year (2024-25).

Despite a decline in retail inflation from its peak of 7.44 per cent in July 2023, the current rate stands at 5.69 per cent as of December 2023.

Shetty stated that rural demand remains robust, supported by the extension of welfare schemes, which further bolsters economic activity.

Additionally, he&nbsp;mentioned that looking ahead, the projected real GDP growth for FY 2024-2025 stands at a promising 7 per cent, signalling optimism for sustained economic expansion.

<o:p></o:p><o:p></o:p>

While this remains elevated, it falls within the Reserve Bank's comfort zone of 4-6 per cent.<o:p></o:p>

The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.5 per cent, as announced by Governor Shaktikanta Das following the Monetary Policy Committee (MPC) meeting on Thursday.

The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.5 per cent, as announced by Governor Shaktikanta Das following the Monetary Policy Committee (MPC) meeting on Thursday. This decision marks a continuation of the RBI's approach over the past year, where the repo rate has remained at 6.5 per cent since the last increase in February 2023, aimed at curbing inflation influenced by global factors. "This decision underscores the central bank's cautious approach, balancing economic stability, and inflationary concerns in a volatile pre-election environment," Adhil Shetty, CEO of Bankbazaar.com said. Shetty mentioned that in the current economic landscape, there is persistent concern about food inflation, whereas core inflation has exhibited signs of softening, prompting a positive response from the market. He further noted that globally, growth remains stable, with indicators suggesting recovery in FY24. However, Shetty also pointed out that central banks are exercising caution, prioritising financial stability before committing to major rate cuts. On the subject of loans, Shetty noted, "While home buyers in India had hoped for rate reductions to bolster their purchasing confidence, the RBI's decision to maintain interest rates, albeit on the higher side, ensures loans remain relatively stable. Despite this, the residential real estate sector in India continues to show resilience, with an uptick in property purchases." In addition to the interest rate decision, the RBI revised the GDP growth rate for the fiscal year 2023-24, indicating an upward adjustment from 7 per cent to 7.3 per cent. The central bank also provided insights into its inflation outlook, projecting consumer inflation at 5.4 per cent for the current financial year (2023-24) and further anticipating a decrease to 4.5 per cent in the upcoming fiscal year (2024-25). Despite a decline in retail inflation from its peak of 7.44 per cent in July 2023, the current rate stands at 5.69 per cent as of December 2023. Shetty stated that rural demand remains robust, supported by the extension of welfare schemes, which further bolsters economic activity. Additionally, he mentioned that looking ahead, the projected real GDP growth for FY 2024-2025 stands at a promising 7 per cent, signalling optimism for sustained economic expansion. While this remains elevated, it falls within the Reserve Bank's comfort zone of 4-6 per cent.

RBI keeps interest rates steady at 6.5pc, revises GDP growth outlook for 2023-24

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery.<o:p></o:p>

The National Bureau of Statistics revealed that the Consumer Price Index (CPI) experienced a 0.8 per cent year-on-year drop, marking the most significant decline since September 2009, following a 0.3 per cent decrease in December. <o:p></o:p>

Amid a challenging economic landscape, the CPI rose by 0.3 per cent month-on-month.<o:p></o:p>

Analysts had anticipated a 0.5 per cent year-on-year fall and a 0.4 per cent month-on-month gain, underscoring the severity of the economic headwinds.<o:p></o:p>

The persistent deflationary pressure depicted in China's CPI data underscores the urgency for decisive and swift actions by policymakers to prevent the entrenchment of deflationary expectations among consumers. <o:p></o:p>

Despite the official target of around 5 per cent economic growth being met in 2023, the recovery has been lacklustre. <o:p></o:p>

A contraction in factory activity in January, coupled with challenges like a property downturn, local government debt risks, and weak global demand, adds to the complexity of China's economic revival. <o:p></o:p>

Analysts emphasise the need for proactive measures to counter deflationary risks.<o:p></o:p>

China has grappled with slowing prices since early last year, leading policymakers to implement interest rate cuts to stimulate growth. <o:p></o:p>

The growth target for 2023 was achieved at 5 per cent, but the resilience of the recovery has been questioned. <o:p></o:p>

A growth target of around 5 per cent is anticipated for the current year. <o:p></o:p>

In late January, China's central bank announced its most substantial cut to bank reserves in two years, signalling robust support for the fragile economy. <o:p></o:p>

However, analysts stress the necessity for additional measures to boost confidence and demand effectively.<o:p></o:p>

Core inflation, excluding volatile food and energy prices, saw a 0.4 per cent gain from a year earlier, down from December's 0.6 per cent. <o:p></o:p>

Despite last year's CPI rising by 0.2 per cent, missing the official target of around 3 per cent, inflation has fallen short of annual targets for 12 consecutive years. <o:p></o:p>

Citigroup economists expect a mild reflation in 2024, forecasting annual CPI inflation at 1.2 per cent year-on-year. <o:p></o:p>

The cyclical drivers for CPI could shift in 2024, contingent on the return of consumer confidence, with the strength of reflation hinging on these factors.<o:p></o:p>

In addition to consumer prices, the Producer Price Index (PPI) recorded a 2.5 per cent year-on-year decline in January, following a 2.7 per cent fall in the previous month. <o:p></o:p>

Factory-gate prices experienced a 0.2 per cent month-on-month decrease. <o:p></o:p>

Prolonged factory deflation poses a significant threat to the survival of smaller Chinese exporters who find themselves embroiled in relentless price wars amid shrinking business opportunities.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery.

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery. The National Bureau of Statistics revealed that the Consumer Price Index (CPI) experienced a 0.8 per cent year-on-year drop, marking the most significant decline since September 2009, following a 0.3 per cent decrease in December. Amid a challenging economic landscape, the CPI rose by 0.3 per cent month-on-month. Analysts had anticipated a 0.5 per cent year-on-year fall and a 0.4 per cent month-on-month gain, underscoring the severity of the economic headwinds. The persistent deflationary pressure depicted in China's CPI data underscores the urgency for decisive and swift actions by policymakers to prevent the entrenchment of deflationary expectations among consumers. Despite the official target of around 5 per cent economic growth being met in 2023, the recovery has been lacklustre. A contraction in factory activity in January, coupled with challenges like a property downturn, local government debt risks, and weak global demand, adds to the complexity of China's economic revival. Analysts emphasise the need for proactive measures to counter deflationary risks. China has grappled with slowing prices since early last year, leading policymakers to implement interest rate cuts to stimulate growth. The growth target for 2023 was achieved at 5 per cent, but the resilience of the recovery has been questioned. A growth target of around 5 per cent is anticipated for the current year. In late January, China's central bank announced its most substantial cut to bank reserves in two years, signalling robust support for the fragile economy. However, analysts stress the necessity for additional measures to boost confidence and demand effectively. Core inflation, excluding volatile food and energy prices, saw a 0.4 per cent gain from a year earlier, down from December's 0.6 per cent. Despite last year's CPI rising by 0.2 per cent, missing the official target of around 3 per cent, inflation has fallen short of annual targets for 12 consecutive years. Citigroup economists expect a mild reflation in 2024, forecasting annual CPI inflation at 1.2 per cent year-on-year. The cyclical drivers for CPI could shift in 2024, contingent on the return of consumer confidence, with the strength of reflation hinging on these factors. In addition to consumer prices, the Producer Price Index (PPI) recorded a 2.5 per cent year-on-year decline in January, following a 2.7 per cent fall in the previous month. Factory-gate prices experienced a 0.2 per cent month-on-month decrease. Prolonged factory deflation poses a significant threat to the survival of smaller Chinese exporters who find themselves embroiled in relentless price wars amid shrinking business opportunities. (With inputs from Reuters)

China faces its biggest deflation threat since 2009 as consumer prices plummet

<o:p></o:p>Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters.<o:p></o:p>

With a 40 per cent surge in 2024, Nvidia's market capitalisation stands at $1.715 trillion, just 3 per cent short of Amazon's $1.767 trillion. <o:p></o:p>

Additionally, it is trailing closely behind Alphabet, Google's parent company, which boasts a $1.812 trillion valuation. <o:p></o:p>

The soaring trajectory of Nvidia's shares, rising 1.8 per cent to $694.48 after an optimistic report from Morgan Stanley, positions the AI giant as a formidable player in the market.<o:p></o:p>

Morgan Stanley's recent report has contributed to the positive sentiment surrounding Nvidia. <o:p></o:p>

Analyst Joseph Moore, in a client note, emphasised the surging demand for AI, prompting the firm to raise Nvidia's price target from $603 to $750. <o:p></o:p>

Nvidia, having tripled its stock value in 2023, now holds the fifth position among the most valuable companies in the US stock market. <o:p></o:p>

The company is gearing up to report its quarterly results on February 21, maintaining the spotlight on its robust performance.<o:p></o:p>

Nvidia's prominence in the AI landscape has been propelled by tech giants like Meta Platforms and others integrating its graphics processors into their products and services. <o:p></o:p>

The company has emerged as a top beneficiary in the race to infuse AI capabilities across various industries. <o:p></o:p>

Cloud-computing providers offering Nvidia's processors are witnessing high demand, leading to months-long waiting lists for AI developers. <o:p></o:p>

Morgan Stanley's Moore pointed out that while these wait times are gradually decreasing, the sustained demand underscores Nvidia's pivotal role in the AI ecosystem.<o:p></o:p>

This impending milestone for Nvidia marks the first time in two decades that it is on the verge of surpassing Amazon in market value. <o:p></o:p>

The last instance was in 2002 when both companies were valued under $6 billion. <o:p></o:p>

Microsoft's recent achievement in becoming the world's most valuable company, surpassing Apple, adds to the dynamic landscape of tech leaders vying for the top spots. <o:p></o:p>

While Nvidia's surge in market value is noteworthy, Saudi Aramco remains the world's third most valuable publicly listed company, with a market capitalisation of $2 trillion. <o:p></o:p>

However, it's essential to note that over 90 per cent of Saudi Aramco is closely held by the Saudi Arabian government, and less than 2 per cent of its shares are available for trading by investors. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters.

Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters. With a 40 per cent surge in 2024, Nvidia's market capitalisation stands at $1.715 trillion, just 3 per cent short of Amazon's $1.767 trillion. Additionally, it is trailing closely behind Alphabet, Google's parent company, which boasts a $1.812 trillion valuation. The soaring trajectory of Nvidia's shares, rising 1.8 per cent to $694.48 after an optimistic report from Morgan Stanley, positions the AI giant as a formidable player in the market. Morgan Stanley's recent report has contributed to the positive sentiment surrounding Nvidia. Analyst Joseph Moore, in a client note, emphasised the surging demand for AI, prompting the firm to raise Nvidia's price target from $603 to $750. Nvidia, having tripled its stock value in 2023, now holds the fifth position among the most valuable companies in the US stock market. The company is gearing up to report its quarterly results on February 21, maintaining the spotlight on its robust performance. Nvidia's prominence in the AI landscape has been propelled by tech giants like Meta Platforms and others integrating its graphics processors into their products and services. The company has emerged as a top beneficiary in the race to infuse AI capabilities across various industries. Cloud-computing providers offering Nvidia's processors are witnessing high demand, leading to months-long waiting lists for AI developers. Morgan Stanley's Moore pointed out that while these wait times are gradually decreasing, the sustained demand underscores Nvidia's pivotal role in the AI ecosystem. This impending milestone for Nvidia marks the first time in two decades that it is on the verge of surpassing Amazon in market value. The last instance was in 2002 when both companies were valued under $6 billion. Microsoft's recent achievement in becoming the world's most valuable company, surpassing Apple, adds to the dynamic landscape of tech leaders vying for the top spots. While Nvidia's surge in market value is noteworthy, Saudi Aramco remains the world's third most valuable publicly listed company, with a market capitalisation of $2 trillion. However, it's essential to note that over 90 per cent of Saudi Aramco is closely held by the Saudi Arabian government, and less than 2 per cent of its shares are available for trading by investors. (With inputs from Reuters)

Nvidia's soaring value nears Amazon amid AI frenzy: Report

<o:p></o:p>Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.<o:p></o:p>

This is based on a report published by Bloomberg.<o:p></o:p>

The bank announced a net profit of S$2.39 billion ($1.78 billion) in the quarter ending December 31, marking a modest 2 per cent increase, amidst margin pressure. <o:p></o:p>

While slightly below analyst estimates, DBS proposed a bonus share issue and increased its final dividend. <o:p></o:p>

For the entirety of 2023, the bank surpassed its medium-term net profit target of S$10 billion, achieving a return on equity of 18 per cent, leading to a surge in DBS shares.<o:p></o:p>

However, last year's digital banking outages prompted a collective 21 per cent cut in variable pay for DBS' group management committee, with CEO Gupta experiencing a deeper 30 per cent reduction amounting to S$4.1 million.<o:p></o:p>

DBS's stellar performance comes amid a challenging backdrop as it grapples with the aftermath of digital banking disruptions that paralysed payment and ATM transactions across Singapore last year. <o:p></o:p>

The repercussions of these outages have led to regulatory actions, with the Monetary Authority of Singapore imposing a six-month ban on DBS from acquiring new business ventures and reducing its local branch and ATM networks. <o:p></o:p>

Despite Gupta's public apologies and assurances of prioritising the resolution of digital banking issues, the bank faced scrutiny over service reliability. <o:p></o:p>

However, DBS reiterated its commitment to enhancing customer experience, promising greater reliability and alternative channels for payments and inquiries in case of future issues.<o:p></o:p>

Gupta, at the helm of DBS since November 2009, has overseen the bank's expansion into key markets such as India, Taiwan, and mainland China, both through acquisitions and organic growth. <o:p></o:p>

Under his leadership, DBS has strengthened its wealth management arm, becoming one of Asia's largest in terms of assets under management. <o:p></o:p>

Despite the anticipated softening of interest rates and geopolitical tensions, Gupta expressed confidence in sustaining the bank's performance in the upcoming year.<o:p></o:p>

DBS's results set the tone for major Singapore banks, with rivals United Overseas Bank Ltd. and Oversea-Chinese Banking Corp set to report their results later this month. <o:p></o:p>

While DBS's performance has been propelled by elevated interest rates, analysts speculate on the sustainability of this growth trajectory amidst expectations of declining rates in the coming year. <o:p></o:p>

The outcomes of DBS's strategic initiatives to address digital banking disruptions and maintain customer trust will likely influence market perceptions of the bank's long-term resilience and growth prospects.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year. This is based on a report published by Bloomberg. The bank announced a net profit of S$2.39 billion ($1.78 billion) in the quarter ending December 31, marking a modest 2 per cent increase, amidst margin pressure. While slightly below analyst estimates, DBS proposed a bonus share issue and increased its final dividend. For the entirety of 2023, the bank surpassed its medium-term net profit target of S$10 billion, achieving a return on equity of 18 per cent, leading to a surge in DBS shares. However, last year's digital banking outages prompted a collective 21 per cent cut in variable pay for DBS' group management committee, with CEO Gupta experiencing a deeper 30 per cent reduction amounting to S$4.1 million. DBS's stellar performance comes amid a challenging backdrop as it grapples with the aftermath of digital banking disruptions that paralysed payment and ATM transactions across Singapore last year. The repercussions of these outages have led to regulatory actions, with the Monetary Authority of Singapore imposing a six-month ban on DBS from acquiring new business ventures and reducing its local branch and ATM networks. Despite Gupta's public apologies and assurances of prioritising the resolution of digital banking issues, the bank faced scrutiny over service reliability. However, DBS reiterated its commitment to enhancing customer experience, promising greater reliability and alternative channels for payments and inquiries in case of future issues. Gupta, at the helm of DBS since November 2009, has overseen the bank's expansion into key markets such as India, Taiwan, and mainland China, both through acquisitions and organic growth. Under his leadership, DBS has strengthened its wealth management arm, becoming one of Asia's largest in terms of assets under management. Despite the anticipated softening of interest rates and geopolitical tensions, Gupta expressed confidence in sustaining the bank's performance in the upcoming year. DBS's results set the tone for major Singapore banks, with rivals United Overseas Bank Ltd. and Oversea-Chinese Banking Corp set to report their results later this month. While DBS's performance has been propelled by elevated interest rates, analysts speculate on the sustainability of this growth trajectory amidst expectations of declining rates in the coming year. The outcomes of DBS's strategic initiatives to address digital banking disruptions and maintain customer trust will likely influence market perceptions of the bank's long-term resilience and growth prospects. (With inputs from Bloomberg)

DBS CEO's pay slashed following digital banking disruptions amid record profits

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Zee News Rajasthan

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