World Bank&nbsp;President&nbsp;Ajay Banga has expressed his concerns about the economic repercussions of the ongoing Israel-Gaza conflict, referring to it as an "unnecessary global economic shock".&nbsp;

Speaking on the sidelines of the World Bank-International Monetary Fund annual meetings in Morocco, Banga stressed that the conflict has not only caused a humanitarian tragedy but also has economic implications that the world can ill afford.&nbsp;

"It's a humanitarian tragedy and it's an economic shock we don't need," Banga told Reuters, highlighting the far-reaching consequences of the conflict if it continues to escalate. He pointed out that the conflict threatens to hinder central banks' efforts to achieve soft landings in various economies if it spreads further.&nbsp;

Banga noted that central banks had been gaining confidence in the possibility of achieving a soft landing before the conflict erupted. However, he maintained that the ongoing situation makes it increasingly challenging for central banks to maintain stability in their economies. He emphasised that the conflict is an unwanted disruption that could have a lasting impact on the global economic landscape.&nbsp;

The World Bank President highlighted that, unlike the initial stages of Russia's invasion of Ukraine last year, the Israel-Gaza conflict does not have a direct impact on the exports of essential commodities such as oil, grains, and fertilisers.&nbsp;

However, Banga pointed out that the conflict's effects are transmitted through financial markets. The sudden rise of dollar assets in response to the conflict could disrupt economic stability. He noted that in recent months, there had been signs of improvement, with inflation decreasing and prices and wages stabilising. Markets had also adjusted to the idea of higher interest rates in the near future. However, another prolonged conflict could upset the dynamics of these positive developments.&nbsp;

While discussing the political aspects of the conflict, Banga mentioned that the European Union initially made a mistake by announcing a complete cut-off of aid to the Palestinian Territories in response to the Hamas attack on Israel. This decision was later reversed. Banga refrained from delving into the politics of the situation, focusing instead on the development aspect. He emphasised the importance of offering support to the affected areas once the conflict subsides.&nbsp;

(With inputs from Reuters)&nbsp;

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World Bank President Ajay Banga has expressed his concerns about the economic repercussions of the ongoing Israel-Gaza conflict, referring to it as an "unnecessary global economic shock".

World Bank President Ajay Banga has expressed his concerns about the economic repercussions of the ongoing Israel-Gaza conflict, referring to it as an "unnecessary global economic shock". Speaking on the sidelines of the World Bank-International Monetary Fund annual meetings in Morocco, Banga stressed that the conflict has not only caused a humanitarian tragedy but also has economic implications that the world can ill afford. "It's a humanitarian tragedy and it's an economic shock we don't need," Banga told Reuters, highlighting the far-reaching consequences of the conflict if it continues to escalate. He pointed out that the conflict threatens to hinder central banks' efforts to achieve soft landings in various economies if it spreads further. Banga noted that central banks had been gaining confidence in the possibility of achieving a soft landing before the conflict erupted. However, he maintained that the ongoing situation makes it increasingly challenging for central banks to maintain stability in their economies. He emphasised that the conflict is an unwanted disruption that could have a lasting impact on the global economic landscape. The World Bank President highlighted that, unlike the initial stages of Russia's invasion of Ukraine last year, the Israel-Gaza conflict does not have a direct impact on the exports of essential commodities such as oil, grains, and fertilisers. However, Banga pointed out that the conflict's effects are transmitted through financial markets. The sudden rise of dollar assets in response to the conflict could disrupt economic stability. He noted that in recent months, there had been signs of improvement, with inflation decreasing and prices and wages stabilising. Markets had also adjusted to the idea of higher interest rates in the near future. However, another prolonged conflict could upset the dynamics of these positive developments. While discussing the political aspects of the conflict, Banga mentioned that the European Union initially made a mistake by announcing a complete cut-off of aid to the Palestinian Territories in response to the Hamas attack on Israel. This decision was later reversed. Banga refrained from delving into the politics of the situation, focusing instead on the development aspect. He emphasised the importance of offering support to the affected areas once the conflict subsides. (With inputs from Reuters) WATCH WION LIVE HERE

World Bank president expresses concern over Israel-Gaza conflict's economic impact 

In a significant development, the Enforcement Directorate (ED) of India has made a series of arrests linked to Chinese smartphone manufacturer Vivo in an ongoing money-laundering investigation. &nbsp;

The most recent arrest involves a Chinese national employed by Vivo, adding to the company's woes in a crucial market. The arrested individual has been sent to a three-day custody by an Indian court. &nbsp;

According to The Economic Times, the arrested Chinese national, Guangwen Kyang, is also known as Andrew Kuang. In addition to Kuang, Lava International's Managing Director, Hari Om Rai, another company executive named Rajan Malik, and chartered accountant Nitin Garg have been taken into custody.

While the ED sought a ten-day remand for the accused, the court has decided to keep them in custody until October 13. &nbsp;

Vivo has&nbsp;denied the allegations,&nbsp;expressing "deep concerns" about the situation and its intent to explore all available legal avenues.

The second-largest smartphone brand in India, commanding a 17 per cent market share, has been embroiled in a series of troubles within the country, casting a shadow on its operations.&nbsp;

Earlier this month, Indian police formally accused Vivo Mobile of assisting in the illegal transfer of funds to NewsClick, a news portal under investigation for spreading Chinese propaganda.&nbsp;

In August 2022, India's Directorate of Revenue Intelligence (DRI) issued a show-cause notice to Vivo, alleging that the company had evaded taxes amounting to 22.1 billion Indian rupees ($280 million).&nbsp;

Furthermore, in July 2022, India's financial crime agency blocked 119 bank accounts associated with Vivo's India operations and its affiliates, which held 4.65 billion rupees ($58.76 million). This action was taken as part of an investigation into alleged money laundering by the company.

(With inputs from Reuters)

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In a significant development, the Enforcement Directorate (ED) of India has made a series of arrests linked to Chinese smartphone manufacturer Vivo in an ongoing money-laundering investigation.

In a significant development, the Enforcement Directorate (ED) of India has made a series of arrests linked to Chinese smartphone manufacturer Vivo in an ongoing money-laundering investigation. The most recent arrest involves a Chinese national employed by Vivo, adding to the company's woes in a crucial market. The arrested individual has been sent to a three-day custody by an Indian court. According to The Economic Times, the arrested Chinese national, Guangwen Kyang, is also known as Andrew Kuang. In addition to Kuang, Lava International's Managing Director, Hari Om Rai, another company executive named Rajan Malik, and chartered accountant Nitin Garg have been taken into custody. While the ED sought a ten-day remand for the accused, the court has decided to keep them in custody until October 13. Vivo has denied the allegations, expressing "deep concerns" about the situation and its intent to explore all available legal avenues. The second-largest smartphone brand in India, commanding a 17 per cent market share, has been embroiled in a series of troubles within the country, casting a shadow on its operations. Earlier this month, Indian police formally accused Vivo Mobile of assisting in the illegal transfer of funds to NewsClick, a news portal under investigation for spreading Chinese propaganda. In August 2022, India's Directorate of Revenue Intelligence (DRI) issued a show-cause notice to Vivo, alleging that the company had evaded taxes amounting to 22.1 billion Indian rupees ($280 million). Furthermore, in July 2022, India's financial crime agency blocked 119 bank accounts associated with Vivo's India operations and its affiliates, which held 4.65 billion rupees ($58.76 million). This action was taken as part of an investigation into alleged money laundering by the company. (With inputs from Reuters) WATCH WION LIVE HERE

Vivo's India troubles deepen with arrests in money laundering case

The Indian Space Promotion and Authorisation Centre (IN-SPACe) has unveiled a promising outlook for India's space economy, forecasting it to reach $44 billion by 2033, a remarkable surge from the current $8.4 billion.&nbsp;

With India accounting for just 2 per cent of the global space market, IN-SPACe aims to significantly enhance its position, targeting 8 per cent of the worldwide market share by 2033, including $11 billion in exports over the next decade.&nbsp;

Pawan Goenka, Chairman of IN-SPACe, shared these insights during the recent presentation, emphasising the potential for India's space ecosystem.&nbsp;

These projections also align with IN-SPACe's goal to increase domestic market share to $33 billion and export share to $11 billion by 2033, requiring an estimated $22 billion in investments over the next 10 years.&nbsp;

According to reports, to achieve this visionary target, IN-SPACe's comprehensive approach centres around ten key strategic capabilities, encompassing demand generation, earth observation, communication and navigation platforms, research and development, and international collaboration, among others .This multifaceted strategy seeks to fortify India's position in the global space economy while promoting participation from non-governmental entities.&nbsp;

Furthermore, IN-SPACe has outlined its vision for a specialised launch centre dedicated to small satellites within the private sector, expected to become operational in Tuticorin within two years. Although Isro's rockets won't launch from this centre due to its smaller scale compared to the Satish Dhawan Space Centre, it marks a significant step toward supporting private sector involvement in space activities.&nbsp;

IN-SPACe's grand vision extends to strengthening the NavIC constellation and expanding its market reach in the Indian Ocean Region. It also focuses on enhancing India's space education and skill transfer programs to nurture talent and expertise. The establishment of a space outreach wing will further assess value propositions, prioritise sectors, and boost awareness within the space ecosystem.&nbsp;

These initiatives are part of IN-SPACe's comprehensive strategy to shape India's space economy and solidify its standing on the global stage. &nbsp;

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The Indian Space Promotion and Authorisation Centre (IN-SPACe) has unveiled a promising outlook for India's space economy, forecasting it to reach $44 billion by 2033, a remarkable surge from the current $8.

The Indian Space Promotion and Authorisation Centre (IN-SPACe) has unveiled a promising outlook for India's space economy, forecasting it to reach $44 billion by 2033, a remarkable surge from the current $8.4 billion. With India accounting for just 2 per cent of the global space market, IN-SPACe aims to significantly enhance its position, targeting 8 per cent of the worldwide market share by 2033, including $11 billion in exports over the next decade. Pawan Goenka, Chairman of IN-SPACe, shared these insights during the recent presentation, emphasising the potential for India's space ecosystem. These projections also align with IN-SPACe's goal to increase domestic market share to $33 billion and export share to $11 billion by 2033, requiring an estimated $22 billion in investments over the next 10 years. According to reports, to achieve this visionary target, IN-SPACe's comprehensive approach centres around ten key strategic capabilities, encompassing demand generation, earth observation, communication and navigation platforms, research and development, and international collaboration, among others .This multifaceted strategy seeks to fortify India's position in the global space economy while promoting participation from non-governmental entities. Furthermore, IN-SPACe has outlined its vision for a specialised launch centre dedicated to small satellites within the private sector, expected to become operational in Tuticorin within two years. Although Isro's rockets won't launch from this centre due to its smaller scale compared to the Satish Dhawan Space Centre, it marks a significant step toward supporting private sector involvement in space activities. IN-SPACe's grand vision extends to strengthening the NavIC constellation and expanding its market reach in the Indian Ocean Region. It also focuses on enhancing India's space education and skill transfer programs to nurture talent and expertise. The establishment of a space outreach wing will further assess value propositions, prioritise sectors, and boost awareness within the space ecosystem. These initiatives are part of IN-SPACe's comprehensive strategy to shape India's space economy and solidify its standing on the global stage. WATCH WION LIVE HERE

India's space economy set to soar to $44 billion by 2033: IN-SPACe chairman 

A recent analysis published by Barclays Plc has revealed that India needs to achieve an annual economic growth rate of 8 per cent to outpace China and become the leading contributor to the global economy,

The study emphasises the necessity for substantial investment, particularly in traditional sectors such as mining, utilities, transportation, and storage, which are believed to have significant ripple effects on the broader economy. &nbsp;

According to The Economic Times, Barclays' senior economist in Mumbai, Rahul Bajoria, notes that these sectors have been overlooked in favour of newer industries like telecommunications and digital technology in recent years. Consequently, there is a pressing need for increased investments in these traditional areas, particularly from the government, to address capacity constraints.&nbsp;

"Higher investment, especially in traditional sectors, should also have a positive impact on employment and household income, which is likely to be a key deliverable of the economic growth story pursued by policymakers," The Economic Times quotes Bajoria as saying while emphasising on the broader benefits of higher investment.&nbsp;

This suggests that not only would such investment stimulate economic growth, but it would also have a direct impact on improving the livelihoods of the Indian population.&nbsp;

Furthermore, the analysis from Barclays underscores that India had experienced an average economic growth rate of around 8 per cent from 2005 to 2010, a pace that could potentially be regained after the upcoming general elections, provided the new government aims for such a growth rate while maintaining macroeconomic stability. &nbsp;

With an ambitious goal of 8 per cent growth, India could be in a position to become a prominent contributor to global economic growth and reduce the gap with China.&nbsp;

According to Barclays, China's contribution to the global gross domestic product is estimated at approximately 26 per cent in&nbsp;the five-year period leading up to 2028, while India's contribution stands at an estimated 16 per cent , assuming a GDP growth rate of 6.1 per cent over&nbsp;the same period. Achieving 8 per cent growth could bring India's contribution much closer to China's.&nbsp;

In alignment with the analysis from Barclays, the International Monetary Fund (IMF) recently released a report on India's economic outlook, raising its growth forecast for the fiscal year 2024 from 6.1 per cent to 6.3 per cent. Reports suggest this upward revision reflects a "stronger-than-expected consumption during April-June," indicating positive signs for India's economic performance.&nbsp;

However, while the Indian government has been increasing infrastructure spending in recent years, reports indicate that allocating a record 10 trillion rupees in the current fiscal year through March 2024, it is unlikely to maintain such a robust pace of investment in capital projects.

This shift towards private sector involvement in investment has been echoed by Goldman Sachs Group Inc. This implies that India's journey to 8 per cent annual growth will require both public and private sector collaboration and strategic investments in crucial sectors. &nbsp;

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A recent analysis published by Barclays Plc has revealed that India needs to achieve an annual economic growth rate of 8 per cent to outpace China and become the leading contributor to the global economy, The study emphasises the necessity for substantial investment, particularly in traditional sectors such as mining, utilities, transportation, and storage, which are believed to have significant ripple effects on the broader economy.

A recent analysis published by Barclays Plc has revealed that India needs to achieve an annual economic growth rate of 8 per cent to outpace China and become the leading contributor to the global economy, The study emphasises the necessity for substantial investment, particularly in traditional sectors such as mining, utilities, transportation, and storage, which are believed to have significant ripple effects on the broader economy. According to The Economic Times, Barclays' senior economist in Mumbai, Rahul Bajoria, notes that these sectors have been overlooked in favour of newer industries like telecommunications and digital technology in recent years. Consequently, there is a pressing need for increased investments in these traditional areas, particularly from the government, to address capacity constraints. "Higher investment, especially in traditional sectors, should also have a positive impact on employment and household income, which is likely to be a key deliverable of the economic growth story pursued by policymakers," The Economic Times quotes Bajoria as saying while emphasising on the broader benefits of higher investment. This suggests that not only would such investment stimulate economic growth, but it would also have a direct impact on improving the livelihoods of the Indian population. Furthermore, the analysis from Barclays underscores that India had experienced an average economic growth rate of around 8 per cent from 2005 to 2010, a pace that could potentially be regained after the upcoming general elections, provided the new government aims for such a growth rate while maintaining macroeconomic stability. With an ambitious goal of 8 per cent growth, India could be in a position to become a prominent contributor to global economic growth and reduce the gap with China. According to Barclays, China's contribution to the global gross domestic product is estimated at approximately 26 per cent in the five-year period leading up to 2028, while India's contribution stands at an estimated 16 per cent , assuming a GDP growth rate of 6.1 per cent over the same period. Achieving 8 per cent growth could bring India's contribution much closer to China's. In alignment with the analysis from Barclays, the International Monetary Fund (IMF) recently released a report on India's economic outlook, raising its growth forecast for the fiscal year 2024 from 6.1 per cent to 6.3 per cent. Reports suggest this upward revision reflects a "stronger-than-expected consumption during April-June," indicating positive signs for India's economic performance. However, while the Indian government has been increasing infrastructure spending in recent years, reports indicate that allocating a record 10 trillion rupees in the current fiscal year through March 2024, it is unlikely to maintain such a robust pace of investment in capital projects. This shift towards private sector involvement in investment has been echoed by Goldman Sachs Group Inc. This implies that India's journey to 8 per cent annual growth will require both public and private sector collaboration and strategic investments in crucial sectors. WATCH WION LIVE HERE

India needs 8 pc economic growth to rival China's global dominance: Barclays

Recent data from Australia is giving out contrasting sentiments between the business sector and households. According to a report by Bloomberg, business conditions continue to exhibit resilience in the face of heightened price pressures, however, consumer confidence remains in a "deeply pessimistic" state. This divergence highlights the varying responses of firms and households to the tightening monetary policies.

According to a National Australia Bank Ltd. survey released on Tuesday, business conditions, which gauge sales, employment, and profitability, eased slightly by 3 points to 11 in September but remained above the average level since the beginning of the year. Confidence among businesses remained steady at 1 point.

"The economy has remained in reasonable shape through the middle of the year. The survey showed some positive signs for inflation, with cost pressures and price growth easing,” Bloomberg quoted Alan Oster, the Chief Economist at NAB.

In contrast, a separate household survey from Westpac Banking Corp., conducted from October 2 to 5, revealed that consumer sentiment inched up by 2.9 per cent to reach 82 points in October. However, pessimists significantly outnumbered optimists, indicating a prevailing sense of pessimism among consumers. This index has largely fluctuated within a range of 78-86 over the past year.

These surveys underscore the persistent divergence between Australia's heavily-indebted households and its corporate sector, suggesting that businesses are better equipped to manage the impact of higher interest rates. NAB's survey also highlighted positive indicators such as forward orders being in positive territory.

The Reserve Bank of Australia (RBA) has been in a watch-and-wait mode after implementing 4 percentage points of rate hikes since May of the previous year, with the aim of reining in inflation. Although consumer prices have started to ease, a tight labour market and rising wage growth indicate that policymakers are prepared to take further action if necessary.

Bloomberg cited Matthew Hassan, a Senior Economist at Westpac, who commented on the consumer sentiment, saying, "The consumer mood has improved slightly, but optimism remains in extremely short supply."

He noted that while there are some faint signals of hope regarding family finances and job outlook, these positive aspects are overshadowed by concerns about high inflation and renewed worries about interest rate hikes.

Notably, the sub-index measuring the outlook for household spending, known as "the time to buy a major household item," surged by 7.6 per cent. This uptick, if sustained, could be indicative of easing inflation pressures for consumers.

The RBA's next meeting is scheduled for November 7, and during the same week, it will release detailed forecasts. Economists are divided on whether the central bank will implement one final rate hike, potentially raising rates to 4.35 per cent.

(With inputs from Bloomberg)

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Recent data from Australia is giving out contrasting sentiments between the business sector and households. According to a report by Bloomberg, business conditions continue to exhibit resilience in the face of heightened price pressures, however, consumer confidence remains in a "deeply pessimistic" state.

Recent data from Australia is giving out contrasting sentiments between the business sector and households. According to a report by Bloomberg, business conditions continue to exhibit resilience in the face of heightened price pressures, however, consumer confidence remains in a "deeply pessimistic" state. This divergence highlights the varying responses of firms and households to the tightening monetary policies. According to a National Australia Bank Ltd. survey released on Tuesday, business conditions, which gauge sales, employment, and profitability, eased slightly by 3 points to 11 in September but remained above the average level since the beginning of the year. Confidence among businesses remained steady at 1 point. "The economy has remained in reasonable shape through the middle of the year. The survey showed some positive signs for inflation, with cost pressures and price growth easing,” Bloomberg quoted Alan Oster, the Chief Economist at NAB. In contrast, a separate household survey from Westpac Banking Corp., conducted from October 2 to 5, revealed that consumer sentiment inched up by 2.9 per cent to reach 82 points in October. However, pessimists significantly outnumbered optimists, indicating a prevailing sense of pessimism among consumers. This index has largely fluctuated within a range of 78-86 over the past year. These surveys underscore the persistent divergence between Australia's heavily-indebted households and its corporate sector, suggesting that businesses are better equipped to manage the impact of higher interest rates. NAB's survey also highlighted positive indicators such as forward orders being in positive territory. The Reserve Bank of Australia (RBA) has been in a watch-and-wait mode after implementing 4 percentage points of rate hikes since May of the previous year, with the aim of reining in inflation. Although consumer prices have started to ease, a tight labour market and rising wage growth indicate that policymakers are prepared to take further action if necessary. Bloomberg cited Matthew Hassan, a Senior Economist at Westpac, who commented on the consumer sentiment, saying, "The consumer mood has improved slightly, but optimism remains in extremely short supply." He noted that while there are some faint signals of hope regarding family finances and job outlook, these positive aspects are overshadowed by concerns about high inflation and renewed worries about interest rate hikes. Notably, the sub-index measuring the outlook for household spending, known as "the time to buy a major household item," surged by 7.6 per cent. This uptick, if sustained, could be indicative of easing inflation pressures for consumers. The RBA's next meeting is scheduled for November 7, and during the same week, it will release detailed forecasts. Economists are divided on whether the central bank will implement one final rate hike, potentially raising rates to 4.35 per cent. (With inputs from Bloomberg) WATCH WION LIVE HERE

Australian consumer sentiment inches up from record lows as businesses remain resilient

The South African rand endured a significant setback on Thursday, sliding to a four-month low, as concerns over the currency's vulnerability mounted. Investors eagerly await cues from upcoming U.S. employment data that is supposed to be released on&nbsp;Friday.

At 1505 GMT, the rand was exchanging at 19.5700 against the U.S. dollar, reflecting a decline of nearly 1.2 per cent from its prior closing rate. Earlier in the day, it touched 19.6325, marking its lowest point since June. In contrast, the U.S. dollar exhibited a minor weakening of approximately 0.15 per cent when measured against a basket of global currencies.

Reuters quoted Danny Greeff, Co-Head of Africa at ETM Analytics, who said, "Given South Africa's heightened fiscal risks and deteriorating economic fundamentals, the ZAR lacks resilience against the broader ebb and flow of market sentiment." He underscored the importance of the forthcoming U.S. employment data, indicating its potential to shape the rand's trajectory in the upcoming week.

The rand has already witnessed a decline of over 3 per cent against the U.S. dollar this month and a substantial 13 per cent depreciation over the course of the year. Despite these challenges, Central Bank Governor Lesetja Kganyago clarified that the bank had no intentions of intervening to protect the local currency. Reuters quoted her as saying during a webinar, "It's a futile exercise trying to defend the exchange rate," highlighting the rand's involvement in the ongoing realignment of global currencies.

Much like other risk-sensitive currencies, the rand frequently reacts to international variables, including shifts in the U.S. dollar and economic data from the United States, particularly in the absence of significant local data indicators.

Meanwhile, on the Johannesburg Stock Exchange, the blue-chip Top-40 index exhibited a closing surge of approximately 1 per cent. South Africa's benchmark 2030 government bond also displayed strength, with the yield declining by 8 basis points to 11.005 per cent.

(With inputs from Reuters)

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The South African rand endured a significant setback on Thursday, sliding to a four-month low, as concerns over the currency's vulnerability mounted. Investors eagerly await cues from upcoming U.

The South African rand endured a significant setback on Thursday, sliding to a four-month low, as concerns over the currency's vulnerability mounted. Investors eagerly await cues from upcoming U.S. employment data that is supposed to be released on Friday. At 1505 GMT, the rand was exchanging at 19.5700 against the U.S. dollar, reflecting a decline of nearly 1.2 per cent from its prior closing rate. Earlier in the day, it touched 19.6325, marking its lowest point since June. In contrast, the U.S. dollar exhibited a minor weakening of approximately 0.15 per cent when measured against a basket of global currencies. Reuters quoted Danny Greeff, Co-Head of Africa at ETM Analytics, who said, "Given South Africa's heightened fiscal risks and deteriorating economic fundamentals, the ZAR lacks resilience against the broader ebb and flow of market sentiment." He underscored the importance of the forthcoming U.S. employment data, indicating its potential to shape the rand's trajectory in the upcoming week. The rand has already witnessed a decline of over 3 per cent against the U.S. dollar this month and a substantial 13 per cent depreciation over the course of the year. Despite these challenges, Central Bank Governor Lesetja Kganyago clarified that the bank had no intentions of intervening to protect the local currency. Reuters quoted her as saying during a webinar, "It's a futile exercise trying to defend the exchange rate," highlighting the rand's involvement in the ongoing realignment of global currencies. Much like other risk-sensitive currencies, the rand frequently reacts to international variables, including shifts in the U.S. dollar and economic data from the United States, particularly in the absence of significant local data indicators. Meanwhile, on the Johannesburg Stock Exchange, the blue-chip Top-40 index exhibited a closing surge of approximately 1 per cent. South Africa's benchmark 2030 government bond also displayed strength, with the yield declining by 8 basis points to 11.005 per cent. (With inputs from Reuters) WATCH WION LIVE HERE

South African rand tumbles to 4-month low amidst anticipation of US jobs data

Less than a year after the euro stood on par with the US dollar, concerns of the common currency sliding back to that level are once again surfacing in market discussions, Bloomberg reported.

In recent weeks, financial analysts at firms such as Nomura International Plc, Rabobank, and ING Groep NV have revised their forecasts, bringing the euro close to the $1 mark. The term "parity" has seen a significant uptick in Google searches, and the probability of the euro reaching parity by early next year has more than doubled, as per a Bloomberg options model.

As per the Bloomberg report, the resurgence of these concerns can be attributed to multiple factors. US yields have been climbing rapidly, bolstering the strength of the dollar. Domestically, growth in the eurozone's major economies remains sluggish, renewed worries about Italy's high government debt load have emerged, and increasing energy prices are rekindling fears of inflation.

Jordan Rochester, an FX strategist at Nomura, was quoted by Bloomberg as saying, "If oil prices surge past $110 per barrel, it will be difficult for the euro to avoid parity." He also mentioned, "The levels of US rates suggest that the euro should be at $1.01 to $1.03 already." Currently, the euro is trading around $1.06, with Rochester revising his year-end forecast from $1.06 to $1.02.

Citing Stephen Jen, CEO at Eurizon SLJ Capital, who emphasised that even if parity isn't reached, the Bloomberg report indicated that the growing risk of such an occurrence indicates that the odds are not in favour of the euro. He attributed the euro's weakness to the sluggish European and Chinese economies, contrasted with strong economic activity in the United States, which is creating a scenario of continued dollar strength and euro vulnerability.

Additionally, Michael Metcalfe, Global Head of Macro Strategy at State Street Global Markets, mentioned that investors continue to show a preference for maintaining their underweight euro positions. The evolving economic landscape and the surge in US yields have cast a shadow of uncertainty over the euro's future trajectory, making it a crucial element in the ongoing market dynamics.

(With inputs from Bloomberg)

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Less than a year after the euro stood on par with the US dollar, concerns of the common currency sliding back to that level are once again surfacing in market discussions, Bloomberg reported.

Less than a year after the euro stood on par with the US dollar, concerns of the common currency sliding back to that level are once again surfacing in market discussions, Bloomberg reported. In recent weeks, financial analysts at firms such as Nomura International Plc, Rabobank, and ING Groep NV have revised their forecasts, bringing the euro close to the $1 mark. The term "parity" has seen a significant uptick in Google searches, and the probability of the euro reaching parity by early next year has more than doubled, as per a Bloomberg options model. As per the Bloomberg report, the resurgence of these concerns can be attributed to multiple factors. US yields have been climbing rapidly, bolstering the strength of the dollar. Domestically, growth in the eurozone's major economies remains sluggish, renewed worries about Italy's high government debt load have emerged, and increasing energy prices are rekindling fears of inflation. Jordan Rochester, an FX strategist at Nomura, was quoted by Bloomberg as saying, "If oil prices surge past $110 per barrel, it will be difficult for the euro to avoid parity." He also mentioned, "The levels of US rates suggest that the euro should be at $1.01 to $1.03 already." Currently, the euro is trading around $1.06, with Rochester revising his year-end forecast from $1.06 to $1.02. Citing Stephen Jen, CEO at Eurizon SLJ Capital, who emphasised that even if parity isn't reached, the Bloomberg report indicated that the growing risk of such an occurrence indicates that the odds are not in favour of the euro. He attributed the euro's weakness to the sluggish European and Chinese economies, contrasted with strong economic activity in the United States, which is creating a scenario of continued dollar strength and euro vulnerability. Additionally, Michael Metcalfe, Global Head of Macro Strategy at State Street Global Markets, mentioned that investors continue to show a preference for maintaining their underweight euro positions. The evolving economic landscape and the surge in US yields have cast a shadow of uncertainty over the euro's future trajectory, making it a crucial element in the ongoing market dynamics. (With inputs from Bloomberg) WATCH WION LIVE HERE

Euro faces pressure as parity concerns resurface amid surging US yields

In the wake of Hamas' recent attack on Israel, the European Commission has taken a significant step by freezing all development aid to Palestinians, totalling 691 million euros ($729 million). This move comes as a response to the escalation of violence in the region, marking a substantial policy shift.

A Reuters report cited Oliver Varhelyi, the European Commissioner for Neighbourhood and Enlargement, underscored the gravity of the situation, stating, "The scale of terror and brutality against Israel and its people is a turning point. There can be no business as usual."

Hamas' attack, which resulted in the death of 700 Israelis and the abduction of dozens, represents the deadliest incursion since the Yom Kippur war half a century ago. In response, Israel launched its most extensive bombardment of Gaza, leading to the tragic loss of over 400 lives.

Varhelyi further emphasised the suspension of new budget proposals for Palestinian aid until further notice, emphasising the need to prioritise efforts aimed at establishing peace, tolerance, and coexistence in the region. Reuters quoted him as saying, "The foundations for peace, tolerance, and co-existence must now be addressed," underlining the urgency of the situation.

He added that there had been an incitement to hatred, violence, and glorification of terror that had affected the thinking of many individuals. He emphasised the urgent need for action, stating that it was required immediately.

This decision has elicited responses from other European nations as well. Austria has announced the suspension of aid amounting to tens of millions of euros to Palestinians, citing the need to ensure that funds do not fall into the wrong hands. Meanwhile, Germany has initiated a review of its support, reflecting the growing concern and commitment to addressing the complexities of the situation in the West Asia.

(With inputs from Reuters)

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In the wake of Hamas' recent attack on Israel, the European Commission has taken a significant step by freezing all development aid to Palestinians, totalling 691 million euros ($729 million).

In the wake of Hamas' recent attack on Israel, the European Commission has taken a significant step by freezing all development aid to Palestinians, totalling 691 million euros ($729 million). This move comes as a response to the escalation of violence in the region, marking a substantial policy shift. A Reuters report cited Oliver Varhelyi, the European Commissioner for Neighbourhood and Enlargement, underscored the gravity of the situation, stating, "The scale of terror and brutality against Israel and its people is a turning point. There can be no business as usual." Hamas' attack, which resulted in the death of 700 Israelis and the abduction of dozens, represents the deadliest incursion since the Yom Kippur war half a century ago. In response, Israel launched its most extensive bombardment of Gaza, leading to the tragic loss of over 400 lives. Varhelyi further emphasised the suspension of new budget proposals for Palestinian aid until further notice, emphasising the need to prioritise efforts aimed at establishing peace, tolerance, and coexistence in the region. Reuters quoted him as saying, "The foundations for peace, tolerance, and co-existence must now be addressed," underlining the urgency of the situation. He added that there had been an incitement to hatred, violence, and glorification of terror that had affected the thinking of many individuals. He emphasised the urgent need for action, stating that it was required immediately. This decision has elicited responses from other European nations as well. Austria has announced the suspension of aid amounting to tens of millions of euros to Palestinians, citing the need to ensure that funds do not fall into the wrong hands. Meanwhile, Germany has initiated a review of its support, reflecting the growing concern and commitment to addressing the complexities of the situation in the West Asia. (With inputs from Reuters) WATCH WION LIVE HERE

EU halts Palestinian aid after Hamas attack on Israel

As tensions escalate in the West Asia, investors around the globe are bracing themselves for potential market volatility, with a particular focus on the oil market and the risk of prices soaring even higher. The situation in the region remains fluid as Israel's troops engage in a fierce battle with Hamas gunmen who crossed into Israel from Gaza. This has sparked concerns of a broader conflict that could embroil other countries, including Iran, and lead to a sustained increase in oil prices.

The S&amp;P 500 has exhibited a mixed response, rebounding by 0.5 per cent, while Brent crude oil prices have surged approximately 4 per cent to reach $88.10 per barrel. Gold, a traditional safe-haven asset, saw an increase of 1.2 per cent to reach $1,854.10 per ounce.

Reuters quoted Mohit Kumar, Chief Europe Economist at Jefferies in London, as saying, "The coming days are likely to be driven by geopolitical risks, rather than fundamentals. For markets, the geopolitical risks add another uncertainty for investors when convictions are already low."

Geopolitical events have typically had short-lived effects on financial markets. However, this escalating conflict comes at a time when investors are already grappling with significant uncertainty due to a historic sell-off in U.S. Treasuries and stock market volatility. Market experts believe that the repercussions of this conflict could exacerbate several ongoing trends that have weighed on risk assets in recent months.

One of the key concerns is the potential for a rebound in oil prices, which could negatively impact U.S. economic growth and threaten the "soft landing narrative" that has buoyed stocks this year. After months of steady increases, Brent crude reached its highest level since late 2022 in September, although prices had been retreating somewhat this month.

Tina Fordham, a geopolitical strategist and founder of Fordham Global Foresight, cautioned, "The worst-case scenario from a geopolitical risk perspective would be a full-scale confrontation between Israel and Iran. A return to the risk of direct military tensions - especially the risk of Israeli attacks on Iran's nuclear facilities - would likely have systemic impact," Reuters quoted her. &nbsp;A widening conflict could keep oil prices elevated, potentially contributing to inflation, further complicating matters for central banks worldwide, including the Federal Reserve.

According to Reuters, Paul Nolte, Senior Wealth Advisor and Market Strategist at Murphy &amp; Sylvest Wealth Management, emphasised, "All of this is going to circle around oil. Energy is going to be the key here as to whether the impact on the economy is going to be temporary or longer-lasting."

While U.S. equities have been under pressure due to rising Treasury yields, with the S&amp;P 500 down roughly 6 per cent &nbsp;from its late July highs, yields on the benchmark 10-year U.S. Treasury bonds have reached their highest levels in over a decade and a half. The upcoming U.S. earnings season and inflation data scheduled for Thursday are adding to investor unease.

Reuters cited Emmanuel Cau, Barclays' Head of European Equity Strategy, who indicated that he believed the situation was an additional cause for concern. He noted that the timing was less than ideal, citing that the commodity market was already under strain, and the bond market was similarly stressed.

Amidst the turmoil, shares of Israeli companies on Wall Street have seen declines, with companies like Mobileye Global and Solaredge Technologies both experiencing approximately 4 per cent &nbsp;drops.

In the safe-haven government bond markets, concerns about renewed tensions in the West Asia have alleviated some of the selling pressure that had caused 10-year borrowing costs to rise across the U.S. and Germany. U.S. bond markets were closed on Monday, but U.S. Treasury futures showed an increase as investors sought safety.

Althea Spinozzi, Senior Fixed Income Strategist at Saxo Bank, noted that while heightened tensions in Israel might make U.S. Treasuries more attractive to investors seeking safety, the risk of rising commodity prices and impending Treasury auctions could limit any significant decline in yields. "Within this environment, we remain defensive and wary of duration," Reuters quoted her as saying.

(With inputs from Reuters)

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As tensions escalate in the West Asia, investors around the globe are bracing themselves for potential market volatility, with a particular focus on the oil market and the risk of prices soaring even higher.

As tensions escalate in the West Asia, investors around the globe are bracing themselves for potential market volatility, with a particular focus on the oil market and the risk of prices soaring even higher. The situation in the region remains fluid as Israel's troops engage in a fierce battle with Hamas gunmen who crossed into Israel from Gaza. This has sparked concerns of a broader conflict that could embroil other countries, including Iran, and lead to a sustained increase in oil prices. The S&P 500 has exhibited a mixed response, rebounding by 0.5 per cent, while Brent crude oil prices have surged approximately 4 per cent to reach $88.10 per barrel. Gold, a traditional safe-haven asset, saw an increase of 1.2 per cent to reach $1,854.10 per ounce. Reuters quoted Mohit Kumar, Chief Europe Economist at Jefferies in London, as saying, "The coming days are likely to be driven by geopolitical risks, rather than fundamentals. For markets, the geopolitical risks add another uncertainty for investors when convictions are already low." Geopolitical events have typically had short-lived effects on financial markets. However, this escalating conflict comes at a time when investors are already grappling with significant uncertainty due to a historic sell-off in U.S. Treasuries and stock market volatility. Market experts believe that the repercussions of this conflict could exacerbate several ongoing trends that have weighed on risk assets in recent months. One of the key concerns is the potential for a rebound in oil prices, which could negatively impact U.S. economic growth and threaten the "soft landing narrative" that has buoyed stocks this year. After months of steady increases, Brent crude reached its highest level since late 2022 in September, although prices had been retreating somewhat this month. Tina Fordham, a geopolitical strategist and founder of Fordham Global Foresight, cautioned, "The worst-case scenario from a geopolitical risk perspective would be a full-scale confrontation between Israel and Iran. A return to the risk of direct military tensions - especially the risk of Israeli attacks on Iran's nuclear facilities - would likely have systemic impact," Reuters quoted her. A widening conflict could keep oil prices elevated, potentially contributing to inflation, further complicating matters for central banks worldwide, including the Federal Reserve. According to Reuters, Paul Nolte, Senior Wealth Advisor and Market Strategist at Murphy & Sylvest Wealth Management, emphasised, "All of this is going to circle around oil. Energy is going to be the key here as to whether the impact on the economy is going to be temporary or longer-lasting." While U.S. equities have been under pressure due to rising Treasury yields, with the S&P 500 down roughly 6 per cent from its late July highs, yields on the benchmark 10-year U.S. Treasury bonds have reached their highest levels in over a decade and a half. The upcoming U.S. earnings season and inflation data scheduled for Thursday are adding to investor unease. Reuters cited Emmanuel Cau, Barclays' Head of European Equity Strategy, who indicated that he believed the situation was an additional cause for concern. He noted that the timing was less than ideal, citing that the commodity market was already under strain, and the bond market was similarly stressed. Amidst the turmoil, shares of Israeli companies on Wall Street have seen declines, with companies like Mobileye Global and Solaredge Technologies both experiencing approximately 4 per cent drops. In the safe-haven government bond markets, concerns about renewed tensions in the West Asia have alleviated some of the selling pressure that had caused 10-year borrowing costs to rise across the U.S. and Germany. U.S. bond markets were closed on Monday, but U.S. Treasury futures showed an increase as investors sought safety. Althea Spinozzi, Senior Fixed Income Strategist at Saxo Bank, noted that while heightened tensions in Israel might make U.S. Treasuries more attractive to investors seeking safety, the risk of rising commodity prices and impending Treasury auctions could limit any significant decline in yields. "Within this environment, we remain defensive and wary of duration," Reuters quoted her as saying. (With inputs from Reuters) WATCH WION LIVE HERE

West Asia turmoil sparks investor concerns over oil price surge

The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery. Despite acknowledging the "remarkable strength" of the U.S. economy, the IMF has trimmed its global real GDP growth forecast for 2024 by 0.1 percentage points to 2.9 per cent, from its July projection, while maintaining the 2023 growth forecast at 3.0 per cent. In comparison, world output expanded by 3.5 per cent in 2022.

Reuters cited Pierre-Olivier Gourinchas, Chief Economist at the IMF, who noted that while the global economy is recovering from the COVID-19 pandemic, Russia's invasion of Ukraine, and last year's energy crisis, growth trends vary widely across different regions. He expressed concerns about medium-term growth prospects, describing them as "mediocre." Gourinchas also highlighted several risks, including the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and resurgence in inflation.

Regarding the recent Israel-Palestinian conflict, Gourinchas stated that it was too early to assess its potential impact on the global economy, emphasising the need to consider various scenarios that have yet to be explored.

The IMF's outlook underscores the challenges facing the global economy, characterised by the persistent effects of the pandemic, Russia's conflict in Ukraine, rising interest rates, extreme weather events, and reduced fiscal support. The total global output in 2023 is expected to be 3.4 per cent lower than pre-pandemic projections, equating to approximately $3.6 trillion.

Gourinchas described the current state of the global economy as "limping along" and falling short of a full recovery. The IMF's medium-term outlook predicts growth of 3.1 per cent in 2028, a significant drop from the 4.9 per cent forecast made just before the global financial crisis of 2008-2009.

Regarding inflation, the IMF expects a decline due to lower energy and food prices. It anticipates a drop in annual average inflation to 6.9 per cent in 2023, down from 8.7 per cent in 2022, and further to 5.8 per cent in 2024. Core inflation, which excludes food and energy prices, is expected to decrease gradually, reaching 6.3 per cent in 2023 and 5.3 per cent in 2024.

Gourinchas cautioned against premature interest rate cuts, citing strong labour markets and the absence of a wage-price spiral despite robust employment and low unemployment rates in most advanced economies.

The IMF recommended that countries remain vigilant with their monetary policies until inflation shows sustained decline and urged them to rebuild fiscal buffers to address future challenges or shocks.

In terms of growth, the IMF raised its growth forecast for the United States, citing strong business investment and consumption, making it the only major economy surpassing pre-pandemic projections. In contrast, China's GDP growth is expected to slow to 5.0 per cent in 2023 and 4.2 per cent in 2024, primarily due to a real estate crisis and weak external demand.

The IMF also downgraded its growth estimates for the euro area to 0.7 per cent in 2023 and 1.2 per cent in 2024, while the UK saw its growth forecast revised upward for 2023 but lowered for 2024. Japan is expected to experience growth of 2.0 per cent in 2023, mainly driven by pent-up demand, tourism, monetary policy, and auto exports, with a stable outlook for 2024.

(Inputs from Reuters)

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The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery.

The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery. Despite acknowledging the "remarkable strength" of the U.S. economy, the IMF has trimmed its global real GDP growth forecast for 2024 by 0.1 percentage points to 2.9 per cent, from its July projection, while maintaining the 2023 growth forecast at 3.0 per cent. In comparison, world output expanded by 3.5 per cent in 2022. Reuters cited Pierre-Olivier Gourinchas, Chief Economist at the IMF, who noted that while the global economy is recovering from the COVID-19 pandemic, Russia's invasion of Ukraine, and last year's energy crisis, growth trends vary widely across different regions. He expressed concerns about medium-term growth prospects, describing them as "mediocre." Gourinchas also highlighted several risks, including the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and resurgence in inflation. Regarding the recent Israel-Palestinian conflict, Gourinchas stated that it was too early to assess its potential impact on the global economy, emphasising the need to consider various scenarios that have yet to be explored. The IMF's outlook underscores the challenges facing the global economy, characterised by the persistent effects of the pandemic, Russia's conflict in Ukraine, rising interest rates, extreme weather events, and reduced fiscal support. The total global output in 2023 is expected to be 3.4 per cent lower than pre-pandemic projections, equating to approximately $3.6 trillion. Gourinchas described the current state of the global economy as "limping along" and falling short of a full recovery. The IMF's medium-term outlook predicts growth of 3.1 per cent in 2028, a significant drop from the 4.9 per cent forecast made just before the global financial crisis of 2008-2009. Regarding inflation, the IMF expects a decline due to lower energy and food prices. It anticipates a drop in annual average inflation to 6.9 per cent in 2023, down from 8.7 per cent in 2022, and further to 5.8 per cent in 2024. Core inflation, which excludes food and energy prices, is expected to decrease gradually, reaching 6.3 per cent in 2023 and 5.3 per cent in 2024. Gourinchas cautioned against premature interest rate cuts, citing strong labour markets and the absence of a wage-price spiral despite robust employment and low unemployment rates in most advanced economies. The IMF recommended that countries remain vigilant with their monetary policies until inflation shows sustained decline and urged them to rebuild fiscal buffers to address future challenges or shocks. In terms of growth, the IMF raised its growth forecast for the United States, citing strong business investment and consumption, making it the only major economy surpassing pre-pandemic projections. In contrast, China's GDP growth is expected to slow to 5.0 per cent in 2023 and 4.2 per cent in 2024, primarily due to a real estate crisis and weak external demand. The IMF also downgraded its growth estimates for the euro area to 0.7 per cent in 2023 and 1.2 per cent in 2024, while the UK saw its growth forecast revised upward for 2023 but lowered for 2024. Japan is expected to experience growth of 2.0 per cent in 2023, mainly driven by pent-up demand, tourism, monetary policy, and auto exports, with a stable outlook for 2024. (Inputs from Reuters) WATCH WION LIVE HERE

IMF downgrades growth forecasts for China and Euro area, cites uneven global recovery

Chinese property giant Country Garden has sounded the alarm about its inability to meet offshore debt obligations, raising concerns about the possibility of one of China's most significant debt restructurings. While the company has not yet defaulted, it has missed coupon payments on certain dollar bonds since last month and faces looming deadlines for payments.

According to a Reuters report, the largest private property developer in China, issued a statement to the Hong Kong stock exchange, stating that it is grappling with "significant challenges" in sales and financing, leading to a continuous decrease in available funds. The company acknowledged that it would be unable to meet all of its offshore payment obligations on time or within grace periods, potentially triggering creditor demands for payment acceleration or enforcement actions.

The warning from Country Garden underlines the severity of the liquidity crisis in China's property sector, which accounts for a significant portion of the country's economy. It also highlights the contrasting fortunes of property developers and households in the face of tighter monetary policies. Since the liquidity crisis hit the sector in 2021, approximately 40 per cent of Chinese home sales have been tied to private property developers who have defaulted on debt obligations, leaving many housing projects incomplete.

The ongoing challenges in the property sector have prompted Beijing to implement various measures to boost confidence among homebuyers. However, the mounting debt issues faced by developers are likely to continue casting a shadow on the sector's recovery.

Country Garden, with $10.96 billion in offshore bonds and 42.7 billion yuan ($5.86 billion) in offshore loans, is grappling with uncertainty regarding asset disposals and a cash squeeze. In response, the company has enlisted the services of financial advisers Houlihan Lokey, China International Capital Corporation (CICC), and law firm Sidley Austin to examine its capital structure and liquidity position and to devise a comprehensive solution.

"We do not expect Country Garden's liquidity to materially improve as homebuyers and financial institutions may continue to stay on the sidelines," Reuters quoted Morningstar analyst, Jeff Zhang. The next two weeks will be critical for the company as the outcome of overseas debt restructuring hangs in the balance.

Country Garden had been scheduled to make a $66.8 million coupon payment on its 2024 and 2026 dollar bonds, which includes a 30-day grace period. It remains unclear whether these payments were made. Additionally, the company failed to make a principal payment of HK$470 million ($60.04 million) on specific debts.

The coming week poses a significant test for the company, as its entire offshore debt could be classified as in default if it fails to make a $15 million September coupon payment by October 17, the end of the 30-day grace period.

Despite the challenges, the company received approval from onshore bondholders for the extension of nine series of bonds with an outstanding principal value of 14.7 billion yuan ($2.02 billion). This extension provides valuable time for the company to focus on recovering its business operations.

Country Garden's shares have been under significant pressure, losing over 10 per cent on Tuesday, marking a decline of nearly 70 per cent in value since the beginning of the year. The company appears to be adapting its business model, aiming to reduce its debt burden, rightsize its business, and accelerate asset sales.

&nbsp;(With inputs from Reuters)

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Chinese property giant Country Garden has sounded the alarm about its inability to meet offshore debt obligations, raising concerns about the possibility of one of China's most significant debt restructurings.

Chinese property giant Country Garden has sounded the alarm about its inability to meet offshore debt obligations, raising concerns about the possibility of one of China's most significant debt restructurings. While the company has not yet defaulted, it has missed coupon payments on certain dollar bonds since last month and faces looming deadlines for payments. According to a Reuters report, the largest private property developer in China, issued a statement to the Hong Kong stock exchange, stating that it is grappling with "significant challenges" in sales and financing, leading to a continuous decrease in available funds. The company acknowledged that it would be unable to meet all of its offshore payment obligations on time or within grace periods, potentially triggering creditor demands for payment acceleration or enforcement actions. The warning from Country Garden underlines the severity of the liquidity crisis in China's property sector, which accounts for a significant portion of the country's economy. It also highlights the contrasting fortunes of property developers and households in the face of tighter monetary policies. Since the liquidity crisis hit the sector in 2021, approximately 40 per cent of Chinese home sales have been tied to private property developers who have defaulted on debt obligations, leaving many housing projects incomplete. The ongoing challenges in the property sector have prompted Beijing to implement various measures to boost confidence among homebuyers. However, the mounting debt issues faced by developers are likely to continue casting a shadow on the sector's recovery. Country Garden, with $10.96 billion in offshore bonds and 42.7 billion yuan ($5.86 billion) in offshore loans, is grappling with uncertainty regarding asset disposals and a cash squeeze. In response, the company has enlisted the services of financial advisers Houlihan Lokey, China International Capital Corporation (CICC), and law firm Sidley Austin to examine its capital structure and liquidity position and to devise a comprehensive solution. "We do not expect Country Garden's liquidity to materially improve as homebuyers and financial institutions may continue to stay on the sidelines," Reuters quoted Morningstar analyst, Jeff Zhang. The next two weeks will be critical for the company as the outcome of overseas debt restructuring hangs in the balance. Country Garden had been scheduled to make a $66.8 million coupon payment on its 2024 and 2026 dollar bonds, which includes a 30-day grace period. It remains unclear whether these payments were made. Additionally, the company failed to make a principal payment of HK$470 million ($60.04 million) on specific debts. The coming week poses a significant test for the company, as its entire offshore debt could be classified as in default if it fails to make a $15 million September coupon payment by October 17, the end of the 30-day grace period. Despite the challenges, the company received approval from onshore bondholders for the extension of nine series of bonds with an outstanding principal value of 14.7 billion yuan ($2.02 billion). This extension provides valuable time for the company to focus on recovering its business operations. Country Garden's shares have been under significant pressure, losing over 10 per cent on Tuesday, marking a decline of nearly 70 per cent in value since the beginning of the year. The company appears to be adapting its business model, aiming to reduce its debt burden, rightsize its business, and accelerate asset sales. (With inputs from Reuters) WATCH WION LIVE HERE

Country Garden faces offshore debt crisis: Potential for one of China's biggest restructurings

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook.

Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target.

"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," Reuters quoted Lagarde as saying during the interview conducted on October 2.

Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation.

Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance.

In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security.

"This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation.

(With inputs from Reuters)

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European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent.

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook. Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target. "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," Reuters quoted Lagarde as saying during the interview conducted on October 2. Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation. Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance. In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security. "This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation. (With inputs from Reuters) WATCH WION LIVE HERE

ECB's Lagarde expresses confidence in 2pc inflation target and Europe's gas reserves

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