Australian Treasurer Jim Chalmers has sounded a stark warning about the escalating costs of managing natural disasters in the country, which could reach multi-billion dollar levels, Bloomberg reported.

Chalmers spoke of the urgency of addressing the financial implications of climate change as Australia faces the looming threat of a potentially devastating wildfire season driven by the El Nino phenomenon.

In a speech delivered in Rockhampton, Chalmers revealed that government funding for disaster recovery had surged by a staggering 433 per cent over the past three years, reaching Australian $2.5 billion ($1.6 billion) for the fiscal year ending on June 30. “The pressure of a changing climate and more frequent natural disasters is constant, cascading, and cumulative,” Bloomberg quoted him as saying.

Australia has endured a series of catastrophic natural events in recent years, from the Black Summer bushfires in 2019-20 to widespread rainfall and flooding in the east during 2021 and 2022.

With the current El Nino weather system in the Pacific Ocean expected to bring high temperatures and reduced rainfall, authorities are now warning of an elevated risk of severe bushfires in the upcoming months.

Australia, despite being one of the countries most affected by climate change, has faced criticism for its perceived inaction in addressing the issue, particularly under the previous center-right government. The nation remains one of the world's highest per capita carbon emitters and a significant coal exporter.

According to Bloomberg, Emergency Management Minister Murray Watt sought to reassure the public by stating that Australia is better prepared for the approaching bushfire season compared to 2019. He noted that government funding for aerial firefighting has doubled since then.

However, Chalmers cautioned that the economic toll of climate change is only just beginning to become clear. He cited the Black Summer bushfires and the 2022 floods, each costing the Australian economy approximately Australian $1.5 billion ($962 million). Bloomberg also "If further action isn't taken, Australian crop yields could be 4 per cent lower by 2063, costing us about Australian $1.8 billion ($1.1 billion) in GDP in today's dollars."

As Australia grapples with the mounting financial burden of climate-related disasters, the call for proactive measures to mitigate the impacts of climate change on the country's economy grows stronger.

(With inputs from Bloomberg)

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Australian Treasurer Jim Chalmers has sounded a stark warning about the escalating costs of managing natural disasters in the country, which could reach multi-billion dollar levels, Bloomberg reported.

Australian Treasurer Jim Chalmers has sounded a stark warning about the escalating costs of managing natural disasters in the country, which could reach multi-billion dollar levels, Bloomberg reported. Chalmers spoke of the urgency of addressing the financial implications of climate change as Australia faces the looming threat of a potentially devastating wildfire season driven by the El Nino phenomenon. In a speech delivered in Rockhampton, Chalmers revealed that government funding for disaster recovery had surged by a staggering 433 per cent over the past three years, reaching Australian $2.5 billion ($1.6 billion) for the fiscal year ending on June 30. “The pressure of a changing climate and more frequent natural disasters is constant, cascading, and cumulative,” Bloomberg quoted him as saying. Australia has endured a series of catastrophic natural events in recent years, from the Black Summer bushfires in 2019-20 to widespread rainfall and flooding in the east during 2021 and 2022. With the current El Nino weather system in the Pacific Ocean expected to bring high temperatures and reduced rainfall, authorities are now warning of an elevated risk of severe bushfires in the upcoming months. Australia, despite being one of the countries most affected by climate change, has faced criticism for its perceived inaction in addressing the issue, particularly under the previous center-right government. The nation remains one of the world's highest per capita carbon emitters and a significant coal exporter. According to Bloomberg, Emergency Management Minister Murray Watt sought to reassure the public by stating that Australia is better prepared for the approaching bushfire season compared to 2019. He noted that government funding for aerial firefighting has doubled since then. However, Chalmers cautioned that the economic toll of climate change is only just beginning to become clear. He cited the Black Summer bushfires and the 2022 floods, each costing the Australian economy approximately Australian $1.5 billion ($962 million). Bloomberg also "If further action isn't taken, Australian crop yields could be 4 per cent lower by 2063, costing us about Australian $1.8 billion ($1.1 billion) in GDP in today's dollars." As Australia grapples with the mounting financial burden of climate-related disasters, the call for proactive measures to mitigate the impacts of climate change on the country's economy grows stronger. (With inputs from Bloomberg) WATCH WION LIVE HERE

Australia's climate-driven disaster costs surge, signalling economic risk

Indian edtech firm, Byju's, is set to undergo a major restructuring effort, potentially resulting in the termination of 4,000 to 5,000 jobs. This significant workforce reduction, announced by the company's new India CEO, Arjun Mohan, reflects Byju's attempts to strengthen its operations amid ongoing financial challenges, Moneycontrol reported. &nbsp;

According to the report, the restructuring, impacting India-based employees of Think and Learn Pvt Ltd, which operates Byju's, will not include Aakash, another prominent firm owned by edtech giant. The decision to implement these job cuts encompasses various functions within the organisation, including sales and marketing, aiming to eliminate areas of significant overlap. &nbsp;

In a statement addressing this restructuring, a spokesperson for Byju's was quoted by Moneycontrol as saying, "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and better cash flow management. Byju's new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead."&nbsp;

This restructuring initiative comes at a critical juncture for Byju's, as the company grapples with a tightening liquidity situation. In response to imminent financial pressures, Byju's has taken various measures, including reducing office space, exploring the sale of subsidiaries, and seeking external funding.&nbsp;

As per reports, Byju's had previously sent a proposal to its lenders to repay its $1.2 billion disputed term loan B within the next six months. The proposal included an upfront payment of $300 million in the next three months. To fund these repayment plans, Byju's is contemplating the sale of two key assets, Great Learning and US-based Epic. &nbsp;

Moreover, the company has been actively pursuing fresh equity funding to bolster its financial position. Despite being one of the world's largest edtech firms with an approximate valuation of $22 billion, Byju's has faced challenges in securing new funding throughout this year.&nbsp;

In May, the company secured $250 million in structured instruments from Davidson Kempner. However, a significant portion of this amount, nearly $150 million, was held back by the US-based AMC due to a lack of progress in negotiations with Byju's lenders. Additionally, Byju's had a technical default on the Davidson Kempner loan, leading founder and CEO, Byju Raveendran to raise funds for its repayment to retain control of Aakash Educational Services. &nbsp;

Byju's is also exploring fundraising from one of its earliest backers, Ranjan Pai, for Aakash Educational Services, which could involve a partial buyout of Raveendran's stake.&nbsp;

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Indian edtech firm, Byju's, is set to undergo a major restructuring effort, potentially resulting in the termination of 4,000 to 5,000 jobs. This significant workforce reduction, announced by the company's new India CEO, Arjun Mohan, reflects Byju's attempts to strengthen its operations amid ongoing financial challenges, Moneycontrol reported.

Indian edtech firm, Byju's, is set to undergo a major restructuring effort, potentially resulting in the termination of 4,000 to 5,000 jobs. This significant workforce reduction, announced by the company's new India CEO, Arjun Mohan, reflects Byju's attempts to strengthen its operations amid ongoing financial challenges, Moneycontrol reported. According to the report, the restructuring, impacting India-based employees of Think and Learn Pvt Ltd, which operates Byju's, will not include Aakash, another prominent firm owned by edtech giant. The decision to implement these job cuts encompasses various functions within the organisation, including sales and marketing, aiming to eliminate areas of significant overlap. In a statement addressing this restructuring, a spokesperson for Byju's was quoted by Moneycontrol as saying, "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and better cash flow management. Byju's new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead." This restructuring initiative comes at a critical juncture for Byju's, as the company grapples with a tightening liquidity situation. In response to imminent financial pressures, Byju's has taken various measures, including reducing office space, exploring the sale of subsidiaries, and seeking external funding. As per reports, Byju's had previously sent a proposal to its lenders to repay its $1.2 billion disputed term loan B within the next six months. The proposal included an upfront payment of $300 million in the next three months. To fund these repayment plans, Byju's is contemplating the sale of two key assets, Great Learning and US-based Epic. Moreover, the company has been actively pursuing fresh equity funding to bolster its financial position. Despite being one of the world's largest edtech firms with an approximate valuation of $22 billion, Byju's has faced challenges in securing new funding throughout this year. In May, the company secured $250 million in structured instruments from Davidson Kempner. However, a significant portion of this amount, nearly $150 million, was held back by the US-based AMC due to a lack of progress in negotiations with Byju's lenders. Additionally, Byju's had a technical default on the Davidson Kempner loan, leading founder and CEO, Byju Raveendran to raise funds for its repayment to retain control of Aakash Educational Services. Byju's is also exploring fundraising from one of its earliest backers, Ranjan Pai, for Aakash Educational Services, which could involve a partial buyout of Raveendran's stake. WATCH WION LIVE HERE

Indian edtech firm Byju's announces major restructuring, plans to cut thousands of jobs 

China’s Evergrande Group, already grappling with an unprecedented debt crisis, has plunged further into uncertainty as trading in its shares was suspended amid reports that the company's chairman, Hui Ka Yan, had been placed under police surveillance. &nbsp;

The suspension of trading on the Hong Kong stock exchange comes just a month after Evergrande resumed trading following a 17-month break. The development intensifies concerns over the weighed down property developer's future, which faces a growing threat of liquidation.&nbsp;

Previously, Bloomberg News reported that Hui Ka Yan, the visionary founder of Evergrande, had been taken into police custody earlier this month and was currently under surveillance at a designated location. The reasons behind this move remain unclear, and Reuters could not independently verify the news.&nbsp;

Evergrande, with over $300 billion in liabilities, equivalent to the GDP of Finland, has become the symbolic figure of China's property sector's debt crisis, a sector contributing about a quarter to the nation's economy. The company's woes deepened recently when it disclosed its inability to issue new debt due to an investigation into its primary China unit, further complicating its proposed restructuring plan.&nbsp;

A major offshore creditor group of Evergrande has signalled its intention to join a liquidation court petition against the developer if a new debt restructuring plan is not submitted by the end of October. Consequently, the prospect of Evergrande's restructuring plan falling apart looms large, heightening the risk of liquidation, according to analysts.&nbsp;

According to a report by The Guardian, the halt in trading not only affects Evergrande's Hong Kong-listed shares but also extends to its property services and electric vehicle units, all suspended as uncertainties mount. &nbsp;

The recent developments surrounding Evergrande have raised questions about the reasons behind Hui Ka Yan's residential surveillance, which falls short of formal detention or police arrest and does not imply criminal charges. Earlier this month, several employees of Evergrande's wealth management unit were arrested in Shenzhen on unspecified charges, further contributing to the company's mounting troubles.&nbsp;

(With inputs from Reuters)&nbsp;

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China’s Evergrande Group, already grappling with an unprecedented debt crisis, has plunged further into uncertainty as trading in its shares was suspended amid reports that the company's chairman, Hui Ka Yan, had been placed under police surveillance.

China’s Evergrande Group, already grappling with an unprecedented debt crisis, has plunged further into uncertainty as trading in its shares was suspended amid reports that the company's chairman, Hui Ka Yan, had been placed under police surveillance. The suspension of trading on the Hong Kong stock exchange comes just a month after Evergrande resumed trading following a 17-month break. The development intensifies concerns over the weighed down property developer's future, which faces a growing threat of liquidation. Previously, Bloomberg News reported that Hui Ka Yan, the visionary founder of Evergrande, had been taken into police custody earlier this month and was currently under surveillance at a designated location. The reasons behind this move remain unclear, and Reuters could not independently verify the news. Evergrande, with over $300 billion in liabilities, equivalent to the GDP of Finland, has become the symbolic figure of China's property sector's debt crisis, a sector contributing about a quarter to the nation's economy. The company's woes deepened recently when it disclosed its inability to issue new debt due to an investigation into its primary China unit, further complicating its proposed restructuring plan. A major offshore creditor group of Evergrande has signalled its intention to join a liquidation court petition against the developer if a new debt restructuring plan is not submitted by the end of October. Consequently, the prospect of Evergrande's restructuring plan falling apart looms large, heightening the risk of liquidation, according to analysts. According to a report by The Guardian, the halt in trading not only affects Evergrande's Hong Kong-listed shares but also extends to its property services and electric vehicle units, all suspended as uncertainties mount. The recent developments surrounding Evergrande have raised questions about the reasons behind Hui Ka Yan's residential surveillance, which falls short of formal detention or police arrest and does not imply criminal charges. Earlier this month, several employees of Evergrande's wealth management unit were arrested in Shenzhen on unspecified charges, further contributing to the company's mounting troubles. (With inputs from Reuters) WATCH WION LIVE HERE

Evergrande crisis deepens: Chairman under surveillance; trading suspended as liquidation looms

India is set to challenge the status quo at the World Trade Organisation (WTO) by seeking the removal of entitlements in trading rules that have long favoured developed countries. According to reports, these entitlements have hindered the fair access of developing nations, creating friction and inequities in international trade. &nbsp;

A source familiar with the matter told Mint that India's stance will be made clear at the upcoming WTO inter-ministerial meeting in Abu Dhabi, where it will call for the removal of 'additional Final Bound Total Aggregate Measurement of Support (FBTAMS) entitlements'.&nbsp;

Mint reported that India's proposal targets the 'de minimis limits', which dictate the minimal level of domestic support allowed for each country under the WTO Agreement on Agriculture (AoA). Currently, developed nations are permitted support up to 5 per cent of the value of production, while developing countries have a 10 per cent threshold. This longstanding disparity has fuelled debates and posed challenges, particularly concerning India's minimum support price (MSP) program for food grains.&nbsp;

The source cited by Mint also emphasised India's position, stating, "India believes any negotiations on domestic support needs to first address existing asymmetries and imbalances in the WTO Agreement of Agriculture (AoA). Thus, discussing disciplines on domestic support for India must begin with the removal of historical asymmetries in domestic support." &nbsp;

However, India's call for change has not been without resistance, and negotiations on this issue have yet to commence in the WTO. According to the Third World Network (TWN), a think tank specialising in trade issues, disciplining FBTAMS entitlements is crucial as they remain "the primary source of inequity" in the AoA. TWN argues that allowing select countries substantial additional entitlements creates imbalances and policy advantages, further aggravating global trade disparities.&nbsp;

As India pushes for a balance, its actions also draw scrutiny from foodgrain-exporting nations like the US and Canada, who question the subsidies provided under India's public stockholding (PSH) program, particularly for rice. India has invoked the 'peace clause' at the WTO multiple times for breaching the 10 per cent subsidy ceiling on rice procurement. In response, India has defended its position by highlighting that it mainly exports premium quality rice rather than common paddy, emphasising its contributions to the global demand for this staple.&nbsp;

In parallel, The Print reported that India's export decisions in the past year have garnered international attention and raised questions about WTO compliance. Several countries have turned to the WTO to inquire about India's bans and restrictions on the export of wheat, rice, and onions. Japan, Switzerland, Canada, the UK, Australia, the EU, the US, and New Zealand have all sought clarifications on these decisions, underscoring the need for communication, notification, and consideration of their impacts.&nbsp;

Critics of India's export bans argue that they have caused international food prices to spike, leading to concerns of social unrest and political instability in Asia and Africa. Before the bans, India accounted for a substantial portion of global rice supplies, adding to the significance of its decisions in the global food trade landscape. While reasons for export bans were provided for some commodities, such as addressing rising food grain prices, others, like the restrictions on onion exports, remain unexplained.&nbsp;

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India is set to challenge the status quo at the World Trade Organisation (WTO) by seeking the removal of entitlements in trading rules that have long favoured developed countries.

India is set to challenge the status quo at the World Trade Organisation (WTO) by seeking the removal of entitlements in trading rules that have long favoured developed countries. According to reports, these entitlements have hindered the fair access of developing nations, creating friction and inequities in international trade. A source familiar with the matter told Mint that India's stance will be made clear at the upcoming WTO inter-ministerial meeting in Abu Dhabi, where it will call for the removal of 'additional Final Bound Total Aggregate Measurement of Support (FBTAMS) entitlements'. Mint reported that India's proposal targets the 'de minimis limits', which dictate the minimal level of domestic support allowed for each country under the WTO Agreement on Agriculture (AoA). Currently, developed nations are permitted support up to 5 per cent of the value of production, while developing countries have a 10 per cent threshold. This longstanding disparity has fuelled debates and posed challenges, particularly concerning India's minimum support price (MSP) program for food grains. The source cited by Mint also emphasised India's position, stating, "India believes any negotiations on domestic support needs to first address existing asymmetries and imbalances in the WTO Agreement of Agriculture (AoA). Thus, discussing disciplines on domestic support for India must begin with the removal of historical asymmetries in domestic support." However, India's call for change has not been without resistance, and negotiations on this issue have yet to commence in the WTO. According to the Third World Network (TWN), a think tank specialising in trade issues, disciplining FBTAMS entitlements is crucial as they remain "the primary source of inequity" in the AoA. TWN argues that allowing select countries substantial additional entitlements creates imbalances and policy advantages, further aggravating global trade disparities. As India pushes for a balance, its actions also draw scrutiny from foodgrain-exporting nations like the US and Canada, who question the subsidies provided under India's public stockholding (PSH) program, particularly for rice. India has invoked the 'peace clause' at the WTO multiple times for breaching the 10 per cent subsidy ceiling on rice procurement. In response, India has defended its position by highlighting that it mainly exports premium quality rice rather than common paddy, emphasising its contributions to the global demand for this staple. In parallel, The Print reported that India's export decisions in the past year have garnered international attention and raised questions about WTO compliance. Several countries have turned to the WTO to inquire about India's bans and restrictions on the export of wheat, rice, and onions. Japan, Switzerland, Canada, the UK, Australia, the EU, the US, and New Zealand have all sought clarifications on these decisions, underscoring the need for communication, notification, and consideration of their impacts. Critics of India's export bans argue that they have caused international food prices to spike, leading to concerns of social unrest and political instability in Asia and Africa. Before the bans, India accounted for a substantial portion of global rice supplies, adding to the significance of its decisions in the global food trade landscape. While reasons for export bans were provided for some commodities, such as addressing rising food grain prices, others, like the restrictions on onion exports, remain unexplained. WATCH WION LIVE HERE

India's WTO challenge: Raising the stakes in global agricultural trade reforms 

Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year. However, economists, in a Reuters poll, have expressed concerns about downside risks to this optimistic forecast.

Over the past few years, Narendra Modi's government has ramped up spending on infrastructure projects, including roads and railways, contributing to India's resilience against the global economic slowdown. Despite these efforts, the government has struggled to generate sufficient employment opportunities.

According to the median forecasts from a poll of 65 economists conducted between September 20 and 26, India's economy is expected to grow by 6.2 per cent in the fiscal year ending in March 2024, followed by a 6.3 per cent growth rate in the subsequent fiscal year. These projections align with last month's predictions but reveal a wide range of estimates for the current fiscal year, spanning from 4.6 per cent to 7.1 per cent.

However, economists emphasise that the expected growth remains below India's full potential. Furthermore, concerns have arisen regarding the impact of a drier-than-normal monsoon season, which could hinder economic performance in a country where agriculture employs roughly half of the workforce.

After an 7.8 per cent expansion in the last quarter, the growth rate is anticipated to moderate to 6.4 per cent in the current quarter and then decrease to 6.0 per cent in the October-December period, ultimately slowing to 5.5 per cent in early 2024.

Reuters quoted Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, as saying&nbsp;that India is currently experiencing a cyclical slowdown, with various factors, including a weak external environment, sluggish private consumption, and subdued investment, impacting economic growth.

A majority of economists, 22 out of 36, believe that the risks to their GDP growth forecasts for FY 2023-2024 are tilted towards the downside.

Regarding inflation, the poll indicates that India's retail inflation is expected to average 5.5 per cent this fiscal year and 4.8 per cent next, exceeding the Reserve Bank of India's (RBI) medium-term target of 4 per cent. Alarmingly, more than two-thirds of the surveyed economists, 23 out of 34, believe that the risks are skewed towards even higher inflation figures.

Despite the anticipation of inflation remaining above the target, economists foresee the next move by the RBI to be a rate cut. Nearly 60 per cent of the economists, 28 out of 48, predict that the RBI will cut rates by at least 25 basis points before July, with the median estimate placing the rate at 6.25 per cent in the second quarter of the following year. This potential rate cut aligns with expectations for similar moves by central banks globally.

In the upcoming Oct. 4-6 meeting, all but one of the 71 economists surveyed anticipate that the RBI will maintain its key repo rate at 6.50 per cent, with one economist expecting a 25 basis point increase. Median forecasts suggest that the rate will remain unchanged throughout the rest of the current fiscal year.

Reuters quoted Alexandra Hermann, lead economist at Oxford Economics as saying, "The RBI will likely tolerate supply-driven inflationary pressures as long as core prices continue to ease but will monitor the development of inflation expectations closely."

She also added that they still expected a rate cut early in 2024 and that the recent inflationary trends were making it increasingly likely that a policy tilt would be delayed. She also pointed out that government measures should have a cooling effect on food prices in the coming months, but rising oil prices would probably exert upward pressure on headline inflation.

(With inputs from Reuters)

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Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year.

Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year. However, economists, in a Reuters poll, have expressed concerns about downside risks to this optimistic forecast. Over the past few years, Narendra Modi's government has ramped up spending on infrastructure projects, including roads and railways, contributing to India's resilience against the global economic slowdown. Despite these efforts, the government has struggled to generate sufficient employment opportunities. According to the median forecasts from a poll of 65 economists conducted between September 20 and 26, India's economy is expected to grow by 6.2 per cent in the fiscal year ending in March 2024, followed by a 6.3 per cent growth rate in the subsequent fiscal year. These projections align with last month's predictions but reveal a wide range of estimates for the current fiscal year, spanning from 4.6 per cent to 7.1 per cent. However, economists emphasise that the expected growth remains below India's full potential. Furthermore, concerns have arisen regarding the impact of a drier-than-normal monsoon season, which could hinder economic performance in a country where agriculture employs roughly half of the workforce. After an 7.8 per cent expansion in the last quarter, the growth rate is anticipated to moderate to 6.4 per cent in the current quarter and then decrease to 6.0 per cent in the October-December period, ultimately slowing to 5.5 per cent in early 2024. Reuters quoted Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, as saying that India is currently experiencing a cyclical slowdown, with various factors, including a weak external environment, sluggish private consumption, and subdued investment, impacting economic growth. A majority of economists, 22 out of 36, believe that the risks to their GDP growth forecasts for FY 2023-2024 are tilted towards the downside. Regarding inflation, the poll indicates that India's retail inflation is expected to average 5.5 per cent this fiscal year and 4.8 per cent next, exceeding the Reserve Bank of India's (RBI) medium-term target of 4 per cent. Alarmingly, more than two-thirds of the surveyed economists, 23 out of 34, believe that the risks are skewed towards even higher inflation figures. Despite the anticipation of inflation remaining above the target, economists foresee the next move by the RBI to be a rate cut. Nearly 60 per cent of the economists, 28 out of 48, predict that the RBI will cut rates by at least 25 basis points before July, with the median estimate placing the rate at 6.25 per cent in the second quarter of the following year. This potential rate cut aligns with expectations for similar moves by central banks globally. In the upcoming Oct. 4-6 meeting, all but one of the 71 economists surveyed anticipate that the RBI will maintain its key repo rate at 6.50 per cent, with one economist expecting a 25 basis point increase. Median forecasts suggest that the rate will remain unchanged throughout the rest of the current fiscal year. Reuters quoted Alexandra Hermann, lead economist at Oxford Economics as saying, "The RBI will likely tolerate supply-driven inflationary pressures as long as core prices continue to ease but will monitor the development of inflation expectations closely." She also added that they still expected a rate cut early in 2024 and that the recent inflationary trends were making it increasingly likely that a policy tilt would be delayed. She also pointed out that government measures should have a cooling effect on food prices in the coming months, but rising oil prices would probably exert upward pressure on headline inflation. (With inputs from Reuters) WATCH WION LIVE HERE

India fastest-growing major economy but risks persist, says Reuters poll

In an unprecedented turn of events, Afghanistan's currency, the afghani, has soared to the top of global currency rankings this quarter, outperforming many other currencies worldwide. Billions of dollars from humanitarian aid and increasing trade with Asian neighbours have played pivotal roles in this unexpected rise. &nbsp;

Bloomberg reported that despite the country's dire economic and humanitarian situation, the afghani has appreciated by approximately 9 per cent this quarter and will continue to appreciate by about 14 per cent over the course of the year, trailing only behind the Colombian peso and Sri Lankan rupee in global currency rankings.&nbsp;

The Taliban regime, which seized control of Afghanistan two years ago, has implemented stringent measures to maintain control over the afghani's value. These measures include banning the use of foreign currencies like the US dollar and Pakistani rupee in local transactions, tightening restrictions on the movement of foreign currencies, and criminalising online trading. This has led to a significant increase in demand for the afghani, which has, in turn, driven up its value.&nbsp;

Bloomberg cited Kamran Bokhari, an expert in Middle Eastern, Central, and South Asian affairs at the Washington-based New Lines Institute for Strategy &amp; Policy, who said, "The hard currency controls are working, but the economic, social, and political instability will render this rise in the currency as a short-term phenomenon." &nbsp;

In the wake of financial sanctions, foreign exchange transactions in Afghanistan now predominantly occur through money changers, locally known as ‘sarrafs,’ who operate in markets and shops across the country. This decentralised approach to currency exchange has become essential as Afghanistan remains largely cut off from the global financial system due to international sanctions.&nbsp;

Moreover, remittances to Afghanistan are primarily facilitated through the centuries-old Hawala money transfer system, commonly practiced in regions such as the Middle East. This system has become integral to the operations of the sarrafs who handle the bulk of foreign exchange transactions.&nbsp;

While Afghanistan's currency is on the rise, the humanitarian situation remains dire. The United Nations estimates that the country needs approximately $3.2 billion in aid this year, but only about $1.1 billion has been deployed so far, leaving millions in desperate need.&nbsp;

Despite the challenges, reports suggest there is optimism regarding Afghanistan's economic outlook. The World Bank predicts that the economy will stop contracting this year and may even see growth of 2 per cent to 3 per cent until 2025. However, there are concerns about potential reductions in global aid as the Taliban intensifies its repression of women.&nbsp;

"Tightened restrictions on foreign exchange transactions and a very gradual improvement in trade are pushing up demand for the afghani," Bloomberg quoted Anwita Basu, head of Europe country risk at BMI in London. She also added that the currency is likely to stabilize at current levels until the end of the year. &nbsp;

Additionally, Afghanistan's cash-strapped Taliban government is actively seeking investment in the country's valuable resources, including lithium and minerals estimated to be worth as much as $3 trillion. Agreements with Chinese, British, and Turkish companies to develop large-scale mining operations have been finalised, with further investments expected as part of the Belt and Road Initiative expansion into Afghanistan.&nbsp;

Despite the afghani's recent success, it remains vulnerable to shifts in political stability. BMI's Anwita Basu told Bloomberg, "Ultimately, political stability will make or break the currency – if the Taliban lose control at home, then the currency too will suffer."&nbsp;

(With inputs from Bloomberg)&nbsp;

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In an unprecedented turn of events, Afghanistan's currency, the afghani, has soared to the top of global currency rankings this quarter, outperforming many other currencies worldwide.

In an unprecedented turn of events, Afghanistan's currency, the afghani, has soared to the top of global currency rankings this quarter, outperforming many other currencies worldwide. Billions of dollars from humanitarian aid and increasing trade with Asian neighbours have played pivotal roles in this unexpected rise. Bloomberg reported that despite the country's dire economic and humanitarian situation, the afghani has appreciated by approximately 9 per cent this quarter and will continue to appreciate by about 14 per cent over the course of the year, trailing only behind the Colombian peso and Sri Lankan rupee in global currency rankings. The Taliban regime, which seized control of Afghanistan two years ago, has implemented stringent measures to maintain control over the afghani's value. These measures include banning the use of foreign currencies like the US dollar and Pakistani rupee in local transactions, tightening restrictions on the movement of foreign currencies, and criminalising online trading. This has led to a significant increase in demand for the afghani, which has, in turn, driven up its value. Bloomberg cited Kamran Bokhari, an expert in Middle Eastern, Central, and South Asian affairs at the Washington-based New Lines Institute for Strategy & Policy, who said, "The hard currency controls are working, but the economic, social, and political instability will render this rise in the currency as a short-term phenomenon." In the wake of financial sanctions, foreign exchange transactions in Afghanistan now predominantly occur through money changers, locally known as ‘sarrafs,’ who operate in markets and shops across the country. This decentralised approach to currency exchange has become essential as Afghanistan remains largely cut off from the global financial system due to international sanctions. Moreover, remittances to Afghanistan are primarily facilitated through the centuries-old Hawala money transfer system, commonly practiced in regions such as the Middle East. This system has become integral to the operations of the sarrafs who handle the bulk of foreign exchange transactions. While Afghanistan's currency is on the rise, the humanitarian situation remains dire. The United Nations estimates that the country needs approximately $3.2 billion in aid this year, but only about $1.1 billion has been deployed so far, leaving millions in desperate need. Despite the challenges, reports suggest there is optimism regarding Afghanistan's economic outlook. The World Bank predicts that the economy will stop contracting this year and may even see growth of 2 per cent to 3 per cent until 2025. However, there are concerns about potential reductions in global aid as the Taliban intensifies its repression of women. "Tightened restrictions on foreign exchange transactions and a very gradual improvement in trade are pushing up demand for the afghani," Bloomberg quoted Anwita Basu, head of Europe country risk at BMI in London. She also added that the currency is likely to stabilize at current levels until the end of the year. Additionally, Afghanistan's cash-strapped Taliban government is actively seeking investment in the country's valuable resources, including lithium and minerals estimated to be worth as much as $3 trillion. Agreements with Chinese, British, and Turkish companies to develop large-scale mining operations have been finalised, with further investments expected as part of the Belt and Road Initiative expansion into Afghanistan. Despite the afghani's recent success, it remains vulnerable to shifts in political stability. BMI's Anwita Basu told Bloomberg, "Ultimately, political stability will make or break the currency – if the Taliban lose control at home, then the currency too will suffer." (With inputs from Bloomberg) WATCH WION LIVE HERE

Under Taliban, Afghan currency tops global rankings amid turmoil

Shell's CEO Wael Sawan is under mounting pressure to maintain and increase investments in renewable energy after two employees from Shell's low-carbon division issued an open letter earlier this month, expressing their concerns about the company's recent strategic decisions. &nbsp;

The letter, which has garnered significant attention within the organisation, raises questions about Shell's commitment to being a leader in the global energy transition.&nbsp;

At an investor day in June, Sawan unveiled plans to scale back investments in renewables and low-carbon ventures as part of an overarching strategy to enhance financial returns. This move was accompanied by the restructuring of the low-carbon business and the elimination of the role of the global head of renewables. Thomas Brostrom, the previous holder of that position, promptly departed after less than two years in the role.&nbsp;

In the open letter, the employees, Lisette de Heiden and Wouter Drinkwaard, who both work in Shell's low-carbon division, expressed their concern about these developments. According to Reuters, the letter, which was addressed to Sawan and the Shell executive committee, stated, "For a long time, it has been Shell's ambition to be a leader in the energy transition. It is the reason we work here... We can only hope the optics of the CMD announcements are deceiving us and that Shell continues its path as a leader in the energy transition."&nbsp;

The letter has gained substantial traction within the company, with more than 80,000 views and 1,000 likes, sparking a vigorous exchange of comments on the internal platform, including Sawan's response. &nbsp;

Sawan agreed on the complications surrounding the energy transition."For an organisation at the crux of the energy transition, there are no easy answers and no shortage of dilemmas or challenge... I am proud of how we provide affordable and secure energy to people every day, while we work hard to provide lower-carbon solutions to our customers, as we transition over time to a net-zero emissions business," Reuters noted in his answer to the letter.&nbsp;

Sawan, who assumed his role in January, has emphasised on improving Shell's operational performance and profitability by focusing more on traditional oil and gas operations, biofuels, and electric vehicle charging. This shift has seen Shell exit offshore wind projects in Ireland and France, divest its UK power retail business, and explore selling stakes in renewable projects in India. The possibility of selling all or part of the Sonnen battery storage company, acquired in 2019, is also under consideration.&nbsp;

Reuters cited Shell's spokesperson who expressed admiration for their staff's engagement and passion for both the energy transition and the company. They stated that Shell is playing a significant role in addressing the energy transition. Additionally, during the recent Capital Markets Day, they outlined the areas within the current and future energy system where Shell is best positioned to invest, compete, and succeed.&nbsp;

Amidst the strategic shift, several senior executives have left the low-carbon and renewables division, including Oliver Bishop, Roberto Jimenez, and Colin Crooks. Oliver Bishop, who previously led Shell's global hydrogen mobility business, has joined BP in a similar role.&nbsp;

(With inputs from Reuters)

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Shell's CEO Wael Sawan is under mounting pressure to maintain and increase investments in renewable energy after two employees from Shell's low-carbon division issued an open letter earlier this month, expressing their concerns about the company's recent strategic decisions.

Shell's CEO Wael Sawan is under mounting pressure to maintain and increase investments in renewable energy after two employees from Shell's low-carbon division issued an open letter earlier this month, expressing their concerns about the company's recent strategic decisions. The letter, which has garnered significant attention within the organisation, raises questions about Shell's commitment to being a leader in the global energy transition. At an investor day in June, Sawan unveiled plans to scale back investments in renewables and low-carbon ventures as part of an overarching strategy to enhance financial returns. This move was accompanied by the restructuring of the low-carbon business and the elimination of the role of the global head of renewables. Thomas Brostrom, the previous holder of that position, promptly departed after less than two years in the role. In the open letter, the employees, Lisette de Heiden and Wouter Drinkwaard, who both work in Shell's low-carbon division, expressed their concern about these developments. According to Reuters, the letter, which was addressed to Sawan and the Shell executive committee, stated, "For a long time, it has been Shell's ambition to be a leader in the energy transition. It is the reason we work here... We can only hope the optics of the CMD announcements are deceiving us and that Shell continues its path as a leader in the energy transition." The letter has gained substantial traction within the company, with more than 80,000 views and 1,000 likes, sparking a vigorous exchange of comments on the internal platform, including Sawan's response. Sawan agreed on the complications surrounding the energy transition."For an organisation at the crux of the energy transition, there are no easy answers and no shortage of dilemmas or challenge... I am proud of how we provide affordable and secure energy to people every day, while we work hard to provide lower-carbon solutions to our customers, as we transition over time to a net-zero emissions business," Reuters noted in his answer to the letter. Sawan, who assumed his role in January, has emphasised on improving Shell's operational performance and profitability by focusing more on traditional oil and gas operations, biofuels, and electric vehicle charging. This shift has seen Shell exit offshore wind projects in Ireland and France, divest its UK power retail business, and explore selling stakes in renewable projects in India. The possibility of selling all or part of the Sonnen battery storage company, acquired in 2019, is also under consideration. Reuters cited Shell's spokesperson who expressed admiration for their staff's engagement and passion for both the energy transition and the company. They stated that Shell is playing a significant role in addressing the energy transition. Additionally, during the recent Capital Markets Day, they outlined the areas within the current and future energy system where Shell is best positioned to invest, compete, and succeed. Amidst the strategic shift, several senior executives have left the low-carbon and renewables division, including Oliver Bishop, Roberto Jimenez, and Colin Crooks. Oliver Bishop, who previously led Shell's global hydrogen mobility business, has joined BP in a similar role. (With inputs from Reuters) WATCH WION LIVE HERE

Shell CEO faces internal pressure to uphold renewable energy investments. Here's why

Korean automakers Kia and Hyundai have jointly initiated a recall of a staggering 3.37 million vehicles in the United States due to the risk of engine fires, prompting vehicle owners to park their cars outside and away from structures until the required repairs are completed.&nbsp;

Kia and Hyundai have taken this step in response to potential safety concerns raised by the National Highway Traffic Safety Administration (NHTSA). The issue at hand revolves around internal brake fluid leaks that have the potential to trigger electrical shorts, leading to potential fires. The NHTSA has echoed the automakers' advice, urging vehicle owners to follow their guidance and park their cars outdoors until the essential repairs have been executed.&nbsp;

According to the NHTSA, Hyundai has reported 21 fires and 21 other thermal problems associated with the recall since 2017. On the other hand, Kia has reported at least 10 confirmed fire and melting occurrences. There have been no accidents, injuries, or deaths linked to the recalls, according to either automaker.&nbsp;

The recall issued by Kia America covers an extensive range of models, including Borrego, Cadenza, Forte, Sportage, K900, Optima, Soul, Rio, Sorento, and Rondo vehicles. These recalls span various model years from 2010 through 2017. The specific issue pertains to the Hydraulic Electronic Control Unit (HECU), which may experience an electrical short as a result of brake fluid leaks. This electrical short has the potential to lead to engine compartment fires, whether the vehicle is parked or in motion.&nbsp;

On the other hand, Hyundai's recall affects approximately 1.64 million vehicles, encompassing models like Elantra, Genesis Coupe, Sonata Hybrid, Accent, Azera, Veloster, Santa Fe, Equus, Veracruz, Tucson, Tucson Fuel Cell, and Santa Fe Sport. These recalls encompass model years from 2011 through 2015. The issues in Hyundai vehicles is linked to the Anti-Lock Brake System (ABS) module, which may internally leak brake fluid and cause an electrical short, subsequently leading to engine compartment fires when the vehicle is stationary or in operation.&nbsp;

Hyundai intends to advise customers to take their cars to a dealer to have the ABS module fuse replaced. According to NHTSA, Kia is still developing a solution. The recall will be announced to owners by the automakers in November.&nbsp;

(With inputs from Reuters)&nbsp;

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Korean automakers Kia and Hyundai have jointly initiated a recall of a staggering 3.37 million vehicles in the United States due to the risk of engine fires, prompting vehicle owners to park their cars outside and away from structures until the required repairs are completed.

Korean automakers Kia and Hyundai have jointly initiated a recall of a staggering 3.37 million vehicles in the United States due to the risk of engine fires, prompting vehicle owners to park their cars outside and away from structures until the required repairs are completed. Kia and Hyundai have taken this step in response to potential safety concerns raised by the National Highway Traffic Safety Administration (NHTSA). The issue at hand revolves around internal brake fluid leaks that have the potential to trigger electrical shorts, leading to potential fires. The NHTSA has echoed the automakers' advice, urging vehicle owners to follow their guidance and park their cars outdoors until the essential repairs have been executed. According to the NHTSA, Hyundai has reported 21 fires and 21 other thermal problems associated with the recall since 2017. On the other hand, Kia has reported at least 10 confirmed fire and melting occurrences. There have been no accidents, injuries, or deaths linked to the recalls, according to either automaker. The recall issued by Kia America covers an extensive range of models, including Borrego, Cadenza, Forte, Sportage, K900, Optima, Soul, Rio, Sorento, and Rondo vehicles. These recalls span various model years from 2010 through 2017. The specific issue pertains to the Hydraulic Electronic Control Unit (HECU), which may experience an electrical short as a result of brake fluid leaks. This electrical short has the potential to lead to engine compartment fires, whether the vehicle is parked or in motion. On the other hand, Hyundai's recall affects approximately 1.64 million vehicles, encompassing models like Elantra, Genesis Coupe, Sonata Hybrid, Accent, Azera, Veloster, Santa Fe, Equus, Veracruz, Tucson, Tucson Fuel Cell, and Santa Fe Sport. These recalls encompass model years from 2011 through 2015. The issues in Hyundai vehicles is linked to the Anti-Lock Brake System (ABS) module, which may internally leak brake fluid and cause an electrical short, subsequently leading to engine compartment fires when the vehicle is stationary or in operation. Hyundai intends to advise customers to take their cars to a dealer to have the ABS module fuse replaced. According to NHTSA, Kia is still developing a solution. The recall will be announced to owners by the automakers in November. (With inputs from Reuters) WATCH WION LIVE HERE

Kia, Hyundai announce massive recall of 3.37 million US vehicles amid fire safety concerns

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties.

"I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape.

Goolsbee drew attention to the unemployment rate, which was at &nbsp;3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability.

According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period.

The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020.

Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions.

(With inputs from Bloomberg)

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Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation. In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties. "I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape. Goolsbee drew attention to the unemployment rate, which was at 3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability. According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period. The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020. Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions. (With inputs from Bloomberg) WATCH WION LIVE HERE

Federal Reserve official highlights "golden path" to avert recession amidst rate hikes

A former adviser to the People's Bank of China (PBOC), Li Daokui, has offered a sobering assessment of China's property market, suggesting that it may take up to a year to fully recover. According to a report by Bloomberg, Li is urging the Chinese government to take proactive steps to boost lending to property developers in order to prevent further defaults.

Li Daokui, a former member of the PBOC's monetary policy committee, revealed in an interview that while property sales in China's major cities could potentially rebound in the next four to six months, smaller cities may require up to a year to experience substantial recovery.

“The collapse in the property market over the past two years has left real estate giants close to default, triggered market panic, and left housing projects unfinished,” Bloomberg quoted Li as saying. He further emphasised on the severity of the situation. He proposed the creation of a mechanism to increase bank lending to property developers, estimating that approximately 100 billion yuan ($13.7 billion) would be needed to support developers during the ongoing downturn.

Li, a well-known academic and commentator on China's economy, served as an adviser at the PBOC from 2010 to 2012 and currently directs the Academic Centre for Chinese Economic Practice and Thinking at Tsinghua University in Beijing.

Bank lending to the real estate sector has seen a significant decline in recent years due to rising financial distress. Loans for property development have dropped every month since April, registering a 25 per cent year-on-year decline in August.

"Some developers are overweight in third and fourth-tier cities, so their financial situation won't be able to improve in the coming six months," Bloomberg cited Li. "In the meantime, increased lending by commercial banks is still extremely important in order to prevent any propagation of liquidity problems. Some policy has to be in place to stop the shrinking of bank lending," he added.

Li proposed that the central bank or the National Financial Regulatory Administration, which oversees banks, could form a committee with the nation's six largest commercial banks to jointly provide loans to support the property sector.

In the long term, Li believes that China's property sales could stabilise at 1.1-1.2 billion square meters annually, compared to a peak of about 1.8 billion square meters in 2021. He expects the property market to remain a key driver for the economy but with a reduced impact.

While Li does foresee the possibility of another interest rate cut by the PBOC before the end of the year, he does not anticipate numerous or major cuts due to relatively low profit margins for banks. Instead, he stressed that policies to stimulate demand for consumer goods and housing would be more effective in supporting the economy.

Li expressed anticipation for the release of more detailed plans for the resolution of local government debt, which, combined with measures to bolster the property sector, would be "much more important than cutting the interest rate". These actions are intended to address the fundamental problems with China's macroeconomic structure and financial system, where the demand for loans has fallen off recently.

(With inputs from Bloomberg)

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A former adviser to the People's Bank of China (PBOC), Li Daokui, has offered a sobering assessment of China's property market, suggesting that it may take up to a year to fully recover.

A former adviser to the People's Bank of China (PBOC), Li Daokui, has offered a sobering assessment of China's property market, suggesting that it may take up to a year to fully recover. According to a report by Bloomberg, Li is urging the Chinese government to take proactive steps to boost lending to property developers in order to prevent further defaults. Li Daokui, a former member of the PBOC's monetary policy committee, revealed in an interview that while property sales in China's major cities could potentially rebound in the next four to six months, smaller cities may require up to a year to experience substantial recovery. “The collapse in the property market over the past two years has left real estate giants close to default, triggered market panic, and left housing projects unfinished,” Bloomberg quoted Li as saying. He further emphasised on the severity of the situation. He proposed the creation of a mechanism to increase bank lending to property developers, estimating that approximately 100 billion yuan ($13.7 billion) would be needed to support developers during the ongoing downturn. Li, a well-known academic and commentator on China's economy, served as an adviser at the PBOC from 2010 to 2012 and currently directs the Academic Centre for Chinese Economic Practice and Thinking at Tsinghua University in Beijing. Bank lending to the real estate sector has seen a significant decline in recent years due to rising financial distress. Loans for property development have dropped every month since April, registering a 25 per cent year-on-year decline in August. "Some developers are overweight in third and fourth-tier cities, so their financial situation won't be able to improve in the coming six months," Bloomberg cited Li. "In the meantime, increased lending by commercial banks is still extremely important in order to prevent any propagation of liquidity problems. Some policy has to be in place to stop the shrinking of bank lending," he added. Li proposed that the central bank or the National Financial Regulatory Administration, which oversees banks, could form a committee with the nation's six largest commercial banks to jointly provide loans to support the property sector. In the long term, Li believes that China's property sales could stabilise at 1.1-1.2 billion square meters annually, compared to a peak of about 1.8 billion square meters in 2021. He expects the property market to remain a key driver for the economy but with a reduced impact. While Li does foresee the possibility of another interest rate cut by the PBOC before the end of the year, he does not anticipate numerous or major cuts due to relatively low profit margins for banks. Instead, he stressed that policies to stimulate demand for consumer goods and housing would be more effective in supporting the economy. Li expressed anticipation for the release of more detailed plans for the resolution of local government debt, which, combined with measures to bolster the property sector, would be "much more important than cutting the interest rate". These actions are intended to address the fundamental problems with China's macroeconomic structure and financial system, where the demand for loans has fallen off recently. (With inputs from Bloomberg) WATCH WION LIVE HERE

Former PBOC adviser cautions: China's property recovery may take a year

Consulting company McKinsey &amp; Co has reached a&nbsp;settlement worth&nbsp;$230 million to resolve a multitude of lawsuits brought forth by several U.S. local governments and school districts that alleged that McKinsey played a pivotal role in fuelling the opioid addiction crisis through its work with the bankrupt Purdue Pharma that manufactured OxyContin and other pharmaceutical companies.&nbsp;

The settlements, which are pending judicial approval, were unveiled in documents sent on Tuesday in federal court in San Francisco. This substantial sum is in addition to the $641.5 million that McKinsey had already paid to resolve claims lodged by state attorneys-general.&nbsp;

Under the terms of the settlements, McKinsey will disburse $207 million to resolve claims made by counties and municipalities, with an additional $23 million earmarked to address claims lodged by public school districts. While McKinsey had previously acknowledged its intent to resolve these cases, the exact financial terms had not been disclosed until now.&nbsp;

Reuters cited Aelish Baig, an attorney representing the local governments, lauded the agreement, describing it as "a strong outcome for the communities harmed by this crisis."&nbsp;

It is important to note that McKinsey has not admitted any misconduct in this matter. In a statement, the consulting firm maintained that it believes its past work was conducted within the bounds of the law. Furthermore, McKinsey pointed out that in 2019, it had committed to refraining from advising clients on any opioid-related business.&nbsp;

The opioid epidemic has resulted in a deluge of lawsuits filed by states, local governments, and Native American tribes. These legal actions have accused pharmaceutical companies of downplaying the risks associated with opioid painkillers. Distributors and pharmacies have also faced allegations of turning a blind eye to red flags indicating the illegal trafficking of these drugs.&nbsp;

The cumulative impact of this litigation has been substantial, with settlements exceeding a staggering $51 billion, according to legal representatives for the plaintiffs. Agreements have already been reached with major drug manufacturers and the nation's largest distributors.&nbsp;

The lawsuits targeting McKinsey, contended that the company contributed to the deadly drug crisis by assisting drug manufacturers, including Purdue Pharma, in devising deceptive marketing strategies and increasing the sales of opioid painkillers.&nbsp;

The opioid crisis has had devastating consequences, with about 645,000&nbsp;individuals succumbing to overdoses involving opioids, spanning both prescription and illicit drugs, from 1999 to 2021, as reported by the U.S. Centres for Disease Control and Prevention.&nbsp;

In a related development, the U.S. Supreme Court recently agreed to consider a challenge mounted by President Joe Biden's administration against Purdue Pharma's multi-billion-dollar bankruptcy settlement, which seeks to resolve associated claims against the pharmaceutical manufacturer.&nbsp;

(With inputs from Reuters)&nbsp;

WATCH WION LIVE HERE

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Consulting company McKinsey & Co has reached a settlement worth $230 million to resolve a multitude of lawsuits brought forth by several U.S. local governments and school districts that alleged that McKinsey played a pivotal role in fuelling the opioid addiction crisis through its work with the bankrupt Purdue Pharma that manufactured OxyContin and other pharmaceutical companies.

Consulting company McKinsey & Co has reached a settlement worth $230 million to resolve a multitude of lawsuits brought forth by several U.S. local governments and school districts that alleged that McKinsey played a pivotal role in fuelling the opioid addiction crisis through its work with the bankrupt Purdue Pharma that manufactured OxyContin and other pharmaceutical companies. The settlements, which are pending judicial approval, were unveiled in documents sent on Tuesday in federal court in San Francisco. This substantial sum is in addition to the $641.5 million that McKinsey had already paid to resolve claims lodged by state attorneys-general. Under the terms of the settlements, McKinsey will disburse $207 million to resolve claims made by counties and municipalities, with an additional $23 million earmarked to address claims lodged by public school districts. While McKinsey had previously acknowledged its intent to resolve these cases, the exact financial terms had not been disclosed until now. Reuters cited Aelish Baig, an attorney representing the local governments, lauded the agreement, describing it as "a strong outcome for the communities harmed by this crisis." It is important to note that McKinsey has not admitted any misconduct in this matter. In a statement, the consulting firm maintained that it believes its past work was conducted within the bounds of the law. Furthermore, McKinsey pointed out that in 2019, it had committed to refraining from advising clients on any opioid-related business. The opioid epidemic has resulted in a deluge of lawsuits filed by states, local governments, and Native American tribes. These legal actions have accused pharmaceutical companies of downplaying the risks associated with opioid painkillers. Distributors and pharmacies have also faced allegations of turning a blind eye to red flags indicating the illegal trafficking of these drugs. The cumulative impact of this litigation has been substantial, with settlements exceeding a staggering $51 billion, according to legal representatives for the plaintiffs. Agreements have already been reached with major drug manufacturers and the nation's largest distributors. The lawsuits targeting McKinsey, contended that the company contributed to the deadly drug crisis by assisting drug manufacturers, including Purdue Pharma, in devising deceptive marketing strategies and increasing the sales of opioid painkillers. The opioid crisis has had devastating consequences, with about 645,000 individuals succumbing to overdoses involving opioids, spanning both prescription and illicit drugs, from 1999 to 2021, as reported by the U.S. Centres for Disease Control and Prevention. In a related development, the U.S. Supreme Court recently agreed to consider a challenge mounted by President Joe Biden's administration against Purdue Pharma's multi-billion-dollar bankruptcy settlement, which seeks to resolve associated claims against the pharmaceutical manufacturer. (With inputs from Reuters) WATCH WION LIVE HERE

McKinsey & Co. to pay $230 million in opioid crisis settlements with U.S. local governments 

As the clock ticks down to a looming government shutdown, the U.S. Senate and House of Representatives find themselves on duelling paths regarding funding measures, raising concerns about the stability of government operations.&nbsp;

In a move towards averting a shutdown, the Senate voted 77-19 to initiate debates on a bipartisan bill aimed at funding the government through November 17. This bill includes allocations of approximately $6 billion for domestic disaster responses and an additional roughly $6 billion in aid for Ukraine.&nbsp;

Contrastingly, the Republican-controlled House of Representatives is advancing its own partisan approach that leans heavily on conservative priorities. However, this approach, according to reports, faces significant hurdles in the Democratic-majority Senate and is unlikely to become law. Even if enacted, these measures would fund only a portion of the government, insufficient to prevent a shutdown.&nbsp;

This divide between the two chambers raises the spectre of the federal government experiencing its fourth shutdown in a decade come Sunday. The electoral deadlock tendencies have started to impact Wall Street's assessment of the credibility of the US government.&nbsp;

A cooperative short-term extension of federal funding at existing levels was passed with the help of Senate Majority Leader Chuck Schumer, a Democrat, and Senate Republican Leader Mitch McConnell in an effort to maintain the continuity of the government.&nbsp;

Meanwhile, House Speaker Kevin McCarthy is pursuing a path that would temporarily fund the government but comes with stringent border and immigration restrictions that are unlikely to garner enough Democratic support in both chambers to become law.&nbsp;

In an effort to prevent a shutdown, President Joe Biden and McCarthy had previously reached an agreement in May, which outlined discretionary spending of $1.59 trillion for the fiscal year commencing on October 1. &nbsp;

According to Reuters, the White House now urged Republicans to honour this deal, with Press Secretary Karine Jean-Pierre stating, "House Republicans should join the Senate in doing their job, stop playing political games with peoples' lives, and abide by the bipartisan deal two-thirds of them voted for in May."&nbsp;

However, Republicans have rejected this deal, demanding an additional $120 billion in cuts. McCarthy's proposed legislation not only seeks to restart the construction of the U.S.-Mexico border wall, a hallmark policy of former President Donald Trump, but also aims to control immigration policies, a move criticised for potentially limiting U.S. asylum for immigrants.&nbsp;

What does the shutdown mean?&nbsp;

A government shutdown could have far-reaching effects, including the dismissal of hundreds of thousands of federal employees and the suspension of a number of services, from the release of economic data to nutrition support, beginning on Sunday if an agreement cannot be reached.&nbsp;

While credit rating agency Moody's has expressed concerns, the impact on U.S. creditworthiness remains uncertain, as past shutdowns have had limited effects on the world's largest economy.&nbsp;

Against this backdrop, former President Donald Trump, the front-runner for the 2024 Republican nomination, has publicly supported the notion of a shutdown.&nbsp;

The cuts advocated by the Republicans represent only a fraction of the total U.S. budget, projected to reach $6.4 trillion for this fiscal year. Notably, popular benefit programs like Social Security and Medicare are not under consideration for cuts.&nbsp;

Historically, Congress has resorted to government shutdowns 14 times since 1981, though most of these funding gaps have been short-lived, lasting only a day or two.&nbsp;

(With inputs from Reuters)&nbsp;

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As the clock ticks down to a looming government shutdown, the U.S. Senate and House of Representatives find themselves on duelling paths regarding funding measures, raising concerns about the stability of government operations.

As the clock ticks down to a looming government shutdown, the U.S. Senate and House of Representatives find themselves on duelling paths regarding funding measures, raising concerns about the stability of government operations. In a move towards averting a shutdown, the Senate voted 77-19 to initiate debates on a bipartisan bill aimed at funding the government through November 17. This bill includes allocations of approximately $6 billion for domestic disaster responses and an additional roughly $6 billion in aid for Ukraine. Contrastingly, the Republican-controlled House of Representatives is advancing its own partisan approach that leans heavily on conservative priorities. However, this approach, according to reports, faces significant hurdles in the Democratic-majority Senate and is unlikely to become law. Even if enacted, these measures would fund only a portion of the government, insufficient to prevent a shutdown. This divide between the two chambers raises the spectre of the federal government experiencing its fourth shutdown in a decade come Sunday. The electoral deadlock tendencies have started to impact Wall Street's assessment of the credibility of the US government. A cooperative short-term extension of federal funding at existing levels was passed with the help of Senate Majority Leader Chuck Schumer, a Democrat, and Senate Republican Leader Mitch McConnell in an effort to maintain the continuity of the government. Meanwhile, House Speaker Kevin McCarthy is pursuing a path that would temporarily fund the government but comes with stringent border and immigration restrictions that are unlikely to garner enough Democratic support in both chambers to become law. In an effort to prevent a shutdown, President Joe Biden and McCarthy had previously reached an agreement in May, which outlined discretionary spending of $1.59 trillion for the fiscal year commencing on October 1. According to Reuters, the White House now urged Republicans to honour this deal, with Press Secretary Karine Jean-Pierre stating, "House Republicans should join the Senate in doing their job, stop playing political games with peoples' lives, and abide by the bipartisan deal two-thirds of them voted for in May." However, Republicans have rejected this deal, demanding an additional $120 billion in cuts. McCarthy's proposed legislation not only seeks to restart the construction of the U.S.-Mexico border wall, a hallmark policy of former President Donald Trump, but also aims to control immigration policies, a move criticised for potentially limiting U.S. asylum for immigrants. What does the shutdown mean? A government shutdown could have far-reaching effects, including the dismissal of hundreds of thousands of federal employees and the suspension of a number of services, from the release of economic data to nutrition support, beginning on Sunday if an agreement cannot be reached. While credit rating agency Moody's has expressed concerns, the impact on U.S. creditworthiness remains uncertain, as past shutdowns have had limited effects on the world's largest economy. Against this backdrop, former President Donald Trump, the front-runner for the 2024 Republican nomination, has publicly supported the notion of a shutdown. The cuts advocated by the Republicans represent only a fraction of the total U.S. budget, projected to reach $6.4 trillion for this fiscal year. Notably, popular benefit programs like Social Security and Medicare are not under consideration for cuts. Historically, Congress has resorted to government shutdowns 14 times since 1981, though most of these funding gaps have been short-lived, lasting only a day or two. (With inputs from Reuters) WATCH WION LIVE HERE

Impending government shutdown threatens US as Senate and House clash over funding 

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Zee News Rajasthan

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Shashwat Sankranti

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