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As West Asian countries are splurging billions of dollars into artificial intelligence (AI) start-ups in the recent drastic shift toward technology investment, countries such as Saudi Arabia, United Arab Emirates, Kuwait, and Qatar are trying to diversify their economies by spending a serious amount of their oil earned wealth, to maintain a foothold in the rapidly evolving technology landscape. Investments by state-supported funds have leaped five-fold over the last year, according to Pitchbook.

As a matter of fact, such a trend is already being exemplified in the UAE-based MGX fund, reportedly intending to join OpenAI's last fund-raising round. Such round values OpenAI at about $150 billion; thus it has unveiled quite enormous financial strength being harnessed by these sovereign funds as detailed in a report by CNBC. 

Hence, West Asian sovereign wealth funds are emerging as key players in Silicon Valley's AI ecosystem. As long as oil prices continue climbing, these nations can continue to amass more and more wealth, which they can invest heavily in promising AI ventures. "The Gulf Cooperation Council (GCC) nations are likely to surge their combined wealth is expected to rise from $2.7 trillion to $3.5 trillion by 2026," Goldman Sachs forecasts.

Steps taken by funds to fuel growth <o:p></o:p>

The Saudi Public Investment Fund has more than $925 billion in assets and stands out as one of the largest in the world. PIF has invested heavily under Crown Prince Mohammed bin Salman's “Vision 2030”. Among its investments are a substantial stake in Uber and large investments in the LIV golf league and professional soccer.

Further, UAE’s Mubadala has $302 billion under management, and the Abu Dhabi Investment Authority has $1 trillion under management. Qatar Investment Authority has $475 billion, while Kuwait’s fund has topped $800 billion.<o:p></o:p>

There are several strategic steps that these funds have taken recently, for example, MGX recently teamed up with BlackRock, Microsoft, and Global Infrastructure Partners to build AI infrastructure and will be raising as much as $100 billion in data centers and related projects. It was established only this year as an AI-only fund and positions itself to be a market leader through investments in AI in cooperation with its founding partners.

While Mubadala grabbed headlines in making investments in Anthropic, an OpenAI competitor, this proactivity has led Mubadala to conclude eight deals over four years in the AI space. However, such a hurry has sent a significant concern to national security, such that Anthropic reportedly turned away Saudi investors during its recent funding round.

The Saudi PIF also has negotiations ongoing concerning a $40 billion partnership with US-based capital firm Hennessy Capital, and it has also established its own dedicated AI fund named the Saudi Company for Artificial Intelligence or SCAI.

Geopolitical effects<o:p></o:p>

While there are investment opportunities aplenty, the situation is still against a backdrop of geopolitical tension. This remains one of the reasons why Saudi Arabia's human rights record continues to raise red flags for some Western enterprises and startups. The way in which&nbsp;Jamal Khashoggi was assassinated has only brought this into sharp focus.

Despite these problems, even investment in AI is not exclusive to West Asia. Other global players are also on the move; for instance, France's sovereign fund Bpifrance has signed up on 161 AI deals in the last four years while Singapore's Temasek has done 47.

The in-flooding of capital by West Asian funds has opened up a discussion in Silicon Valley among investors about the "SoftBank effect." It is an influence of Masayoshi Son's Vision Fund, which inflated the valuations of companies like Uber and WeWork just before they went public.

Hence, in the context of this development, huge investments by sovereign wealth funds in West Asia in AI startups tend to modify their future economic prospects but also change landscapes in technology globally.

These countries look forward to being considerable contributors to the technology sector as they sail through rather complicated waters of geopolitics with significant financial support and strategic partnerships in many sectors. The coming years will indeed be the testing period as they will keep searching to balance economic diversification with international scrutiny and competition.

As West Asian countries are splurging billions of dollars into artificial intelligence (AI) start-ups in the recent drastic shift toward technology investment, countries such as Saudi Arabia, United Arab Emirates, Kuwait, and Qatar are trying to diversify their economies by spending a serious amount of their oil earned wealth, to maintain a foothold in the rapidly evolving technology landscape.

As West Asian countries are splurging billions of dollars into artificial intelligence (AI) start-ups in the recent drastic shift toward technology investment, countries such as Saudi Arabia, United Arab Emirates, Kuwait, and Qatar are trying to diversify their economies by spending a serious amount of their oil earned wealth, to maintain a foothold in the rapidly evolving technology landscape. Investments by state-supported funds have leaped five-fold over the last year, according to Pitchbook. As a matter of fact, such a trend is already being exemplified in the UAE-based MGX fund, reportedly intending to join OpenAI's last fund-raising round. Such round values OpenAI at about $150 billion; thus it has unveiled quite enormous financial strength being harnessed by these sovereign funds as detailed in a report by CNBC. Hence, West Asian sovereign wealth funds are emerging as key players in Silicon Valley's AI ecosystem. As long as oil prices continue climbing, these nations can continue to amass more and more wealth, which they can invest heavily in promising AI ventures. "The Gulf Cooperation Council (GCC) nations are likely to surge their combined wealth is expected to rise from $2.7 trillion to $3.5 trillion by 2026," Goldman Sachs forecasts. Steps taken by funds to fuel growth The Saudi Public Investment Fund has more than $925 billion in assets and stands out as one of the largest in the world. PIF has invested heavily under Crown Prince Mohammed bin Salman's “Vision 2030”. Among its investments are a substantial stake in Uber and large investments in the LIV golf league and professional soccer. Further, UAE’s Mubadala has $302 billion under management, and the Abu Dhabi Investment Authority has $1 trillion under management. Qatar Investment Authority has $475 billion, while Kuwait’s fund has topped $800 billion. There are several strategic steps that these funds have taken recently, for example, MGX recently teamed up with BlackRock, Microsoft, and Global Infrastructure Partners to build AI infrastructure and will be raising as much as $100 billion in data centers and related projects. It was established only this year as an AI-only fund and positions itself to be a market leader through investments in AI in cooperation with its founding partners. While Mubadala grabbed headlines in making investments in Anthropic, an OpenAI competitor, this proactivity has led Mubadala to conclude eight deals over four years in the AI space. However, such a hurry has sent a significant concern to national security, such that Anthropic reportedly turned away Saudi investors during its recent funding round. The Saudi PIF also has negotiations ongoing concerning a $40 billion partnership with US-based capital firm Hennessy Capital, and it has also established its own dedicated AI fund named the Saudi Company for Artificial Intelligence or SCAI. Geopolitical effects While there are investment opportunities aplenty, the situation is still against a backdrop of geopolitical tension. This remains one of the reasons why Saudi Arabia's human rights record continues to raise red flags for some Western enterprises and startups. The way in which Jamal Khashoggi was assassinated has only brought this into sharp focus. Despite these problems, even investment in AI is not exclusive to West Asia. Other global players are also on the move; for instance, France's sovereign fund Bpifrance has signed up on 161 AI deals in the last four years while Singapore's Temasek has done 47. The in-flooding of capital by West Asian funds has opened up a discussion in Silicon Valley among investors about the "SoftBank effect." It is an influence of Masayoshi Son's Vision Fund, which inflated the valuations of companies like Uber and WeWork just before they went public. Hence, in the context of this development, huge investments by sovereign wealth funds in West Asia in AI startups tend to modify their future economic prospects but also change landscapes in technology globally. These countries look forward to being considerable contributors to the technology sector as they sail through rather complicated waters of geopolitics with significant financial support and strategic partnerships in many sectors. The coming years will indeed be the testing period as they will keep searching to balance economic diversification with international scrutiny and competition.

West Asian sovereign funds pour billions in AI investments

In a crucial turn of events, foreign investors have poured approximately Rs 33,700 crore into Indian equities throughout September 2024. This surge is largely attributed to the recent interest rate cut by the US Federal Reserve and the resilience of the Indian market. This influx marks the second-highest monthly investment this year, closely following March's impressive tally of Rs 35,100 crore as detailed in a report by the Press Trust of India. 

Further, due to the impressive buying by foreign institutional investors, Sensex and Nifty 50 have both scaled new record highs. Sensex has scaled an all-time high of 84,881 points, whereas Nifty 50 has touched a fresh all-time high of 25,925 as of early morning trade on September 23. 

The latest data indicates that total Foreign Portfolio Investment (FPI) in Indian equities has now reached Rs 76,572 crore for the year. Since June, there has been a notable shift from previous withdrawal trends to aggressive buying. The catalyst for this renewed interest was the US Federal Reserve's decision to reduce rates by 50 basis points on September 18, signaling a potential pivot towards lower interest rates in the near future.

Factors behind the investment surge<o:p></o:p>

Market analysts are optimistic about the implications of the Fed's rate cut. They anticipate that rates could stabilize around 3.4 per cent by late 2025. As US bond yields decline, emerging markets like India become increasingly attractive to foreign investors. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that "the trigger for the aggressive buying by FPIs was the 50 basis points rate cut by the US Federal Reserve on September 18," which he described as a significant pivot towards a new rate-cutting cycle.

In addition to favorable global economic conditions, several domestic factors are contributing to this surge in FPI interest. These include balanced fiscal deficits, robust economic fundamentals in India, and a resilient rupee that reflects growing confidence in India's financial stability. However, experts warn that while this influx is promising, it could lead to market overheating and inflated valuations.

&nbsp;Implications for the Indian market<o:p></o:p>

The flow of FPI capital has not only bolstered equity markets but also strengthened the Indian Rupee (INR), which appreciated by 0.4 per cent for the week ending September 20. This positive momentum is expected to further encourage foreign investments as global markets shift focus towards emerging economies.<o:p></o:p>

In addition to equities, FPIs have also invested significantly in debt instruments through various routes. Approximately Rs 7,361 crore was infused via the Voluntary Retention Route (VRR), which promotes long-term investments, while Rs 19,601 crore was invested through the Fully Accessible Route (FRR), enhancing liquidity for foreign investors.

Despite these positive developments, market experts remain vigilant about potential risks stemming from ongoing global volatility and recession fears. The actions of the Reserve Bank of India (RBI) will be crucial in determining future monetary policy direction and its alignment with global trends.

Therefore, the substantial infusion of FPIs into Indian equities underscores not only a growing confidence in India's market but also highlights a strategic shift towards emerging economies amid changing global financial dynamics. As these trends continue to evolve, stakeholders must remain attentive to both domestic and international developments that could shape investment landscapes in the coming months.

In a crucial turn of events, foreign investors have poured approximately Rs 33,700 crore into Indian equities throughout September 2024. This surge is largely attributed to the recent interest rate cut by the US Federal Reserve and the resilience of the Indian market.

In a crucial turn of events, foreign investors have poured approximately Rs 33,700 crore into Indian equities throughout September 2024. This surge is largely attributed to the recent interest rate cut by the US Federal Reserve and the resilience of the Indian market. This influx marks the second-highest monthly investment this year, closely following March's impressive tally of Rs 35,100 crore as detailed in a report by the Press Trust of India. Further, due to the impressive buying by foreign institutional investors, Sensex and Nifty 50 have both scaled new record highs. Sensex has scaled an all-time high of 84,881 points, whereas Nifty 50 has touched a fresh all-time high of 25,925 as of early morning trade on September 23. The latest data indicates that total Foreign Portfolio Investment (FPI) in Indian equities has now reached Rs 76,572 crore for the year. Since June, there has been a notable shift from previous withdrawal trends to aggressive buying. The catalyst for this renewed interest was the US Federal Reserve's decision to reduce rates by 50 basis points on September 18, signaling a potential pivot towards lower interest rates in the near future. Factors behind the investment surge Market analysts are optimistic about the implications of the Fed's rate cut. They anticipate that rates could stabilize around 3.4 per cent by late 2025. As US bond yields decline, emerging markets like India become increasingly attractive to foreign investors. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that "the trigger for the aggressive buying by FPIs was the 50 basis points rate cut by the US Federal Reserve on September 18," which he described as a significant pivot towards a new rate-cutting cycle. In addition to favorable global economic conditions, several domestic factors are contributing to this surge in FPI interest. These include balanced fiscal deficits, robust economic fundamentals in India, and a resilient rupee that reflects growing confidence in India's financial stability. However, experts warn that while this influx is promising, it could lead to market overheating and inflated valuations. Implications for the Indian market The flow of FPI capital has not only bolstered equity markets but also strengthened the Indian Rupee (INR), which appreciated by 0.4 per cent for the week ending September 20. This positive momentum is expected to further encourage foreign investments as global markets shift focus towards emerging economies. In addition to equities, FPIs have also invested significantly in debt instruments through various routes. Approximately Rs 7,361 crore was infused via the Voluntary Retention Route (VRR), which promotes long-term investments, while Rs 19,601 crore was invested through the Fully Accessible Route (FRR), enhancing liquidity for foreign investors. Despite these positive developments, market experts remain vigilant about potential risks stemming from ongoing global volatility and recession fears. The actions of the Reserve Bank of India (RBI) will be crucial in determining future monetary policy direction and its alignment with global trends. Therefore, the substantial infusion of FPIs into Indian equities underscores not only a growing confidence in India's market but also highlights a strategic shift towards emerging economies amid changing global financial dynamics. As these trends continue to evolve, stakeholders must remain attentive to both domestic and international developments that could shape investment landscapes in the coming months.

Foreign Investors inject Rs 33,700 crore into Indian equities, market hits record highs, amid US rate cut

Masdar is near finalising a deal to buy Spanish renewable energy firm Saeta Yield SA from Brookfield Asset Management, according to people familiar with the matter, according to a report by Bloomberg.

The Abu Dhabi clean-energy firm is finalising the deal that may be announced this month, the people said, asking not to be named as discussions are private.

Saeta, which owns assets in Spain and Portugal, could be valued at as much as €1.5 billion ($1.7 billion), local reports said.

Clean-energy companies have been attracting investor interest across several European markets in recent months as high interest rates and equipment costs brought valuations down. Spain is one of the major markets for solar power in the region.

Talks between Masdar and Saeta regarding a deal are advanced, those people said, although the talks could be delayed or derailed. Brookfield's spokesman declined to comment. A press officer for Masdar said the fund doesn't comment on "market speculation." A representative for Saeta didn't immediately respond to requests for comment outside regular business hours.

It would be the second clean-energy deal for Masdar in Spain in as many months. In July, Masdar agreed to purchase a minority stake in a portfolio of solar fields from Enel SpA's subsidiary.

Brookfield took Saeta private in 2018 after first acquiring the company. The Madrid-based company was listed early in 2015 during a frenzy of investor interest in so-called yieldcos — a type of renewable energy firm whose plants produce a steady flow of dividends and require low levels of investment.

Mark Carney, chair of Brookfield Asset Management, also chairs Bloomberg Inc.

Masdar is near finalising a deal to buy Spanish renewable energy firm Saeta Yield SA from Brookfield Asset Management, according to people familiar with the matter, according to a report by Bloomberg.

Masdar is near finalising a deal to buy Spanish renewable energy firm Saeta Yield SA from Brookfield Asset Management, according to people familiar with the matter, according to a report by Bloomberg. The Abu Dhabi clean-energy firm is finalising the deal that may be announced this month, the people said, asking not to be named as discussions are private. Saeta, which owns assets in Spain and Portugal, could be valued at as much as €1.5 billion ($1.7 billion), local reports said. Clean-energy companies have been attracting investor interest across several European markets in recent months as high interest rates and equipment costs brought valuations down. Spain is one of the major markets for solar power in the region. Talks between Masdar and Saeta regarding a deal are advanced, those people said, although the talks could be delayed or derailed. Brookfield's spokesman declined to comment. A press officer for Masdar said the fund doesn't comment on "market speculation." A representative for Saeta didn't immediately respond to requests for comment outside regular business hours. It would be the second clean-energy deal for Masdar in Spain in as many months. In July, Masdar agreed to purchase a minority stake in a portfolio of solar fields from Enel SpA's subsidiary. Brookfield took Saeta private in 2018 after first acquiring the company. The Madrid-based company was listed early in 2015 during a frenzy of investor interest in so-called yieldcos — a type of renewable energy firm whose plants produce a steady flow of dividends and require low levels of investment. Mark Carney, chair of Brookfield Asset Management, also chairs Bloomberg Inc.

Clean energy company Masdar close to acquiring Brookfield's Saeta Yield

Sri Lankans vote in a presidential election that will chart the country's future in recovery from its worst economic crisis and subsequent political turmoil.

The election, with 38 candidates, effectively presents a three-way showdown between incumbent liberal President Ranil Wickremesinghe, legislator Anura Kumara Dissanayake, and opposition leader Sajith Premadasa.

There are 17 million eligible voters, and final results are due today.

Results will reflect whether the people of Sri Lanka approve of Wickremesinghe's leadership over the country's fragile recovery, including its debt restructuring under an International Monetary Fund program after it defaulted in 2022.

The government said Thursday that it cleared the last hurdle in debt restructuring by agreeing in principle with private bondholders.

Sri Lanka had $83 billion in local and foreign debt at the time it defaulted. The government says it has restructured more than $17 billion.

But even as important economic figures have improved considerably, Sri Lankans still fight against high taxes and rising living costs.

Both Premadasa and Dissanayake promise to renegotiate the IMF deal to make austerity measures more bearable. Wickremesinghe has warned that any move to alter the basics of the agreement could delay the release of a fourth tranche of nearly $3 billion in assistance pledged by the IMF that's crucial to maintaining stability.

For most Sri Lankans, this is an economy-driven election, hoping that a new government would take the country out of a complete crisis and end long-established corruption in the system.

“I think corruption is one of the main reasons that led the country to the present pathetic condition. So, the next leader should pay attention to eliminate corruption and start building the country,” said Chandrakumar Suriyaarachchi, a driver who voted in Saturday's election. "Our children deserve a better life.”

Political analysts note that a widespread disillusion with the traditional political elite, blamed by many for Sri Lanka's economic instability, could mean that no one candidate is to win more than 50 per cent of the votes as a first preference to clinch the presidency. In that event, the top two candidates will proceed to a second round that takes into consideration the votes made in the second preference.

In the event of no obvious winner of the power, the island nation could succumb to further instability.

Voter Visaka Dissanayake said he hopes Sri Lanka votes for a “strong leader, who will set the path for economic recovery."

“We have now come out of a very difficult situation. So, I hope the economic recovery will continue,” Dissanayake said.

Sri Lanka's economic crisis has largely originated from excessive borrowing on projects that did not generate revenues. The onslaught of the COVID-19 pandemic and government insistence on using scarce foreign reserves to prop up the currency, the rupee, have contributed to the free fall of the economy.

The economic meltdown resulted in severe shortages, especially for medicine, food, cooking gas, and fuel, with individuals waiting for days to buy them. This situation resulted in riots, as protesters captured key buildings within the country, including the house of the president and his office, as well as the office of the prime minister, compelling then-President Gotabaya Rajapaksa to leave the country and resign.

Wickremesinghe was elected by a parliamentary vote in July 2022 to complete the five years of Rajapaksa's term. Now, Wickremesinghe is seeking another term to solidify the achievements he has been able to make up so far.

But many also accuse him of shielding members of the Rajapaksa family, whom they blame for the economic crisis.

Wickremesinghe was elected largely on the votes of Rajapaksa loyalists as the sole member of his party in Parliament and also served in his Cabinet and voted for his reforms.

Sri Lankans vote in a presidential election that will chart the country's future in recovery from its worst economic crisis and subsequent political turmoil. The election, with 38 candidates, effectively presents a three-way showdown between incumbent liberal President Ranil Wickremesinghe, legislator Anura Kumara Dissanayake, and opposition leader Sajith Premadasa.

Sri Lankans vote in a presidential election that will chart the country's future in recovery from its worst economic crisis and subsequent political turmoil. The election, with 38 candidates, effectively presents a three-way showdown between incumbent liberal President Ranil Wickremesinghe, legislator Anura Kumara Dissanayake, and opposition leader Sajith Premadasa. There are 17 million eligible voters, and final results are due today. Results will reflect whether the people of Sri Lanka approve of Wickremesinghe's leadership over the country's fragile recovery, including its debt restructuring under an International Monetary Fund program after it defaulted in 2022. The government said Thursday that it cleared the last hurdle in debt restructuring by agreeing in principle with private bondholders. Sri Lanka had $83 billion in local and foreign debt at the time it defaulted. The government says it has restructured more than $17 billion. But even as important economic figures have improved considerably, Sri Lankans still fight against high taxes and rising living costs. Both Premadasa and Dissanayake promise to renegotiate the IMF deal to make austerity measures more bearable. Wickremesinghe has warned that any move to alter the basics of the agreement could delay the release of a fourth tranche of nearly $3 billion in assistance pledged by the IMF that's crucial to maintaining stability. For most Sri Lankans, this is an economy-driven election, hoping that a new government would take the country out of a complete crisis and end long-established corruption in the system. “I think corruption is one of the main reasons that led the country to the present pathetic condition. So, the next leader should pay attention to eliminate corruption and start building the country,” said Chandrakumar Suriyaarachchi, a driver who voted in Saturday's election. "Our children deserve a better life.” Political analysts note that a widespread disillusion with the traditional political elite, blamed by many for Sri Lanka's economic instability, could mean that no one candidate is to win more than 50 per cent of the votes as a first preference to clinch the presidency. In that event, the top two candidates will proceed to a second round that takes into consideration the votes made in the second preference. In the event of no obvious winner of the power, the island nation could succumb to further instability. Voter Visaka Dissanayake said he hopes Sri Lanka votes for a “strong leader, who will set the path for economic recovery." “We have now come out of a very difficult situation. So, I hope the economic recovery will continue,” Dissanayake said. Sri Lanka's economic crisis has largely originated from excessive borrowing on projects that did not generate revenues. The onslaught of the COVID-19 pandemic and government insistence on using scarce foreign reserves to prop up the currency, the rupee, have contributed to the free fall of the economy. The economic meltdown resulted in severe shortages, especially for medicine, food, cooking gas, and fuel, with individuals waiting for days to buy them. This situation resulted in riots, as protesters captured key buildings within the country, including the house of the president and his office, as well as the office of the prime minister, compelling then-President Gotabaya Rajapaksa to leave the country and resign. Wickremesinghe was elected by a parliamentary vote in July 2022 to complete the five years of Rajapaksa's term. Now, Wickremesinghe is seeking another term to solidify the achievements he has been able to make up so far. But many also accuse him of shielding members of the Rajapaksa family, whom they blame for the economic crisis. Wickremesinghe was elected largely on the votes of Rajapaksa loyalists as the sole member of his party in Parliament and also served in his Cabinet and voted for his reforms.

Sri Lanka polls: Presidential election pivotal to economic recovery

Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures.

Brazil's primary deficit, excluding interest payments, is now at 28.3 billion reais ($5.1 billion), within the country's fiscal rules. According to numbers announced by the Planning Ministry, the economic team remains close to its tolerance range of 28.8 billion reais.

The ministry said in a note to the report that the government will block an additional 2.1 billion reais at the same time as it unfreezes 3.8 reais. Estimates of extraordinary revenues fell.

President Luiz Inacio Lula da Silva's administration had tried to close its budget by 2024. It appears now that the year in deficit within tolerance will be ended after two freezes on the budget, including an initial 15 billion reais in July.

Investors also seem hard to believe that Finance Minister Fernando Haddad is trying to strengthen public accounts, with the left-wing Lula continuing to demand more spending.

“Our numbers are good ones, that’s the truth,” Haddad said to reporters after the event Friday night in Sao Paulo. “People expected a budget out of control, and that’s not what’s happening.”

More cause for investor alarm, the government announced extraordinary credits to help combat wildfires across the country early this week. That spending will circumvent fiscal rules because it won't count in the calculation of the primary deficit, but it is still part of Brazil's total net debt, which stands at some 62 per cent of GDP.

Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures.

Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures. Brazil's primary deficit, excluding interest payments, is now at 28.3 billion reais ($5.1 billion), within the country's fiscal rules. According to numbers announced by the Planning Ministry, the economic team remains close to its tolerance range of 28.8 billion reais. The ministry said in a note to the report that the government will block an additional 2.1 billion reais at the same time as it unfreezes 3.8 reais. Estimates of extraordinary revenues fell. President Luiz Inacio Lula da Silva's administration had tried to close its budget by 2024. It appears now that the year in deficit within tolerance will be ended after two freezes on the budget, including an initial 15 billion reais in July. Investors also seem hard to believe that Finance Minister Fernando Haddad is trying to strengthen public accounts, with the left-wing Lula continuing to demand more spending. “Our numbers are good ones, that’s the truth,” Haddad said to reporters after the event Friday night in Sao Paulo. “People expected a budget out of control, and that’s not what’s happening.” More cause for investor alarm, the government announced extraordinary credits to help combat wildfires across the country early this week. That spending will circumvent fiscal rules because it won't count in the calculation of the primary deficit, but it is still part of Brazil's total net debt, which stands at some 62 per cent of GDP.

Brazil reduces 2024 spending freeze in response to investor budget worries

Australia expects to wrap up an agreement with the United States over critical minerals before the end of the year, Prime Minister Anthony Albanese said on Friday, according to a report by Bloomberg.

Critical minerals and their supply chain will become vital to global growth from here onward, Albanese said, addressing reporters in Philadelphia on Friday after a meeting with US President Joe Biden.

“As we move forward and we look at the drivers of global growth in this century, Australia has the entire periodic table basically of what will be needed,” he said. “That presents an opportunity not just to get access to those resources, but how value is added to it and the supply chain issues that are related to that.”

He and Biden “had a really good discussion about progressing that and we are hopeful that that will be finalised by the end of this year,” Albanese said.

Over a year ago, the two nations started discussing the Australia-US Climate, Critical Minerals, and Clean Energy Transformation Compact. The collaboration seeks to ensure a stable and sustainable supply of a range of rare earth minerals used in high technology at a time when China dominates the market and controls about 70 per cent of global output.

Albanese said he and Biden discussed how they can cooperate in developing critical minerals and also “the potential that’s there as well for further work to involve other nations like Canada and other like-minded countries to achieve our objectives.”

Albanese was speaking ahead of a meeting with the Quadrilateral Security Dialogue, which also includes India and Japan. His comments were reported by ABC News.

Australia expects to wrap up an agreement with the United States over critical minerals before the end of the year, Prime Minister Anthony Albanese said on Friday, according to a report by Bloomberg.

Australia expects to wrap up an agreement with the United States over critical minerals before the end of the year, Prime Minister Anthony Albanese said on Friday, according to a report by Bloomberg. Critical minerals and their supply chain will become vital to global growth from here onward, Albanese said, addressing reporters in Philadelphia on Friday after a meeting with US President Joe Biden. “As we move forward and we look at the drivers of global growth in this century, Australia has the entire periodic table basically of what will be needed,” he said. “That presents an opportunity not just to get access to those resources, but how value is added to it and the supply chain issues that are related to that.” He and Biden “had a really good discussion about progressing that and we are hopeful that that will be finalised by the end of this year,” Albanese said. Over a year ago, the two nations started discussing the Australia-US Climate, Critical Minerals, and Clean Energy Transformation Compact. The collaboration seeks to ensure a stable and sustainable supply of a range of rare earth minerals used in high technology at a time when China dominates the market and controls about 70 per cent of global output. Albanese said he and Biden discussed how they can cooperate in developing critical minerals and also “the potential that’s there as well for further work to involve other nations like Canada and other like-minded countries to achieve our objectives.” Albanese was speaking ahead of a meeting with the Quadrilateral Security Dialogue, which also includes India and Japan. His comments were reported by ABC News.

Australia aims to finalise critical minerals agreement with US this year

Intel Corp. shares rose after the Wall Street Journal said Qualcomm Inc. approached the company about a takeover, a potential record-setting deal for the chip industry, according to a report by Bloomberg.

According to the newspaper, citing unnamed people familiar with the situation, the talks took place in the past few days. A deal is still far from certain, the Journal said. Representatives for both companies declined to comment.

Shares rose 3.4 per cent to $21.87 in New York trading Friday, recovering from an earlier decline. The stock remains down 56 per cent this year.

Intel, once the world's largest chipmaker, has been suffering flagging sales and mounting losses that have eroded the technological edge it once enjoyed. As things stand now, the company's valuation, at $93.5 billion, is now roughly half that of Qualcomm. Still, a takeover would be the largest-ever transaction in the semiconductor market and could reshuffle the landscape.

Qualcomm, based in San Diego, dropped 2.9 per cent as concerns about the risks of this type of deal spooked investors.

Santa Clara, California-based Intel reported this week it was implementing a slew of overhauls in an effort to restore its business. The changes included a multibillion-dollar deal with Amazon.com Inc. to create a custom AI semiconductor and a plan to turn Intel's flagging manufacturing business into a wholly owned subsidiary.

Qualcomm designs the world's most processors for smartphones but has been trying to diversify itself. That includes chips that will run personal computers, where Intel is still the dominant player.

Like much of the industry, Qualcomm does not make its own chips. It outsources production to partners such as Taiwan Semiconductor Manufacturing Co., which also makes chips for Nvidia Corp. and Advanced Micro Devices Inc.

Buying Intel would give Qualcomm access to its own US-based production as well as the biggest brand in the market for PCs and traditional server computers. 
&nbsp; 
The problems of Intel, however, would not be solved through a takeover from Qualcomm. The would-be suitor also does not have experience in manufacturing or doing the science behind the production of cutting-edge technology — an area where TSMC excels.

Over six years ago, Qualcomm was found mired in a very contentious takeover saga by Broadcom Inc. Broadcom subsequently backed away from its bid after President Donald Trump blocked the deal, citing national security risks.

Intel Corp. shares rose after the Wall Street Journal said Qualcomm Inc. approached the company about a takeover, a potential record-setting deal for the chip industry, according to a report by Bloomberg.

Intel Corp. shares rose after the Wall Street Journal said Qualcomm Inc. approached the company about a takeover, a potential record-setting deal for the chip industry, according to a report by Bloomberg. According to the newspaper, citing unnamed people familiar with the situation, the talks took place in the past few days. A deal is still far from certain, the Journal said. Representatives for both companies declined to comment. Shares rose 3.4 per cent to $21.87 in New York trading Friday, recovering from an earlier decline. The stock remains down 56 per cent this year. Intel, once the world's largest chipmaker, has been suffering flagging sales and mounting losses that have eroded the technological edge it once enjoyed. As things stand now, the company's valuation, at $93.5 billion, is now roughly half that of Qualcomm. Still, a takeover would be the largest-ever transaction in the semiconductor market and could reshuffle the landscape. Qualcomm, based in San Diego, dropped 2.9 per cent as concerns about the risks of this type of deal spooked investors. Santa Clara, California-based Intel reported this week it was implementing a slew of overhauls in an effort to restore its business. The changes included a multibillion-dollar deal with Amazon.com Inc. to create a custom AI semiconductor and a plan to turn Intel's flagging manufacturing business into a wholly owned subsidiary. Qualcomm designs the world's most processors for smartphones but has been trying to diversify itself. That includes chips that will run personal computers, where Intel is still the dominant player. Like much of the industry, Qualcomm does not make its own chips. It outsources production to partners such as Taiwan Semiconductor Manufacturing Co., which also makes chips for Nvidia Corp. and Advanced Micro Devices Inc. Buying Intel would give Qualcomm access to its own US-based production as well as the biggest brand in the market for PCs and traditional server computers. The problems of Intel, however, would not be solved through a takeover from Qualcomm. The would-be suitor also does not have experience in manufacturing or doing the science behind the production of cutting-edge technology — an area where TSMC excels. Over six years ago, Qualcomm was found mired in a very contentious takeover saga by Broadcom Inc. Broadcom subsequently backed away from its bid after President Donald Trump blocked the deal, citing national security risks.

Intel rises following report of Qualcomm's takeover approach

Donald Trump, the Republican presidential candidate, described the move by the Federal Reserve to cut its benchmark interest rate by half a percentage point as a " political move," and said it would have been better if the move had been smaller, according to a report by Bloomberg.

“It really is a political move. Most people thought it was going to be half of that number, which probably would have been the right thing to do,” Trump said in an interview with Newsmax on Thursday. “So it’s a political move to try and keep somebody in office, but it’s not gonna work, because the inflation has been so bad.”

The former president appeared to then level criticism at Fed Chairman Jerome Powell, saying he "missed the inflation."

“They missed it. They missed the number. They’re either too early or too late. Now they’re too early. Before they were too late. But inflation is already done,” Trump said.

The half-point cut was the Fed's first rate reduction in more than four years and came after holding rates at their highest level in two decades for more than a year.

Trump has often criticised the central bank and has said he believes that presidents should be involved in a greater capacity in determining the Fed's interest-rate decisions. That represents a direct contradiction of long-standing efforts to remove politics from such decisions to the extent possible. He also suggested not reappointing Powell as Fed chief.

His comments came after earlier Thursday when President Joe Biden said the rate reduction was "an important signal" that inflation had moderated.

“Lowering interest rates isn’t a declaration of victory,” Biden told the Economic Club of Washington, DC. “It’s a declaration of progress, to signal we’ve entered a new phase of our economy and our recovery.”

Donald Trump, the Republican presidential candidate, described the move by the Federal Reserve to cut its benchmark interest rate by half a percentage point as a " political move," and said it would have been better if the move had been smaller, according to a report by Bloomberg.

Donald Trump, the Republican presidential candidate, described the move by the Federal Reserve to cut its benchmark interest rate by half a percentage point as a " political move," and said it would have been better if the move had been smaller, according to a report by Bloomberg. “It really is a political move. Most people thought it was going to be half of that number, which probably would have been the right thing to do,” Trump said in an interview with Newsmax on Thursday. “So it’s a political move to try and keep somebody in office, but it’s not gonna work, because the inflation has been so bad.” The former president appeared to then level criticism at Fed Chairman Jerome Powell, saying he "missed the inflation." “They missed it. They missed the number. They’re either too early or too late. Now they’re too early. Before they were too late. But inflation is already done,” Trump said. The half-point cut was the Fed's first rate reduction in more than four years and came after holding rates at their highest level in two decades for more than a year. Trump has often criticised the central bank and has said he believes that presidents should be involved in a greater capacity in determining the Fed's interest-rate decisions. That represents a direct contradiction of long-standing efforts to remove politics from such decisions to the extent possible. He also suggested not reappointing Powell as Fed chief. His comments came after earlier Thursday when President Joe Biden said the rate reduction was "an important signal" that inflation had moderated. “Lowering interest rates isn’t a declaration of victory,” Biden told the Economic Club of Washington, DC. “It’s a declaration of progress, to signal we’ve entered a new phase of our economy and our recovery.”

Trump condemns Fed rate cut as a ‘political move’ destined to fail

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg.

The Securities and Exchange Board of India said the Axis Bank Ltd. unit transgressed rules for merchant banking and acted effectively in the domain of a debenture trustee - an act that is beyond its remit. Axis Capital has 21 days to contest the order.

Axis Bank said that its unit's activities were "bona-fide and in compliance with all applicable regulatory provisions." There is "no material impact" on the bank on account of the initial order by the regulator as Axis Capital contributed only 0.7 per cent of the lender's net income last fiscal year, the Mumbai-based bank said in a statement.

This comes months after SEBI barred JM Financial Ltd from undertaking merchant banking activity in the debt segment on the grounds of unfair trading practices. The regulator is looking at an overhaul of its merchant banking regulations to ensure that such firms don't undertake activities that are not part of the market.

The latest was an issue of debt by a technology consultancy provider Sojo Infotel Pvt. in March 2021. Axis Capital had arranged this issue.

“Axis Capital provided guarantee or indemnity toward redemption of NCDs in the guise of underwriting, which it was not permitted to do under the existing regulatory framework,” SEBI member Ashwani Bhatia said in the order. An NCD means a non-convertible debenture.

SEBI said that activities undertaken by Axis Capital as an arranger for Sojo Infotel's debt offering "pose risk to the financial system as it can potentially disrupt the orderly functioning of the market. "

Axis Capital was “taking credit risk exposure, rather than market risk,” Bhatia said. “By undertaking such activities, Axis Capital got into the realm of banking, as the Sojo transaction had all the ingredients of a banking transaction.”

It has been a year since Axis Capital has undertaken any debt arranging of offerings in India and does not view the order as having any material impact, said Axis Bank. The investment arm of the lender is evaluating all available legal remedies.

Still, the regulator pointed out that since Axis Capital is a unit of Axis Bank, the guarantee it provided to Sojo Infotel's NCDs exposed its parent to credit risks. That necessitates further examination from the Reserve Bank of India, it said.

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg.

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg. The Securities and Exchange Board of India said the Axis Bank Ltd. unit transgressed rules for merchant banking and acted effectively in the domain of a debenture trustee - an act that is beyond its remit. Axis Capital has 21 days to contest the order. Axis Bank said that its unit's activities were "bona-fide and in compliance with all applicable regulatory provisions." There is "no material impact" on the bank on account of the initial order by the regulator as Axis Capital contributed only 0.7 per cent of the lender's net income last fiscal year, the Mumbai-based bank said in a statement. This comes months after SEBI barred JM Financial Ltd from undertaking merchant banking activity in the debt segment on the grounds of unfair trading practices. The regulator is looking at an overhaul of its merchant banking regulations to ensure that such firms don't undertake activities that are not part of the market. The latest was an issue of debt by a technology consultancy provider Sojo Infotel Pvt. in March 2021. Axis Capital had arranged this issue. “Axis Capital provided guarantee or indemnity toward redemption of NCDs in the guise of underwriting, which it was not permitted to do under the existing regulatory framework,” SEBI member Ashwani Bhatia said in the order. An NCD means a non-convertible debenture. SEBI said that activities undertaken by Axis Capital as an arranger for Sojo Infotel's debt offering "pose risk to the financial system as it can potentially disrupt the orderly functioning of the market. " Axis Capital was “taking credit risk exposure, rather than market risk,” Bhatia said. “By undertaking such activities, Axis Capital got into the realm of banking, as the Sojo transaction had all the ingredients of a banking transaction.” It has been a year since Axis Capital has undertaken any debt arranging of offerings in India and does not view the order as having any material impact, said Axis Bank. The investment arm of the lender is evaluating all available legal remedies. Still, the regulator pointed out that since Axis Capital is a unit of Axis Bank, the guarantee it provided to Sojo Infotel's NCDs exposed its parent to credit risks. That necessitates further examination from the Reserve Bank of India, it said.

India prohibits Axis Bank unit from handling new debt issuances

JPMorgan Chase said on Thursday that it has reshuffled its leadership, with a push to strengthen its healthcare and technology investment banking, according to an internal memo that Reuters had seen.

The memo said Ben Carpenter and Jeremy Meilman will be global co-heads of healthcare investment banking, while Chris Grose and Greg Mendelson are picked as global co-heads of technology investment banking.

The investment bank is one of the bright spots for the major Wall Street firms as more companies strive to raise capital through debt or equity offerings and engage in takeover deals, driven by growing confidence in the US economic outlook.

JPMorgan beat estimates for second-quarter profit in July, helped by a resurgence in dealmaking and strong capital markets.

Its investment banking revenue surged 46 per cent to $2.5 billion for the quarter ended June, versus a low base a year ago.

Carpenter is an industry veteran who rejoined JPMorgan from Citigroup in 2021 as a healthcare mergers and acquisitions (M&amp;A) banker, and Meilman has been with the bank for close to two decades, the memo said.

Grose joined JPMorgan's technology and diversified industries team in 2005, while Mendelson has been at the firm since 2015 and served as the vice chair of investment banking in his most recent role.

"Our clients and colleagues will benefit greatly from their networks, strategic insights and market expertise," said Doug Petno and Filippo Gori, co-heads of global banking in the memo.

The largest bank in the US has also promoted Mike Gaito as global chair for healthcare investment banking and Pankaj Goel, Madhu Namburi, and Drago Rajkovic as global chairs for technology investment banking.

JPMorgan Chase said on Thursday that it has reshuffled its leadership, with a push to strengthen its healthcare and technology investment banking, according to an internal memo that Reuters had seen.

JPMorgan Chase said on Thursday that it has reshuffled its leadership, with a push to strengthen its healthcare and technology investment banking, according to an internal memo that Reuters had seen. The memo said Ben Carpenter and Jeremy Meilman will be global co-heads of healthcare investment banking, while Chris Grose and Greg Mendelson are picked as global co-heads of technology investment banking. The investment bank is one of the bright spots for the major Wall Street firms as more companies strive to raise capital through debt or equity offerings and engage in takeover deals, driven by growing confidence in the US economic outlook. JPMorgan beat estimates for second-quarter profit in July, helped by a resurgence in dealmaking and strong capital markets. Its investment banking revenue surged 46 per cent to $2.5 billion for the quarter ended June, versus a low base a year ago. Carpenter is an industry veteran who rejoined JPMorgan from Citigroup in 2021 as a healthcare mergers and acquisitions (M&A) banker, and Meilman has been with the bank for close to two decades, the memo said. Grose joined JPMorgan's technology and diversified industries team in 2005, while Mendelson has been at the firm since 2015 and served as the vice chair of investment banking in his most recent role. "Our clients and colleagues will benefit greatly from their networks, strategic insights and market expertise," said Doug Petno and Filippo Gori, co-heads of global banking in the memo. The largest bank in the US has also promoted Mike Gaito as global chair for healthcare investment banking and Pankaj Goel, Madhu Namburi, and Drago Rajkovic as global chairs for technology investment banking.

JPMorgan appoints new heads for healthcare and tech investment banking

Oil prices, which eased somewhat on Friday, ended higher for a second consecutive week as factors from a massive cut in US interest rates and declining world inventories took their toll.

Brent futures, which traded 12 cents, or 0.2 per cent, lower at $73.76 a barrel at 0658 GMT on Friday, rose 4.3 per cent this week. U.S. WTI crude futures, which dropped 15 cents, or 0.2 per cent at $71.80 a barrel, rose 4.8 per cent weekly.

The benchmarks have been rebounding after they sank to near three year-lows on Sept. 10 and have advanced in five of the seven sessions since then.

Prices pared some gains on Friday after surging more than 1 per cent on Thursday after the US central bank cut interest rates by a half percentage point Wednesday. Cuts in interest rates generally stimulate economic activity and energy consumption, but some view it as a sign of a soft US labour market.

"Prices had been under pressure in recent months amid concerns demand would weaken, as tight monetary policies stifled economic activity," analysts at ANZ Research said in a note.

"Easing monetary policy helped reinforce expectations that the US economy will avoid a downturn," ANZ said.

A further factor that helped support prices was a decline in US crude inventories, which fell to a one-year low last week.&nbsp;

That kind of oil market deficit, coming at counter-season of about 400,000 barrels per day, should support Brent crude prices in the $70 to $75 per barrel range through the next quarter, analysts with Citi said Thursday, but added prices could plummet in 2025.

The crude prices were supported further by tense developments in the Middle East. Walkie-talkies used by the Lebanese armed group Hezbollah exploded on Wednesday, a day after similar explosions of pagers.

Security sources said Mossad, the Israeli spy agency, was responsible, but Israeli officials had no comment on the attacks.

Weak demand from an ailing Chinese economy weighed on prices, as well. Refinery output in China decelerated for the fifth month running in August. China's industrial output growth also eased to a five-month low last month while retail sales and new home prices weakened further.

Oil prices, which eased somewhat on Friday, ended higher for a second consecutive week as factors from a massive cut in US interest rates and declining world inventories took their toll.

Oil prices, which eased somewhat on Friday, ended higher for a second consecutive week as factors from a massive cut in US interest rates and declining world inventories took their toll. Brent futures, which traded 12 cents, or 0.2 per cent, lower at $73.76 a barrel at 0658 GMT on Friday, rose 4.3 per cent this week. U.S. WTI crude futures, which dropped 15 cents, or 0.2 per cent at $71.80 a barrel, rose 4.8 per cent weekly. The benchmarks have been rebounding after they sank to near three year-lows on Sept. 10 and have advanced in five of the seven sessions since then. Prices pared some gains on Friday after surging more than 1 per cent on Thursday after the US central bank cut interest rates by a half percentage point Wednesday. Cuts in interest rates generally stimulate economic activity and energy consumption, but some view it as a sign of a soft US labour market. "Prices had been under pressure in recent months amid concerns demand would weaken, as tight monetary policies stifled economic activity," analysts at ANZ Research said in a note. "Easing monetary policy helped reinforce expectations that the US economy will avoid a downturn," ANZ said. A further factor that helped support prices was a decline in US crude inventories, which fell to a one-year low last week. That kind of oil market deficit, coming at counter-season of about 400,000 barrels per day, should support Brent crude prices in the $70 to $75 per barrel range through the next quarter, analysts with Citi said Thursday, but added prices could plummet in 2025. The crude prices were supported further by tense developments in the Middle East. Walkie-talkies used by the Lebanese armed group Hezbollah exploded on Wednesday, a day after similar explosions of pagers. Security sources said Mossad, the Israeli spy agency, was responsible, but Israeli officials had no comment on the attacks. Weak demand from an ailing Chinese economy weighed on prices, as well. Refinery output in China decelerated for the fifth month running in August. China's industrial output growth also eased to a five-month low last month while retail sales and new home prices weakened further.

Oil prices close week on a high following US rate cut

Brazil's markets made a brisk gain on Thursday as the central bank decisively voted to raise interest rates - and a statement that many would call hawkish signalled a commitment to getting inflation back on track, according to a report by Bloomberg.

The real trimmed gains after surging as high as 1.2 per cent against the dollar, and swap rates rose after central bank officials raised the benchmark rate by 25 basis points late Wednesday, just hours after the US Federal Reserve delivered its first cut in four years. Though widely expected from economists and investors, the tone of the accompanying statement pushed traders to price a faster pace in the next meetings.

Brazilian real is performing according to higher carry, with the rather hawkish message from the BCB, benefiting from the lower rates in the US,” said Marco Oviedo, senior Latin America strategist at XP Investimentos.

Meanwhile, Brazil's benchmark index had given up some of its earlier session gains, as global appetite for risk continued to rise after the Fed's easing. Raphael Figueredo, CEO and analyst at Eleven Financial, said investors are “recalibrating their positions because they understand that there is more room for Selic rate to rise due to the tougher tone in the statement.” Short-end swap rates soared by over 20 basis points.

Board members noted in the statement that the risks are skewed to the upside of their inflation outlook, and the scenario requires a more restrictive monetary policy. In focusing on the strength of the Brazilian economy and unanchored inflation expectations, analysts said markets should price in 50 basis point raises at next meetings.

Higher rates at home should lift the currency, as a bigger rate gap with the US makes it more appealing to carry traders.

Annual inflation eased from the top of the tolerance range to 4.24 per cent in August, said the National Statistics Institute — a retreat that did little to ease the squeeze on central bankers to raise rates.

The hawkish rate hike by Brazil puts Latin America's biggest economy at odds with virtually every other central bank in the region, which are lowering rates to shore up fragile economies. Chile, Peru, Mexico, and Colombia have all cut their borrowing costs in recent weeks.

“The BCB is likely to be the hawkish central bank over the next three months in the region, while valuations are attractive and positioning light, whereas the MXN remains vulnerable to domestic policy risks, especially if risks of constitutional reforms resurface over the coming weeks, but also to US election risks,” Alexandre de Azara, economist at UBS BB Investment Bank, wrote in a note.

Brazil's markets made a brisk gain on Thursday as the central bank decisively voted to raise interest rates - and a statement that many would call hawkish signalled a commitment to getting inflation back on track, according to a report by Bloomberg.

Brazil's markets made a brisk gain on Thursday as the central bank decisively voted to raise interest rates - and a statement that many would call hawkish signalled a commitment to getting inflation back on track, according to a report by Bloomberg. The real trimmed gains after surging as high as 1.2 per cent against the dollar, and swap rates rose after central bank officials raised the benchmark rate by 25 basis points late Wednesday, just hours after the US Federal Reserve delivered its first cut in four years. Though widely expected from economists and investors, the tone of the accompanying statement pushed traders to price a faster pace in the next meetings. Brazilian real is performing according to higher carry, with the rather hawkish message from the BCB, benefiting from the lower rates in the US,” said Marco Oviedo, senior Latin America strategist at XP Investimentos. Meanwhile, Brazil's benchmark index had given up some of its earlier session gains, as global appetite for risk continued to rise after the Fed's easing. Raphael Figueredo, CEO and analyst at Eleven Financial, said investors are “recalibrating their positions because they understand that there is more room for Selic rate to rise due to the tougher tone in the statement.” Short-end swap rates soared by over 20 basis points. Board members noted in the statement that the risks are skewed to the upside of their inflation outlook, and the scenario requires a more restrictive monetary policy. In focusing on the strength of the Brazilian economy and unanchored inflation expectations, analysts said markets should price in 50 basis point raises at next meetings. Higher rates at home should lift the currency, as a bigger rate gap with the US makes it more appealing to carry traders. Annual inflation eased from the top of the tolerance range to 4.24 per cent in August, said the National Statistics Institute — a retreat that did little to ease the squeeze on central bankers to raise rates. The hawkish rate hike by Brazil puts Latin America's biggest economy at odds with virtually every other central bank in the region, which are lowering rates to shore up fragile economies. Chile, Peru, Mexico, and Colombia have all cut their borrowing costs in recent weeks. “The BCB is likely to be the hawkish central bank over the next three months in the region, while valuations are attractive and positioning light, whereas the MXN remains vulnerable to domestic policy risks, especially if risks of constitutional reforms resurface over the coming weeks, but also to US election risks,” Alexandre de Azara, economist at UBS BB Investment Bank, wrote in a note.

Brazil's Real surges following central bank's aggressive rate hike

As the Federal Reserve navigates a complicated economic landscape, it has embarked on a significant recalibration of its monetary policy. This shift, articulated by Fed Chair Jerome Powell, is designed to address ongoing challenges such as inflation and economic growth. In a recently concluded Federal Open Market Committee (FOMC) meeting, Powell introduced the term "recalibration," signaling a careful approach to managing interest rates and monetary supply as detailed in a report by CNBC. <o:p></o:p>

The Fed's recalibration comes at a time when the US consumer price index (CPI) have slowed to 2.5 per cent in August from a year ago, down from 2.9 per cent in July and the lowest annual figure since February 2021, the Labor Department's Bureau of Labor Statistics stated on September 11.&nbsp;The central bank's objective is to maintain price stability while fostering sustainable economic growth, which necessitates a careful balance in its policy decisions.<o:p></o:p>

Powell emphasized that the Fed is not solely focused on raising interest rates but is instead adopting a more flexible stance. "We are looking at a range of factors," he stated, highlighting the importance of data-driven decision-making in setting future policy directions. This approach reflects an understanding that aggressive rate hikes could hamper economic recovery and negatively impact employment rates.<o:p></o:p>

The implications of this recalibration are significant for various sectors of the US economy. For consumers, a more measured approach to interest rate adjustments could mean more stable mortgage rates and borrowing costs. Businesses may also benefit from improved access to credit, allowing for continued investment and expansion.<o:p></o:p>

Furthermore, the Fed's strategy aims to reassure financial markets that it is committed to controlling inflation without derailing economic growth. By communicating its intentions clearly, the central bank hopes to foster confidence among investors and consumers alike. This transparency is crucial in an environment where market volatility can be worsened by uncertainty regarding monetary policy.<o:p></o:p>

In addition to addressing inflation, Powell noted that the Fed is also monitoring global economic conditions closely. Factors such as geopolitical tensions and supply chain disruptions can have far-reaching effects on domestic economic stability. As such, the recalibration of policy will take into account not only local data but also international developments that could impact the US economy.<o:p></o:p>

Looking ahead, analysts suggest that the Fed's recalibration may lead to a prolonged period of steady interest rates rather than aggressive hikes or cuts. This could create a more predictable environment for both consumers and businesses, allowing them to plan for the future with greater certainty.

Hence, as the Federal Reserve continues its efforts to navigate these complex challenges, the concept of recalibration will likely remain at the forefront of discussions surrounding monetary policy. By prioritising flexibility and data-driven decision-making, Powell and his team aim to strike a balance that supports economic growth while keeping inflation in check.<o:p></o:p>

<o:p>&nbsp;</o:p>

As the Federal Reserve navigates a complicated economic landscape, it has embarked on a significant recalibration of its monetary policy. This shift, articulated by Fed Chair Jerome Powell, is designed to address ongoing challenges such as inflation and economic growth.

As the Federal Reserve navigates a complicated economic landscape, it has embarked on a significant recalibration of its monetary policy. This shift, articulated by Fed Chair Jerome Powell, is designed to address ongoing challenges such as inflation and economic growth. In a recently concluded Federal Open Market Committee (FOMC) meeting, Powell introduced the term "recalibration," signaling a careful approach to managing interest rates and monetary supply as detailed in a report by CNBC. The Fed's recalibration comes at a time when the US consumer price index (CPI) have slowed to 2.5 per cent in August from a year ago, down from 2.9 per cent in July and the lowest annual figure since February 2021, the Labor Department's Bureau of Labor Statistics stated on September 11. The central bank's objective is to maintain price stability while fostering sustainable economic growth, which necessitates a careful balance in its policy decisions. Powell emphasized that the Fed is not solely focused on raising interest rates but is instead adopting a more flexible stance. "We are looking at a range of factors," he stated, highlighting the importance of data-driven decision-making in setting future policy directions. This approach reflects an understanding that aggressive rate hikes could hamper economic recovery and negatively impact employment rates. The implications of this recalibration are significant for various sectors of the US economy. For consumers, a more measured approach to interest rate adjustments could mean more stable mortgage rates and borrowing costs. Businesses may also benefit from improved access to credit, allowing for continued investment and expansion. Furthermore, the Fed's strategy aims to reassure financial markets that it is committed to controlling inflation without derailing economic growth. By communicating its intentions clearly, the central bank hopes to foster confidence among investors and consumers alike. This transparency is crucial in an environment where market volatility can be worsened by uncertainty regarding monetary policy. In addition to addressing inflation, Powell noted that the Fed is also monitoring global economic conditions closely. Factors such as geopolitical tensions and supply chain disruptions can have far-reaching effects on domestic economic stability. As such, the recalibration of policy will take into account not only local data but also international developments that could impact the US economy. Looking ahead, analysts suggest that the Fed's recalibration may lead to a prolonged period of steady interest rates rather than aggressive hikes or cuts. This could create a more predictable environment for both consumers and businesses, allowing them to plan for the future with greater certainty. Hence, as the Federal Reserve continues its efforts to navigate these complex challenges, the concept of recalibration will likely remain at the forefront of discussions surrounding monetary policy. By prioritising flexibility and data-driven decision-making, Powell and his team aim to strike a balance that supports economic growth while keeping inflation in check.

The Fed's new strategy: Understanding the "Recalibration" of monetary policy

Tata Consultancy Services (TCS) has once again solidified its position at the pinnacle of the corporate world by being named the most valuable brand in a recent report by "Kantar BrandZ Most Valuable Indian Brands". This marks the third consecutive year that TCS has achieved this prestigious title, underlining its unwavering commitment to excellence and innovation in the information technology sector.<o:p></o:p>

According to the latest Brand Finance report, TCS's brand value surged to an impressive USD 49.7 billion, reflecting a remarkable increase of 16 per cent from the previous year. This growth not only highlights TCS's robust market presence but also its strategic initiatives aimed at enhancing customer engagement and driving technological advancements.

Further, India’s top 75 most valuable brands now have a combined value of $450.5 billion, marking a 19 per cent increase from last year. Brands across diverse business sectors fuelled this growth, with 54 brands boosting their brand value over the past year. This growth outpaces most other rankings globally and closely mirrors the 20 per cent increase seen in the global top 100 brands.

In addition to TCS, several other Indian brands have made significant strides in the Brand Finance rankings, with 17 brands, contributing 28 per cent of the ranking's overall brand value. HFDC Bank retains its position as India’s second most valuable brand. State Bank of India, ICICI Bank, and LIC also feature in the Top 10. 

Zomato becomes the fastest riser this year<o:p></o:p>

Zomato is this year’s fastest riser with 100 per cent growth in brand value year-on-year due to relentless innovation and expansion into quick commerce. It has also boosted efficiency and elevated its customer experience over the last year. Whereas travel platform MakeMyTrip made its debut in the list of top Indian brands, thanks to making a marked improvement in customer experience. The travel industry has boomed after the COVID-19 pandemic. Thus, resulting in new customers using digital services for a seamless travel experience. This is where MakeMyTrip has excelled.<o:p></o:p>

The automotive sector has also seen impressive results, led by Maruti Suzuki, Bajaj Auto, Mahindra, TVS, and Hero . Mahindra's SUVs now make up 53 per cent of India's passenger car market (June 2024). The success of models like XUV700, Scorpio N, and Thar, which continue to see high demand and long waiting periods, has solidified Mahindra's leadership in mid and premium SUVs. This latest report hence is all set to boost the confidence of Indian corporates and put the spotlight on the potential of growth on offer in the rapidly growing economy.

Tata Consultancy Services (TCS) has once again solidified its position at the pinnacle of the corporate world by being named the most valuable brand in a recent report by "Kantar BrandZ Most Valuable Indian Brands".

Tata Consultancy Services (TCS) has once again solidified its position at the pinnacle of the corporate world by being named the most valuable brand in a recent report by "Kantar BrandZ Most Valuable Indian Brands". This marks the third consecutive year that TCS has achieved this prestigious title, underlining its unwavering commitment to excellence and innovation in the information technology sector. According to the latest Brand Finance report, TCS's brand value surged to an impressive USD 49.7 billion, reflecting a remarkable increase of 16 per cent from the previous year. This growth not only highlights TCS's robust market presence but also its strategic initiatives aimed at enhancing customer engagement and driving technological advancements. Further, India’s top 75 most valuable brands now have a combined value of $450.5 billion, marking a 19 per cent increase from last year. Brands across diverse business sectors fuelled this growth, with 54 brands boosting their brand value over the past year. This growth outpaces most other rankings globally and closely mirrors the 20 per cent increase seen in the global top 100 brands. In addition to TCS, several other Indian brands have made significant strides in the Brand Finance rankings, with 17 brands, contributing 28 per cent of the ranking's overall brand value. HFDC Bank retains its position as India’s second most valuable brand. State Bank of India, ICICI Bank, and LIC also feature in the Top 10. Zomato becomes the fastest riser this year Zomato is this year’s fastest riser with 100 per cent growth in brand value year-on-year due to relentless innovation and expansion into quick commerce. It has also boosted efficiency and elevated its customer experience over the last year. Whereas travel platform MakeMyTrip made its debut in the list of top Indian brands, thanks to making a marked improvement in customer experience. The travel industry has boomed after the COVID-19 pandemic. Thus, resulting in new customers using digital services for a seamless travel experience. This is where MakeMyTrip has excelled. The automotive sector has also seen impressive results, led by Maruti Suzuki, Bajaj Auto, Mahindra, TVS, and Hero . Mahindra's SUVs now make up 53 per cent of India's passenger car market (June 2024). The success of models like XUV700, Scorpio N, and Thar, which continue to see high demand and long waiting periods, has solidified Mahindra's leadership in mid and premium SUVs. This latest report hence is all set to boost the confidence of Indian corporates and put the spotlight on the potential of growth on offer in the rapidly growing economy.

TCS achieves hat-trick as most valuable brand, Zomato and MakeMyTrip also shine

With the announcement of NPS Vatsalya as part of the National Pension System of India, the spotlight has been shifted to the growing need to secure children's financial future.

Indeed, NPS Vatsalya has emerged as one of the best schemes to invest for children's better future and has a fantastic projection of an annual contribution of&nbsp;Rs 10,000 for 18 years at an expected rate of return (RoR) of 10 per cent creating a corpus of around&nbsp;Rs 2.75 crore till the time the child turns 60, which makes it very lucrative for the middle class.&nbsp;

NPS Vatsalya scheme is eligible for all minors and requires a minimum initial contribution of&nbsp;Rs 1,000 to open an account and a minimum annual contribution of&nbsp;Rs 1,000 in the years ahead which makes this scheme manageable for citizens from all walks of life.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/nps-vatsalya-all-you-need-to-know-about-the-pension-scheme-for-children-760134">NPS Vatsalya: All you need to know about the pension scheme for children</a>

“Under this scheme, parents can open an account right from the child’s birth. The corpus accumulated will be illiquid till the age of 60," said Lt Col (Retd) Rochak Bakshi, Founder and CEO of True North Financial Services, while speaking to WION.

However, there are other schemes also to invest for a financially secure future for children.

<h2>5 Child Investment Plans With Good Returns&nbsp;</h2>

<h3>1) Sukanya Samriddhi Yojana&nbsp;</h3>

This is the saving scheme launched by the Indian government with the intention to help parents save money for the education and marriage of their daughters. The scheme has an interest rate of 7.6 per cent. Its minimum deposit limit every year is Rs 250 and the maximum is Rs 1.5 lakh.&nbsp;

<h3>2) Child ULIP Plans</h3>

Child Unit Linked Insurance Plans (ULIPs) are bought especially for children. These plans have five-year lock-in periods and are generally purchased for a time duration of 20 to 30 years. According to the fund selected, the money is allocated in debt and equity securities. By the time, the child reaches the age of 18, partial withdrawals are permitted. The paid premiums fall under the 80C deductions.&nbsp;

<h3>3) Child Mutual Fund SIP</h3>

A systematic investment plan (SIP) for children is a monthly mutual fund investment for creating a corpus for their future requirements. The child's parents or guardians can start child SIPs with a minimum of Rs 500 per month for a period of 10 to 15 years.&nbsp;

Speaking about the benefits of SIPs, Bakshi said, "I feel that it will be better to invest for the child in pooled investments like mutual funds and then hand over the assets to the child on reaching the majority. These mutual funds can be aggressive and thus would have a better returns profile. At the same time, these will encourage active participation of the child in learning about Personal Finance issues."

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/money-wise-india-introduces-unified-pension-scheme-will-it-be-more-beneficial-than-nps-ops-754392">Money-Wise: India introduces Unified Pension Scheme. Will it be more beneficial than NPS &amp; OPS?</a>

<h3>4) Child Endowment Plans</h3>

Child Endowment Plans provide guaranteed returns as well as life insurance coverage. Generally, they have four payouts in which 25 per cent of the sum assured plus bonuses are transferred to the account of children after they reach the age of 18. However, the returns in such schemes are comparatively low.

<h3>5) Moneyback Insurance Plans</h3>

Moneyback insurance plans for children are similar to endowment plans, however, they provide regular returns at periodic intervals. 
&nbsp;

With the announcement of NPS Vatsalya as part of the National Pension System of India, the spotlight has been shifted to the growing need to secure children's financial future.

With the announcement of NPS Vatsalya as part of the National Pension System of India, the spotlight has been shifted to the growing need to secure children's financial future. Indeed, NPS Vatsalya has emerged as one of the best schemes to invest for children's better future and has a fantastic projection of an annual contribution of Rs 10,000 for 18 years at an expected rate of return (RoR) of 10 per cent creating a corpus of around Rs 2.75 crore till the time the child turns 60, which makes it very lucrative for the middle class. NPS Vatsalya scheme is eligible for all minors and requires a minimum initial contribution of Rs 1,000 to open an account and a minimum annual contribution of Rs 1,000 in the years ahead which makes this scheme manageable for citizens from all walks of life. Also Read: NPS Vatsalya: All you need to know about the pension scheme for children “Under this scheme, parents can open an account right from the child’s birth. The corpus accumulated will be illiquid till the age of 60," said Lt Col (Retd) Rochak Bakshi, Founder and CEO of True North Financial Services, while speaking to WION. However, there are other schemes also to invest for a financially secure future for children. 5 Child Investment Plans With Good Returns 1) Sukanya Samriddhi Yojana This is the saving scheme launched by the Indian government with the intention to help parents save money for the education and marriage of their daughters. The scheme has an interest rate of 7.6 per cent. Its minimum deposit limit every year is Rs 250 and the maximum is Rs 1.5 lakh. 2) Child ULIP Plans Child Unit Linked Insurance Plans (ULIPs) are bought especially for children. These plans have five-year lock-in periods and are generally purchased for a time duration of 20 to 30 years. According to the fund selected, the money is allocated in debt and equity securities. By the time, the child reaches the age of 18, partial withdrawals are permitted. The paid premiums fall under the 80C deductions. 3) Child Mutual Fund SIP A systematic investment plan (SIP) for children is a monthly mutual fund investment for creating a corpus for their future requirements. The child's parents or guardians can start child SIPs with a minimum of Rs 500 per month for a period of 10 to 15 years. Speaking about the benefits of SIPs, Bakshi said, "I feel that it will be better to invest for the child in pooled investments like mutual funds and then hand over the assets to the child on reaching the majority. These mutual funds can be aggressive and thus would have a better returns profile. At the same time, these will encourage active participation of the child in learning about Personal Finance issues." Also Read: Money-Wise: India introduces Unified Pension Scheme. Will it be more beneficial than NPS & OPS? 4) Child Endowment Plans Child Endowment Plans provide guaranteed returns as well as life insurance coverage. Generally, they have four payouts in which 25 per cent of the sum assured plus bonuses are transferred to the account of children after they reach the age of 18. However, the returns in such schemes are comparatively low. 5) Moneyback Insurance Plans Moneyback insurance plans for children are similar to endowment plans, however, they provide regular returns at periodic intervals.

Money-Wise: Not just NPS Vatsalya, here are five other child investment plans in India

India is poised to achieve the status of the third-largest economy by the fiscal year 2030-31, propelled by a robust projected annual growth rate of 6.7 per cent, as outlined in a recent report by credit rating agency S&amp;P Global titled “India Forward Emerging Perspectives”. The report not only highlights this optimistic projection but also suggests essential measures to sustain economic growth as detailed in a report by Press Trust of India. 

Robust growth projections<o:p></o:p>

S&amp;P Global's analysis indicates that maintaining the momentum of economic growth will require continued reforms aimed at enhancing business transactions and logistics. The report underlines the importance of boosting private sector investment while simultaneously reducing dependence on public capital. Furthermore, it anticipates that the Indian equity market will remain dynamic and competitive, bolstered by strong growth prospects and improved regulatory frameworks. Notably, foreign inflows into Indian government bonds have surged since the country joined major emerging market indices, a trend expected to continue.

Key measures for economic development<o:p></o:p>

To fully leverage its potential, S&amp;P Global recommends that India evolves its infrastructure and geopolitical strategies, particularly concerning its extensive coastline. This development is crucial for maximising trade benefits, as approximately 90 per cent of India's trade is maritime. The agency emphasises the need for robust port infrastructure to accommodate rising exports and bulk commodities imports.

Additionally, the report addresses India's increasing domestic energy demands. It advocates for the development of sustainable technologies, including renewable energy sources and low-emission fuels, to balance energy security with ongoing energy transition plans. The agricultural sector is also highlighted as needing advanced technologies and new policies to enhance infrastructure and productivity. Addressing critical issues such as irrigation, storage, and supply distribution is vital for ensuring food security and economic stability.

Sustainable energy and agriculture innovations<o:p></o:p>

S&amp;P Global further stated that leveraging artificial intelligence (AI) will significantly boost India's economic growth. The integration of AI presents opportunities for public-private partnerships that can replicate the successes achieved in India's digital infrastructure.

India's GDP has shown impressive growth, expanding by 8.2 per cent during the financial year 2023-24, thus maintaining its position as the fastest-growing major economy globally. Historical data reveals that the economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. This consistent upward trajectory has prompted numerous global rating agencies and multilateral organisations to revise their growth forecasts for India positively.

In July, the International Monetary Fund (IMF) revised India's growth projections for 2024 from 6.8 per cent to 7 per cent, reinforcing India's reputation as the fastest-growing economy among emerging markets and developing economies. The IMF attributes this robust growth to strong domestic demand and a rising working-age population.

Hence, as India gears up for its ambitious economic future, the insights provided by S&amp;P Global serve as a roadmap for policymakers and investors alike. By focusing on sustainable practices and infrastructural development, India can solidify its position as a global economic powerhouse in the coming years.

India is poised to achieve the status of the third-largest economy by the fiscal year 2030-31, propelled by a robust projected annual growth rate of 6.7 per cent, as outlined in a recent report by credit rating agency S&P Global titled “India Forward Emerging Perspectives”.

India is poised to achieve the status of the third-largest economy by the fiscal year 2030-31, propelled by a robust projected annual growth rate of 6.7 per cent, as outlined in a recent report by credit rating agency S&P Global titled “India Forward Emerging Perspectives”. The report not only highlights this optimistic projection but also suggests essential measures to sustain economic growth as detailed in a report by Press Trust of India. Robust growth projections S&P Global's analysis indicates that maintaining the momentum of economic growth will require continued reforms aimed at enhancing business transactions and logistics. The report underlines the importance of boosting private sector investment while simultaneously reducing dependence on public capital. Furthermore, it anticipates that the Indian equity market will remain dynamic and competitive, bolstered by strong growth prospects and improved regulatory frameworks. Notably, foreign inflows into Indian government bonds have surged since the country joined major emerging market indices, a trend expected to continue. Key measures for economic development To fully leverage its potential, S&P Global recommends that India evolves its infrastructure and geopolitical strategies, particularly concerning its extensive coastline. This development is crucial for maximising trade benefits, as approximately 90 per cent of India's trade is maritime. The agency emphasises the need for robust port infrastructure to accommodate rising exports and bulk commodities imports. Additionally, the report addresses India's increasing domestic energy demands. It advocates for the development of sustainable technologies, including renewable energy sources and low-emission fuels, to balance energy security with ongoing energy transition plans. The agricultural sector is also highlighted as needing advanced technologies and new policies to enhance infrastructure and productivity. Addressing critical issues such as irrigation, storage, and supply distribution is vital for ensuring food security and economic stability. Sustainable energy and agriculture innovations S&P Global further stated that leveraging artificial intelligence (AI) will significantly boost India's economic growth. The integration of AI presents opportunities for public-private partnerships that can replicate the successes achieved in India's digital infrastructure. India's GDP has shown impressive growth, expanding by 8.2 per cent during the financial year 2023-24, thus maintaining its position as the fastest-growing major economy globally. Historical data reveals that the economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. This consistent upward trajectory has prompted numerous global rating agencies and multilateral organisations to revise their growth forecasts for India positively. In July, the International Monetary Fund (IMF) revised India's growth projections for 2024 from 6.8 per cent to 7 per cent, reinforcing India's reputation as the fastest-growing economy among emerging markets and developing economies. The IMF attributes this robust growth to strong domestic demand and a rising working-age population. Hence, as India gears up for its ambitious economic future, the insights provided by S&P Global serve as a roadmap for policymakers and investors alike. By focusing on sustainable practices and infrastructural development, India can solidify its position as a global economic powerhouse in the coming years.

India on track to be third-largest economy by 2030-31

The flagship firm of Anil Ambani, Reliance Infrastructure Ltd is hoping to raise Rs 1,100 crore of equity infusion from the promoters and another Rs 1,910 crore from two Mumbai-based investment firms. As reported in a company filing, the sum is as per the agreement reached between the investment firms and Reliance.

The board of the company on September 19 approved a fundraise plan of Rs 6,000 crore, out of which it would raise Rs 3,014 crore through preferential allotment of shares and Rs 3,000 crore share issue to institutional buyers as detailed in a report by Press Trust of India.

Brief history of Reliance Infrastructure

Reliance Infrastructure Limited, a constituent of the Reliance Group was incorporated in 1929. The Company is engaged in the business of providing Engineering and Construction (E&amp;C) services for power, roads, metro rail, and other infrastructure sectors. The Company is also engaged in the implementation, operation, and maintenance of several projects in the defense sector and infrastructural areas through its special-purpose vehicles. It has executed the state-of-the-art Mumbai Metro Line One project on a build, own, operate, and transfer basis as per its official website.

Further, the first phase will result in a preferential placement worth Rs 3,014 crore in terms of which 12.56 crore equity shares or convertible warrants will be issued at an issue price of Rs 240 per share, as stated in the postal ballot by the company wherein it sought nod from shareholders for issue of shares.

Of this, promoters of Reliance Infrastructure will invest Rs 1,104 crore by subscribing through promoter company Risee Infinity Private Limited. Risee will subscribe for 4.60 crore shares. The two other investors participating in the preferential issue are Mumbai-based Fortune Financial &amp; Equities Services and Florintree Innovations LLP. Florintree is owned by former Blackstone executive Mathew Cyriac, while Fortune Financial is owned by Nimish Shah.

Reliance Infra promoters hold 21.34 per cent share. Fortune Financial &amp; Equities Services are expected to invest Rs 1,058 crore through subscription for 4.41 equity shares through the preferential allotment route. Florintree Innovations will invest Rs 852 crore. Shares of 3.55 crore will be allotted.

The preferential issues will increase the net worth of Reliance Infra from Rs 9,000 crore to Rs 12,000 crore, with near zero debt. The company is looking for shareholders' nod by postal ballot. The e-voting will begin on 20 September and will close on 19 October.

The result of the postal ballot will be declared on October 21. The Preferential Issue proceeds will be utilized for the expansion of business operations directly and/or by way of investment in subsidiaries and joint ventures, including meeting the long-term working capital requirements and for general corporate purposes.

The flagship firm of Anil Ambani, Reliance Infrastructure Ltd is hoping to raise Rs 1,100 crore of equity infusion from the promoters and another Rs 1,910 crore from two Mumbai-based investment firms.

The flagship firm of Anil Ambani, Reliance Infrastructure Ltd is hoping to raise Rs 1,100 crore of equity infusion from the promoters and another Rs 1,910 crore from two Mumbai-based investment firms. As reported in a company filing, the sum is as per the agreement reached between the investment firms and Reliance. The board of the company on September 19 approved a fundraise plan of Rs 6,000 crore, out of which it would raise Rs 3,014 crore through preferential allotment of shares and Rs 3,000 crore share issue to institutional buyers as detailed in a report by Press Trust of India. Brief history of Reliance Infrastructure Reliance Infrastructure Limited, a constituent of the Reliance Group was incorporated in 1929. The Company is engaged in the business of providing Engineering and Construction (E&C) services for power, roads, metro rail, and other infrastructure sectors. The Company is also engaged in the implementation, operation, and maintenance of several projects in the defense sector and infrastructural areas through its special-purpose vehicles. It has executed the state-of-the-art Mumbai Metro Line One project on a build, own, operate, and transfer basis as per its official website. Further, the first phase will result in a preferential placement worth Rs 3,014 crore in terms of which 12.56 crore equity shares or convertible warrants will be issued at an issue price of Rs 240 per share, as stated in the postal ballot by the company wherein it sought nod from shareholders for issue of shares. Of this, promoters of Reliance Infrastructure will invest Rs 1,104 crore by subscribing through promoter company Risee Infinity Private Limited. Risee will subscribe for 4.60 crore shares. The two other investors participating in the preferential issue are Mumbai-based Fortune Financial & Equities Services and Florintree Innovations LLP. Florintree is owned by former Blackstone executive Mathew Cyriac, while Fortune Financial is owned by Nimish Shah. Reliance Infra promoters hold 21.34 per cent share. Fortune Financial & Equities Services are expected to invest Rs 1,058 crore through subscription for 4.41 equity shares through the preferential allotment route. Florintree Innovations will invest Rs 852 crore. Shares of 3.55 crore will be allotted. The preferential issues will increase the net worth of Reliance Infra from Rs 9,000 crore to Rs 12,000 crore, with near zero debt. The company is looking for shareholders' nod by postal ballot. The e-voting will begin on 20 September and will close on 19 October. The result of the postal ballot will be declared on October 21. The Preferential Issue proceeds will be utilized for the expansion of business operations directly and/or by way of investment in subsidiaries and joint ventures, including meeting the long-term working capital requirements and for general corporate purposes.

Reliance Infra raises Rs 1,910 crore; promoters to invest Rs 1,100 crore

The Bank of England (BoE) has decided to maintain its key interest rate at 5 per cent, following a recent trend of cautious monetary policy adjustments. The decision, made by the Monetary Policy Committee (MPC) with an 8-1 vote, comes as inflationary pressures appear to be easing. Only external member Swati Dhingra voted for a reduction, suggesting a more gradual approach to interest rate cuts compared to recent moves by the US Federal Reserve as detailed in a report by Reuters.

The BoE's stance reflects a careful balancing act in response to evolving economic conditions. Governor Andrew Bailey noted that while inflation is expected to rise slightly to approximately 2.5 per cent by the end of the year, it remains crucial to avoid aggressive rate cuts that could destabilise the economy. "It's vital that inflation stays low, so we need to be careful not to cut too fast or by too much," Bailey stated.

Market analysts had anticipated this decision, with many predicting a steady rate after last month’s narrow vote to lower borrowing costs from a 16-year high. Economists polled by Reuters had forecast a 7-2 vote in favour of maintaining rates, aligning with the BoE's cautious outlook.

In contrast to the BoE's approach, the US Federal Reserve recently enacted a more significant cut of 0.5 percentage points, signalling confidence in cooling inflation pressures in the US economy. This divergence in monetary policy highlights differing economic conditions and expectations between the UK and the US.

Quantitative tightening continues

In addition to holding interest rates steady, the BoE has extended its quantitative tightening (QT) programme for another year, maintaining its pace of £100 billion in bond reductions. The MPC voted unanimously to continue this strategy starting October 2024, which involves allowing British government bonds (gilts) purchased during previous economic stimulus efforts to mature without reinvestment.

This QT process aims to mitigate the upward pressure on the BoE's bond holdings and provide flexibility for future monetary policy adjustments. However, some lawmakers and financial analysts have raised concerns about potential losses incurred by the BoE as it sells gilts purchased at higher prices than their current market value.

Despite these concerns, the BoE remains committed to its QT strategy, asserting that it is essential for maintaining a stable monetary environment. The central bank emphasised that it is crucial for QT to proceed smoothly and without significant disruption to overall monetary policy.

Way ahead for the Bank of England<o:p></o:p>

Investors are closely monitoring the BoE's decisions as they anticipate potential interest rate cuts over the next year. Current market expectations suggest around five quarter-point reductions by June 2025, aligning with forecasts for other central banks like the European Central Bank (ECB). However, analysts believe that persistent inflationary pressures may lead the BoE to adopt a more measured approach compared to its counterparts. 

As Britain navigates these economic challenges, the BoE's commitment to maintaining stability while cautiously adjusting its monetary policy will be pivotal in shaping the nation's economy in the coming months.

The Bank of England (BoE) has decided to maintain its key interest rate at 5 per cent, following a recent trend of cautious monetary policy adjustments. The decision, made by the Monetary Policy Committee (MPC) with an 8-1 vote, comes as inflationary pressures appear to be easing.

The Bank of England (BoE) has decided to maintain its key interest rate at 5 per cent, following a recent trend of cautious monetary policy adjustments. The decision, made by the Monetary Policy Committee (MPC) with an 8-1 vote, comes as inflationary pressures appear to be easing. Only external member Swati Dhingra voted for a reduction, suggesting a more gradual approach to interest rate cuts compared to recent moves by the US Federal Reserve as detailed in a report by Reuters. The BoE's stance reflects a careful balancing act in response to evolving economic conditions. Governor Andrew Bailey noted that while inflation is expected to rise slightly to approximately 2.5 per cent by the end of the year, it remains crucial to avoid aggressive rate cuts that could destabilise the economy. "It's vital that inflation stays low, so we need to be careful not to cut too fast or by too much," Bailey stated. Market analysts had anticipated this decision, with many predicting a steady rate after last month’s narrow vote to lower borrowing costs from a 16-year high. Economists polled by Reuters had forecast a 7-2 vote in favour of maintaining rates, aligning with the BoE's cautious outlook. In contrast to the BoE's approach, the US Federal Reserve recently enacted a more significant cut of 0.5 percentage points, signalling confidence in cooling inflation pressures in the US economy. This divergence in monetary policy highlights differing economic conditions and expectations between the UK and the US. Quantitative tightening continues In addition to holding interest rates steady, the BoE has extended its quantitative tightening (QT) programme for another year, maintaining its pace of £100 billion in bond reductions. The MPC voted unanimously to continue this strategy starting October 2024, which involves allowing British government bonds (gilts) purchased during previous economic stimulus efforts to mature without reinvestment. This QT process aims to mitigate the upward pressure on the BoE's bond holdings and provide flexibility for future monetary policy adjustments. However, some lawmakers and financial analysts have raised concerns about potential losses incurred by the BoE as it sells gilts purchased at higher prices than their current market value. Despite these concerns, the BoE remains committed to its QT strategy, asserting that it is essential for maintaining a stable monetary environment. The central bank emphasised that it is crucial for QT to proceed smoothly and without significant disruption to overall monetary policy. Way ahead for the Bank of England Investors are closely monitoring the BoE's decisions as they anticipate potential interest rate cuts over the next year. Current market expectations suggest around five quarter-point reductions by June 2025, aligning with forecasts for other central banks like the European Central Bank (ECB). However, analysts believe that persistent inflationary pressures may lead the BoE to adopt a more measured approach compared to its counterparts. As Britain navigates these economic challenges, the BoE's commitment to maintaining stability while cautiously adjusting its monetary policy will be pivotal in shaping the nation's economy in the coming months.

Bank of England holds interest rates steady at 5% amid ongoing bond reduction strategy

The Federal Reserve projects interest rates cut by another half point before the end of 2024, offering two policy meetings to make the move. The spotlight now shifts towards the future course of action by the US Fed after the most recent 50 basis point reduction in the September 18 Federal Open Market Committee meeting according to a report by CNBC. 

“There’s nothing in the SEP (Summary of Economic Projections) that suggests the committee is in a rush to get this done,” Fed Chairman Jerome Powell said in a news conference. “This process evolves over time.”

What will be the trajectory of the federal funds rate going ahead?

The 'dot plot' put out by the Fed showed that 19 of the FOMC's members, both voting and non-voting members, anticipate that the benchmark federal funds rate will top 4.9 per cent by year-end. The target band goes as high as 4.25 per cent to 4.5 per cent. The remaining meetings for this year are November 6-7 and December 17-18.

Looking ahead to 2025, it predicts interest rates will settle at 3.4 per cent, meaning yet another full-point cut. Then, by 2026, the rate is expected to decline even further to 2.9 per cent, which would be another half-point cut.

Brief history of the Federal Reserve and its role

The Federal Reserve System or the Fed is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system to alleviate financial crises. The goal of the Federal Reserve is to balance inflation and growth in the US.

Further, over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System.

What did the Fed do on Wednesday?<o:p></o:p>

On Wednesday, it lowered its first rate cut since the onset of the Covid19 pandemic as it trimmed the federal funds rate by 50 basis points, to a range of 4.75 percent to 5 percent.

Moreover, Fed officials adjusted their forecast of this year's unemployment rate to 4.4 per cent, against an earlier estimate of 4 per cent in June. This reflects continued economic hurdles and evidence of a conservative mindset regarding the dynamics of recovery after the pandemic.

The cut in interest rates is likely to make a huge difference both for consumers and businesses alike. Lower borrowing costs could have an immediate positive effect on spending and investment, thus boosting growth into 2025. Policymakers are also concerned about increased inflation and unemployment levels as they move forward with these steps.

The Fed's experience with this new trend of change in strategy i.e., reduction of rates, after four years, will continue to shape according to the changing economic conditions. Therefore, the focus of market participants shifts towards the upcoming policy meetings of the Federal Reserve.

The Federal Reserve projects interest rates cut by another half point before the end of 2024, offering two policy meetings to make the move. The spotlight now shifts towards the future course of action by the US Fed after the most recent 50 basis point reduction in the September 18 Federal Open Market Committee meeting according to a report by CNBC.

The Federal Reserve projects interest rates cut by another half point before the end of 2024, offering two policy meetings to make the move. The spotlight now shifts towards the future course of action by the US Fed after the most recent 50 basis point reduction in the September 18 Federal Open Market Committee meeting according to a report by CNBC. “There’s nothing in the SEP (Summary of Economic Projections) that suggests the committee is in a rush to get this done,” Fed Chairman Jerome Powell said in a news conference. “This process evolves over time.” What will be the trajectory of the federal funds rate going ahead? The 'dot plot' put out by the Fed showed that 19 of the FOMC's members, both voting and non-voting members, anticipate that the benchmark federal funds rate will top 4.9 per cent by year-end. The target band goes as high as 4.25 per cent to 4.5 per cent. The remaining meetings for this year are November 6-7 and December 17-18. Looking ahead to 2025, it predicts interest rates will settle at 3.4 per cent, meaning yet another full-point cut. Then, by 2026, the rate is expected to decline even further to 2.9 per cent, which would be another half-point cut. Brief history of the Federal Reserve and its role The Federal Reserve System or the Fed is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system to alleviate financial crises. The goal of the Federal Reserve is to balance inflation and growth in the US. Further, over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System. What did the Fed do on Wednesday? On Wednesday, it lowered its first rate cut since the onset of the Covid19 pandemic as it trimmed the federal funds rate by 50 basis points, to a range of 4.75 percent to 5 percent. Moreover, Fed officials adjusted their forecast of this year's unemployment rate to 4.4 per cent, against an earlier estimate of 4 per cent in June. This reflects continued economic hurdles and evidence of a conservative mindset regarding the dynamics of recovery after the pandemic. The cut in interest rates is likely to make a huge difference both for consumers and businesses alike. Lower borrowing costs could have an immediate positive effect on spending and investment, thus boosting growth into 2025. Policymakers are also concerned about increased inflation and unemployment levels as they move forward with these steps. The Fed's experience with this new trend of change in strategy i.e., reduction of rates, after four years, will continue to shape according to the changing economic conditions. Therefore, the focus of market participants shifts towards the upcoming policy meetings of the Federal Reserve.

Federal Reserve expected to slash interest rates by another 50 basis points by year-end

Ray Dalio, the billionaire founder of Bridgewater Associates, identified five primary forces that are shaping the global economy during his recent address at the Milken Institute’s Asia Summit in Singapore. Emphasizing the interconnectedness and cyclical nature of these elements, Dalio presented his insights just ahead of the US Federal Reserve's decision on interest rates as detailed in a CNBC report.

He has also stated post the most recent 50 basis point interest rate cut by the Fed that the real challenge will be to keep interest rates balanced. “The challenge of the Federal Reserve is to keep interest rates high enough that they’re good for the creditor while keeping them not so high that they’re problematic for the debtor.”

What are the 5 pivotal factors shaping the global economy currently?<o:p></o:p>

The first force is debt, currency, and economic cycles. Amid ongoing uncertainty about the actions of the Federal Reserve, Dalio raised concerns about the management of national debt, questioning the potential impacts of a shift in interest rates. As the central bank has reduced interest rates by a 50 basis point it is still crucial to note that the US government has allocated 1.049 trillion dollars for servicing this debt.

This is a significant increase of 30 per cent from the previous year. This scenario raises vital questions, such as how one person's debt transforms into another's asset and its perception as a store of wealth.

Secondly, Dalio spoke about internal stability and turmoil, highlighting the stark divisions within US politics, particularly leading up to the upcoming election. With wealth and value disparities deepening, these divisions pose challenges to the smooth transitioning of power.

Notably, a recent CNBC Fed Survey showed that Vice President Kamala Harris seems more likely to succeed than former President Donald Trump for the first time in election history. Regardless of the eventual victor, the influence of presidential initiatives on the overall economic health remains limited.

The third force is the geopolitical tension surrounding major power rivalries, with a particular focus on the US-China relationship. Dalio underscored that ongoing disputes, from territorial conflicts to economic tariffs, are detrimental to progress. The underlying fear of war plays a limiting role in this dynamic, creating a difficult environment for global trade.

In addition to human actions, Dalio pointed out that natural disasters, referred to as 'acts of nature,' are historically more detrimental than warfare. These disasters have led to significant loss of life and disruption, with the financial costs of climate change projected to skyrocket. In fact, the World Economic Forum indicates that every 1°C rise in temperature could yield a staggering 12 per cent reduction in global GDP.

Lastly, Dalio considered technological advancements led by artificial intelligence, which he believes hold immense potential if adopted and invested in wisely. The productivity gains from technology are substantial, but its benefits often flow to a limited segment of the population, leading to the emergence of unicorn companies.

He noted that success in technology will equate to victory in military power. Therefore, Dalio summarized these forces by stating that future surprises are more likely to be negative than positive, highlighting the complexities and challenges ahead for the global economy.

Ray Dalio, the billionaire founder of Bridgewater Associates, identified five primary forces that are shaping the global economy during his recent address at the Milken Institute’s Asia Summit in Singapore.

Ray Dalio, the billionaire founder of Bridgewater Associates, identified five primary forces that are shaping the global economy during his recent address at the Milken Institute’s Asia Summit in Singapore. Emphasizing the interconnectedness and cyclical nature of these elements, Dalio presented his insights just ahead of the US Federal Reserve's decision on interest rates as detailed in a CNBC report. He has also stated post the most recent 50 basis point interest rate cut by the Fed that the real challenge will be to keep interest rates balanced. “The challenge of the Federal Reserve is to keep interest rates high enough that they’re good for the creditor while keeping them not so high that they’re problematic for the debtor.” What are the 5 pivotal factors shaping the global economy currently? The first force is debt, currency, and economic cycles. Amid ongoing uncertainty about the actions of the Federal Reserve, Dalio raised concerns about the management of national debt, questioning the potential impacts of a shift in interest rates. As the central bank has reduced interest rates by a 50 basis point it is still crucial to note that the US government has allocated 1.049 trillion dollars for servicing this debt. This is a significant increase of 30 per cent from the previous year. This scenario raises vital questions, such as how one person's debt transforms into another's asset and its perception as a store of wealth. Secondly, Dalio spoke about internal stability and turmoil, highlighting the stark divisions within US politics, particularly leading up to the upcoming election. With wealth and value disparities deepening, these divisions pose challenges to the smooth transitioning of power. Notably, a recent CNBC Fed Survey showed that Vice President Kamala Harris seems more likely to succeed than former President Donald Trump for the first time in election history. Regardless of the eventual victor, the influence of presidential initiatives on the overall economic health remains limited. The third force is the geopolitical tension surrounding major power rivalries, with a particular focus on the US-China relationship. Dalio underscored that ongoing disputes, from territorial conflicts to economic tariffs, are detrimental to progress. The underlying fear of war plays a limiting role in this dynamic, creating a difficult environment for global trade. In addition to human actions, Dalio pointed out that natural disasters, referred to as 'acts of nature,' are historically more detrimental than warfare. These disasters have led to significant loss of life and disruption, with the financial costs of climate change projected to skyrocket. In fact, the World Economic Forum indicates that every 1°C rise in temperature could yield a staggering 12 per cent reduction in global GDP. Lastly, Dalio considered technological advancements led by artificial intelligence, which he believes hold immense potential if adopted and invested in wisely. The productivity gains from technology are substantial, but its benefits often flow to a limited segment of the population, leading to the emergence of unicorn companies. He noted that success in technology will equate to victory in military power. Therefore, Dalio summarized these forces by stating that future surprises are more likely to be negative than positive, highlighting the complexities and challenges ahead for the global economy.

Ray Dalio outlines five pivotal forces shaping the global economy

The Federal Reserve has taken a significant step in its monetary policy by cutting interest rates by half a percentage point, marking its first reduction since the onset of the Covid pandemic. This decision, made on Wednesday, aims to mitigate potential downturns in the labor market while responding to easing inflationary pressures as detailed in a report by CNBC.

In a move that aligns with recent market forecasts, the Federal Open Market Committee (FOMC) reduced the benchmark federal funds rate to a range of 4.75 per cent to 5 per cent. This marks a notable shift from the emergency rate cuts implemented during the pandemic, with the last half-point cut occurring in 2008 during the global financial crisis.

"The Committee has gained greater confidence that inflation is moving sustainably toward 2 per cent, and judges that the risks to achieving its employment and inflation goals are roughly in balance," the Federal Reserve statement said.

The FOMC's decision comes amid signs of easing in both employment data and inflation. The committee's post-meeting statement indicated that it has gained confidence in achieving its employment and inflation goals, despite ongoing concerns about the labor market. Further, the vote to lower rates was not unanimous; Governor Michelle Bowman advocated for a more conservative quarter-point reduction.

Economic indicators have shown mixed signals, with the unemployment rate projected to rise to 4.4 per cent this year, up from an earlier estimate of 4 per cent. Concurrently, the inflation forecast has been adjusted downwards from 2.6 per cent to 2.3 per cent, reflecting a cautious approach by the Fed in navigating these economic challenges.

What does the Fed 'dot plot' suggest?

The FOMC's 'dot plot' suggests that additional cuts could be on the horizon, with another potential reduction of 50 basis points expected by year-end. Overall, projections indicate a total reduction of one full percentage point by the end of 2025, with an additional half-point decrease anticipated in 2026.

Despite these adjustments, concerns about the labor market persist. While layoffs have not surged dramatically, hiring has slowed significantly, with recent monthly hiring rates dropping to levels not seen since unemployment rates exceeded 6 per cent. Chair Jerome Powell and other officials have voiced worries about this trend, indicating that vigilance is required as economic conditions evolve.

Investor sentiment leading up to the meeting fluctuated considerably, with expectations for a half-point cut rising to 63 per cent according to CME Group's FedWatch tool. This decision is likely to have broader implications for global monetary policy as central banks in the United Kingdom, Europe, and Canada have also begun reducing rates in response to similar economic pressures.

The Fed's current approach reflects its ongoing struggle to balance economic growth with inflation control. While gross domestic product continues to grow projected at approximately 3 per cent for the third quarter, many indicators suggest that inflation remains above-desired levels. The Fed's preferred measure indicates inflation at around 2.5 per cent, still higher than its target of 2 per cent.

As part of its strategy, the Federal Reserve is also maintaining a program aimed at gradually reducing its bond holdings through quantitative tightening. This process has decreased its balance sheet to $7.2 trillion, down approximately $1 trillion from its peak.

Hence, Wednesday's decision marks a pivotal moment for the Federal Reserve as it embarks on an easing campaign amidst economic uncertainty. With potential further cuts on the horizon and ongoing assessments of labor market dynamics, all eyes will be on how these changes influence both domestic and global economic landscapes in the coming months.

What is the way forward for the Reserve Bank of India?

According to a report by Emkay Global titled "Fed kicks off with a bang, but pace to moderate", released on September 19, the prominent brokerage firm believes that this cut by the Federal Reserve will give room for the emerging markets in Asia to take informed and calculated calls for their easing cycles, "This outsized cut has given emerging markets in&nbsp;Asia room to proceed with their own easing cycles, with the Bank of Indonesia delivering a 25bps cut earlier in the day. With the global market reaction having been muted thus far, the RBI still has the flexibility to remain focused on domestic inflation and risk management, albeit there are over 20 days before its next MPC meeting. The RBI is likely to maintain its wait-and-watch stance and focus on being ‘actively disinflationary’, with a first-rate cut likely by December. A case for an early cut is still less likely, and we continue to see shallow cuts by both the Fed and the RBI in this cycle."&nbsp;&nbsp;

The Federal Reserve has taken a significant step in its monetary policy by cutting interest rates by half a percentage point, marking its first reduction since the onset of the Covid pandemic.

The Federal Reserve has taken a significant step in its monetary policy by cutting interest rates by half a percentage point, marking its first reduction since the onset of the Covid pandemic. This decision, made on Wednesday, aims to mitigate potential downturns in the labor market while responding to easing inflationary pressures as detailed in a report by CNBC. In a move that aligns with recent market forecasts, the Federal Open Market Committee (FOMC) reduced the benchmark federal funds rate to a range of 4.75 per cent to 5 per cent. This marks a notable shift from the emergency rate cuts implemented during the pandemic, with the last half-point cut occurring in 2008 during the global financial crisis. "The Committee has gained greater confidence that inflation is moving sustainably toward 2 per cent, and judges that the risks to achieving its employment and inflation goals are roughly in balance," the Federal Reserve statement said. The FOMC's decision comes amid signs of easing in both employment data and inflation. The committee's post-meeting statement indicated that it has gained confidence in achieving its employment and inflation goals, despite ongoing concerns about the labor market. Further, the vote to lower rates was not unanimous; Governor Michelle Bowman advocated for a more conservative quarter-point reduction. Economic indicators have shown mixed signals, with the unemployment rate projected to rise to 4.4 per cent this year, up from an earlier estimate of 4 per cent. Concurrently, the inflation forecast has been adjusted downwards from 2.6 per cent to 2.3 per cent, reflecting a cautious approach by the Fed in navigating these economic challenges. What does the Fed 'dot plot' suggest? The FOMC's 'dot plot' suggests that additional cuts could be on the horizon, with another potential reduction of 50 basis points expected by year-end. Overall, projections indicate a total reduction of one full percentage point by the end of 2025, with an additional half-point decrease anticipated in 2026. Despite these adjustments, concerns about the labor market persist. While layoffs have not surged dramatically, hiring has slowed significantly, with recent monthly hiring rates dropping to levels not seen since unemployment rates exceeded 6 per cent. Chair Jerome Powell and other officials have voiced worries about this trend, indicating that vigilance is required as economic conditions evolve. Investor sentiment leading up to the meeting fluctuated considerably, with expectations for a half-point cut rising to 63 per cent according to CME Group's FedWatch tool. This decision is likely to have broader implications for global monetary policy as central banks in the United Kingdom, Europe, and Canada have also begun reducing rates in response to similar economic pressures. The Fed's current approach reflects its ongoing struggle to balance economic growth with inflation control. While gross domestic product continues to grow projected at approximately 3 per cent for the third quarter, many indicators suggest that inflation remains above-desired levels. The Fed's preferred measure indicates inflation at around 2.5 per cent, still higher than its target of 2 per cent. As part of its strategy, the Federal Reserve is also maintaining a program aimed at gradually reducing its bond holdings through quantitative tightening. This process has decreased its balance sheet to $7.2 trillion, down approximately $1 trillion from its peak. Hence, Wednesday's decision marks a pivotal moment for the Federal Reserve as it embarks on an easing campaign amidst economic uncertainty. With potential further cuts on the horizon and ongoing assessments of labor market dynamics, all eyes will be on how these changes influence both domestic and global economic landscapes in the coming months. What is the way forward for the Reserve Bank of India? According to a report by Emkay Global titled "Fed kicks off with a bang, but pace to moderate", released on September 19, the prominent brokerage firm believes that this cut by the Federal Reserve will give room for the emerging markets in Asia to take informed and calculated calls for their easing cycles, "This outsized cut has given emerging markets in Asia room to proceed with their own easing cycles, with the Bank of Indonesia delivering a 25bps cut earlier in the day. With the global market reaction having been muted thus far, the RBI still has the flexibility to remain focused on domestic inflation and risk management, albeit there are over 20 days before its next MPC meeting. The RBI is likely to maintain its wait-and-watch stance and focus on being ‘actively disinflationary’, with a first-rate cut likely by December. A case for an early cut is still less likely, and we continue to see shallow cuts by both the Fed and the RBI in this cycle."

Fed cuts interest rates by half a point, initiating easing campaign amid economic concerns

India's Finance Minister Nirmala Sitharaman, on Wednesday (Sep 18)&nbsp;launched a new scheme under the National Pension System (NPS) aimed&nbsp;at financially securing the future of&nbsp;children.&nbsp;The NPS Vatsalya scheme will be managed under the Pension Fund Regulatory and Development Authority (PFRDA).&nbsp;

<h2>What is NPS Vatsalya?</h2>

NPS Vatsalya enables parents to safeguard the future of their children through a pension account and leverage the benefits of compounding for long-term wealth. NPS Vatsalya allows parents to deposit a minimum of Rs 1000 ($11.95) per year in the child’s name until they are&nbsp;a minor.&nbsp;

Sitharaman emphasised that the scheme highlights&nbsp;the government’s commitment to long-term financial planning and security for the country's citizens. The NPS Vatsalya will not only safeguard the children's future but is also designed on the principal intergenerational equity, providing coverage to both older and younger generations of the family. &nbsp;She also emphasised that NPS Vatsalya will encourage youngsters to develop a habit of saving and also mentioned that the scheme will provide a respectable future for individuals in their later years.&nbsp;

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
💡 Why Join <a href="https://twitter.com/hashtag/NPSVATSALYA?src=hash&amp;ref_src=twsrc%5Etfw">#NPSVATSALYA</a>? 
 
• Protection against uncertainty &amp; long-term financial security 
 
• Teaching financial responsibility &amp; pension planning 
 
• Encourages long-term investment 
 
• Flexible future financial planning 
 
• Compound interest benefits<a href="https://twitter.com/hashtag/SmartInvesting?src=hash&amp;ref_src=twsrc%5Etfw">#SmartInvesting</a> <a href="https://twitter.com/hashtag/Invest?src=hash&amp;ref_src=twsrc%5Etfw">#Invest</a> <a href="https://t.co/RENeMglWVR">pic.twitter.com/RENeMglWVR</a>
— PIB in Chandigarh (@PIBChandigarh) <a href="https://twitter.com/PIBChandigarh/status/1836323976559112262?ref_src=twsrc%5Etfw">September 18, 2024</a></blockquote>
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<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/pm-modi-vows-to-restore-jks-statehood-promises-monetary-assistance-to-farmers-women-760118">PM Modi vows to restore J&amp;K's statehood, promises monetary assistance to farmers, women</a>

<h2>How much can you save for your child through this scheme?</h2>

According to a post by&nbsp;the Press Information Bureau (PIB) on the social media platform X, NPS Vatsalya can allow you to save this much for your child:&nbsp;

Annual Contribution: Rs 10,000 ($119.53) 
Investment Duration: 18 years 
Expected Corpus at 18: Rs 5 lakh @10% rate of return (RoR) 
Expected Corpus at 60: 
@10% RoR: Rs 2.75 crore 
@11.59%* RoR: Rs 5.97 crore 
@12.86%# RoR: Rs 11.05 crore

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
📊 Your Pension Potential with <a href="https://twitter.com/hashtag/NPSVATSALYA?src=hash&amp;ref_src=twsrc%5Etfw">#NPSVATSALYA</a> 
 
• Annual Contribution: ₹10,000 
• Investment Duration: 18 years 
• Expected Corpus at 18: ₹5 lakh <a href="https://twitter.com/10?ref_src=twsrc%5Etfw">@10</a>% RoR 
 
Expected Corpus at 60:<a href="https://twitter.com/10?ref_src=twsrc%5Etfw">@10</a>% RoR: ₹2.75 Cr<a href="https://twitter.com/11?ref_src=twsrc%5Etfw">@11</a>.59%* RoR: ₹5.97 Cr<a href="https://twitter.com/12?ref_src=twsrc%5Etfw">@12</a>.86%# RoR: ₹11.05 Cr 
 
Start your investment today! <a href="https://t.co/S7pt00MuT2">pic.twitter.com/S7pt00MuT2</a>
— PIB in Chandigarh (@PIBChandigarh) <a href="https://twitter.com/PIBChandigarh/status/1836329030695391394?ref_src=twsrc%5Etfw">September 18, 2024</a></blockquote>
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<h2>How to open an account for NPS Vatsalya?</h2>

Opening an NPS Vatsalya account is simple and can be done online or offline at dedicated Points of Presence (POPs) like banks and post offices. To open an account online, visit the eNPS website and follow the steps mentioned on it.&nbsp;

<h2>Key Features of NPS Vatsalya Scheme:&nbsp;</h2>

Eligibility Criteria: Any minor with an Aadhar card or Pan card is eligible.&nbsp;

Contributors: Parents or official guardians can contribute on behalf of their children with a minimum amount of Rs 1,000 per year, with no maximum contribution.&nbsp;

<h2>What are the documents required to open an NPS Vatsalya account?</h2>

As per the NPS Trust Website, the following are the documented required:&nbsp;

<ul>
	<li>Date of birth proof of the minor (Birth Certificate, Matriculation Certificate, Passport or School Leaving Certificate).&nbsp;</li>
	<li>KYC of the guardian shall be done by providing identity proof and address (Passport, Voter ID card, Driving Licence, Aadhar Card).&nbsp;</li>
	<li>If the guardian is NRI, a solo or joint bank account of the minor is needed.&nbsp;</li>
</ul>

<h2>How to invest in NPS Vatsalya?</h2>

After the announcement of NPS Vatsalya, several banks released pension plans for minors. Banks such as the Reserve Bank of India, Punjab National Bank, Bank of Maharashtra, Canara Bank, Axis Bank, and ICICI Bank have released their pension plans under NPS Vatsalya. It is advised to check their official website or X handles for further information.

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Plan today for a brighter tomorrow. 
To apply online and for more info, visit: <a href="https://t.co/WpDI1x5NLJ">https://t.co/WpDI1x5NLJ</a><a href="https://twitter.com/PFRDAOfficial?ref_src=twsrc%5Etfw">@PFRDAOfficial</a><a href="https://twitter.com/hashtag/NPS?src=hash&amp;ref_src=twsrc%5Etfw">#NPS</a> <a href="https://twitter.com/hashtag/NPSZaruriHai?src=hash&amp;ref_src=twsrc%5Etfw">#NPSZaruriHai</a> <a href="https://twitter.com/hashtag/NPSPensionForAll?src=hash&amp;ref_src=twsrc%5Etfw">#NPSPensionForAll</a> <a href="https://twitter.com/hashtag/NPSVatsalya?src=hash&amp;ref_src=twsrc%5Etfw">#NPSVatsalya</a> <a href="https://twitter.com/hashtag/PensionkiGullak?src=hash&amp;ref_src=twsrc%5Etfw">#PensionkiGullak</a> <a href="https://twitter.com/hashtag/GiftofCare?src=hash&amp;ref_src=twsrc%5Etfw">#GiftofCare</a> <a href="https://twitter.com/hashtag/Banking?src=hash&amp;ref_src=twsrc%5Etfw">#Banking</a> <a href="https://twitter.com/hashtag/PNB?src=hash&amp;ref_src=twsrc%5Etfw">#PNB</a> <a href="https://t.co/5KG8oHeKtN">pic.twitter.com/5KG8oHeKtN</a>
— Punjab National Bank (@pnbindia) <a href="https://twitter.com/pnbindia/status/1836389719623467224?ref_src=twsrc%5Etfw">September 18, 2024</a></blockquote>
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(With inputs from agencies)

India's Finance Minister Nirmala Sitharaman, on Wednesday (Sep 18) launched a new scheme under the National Pension System (NPS) aimed at financially securing the future of children.

India's Finance Minister Nirmala Sitharaman, on Wednesday (Sep 18) launched a new scheme under the National Pension System (NPS) aimed at financially securing the future of children. The NPS Vatsalya scheme will be managed under the Pension Fund Regulatory and Development Authority (PFRDA). What is NPS Vatsalya? NPS Vatsalya enables parents to safeguard the future of their children through a pension account and leverage the benefits of compounding for long-term wealth. NPS Vatsalya allows parents to deposit a minimum of Rs 1000 ($11.95) per year in the child’s name until they are a minor. Sitharaman emphasised that the scheme highlights the government’s commitment to long-term financial planning and security for the country's citizens. The NPS Vatsalya will not only safeguard the children's future but is also designed on the principal intergenerational equity, providing coverage to both older and younger generations of the family. She also emphasised that NPS Vatsalya will encourage youngsters to develop a habit of saving and also mentioned that the scheme will provide a respectable future for individuals in their later years. 💡 Why Join #NPSVATSALYA? • Protection against uncertainty & long-term financial security • Teaching financial responsibility & pension planning • Encourages long-term investment • Flexible future financial planning • Compound interest benefits#SmartInvesting #Invest pic.twitter.com/RENeMglWVR — PIB in Chandigarh (@PIBChandigarh) September 18, 2024 × Also Read | PM Modi vows to restore J&K's statehood, promises monetary assistance to farmers, women How much can you save for your child through this scheme? According to a post by the Press Information Bureau (PIB) on the social media platform X, NPS Vatsalya can allow you to save this much for your child: Annual Contribution: Rs 10,000 ($119.53) Investment Duration: 18 years Expected Corpus at 18: Rs 5 lakh @10% rate of return (RoR) Expected Corpus at 60: @10% RoR: Rs 2.75 crore @11.59%* RoR: Rs 5.97 crore @12.86%# RoR: Rs 11.05 crore 📊 Your Pension Potential with #NPSVATSALYA • Annual Contribution: ₹10,000 • Investment Duration: 18 years • Expected Corpus at 18: ₹5 lakh @10% RoR Expected Corpus at 60:@10% RoR: ₹2.75 Cr@11.59%* RoR: ₹5.97 Cr@12.86%# RoR: ₹11.05 Cr Start your investment today! pic.twitter.com/S7pt00MuT2 — PIB in Chandigarh (@PIBChandigarh) September 18, 2024 × How to open an account for NPS Vatsalya? Opening an NPS Vatsalya account is simple and can be done online or offline at dedicated Points of Presence (POPs) like banks and post offices. To open an account online, visit the eNPS website and follow the steps mentioned on it. Key Features of NPS Vatsalya Scheme: Eligibility Criteria: Any minor with an Aadhar card or Pan card is eligible. Contributors: Parents or official guardians can contribute on behalf of their children with a minimum amount of Rs 1,000 per year, with no maximum contribution. What are the documents required to open an NPS Vatsalya account? As per the NPS Trust Website, the following are the documented required: Date of birth proof of the minor (Birth Certificate, Matriculation Certificate, Passport or School Leaving Certificate). KYC of the guardian shall be done by providing identity proof and address (Passport, Voter ID card, Driving Licence, Aadhar Card). If the guardian is NRI, a solo or joint bank account of the minor is needed. How to invest in NPS Vatsalya? After the announcement of NPS Vatsalya, several banks released pension plans for minors. Banks such as the Reserve Bank of India, Punjab National Bank, Bank of Maharashtra, Canara Bank, Axis Bank, and ICICI Bank have released their pension plans under NPS Vatsalya. It is advised to check their official website or X handles for further information. Plan today for a brighter tomorrow. To apply online and for more info, visit: https://t.co/WpDI1x5NLJ@PFRDAOfficial#NPS #NPSZaruriHai #NPSPensionForAll #NPSVatsalya #PensionkiGullak #GiftofCare #Banking #PNB pic.twitter.com/5KG8oHeKtN — Punjab National Bank (@pnbindia) September 18, 2024 × (With inputs from agencies)

NPS Vatsalya: All you need to know about the pension scheme for children

In response to the recent death of 26-year-old Chartered Accountant Anna Sebastian Perayil, Ernst &amp; Young India has made a commitment to improve its workplace policies. EY has expressed deep sorrow over Perayil's passing and is taking the family's concerns seriously.

EY said in a statement, ‘Anna was a part of the Audit team at S R Batliboi, a member firm of EY Global, in Pune for a brief period of four months, joining the firm on 18 March 2024. That her promising career was cut short in this tragic manner is an irreparable loss for all of us.’

The company added, ‘While no measure can compensate for the loss experienced by the family, we have provided all the assistance as we always do in such times of distress and will continue to do so.’

This comes after the mother of the deceased young woman sent a letter to EY, flagging the ‘glorification’ of overwork at the multinational consulting firm as the main reason for her daughter’s death. The letter sparked outrage across social media over toxic work culture and its ill-effects. The Indian government has initiated a probe into the 'excessive workload' claims.

The case has also sparked a broader discussion on workplace stress and the pressures faced by employees in high-demand industries. Data shows that corporate overwork can lead to severe health issues, including anxiety and burnout. EY’s response includes a pledge to reassess and improve their work culture to prevent similar incidents in the future. As the investigation continues, the focus remains on understanding how to balance high-performance expectations with employee health and well-being.

In response to the recent death of 26-year-old Chartered Accountant Anna Sebastian Perayil, Ernst & Young India has made a commitment to improve its workplace policies.

In response to the recent death of 26-year-old Chartered Accountant Anna Sebastian Perayil, Ernst & Young India has made a commitment to improve its workplace policies. EY has expressed deep sorrow over Perayil's passing and is taking the family's concerns seriously. EY said in a statement, ‘Anna was a part of the Audit team at S R Batliboi, a member firm of EY Global, in Pune for a brief period of four months, joining the firm on 18 March 2024. That her promising career was cut short in this tragic manner is an irreparable loss for all of us.’ The company added, ‘While no measure can compensate for the loss experienced by the family, we have provided all the assistance as we always do in such times of distress and will continue to do so.’ This comes after the mother of the deceased young woman sent a letter to EY, flagging the ‘glorification’ of overwork at the multinational consulting firm as the main reason for her daughter’s death. The letter sparked outrage across social media over toxic work culture and its ill-effects. The Indian government has initiated a probe into the 'excessive workload' claims. The case has also sparked a broader discussion on workplace stress and the pressures faced by employees in high-demand industries. Data shows that corporate overwork can lead to severe health issues, including anxiety and burnout. EY’s response includes a pledge to reassess and improve their work culture to prevent similar incidents in the future. As the investigation continues, the focus remains on understanding how to balance high-performance expectations with employee health and well-being.

Ernst & Young (EY) India responds to employee Anna's death

An association of Brazilian Internet providers said on Wednesday that Elon Musk's X dodged a ban on the social media network in Brazil through an automatic update of its software, according to a report by Bloomberg.

Access to the platform suddenly reopened overnight for many in Latin America's most populous nation after a Brazilian Supreme Court judge ordered it blocked last month in a spat with Musk. Waking up to find X suddenly working again on their phones, Brazilian users chattered away Wednesday in speculation over whether or not the ruling had been overturned.

The Brazilian Association of Internet and Telecommunications Providers, or ABRINT, explained that in its update, X had changed its structure to make use of IP addresses associated with Cloudflare, a cyber security company in San Francisco. This internet-infrastructure provider works with millions of websites, helping many route their traffic.

Structural changes in X "make blocking the app much more complicated," the ABRINT group said in a statement. The organisation said that under the old system of X, there were specific IP addresses on the platform, which internet companies could use to identify where data is coming from.

Many of the IP addresses currently being used by X “are shared with other legitimate services, such as banks and large internet platforms, making it impossible to block an IP without affecting other services,” ABRINT added.

X, formerly known as Twitter until Musk's 2022 acquisition, said the access restored for Brazilians was "inadvertent and temporary," resulting after the company changed network providers after its ban in the country.

“While we expect the platform to be inaccessible again in Brazil soon, we continue efforts to work with the Brazilian government to return very soon for the people of Brazil,” an X spokesperson said in a statement.

Cloudflare declined to comment. The Supreme Court didn't immediately respond to a request for comment, but local media said it asked Brazil's telecoms regulator, Anatel, to explain the unauthorised return of X.

Anatel said in a statement that it “continues to monitor the blocking order. The surveillance results are reported directly to the Supreme Court.”

Supreme Court Justice Alexandre de Moraes, a crusader against fake news and hate speech, banned X in August after Musk refused to appoint a legal representative in Brazil and restrict certain accounts.

The world's richest man has tried to brand the work of the judge as a hazardous example of state overreach and an attack on free speech, while Moraes's defenders argue that the campaign is needed to scrub the Internet clean.

Earlier Wednesday, Brazil's telecoms regulator, Anatel, said there was no change in the Supreme Court decision to ban X, formally known as Twitter.

An association of Brazilian Internet providers said on Wednesday that Elon Musk's X dodged a ban on the social media network in Brazil through an automatic update of its software, according to a report by Bloomberg.

An association of Brazilian Internet providers said on Wednesday that Elon Musk's X dodged a ban on the social media network in Brazil through an automatic update of its software, according to a report by Bloomberg. Access to the platform suddenly reopened overnight for many in Latin America's most populous nation after a Brazilian Supreme Court judge ordered it blocked last month in a spat with Musk. Waking up to find X suddenly working again on their phones, Brazilian users chattered away Wednesday in speculation over whether or not the ruling had been overturned. The Brazilian Association of Internet and Telecommunications Providers, or ABRINT, explained that in its update, X had changed its structure to make use of IP addresses associated with Cloudflare, a cyber security company in San Francisco. This internet-infrastructure provider works with millions of websites, helping many route their traffic. Structural changes in X "make blocking the app much more complicated," the ABRINT group said in a statement. The organisation said that under the old system of X, there were specific IP addresses on the platform, which internet companies could use to identify where data is coming from. Many of the IP addresses currently being used by X “are shared with other legitimate services, such as banks and large internet platforms, making it impossible to block an IP without affecting other services,” ABRINT added. X, formerly known as Twitter until Musk's 2022 acquisition, said the access restored for Brazilians was "inadvertent and temporary," resulting after the company changed network providers after its ban in the country. “While we expect the platform to be inaccessible again in Brazil soon, we continue efforts to work with the Brazilian government to return very soon for the people of Brazil,” an X spokesperson said in a statement. Cloudflare declined to comment. The Supreme Court didn't immediately respond to a request for comment, but local media said it asked Brazil's telecoms regulator, Anatel, to explain the unauthorised return of X. Anatel said in a statement that it “continues to monitor the blocking order. The surveillance results are reported directly to the Supreme Court.” Supreme Court Justice Alexandre de Moraes, a crusader against fake news and hate speech, banned X in August after Musk refused to appoint a legal representative in Brazil and restrict certain accounts. The world's richest man has tried to brand the work of the judge as a hazardous example of state overreach and an attack on free speech, while Moraes's defenders argue that the campaign is needed to scrub the Internet clean. Earlier Wednesday, Brazil's telecoms regulator, Anatel, said there was no change in the Supreme Court decision to ban X, formally known as Twitter.

Elon Musk's X evades Brazil ban with a software update

Fed Chair Jerome Powell said on Wednesday that the US central bank may have started to cut interest rates in late July had it realised that the labour market was cooling this quickly.

"If you ask, you know, if we'd gotten the July report before the meeting, would we have cut? We might well have," Powell told a news conference after the central bank cut its benchmark overnight interest rate by 50 basis points, more than most analysts had expected. "We didn't make that decision, but you know, we might well have."

Powell said the policy decision unveiled by the Fed on Wednesday doesn't mean it is behind the curve; it's a commitment not to be.

The Labor Department's jobs report for July, out days after the Fed's July 30-31 meeting, showed the unemployment rate had risen to 4.3 per cent and job growth had slowed.

Although the report for August that followed showed unemployment ticking down 4.2 per cent, it was abundant with further proof of deceleration.

"It seems like the Fed wanted to catch up from not going in July," Oscar Munoz, an economist at TD Securities, said after the release of the latest policy decision.

From here, Munoz said, the Fed is in no rush, a point that Powell also made in his post-meeting news conference.

Fed policymakers are nearly evenly split on whether they feel they will need to deliver another 50 basis points of rate cuts over the last two meetings of the year, or should stick to less.

To date, said Powell, the labour market is strong and inflation is on track to move down to 2 percent. Wednesday's rate cut is an attempt to keep it that way.

"The Fed doesn't like to admit policy errors, but some of the decision for a larger initial cut is likely to get caught up as it found itself behind the curve by one meeting," said Ryan Sweet, chief U.S. economist at Oxford Economics. "The September decision is a preemptive strike to increase the odds that the central bank can pull off a 'soft landing.'

Fed Chair Jerome Powell said on Wednesday that the US central bank may have started to cut interest rates in late July had it realised that the labour market was cooling this quickly.

Fed Chair Jerome Powell said on Wednesday that the US central bank may have started to cut interest rates in late July had it realised that the labour market was cooling this quickly. "If you ask, you know, if we'd gotten the July report before the meeting, would we have cut? We might well have," Powell told a news conference after the central bank cut its benchmark overnight interest rate by 50 basis points, more than most analysts had expected. "We didn't make that decision, but you know, we might well have." Powell said the policy decision unveiled by the Fed on Wednesday doesn't mean it is behind the curve; it's a commitment not to be. The Labor Department's jobs report for July, out days after the Fed's July 30-31 meeting, showed the unemployment rate had risen to 4.3 per cent and job growth had slowed. Although the report for August that followed showed unemployment ticking down 4.2 per cent, it was abundant with further proof of deceleration. "It seems like the Fed wanted to catch up from not going in July," Oscar Munoz, an economist at TD Securities, said after the release of the latest policy decision. From here, Munoz said, the Fed is in no rush, a point that Powell also made in his post-meeting news conference. Fed policymakers are nearly evenly split on whether they feel they will need to deliver another 50 basis points of rate cuts over the last two meetings of the year, or should stick to less. To date, said Powell, the labour market is strong and inflation is on track to move down to 2 percent. Wednesday's rate cut is an attempt to keep it that way. "The Fed doesn't like to admit policy errors, but some of the decision for a larger initial cut is likely to get caught up as it found itself behind the curve by one meeting," said Ryan Sweet, chief U.S. economist at Oxford Economics. "The September decision is a preemptive strike to increase the odds that the central bank can pull off a 'soft landing.'

Powell suggests Fed could have cut rates at July meeting

The move by the Federal Reserve to slash interest rates sparked ripples through the 2024 presidential campaign as Democrat Kamala Harris hailed the action as a boon for middle-class families, but Republican Donald Trump said it was a bit politically motivated.

The vitriolic rhetoric over the Fed cutting its benchmark interest rate by half of a percentage point underscored how the central bank - whose Chair Jerome Powell has pledged not to allow political pressures to influence decision-making - could be swinging momentum of the 2024 presidential race with seven weeks to Election Day.

Two duelling narratives underscored the extent to which the economy and interest rates have fast become a focal point in the race, with both sides looking to seize on the move to their electoral advantage.

Speaking at a campaign stop at a Manhattan bar, Trump framed the cut as a "very unusual number" and bad news for his opponent, whatever the Fed's motivation.

“I guess it shows the economy is very bad, to cut it by that much, assuming they’re not just playing politics,” Trump said. “The economy would be very bad, or they’re playing politics, one or the other, but it was a big cut.”

"Welcome news for Americans who have borne the brunt of high prices," Harris said in a statement. Her words betrayed the extent to which inflation, which has hit US households hard and soured voter perceptions of President Joe Biden's handling of the economy, is one of her top political liabilities.

“I know prices are still too high for many middle-class and working families, and my top priority as President will be to lower the costs of everyday needs like health care, housing, and groceries,” Harris said, looking for an edge over Trump's agenda.

“This is the opposite of what Donald Trump would do as president. While proposing more tax cuts for billionaires and big corporations, his plan would increase costs on families by nearly $4,000 a year by slapping a Trump Tax on goods families rely on, like gas, food and clothing,” she said.

Biden called the move an "important moment" in the battle against inflation. "Inflation and interest rates are falling while the economy remains strong," he said in a statement on X. "The critics said it couldn't happen – but our policies are lowering costs and creating jobs." The president said he'd go further into the move Thursday.

The move by the Federal Reserve to slash interest rates sparked ripples through the 2024 presidential campaign as Democrat Kamala Harris hailed the action as a boon for middle-class families, but Republican Donald Trump said it was a bit politically motivated.

The move by the Federal Reserve to slash interest rates sparked ripples through the 2024 presidential campaign as Democrat Kamala Harris hailed the action as a boon for middle-class families, but Republican Donald Trump said it was a bit politically motivated. The vitriolic rhetoric over the Fed cutting its benchmark interest rate by half of a percentage point underscored how the central bank - whose Chair Jerome Powell has pledged not to allow political pressures to influence decision-making - could be swinging momentum of the 2024 presidential race with seven weeks to Election Day. Two duelling narratives underscored the extent to which the economy and interest rates have fast become a focal point in the race, with both sides looking to seize on the move to their electoral advantage. Speaking at a campaign stop at a Manhattan bar, Trump framed the cut as a "very unusual number" and bad news for his opponent, whatever the Fed's motivation. “I guess it shows the economy is very bad, to cut it by that much, assuming they’re not just playing politics,” Trump said. “The economy would be very bad, or they’re playing politics, one or the other, but it was a big cut.” "Welcome news for Americans who have borne the brunt of high prices," Harris said in a statement. Her words betrayed the extent to which inflation, which has hit US households hard and soured voter perceptions of President Joe Biden's handling of the economy, is one of her top political liabilities. “I know prices are still too high for many middle-class and working families, and my top priority as President will be to lower the costs of everyday needs like health care, housing, and groceries,” Harris said, looking for an edge over Trump's agenda. “This is the opposite of what Donald Trump would do as president. While proposing more tax cuts for billionaires and big corporations, his plan would increase costs on families by nearly $4,000 a year by slapping a Trump Tax on goods families rely on, like gas, food and clothing,” she said. Biden called the move an "important moment" in the battle against inflation. "Inflation and interest rates are falling while the economy remains strong," he said in a statement on X. "The critics said it couldn't happen – but our policies are lowering costs and creating jobs." The president said he'd go further into the move Thursday.

Trump and Harris seek political advantage from Fed rate cut