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A large majority of economists surveyed believe that interest rates will come down by only a quarter point in September, at odds with some calls by large Wall Street banks for a jumbo cut at the next meeting.

Almost four-fifths of economists surveyed by Bloomberg expect the Fed to lower rates to 5-5.25 per cent at its Sept. 17-18 meeting, while most of the remaining respondents see a bigger cut. The median projection calls for only a 10 per cent chance of an extraordinary move to shift rates before the meeting.

However, Fed policymakers have pushed back on the need for aggressive actions following a weaker-than-expected jobs report in July, when hiring slowed markedly, and the unemployment rate rose to its highest level in nearly three years.

Fed Chair Jerome Powell and other Fed leaders have said they are putting increased weight on their full employment mandate while striving to reduce inflation to their 2 per cent target.

On the other hand, some key Wall Street banks, like JPMorgan Chase &amp; Co. and Citigroup Inc., revised their calls in the wake of last week's jobs report to call for a half-point move next month. In response, futures investors priced in a 100-basis-point reduction by year-end, starting with a 50-basis-point cut next month.

Yet, the consensus among economists had been that the Fed would approve a more modest quarter-point move at meetings in September, November and December and the first quarter of 2025. The 51 economists were polled August 6-8 in the wake of a global market selloff.

Calls for a jumbo-sized cut 'are overdone and a knee-jerk reaction,' said Ryan Sweet, chief US economist at Oxford Economics. 'Historically, the Federal Open Market Committee has delivered intermeeting cuts and cuts larger than 25bps when there was a clear negative economic shock or when the data were worse than they have been so far.'

A large majority of economists surveyed believe that interest rates will come down by only a quarter point in September, at odds with some calls by large Wall Street banks for a jumbo cut at the next meeting.

A large majority of economists surveyed believe that interest rates will come down by only a quarter point in September, at odds with some calls by large Wall Street banks for a jumbo cut at the next meeting. Almost four-fifths of economists surveyed by Bloomberg expect the Fed to lower rates to 5-5.25 per cent at its Sept. 17-18 meeting, while most of the remaining respondents see a bigger cut. The median projection calls for only a 10 per cent chance of an extraordinary move to shift rates before the meeting. However, Fed policymakers have pushed back on the need for aggressive actions following a weaker-than-expected jobs report in July, when hiring slowed markedly, and the unemployment rate rose to its highest level in nearly three years. Fed Chair Jerome Powell and other Fed leaders have said they are putting increased weight on their full employment mandate while striving to reduce inflation to their 2 per cent target. On the other hand, some key Wall Street banks, like JPMorgan Chase & Co. and Citigroup Inc., revised their calls in the wake of last week's jobs report to call for a half-point move next month. In response, futures investors priced in a 100-basis-point reduction by year-end, starting with a 50-basis-point cut next month. Yet, the consensus among economists had been that the Fed would approve a more modest quarter-point move at meetings in September, November and December and the first quarter of 2025. The 51 economists were polled August 6-8 in the wake of a global market selloff. Calls for a jumbo-sized cut 'are overdone and a knee-jerk reaction,' said Ryan Sweet, chief US economist at Oxford Economics. 'Historically, the Federal Open Market Committee has delivered intermeeting cuts and cuts larger than 25bps when there was a clear negative economic shock or when the data were worse than they have been so far.'

Economists remain cautious amid divergent projections on Fed rate cuts

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market.

In a boost to the US labour market, the Labor Department said on Thursday that initial claims for state unemployment benefits dropped 17,000 to a seasonally adjusted 233,000 for the week ended August 3.

This was the largest decline in almost 11 months and better than economists' expectations of 240,000 claims.

The drop in claims for state unemployment benefits came on the heels of a surprise spike the week before that was probably driven by seasonal shutdowns at motor vehicle plants as well as effects from Hurricane Beryl.

Claims from the previous week were revised slightly higher to 250,000 from the previously reported 249,000.

The better-than-expected jobless claims data lifted financial markets. US equities advanced, while benchmark Treasury yields climbed above 4 per cent.

The US dollar was also higher against a basket of currencies following the release of the data.

Marc Chandler, chief market strategist at Bannockburn Global Forex, commented, "The talk of an imminent recession seems wide of the mark.". Investors scaled back their expectations for a drastic interest rate cut by the Fed any time soon.

Bets on a 50 basis point rate cut in September fell to 58 per cent from 70 per cent before the data was released.

Much of the uptick in claims since June has been blamed on temporary factors, such as auto plant retooling and bad weather.

Claims dropped the most in Michigan and Missouri, two states with significant motor vehicle assembly operations.

Automakers usually idle their assembly lines for retooling during July to bring on new models, a factor that makes for volatility in jobless claims. Although claims have been lingering toward the higher end of this year's range, layoffs have generally remained low.

Government data for June showed the layoff rate was the lowest in over two years.

The slowing labour market seems to be largely a function of less aggressive hiring as interest rate hikes by the Fed in 2022 and 2023 dampen demand.

The Fed is looking closely at claims as a share of the labour force—the claims ratio—for evidence of labour market health.

Labour force growth has generally kept pace with the modest increase in claims, which has changed little from pre-pandemic levels.

Indeed, last week the Fed voted to keep its benchmark overnight interest rate within the 5.25 per cent-5.50 per cent range but signaled a possible cut of borrowing costs at its September meeting.

While a positive jobs-claims outcome, some caution remains. The number of beneficiaries due to continuing claims and the number of people continuing to receive benefits after an initial week of aid measure of hiring trends was 6,000 to a seasonally adjusted 1.875 million in the week ending July 27, continuing an upward trend.

If the data deteriorates quickly from here, the Fed could take more decisive action in September and cut by half a per cent," said Jeffrey Roach, chief economist at LPL Financial, urging investors not to overreact to one report.

In other economic news, the Commerce Department's Census Bureau reported that US wholesale inventories increased by 0.2 per cent in June, adding to economic growth in the second quarter.

The rise followed a 0.5 per cent increase in May. Inventories, a major contribution to gross domestic product, added 0.82 percentage points to GDP growth in the April-June quarter, helping to offset a 0.72 percentage point drag from the wider trade gap.

Wholesale motor vehicle inventories climbed 0.8 percent in June while wholesale inventories of less autos advanced by 0.1 percent.

Sales at wholesalers dropped 0.6 per cent in June after a 0.3 per cent rise in May, suggesting there are some residual issues in the wholesale sector.

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market.

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market. In a boost to the US labour market, the Labor Department said on Thursday that initial claims for state unemployment benefits dropped 17,000 to a seasonally adjusted 233,000 for the week ended August 3. This was the largest decline in almost 11 months and better than economists' expectations of 240,000 claims. The drop in claims for state unemployment benefits came on the heels of a surprise spike the week before that was probably driven by seasonal shutdowns at motor vehicle plants as well as effects from Hurricane Beryl. Claims from the previous week were revised slightly higher to 250,000 from the previously reported 249,000. The better-than-expected jobless claims data lifted financial markets. US equities advanced, while benchmark Treasury yields climbed above 4 per cent. The US dollar was also higher against a basket of currencies following the release of the data. Marc Chandler, chief market strategist at Bannockburn Global Forex, commented, "The talk of an imminent recession seems wide of the mark.". Investors scaled back their expectations for a drastic interest rate cut by the Fed any time soon. Bets on a 50 basis point rate cut in September fell to 58 per cent from 70 per cent before the data was released. Much of the uptick in claims since June has been blamed on temporary factors, such as auto plant retooling and bad weather. Claims dropped the most in Michigan and Missouri, two states with significant motor vehicle assembly operations. Automakers usually idle their assembly lines for retooling during July to bring on new models, a factor that makes for volatility in jobless claims. Although claims have been lingering toward the higher end of this year's range, layoffs have generally remained low. Government data for June showed the layoff rate was the lowest in over two years. The slowing labour market seems to be largely a function of less aggressive hiring as interest rate hikes by the Fed in 2022 and 2023 dampen demand. The Fed is looking closely at claims as a share of the labour force—the claims ratio—for evidence of labour market health. Labour force growth has generally kept pace with the modest increase in claims, which has changed little from pre-pandemic levels. Indeed, last week the Fed voted to keep its benchmark overnight interest rate within the 5.25 per cent-5.50 per cent range but signaled a possible cut of borrowing costs at its September meeting. While a positive jobs-claims outcome, some caution remains. The number of beneficiaries due to continuing claims and the number of people continuing to receive benefits after an initial week of aid measure of hiring trends was 6,000 to a seasonally adjusted 1.875 million in the week ending July 27, continuing an upward trend. If the data deteriorates quickly from here, the Fed could take more decisive action in September and cut by half a per cent," said Jeffrey Roach, chief economist at LPL Financial, urging investors not to overreact to one report. In other economic news, the Commerce Department's Census Bureau reported that US wholesale inventories increased by 0.2 per cent in June, adding to economic growth in the second quarter. The rise followed a 0.5 per cent increase in May. Inventories, a major contribution to gross domestic product, added 0.82 percentage points to GDP growth in the April-June quarter, helping to offset a 0.72 percentage point drag from the wider trade gap. Wholesale motor vehicle inventories climbed 0.8 percent in June while wholesale inventories of less autos advanced by 0.1 percent. Sales at wholesalers dropped 0.6 per cent in June after a 0.3 per cent rise in May, suggesting there are some residual issues in the wholesale sector.

US jobless claims fall sharply, easing recession fears

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September.

An interest rate futures contract expiring later this month, reflecting expectations for Fed policy, surged to its two-month high earlier this week, showing bets that rates might be lowered by the end of August. However, the odds of an emergency rate cut are still low.

The mandate of the Fed is about employment and price stability, according to Chicago Fed President Austan Goolsbee. 'The law doesn't say anything about the stock market. It's about employment and price stability,' Goolsbee said earlier this week, outlining what the Fed is concerned about.

Many analysts now believe that the September meeting will feature a half-percentage-point rate cut, but few see any reason the Fed would act sooner. Nationally, chief economist Kathy Bostjancic of Nationwide stressed that none of the data thus far would be justifiable cause for an emergency rate cut and, as such, may give rise to more market panic. 
Then, ex-New York Fed President Bill Dudley, previously one of the most vigorous defenders of lower interest rates, said an intermeeting cut was "very unlikely" this week.

It's an event that Fed Chair Jerome Powell will probably provide more colour on at the Kansas City Fed's annual economic symposium later this month in Jackson Hole, Wyoming.

For now, Powell is expected to stay in tune with what he set last Wednesday that a rate cut could be in store for the September meeting pending data.

The decision of the Fed is most likely to depend on upcoming jobs data, inflation, consumer spending, and data for economic growth.

Precedents set in the past have shown that the Fed has only cut interest rates between meetings when there has been a major market disruption that extended beyond the stock market.

In these instances, bond market disruptions directly threatened the larger economy, a situation that is not yet apparent.

Among past in-between meeting rate cuts are those the Fed did in response to the Russian financial crisis and the implosion of hedge fund Long-Term Capital Management in 1998, where it lowered the policy rate by 25 basis points.

Then, in 2001, it came up with two surprise half-point cuts in reaction to the crash of technology stocks, once more in the wake of the September 11 attacks.

The most important intermeeting cuts were those during the global financial crisis of 2008, totalling 125 basis points off the target, and in March 2020, when the Fed slashed rates by 150 basis points as a reaction to COVID-19.

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September.

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September. An interest rate futures contract expiring later this month, reflecting expectations for Fed policy, surged to its two-month high earlier this week, showing bets that rates might be lowered by the end of August. However, the odds of an emergency rate cut are still low. The mandate of the Fed is about employment and price stability, according to Chicago Fed President Austan Goolsbee. 'The law doesn't say anything about the stock market. It's about employment and price stability,' Goolsbee said earlier this week, outlining what the Fed is concerned about. Many analysts now believe that the September meeting will feature a half-percentage-point rate cut, but few see any reason the Fed would act sooner. Nationally, chief economist Kathy Bostjancic of Nationwide stressed that none of the data thus far would be justifiable cause for an emergency rate cut and, as such, may give rise to more market panic. Then, ex-New York Fed President Bill Dudley, previously one of the most vigorous defenders of lower interest rates, said an intermeeting cut was "very unlikely" this week. It's an event that Fed Chair Jerome Powell will probably provide more colour on at the Kansas City Fed's annual economic symposium later this month in Jackson Hole, Wyoming. For now, Powell is expected to stay in tune with what he set last Wednesday that a rate cut could be in store for the September meeting pending data. The decision of the Fed is most likely to depend on upcoming jobs data, inflation, consumer spending, and data for economic growth. Precedents set in the past have shown that the Fed has only cut interest rates between meetings when there has been a major market disruption that extended beyond the stock market. In these instances, bond market disruptions directly threatened the larger economy, a situation that is not yet apparent. Among past in-between meeting rate cuts are those the Fed did in response to the Russian financial crisis and the implosion of hedge fund Long-Term Capital Management in 1998, where it lowered the policy rate by 25 basis points. Then, in 2001, it came up with two surprise half-point cuts in reaction to the crash of technology stocks, once more in the wake of the September 11 attacks. The most important intermeeting cuts were those during the global financial crisis of 2008, totalling 125 basis points off the target, and in March 2020, when the Fed slashed rates by 150 basis points as a reaction to COVID-19.

Global market turmoil sparks speculation on early Fed rate cut

Despite reporting a record loss, Suzano SA, the world's largest wood pulp supplier, still manages to report optimism driven by the potential future benefits of a weakened Brazilian currency. The depreciated real, while it inflates the company's foreign debt and reduces the fair value of its derivatives, is expected to boost cash from international sales.

"The more depreciated the currency, the more cash Suzano will generate," Chief Financial Officer Marcelo Bacci said in an interview. The weak currency bolsters revenue from pulp sales, mostly in the US dollar, he said. Most reported losses are due to accounting, with actual cash disbursements related to derivative losses only occurring at expiration. Such influences will be compensated for, he added, by the strong cash flow from continuous sales.

The Sao Paulo-based company posted a loss of BRL 3.77 billion ($680 million) for the quarter ended June, the largest quarterly loss for a comparable period since 1998, compared to a profit of BRL 5.1 billion a year ago. The average estimate from analysts surveyed by Bloomberg was for a profit of 2.13 billion reais.

Even with the financial setback, Suzano's strong operational performance still keeps it buoyed by the high prices of pulp and bigger sales volume. Earnings before interest, taxes, depreciation, and amortisation surged 60 per cent from the previous year, reaching 6.29 billion reais.

Looking ahead, Suzano said it expects sales volumes to be higher in future quarters, thanks to a new mill that started up in July. That's set to aid results even as pulp prices in top importer China started to trend down recently, CEO Beto Abreu said.

Despite the depreciated real and record losses, the Suzano company is positioned to leverage its operational strengths. Weakened currency, coupled with recently added production capacity, can easily turn into a driver for stronger financial performance in the near future.

Despite reporting a record loss, Suzano SA, the world's largest wood pulp supplier, still manages to report optimism driven by the potential future benefits of a weakened Brazilian currency.

Despite reporting a record loss, Suzano SA, the world's largest wood pulp supplier, still manages to report optimism driven by the potential future benefits of a weakened Brazilian currency. The depreciated real, while it inflates the company's foreign debt and reduces the fair value of its derivatives, is expected to boost cash from international sales. "The more depreciated the currency, the more cash Suzano will generate," Chief Financial Officer Marcelo Bacci said in an interview. The weak currency bolsters revenue from pulp sales, mostly in the US dollar, he said. Most reported losses are due to accounting, with actual cash disbursements related to derivative losses only occurring at expiration. Such influences will be compensated for, he added, by the strong cash flow from continuous sales. The Sao Paulo-based company posted a loss of BRL 3.77 billion ($680 million) for the quarter ended June, the largest quarterly loss for a comparable period since 1998, compared to a profit of BRL 5.1 billion a year ago. The average estimate from analysts surveyed by Bloomberg was for a profit of 2.13 billion reais. Even with the financial setback, Suzano's strong operational performance still keeps it buoyed by the high prices of pulp and bigger sales volume. Earnings before interest, taxes, depreciation, and amortisation surged 60 per cent from the previous year, reaching 6.29 billion reais. Looking ahead, Suzano said it expects sales volumes to be higher in future quarters, thanks to a new mill that started up in July. That's set to aid results even as pulp prices in top importer China started to trend down recently, CEO Beto Abreu said. Despite the depreciated real and record losses, the Suzano company is positioned to leverage its operational strengths. Weakened currency, coupled with recently added production capacity, can easily turn into a driver for stronger financial performance in the near future.

Suzano SA looks past record loss on weakened Brazilian real

A group of some 1,200 technology workers vowed to support Kamala Harris's presidential bid, part of an effort to demonstrate wide industry support in Silicon Valley for Democrats outside its most vocal investor class.

Tech4Kamala plans to release the signatories of its letter in support of Harris later Thursday night, according to Bloomberg. A letter labelled her an "archetypical innovator," a "champion of technology" who "worked to expand access to STEM education, promote entrepreneurship and close the digital equity gap."

Although those who signed on did so in their personal capacity, not as representatives of their employers, they work for a number of large tech companies, including Apple, Meta Platforms, and Salesforce Inc. Freelancers, founders, VCs, and people NFT working in technology-adjacent fields like law and real estate appear on the list of names.

"We have an incredible opportunity to mobilise our community of over 7 million tech workers to show that our industry is not just about a handful of billionaires, but about the collective power of tech professionals," said Shannon Nash, one of the organisers of the letter.

Nash is a chief financial officer at a drone company. Other organisers include communications executive Edda Collins Coleman, entrepreneur Julia Collins and human relations executive Felicia Mayo.

The letter comes as a group of more than 700 venture capitalists and investors announced their own letter in support of Harris, while another set of VCs threw their weight behind former President Donald Trump. Although the industry has traditionally tilted left, a vocal set of conservatives this election cycle in Silicon Valley — including Elon Musk, investor David Sacks, and Sequoia Partner Shaun Maguire — have cut checks on Harris's opponent.

The groups Tech4Kamala and VCs for Kamala will join forces to hold a mixer for Harris in Chicago on Aug. 21, organisers said.

A group of some 1,200 technology workers vowed to support Kamala Harris's presidential bid, part of an effort to demonstrate wide industry support in Silicon Valley for Democrats outside its most vocal investor class.

A group of some 1,200 technology workers vowed to support Kamala Harris's presidential bid, part of an effort to demonstrate wide industry support in Silicon Valley for Democrats outside its most vocal investor class. Tech4Kamala plans to release the signatories of its letter in support of Harris later Thursday night, according to Bloomberg. A letter labelled her an "archetypical innovator," a "champion of technology" who "worked to expand access to STEM education, promote entrepreneurship and close the digital equity gap." Although those who signed on did so in their personal capacity, not as representatives of their employers, they work for a number of large tech companies, including Apple, Meta Platforms, and Salesforce Inc. Freelancers, founders, VCs, and people NFT working in technology-adjacent fields like law and real estate appear on the list of names. "We have an incredible opportunity to mobilise our community of over 7 million tech workers to show that our industry is not just about a handful of billionaires, but about the collective power of tech professionals," said Shannon Nash, one of the organisers of the letter. Nash is a chief financial officer at a drone company. Other organisers include communications executive Edda Collins Coleman, entrepreneur Julia Collins and human relations executive Felicia Mayo. The letter comes as a group of more than 700 venture capitalists and investors announced their own letter in support of Harris, while another set of VCs threw their weight behind former President Donald Trump. Although the industry has traditionally tilted left, a vocal set of conservatives this election cycle in Silicon Valley — including Elon Musk, investor David Sacks, and Sequoia Partner Shaun Maguire — have cut checks on Harris's opponent. The groups Tech4Kamala and VCs for Kamala will join forces to hold a mixer for Harris in Chicago on Aug. 21, organisers said.

Tech industry rallies behind Kamala Harris in show of collective support

Social media platform X, earlier known as Twitter, agreed Thursday to stop using the personal data of users in the European Union for training its artificial intelligence to settle ongoing legal action.

The move is in reaction to concerns by the Irish Data Protection Commission, which asked this week for an order to suspend or limit X processing EU user data for the development of its AI without proper consent.

X belongs to Elon Musk and allows users to choose whether their public posts can be used by the AI chatbot, Grok.

Users have to actively opt out by unticking a box in their privacy settings. However, Judge Leonie Reynolds observed that although X began training its AI models using the data of users from the European Union starting on May 7, it did not grant users an option to opt-out until July 16.

An option-out function was also not made available to all users instantly.

A lawyer for X told the court it would not use data collected from EU users from May 7 through Aug. 1, pending the resolution of the DPC's suspension order.

Opposition papers by the legal team for X are due by Sept. 4. 
In a Wednesday post, X's Global Government Affairs account called the regulator's order "unwarranted, overboard, and singles out X without any justification," showing its stand on the matter.

The move by the DPC is in line with similar regulatory actions against other tech giants.

In June, Meta Platforms abandoned a plan to introduce its Meta AI models in Europe after the DPC told the company to delay the launch. 
Alphabet's Google delayed and revised its Gemini AI chatbot this year after consulting the Irish regulator.

Social media platform X, earlier known as Twitter, agreed Thursday to stop using the personal data of users in the European Union for training its artificial intelligence to settle ongoing legal action.

Social media platform X, earlier known as Twitter, agreed Thursday to stop using the personal data of users in the European Union for training its artificial intelligence to settle ongoing legal action. The move is in reaction to concerns by the Irish Data Protection Commission, which asked this week for an order to suspend or limit X processing EU user data for the development of its AI without proper consent. X belongs to Elon Musk and allows users to choose whether their public posts can be used by the AI chatbot, Grok. Users have to actively opt out by unticking a box in their privacy settings. However, Judge Leonie Reynolds observed that although X began training its AI models using the data of users from the European Union starting on May 7, it did not grant users an option to opt-out until July 16. An option-out function was also not made available to all users instantly. A lawyer for X told the court it would not use data collected from EU users from May 7 through Aug. 1, pending the resolution of the DPC's suspension order. Opposition papers by the legal team for X are due by Sept. 4. In a Wednesday post, X's Global Government Affairs account called the regulator's order "unwarranted, overboard, and singles out X without any justification," showing its stand on the matter. The move by the DPC is in line with similar regulatory actions against other tech giants. In June, Meta Platforms abandoned a plan to introduce its Meta AI models in Europe after the DPC told the company to delay the launch. Alphabet's Google delayed and revised its Gemini AI chatbot this year after consulting the Irish regulator.

X agrees to pause AI training with EU user data amid legal dispute

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation. It also retained the stance on withdrawal of accommodation.

Making the announcement, Reserve Bank of India Governor Shaktikanta Das said that inflation also remained broadly on a falling trajectory. Repo rate was last cut by 40 basis points to 4 per cent in May 2020 in view of the economic disruption triggered by the COVID-19 pandemic that had brought demand to a near standstill, forced production cuts, and laid-off millions of jobs. Since then, the central bank has hiked the repo rate by 250 basis points to 6.50 per cent at present to fight high inflation levels after the epidemic subsided.

The resolution to retain the status quo on the repo rate at 6.5 per cent means all the external benchmark lending rates (EBLR) linked to the repo rate will continue to remain unchanged, bringing relief to borrowers as their equated monthly instalments (EMIs) will not increase. It is in response to this cumulative 250 bps policy rate increase that banks have aligned their repo-linked EBLRs upwards since May 2022. Further, the 1-year median marginal cost of funds-based rate (MCLR) of banks increased to 168 bps from May 2022–June 2024.

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation.

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation. It also retained the stance on withdrawal of accommodation. Making the announcement, Reserve Bank of India Governor Shaktikanta Das said that inflation also remained broadly on a falling trajectory. Repo rate was last cut by 40 basis points to 4 per cent in May 2020 in view of the economic disruption triggered by the COVID-19 pandemic that had brought demand to a near standstill, forced production cuts, and laid-off millions of jobs. Since then, the central bank has hiked the repo rate by 250 basis points to 6.50 per cent at present to fight high inflation levels after the epidemic subsided. The resolution to retain the status quo on the repo rate at 6.5 per cent means all the external benchmark lending rates (EBLR) linked to the repo rate will continue to remain unchanged, bringing relief to borrowers as their equated monthly instalments (EMIs) will not increase. It is in response to this cumulative 250 bps policy rate increase that banks have aligned their repo-linked EBLRs upwards since May 2022. Further, the 1-year median marginal cost of funds-based rate (MCLR) of banks increased to 168 bps from May 2022–June 2024.

RBI keeps repo rate intact amid fears of inflation, provides relief to borrowers

The demand for skilled IT talent continues to grow even after a slow period late last year and early this year. IT hiring is set to surge with an estimated 8.5 per cent increase in the next year, according to data from the hiring platform Indeed.&nbsp;

The hiring platform said that almost 70 per cent of all tech jobs posted on it are software roles.&nbsp;

<h2>Why software roles are more in demand?&nbsp;</h2>

Several interconnected factors are responsible for the demand for software roles.&nbsp;

"As businesses increasingly depend on software for operational efficiency and innovation, the demand for developers to create and maintain essential systems has surged," Indeed said in an official readout reviewed by WION.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/these-artificial-intelligence-skills-are-ruling-job-market-as-india-eyes-ai-leader-role-736832">These Artificial Intelligence skills are ruling job market as India eyes AI leader role</a>

"Rapid advancements in technologies like AI, machine learning, and blockchain have further amplified the need for specialised software development to stay competitive. The thriving tech startup ecosystem also plays a significant role, as new ventures prioritise hiring developers to build and scale their products," it added.&nbsp;

The Austin, Texas-headquartered hiring firm said that the continuous need for updates, security patches, and new features in existing software ensures a "steady demand for skilled professionals who can keep pace with evolving user needs and technological advancements."

<h2>What do companies want in software professionals?</h2>

The report said that companies are actively hiring for roles such as Application Developer, Software Engineer, Full-Stack Developer, Senior Software Engineer, and PHP Developer. There's also a growing demand for .NET Developers, Software Architects, DevOps Engineers, Data Engineers, and Front-End Developers.

Also watch |&nbsp;The rise of 'ghost jobs' | Why companies post ghost jobs

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"On the other hand, job seekers are most interested in positions like Full Stack Developer, Software Engineer, Front End Developer, Computer Operator, and Web Developer," it added.

The current alignment between the roles companies are posting and the roles job seekers are clicking on shows a strong market trend for IT jobs in 2024.&nbsp;

The demand for skilled IT talent continues to grow even after a slow period late last year and early this year. IT hiring is set to surge with an estimated 8.5 per cent increase in the next year, according to data from the hiring platform Indeed.

The demand for skilled IT talent continues to grow even after a slow period late last year and early this year. IT hiring is set to surge with an estimated 8.5 per cent increase in the next year, according to data from the hiring platform Indeed. The hiring platform said that almost 70 per cent of all tech jobs posted on it are software roles. Why software roles are more in demand? Several interconnected factors are responsible for the demand for software roles. "As businesses increasingly depend on software for operational efficiency and innovation, the demand for developers to create and maintain essential systems has surged," Indeed said in an official readout reviewed by WION. Also read | These Artificial Intelligence skills are ruling job market as India eyes AI leader role "Rapid advancements in technologies like AI, machine learning, and blockchain have further amplified the need for specialised software development to stay competitive. The thriving tech startup ecosystem also plays a significant role, as new ventures prioritise hiring developers to build and scale their products," it added. The Austin, Texas-headquartered hiring firm said that the continuous need for updates, security patches, and new features in existing software ensures a "steady demand for skilled professionals who can keep pace with evolving user needs and technological advancements." What do companies want in software professionals? The report said that companies are actively hiring for roles such as Application Developer, Software Engineer, Full-Stack Developer, Senior Software Engineer, and PHP Developer. There's also a growing demand for .NET Developers, Software Architects, DevOps Engineers, Data Engineers, and Front-End Developers. Also watch | The rise of 'ghost jobs' | Why companies post ghost jobs × "On the other hand, job seekers are most interested in positions like Full Stack Developer, Software Engineer, Front End Developer, Computer Operator, and Web Developer," it added. The current alignment between the roles companies are posting and the roles job seekers are clicking on shows a strong market trend for IT jobs in 2024.

Good news for IT workers! Tech jobs set to surge in 2025, dataset suggests

Thailand has approved a raft of incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for cars using all types of propulsion systems, according to Thailand's Board of Investment on Thursday. In an effort to attract big companies, Thailand, the biggest automotive production hub in Southeast Asia and an export base for leading global carmakers, is aggressively embracing EVs to attract investments in EVs.

According to the BOI, new projects and existing parts makers are already receiving incentives, but moving to a JV will allow an additional two years of tax breaks, capped at eight years. However, applications must be filed prior to the end of 2025.

In order to be eligible for any type of incentive, a new JV shall invest at least 100 million baht ($2.82 million) in the manufacturing of auto parts production. There must be a venture consisting of a Thai and a foreign firm wherein the local company has to be at least 60 per cent Thai-owned and provide a minimum of 30 per cent of the JV's registered capital, it said.

The BOI approved on Wednesday an investment of South Korean Hyundai Motor Company worth 1 billion baht ($28 million) for the assembly of electric vehicles and batteries in Thailand.

These incentives are, in sum, targeted at establishing the strategic drive of the country to position itself at the core of the global auto industry, especially in the fast-growing EV market. Under this move, the government would enhance cooperation between Thai and foreign companies for technological development to sustain its competitiveness in the regional auto sector.

Thailand has approved a raft of incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for cars using all types of propulsion systems, according to Thailand's Board of Investment on Thursday.

Thailand has approved a raft of incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for cars using all types of propulsion systems, according to Thailand's Board of Investment on Thursday. In an effort to attract big companies, Thailand, the biggest automotive production hub in Southeast Asia and an export base for leading global carmakers, is aggressively embracing EVs to attract investments in EVs. According to the BOI, new projects and existing parts makers are already receiving incentives, but moving to a JV will allow an additional two years of tax breaks, capped at eight years. However, applications must be filed prior to the end of 2025. In order to be eligible for any type of incentive, a new JV shall invest at least 100 million baht ($2.82 million) in the manufacturing of auto parts production. There must be a venture consisting of a Thai and a foreign firm wherein the local company has to be at least 60 per cent Thai-owned and provide a minimum of 30 per cent of the JV's registered capital, it said. The BOI approved on Wednesday an investment of South Korean Hyundai Motor Company worth 1 billion baht ($28 million) for the assembly of electric vehicles and batteries in Thailand. These incentives are, in sum, targeted at establishing the strategic drive of the country to position itself at the core of the global auto industry, especially in the fast-growing EV market. Under this move, the government would enhance cooperation between Thai and foreign companies for technological development to sustain its competitiveness in the regional auto sector.

Thailand offers new incentives for joint ventures to boost auto sector

To regain investors' confidence and to mend its bruised reputation, Australia's Qantas Airlines is slashing the fiscal 2023 pay of ex-CEO Alan Joyce by a record amount. According to the annual report, Mr Joyce, who retired in September 2023, took home A$21.4 million in the 2023 financial year. The airline said on Thursday that the compensation will be reduced by A$9.26 million ($6.03 million).

Further, Qantas is reducing short-term incentives for current and former senior executives by a third. This comes in the wake of a governance review that observed no case of intentional wrongdoing but found significant mistakes made by the board, resulting in huge reputational damage and customer service issues.

"The events that damaged Qantas and its reputation and caused considerable harm to relationships with customers, employees, and other stakeholders were due to a number of factors," the company said. The move has pitted Qantas in a series of legal and regulatory challenges as more discontented investors called for restructuring in management.

Qantas agreed to an A$120 million settlement with regulators back in May over the sale of tickets for flights that had previously been cancelled in an attempt to quash the reputational crisis. This was a step into mollifying the growing discontent among stakeholders and seeking to salvage the reputation of this airline.

The new measures by Qantas are quite strong in terms of correcting the mistakes made in the past and seeking to regain its status from investors and customers alike. Having held its management accountable for these wrongs and finding solutions to the central problems that saw it lose its glory, Qantas is on the way to redeeming its sterling reputation.

To regain investors' confidence and to mend its bruised reputation, Australia's Qantas Airlines is slashing the fiscal 2023 pay of ex-CEO Alan Joyce by a record amount.

To regain investors' confidence and to mend its bruised reputation, Australia's Qantas Airlines is slashing the fiscal 2023 pay of ex-CEO Alan Joyce by a record amount. According to the annual report, Mr Joyce, who retired in September 2023, took home A$21.4 million in the 2023 financial year. The airline said on Thursday that the compensation will be reduced by A$9.26 million ($6.03 million). Further, Qantas is reducing short-term incentives for current and former senior executives by a third. This comes in the wake of a governance review that observed no case of intentional wrongdoing but found significant mistakes made by the board, resulting in huge reputational damage and customer service issues. "The events that damaged Qantas and its reputation and caused considerable harm to relationships with customers, employees, and other stakeholders were due to a number of factors," the company said. The move has pitted Qantas in a series of legal and regulatory challenges as more discontented investors called for restructuring in management. Qantas agreed to an A$120 million settlement with regulators back in May over the sale of tickets for flights that had previously been cancelled in an attempt to quash the reputational crisis. This was a step into mollifying the growing discontent among stakeholders and seeking to salvage the reputation of this airline. The new measures by Qantas are quite strong in terms of correcting the mistakes made in the past and seeking to regain its status from investors and customers alike. Having held its management accountable for these wrongs and finding solutions to the central problems that saw it lose its glory, Qantas is on the way to redeeming its sterling reputation.

Qantas reforms: Fiscal reckoning under reputational crisis

LATAM Airlines is eyeing fleet additions of smaller planes like Embraer's E2 model and the Airbus' A220, the firm's Brazil head said on Wednesday.&nbsp;

"We have mapped out what growth could look like with a smaller (capacity) fleet," executive Jerome Cadier told journalists. "And this smaller fleet could come from Embraer, it could come from Airbus, and we're constantly looking for alternatives to increase growth."

In the regional sector, up-to-150-seat aircraft, Embraer's next-generation E2 jets, and the Airbus A220 are both solid competitors. Cadier added that since last year, LATAM has been studying other fleet alternatives. This is because Airbus and Boeing face issues in producing new aircraft and grounding planes requiring mandatory motor inspections.

The head of Brazil's state development bank, BNDES, indicated last month that both LATAM and carrier Gol were in advanced talks for the addition of Embraer aircraft to their fleets. The move is strategic on the part of the airlines toward the adoption of more versatile fleet configurations and efficient fleets to boost regional operations.

On Wednesday, however, LATAM's Chief Financial Officer Ramiro Alfonsin told reporters that nothing was as yet concrete. The carrier continues to weigh the potential advantages against the logistical implications of adding smaller aircraft models into its fleet mix in search of a better growth trajectory.

This concludes the fact that LATAM Airlines is mulling over the Embraer and Airbus models as part of its clear commitment toward fleet efficiency optimization and adjustment with dynamic market demand. This exploration, therefore, would probably place the airline in a better position amid persisting industrial hurdles, leading to sustainable growth and better operational flexibility.

LATAM Airlines is eyeing fleet additions of smaller planes like Embraer's E2 model and the Airbus' A220, the firm's Brazil head said on Wednesday. "We have mapped out what growth could look like with a smaller (capacity) fleet," executive Jerome Cadier told journalists.

LATAM Airlines is eyeing fleet additions of smaller planes like Embraer's E2 model and the Airbus' A220, the firm's Brazil head said on Wednesday. "We have mapped out what growth could look like with a smaller (capacity) fleet," executive Jerome Cadier told journalists. "And this smaller fleet could come from Embraer, it could come from Airbus, and we're constantly looking for alternatives to increase growth." In the regional sector, up-to-150-seat aircraft, Embraer's next-generation E2 jets, and the Airbus A220 are both solid competitors. Cadier added that since last year, LATAM has been studying other fleet alternatives. This is because Airbus and Boeing face issues in producing new aircraft and grounding planes requiring mandatory motor inspections. The head of Brazil's state development bank, BNDES, indicated last month that both LATAM and carrier Gol were in advanced talks for the addition of Embraer aircraft to their fleets. The move is strategic on the part of the airlines toward the adoption of more versatile fleet configurations and efficient fleets to boost regional operations. On Wednesday, however, LATAM's Chief Financial Officer Ramiro Alfonsin told reporters that nothing was as yet concrete. The carrier continues to weigh the potential advantages against the logistical implications of adding smaller aircraft models into its fleet mix in search of a better growth trajectory. This concludes the fact that LATAM Airlines is mulling over the Embraer and Airbus models as part of its clear commitment toward fleet efficiency optimization and adjustment with dynamic market demand. This exploration, therefore, would probably place the airline in a better position amid persisting industrial hurdles, leading to sustainable growth and better operational flexibility.

LATAM Airlines explores fleet expansion with Embraer and Airbus

Monster Beverage came up short of market expectations for its second quarter sales Wednesday, citing budget-conscious consumers trimming spending on its pricey energy drinks amid an uncertain economic climate. Higher costs for food and other items, such as fuel, have squeezed US shoppers toward being more frugal, which in turn has damped down demand for non-essential goods like those Monster sells.

The California-based company's shares fell around 10 per cent in after-hours trading. Co-Chief Executive Officer Hilton Schlosberg called out the challenging retail environment: "Retailers have reported a reduction in convenience store foot traffic and we have seen a shift at retail towards more mass and dollar channels. Other beverage and consumer packaged product companies have also seen a tighter consumer spending environment and weaker demand in the quarter."

Monster Beverage said it would raise prices on its core brands and packages by approximately 5 per cent in the United States, effective November 1, due to increasing costs. It increases—amid global packaged food makers having been hiking prices to combat mounting costs.

Monster Beverage posted net sales of $1.90 billion for the second quarter, below analysts' average estimate of $2.01 billion, according to LSEG data. The company also reported a profit of 41 cents per share for the three months ended June 30, below analysts' expectations of 45 cents per share.

Monster Beverage's recent performance had a plausible driving force in economic pressure weighing down on the spending behaviour of their consumers. These price adjustments speak for the company to sail through these challenges with poise and maintain profitability amid a fluctuating market. In an uncertain time like the present, Monster Beverage can adapt and continue to grow, depending on the ability to flex at times of pressure and leverage its strength.

Monster Beverage came up short of market expectations for its second quarter sales Wednesday, citing budget-conscious consumers trimming spending on its pricey energy drinks amid an uncertain economic climate.

Monster Beverage came up short of market expectations for its second quarter sales Wednesday, citing budget-conscious consumers trimming spending on its pricey energy drinks amid an uncertain economic climate. Higher costs for food and other items, such as fuel, have squeezed US shoppers toward being more frugal, which in turn has damped down demand for non-essential goods like those Monster sells. The California-based company's shares fell around 10 per cent in after-hours trading. Co-Chief Executive Officer Hilton Schlosberg called out the challenging retail environment: "Retailers have reported a reduction in convenience store foot traffic and we have seen a shift at retail towards more mass and dollar channels. Other beverage and consumer packaged product companies have also seen a tighter consumer spending environment and weaker demand in the quarter." Monster Beverage said it would raise prices on its core brands and packages by approximately 5 per cent in the United States, effective November 1, due to increasing costs. It increases—amid global packaged food makers having been hiking prices to combat mounting costs. Monster Beverage posted net sales of $1.90 billion for the second quarter, below analysts' average estimate of $2.01 billion, according to LSEG data. The company also reported a profit of 41 cents per share for the three months ended June 30, below analysts' expectations of 45 cents per share. Monster Beverage's recent performance had a plausible driving force in economic pressure weighing down on the spending behaviour of their consumers. These price adjustments speak for the company to sail through these challenges with poise and maintain profitability amid a fluctuating market. In an uncertain time like the present, Monster Beverage can adapt and continue to grow, depending on the ability to flex at times of pressure and leverage its strength.

Monster Beverage falters as consumer spending tightens amid economic uncertainty

Liquidators of troubled property giant China Evergrande Group have launched legal action against PricewaterhouseCoopers, accusing the auditing firm of "negligence" and "misrepresentation" over its work for the company, according to the Financial Times. The publication has seen court documents showing that lawyers representing the liquidators filed court actions against both PwC Hong Kong and PwC Zhong Tian in March.

The liquidators have also filed lawsuits against commercial real estate services company CBRE Group and investment banking advisory firm Avista Advisory Group over valuation reports the firms prepared for Evergrande and its subsidiaries in 2018.

PwC did not comment on the report; likewise, Evergrande, CBRE, and Avista did not immediately respond to a request for comment from Reuters.

Once China's largest property developer, Evergrande was ordered to liquidate by a Hong Kong court in January after it did not give a concrete restructuring plan for its $23 billion worth of offshore debt, which was deemed in default. PwC, the auditor of Evergrande for almost 14 years until it resigned from the company early in 2023, has been under great scrutiny and pressure due to business ties. The mainland authorities had long probed its role in auditing Evergrande.

The seriousness of the legal actions brought against PwC and other advisory firms only underlines the potential financial ruin that could be visited on all if Evergrande were to collapse. As liquidators try to make these firms accountable, the spotlight has simply been brought right back to untangling the deep, double-barrelled issues of financial mismanagement that occurred at Evergrande and wider for the auditing and advisory sectors. This litigation reiterates why there is a need for strict auditing practices to ensure financial advisors are responsible and liable for protection from corporate failures.

Liquidators of troubled property giant China Evergrande Group have launched legal action against PricewaterhouseCoopers, accusing the auditing firm of "negligence" and "misrepresentation" over its work for the company, according to the Financial Times.

Liquidators of troubled property giant China Evergrande Group have launched legal action against PricewaterhouseCoopers, accusing the auditing firm of "negligence" and "misrepresentation" over its work for the company, according to the Financial Times. The publication has seen court documents showing that lawyers representing the liquidators filed court actions against both PwC Hong Kong and PwC Zhong Tian in March. The liquidators have also filed lawsuits against commercial real estate services company CBRE Group and investment banking advisory firm Avista Advisory Group over valuation reports the firms prepared for Evergrande and its subsidiaries in 2018. PwC did not comment on the report; likewise, Evergrande, CBRE, and Avista did not immediately respond to a request for comment from Reuters. Once China's largest property developer, Evergrande was ordered to liquidate by a Hong Kong court in January after it did not give a concrete restructuring plan for its $23 billion worth of offshore debt, which was deemed in default. PwC, the auditor of Evergrande for almost 14 years until it resigned from the company early in 2023, has been under great scrutiny and pressure due to business ties. The mainland authorities had long probed its role in auditing Evergrande. The seriousness of the legal actions brought against PwC and other advisory firms only underlines the potential financial ruin that could be visited on all if Evergrande were to collapse. As liquidators try to make these firms accountable, the spotlight has simply been brought right back to untangling the deep, double-barrelled issues of financial mismanagement that occurred at Evergrande and wider for the auditing and advisory sectors. This litigation reiterates why there is a need for strict auditing practices to ensure financial advisors are responsible and liable for protection from corporate failures.

Liquidators of China Evergrande sue PwC over alleged negligence, misrepresentation

Illumina, the biggest seller of gene sequencing machines, gave a weak outlook for sales in its central business in 2024. According to the company, genetic testing instruments will continue to see lacklustre demand all year. The tepid demand for tools and services to develop therapies and vaccines came from key markets like China. That weakness is amplified by a conservatism in spending from biotechnology firms in an environment of high interest rates.

Though consumable sales were solid and indicative of increased sequencing activity, CEO Jacob Thaysen called out a weakening demand for instruments in the face of a constrained funding landscape. As such, Illumina now expects its Core Illumina revenue to decline 2 per cent to 3 per cent year-over-year. Earlier, it had expected full-year revenue from the segment to be flat.

On an adjusted basis, Illumina forecasts a core segment per-share profit of $3.80 to $3.95 for 2024, which is near analyst expectations for a full-year adjusted profit of $3.91 per share for the entire company.

Illumina works under two reportable segments: Core Illumina and Grail. Grail, which was spun off on June 24, has been divested following its antitrust problems with both US and European regulators, plus huge opposition from activist investor Carl Icahn. The company had flagged a $1.47 billion goodwill impairment charge in the second quarter related to the Grail spin-off.

San Diego-based Illumina reported quarterly revenues of $1.11 billion for the second quarter, ahead of $1.08 billion that analysts had estimated. The company earned 36 cents a share on an adjusted basis during the quarter ended June 30, missing the average analyst estimate of 90 cents a share.

Illumina is focused on executing a strong consumable sales backdrop that will sustain it through a weakened instrument demand environment. These strategic decisions—like the divestiture of Grail—represent the company's efforts to refocus and renew its core operations within ongoing uncertainties in the markets.

Illumina, the biggest seller of gene sequencing machines, gave a weak outlook for sales in its central business in 2024. According to the company, genetic testing instruments will continue to see lacklustre demand all year.

Illumina, the biggest seller of gene sequencing machines, gave a weak outlook for sales in its central business in 2024. According to the company, genetic testing instruments will continue to see lacklustre demand all year. The tepid demand for tools and services to develop therapies and vaccines came from key markets like China. That weakness is amplified by a conservatism in spending from biotechnology firms in an environment of high interest rates. Though consumable sales were solid and indicative of increased sequencing activity, CEO Jacob Thaysen called out a weakening demand for instruments in the face of a constrained funding landscape. As such, Illumina now expects its Core Illumina revenue to decline 2 per cent to 3 per cent year-over-year. Earlier, it had expected full-year revenue from the segment to be flat. On an adjusted basis, Illumina forecasts a core segment per-share profit of $3.80 to $3.95 for 2024, which is near analyst expectations for a full-year adjusted profit of $3.91 per share for the entire company. Illumina works under two reportable segments: Core Illumina and Grail. Grail, which was spun off on June 24, has been divested following its antitrust problems with both US and European regulators, plus huge opposition from activist investor Carl Icahn. The company had flagged a $1.47 billion goodwill impairment charge in the second quarter related to the Grail spin-off. San Diego-based Illumina reported quarterly revenues of $1.11 billion for the second quarter, ahead of $1.08 billion that analysts had estimated. The company earned 36 cents a share on an adjusted basis during the quarter ended June 30, missing the average analyst estimate of 90 cents a share. Illumina is focused on executing a strong consumable sales backdrop that will sustain it through a weakened instrument demand environment. These strategic decisions—like the divestiture of Grail—represent the company's efforts to refocus and renew its core operations within ongoing uncertainties in the markets.

Illumina says slumping sales in core segment expected as demand softens, economy weighs

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised&nbsp;real estate indexation rules in the Parliament.&nbsp;

With the relaxed rules,&nbsp;taxpayers will get more flexibility in calculating their long-term capital gains tax.

"The amendment gives taxpayers a choice to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on people," Sitharaman said.

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:150,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1836}">What changes did she announce?</h2>

The changes introduced by Sitharaman provide property owners&nbsp;who sold assets before July 23, 2024, two options for calculating their long-term capital gains tax.&nbsp;Taxpayers&nbsp;can choose between the new and old tax regimes, thus selecting the one with the lower tax liability.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/over-100-animals-being-cared-for-in-aftermath-of-wayanad-landslides-748062">Over 100 animals being cared for in Wayanad after devastating landslides</a>

<h3 bis_size="{&quot;x&quot;:8,&quot;y&quot;:264,&quot;w&quot;:723,&quot;h&quot;:20,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1950}">12.5% LTCG rate without indexation</h3>

Taxpayers can pay a lower rate of 12.5 per cent on capital gains from property sales without adjusting the purchase price for inflation.

<h3 bis_size="{&quot;x&quot;:8,&quot;y&quot;:354,&quot;w&quot;:723,&quot;h&quot;:20,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2040}">20% LTCG rate with indexation</h3>

Taxpayers can opt for a 20 per cent tax rate while adjusting the property's purchase price for inflation using the Cost Inflation Index (CII), potentially reducing their taxable gains.

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:446,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2132}">Reduced burden on middle class</h2>

Sitharaman emphasised the government's commitment to a simplified tax structure while responding to criticisms that corporate taxes are lower than individual taxes and said that the tax burden on the middle class has been reduced.

She noted that the effective tax on an annual income of Rs 15 lakh ($137,000) was lowered to 10 per cent in 2023 and further reduced this year.

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There is a narrative about us 'not doing anything' about the middle class &amp; them being 'angry' with us. I want them to understand that this country had 98% taxation in one of the earlier regimes, which also never cared about the fundamental rights of the citizens. The regime… <a href="https://t.co/WtdOnlkLdb">pic.twitter.com/WtdOnlkLdb</a>
— Nirmala Sitharaman Office (@nsitharamanoffc) <a href="https://twitter.com/nsitharamanoffc/status/1821201978585964806?ref_src=twsrc%5Etfw">August 7, 2024</a></blockquote>
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"Corporate taxes are lower than the individual taxes claim is not well founded. It is not based on facts," she said, refuting claims that the government favours big corporations over middle-class taxpayers.

Also read |&nbsp;<a bis_size="{&quot;x&quot;:8,&quot;y&quot;:657,&quot;w&quot;:684,&quot;h&quot;:34,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2343}" href="https://www.wionews.com/india-news/pulling-hair-pushing-a-woman-during-quarrel-does-not-mean-outraging-her-modesty-bombay-hc-748031">Pulling hair, pushing a woman during quarrel does not mean outraging her modesty: Bombay HC</a>

"One should note that the corporates are legal entities. The dividend income is also part of the profits. It was earlier taxed at a lower rate in the hands of the company. In 2020, we started taxing it at the hands of shareholders at the applicable rate. This effectively meant the richer shareholders would pay tax on dividends at 39 per cent rate. In contrast, small and medium-income taxpayers will pay tax on dividends at even less than 10 per cent, which is the effective tax rate. Therefore, the argument that you burden the middle-class taxpayers by supporting only big corporations is not true," she said.

"Without drastically increasing taxes, we have brought in a simplified taxation regime and eased compliance," she added.&nbsp;

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:879,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2565}">More and more prefer the new tax regime: Sitharaman</h2>

Sitharaman highlighted the growing preference for the New Tax Regime, with 72.8 per cent of taxpayers opting for it this year.

Sitharaman also addressed concerns about savings and said: "Middle class losing out is not a correct argument. The new regime is promoting investment, which is happening with investment in mutual funds have increased tremendously".

"The vision of PM Modi has been to establish a simple, efficient and fair technology-driven taxation regime in this country. So, simplification and ease of compliance for the taxpayer has been the primary objective with which in the last 10 years, and this year, in the third term of PM Modi, the approach to taxation has been to simplify it, reduce the burden on taxpayer and make sure it is transparent and Equitas," she concluded.

(With inputs from agencies)

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised real estate indexation rules in the Parliament.

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised real estate indexation rules in the Parliament. With the relaxed rules, taxpayers will get more flexibility in calculating their long-term capital gains tax. "The amendment gives taxpayers a choice to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on people," Sitharaman said. What changes did she announce? The changes introduced by Sitharaman provide property owners who sold assets before July 23, 2024, two options for calculating their long-term capital gains tax. Taxpayers can choose between the new and old tax regimes, thus selecting the one with the lower tax liability. Also read | Over 100 animals being cared for in Wayanad after devastating landslides 12.5% LTCG rate without indexation Taxpayers can pay a lower rate of 12.5 per cent on capital gains from property sales without adjusting the purchase price for inflation. 20% LTCG rate with indexation Taxpayers can opt for a 20 per cent tax rate while adjusting the property's purchase price for inflation using the Cost Inflation Index (CII), potentially reducing their taxable gains. Reduced burden on middle class Sitharaman emphasised the government's commitment to a simplified tax structure while responding to criticisms that corporate taxes are lower than individual taxes and said that the tax burden on the middle class has been reduced. She noted that the effective tax on an annual income of Rs 15 lakh ($137,000) was lowered to 10 per cent in 2023 and further reduced this year. There is a narrative about us 'not doing anything' about the middle class & them being 'angry' with us. I want them to understand that this country had 98% taxation in one of the earlier regimes, which also never cared about the fundamental rights of the citizens. The regime… pic.twitter.com/WtdOnlkLdb — Nirmala Sitharaman Office (@nsitharamanoffc) August 7, 2024 × "Corporate taxes are lower than the individual taxes claim is not well founded. It is not based on facts," she said, refuting claims that the government favours big corporations over middle-class taxpayers. Also read | Pulling hair, pushing a woman during quarrel does not mean outraging her modesty: Bombay HC "One should note that the corporates are legal entities. The dividend income is also part of the profits. It was earlier taxed at a lower rate in the hands of the company. In 2020, we started taxing it at the hands of shareholders at the applicable rate. This effectively meant the richer shareholders would pay tax on dividends at 39 per cent rate. In contrast, small and medium-income taxpayers will pay tax on dividends at even less than 10 per cent, which is the effective tax rate. Therefore, the argument that you burden the middle-class taxpayers by supporting only big corporations is not true," she said. "Without drastically increasing taxes, we have brought in a simplified taxation regime and eased compliance," she added. More and more prefer the new tax regime: Sitharaman Sitharaman highlighted the growing preference for the New Tax Regime, with 72.8 per cent of taxpayers opting for it this year. Sitharaman also addressed concerns about savings and said: "Middle class losing out is not a correct argument. The new regime is promoting investment, which is happening with investment in mutual funds have increased tremendously". "The vision of PM Modi has been to establish a simple, efficient and fair technology-driven taxation regime in this country. So, simplification and ease of compliance for the taxpayer has been the primary objective with which in the last 10 years, and this year, in the third term of PM Modi, the approach to taxation has been to simplify it, reduce the burden on taxpayer and make sure it is transparent and Equitas," she concluded. (With inputs from agencies)

Nirmala Sitharaman says burden on middle class narrative ‘not based on facts’; clarifies real estate taxes

A senior executive at Nomura Holdings Inc. defended the Bank of Japan's decision to raise interest rates last week despite the turmoil it's causing in global equity markets. Christopher Willcox, the Japanese brokerage's head of trading and investment banking, came out in support of the BOJ move in an interview with Bloomberg Television after global markets tumbled.

This global stock market rout was largely due to fears over the outlook of the US economy and a divergence of central bank policies. Japan's benchmark Topix Index suffered a record two-day decline before rebounding Tuesday, as worries over further interest-rate increases and gains in the yen spooked investors.

Willcox said, "The BOJ has been wholly vindicated. Unwinding is likely to be bumpy." His remarks were during a period when Nomura's share was running through huge volatility. They dropped around 19 per cent on Monday—its biggest slide in at least five decades—to wipe out much of this year's gain despite better earnings. Nomura was up 11 per cent on Tuesday as Topix recovered 9.3 per cent.

He also commented on the implications for the carry trade—a strategy in which investors borrow in low-interest currencies to invest in higher-yielding markets. Many closed positions following the rate hike by the BOJ. "If they did not move, it would have only gotten bigger," said Willcox. "The BOJ is playing very smartly."

The move by the Bank of Japan is more of a precautionary step against the possible risks of long-term low-interest rates, though it has immediate repercussions on markets. While some volatility may be witnessed further down the road, current leadership at Nomura believes that the BOJ strategy will, in the long run, help financial markets—underlining the tightrope that central banks have to walk with their policies.

A senior executive at Nomura Holdings Inc. defended the Bank of Japan's decision to raise interest rates last week despite the turmoil it's causing in global equity markets.

A senior executive at Nomura Holdings Inc. defended the Bank of Japan's decision to raise interest rates last week despite the turmoil it's causing in global equity markets. Christopher Willcox, the Japanese brokerage's head of trading and investment banking, came out in support of the BOJ move in an interview with Bloomberg Television after global markets tumbled. This global stock market rout was largely due to fears over the outlook of the US economy and a divergence of central bank policies. Japan's benchmark Topix Index suffered a record two-day decline before rebounding Tuesday, as worries over further interest-rate increases and gains in the yen spooked investors. Willcox said, "The BOJ has been wholly vindicated. Unwinding is likely to be bumpy." His remarks were during a period when Nomura's share was running through huge volatility. They dropped around 19 per cent on Monday—its biggest slide in at least five decades—to wipe out much of this year's gain despite better earnings. Nomura was up 11 per cent on Tuesday as Topix recovered 9.3 per cent. He also commented on the implications for the carry trade—a strategy in which investors borrow in low-interest currencies to invest in higher-yielding markets. Many closed positions following the rate hike by the BOJ. "If they did not move, it would have only gotten bigger," said Willcox. "The BOJ is playing very smartly." The move by the Bank of Japan is more of a precautionary step against the possible risks of long-term low-interest rates, though it has immediate repercussions on markets. While some volatility may be witnessed further down the road, current leadership at Nomura believes that the BOJ strategy will, in the long run, help financial markets—underlining the tightrope that central banks have to walk with their policies.

BOJ's rate hike spurs market mayhem as Nomura takes historic tumble

The International Monetary Fund announced on Tuesday that it has reached "preliminary understandings" with El Salvador to make economic growth and fiscal stability more forceful. This step will set up a Fund-supported program to strengthen public finances, beef up bank reserve buffers, enhance governance and transparency, and address the risks associated with bitcoin.

It also highlighted the progress of the negotiations, referring to a set of policies that will strengthen El Salvador's primary balance by about 3.5 per cent of GDP within three years. According to them, fiscal consolidation will be achieved through measures like the rationalisation of the public wage bill. This has therefore oriented it toward being fiscally sustainable.

While the IMF has repeatedly expressed reservations about El Salvador’s use of Bitcoin as legal tender, discussions acknowledge that there are grounds for improved transparency and measures to mitigate potential fiscal and financial stability risks. “While many of the risks have not yet materialised, there is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project,” the Fund said.

Work on the program for strengthening reserve buffers in the financial system was furthered. This plan should make it possible to maintain more resilience against economic shocks and support the overall stability of the financial sector. Moreover, the parties have agreed on measures aimed at strengthening governance and transparency, which are meaningful to retain investor confidence and foster sustainable development.

This IMF preliminary agreement with El Salvador reflects cooperation in finding solutions to the economic issues of the country. El Salvador will work on fiscal policies with a robust and sound financial system, resisting governance practices in pursuit of sustainable economic growth and stability in a financial world filled with looming risks.

The International Monetary Fund announced on Tuesday that it has reached "preliminary understandings" with El Salvador to make economic growth and fiscal stability more forceful.

The International Monetary Fund announced on Tuesday that it has reached "preliminary understandings" with El Salvador to make economic growth and fiscal stability more forceful. This step will set up a Fund-supported program to strengthen public finances, beef up bank reserve buffers, enhance governance and transparency, and address the risks associated with bitcoin. It also highlighted the progress of the negotiations, referring to a set of policies that will strengthen El Salvador's primary balance by about 3.5 per cent of GDP within three years. According to them, fiscal consolidation will be achieved through measures like the rationalisation of the public wage bill. This has therefore oriented it toward being fiscally sustainable. While the IMF has repeatedly expressed reservations about El Salvador’s use of Bitcoin as legal tender, discussions acknowledge that there are grounds for improved transparency and measures to mitigate potential fiscal and financial stability risks. “While many of the risks have not yet materialised, there is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project,” the Fund said. Work on the program for strengthening reserve buffers in the financial system was furthered. This plan should make it possible to maintain more resilience against economic shocks and support the overall stability of the financial sector. Moreover, the parties have agreed on measures aimed at strengthening governance and transparency, which are meaningful to retain investor confidence and foster sustainable development. This IMF preliminary agreement with El Salvador reflects cooperation in finding solutions to the economic issues of the country. El Salvador will work on fiscal policies with a robust and sound financial system, resisting governance practices in pursuit of sustainable economic growth and stability in a financial world filled with looming risks.

IMF, El Salvador agree on preliminary accord to strengthen economic stability, fiscal health

Microsoft and CrowdStrike, a cybersecurity company, have joined forces in a bid to debunk allegations by Delta Air Lines that the two firms were to blame for last month's tech outage that grounded thousands of flights. The battle, anchored on accusations from Delta, has just accelerated as each of these tech companies rush to defend their reputation.

On Tuesday, Microsoft lawyer Mark Cheffo wrote a letter to Delta attorney David Boies, pushing back on its claims, saying that the airline's core tech system is probably serviced by other technology vendors, not Microsoft Windows. "Your letter and Delta's public comments are incomplete, false, misleading, and damaging to Microsoft and its reputation," Cheffo said.

Cheffo further noted the efforts that Microsoft had made to understand why other airlines restored their operations faster than Delta. The remark, in a way, exposes the growing rift between the tech giants and the Atlanta-based airline.

Last week, Delta CEO Ed Bastian said a global tech outage—a faulty CrowdStrike upgrade on machines running Microsoft Windows—ran $500 million. He also intimated that lawsuits against those companies responsible could be in order. For its part, the statement reflected a commitment to reliable service—'billions of dollars in IT capital expenditures' since 2016, and some more as annual IT costs—before refusing to comment further.

Delta's claims were dismissed by CrowdStrike, too. CrowdStrike responded that Delta turned down its - and Microsoft's - offers to help the airline recover following the outage. According to Cheffo, Microsoft's CEO Satya Nadella even emailed Bastian during the crisis and did not get a response.

The escalating conflict between Delta and the tech companies underlines the complexity and high stakes involved in the maintenance and management of critical tech infrastructure in the aviation sector. And as events unfold, attention remains fixed on accountability and strong, dependable technology solutions to ensure that similar disruptions do not occur in the future.

Microsoft and CrowdStrike, a cybersecurity company, have joined forces in a bid to debunk allegations by Delta Air Lines that the two firms were to blame for last month's tech outage that grounded thousands of flights.

Microsoft and CrowdStrike, a cybersecurity company, have joined forces in a bid to debunk allegations by Delta Air Lines that the two firms were to blame for last month's tech outage that grounded thousands of flights. The battle, anchored on accusations from Delta, has just accelerated as each of these tech companies rush to defend their reputation. On Tuesday, Microsoft lawyer Mark Cheffo wrote a letter to Delta attorney David Boies, pushing back on its claims, saying that the airline's core tech system is probably serviced by other technology vendors, not Microsoft Windows. "Your letter and Delta's public comments are incomplete, false, misleading, and damaging to Microsoft and its reputation," Cheffo said. Cheffo further noted the efforts that Microsoft had made to understand why other airlines restored their operations faster than Delta. The remark, in a way, exposes the growing rift between the tech giants and the Atlanta-based airline. Last week, Delta CEO Ed Bastian said a global tech outage—a faulty CrowdStrike upgrade on machines running Microsoft Windows—ran $500 million. He also intimated that lawsuits against those companies responsible could be in order. For its part, the statement reflected a commitment to reliable service—'billions of dollars in IT capital expenditures' since 2016, and some more as annual IT costs—before refusing to comment further. Delta's claims were dismissed by CrowdStrike, too. CrowdStrike responded that Delta turned down its - and Microsoft's - offers to help the airline recover following the outage. According to Cheffo, Microsoft's CEO Satya Nadella even emailed Bastian during the crisis and did not get a response. The escalating conflict between Delta and the tech companies underlines the complexity and high stakes involved in the maintenance and management of critical tech infrastructure in the aviation sector. And as events unfold, attention remains fixed on accountability and strong, dependable technology solutions to ensure that similar disruptions do not occur in the future.

Microsoft, CrowdStrike in a row with Delta over pricey outage fallout

Elon Musk's social media platform X, formerly known as Twitter, has sued a global advertising group and several major companies, including Mars and CVS Health. The lawsuit, filed in a Texas federal court, accuses the World Federation of Advertisers (WFA), Unilever, Orsted, Mars, and CVS Health of unlawfully conspiring to boycott X, leading to substantial revenue losses.

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:103,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1789}">A conspiracy?</h2>

X claims that these advertisers, through the WFA's Global Alliance for Responsible Media initiative, collectively withheld "billions of dollars in ad revenue" from the social media giant.&nbsp;

The lawsuit argues this action was a conspiracy that violated US antitrust law, and claims that the companies acted against their economic interests to harm X.

Also read |&nbsp;<a href="https://www.wionews.com/world/donald-trumps-son-labels-prince-harry-and-meghan-markle-spoiled-apples-hints-at-their-deportation-747843">Trump's son Eric labels Prince Harry and Meghan Markle ‘spoiled apples’, hints at their deportation</a>

Linda Yaccarino, X's chief executive, stated that "people are hurt when the marketplace of ideas is constricted. No small group of people should monopolize what gets monetised".

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:300,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1986}">Why is X suing advertisers now?</h2>

After Musk took over Twitter, now X, in 2022, the company saw a significant decline in its ad revenue.&nbsp;

It has been widely reported that advertisers were wary of their brands appearing next to harmful content that might not have been removed under Musk's leadership.

According to Christine Bartholomew, an antitrust expert and professor at the University at Buffalo's law school, proving unlawful boycotts can be challenging.&nbsp;

In a conversation with Reuters, Bartholomew said that X must show there was an explicit agreement to boycott the platform.

Also read |&nbsp;<a bis_size="{&quot;x&quot;:8,&quot;y&quot;:613,&quot;w&quot;:682,&quot;h&quot;:51,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2299}" href="https://www.wionews.com/world/uk-riots-elon-musk-calls-uk-pm-two-tier-keir-compares-britain-to-soviet-union-747832">UK riots: Elon Musk calls PM 'two-tier Keir', compares Britain to Soviet Union</a>

"Proving this requirement is no small hurdle" if the agreement was implicit, she notes. Even if X does succeed&nbsp;in this near impossible task, it cannot force companies to spend ad revenue on the platform," she added.

Filed in the Northern District of Texas and assigned to US District Judge Reed O'Connor, the lawsuit seeks unspecified damages and a court order to prevent further efforts to withhold ad dollars from X.

The company argues that it has applied brand-safety standards that "meet or exceed" its competitors and meet the Global Alliance for Responsible Media's specifications. It further argues that the alleged boycott made X a "less effective competitor" in the sale of digital advertising.

(With inputs from agencies)

Elon Musk's social media platform X, formerly known as Twitter, has sued a global advertising group and several major companies, including Mars and CVS Health. The lawsuit, filed in a Texas federal court, accuses the World Federation of Advertisers (WFA), Unilever, Orsted, Mars, and CVS Health of unlawfully conspiring to boycott X, leading to substantial revenue losses.

Elon Musk's social media platform X, formerly known as Twitter, has sued a global advertising group and several major companies, including Mars and CVS Health. The lawsuit, filed in a Texas federal court, accuses the World Federation of Advertisers (WFA), Unilever, Orsted, Mars, and CVS Health of unlawfully conspiring to boycott X, leading to substantial revenue losses. A conspiracy? X claims that these advertisers, through the WFA's Global Alliance for Responsible Media initiative, collectively withheld "billions of dollars in ad revenue" from the social media giant. The lawsuit argues this action was a conspiracy that violated US antitrust law, and claims that the companies acted against their economic interests to harm X. Also read | Trump's son Eric labels Prince Harry and Meghan Markle ‘spoiled apples’, hints at their deportation Linda Yaccarino, X's chief executive, stated that "people are hurt when the marketplace of ideas is constricted. No small group of people should monopolize what gets monetised". Why is X suing advertisers now? After Musk took over Twitter, now X, in 2022, the company saw a significant decline in its ad revenue. It has been widely reported that advertisers were wary of their brands appearing next to harmful content that might not have been removed under Musk's leadership. According to Christine Bartholomew, an antitrust expert and professor at the University at Buffalo's law school, proving unlawful boycotts can be challenging. In a conversation with Reuters, Bartholomew said that X must show there was an explicit agreement to boycott the platform. Also read | UK riots: Elon Musk calls PM 'two-tier Keir', compares Britain to Soviet Union "Proving this requirement is no small hurdle" if the agreement was implicit, she notes. Even if X does succeed in this near impossible task, it cannot force companies to spend ad revenue on the platform," she added. Filed in the Northern District of Texas and assigned to US District Judge Reed O'Connor, the lawsuit seeks unspecified damages and a court order to prevent further efforts to withhold ad dollars from X. The company argues that it has applied brand-safety standards that "meet or exceed" its competitors and meet the Global Alliance for Responsible Media's specifications. It further argues that the alleged boycott made X a "less effective competitor" in the sale of digital advertising. (With inputs from agencies)

Elon Musk's X sues Mars, Unilever and other major advertisers, alleges unlawful boycott

According to a report from the Federal Reserve Bank of New York on Tuesday, US household debt ticked higher in the second quarter of 2024, but the overall delinquency rates were steady.

The total debt increased by $109 billion, 0.6 per cent to $17.80 trillion. This is an increase of $3.7 trillion from pre-pandemic levels at the end of 2019.

The report comes at a time when uncertainty rocks the economy.

A decision by the Federal Reserve to increase its benchmark interest rate from 5.25 to 5.50 per cent between March 2022 and July 2023 brought about increased borrowing costs as it looked to combat inflation.

The economy has held up quite well, partly thanks to a high savings rate, but some recent jobs data has stoked fears of a possible economic downturn.

Fed policymakers, who have indicated plans to cut rates starting in September now that inflation is nearing the 2 per cent target, are closely watching indicators of financial stress, including delinquency rates.

The report was reassuring, overall, in showing delinquency rates steady at 3.2 per cent, matching the first quarter and well below the 4.7 per cent rate seen at the end of 2019.

Modest increases in credit card and auto loan delinquency transition rates occurred despite this stability.

Regarding credit cards, approximately 9.1 per cent of their balances transitioned to delinquency, as did 8.0 per cent of the outstanding auto loan balances over the past year.

There was also a small rise in mortgage delinquencies; however, the rates of early delinquency for mortgages remain low compared to their historical levels.

Mortgage balances surged by $77 billion to $12.52 trillion during the quarter.

Auto loan levels were up $10 billion, and credit card borrowing advanced by $27 billion to $1.14 trillion.

Credit card balances were up 5.8 per cent from the previous year. Retail card balances and other consumer loans remained relatively flat, while student loan balances fell $10 billion.

HELOCs advanced from $4 billion to $380 billion for the ninth consecutive quarter.

This is $63 billion higher than Q3 2021, as HELOCs have remained more attractive than cash-out refinancings or new mortgages in a high-interest rate environment.

Of the 1.8 million HELOCs that originated in 2023, about 57 per cent went to borrowers aged 50 and older, with another 24 per cent secured by those in their 40s.

It is said that HELOCs are generally issued only to those with a good credit score.

New mortgage originations remained flat at $374 billion in the second quarter, consistent with the prior four quarters.

This level was way below the peaks reached from Q2 2020 to Q4 2021, a period characterised by very low borrowing costs that had driven a strong housing market.

According to a report from the Federal Reserve Bank of New York on Tuesday, US household debt ticked higher in the second quarter of 2024, but the overall delinquency rates were steady.

According to a report from the Federal Reserve Bank of New York on Tuesday, US household debt ticked higher in the second quarter of 2024, but the overall delinquency rates were steady. The total debt increased by $109 billion, 0.6 per cent to $17.80 trillion. This is an increase of $3.7 trillion from pre-pandemic levels at the end of 2019. The report comes at a time when uncertainty rocks the economy. A decision by the Federal Reserve to increase its benchmark interest rate from 5.25 to 5.50 per cent between March 2022 and July 2023 brought about increased borrowing costs as it looked to combat inflation. The economy has held up quite well, partly thanks to a high savings rate, but some recent jobs data has stoked fears of a possible economic downturn. Fed policymakers, who have indicated plans to cut rates starting in September now that inflation is nearing the 2 per cent target, are closely watching indicators of financial stress, including delinquency rates. The report was reassuring, overall, in showing delinquency rates steady at 3.2 per cent, matching the first quarter and well below the 4.7 per cent rate seen at the end of 2019. Modest increases in credit card and auto loan delinquency transition rates occurred despite this stability. Regarding credit cards, approximately 9.1 per cent of their balances transitioned to delinquency, as did 8.0 per cent of the outstanding auto loan balances over the past year. There was also a small rise in mortgage delinquencies; however, the rates of early delinquency for mortgages remain low compared to their historical levels. Mortgage balances surged by $77 billion to $12.52 trillion during the quarter. Auto loan levels were up $10 billion, and credit card borrowing advanced by $27 billion to $1.14 trillion. Credit card balances were up 5.8 per cent from the previous year. Retail card balances and other consumer loans remained relatively flat, while student loan balances fell $10 billion. HELOCs advanced from $4 billion to $380 billion for the ninth consecutive quarter. This is $63 billion higher than Q3 2021, as HELOCs have remained more attractive than cash-out refinancings or new mortgages in a high-interest rate environment. Of the 1.8 million HELOCs that originated in 2023, about 57 per cent went to borrowers aged 50 and older, with another 24 per cent secured by those in their 40s. It is said that HELOCs are generally issued only to those with a good credit score. New mortgage originations remained flat at $374 billion in the second quarter, consistent with the prior four quarters. This level was way below the peaks reached from Q2 2020 to Q4 2021, a period characterised by very low borrowing costs that had driven a strong housing market.

US household debt edges up, delinquency rates stabilise

ByteDance has added a new tool to its spectrum of offered software: turning text prompts into videos.

It allows entry into a new market and joining a long list of companies, including OpenAI, maker of ChatGPT.

A new tool, Jimeng AI—developed by ByteDance's Faceu Technology—is now available to Chinese users via the App Store, following its release on Android on July 31.

It's reportedly the latest in a series of similar text-to-video technologies launched by several Chinese tech companies.

The move by ByteDance comes at a time when the Chinese tech sector has been witnessing a chain of recent developments, right after another major video app from China, Kuaishou, opened up its Kling AI text-to-video model to global users late last month.

Its beta version requires only an email address to sign up.

Meanwhile, a Chinese AI startup named Zhipu AI released a video generation model last month. Another startup, Shengshu, then rolled out the Vidu app weeks later.

Faceu Technology belongs to the Jianying division of ByteDance, which also owns the popular video editing app CapCut.

The user explained, "Jimeng AI offers different subscription options: $9.65 a month, $11.04 for a single month or $92.08 annually. All plans come with about 2,050 images or 168 AI videos a month.".

ByteDance has added a new tool to its spectrum of offered software: turning text prompts into videos. It allows entry into a new market and joining a long list of companies, including OpenAI, maker of ChatGPT.

ByteDance has added a new tool to its spectrum of offered software: turning text prompts into videos. It allows entry into a new market and joining a long list of companies, including OpenAI, maker of ChatGPT. A new tool, Jimeng AI—developed by ByteDance's Faceu Technology—is now available to Chinese users via the App Store, following its release on Android on July 31. It's reportedly the latest in a series of similar text-to-video technologies launched by several Chinese tech companies. The move by ByteDance comes at a time when the Chinese tech sector has been witnessing a chain of recent developments, right after another major video app from China, Kuaishou, opened up its Kling AI text-to-video model to global users late last month. Its beta version requires only an email address to sign up. Meanwhile, a Chinese AI startup named Zhipu AI released a video generation model last month. Another startup, Shengshu, then rolled out the Vidu app weeks later. Faceu Technology belongs to the Jianying division of ByteDance, which also owns the popular video editing app CapCut. The user explained, "Jimeng AI offers different subscription options: $9.65 a month, $11.04 for a single month or $92.08 annually. All plans come with about 2,050 images or 168 AI videos a month.".

ByteDance expands into text-to-video market with new AI tool

The US judge ruled on Monday that Google broke antitrust laws by spending billions of dollars on creating an illegal monopoly for becoming the default search engine all over the world.

This can be counted as a major victory for federal authorities in their battle to challenge Big Tech's market dominance.

According to the summary, US District Judge Amit Mehta of Washington, D.C., says that "Google is a monopolist and has taken steps to sustain its monopoly."

Google now has some 90 per cent of the internet search market and 95 per cent of the smartphone search market.

The ruling clears the path to a second trial to determine the remedies, including breaking up Google's parent company, Alphabet.

That would dramatically remake the landscape for online advertising that, for years, Google has dominated.

The ruling is seen as an open-ended passport for hawks in US anti-trust enforcement against Big Tech—a sector now under scrutiny from both flanks of the political spectrum.

US Attorney General Merrick Garland hailed the verdict as historic for the American people, touting that no company is above the law.

On these lines, White House Press Secretary Karine Jean-Pierre spun the pro-competition ruling as a win, stressing how Americans deserve an internet that is free, fair, and open to competition.

Alphabet said it would appeal against the ruling. The business said the ruling recognised Google had developed the best search engine but unfairly prevented it from making it easily available to consumers.

Alphabet shares slid 4.5 per cent on Monday as part of a broader slide in tech stocks following recession fears.

In 2023, Google advertising accounted for 77 per cent of Alphabet's overall sales.

He pointed out that it had paid out $26.3 billion in 2021 alone to ensure that its search engine remained the default on smartphones and browsers.

He noted the worth of default search settings. At that rate, losing such defaults would have a big impact on Google's revenues.

For example, if it lost the Safari default, there would be an estimated major drop in queries and billions lost in revenues.

It is the first major ruling in several cases alleging Big Tech monopolies. The Trump administration filed the Google search case, the first such case in a generation.

Federal antitrust regulators also have sued Meta Platforms, Amazon, and Apple, alleging the tech giants maintain illegal monopolies.

These cases began under former President Donald Trump's administration and enjoy robust bipartisan support for antitrust enforcement.

According to Senator Amy Klobuchar of Minnesota, the Democrat who chairs the Senate Judiciary Committee's antitrust subcommittee, the case moving through two administrations showed strong bipartisan support for antitrust enforcement.

She said that it was a big victory, saying further that antitrust enforcement is the key to keeping competition alive. She termed Google as a rampant monopolist, saying this ruling was important for the American people.

The implications for Google and the wider tech industry remain as the legal process continues, with potential appeals to the US Court of Appeals and the US Supreme Court.

Forcing Google to divest its search business would cut Alphabet from its largest source of revenue. That could prove harmful if it's no longer able to strike exclusive default agreements.

Per Emarketer senior analyst Evelyn Mitchell-Wolf, there would be a delay in any immediate effects on consumers if this were to go through a protracted legal process.

The US judge ruled on Monday that Google broke antitrust laws by spending billions of dollars on creating an illegal monopoly for becoming the default search engine all over the world.

The US judge ruled on Monday that Google broke antitrust laws by spending billions of dollars on creating an illegal monopoly for becoming the default search engine all over the world. This can be counted as a major victory for federal authorities in their battle to challenge Big Tech's market dominance. According to the summary, US District Judge Amit Mehta of Washington, D.C., says that "Google is a monopolist and has taken steps to sustain its monopoly." Google now has some 90 per cent of the internet search market and 95 per cent of the smartphone search market. The ruling clears the path to a second trial to determine the remedies, including breaking up Google's parent company, Alphabet. That would dramatically remake the landscape for online advertising that, for years, Google has dominated. The ruling is seen as an open-ended passport for hawks in US anti-trust enforcement against Big Tech—a sector now under scrutiny from both flanks of the political spectrum. US Attorney General Merrick Garland hailed the verdict as historic for the American people, touting that no company is above the law. On these lines, White House Press Secretary Karine Jean-Pierre spun the pro-competition ruling as a win, stressing how Americans deserve an internet that is free, fair, and open to competition. Alphabet said it would appeal against the ruling. The business said the ruling recognised Google had developed the best search engine but unfairly prevented it from making it easily available to consumers. Alphabet shares slid 4.5 per cent on Monday as part of a broader slide in tech stocks following recession fears. In 2023, Google advertising accounted for 77 per cent of Alphabet's overall sales. He pointed out that it had paid out $26.3 billion in 2021 alone to ensure that its search engine remained the default on smartphones and browsers. He noted the worth of default search settings. At that rate, losing such defaults would have a big impact on Google's revenues. For example, if it lost the Safari default, there would be an estimated major drop in queries and billions lost in revenues. It is the first major ruling in several cases alleging Big Tech monopolies. The Trump administration filed the Google search case, the first such case in a generation. Federal antitrust regulators also have sued Meta Platforms, Amazon, and Apple, alleging the tech giants maintain illegal monopolies. These cases began under former President Donald Trump's administration and enjoy robust bipartisan support for antitrust enforcement. According to Senator Amy Klobuchar of Minnesota, the Democrat who chairs the Senate Judiciary Committee's antitrust subcommittee, the case moving through two administrations showed strong bipartisan support for antitrust enforcement. She said that it was a big victory, saying further that antitrust enforcement is the key to keeping competition alive. She termed Google as a rampant monopolist, saying this ruling was important for the American people. The implications for Google and the wider tech industry remain as the legal process continues, with potential appeals to the US Court of Appeals and the US Supreme Court. Forcing Google to divest its search business would cut Alphabet from its largest source of revenue. That could prove harmful if it's no longer able to strike exclusive default agreements. Per Emarketer senior analyst Evelyn Mitchell-Wolf, there would be a delay in any immediate effects on consumers if this were to go through a protracted legal process.

Judge rules Google violated antitrust laws, paving way for potential breakup

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday.&nbsp;

Japanese stocks powered higher, leading gains in Asia. They are covering part of the ground lost in Monday's worldwide plunge.&nbsp;

A series of small dips and Monday's wild selloff in global stocks erased $6.4 trillion of investor wealth in three weeks. To put that loss into context, the investor wealth wipeout is double the annual GDP of India.&nbsp;

Investors may finally be able to take a breather after a wild day, but markets are likely to face more volatility. At one point on Monday, the wall street's "fear gauge" hit a new high in data going back to 1990.&nbsp;

Japan's Nikkei rose over 8 per cent in early trading following a 12.4 per cent decline on Monday. The previous session also marked the worst day for Japanese stocks since 1987's Black Monday.&nbsp;

Japan's benchmarks rose by about 11 per cent following a more than 12 per cent plunge on Monday.&nbsp;

South Korea's index surged over 3 per cent. Stocks in China's Mainland, Hong Kong and Australia were mostly flat. Overnight, the S&amp;P 500 pared some of its losses towards the end of the session on Monday. However, the index still closed 3 per cent lower to mark its worst decline in over two years. The tech-heavy Nasdaq had the worst opening since the financial crisis in 2008.&nbsp;

US Big tech firms, widely known as the 'magnificent seven', lost nearly $1 trillion. However, US Stock futures point to gains when trading starts later Tuesday.&nbsp;

Speculation of an impending US Recession weighed on global stocks. The repricing was so severe that the swap market had predicted a 60 per cent probability of an emergency rate cut by the fed in the coming week. However, those chances faded overnight.&nbsp;

In commodities, following a three-day dip, oil prices rose from a seven-month low as optimism in stock futures suggested a recovery.&nbsp;

The shutdown of Libya's largest field redirected global attention to West Asia and boosted crude.&nbsp;

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday. Japanese stocks powered higher, leading gains in Asia.

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday. Japanese stocks powered higher, leading gains in Asia. They are covering part of the ground lost in Monday's worldwide plunge. A series of small dips and Monday's wild selloff in global stocks erased $6.4 trillion of investor wealth in three weeks. To put that loss into context, the investor wealth wipeout is double the annual GDP of India. Investors may finally be able to take a breather after a wild day, but markets are likely to face more volatility. At one point on Monday, the wall street's "fear gauge" hit a new high in data going back to 1990. Japan's Nikkei rose over 8 per cent in early trading following a 12.4 per cent decline on Monday. The previous session also marked the worst day for Japanese stocks since 1987's Black Monday. Japan's benchmarks rose by about 11 per cent following a more than 12 per cent plunge on Monday. South Korea's index surged over 3 per cent. Stocks in China's Mainland, Hong Kong and Australia were mostly flat. Overnight, the S&P 500 pared some of its losses towards the end of the session on Monday. However, the index still closed 3 per cent lower to mark its worst decline in over two years. The tech-heavy Nasdaq had the worst opening since the financial crisis in 2008. US Big tech firms, widely known as the 'magnificent seven', lost nearly $1 trillion. However, US Stock futures point to gains when trading starts later Tuesday. Speculation of an impending US Recession weighed on global stocks. The repricing was so severe that the swap market had predicted a 60 per cent probability of an emergency rate cut by the fed in the coming week. However, those chances faded overnight. In commodities, following a three-day dip, oil prices rose from a seven-month low as optimism in stock futures suggested a recovery. The shutdown of Libya's largest field redirected global attention to West Asia and boosted crude.

Global markets rally at open after sliding on Monday

US stock index futures plunged on Monday, with Nasdaq futures down almost 4 per cent, following warnings of a possible recession in the United States that sent shock waves across global markets.

This was after sharp losses in Asian and European stock markets and a flight to safe-haven assets like bonds - which saw their yields plunge. 
Steep sell-offs in all major mega-cap and growth stocks pre-market trading had occurred, which propelled the indexes to record highs earlier this year.

Apple dropped 7.3 per cent after Berkshire Hathaway significantly cut its stake in the iPhone maker by almost 50 per cent.

That could indicate the famous investor is becoming wary of the broader US economy—or simply warier of stock market valuations that have risen too far.

Apart from this, Nvidia fell 6.8 per cent over reports of delays in launching its new artificial intelligence chips on account of design flaws.

At 4:33 a.m. ET, Dow e-minis were down 613 points, or 1.54 per cent; S&amp;P 500 e-minis lost 117.5 points, or 2.19 per cent, while Nasdaq 100 e-minis sank 644.75 points, or 3.47 per cent.

Recent economic indicators have only exacerbated market concerns. Weak jobs reports and manufacturing activity at a glance, in conjunction with grim forecasts from major technology firms, moved the Nasdaq 100 and Nasdaq Composite into correction last week.

This bad job number will also trigger the "Sahm Rule," a historically reliable indicator of recession.

The latest data has forced traders to price in a 91.5 per cent chance the US Federal Reserve will cut benchmark interest rates by 50 basis points at its September meeting, with expectations year-end rates will drop to 4-4.25 per cent from the current 5.25 per cent-5.50 per cent, according to the CME's FedWatch Tool.

Reflecting this, top Wall Street brokerages have also revised their Fed rate projections for 2024 as well, with the central bank seen to implement more aggressive policy easing.

Although Ronald Temple, the chief market strategist at Lazard, wondered if the Fed would begin the easing process by 50 basis points, he said comparable data in the next seven weeks would compel the Fed to act in no uncertain terms.

This week, a number of Federal Reserve officials are set to speak about the economy and monetary policy. Their words may help assuage investors' fears about interest rate cuts on the horizon.

Notable speeches include Chicago Fed President Austan Goolsbee at 8:30 a.m. ET and San Francisco Fed President Mary Daly later in the day. Small-cap index futures plummeted as well, with Russell 2000 futures off 3.7 per cent. The CBOE Volatility Index, Wall Street's so-called "fear gauge," shot above its long-term average of 20 points last week and hit 35.19, the highest since May 2022.

The stock market pounded crypto-linked stocks, with the world's biggest cryptocurrency, Bitcoin, falling to a five-month low.

This translated into heavy losses for connected stocks: Coinbase Global was down 9.9 per cent, US-listed shares of Bitfarms fell by 10.1 per cent, MicroStrategy slid 12.8 per cent, and Riot Platforms declined by 9.8 per cent.

US stock index futures plunged on Monday, with Nasdaq futures down almost 4 per cent, following warnings of a possible recession in the United States that sent shock waves across global markets.

US stock index futures plunged on Monday, with Nasdaq futures down almost 4 per cent, following warnings of a possible recession in the United States that sent shock waves across global markets. This was after sharp losses in Asian and European stock markets and a flight to safe-haven assets like bonds - which saw their yields plunge. Steep sell-offs in all major mega-cap and growth stocks pre-market trading had occurred, which propelled the indexes to record highs earlier this year. Apple dropped 7.3 per cent after Berkshire Hathaway significantly cut its stake in the iPhone maker by almost 50 per cent. That could indicate the famous investor is becoming wary of the broader US economy—or simply warier of stock market valuations that have risen too far. Apart from this, Nvidia fell 6.8 per cent over reports of delays in launching its new artificial intelligence chips on account of design flaws. At 4:33 a.m. ET, Dow e-minis were down 613 points, or 1.54 per cent; S&P 500 e-minis lost 117.5 points, or 2.19 per cent, while Nasdaq 100 e-minis sank 644.75 points, or 3.47 per cent. Recent economic indicators have only exacerbated market concerns. Weak jobs reports and manufacturing activity at a glance, in conjunction with grim forecasts from major technology firms, moved the Nasdaq 100 and Nasdaq Composite into correction last week. This bad job number will also trigger the "Sahm Rule," a historically reliable indicator of recession. The latest data has forced traders to price in a 91.5 per cent chance the US Federal Reserve will cut benchmark interest rates by 50 basis points at its September meeting, with expectations year-end rates will drop to 4-4.25 per cent from the current 5.25 per cent-5.50 per cent, according to the CME's FedWatch Tool. Reflecting this, top Wall Street brokerages have also revised their Fed rate projections for 2024 as well, with the central bank seen to implement more aggressive policy easing. Although Ronald Temple, the chief market strategist at Lazard, wondered if the Fed would begin the easing process by 50 basis points, he said comparable data in the next seven weeks would compel the Fed to act in no uncertain terms. This week, a number of Federal Reserve officials are set to speak about the economy and monetary policy. Their words may help assuage investors' fears about interest rate cuts on the horizon. Notable speeches include Chicago Fed President Austan Goolsbee at 8:30 a.m. ET and San Francisco Fed President Mary Daly later in the day. Small-cap index futures plummeted as well, with Russell 2000 futures off 3.7 per cent. The CBOE Volatility Index, Wall Street's so-called "fear gauge," shot above its long-term average of 20 points last week and hit 35.19, the highest since May 2022. The stock market pounded crypto-linked stocks, with the world's biggest cryptocurrency, Bitcoin, falling to a five-month low. This translated into heavy losses for connected stocks: Coinbase Global was down 9.9 per cent, US-listed shares of Bitfarms fell by 10.1 per cent, MicroStrategy slid 12.8 per cent, and Riot Platforms declined by 9.8 per cent.

US stock futures plunge as recession fears grip global markets

Apple and Nvidia led a plunge in tech shares on Monday, driven by worries over a US recession and a Berkshire Hathaway move to cut its stake in Apple.

The fall is a sharp reversal after months of technology sector rise. 
The shares of the so-called "Magnificent Seven"—Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla—tumbled as far as 12.2 per cent in premarket trading.

This rout in the marketplace had a spillover effect, wiping out a total of nearly $1 trillion in market value from these companies.

Chip stocks, some of the big winners in Wall Street's rush to invest in companies hitched to the AI wagon, also dropped sharply, with declines of up to 10.3 per cent in Advanced Micro Devices, Intel, Super Micro Computer, and Broadcom.

The widespread selling came after Friday's soft US payrolls report, which nudged investors toward shelter and ratcheted up expectations the Federal Reserve could soon lower interest rates to bolster economic growth.

Berkshire Hathaway said over the weekend it had cut its stake in Apple, its biggest holding, in half, raising concerns about the prospects ahead for the technology sector.

Nvidia shares were also hit by a report that the launch of its new AI chips could be pushed back three months due to design flaws.

If there is a delay, this could affect important customers such as Meta, Google's Alphabet, and Microsoft.

Large technology stocks, which had been driving up the gains on Wall Street for over a year, are under pressure.

This is partly due to indications that the payoff from heavy investments in artificial intelligence may not materialise as soon as some investors hoped.

Reports from Amazon, Microsoft, and Alphabet, the three largest cloud-computing service providers, crushed expectations of seeing AI investments translate quickly into heavy growth.

Dan Coatsworth, an investment analyst at AJ Bell, said: "Expectations have arguably become too high for the so-called Magnificent Seven group of companies. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, out come the knives". 
This upheaval in technology reflects more comprehensive market anxieties as investors struggle to understand mixed signs from the economy while simultaneously trying to reassess their strategies amid rising fears of recession.

Apple and Nvidia led a plunge in tech shares on Monday, driven by worries over a US recession and a Berkshire Hathaway move to cut its stake in Apple. The fall is a sharp reversal after months of technology sector rise.

Apple and Nvidia led a plunge in tech shares on Monday, driven by worries over a US recession and a Berkshire Hathaway move to cut its stake in Apple. The fall is a sharp reversal after months of technology sector rise. The shares of the so-called "Magnificent Seven"—Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla—tumbled as far as 12.2 per cent in premarket trading. This rout in the marketplace had a spillover effect, wiping out a total of nearly $1 trillion in market value from these companies. Chip stocks, some of the big winners in Wall Street's rush to invest in companies hitched to the AI wagon, also dropped sharply, with declines of up to 10.3 per cent in Advanced Micro Devices, Intel, Super Micro Computer, and Broadcom. The widespread selling came after Friday's soft US payrolls report, which nudged investors toward shelter and ratcheted up expectations the Federal Reserve could soon lower interest rates to bolster economic growth. Berkshire Hathaway said over the weekend it had cut its stake in Apple, its biggest holding, in half, raising concerns about the prospects ahead for the technology sector. Nvidia shares were also hit by a report that the launch of its new AI chips could be pushed back three months due to design flaws. If there is a delay, this could affect important customers such as Meta, Google's Alphabet, and Microsoft. Large technology stocks, which had been driving up the gains on Wall Street for over a year, are under pressure. This is partly due to indications that the payoff from heavy investments in artificial intelligence may not materialise as soon as some investors hoped. Reports from Amazon, Microsoft, and Alphabet, the three largest cloud-computing service providers, crushed expectations of seeing AI investments translate quickly into heavy growth. Dan Coatsworth, an investment analyst at AJ Bell, said: "Expectations have arguably become too high for the so-called Magnificent Seven group of companies. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, out come the knives". This upheaval in technology reflects more comprehensive market anxieties as investors struggle to understand mixed signs from the economy while simultaneously trying to reassess their strategies amid rising fears of recession.

Tech stocks plunge amid US recession fears

Elon Musk filed another lawsuit against OpenAI and its chief executive, Sam Altman, over concerns that the company is prioritising profits and business interests over public welfare.

The move is the most recent attempt by Musk to counter an organisation he had helped establish back in 2015.

According to Musk, right after OpenAI's technology succeeded in revolutionising AI that is generative, Altman turned the narrative around and started cashing on it.

The suit also seeks relief in the form of a judicial declaration that OpenAI's license to Microsoft to use its AI models is void and of no force and effect.

He argues that OpenAI's language models are outside the scope of the company's partnership with Microsoft.

In a licensing deal, Microsoft invested billions of dollars into OpenAI in return for the right to utilise its large language models for computing services.

Neither OpenAI nor Musk replied in time to Reuters' request for comments.

In June, Musk dropped an earlier lawsuit against OpenAI and Altman for deviating from the startup's mission at the time of its founding, which was to create AI for the betterment of humanity.

Musk's attorneys had asked the California state court to dismiss the suit, which had been filed in February, without specifying the reason.

The February lawsuit alleged that OpenAI's founders had agreed early on to develop AI in a way that would "benefit humanity," opening renewed legal action by Musk reflects his continued unease over the direction OpenAI has gone since its founding.

Elon Musk filed another lawsuit against OpenAI and its chief executive, Sam Altman, over concerns that the company is prioritising profits and business interests over public welfare.

Elon Musk filed another lawsuit against OpenAI and its chief executive, Sam Altman, over concerns that the company is prioritising profits and business interests over public welfare. The move is the most recent attempt by Musk to counter an organisation he had helped establish back in 2015. According to Musk, right after OpenAI's technology succeeded in revolutionising AI that is generative, Altman turned the narrative around and started cashing on it. The suit also seeks relief in the form of a judicial declaration that OpenAI's license to Microsoft to use its AI models is void and of no force and effect. He argues that OpenAI's language models are outside the scope of the company's partnership with Microsoft. In a licensing deal, Microsoft invested billions of dollars into OpenAI in return for the right to utilise its large language models for computing services. Neither OpenAI nor Musk replied in time to Reuters' request for comments. In June, Musk dropped an earlier lawsuit against OpenAI and Altman for deviating from the startup's mission at the time of its founding, which was to create AI for the betterment of humanity. Musk's attorneys had asked the California state court to dismiss the suit, which had been filed in February, without specifying the reason. The February lawsuit alleged that OpenAI's founders had agreed early on to develop AI in a way that would "benefit humanity," opening renewed legal action by Musk reflects his continued unease over the direction OpenAI has gone since its founding.

Elon Musk revives lawsuit against OpenAI and CEO Sam Altman