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A bipartisan group of US lawmakers has introduced a bill aimed at addressing national security concerns surrounding the popular video-sharing app TikTok, which is owned by the Chinese tech giant ByteDance.

The proposed legislation, if passed, would require ByteDance to sell off TikTok within six months or face a ban in the United States. However, the bill would not authorise any enforcement against individual users of the affected app.

According to a recent BBC report, lawmaker believe that apps like TikTok pose an unacceptable risk to US national security, as data collected by the app could potentially end up in the hands of the Chinese government.

As per a Reuters report, Representative Mike Gallagher, the Republican chair of the House of Representatives' select China committee, has stressed the importance of national security in addressing TikTok's ownership, stating, "This is my message to TikTok: break up with the Chinese Communist Party or lose access to your American users."&nbsp;

Gallagher has argued that allowing a platform owned by a foreign adversary that aims to control dominant media platforms in the US is untenable.

TikTok, on the other hand, has opposed the proposed legislation, labelling it as an outright ban. A company spokesperson told BBC, "This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they rely on to grow and create jobs."&nbsp;

The company has previously contested against divestment, asserting that a change in ownership would not impose new restrictions on data use.

As per a Reuters report, the White House National Security Council has expressed support for the bill, calling it "an important and welcome step" in addressing national security concerns related to tech services operating in the United States.

The Biden administration has indicated its willingness to collaborate with Congress to strengthen the legislation further. However, the American Civil Liberties Union (ACLU) has raised concerns about the bill's constitutionality, criticising lawmakers for potentially trading First Amendment rights for political gains during an election year.

The proposed legislation, which would require companion legislation in the Senate, is set to be considered at an Energy and Commerce Committee hearing.

Committee chair Cathy McMorris Rodgers has argued for the need to prevent foreign adversaries, such as China, from surveilling and manipulating the American people through online applications like TikTok.

Regardless of the popularity of the app, getting the legislation approved in an election year may prove challenging. Last month, President Biden's re-election campaign even joined TikTok, indicating the app's widespread appeal.

TikTok challenging 'Gatekeeper' status under EU digital markets Act

Meanwhile, TikTok has joined Meta in appealing against the "gatekeeper" designation imposed by the European Union's Digital Markets Act (DMA).

In its appeal, TikTok has argued that the "gatekeeper" designation undermines the DMA's intended goal by shielding established gatekeepers from emerging competitors like itself.

The video-sharing platform, which has been operational in Europe for just over five years, claims to pose a challenge to fixed platform businesses.

TikTok has disputed its classification as a gatekeeper, citing its revenue in the European Economic Area, which falls below the DMA's threshold of approximately $8 billion per annum.

Under the provisions of the DMA, companies with over 45 million monthly active users and a market capitalisation exceeding $81 billion are classified as gatekeepers offering core platform services.

TikTok has challenged the validity of its classification under the DMA, highlighting that no market investigation was conducted regarding its designation by the European Commission.

A bipartisan group of US lawmakers has introduced a bill aimed at addressing national security concerns surrounding the popular video-sharing app TikTok, which is owned by the Chinese tech giant ByteDance.

A bipartisan group of US lawmakers has introduced a bill aimed at addressing national security concerns surrounding the popular video-sharing app TikTok, which is owned by the Chinese tech giant ByteDance. The proposed legislation, if passed, would require ByteDance to sell off TikTok within six months or face a ban in the United States. However, the bill would not authorise any enforcement against individual users of the affected app. According to a recent BBC report, lawmaker believe that apps like TikTok pose an unacceptable risk to US national security, as data collected by the app could potentially end up in the hands of the Chinese government. As per a Reuters report, Representative Mike Gallagher, the Republican chair of the House of Representatives' select China committee, has stressed the importance of national security in addressing TikTok's ownership, stating, "This is my message to TikTok: break up with the Chinese Communist Party or lose access to your American users." Gallagher has argued that allowing a platform owned by a foreign adversary that aims to control dominant media platforms in the US is untenable. TikTok, on the other hand, has opposed the proposed legislation, labelling it as an outright ban. A company spokesperson told BBC, "This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they rely on to grow and create jobs." The company has previously contested against divestment, asserting that a change in ownership would not impose new restrictions on data use. As per a Reuters report, the White House National Security Council has expressed support for the bill, calling it "an important and welcome step" in addressing national security concerns related to tech services operating in the United States. The Biden administration has indicated its willingness to collaborate with Congress to strengthen the legislation further. However, the American Civil Liberties Union (ACLU) has raised concerns about the bill's constitutionality, criticising lawmakers for potentially trading First Amendment rights for political gains during an election year. The proposed legislation, which would require companion legislation in the Senate, is set to be considered at an Energy and Commerce Committee hearing. Committee chair Cathy McMorris Rodgers has argued for the need to prevent foreign adversaries, such as China, from surveilling and manipulating the American people through online applications like TikTok. Regardless of the popularity of the app, getting the legislation approved in an election year may prove challenging. Last month, President Biden's re-election campaign even joined TikTok, indicating the app's widespread appeal. TikTok challenging 'Gatekeeper' status under EU digital markets Act Meanwhile, TikTok has joined Meta in appealing against the "gatekeeper" designation imposed by the European Union's Digital Markets Act (DMA). In its appeal, TikTok has argued that the "gatekeeper" designation undermines the DMA's intended goal by shielding established gatekeepers from emerging competitors like itself. The video-sharing platform, which has been operational in Europe for just over five years, claims to pose a challenge to fixed platform businesses. TikTok has disputed its classification as a gatekeeper, citing its revenue in the European Economic Area, which falls below the DMA's threshold of approximately $8 billion per annum. Under the provisions of the DMA, companies with over 45 million monthly active users and a market capitalisation exceeding $81 billion are classified as gatekeepers offering core platform services. TikTok has challenged the validity of its classification under the DMA, highlighting that no market investigation was conducted regarding its designation by the European Commission.

US lawmakers introduce bill targeting TikTok over national security concerns

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. <o:p></o:p>

According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support.<o:p></o:p>

"Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. <o:p></o:p>

The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves.<o:p></o:p>

While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. <o:p></o:p>

Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets.<o:p></o:p>

Aisha Ghaus Pasha, a former junior finance minister and economist, &nbsp;said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. <o:p></o:p>

Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation.<o:p></o:p>

Sharif has yet to appoint a new finance minister to lead the IMF negotiations.<o:p></o:p>

Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments.<o:p></o:p>

Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. <o:p></o:p>

Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April.

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support. "Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves. While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets. Aisha Ghaus Pasha, a former junior finance minister and economist, said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation. Sharif has yet to appoint a new finance minister to lead the IMF negotiations. Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments. Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth. (With inputs from Bloomberg)

Pakistan's prime minister initiates talks with IMF for crucial loan renewal

An Chinese former software engineer from Google has been charged in the US for allegedly stealing trade secrets related to artificial intelligence (AI) while working secretly for two Chinese companies, reports said on Thursday.<o:p></o:p>

The charges&nbsp;filed in the state of California accuse Linwei Ding, also known as Leon Ding,&nbsp;of stealing over 500 confidential files, potentially putting the infrastructure of Google's supercomputing data centres at risk.<o:p></o:p>

Ding joined Google in 2019 with responsibilities that included the development of AI software. <o:p></o:p>

According to the indictment, he began uploading information from Google's network to his personal Google account in May 2022, continuing the unauthorised uploads periodically for a year. <o:p></o:p>

During this time he is said to have spent several months working for Beijing Rongshu Lianzhi Technology, a start-up tech company in China, and started his own AI-focused tech firm, Shanghai Zhisuan Technology, where he served as the CEO. <o:p></o:p>

The indictment reveals that Ding never disclosed his affiliations with the Chinese companies to Google, violating the company's policies. <o:p></o:p>

He applied to a China-based organisation to support his business, presenting it at an investor conference in China in November 2023. <o:p></o:p>

Google became suspicious when Ding attempted to upload more files while in China, claiming it was to provide proof of his work for the tech giant. <o:p></o:p>

Upon his return to the US, Ding resigned from Google, and the company, unaware of his activities, suspended his access. <o:p></o:p>

Google later discovered the unauthorised uploads, prompting them to alert the authorities.<o:p></o:p>

According to the BBC, José Castañeda, a spokesperson for Google, assured that the company has "strict safeguards" in place to prevent the theft of confidential information and trade secrets. <o:p></o:p>

He mentioned that Google promptly reported the alleged wrongdoing to the authorities. US Attorney General Merrick Garland emphasised that Ding's actions aimed at enriching himself by covertly working for companies seeking an advantage in the AI technology race. <o:p></o:p>

FBI Director Christopher Wray stated that this case illustrates the lengths some Chinese companies go to steal American innovation.<o:p></o:p>

The Justice Department announced the charges against Ding at an American Bar Association Conference in San Francisco, with Attorney General Merrick Garland highlighting the severity of Chinese economic espionage and the national security concerns tied to advancements in AI. <o:p></o:p>

Google confirmed that Ding had stolen numerous documents, leading to the referral of the case to law enforcement. <o:p></o:p>

AP News reported that each of the four counts of federal trade secret theft against Ding is punishable by up to 10 years in prison.<o:p></o:p>

The case underscores the high-stakes competition in the field of high technology, where artificial intelligence plays a pivotal role. <o:p></o:p>

Foreign adversaries' potential use of AI technologies to negatively impact the United States has been a growing concern, prompting the Justice Department to prioritise AI enforcement.<o:p></o:p>

An Chinese former software engineer from Google has been charged in the US for allegedly stealing trade secrets related to artificial intelligence (AI) while working secretly for two Chinese companies, reports said on Thursday.

An Chinese former software engineer from Google has been charged in the US for allegedly stealing trade secrets related to artificial intelligence (AI) while working secretly for two Chinese companies, reports said on Thursday. The charges filed in the state of California accuse Linwei Ding, also known as Leon Ding, of stealing over 500 confidential files, potentially putting the infrastructure of Google's supercomputing data centres at risk. Ding joined Google in 2019 with responsibilities that included the development of AI software. According to the indictment, he began uploading information from Google's network to his personal Google account in May 2022, continuing the unauthorised uploads periodically for a year. During this time he is said to have spent several months working for Beijing Rongshu Lianzhi Technology, a start-up tech company in China, and started his own AI-focused tech firm, Shanghai Zhisuan Technology, where he served as the CEO. The indictment reveals that Ding never disclosed his affiliations with the Chinese companies to Google, violating the company's policies. He applied to a China-based organisation to support his business, presenting it at an investor conference in China in November 2023. Google became suspicious when Ding attempted to upload more files while in China, claiming it was to provide proof of his work for the tech giant. Upon his return to the US, Ding resigned from Google, and the company, unaware of his activities, suspended his access. Google later discovered the unauthorised uploads, prompting them to alert the authorities. According to the BBC, José Castañeda, a spokesperson for Google, assured that the company has "strict safeguards" in place to prevent the theft of confidential information and trade secrets. He mentioned that Google promptly reported the alleged wrongdoing to the authorities. US Attorney General Merrick Garland emphasised that Ding's actions aimed at enriching himself by covertly working for companies seeking an advantage in the AI technology race. FBI Director Christopher Wray stated that this case illustrates the lengths some Chinese companies go to steal American innovation. The Justice Department announced the charges against Ding at an American Bar Association Conference in San Francisco, with Attorney General Merrick Garland highlighting the severity of Chinese economic espionage and the national security concerns tied to advancements in AI. Google confirmed that Ding had stolen numerous documents, leading to the referral of the case to law enforcement. AP News reported that each of the four counts of federal trade secret theft against Ding is punishable by up to 10 years in prison. The case underscores the high-stakes competition in the field of high technology, where artificial intelligence plays a pivotal role. Foreign adversaries' potential use of AI technologies to negatively impact the United States has been a growing concern, prompting the Justice Department to prioritise AI enforcement.

Former Google engineer faces charges for stealing AI secrets for Chinese companies

Apple encountered a significant setback in China as its iPhone sales plummeted by 24 per cent in the initial six weeks of 2024, as revealed by a report by research firm Counterpoint. <o:p></o:p>

Huawei, Apple's staunch competitor, witnessed a contrasting surge, with unit sales skyrocketing by 64 per cent during the same period. <o:p></o:p>

This contrast raises concerns about Apple's market standing and potential demand slowdown, with its share in the Chinese smartphone market slipping to 15.7 per cent, securing the fourth position.<o:p></o:p>

Counterpoint's report highlights a challenging landscape for Apple, attributing its decline to heightened competition from domestic rivals, particularly Huawei, which now claims the second spot in the Chinese market with a market share of 16.5 per cent. <o:p></o:p>

Apple's response to the competition includes recent subsidies for certain iPhone models and prior discounts, reflecting aggressive strategies while the overall smartphone market in China, shrank by 7 per cent.<o:p></o:p>

Counterpoint's Senior Analyst, Mengmeng Zhang, emphasises that Apple is grappling with a challenging scenario, squeezed in the middle due to aggressive pricing from competitors like Oppo, Vivo, and Xiaomi. <o:p></o:p>

The report notes that Huawei's resurgence in premium smartphone sales, especially with the Mate 60 series, has contributed to its remarkable growth despite previous struggles under US sanctions. <o:p></o:p>

Honor, Huawei's spin-off, is the only other brand in the top five to witness sales growth during the first six weeks of the year, rising by 2 per cent.<o:p></o:p>

The report indicates Apple's market share drop from 19 per cent to 15.7 per cent, slipping to the fourth position from second place a year ago. <o:p></o:p>

Meanwhile, Huawei's ascent to the second position underlines its successful rebound. <o:p></o:p>

Vivo, despite a 15 per cent sales decrease, retains its position as China's top-selling smartphone maker. <o:p></o:p>

Apple's proactive measures, including discounts and subsidies, aimed to counter the decline and boost sales amid the challenging market conditions in China.<o:p></o:p>

Apple's struggle in the Chinese market is evident in its share prices, which went down by 1.6 per cent in premarket trading, and an overall 10 per cent loss in value this year. <o:p></o:p>

The report underscores Huawei's resilience and unexpected success in overcoming challenges, including US sanctions, to dominate the Chinese premium smartphone market. <o:p></o:p>

The outcome of Apple's aggressive strategies and competition in China will likely impact its revenue performance, potentially influencing investor confidence.<o:p></o:p>

Apple shares saw a decline of 2.8 per cent in New York trade following reports of its falling revenue.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Apple encountered a significant setback in China as its iPhone sales plummeted by 24 per cent in the initial six weeks of 2024, as revealed by a report by research firm Counterpoint.

Apple encountered a significant setback in China as its iPhone sales plummeted by 24 per cent in the initial six weeks of 2024, as revealed by a report by research firm Counterpoint. Huawei, Apple's staunch competitor, witnessed a contrasting surge, with unit sales skyrocketing by 64 per cent during the same period. This contrast raises concerns about Apple's market standing and potential demand slowdown, with its share in the Chinese smartphone market slipping to 15.7 per cent, securing the fourth position. Counterpoint's report highlights a challenging landscape for Apple, attributing its decline to heightened competition from domestic rivals, particularly Huawei, which now claims the second spot in the Chinese market with a market share of 16.5 per cent. Apple's response to the competition includes recent subsidies for certain iPhone models and prior discounts, reflecting aggressive strategies while the overall smartphone market in China, shrank by 7 per cent. Counterpoint's Senior Analyst, Mengmeng Zhang, emphasises that Apple is grappling with a challenging scenario, squeezed in the middle due to aggressive pricing from competitors like Oppo, Vivo, and Xiaomi. The report notes that Huawei's resurgence in premium smartphone sales, especially with the Mate 60 series, has contributed to its remarkable growth despite previous struggles under US sanctions. Honor, Huawei's spin-off, is the only other brand in the top five to witness sales growth during the first six weeks of the year, rising by 2 per cent. The report indicates Apple's market share drop from 19 per cent to 15.7 per cent, slipping to the fourth position from second place a year ago. Meanwhile, Huawei's ascent to the second position underlines its successful rebound. Vivo, despite a 15 per cent sales decrease, retains its position as China's top-selling smartphone maker. Apple's proactive measures, including discounts and subsidies, aimed to counter the decline and boost sales amid the challenging market conditions in China. Apple's struggle in the Chinese market is evident in its share prices, which went down by 1.6 per cent in premarket trading, and an overall 10 per cent loss in value this year. The report underscores Huawei's resilience and unexpected success in overcoming challenges, including US sanctions, to dominate the Chinese premium smartphone market. The outcome of Apple's aggressive strategies and competition in China will likely impact its revenue performance, potentially influencing investor confidence. Apple shares saw a decline of 2.8 per cent in New York trade following reports of its falling revenue. (With inputs from Reuters)

Apple faces 24 pc dip in China iPhone sales amid Huawei's 64 pc surge

Swiss chocolatier Lindt &amp; Spruengli reported a surge in annual profit on Tuesday, attributing the increase to successful price adjustments amid soaring ingredient costs and a sluggish global chocolate market. <o:p></o:p>

Despite challenges posed by record-high cocoa prices and reduced consumer spending reported by competitors like Hershey's and Modelez, Lindt managed to navigate the market downturn by passing on increased costs to customers while maintaining sales volumes.<o:p></o:p>

The rise in cocoa prices, driven by adverse weather conditions and supply shortages, has presented significant challenges to chocolate manufacturers globally. <o:p></o:p>

However, Lindt's ability to translate these challenges into opportunities through strategic pricing adjustments has been key in maintaining profitability amidst market headwinds.<o:p></o:p>

"Lindt once again demonstrated its strong pricing power in FY23 thanks to its global premium positioning with high exposure to gifting and pralines," Reuters quoted Vontobel analyst Jean-Philippe Bertschy as saying.<o:p></o:p>

Bertschy expressed confidence in Lindt's continued momentum despite the challenging cocoa price environment.<o:p></o:p>

Speaking at a press conference, Lindt's Chief Executive, Adalbert Lechner, highlighted emerging trends in consumer behaviour, including the rising popularity of weight loss drugs like Novo Nordisk's Wegovy in the United States and Switzerland. <o:p></o:p>

However, Lechner noted that the company had yet to observe any major impact on its business from these trends, signalling a cautious approach to market shifts.<o:p></o:p>

Lindt's strong financial performance for the year ending December 31, 2023, was characterised by a 17.9 per cent increase in net income, reaching 671.4 million Swiss francs. <o:p></o:p>

The company's organic sales also saw a notable uptick of 10.3 per cent, driven by post-COVID recovery trends, particularly in the demand for higher-value products such as pralines.<o:p></o:p>

Looking ahead, Lindt aims to sustain its growth trajectory by implementing mid-single digit price hikes in 2024, alongside targeted organic growth of 6 per cent to 8 per cent. <o:p></o:p>

The company also aims to achieve an operating margin of 20-40 basis points.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Swiss chocolatier Lindt & Spruengli reported a surge in annual profit on Tuesday, attributing the increase to successful price adjustments amid soaring ingredient costs and a sluggish global chocolate market.

Swiss chocolatier Lindt & Spruengli reported a surge in annual profit on Tuesday, attributing the increase to successful price adjustments amid soaring ingredient costs and a sluggish global chocolate market. Despite challenges posed by record-high cocoa prices and reduced consumer spending reported by competitors like Hershey's and Modelez, Lindt managed to navigate the market downturn by passing on increased costs to customers while maintaining sales volumes. The rise in cocoa prices, driven by adverse weather conditions and supply shortages, has presented significant challenges to chocolate manufacturers globally. However, Lindt's ability to translate these challenges into opportunities through strategic pricing adjustments has been key in maintaining profitability amidst market headwinds. "Lindt once again demonstrated its strong pricing power in FY23 thanks to its global premium positioning with high exposure to gifting and pralines," Reuters quoted Vontobel analyst Jean-Philippe Bertschy as saying. Bertschy expressed confidence in Lindt's continued momentum despite the challenging cocoa price environment. Speaking at a press conference, Lindt's Chief Executive, Adalbert Lechner, highlighted emerging trends in consumer behaviour, including the rising popularity of weight loss drugs like Novo Nordisk's Wegovy in the United States and Switzerland. However, Lechner noted that the company had yet to observe any major impact on its business from these trends, signalling a cautious approach to market shifts. Lindt's strong financial performance for the year ending December 31, 2023, was characterised by a 17.9 per cent increase in net income, reaching 671.4 million Swiss francs. The company's organic sales also saw a notable uptick of 10.3 per cent, driven by post-COVID recovery trends, particularly in the demand for higher-value products such as pralines. Looking ahead, Lindt aims to sustain its growth trajectory by implementing mid-single digit price hikes in 2024, alongside targeted organic growth of 6 per cent to 8 per cent. The company also aims to achieve an operating margin of 20-40 basis points. (With inputs from Reuters)

Lindt reports record 2023 profits while global chocolate market slows down

AlShaya Group, the retail giant holding the Starbucks franchise rights in West Asia, is set to lay off more than 2,000 employees as a consequence of dwindling consumer support stemming from the Gaza war-related boycotts. <o:p></o:p>

Reuters cited sources familiar with the matter, who revealed that the job cuts, initiated recently, account for approximately 4 per cent of AlShaya's extensive workforce of nearly 50,000 individuals. <o:p></o:p>

The impacted positions are primarily within the Starbucks franchise operating across the West Asia and North Africa.<o:p></o:p>

"The continually challenging trading conditions over the last six months have led to this sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores," Reuters quoted AlShaya as saying.<o:p></o:p>

While AlShaya remains committed to extending support to affected employees and reiterates its dedication to the region, Starbucks expressed gratitude to departing staff members and noted its ongoing collaboration with AlShaya to foster long-term growth in the West Asia.<o:p></o:p>

AlShaya, a key player in the retail landscape of the West Asia, operates various Western brand franchises besides Starbucks, including The Cheesecake Factory and Shake Shack. <o:p></o:p>

The group has held the rights to Starbucks coffee shops in the region since 1999 and manages around 2,000 outlets across 13 countries in the West Asia, North Africa, and central Asia.<o:p></o:p>

In recent times, AlShaya's Starbucks business faced potential investment interest from US private equity firm Apollo Global Management Inc.<o:p></o:p>

The boycotts, sparked by Israel's military actions in Gaza, have impacted Western brands operating in the West Asia. <o:p></o:p>

Starbucks, despite clarifying its apolitical stance, experienced repercussions from the unrest, affecting its market performance and prompting adjustments to its operations.<o:p></o:p>

The fallout from the Gaza conflict has had reverberations not only in the West Asia but also in the United States, where Starbucks saw a decline in sales due to protests and boycott campaigns demanding the company to take a stand on the issue.<o:p></o:p>

This development adds to AlShaya's recent challenges, as the group had announced plans to scale back operations in Egypt earlier, citing the country's economic turmoil characterised by currency devaluations and soaring inflation.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

AlShaya Group, the retail giant holding the Starbucks franchise rights in West Asia, is set to lay off more than 2,000 employees as a consequence of dwindling consumer support stemming from the Gaza war-related boycotts.

AlShaya Group, the retail giant holding the Starbucks franchise rights in West Asia, is set to lay off more than 2,000 employees as a consequence of dwindling consumer support stemming from the Gaza war-related boycotts. Reuters cited sources familiar with the matter, who revealed that the job cuts, initiated recently, account for approximately 4 per cent of AlShaya's extensive workforce of nearly 50,000 individuals. The impacted positions are primarily within the Starbucks franchise operating across the West Asia and North Africa. "The continually challenging trading conditions over the last six months have led to this sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores," Reuters quoted AlShaya as saying. While AlShaya remains committed to extending support to affected employees and reiterates its dedication to the region, Starbucks expressed gratitude to departing staff members and noted its ongoing collaboration with AlShaya to foster long-term growth in the West Asia. AlShaya, a key player in the retail landscape of the West Asia, operates various Western brand franchises besides Starbucks, including The Cheesecake Factory and Shake Shack. The group has held the rights to Starbucks coffee shops in the region since 1999 and manages around 2,000 outlets across 13 countries in the West Asia, North Africa, and central Asia. In recent times, AlShaya's Starbucks business faced potential investment interest from US private equity firm Apollo Global Management Inc. The boycotts, sparked by Israel's military actions in Gaza, have impacted Western brands operating in the West Asia. Starbucks, despite clarifying its apolitical stance, experienced repercussions from the unrest, affecting its market performance and prompting adjustments to its operations. The fallout from the Gaza conflict has had reverberations not only in the West Asia but also in the United States, where Starbucks saw a decline in sales due to protests and boycott campaigns demanding the company to take a stand on the issue. This development adds to AlShaya's recent challenges, as the group had announced plans to scale back operations in Egypt earlier, citing the country's economic turmoil characterised by currency devaluations and soaring inflation. (With inputs from Reuters)

Starbucks West Asia franchise AlShaya to cut thousands of jobs amid boycott fallout

China's Premier Li Qiang announced an ambitious growth target of around 5 per cent during the annual parliamentary session, aiming to boost confidence in the world's second-largest economy. <o:p></o:p>

However, analysts have raised concerns about the lack of detailed strategies to achieve this goal, considering the nation's deep-rooted challenges.<o:p></o:p>

Lack of concrete measures raises eyebrows<o:p></o:p>

According to a Bloomberg report, although Premier Li’s acknowledged the need for support on "all fronts," the report fell short in providing concrete plans. <o:p></o:p>

Fiscal deficit remained unchanged, major moves to boost consumption were avoided, and specifics on solving the real estate crisis were scarce. <o:p></o:p>

This has led experts like Alicia Garcia Herrero, Natixis SA's chief Asia-Pacific economist, to criticise the lack of a clear roadmap.<o:p></o:p>

Alicia Garcia Herrero expressed her concern, saying, "This is a target without a plan." <o:p></o:p>

She highlighted the gravity of the situation, noting issues such as falling wages and deflation, questioning the government's approach towards addressing these challenges.<o:p></o:p>

Economic slowdown and policy shifts<o:p></o:p>

China's economic growth has been slowing down for over a decade, with the average growth rate barely above 4 per cent in recent years. <o:p></o:p>

President Xi Jinping's focus on technological self-sufficiency and national security has shifted priorities, making substantial stimulus measures off-limits to mitigate debt risks.<o:p></o:p>

According to Li Daokui, a professor at Tsinghua University, while initiatives like renovating city districts are crucial, there's a need for more aggressive policies to stimulate consumption. <o:p></o:p>

He urged the government to focus on measures that directly encourage spending, highlighting the importance of consumer-driven growth.<o:p></o:p>

Uncertainty looms over policy direction<o:p></o:p>

The shift towards promoting "new productive forces" raises concerns about a supply-side focus, potentially exacerbating deflationary pressures and trade tensions. <o:p></o:p>

Ambiguities in policy direction have left experts questioning the government's approach and its implications for economic stability.<o:p></o:p>

Jing Liu, chief China economist at HSBC Holdings Plc, highlighted the pressing need for additional housing support measures amidst concerns over the real estate sector. <o:p></o:p>

However, uncertainties persist regarding the government's stance and forthcoming policy decisions.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

China's Premier Li Qiang announced an ambitious growth target of around 5 per cent during the annual parliamentary session, aiming to boost confidence in the world's second-largest economy.

China's Premier Li Qiang announced an ambitious growth target of around 5 per cent during the annual parliamentary session, aiming to boost confidence in the world's second-largest economy. However, analysts have raised concerns about the lack of detailed strategies to achieve this goal, considering the nation's deep-rooted challenges. Lack of concrete measures raises eyebrows According to a Bloomberg report, although Premier Li’s acknowledged the need for support on "all fronts," the report fell short in providing concrete plans. Fiscal deficit remained unchanged, major moves to boost consumption were avoided, and specifics on solving the real estate crisis were scarce. This has led experts like Alicia Garcia Herrero, Natixis SA's chief Asia-Pacific economist, to criticise the lack of a clear roadmap. Alicia Garcia Herrero expressed her concern, saying, "This is a target without a plan." She highlighted the gravity of the situation, noting issues such as falling wages and deflation, questioning the government's approach towards addressing these challenges. Economic slowdown and policy shifts China's economic growth has been slowing down for over a decade, with the average growth rate barely above 4 per cent in recent years. President Xi Jinping's focus on technological self-sufficiency and national security has shifted priorities, making substantial stimulus measures off-limits to mitigate debt risks. According to Li Daokui, a professor at Tsinghua University, while initiatives like renovating city districts are crucial, there's a need for more aggressive policies to stimulate consumption. He urged the government to focus on measures that directly encourage spending, highlighting the importance of consumer-driven growth. Uncertainty looms over policy direction The shift towards promoting "new productive forces" raises concerns about a supply-side focus, potentially exacerbating deflationary pressures and trade tensions. Ambiguities in policy direction have left experts questioning the government's approach and its implications for economic stability. Jing Liu, chief China economist at HSBC Holdings Plc, highlighted the pressing need for additional housing support measures amidst concerns over the real estate sector. However, uncertainties persist regarding the government's stance and forthcoming policy decisions. (With inputs from Bloomberg)

China's growth ambitions challenged: Analysts sceptical of 'Target Without a Plan'

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023. <o:p></o:p>

The state oil giant disclosed that it had successfully integrated over 30 AI tools across various operations, spanning from field activities to corporate decision-making processes, with plans for broader adoption of AI technology.<o:p></o:p>

ADNOC highlighted the role of AI in revolutionising operational efficiency, citing a program utilising AI for remote monitoring of operational equipment, which reduced unexpected shutdowns and enhanced overall efficiency. <o:p></o:p>

Moreover, AI technology has been instrumental in resource mapping, supporting drilling and production activities, and facilitating reservoir management, contributing to increased production capacity and the delivery of lower carbon-intensity energy solutions.<o:p></o:p>

Sophie Hildebrand, ADNOC's Chief Technology Officer, highlighted the transformative impact of AI initiatives, emphasising the enhancements in automation and process optimisation across various facets of the company's operations. <o:p></o:p>

Hildebrand said that there are tangible benefits derived from AI implementation, including improvements in capital expenditure, operational expenditure, working capital management, and production efficiency.<o:p></o:p>

"The ability for us to do more and more is growing as the technology grows," Reuters quoted&nbsp; Hildebrand as saying. <o:p></o:p>

While declining to provide specific figures, she anticipated further growth in the value generated by AI initiatives in the future.<o:p></o:p>

ADNOC's AI initiatives are strengthened by tools developed through its joint venture with G42, known as AIQ. <o:p></o:p>

Notable AIQ tools utilised by ADNOC include SMARTi, designed for hazard detection in industrial environments, and Robowell, facilitating remote equipment operation and flow valve control to enhance safety, reduce costs, and optimise production capacity.<o:p></o:p>

The partnership between ADNOC and G42 highlights the strategic collaboration between industry leaders and technology innovators in driving forward AI integration within the oil and gas sector. <o:p></o:p>

G42, a key player in the AI sector, is part of a business conglomerate associated with Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser, and brother of President Sheikh Mohammed bin Zayed al-Nahyan.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023.

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023. The state oil giant disclosed that it had successfully integrated over 30 AI tools across various operations, spanning from field activities to corporate decision-making processes, with plans for broader adoption of AI technology. ADNOC highlighted the role of AI in revolutionising operational efficiency, citing a program utilising AI for remote monitoring of operational equipment, which reduced unexpected shutdowns and enhanced overall efficiency. Moreover, AI technology has been instrumental in resource mapping, supporting drilling and production activities, and facilitating reservoir management, contributing to increased production capacity and the delivery of lower carbon-intensity energy solutions. Sophie Hildebrand, ADNOC's Chief Technology Officer, highlighted the transformative impact of AI initiatives, emphasising the enhancements in automation and process optimisation across various facets of the company's operations. Hildebrand said that there are tangible benefits derived from AI implementation, including improvements in capital expenditure, operational expenditure, working capital management, and production efficiency. "The ability for us to do more and more is growing as the technology grows," Reuters quoted Hildebrand as saying. While declining to provide specific figures, she anticipated further growth in the value generated by AI initiatives in the future. ADNOC's AI initiatives are strengthened by tools developed through its joint venture with G42, known as AIQ. Notable AIQ tools utilised by ADNOC include SMARTi, designed for hazard detection in industrial environments, and Robowell, facilitating remote equipment operation and flow valve control to enhance safety, reduce costs, and optimise production capacity. The partnership between ADNOC and G42 highlights the strategic collaboration between industry leaders and technology innovators in driving forward AI integration within the oil and gas sector. G42, a key player in the AI sector, is part of a business conglomerate associated with Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser, and brother of President Sheikh Mohammed bin Zayed al-Nahyan. (With inputs from Reuters)

Abu Dhabi’s state oil company harnesses AI, adds $500 million in net value in 2023

<o:p></o:p>

Singapore's competition watchdog granted conditional approval on Tuesday for the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines.<o:p></o:p>

The merger, announced in November 2022, aims to establish a dominant full-service airline in both domestic and international markets.<o:p></o:p>

The Competition and Consumer Commission of Singapore (CCCS) expressed initial concerns regarding the merger, particularly focusing on the dominant market share the combined entity would hold on certain routes between Singapore and major Indian cities. <o:p></o:p>

To address these concerns, the parties proposed maintaining flight capacity at pre-pandemic levels and appointing independent auditors to ensure compliance with these commitments.<o:p></o:p>

"CCCS considers the proposed commitments sufficient to address the competition concerns arising from the transactions," Reuters quoted the watchdog as saying.<o:p></o:p>

The merger's approval is contingent on various regulatory and foreign direct investment clearances, signalling the necessity for further authorisation before finalising the deal. <o:p></o:p>

Singapore Airlines confirmed that it would be collaborating with Tata Sons to secure the remaining approvals from relevant authorities.<o:p></o:p>

"Singapore Airlines continues to work with our partner Tata Sons to secure the remaining approvals from the relevant authorities to complete the merger," stated a spokesperson for Singapore Airlines.<o:p></o:p>

Details of the merger stipulate that Tata Group would hold a majority stake of 74.9 per cent in the combined entity, with Singapore Airlines retaining a 25.1 per cent ownership. <o:p></o:p>

This arrangement solidifies Tata's position as a major player in the Indian aviation industry, leveraging its partnership with Singapore Airlines to expand its market presence.<o:p></o:p>

Air India refrained from immediate comment following the announcement of the conditional approval.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Singapore's competition watchdog granted conditional approval on Tuesday for the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines.

Singapore's competition watchdog granted conditional approval on Tuesday for the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines. The merger, announced in November 2022, aims to establish a dominant full-service airline in both domestic and international markets. The Competition and Consumer Commission of Singapore (CCCS) expressed initial concerns regarding the merger, particularly focusing on the dominant market share the combined entity would hold on certain routes between Singapore and major Indian cities. To address these concerns, the parties proposed maintaining flight capacity at pre-pandemic levels and appointing independent auditors to ensure compliance with these commitments. "CCCS considers the proposed commitments sufficient to address the competition concerns arising from the transactions," Reuters quoted the watchdog as saying. The merger's approval is contingent on various regulatory and foreign direct investment clearances, signalling the necessity for further authorisation before finalising the deal. Singapore Airlines confirmed that it would be collaborating with Tata Sons to secure the remaining approvals from relevant authorities. "Singapore Airlines continues to work with our partner Tata Sons to secure the remaining approvals from the relevant authorities to complete the merger," stated a spokesperson for Singapore Airlines. Details of the merger stipulate that Tata Group would hold a majority stake of 74.9 per cent in the combined entity, with Singapore Airlines retaining a 25.1 per cent ownership. This arrangement solidifies Tata's position as a major player in the Indian aviation industry, leveraging its partnership with Singapore Airlines to expand its market presence. Air India refrained from immediate comment following the announcement of the conditional approval. (With inputs from Reuters)

Singapore approves Air India-Vistara merger with conditions: Report

In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups. <o:p></o:p>

According to a Reuters report, the move comes after Google faced widespread criticism for removing over 100 Indian apps, including popular ones like Matrimony.com, for non-compliance with its in-app payment policy, which mandates a service fee for transactions not routed through Google's payment system.<o:p></o:p>

"In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court," Reuters quoted Google saying in a statement.<o:p></o:p>

The decision to relist the apps followed a closed-door meeting between Sanjay Gupta, Google India's head, and IT minister Ashwini Vaishnaw. <o:p></o:p>

A source familiar with the discussions revealed that the meeting played a major role in resolving the conflict.<o:p></o:p>

Criticism against Google's actions had been mounting, particularly from Indian companies that have long been at odds with the tech giant over its policies. <o:p></o:p>

The core of the dispute lies in the resistance by certain Indian startups against Google's imposition of significant fees on in-app payments. <o:p></o:p>

Despite orders from Indian antitrust authorities to refrain from enforcing steep transaction charges, Google had persisted, sparking legal battles and resistance from the startup community.<o:p></o:p>

"We believe that in the coming months, both the start-up community as well as Google would be able to come to a long-term resolution," commented IT Minister Ashwini Vaishnaw, according to ANI.<o:p></o:p>

Vaishnaw had earlier criticised Google's actions, stating that such unilateral decisions "cannot be permitted."<o:p></o:p>

(With inputs from agencies)<o:p></o:p>

In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups.

In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups. According to a Reuters report, the move comes after Google faced widespread criticism for removing over 100 Indian apps, including popular ones like Matrimony.com, for non-compliance with its in-app payment policy, which mandates a service fee for transactions not routed through Google's payment system. "In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court," Reuters quoted Google saying in a statement. The decision to relist the apps followed a closed-door meeting between Sanjay Gupta, Google India's head, and IT minister Ashwini Vaishnaw. A source familiar with the discussions revealed that the meeting played a major role in resolving the conflict. Criticism against Google's actions had been mounting, particularly from Indian companies that have long been at odds with the tech giant over its policies. The core of the dispute lies in the resistance by certain Indian startups against Google's imposition of significant fees on in-app payments. Despite orders from Indian antitrust authorities to refrain from enforcing steep transaction charges, Google had persisted, sparking legal battles and resistance from the startup community. "We believe that in the coming months, both the start-up community as well as Google would be able to come to a long-term resolution," commented IT Minister Ashwini Vaishnaw, according to ANI. Vaishnaw had earlier criticised Google's actions, stating that such unilateral decisions "cannot be permitted." (With inputs from agencies)

Google reverses course: Relists Indian apps amid government criticism

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;<o:p></o:p>

Google reverses course: Relists Indian apps amid government criticism<o:p></o:p>

In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/google-reverses-course-relists-indian-apps-amid-government-criticism-697029">Read more here</a><o:p></o:p>

Singapore approves Air India-Vistara merger with conditions: Report<o:p></o:p>

Singapore's competition watchdog granted conditional approval on Tuesday for the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/singapore-approves-air-india-vistara-merger-with-conditions-report-697049">Read more here</a><o:p></o:p>

Starbucks West Asia franchise AlShaya to cut thousands of jobs amid boycott fallout<o:p></o:p>

AlShaya Group, the retail giant holding the Starbucks franchise rights in West Asia, is set to lay off more than 2,000 employees as a consequence of dwindling consumer support stemming from the Gaza war-related boycotts.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/starbucks-west-asia-franchisee-alshaya-to-cut-thousands-of-jobs-amid-boycott-fallout-697065">Read more here</a><o:p></o:p>

Abu Dhabi’s state oil company harnesses AI, adds $500 million in net value in 2023<o:p></o:p>

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/abu-dhabis-state-oil-company-harnesses-ai-adds-500-million-in-net-value-in-2023-697095">Read more here</a><o:p></o:p>

China's growth ambitions challenged: Analysts sceptical of 'Target Without a Plan'<o:p></o:p>

China's Premier Li Qiang announced an ambitious growth target of around 5 per cent during the annual parliamentary session, aiming to boost confidence in the world's second-largest economy.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/chinas-growth-ambitions-challenged-analysts-sceptical-of-target-without-a-plan-697112">Read more here</a><o:p></o:p>

Lindt reports record 2023 profits while global chocolate market slows down<o:p></o:p>

Swiss chocolatier Lindt &amp; Spruengli reported a surge in annual profit on Tuesday, attributing the increase to successful price adjustments amid soaring ingredient costs and a sluggish global chocolate market.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/lindt-reports-record-2023-profits-while-global-chocolate-market-slows-down-697127">Read more here</a><o:p></o:p>

Pakistan's Prime Minister initiates talks with IMF for crucial loan renewal<o:p></o:p>

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/pakistans-prime-minister-initiates-talks-with-imf-for-crucial-loan-renewal-697137">Read more here</a><o:p></o:p>

Russia's oil and gas revenue surges, providing budget boost amid sanctions<o:p></o:p>

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/russias-oil-and-gas-revenue-surges-providing-budget-boost-amid-sanctions-697149">Read more here</a><o:p></o:p>

Sluggish growth sparks talks of rate cuts in Australia<o:p></o:p>

Australia's economy faced sluggish growth in the December quarter, as household incomes dwindled and consumer spending stagnated, signaling a potential downward shift in interest rates.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/sluggish-growth-sparks-talks-of-rate-cuts-in-australia-697151">Read more here</a><o:p></o:p>

Tesco leads wage hike trend in British retail sector<o:p></o:p>

Tesco, the largest retailer in Britain, has announced a substantial increase in hourly pay for its store workers, reflecting the rise in the government-mandated minimum wage.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/tesco-leads-wage-hike-trend-in-british-retail-sector-697153">Read more here</a><o:p></o:p>

Chinese automakers pave the way to Australia's EV market<o:p></o:p>

Chinese automakers, led by BYD, are making significant strides in the Australian electric vehicle (EV) market, capitalising on favourable conditions including government incentives and a growing demand for environmentally friendly transportation.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/chinese-automakers-make-inroads-in-australias-ev-market-697155">Read more here</a><o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Google reverses course: Relists Indian apps amid government criticism In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Google reverses course: Relists Indian apps amid government criticism In a U-turn, Google announced its decision to reinstate Indian apps it had removed due to a billing dispute, marking a shift in stance following backlash from the Indian government and local internet startups. Read more here Singapore approves Air India-Vistara merger with conditions: Report Singapore's competition watchdog granted conditional approval on Tuesday for the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines. Read more here Starbucks West Asia franchise AlShaya to cut thousands of jobs amid boycott fallout AlShaya Group, the retail giant holding the Starbucks franchise rights in West Asia, is set to lay off more than 2,000 employees as a consequence of dwindling consumer support stemming from the Gaza war-related boycotts. Read more here Abu Dhabi’s state oil company harnesses AI, adds $500 million in net value in 2023 Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023. Read more here China's growth ambitions challenged: Analysts sceptical of 'Target Without a Plan' China's Premier Li Qiang announced an ambitious growth target of around 5 per cent during the annual parliamentary session, aiming to boost confidence in the world's second-largest economy. Read more here Lindt reports record 2023 profits while global chocolate market slows down Swiss chocolatier Lindt & Spruengli reported a surge in annual profit on Tuesday, attributing the increase to successful price adjustments amid soaring ingredient costs and a sluggish global chocolate market. Read more here Pakistan's Prime Minister initiates talks with IMF for crucial loan renewal Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. Read more here Russia's oil and gas revenue surges, providing budget boost amid sanctions Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year. Read more here Sluggish growth sparks talks of rate cuts in Australia Australia's economy faced sluggish growth in the December quarter, as household incomes dwindled and consumer spending stagnated, signaling a potential downward shift in interest rates. Read more here Tesco leads wage hike trend in British retail sector Tesco, the largest retailer in Britain, has announced a substantial increase in hourly pay for its store workers, reflecting the rise in the government-mandated minimum wage. Read more here Chinese automakers pave the way to Australia's EV market Chinese automakers, led by BYD, are making significant strides in the Australian electric vehicle (EV) market, capitalising on favourable conditions including government incentives and a growing demand for environmentally friendly transportation. Read more here

WION Business Wrap | Google relists Indian apps, Air India-Vistara merger, Starbucks to cut jobs and more

Chinese automakers, led by BYD, are making significant strides in the Australian electric vehicle (EV) market, capitalising on favourable conditions including government incentives and a growing demand for environmentally friendly transportation.

The Australian government, under Prime Minister Anthony Albanese, has actively promoted EV adoption as part of its emissions reduction efforts, resulting in a surge in EV sales.

According to data from the Federal Chamber of Automotive Industries, EVs accounted for 7.2 per cent of new car sales in Australia in 2023, up from 3.1 per cent the previous year.

David Smitherman, chief executive at BYD's distributor in Australia, highlighted the growing opportunity in the EV market, stating, "We need to now get into the mainstream market because we've sold to the early adopters and the passionate EV purchasers."

BYD plans to expand its product lineup in Australia by introducing two SUVs and a pickup truck, aiming to further penetrate the market.

Additionally, the company is focusing on fleet sales to companies like Uber and plans to open more dealerships to accommodate increasing demand.

Chinese state-owned SAIC Motor is also set to expand its presence in Australia with the launch of three new models under its MG brand, including plug-in hybrids and electric roadsters.

This move reflects the broader trend of Chinese automakers investing in the Australian market, drawn by its absence of protectionist trade barriers and the government's support for EV adoption.

Despite tensions in other markets regarding Chinese EV makers' access to state subsidies and cybersecurity concerns, the Australian government has not expressed similar apprehensions.

In response to the growing competition, incumbent automakers like Ford and Toyota are also ramping up their efforts in the EV space.

Ford has plans to introduce more electrified vehicles to the Australian market, while Toyota recently launched its first electric car alongside its existing hybrid lineup.

However, the emergence of Chinese EV manufacturers poses a significant challenge to traditional automakers, particularly those heavily reliant on gasoline-engine vehicles.

The Australian government has implemented various measures to incentivise EV adoption, including tax exemptions for EV purchases and generous rebates on state levels.

These incentives have encouraged consumers like Mark Adamson and Peter Alley to switch to electric vehicles.

Adamson, who received significant discounts on his BYD Atto 3 SUV through government rebates and manufacturer discounts, expressed his motivation: "I figured why not give it a go? It's sort of really worth doing."

Alley, on the other hand, highlighted the cost-saving benefits of EV ownership, particularly in the face of rising gasoline prices.

BYD begins construction on EV manufacturing plant in Brazil

Meanwhile, BYD confirmed on Wednesday that it is going to begin construction of a manufacturing facility in Brazil.

This complex is slated to become operational either by the end of 2024 or in early 2025.

With an initial estimated annual production capacity of 150,000 units, the facility will focus on manufacturing models such as the Dolphin hatchback, Dolphin Mini, Song Plus SUV, and Yuan Plus crossover during its first phase.

(With inputs from Reuters)

Chinese automakers, led by BYD, are making significant strides in the Australian electric vehicle (EV) market, capitalising on favourable conditions including government incentives and a growing demand for environmentally friendly transportation.

Chinese automakers, led by BYD, are making significant strides in the Australian electric vehicle (EV) market, capitalising on favourable conditions including government incentives and a growing demand for environmentally friendly transportation. The Australian government, under Prime Minister Anthony Albanese, has actively promoted EV adoption as part of its emissions reduction efforts, resulting in a surge in EV sales. According to data from the Federal Chamber of Automotive Industries, EVs accounted for 7.2 per cent of new car sales in Australia in 2023, up from 3.1 per cent the previous year. David Smitherman, chief executive at BYD's distributor in Australia, highlighted the growing opportunity in the EV market, stating, "We need to now get into the mainstream market because we've sold to the early adopters and the passionate EV purchasers." BYD plans to expand its product lineup in Australia by introducing two SUVs and a pickup truck, aiming to further penetrate the market. Additionally, the company is focusing on fleet sales to companies like Uber and plans to open more dealerships to accommodate increasing demand. Chinese state-owned SAIC Motor is also set to expand its presence in Australia with the launch of three new models under its MG brand, including plug-in hybrids and electric roadsters. This move reflects the broader trend of Chinese automakers investing in the Australian market, drawn by its absence of protectionist trade barriers and the government's support for EV adoption. Despite tensions in other markets regarding Chinese EV makers' access to state subsidies and cybersecurity concerns, the Australian government has not expressed similar apprehensions. In response to the growing competition, incumbent automakers like Ford and Toyota are also ramping up their efforts in the EV space. Ford has plans to introduce more electrified vehicles to the Australian market, while Toyota recently launched its first electric car alongside its existing hybrid lineup. However, the emergence of Chinese EV manufacturers poses a significant challenge to traditional automakers, particularly those heavily reliant on gasoline-engine vehicles. The Australian government has implemented various measures to incentivise EV adoption, including tax exemptions for EV purchases and generous rebates on state levels. These incentives have encouraged consumers like Mark Adamson and Peter Alley to switch to electric vehicles. Adamson, who received significant discounts on his BYD Atto 3 SUV through government rebates and manufacturer discounts, expressed his motivation: "I figured why not give it a go? It's sort of really worth doing." Alley, on the other hand, highlighted the cost-saving benefits of EV ownership, particularly in the face of rising gasoline prices. BYD begins construction on EV manufacturing plant in Brazil Meanwhile, BYD confirmed on Wednesday that it is going to begin construction of a manufacturing facility in Brazil. This complex is slated to become operational either by the end of 2024 or in early 2025. With an initial estimated annual production capacity of 150,000 units, the facility will focus on manufacturing models such as the Dolphin hatchback, Dolphin Mini, Song Plus SUV, and Yuan Plus crossover during its first phase. (With inputs from Reuters)

Chinese automakers pave the way to Australia's EV market

Australia's economy faced sluggish growth in the December quarter, as household incomes dwindled and consumer spending stagnated, signaling a potential downward shift in interest rates.

Treasurer Jim Chalmers acknowledged the economic challenges, stating that the focus is now shifting from inflation to growth.

According to data from the Australian Bureau of Statistics (ABS), real gross domestic product (GDP) expanded by a mere 0.2 per cent in the fourth quarter, falling below expectations of 0.3 per cent.

This slowdown reflects the effectiveness of high borrowing costs in curbing demand, with annual growth dropping to 1.5 per cent, the lowest since early 2021.

The softness in domestic demand was evident in household spending patterns, as essentials saw a modest increase while discretionary spending declined.

Deloitte Access Economics partner Stephen Smith highlighted the impact of higher interest rates and living costs on Australian consumers, stressing the need for policy adjustments to stimulate economic growth.

The Reserve Bank of Australia (RBA) has implemented significant interest rate hikes to combat inflation, totaling 425 basis points since May 2022.

Despite headline inflation easing to two-year lows, persistent services price pressures have kept the possibility of further rate hikes on the table.

Treasurer Chalmers noted the need for a response to the shifting economic landscape, with a potential budget announcement in May.

Globally, economic growth has slowed, with countries like Japan, Britain, and the euro zone facing recessionary pressures.

In Australia, growth has been supported by record immigration, yet per capita GDP fell by 0.3 per cent in the December quarter, marking the longest declining streak since 1982.

While the household saving ratio rebounded slightly, it remained subdued, indicating ongoing economic challenges.

Net trade emerged as a significant driver of growth, with reduced imports contributing positively to fourth-quarter GDP growth.

Looking ahead, analysts anticipate further economic slowdown before a potential recovery in the second half of the year.

Market expectations point to the possibility of the RBA implementing its first rate cut in August, signaling a shift towards growth-focused policies.

(With inputs from Reuters)

Australia's economy faced sluggish growth in the December quarter, as household incomes dwindled and consumer spending stagnated, signaling a potential downward shift in interest rates.

Australia's economy faced sluggish growth in the December quarter, as household incomes dwindled and consumer spending stagnated, signaling a potential downward shift in interest rates. Treasurer Jim Chalmers acknowledged the economic challenges, stating that the focus is now shifting from inflation to growth. According to data from the Australian Bureau of Statistics (ABS), real gross domestic product (GDP) expanded by a mere 0.2 per cent in the fourth quarter, falling below expectations of 0.3 per cent. This slowdown reflects the effectiveness of high borrowing costs in curbing demand, with annual growth dropping to 1.5 per cent, the lowest since early 2021. The softness in domestic demand was evident in household spending patterns, as essentials saw a modest increase while discretionary spending declined. Deloitte Access Economics partner Stephen Smith highlighted the impact of higher interest rates and living costs on Australian consumers, stressing the need for policy adjustments to stimulate economic growth. The Reserve Bank of Australia (RBA) has implemented significant interest rate hikes to combat inflation, totaling 425 basis points since May 2022. Despite headline inflation easing to two-year lows, persistent services price pressures have kept the possibility of further rate hikes on the table. Treasurer Chalmers noted the need for a response to the shifting economic landscape, with a potential budget announcement in May. Globally, economic growth has slowed, with countries like Japan, Britain, and the euro zone facing recessionary pressures. In Australia, growth has been supported by record immigration, yet per capita GDP fell by 0.3 per cent in the December quarter, marking the longest declining streak since 1982. While the household saving ratio rebounded slightly, it remained subdued, indicating ongoing economic challenges. Net trade emerged as a significant driver of growth, with reduced imports contributing positively to fourth-quarter GDP growth. Looking ahead, analysts anticipate further economic slowdown before a potential recovery in the second half of the year. Market expectations point to the possibility of the RBA implementing its first rate cut in August, signaling a shift towards growth-focused policies. (With inputs from Reuters)

Sluggish growth sparks talks of rate cuts in Australia

Tesco, the largest retailer in Britain, has announced a substantial increase in hourly pay for its store workers, reflecting the rise in the government-mandated minimum wage.

The supermarket giant revealed on Tuesday that it would boost hourly base pay by 9.1 per cent, following negotiations with the shopworkers' union USDAW.

This move will see the hourly wage jump from $13.98 to $15.27 starting from April, surpassing the government's national living wage, which is set to increase by 9.8 per cent to $14.53 per hour.

Tesco's London-based employees will receive even higher compensation, with an hourly rate of $16.71. The company estimates that this wage hike will cost it over $381 million.

The Bank of England is closely monitoring wage settlements as it evaluates the trajectory of interest rates, expressing concerns that rapid wage growth could exacerbate inflationary pressures across the economy.

While worker wages in Britain have only recently begun to outpace inflation, which remained at 4 per cent in January—twice the central bank's target of 2 per cent.

In a similar vein, other major supermarket chains are also increasing their workers' pay.

Sainsbury's, the second-largest supermarket group in Britain, announced a 9 per cent pay rise for its employees in January, elevating the hourly rate to $15.25 effective from March.

Asda, the third-largest player, recently unveiled an 8.4 per cent wage hike, bringing the hourly pay to $15.30, though this increase won't take effect until July.

Additionally, several other retailers including Marks &amp; Spencer, Amazon, Aldi, Lidl, and Costa Coffee have announced pay rises for 2024.

(With inputs from Reuters)

Tesco, the largest retailer in Britain, has announced a substantial increase in hourly pay for its store workers, reflecting the rise in the government-mandated minimum wage.

Tesco, the largest retailer in Britain, has announced a substantial increase in hourly pay for its store workers, reflecting the rise in the government-mandated minimum wage. The supermarket giant revealed on Tuesday that it would boost hourly base pay by 9.1 per cent, following negotiations with the shopworkers' union USDAW. This move will see the hourly wage jump from $13.98 to $15.27 starting from April, surpassing the government's national living wage, which is set to increase by 9.8 per cent to $14.53 per hour. Tesco's London-based employees will receive even higher compensation, with an hourly rate of $16.71. The company estimates that this wage hike will cost it over $381 million. The Bank of England is closely monitoring wage settlements as it evaluates the trajectory of interest rates, expressing concerns that rapid wage growth could exacerbate inflationary pressures across the economy. While worker wages in Britain have only recently begun to outpace inflation, which remained at 4 per cent in January—twice the central bank's target of 2 per cent. In a similar vein, other major supermarket chains are also increasing their workers' pay. Sainsbury's, the second-largest supermarket group in Britain, announced a 9 per cent pay rise for its employees in January, elevating the hourly rate to $15.25 effective from March. Asda, the third-largest player, recently unveiled an 8.4 per cent wage hike, bringing the hourly pay to $15.30, though this increase won't take effect until July. Additionally, several other retailers including Marks & Spencer, Amazon, Aldi, Lidl, and Costa Coffee have announced pay rises for 2024. (With inputs from Reuters)

Tesco leads wage hike trend in British retail sector

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.<o:p></o:p>

According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector.<o:p></o:p>

The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50.

Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data.<o:p></o:p>

Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. <o:p></o:p>

Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges.<o:p></o:p>

Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. <o:p></o:p>

While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries.<o:p></o:p>

In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." <o:p></o:p>

This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations.<o:p></o:p>

Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. <o:p></o:p>

These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions.<o:p></o:p>

Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. <o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year. According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector. The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50. Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data. Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges. Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries. In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations. Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions. Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. (With inputs from Bloomberg)

Russia's oil and gas revenue surges, providing budget boost amid sanctions

South Korea's Central Bank, the Bank of Korea (BOK), is undergoing a shakeup in its policy board, raising concerns about future efforts to control inflation, warns a former policy director.<o:p></o:p>

According to Bloomberg News, the impending departure of key members, Cho Yun-je and Suh Young Kyung, who played pivotal roles in the decision to raise interest rates in August 2021, is leaving the BOK with a leadership vacuum in the face of potential economic challenges. <o:p></o:p>

This development adds an element of unpredictability to the BOK's strategy in tamping down price pressure in case it resurfaces, given the departure of experienced figures who witnessed the adverse effects of aggressively eased policies.<o:p></o:p>

Early inflation fighters bid farewell<o:p></o:p>

The BOK's board reorganisation is part of one of the most substantial overhauls in years. <o:p></o:p>

Cho Yun-je and Suh Young Kyung, the only remaining members from the board that initiated the key interest rate hike in August 2021, are set to complete their four-year terms in April. <o:p></o:p>

Hong Kyungsik, the recently retired director general of the monetary policy department, emphasises their crucial role, stating, "They were there to witness the adverse effects of aggressively eased policy." <o:p></o:p>

Leadership vacuum raises concerns<o:p></o:p>

The departure of key figures from the BOK's board raises concerns about the institution's ability to navigate future challenges. <o:p></o:p>

Hong Kyungsik, who observed the decision-making process leading to the exit from the record-low rate of 0.5 per cent, notes the value of the experience in addressing financial imbalances in an ultra-low-rate environment. <o:p></o:p>

With Cho and Suh leaving, Governor Rhee Chang-yong and board member Shin Sung Hwan will be the sole members with pre-2023 experience, potentially heightening uncertainties in the board's decision-making process.<o:p></o:p>

Economic challenges and political landscape<o:p></o:p>

As South Korea gears up for parliamentary elections in April, the BOK faces challenges not only internally but also externally. <o:p></o:p>

The nominations for new board members typically involve consultation with the president's office, adding a political dimension to the central bank's restructuring. <o:p></o:p>

The elections are crucial to President Yoon Suk Yeol's policy agenda, shaping the economic landscape for the remainder of his term until 2027.<o:p></o:p>

Real estate concerns prompt caution<o:p></o:p>

The BOK, amidst the board reshuffle, is likely to grapple with credit risks associated with the real estate market. <o:p></o:p>

Hong points out that concerns related to the real estate sector influenced the bank's decision to slow the pace of tightening and maintain the interest rate at 3.5 per cent for most of 2023. <o:p></o:p>

Challenges in the construction industry, exemplified by the financial troubles of companies like Taeyoung Engineering &amp; Construction Co., continue to test the board's direction in policymaking.<o:p></o:p>

Divergent views on interest rates<o:p></o:p>

Divergent views on interest rates within the BOK are evident, with an unidentified board member suggesting a possible rate cut in the next three months, a proposition Governor Rhee pushed back against, stating it would be challenging in the first half of 2024. <o:p></o:p>

Hong Kyungsik aligns with Rhee's perspective, emphasising that it is too early for the BOK to pivot, considering the ongoing fight against inflation. <o:p></o:p>

Persistent risks and economic factors<o:p></o:p>

Hong warns that despite the easing of inflationary pressures, risks remain. <o:p></o:p>

Factors such as foreign exchange rates, critical for a country heavily reliant on imports, pose challenges. <o:p></o:p>

The depreciation of the won led the BOK to implement a larger-than-usual rate hike in late 2022. Consumer expectations for inflation, measured by an index, increased last month, adding to concerns. <o:p></o:p>

A resurgence in household debt further supports the case for continued efforts against potential asset bubbles. <o:p></o:p>

Government measures to boost the housing market clash with central bank efforts to curb debt appetite. <o:p></o:p>

Inflation figures for February are eagerly awaited, set for release early Wednesday.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

South Korea's Central Bank, the Bank of Korea (BOK), is undergoing a shakeup in its policy board, raising concerns about future efforts to control inflation, warns a former policy director.

South Korea's Central Bank, the Bank of Korea (BOK), is undergoing a shakeup in its policy board, raising concerns about future efforts to control inflation, warns a former policy director. According to Bloomberg News, the impending departure of key members, Cho Yun-je and Suh Young Kyung, who played pivotal roles in the decision to raise interest rates in August 2021, is leaving the BOK with a leadership vacuum in the face of potential economic challenges. This development adds an element of unpredictability to the BOK's strategy in tamping down price pressure in case it resurfaces, given the departure of experienced figures who witnessed the adverse effects of aggressively eased policies. Early inflation fighters bid farewell The BOK's board reorganisation is part of one of the most substantial overhauls in years. Cho Yun-je and Suh Young Kyung, the only remaining members from the board that initiated the key interest rate hike in August 2021, are set to complete their four-year terms in April. Hong Kyungsik, the recently retired director general of the monetary policy department, emphasises their crucial role, stating, "They were there to witness the adverse effects of aggressively eased policy." Leadership vacuum raises concerns The departure of key figures from the BOK's board raises concerns about the institution's ability to navigate future challenges. Hong Kyungsik, who observed the decision-making process leading to the exit from the record-low rate of 0.5 per cent, notes the value of the experience in addressing financial imbalances in an ultra-low-rate environment. With Cho and Suh leaving, Governor Rhee Chang-yong and board member Shin Sung Hwan will be the sole members with pre-2023 experience, potentially heightening uncertainties in the board's decision-making process. Economic challenges and political landscape As South Korea gears up for parliamentary elections in April, the BOK faces challenges not only internally but also externally. The nominations for new board members typically involve consultation with the president's office, adding a political dimension to the central bank's restructuring. The elections are crucial to President Yoon Suk Yeol's policy agenda, shaping the economic landscape for the remainder of his term until 2027. Real estate concerns prompt caution The BOK, amidst the board reshuffle, is likely to grapple with credit risks associated with the real estate market. Hong points out that concerns related to the real estate sector influenced the bank's decision to slow the pace of tightening and maintain the interest rate at 3.5 per cent for most of 2023. Challenges in the construction industry, exemplified by the financial troubles of companies like Taeyoung Engineering & Construction Co., continue to test the board's direction in policymaking. Divergent views on interest rates Divergent views on interest rates within the BOK are evident, with an unidentified board member suggesting a possible rate cut in the next three months, a proposition Governor Rhee pushed back against, stating it would be challenging in the first half of 2024. Hong Kyungsik aligns with Rhee's perspective, emphasising that it is too early for the BOK to pivot, considering the ongoing fight against inflation. Persistent risks and economic factors Hong warns that despite the easing of inflationary pressures, risks remain. Factors such as foreign exchange rates, critical for a country heavily reliant on imports, pose challenges. The depreciation of the won led the BOK to implement a larger-than-usual rate hike in late 2022. Consumer expectations for inflation, measured by an index, increased last month, adding to concerns. A resurgence in household debt further supports the case for continued efforts against potential asset bubbles. Government measures to boost the housing market clash with central bank efforts to curb debt appetite. Inflation figures for February are eagerly awaited, set for release early Wednesday. (With inputs from Bloomberg)

Bank of Korea faces uncertainties amidst board shuffle, warns ex-director

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US&nbsp;spot exchange-traded crypto products and the prospect that global interest rates may fall.

The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792.

“The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market."

Bitcoin's meteoric nearly 160 per cent&nbsp;ascent since October, of which 44 per cent&nbsp;came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-surges-beyond-68000-approaches-all-time-high-amid-record-inflows-696675">Bitcoin surges beyond $68,000, approaches all-time high amid record inflows</a>

Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data.

"We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors.

<h2>RISK ON</h2>

In addition to demand from a wider pool of investors,&nbsp;bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile.

“One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&amp;P 500 and Nasdaq."

Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year.

Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US&nbsp;interest rate cut in June.

"(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.”

Analysts say&nbsp;bitcoin&nbsp;also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners.

Supply of&nbsp;bitcoin&nbsp;is limited to 21 million, of which 19 million have already been mined.

Despite its recent popularity, for many investors,&nbsp;bitcoin&nbsp;is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset.

Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained&nbsp;bitcoin&nbsp;supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-plummets-to-40000-hits-lowest-point-since-etf-debut-682753">Bitcoin plummets to $40,000, hits lowest point since ETF debut</a>

In February, software firm MicroStrategy - a long time holder of&nbsp;bitcoin&nbsp;- said it had recently bought about 3,000 more&nbsp;bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of&nbsp;bitcoin&nbsp;and ether.

On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as&nbsp;bitcoin&nbsp;and ether.

The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021.

"Active trader positioning in&nbsp;bitcoin&nbsp;now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments.

Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent&nbsp;and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent&nbsp;and 11.1 per cent, respectively.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall. The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792. “The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market." Bitcoin's meteoric nearly 160 per cent ascent since October, of which 44 per cent came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal. Also Read | Bitcoin surges beyond $68,000, approaches all-time high amid record inflows Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data. "We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors. RISK ON In addition to demand from a wider pool of investors, bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile. “One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&P 500 and Nasdaq." Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year. Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US interest rate cut in June. "(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.” Analysts say bitcoin also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners. Supply of bitcoin is limited to 21 million, of which 19 million have already been mined. Despite its recent popularity, for many investors, bitcoin is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset. Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained bitcoin supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers. Also Read | Bitcoin plummets to $40,000, hits lowest point since ETF debut In February, software firm MicroStrategy - a long time holder of bitcoin - said it had recently bought about 3,000 more bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether. On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as bitcoin and ether. The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021. "Active trader positioning in bitcoin now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments. Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent and 11.1 per cent, respectively.

Bitcoin reaches new record high, tops $69,000 as investors cheer ETFs, rate prospects

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market. <o:p></o:p>

In a Bloomberg Television interview, Mossavar-Rahmani acknowledged the common perception of China's apparent cheapness but emphasised, "Our view is that one should not invest in China."<o:p></o:p>

Citing multiple reasons for this stance, Mossavar-Rahmani expressed concerns about China's economic trajectory over the next decade. <o:p></o:p>

She highlighted anticipated challenges in the three pillars of China's growth - the property market, infrastructure, and exports. <o:p></o:p>

Additionally, a lack of clarity in China's policymaking, coupled with inconsistent economic data, further raises apprehensions about investing in the country.<o:p></o:p>

The Goldman Sachs executive pointed out uncertainties in China's policy direction, particularly regarding information security measures and restrictions on data removal from the nation. <o:p></o:p>

The recent suspension of some unemployment figures by the statistics bureau and the discontinuation of annual press briefings by China's premier have contributed to the lack of clarity. <o:p></o:p>

Mossavar-Rahmani noted, "It is not clear what the overall general direction of policy will be long term," adding that such policy uncertainties can cap the equity market.<o:p></o:p>

China's benchmark CSI 300 Index experienced a significant dip last month, hitting a five-year low amid concerns about domestic demand and escalating geopolitical tensions. <o:p></o:p>

While it has rebounded after regulatory interventions, Mossavar-Rahmani remains sceptical. <o:p></o:p>

She anticipates potential short-term stimulus measures but suggests that China's real estate sector has not yet stabilised. <o:p></o:p>

Expressing doubt about China's official economic expansion figures, she highlighted the lack of clarity in economic data, resonating with concerns among several economists.<o:p></o:p>

Despite China's formal publication of a growth rate above 5 per cent for 2023, Mossavar-Rahmani stated, "most people think that is not the real growth number — it was actually a lot weaker." <o:p></o:p>

She concluded by reiterating Goldman Sachs' cautious stance, emphasising that they do not recommend clients move into China at this point.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market.

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market. In a Bloomberg Television interview, Mossavar-Rahmani acknowledged the common perception of China's apparent cheapness but emphasised, "Our view is that one should not invest in China." Citing multiple reasons for this stance, Mossavar-Rahmani expressed concerns about China's economic trajectory over the next decade. She highlighted anticipated challenges in the three pillars of China's growth - the property market, infrastructure, and exports. Additionally, a lack of clarity in China's policymaking, coupled with inconsistent economic data, further raises apprehensions about investing in the country. The Goldman Sachs executive pointed out uncertainties in China's policy direction, particularly regarding information security measures and restrictions on data removal from the nation. The recent suspension of some unemployment figures by the statistics bureau and the discontinuation of annual press briefings by China's premier have contributed to the lack of clarity. Mossavar-Rahmani noted, "It is not clear what the overall general direction of policy will be long term," adding that such policy uncertainties can cap the equity market. China's benchmark CSI 300 Index experienced a significant dip last month, hitting a five-year low amid concerns about domestic demand and escalating geopolitical tensions. While it has rebounded after regulatory interventions, Mossavar-Rahmani remains sceptical. She anticipates potential short-term stimulus measures but suggests that China's real estate sector has not yet stabilised. Expressing doubt about China's official economic expansion figures, she highlighted the lack of clarity in economic data, resonating with concerns among several economists. Despite China's formal publication of a growth rate above 5 per cent for 2023, Mossavar-Rahmani stated, "most people think that is not the real growth number — it was actually a lot weaker." She concluded by reiterating Goldman Sachs' cautious stance, emphasising that they do not recommend clients move into China at this point. (With inputs from Bloomberg)

Goldman Sachs Wealth Management cautions against investing in China. Here’s why

The Federal Aviation Administration (FAA) has thrown a wrench into Boeing's plans, revealing multiple instances of alleged non-compliance with manufacturing quality control requirements during a 737 MAX production audit. <o:p></o:p>

The audit scrutinised both Boeing and its supplier, Spirit AeroSystems, identifying issues in manufacturing process control, parts handling, storage, and overall product control. <o:p></o:p>

While the FAA did not specify corrective actions, the findings prompted a statement from Spirit AeroSystems, indicating ongoing discussions with Boeing and the FAA regarding "appropriate corrective actions".<o:p></o:p>

Boeing responded, acknowledging the findings and saying that it was rectifying the situation. <o:p></o:p>

The aerospace giant is currently engaged in talks to acquire Spirit AeroSystems, a former subsidiary it spun off in 2005. <o:p></o:p>

The FAA's audit was instigated by a mid-air emergency on January 5 involving an Alaska Airlines 737 MAX 9, which lost a door plug at 16,000 feet. <o:p></o:p>

Following the incident, the FAA barred Boeing from expanding 737 production, deeming the "unacceptable" quality assurance issues a cause for concern.<o:p></o:p>

FAA Administrator Mike Whitaker previously urged Boeing to develop a comprehensive plan addressing "systemic quality-control issues" within 90 days, highlighting the need for "real and profound improvements." <o:p></o:p>

The FAA audit aims to scrutinise the entire production process and identify faults, intending to hold Boeing accountable for improvements. <o:p></o:p>

The incident involving a missing door plug prompted a grounding of the MAX 9 for several weeks in January.<o:p></o:p>

The FAA's investigation into the mid-air emergency incident includes determining the manufacturing documents used for authorising the opening and closing of the door plug during the aircraft's construction. <o:p></o:p>

In a management shakeup last month, Ed Clark, the head of Boeing's 737 MAX program, was abruptly removed. <o:p></o:p>

The FAA's scrutiny follows a history of Boeing quality lapses, including a $6.6 million fine paid in 2021 as part of a settlement over safety-oversight lapses. <o:p></o:p>

In December, the FAA urged airlines to inspect MAX planes for loose bolts in the rudder control system, further highlighting the ongoing concerns regarding Boeing's manufacturing quality.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The Federal Aviation Administration (FAA) has thrown a wrench into Boeing's plans, revealing multiple instances of alleged non-compliance with manufacturing quality control requirements during a 737 MAX production audit.

The Federal Aviation Administration (FAA) has thrown a wrench into Boeing's plans, revealing multiple instances of alleged non-compliance with manufacturing quality control requirements during a 737 MAX production audit. The audit scrutinised both Boeing and its supplier, Spirit AeroSystems, identifying issues in manufacturing process control, parts handling, storage, and overall product control. While the FAA did not specify corrective actions, the findings prompted a statement from Spirit AeroSystems, indicating ongoing discussions with Boeing and the FAA regarding "appropriate corrective actions". Boeing responded, acknowledging the findings and saying that it was rectifying the situation. The aerospace giant is currently engaged in talks to acquire Spirit AeroSystems, a former subsidiary it spun off in 2005. The FAA's audit was instigated by a mid-air emergency on January 5 involving an Alaska Airlines 737 MAX 9, which lost a door plug at 16,000 feet. Following the incident, the FAA barred Boeing from expanding 737 production, deeming the "unacceptable" quality assurance issues a cause for concern. FAA Administrator Mike Whitaker previously urged Boeing to develop a comprehensive plan addressing "systemic quality-control issues" within 90 days, highlighting the need for "real and profound improvements." The FAA audit aims to scrutinise the entire production process and identify faults, intending to hold Boeing accountable for improvements. The incident involving a missing door plug prompted a grounding of the MAX 9 for several weeks in January. The FAA's investigation into the mid-air emergency incident includes determining the manufacturing documents used for authorising the opening and closing of the door plug during the aircraft's construction. In a management shakeup last month, Ed Clark, the head of Boeing's 737 MAX program, was abruptly removed. The FAA's scrutiny follows a history of Boeing quality lapses, including a $6.6 million fine paid in 2021 as part of a settlement over safety-oversight lapses. In December, the FAA urged airlines to inspect MAX planes for loose bolts in the rudder control system, further highlighting the ongoing concerns regarding Boeing's manufacturing quality. (With inputs from Reuters)

FAA cracks down on Boeing 737 MAX production, citing quality control failures

Bitcoin has experienced a remarkable rally, hitting a two-year high on Monday and surpassing the $68,000 mark, bringing it close to its all-time high. <o:p></o:p>

According to Reuters, the cryptocurrency reached a session peak of $68,580, with the latest recorded value standing at $68,161. <o:p></o:p>

This surge follows a 50 per cent gain in Bitcoin's value this year, primarily driven by significant inflows into US-listed Bitcoin funds, especially in recent weeks.<o:p></o:p>

"The flows are not drying up as investors feel more confident the higher price appears to go," remarked Markus Thielen, head of research at 10x Research in Singapore. <o:p></o:p>

The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have played a pivotal role in attracting new large investors. <o:p></o:p>

This development has reignited enthusiasm and momentum, reminiscent of Bitcoin's run-up to record levels in 2021.<o:p></o:p>

Net flows into the top 10 US spot bitcoin funds totalled $2.17 billion in the week ending March 1, with over half of this capital directed towards BlackRock's iShares Bitcoin Trust, according to data from LSEG. <o:p></o:p>

The surge in Bitcoin's value has also influenced other cryptocurrencies, with Ethereum (ETH) experiencing a 50 per cent year-to-date increase. <o:p></o:p>

On Monday, Ethereum traded at two-year highs, marking a 2.6 per cent daily increase and reaching $3,518.<o:p></o:p>

This crypto rally coincides with records being shattered across traditional stock indexes, from Japan's Nikkei to the S&amp;P 500 and the tech-heavy Nasdaq. <o:p></o:p>

Simultaneously, volatility indicators in equities and foreign exchange have trended lower. <o:p></o:p>

Brent Donnelly, trader and president at Spectra Markets, commented on the market dynamics, stating, "In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer." <o:p></o:p>

He noted a return to a market reminiscent of 2021, where positive sentiment prevails, and all asset classes experience upward momentum.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Bitcoin has experienced a remarkable rally, hitting a two-year high on Monday and surpassing the $68,000 mark, bringing it close to its all-time high. According to Reuters, the cryptocurrency reached a session peak of $68,580, with the latest recorded value standing at $68,161.

Bitcoin has experienced a remarkable rally, hitting a two-year high on Monday and surpassing the $68,000 mark, bringing it close to its all-time high. According to Reuters, the cryptocurrency reached a session peak of $68,580, with the latest recorded value standing at $68,161. This surge follows a 50 per cent gain in Bitcoin's value this year, primarily driven by significant inflows into US-listed Bitcoin funds, especially in recent weeks. "The flows are not drying up as investors feel more confident the higher price appears to go," remarked Markus Thielen, head of research at 10x Research in Singapore. The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have played a pivotal role in attracting new large investors. This development has reignited enthusiasm and momentum, reminiscent of Bitcoin's run-up to record levels in 2021. Net flows into the top 10 US spot bitcoin funds totalled $2.17 billion in the week ending March 1, with over half of this capital directed towards BlackRock's iShares Bitcoin Trust, according to data from LSEG. The surge in Bitcoin's value has also influenced other cryptocurrencies, with Ethereum (ETH) experiencing a 50 per cent year-to-date increase. On Monday, Ethereum traded at two-year highs, marking a 2.6 per cent daily increase and reaching $3,518. This crypto rally coincides with records being shattered across traditional stock indexes, from Japan's Nikkei to the S&P 500 and the tech-heavy Nasdaq. Simultaneously, volatility indicators in equities and foreign exchange have trended lower. Brent Donnelly, trader and president at Spectra Markets, commented on the market dynamics, stating, "In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer." He noted a return to a market reminiscent of 2021, where positive sentiment prevails, and all asset classes experience upward momentum. (With inputs from Reuters)

Bitcoin surges beyond $68,000, approaches all-time high amid record inflows

The State Bank of India (SBI), a state-run lender, has formally requested the Supreme Court to extend the deadline for sharing Electoral Bond data from March 6 to June 30. <o:p></o:p>

This comes in response to the Supreme Court's directive to SBI to disclose details of Electoral Bond donations and the names of political parties receiving contributions by the initial deadline. <o:p></o:p>

The Supreme Court further instructed the Election Commission to publish this information on its website by March 13, 2024.<o:p></o:p>

SBI, in its application before the Supreme Court, argues that the process of retrieving information from various sources and matching data across different silos is time-consuming. <o:p></o:p>

The bank highlights the complexity of decoding Electoral Bonds while maintaining the donors' anonymity. <o:p></o:p>

The data related to the issuance and redemption of the bonds is reportedly stored in separate silos, without a central database, to safeguard donor identities. <o:p></o:p>

The sealed covers containing donor details are deposited at the Main Branch of the Applicant bank in Mumbai. <o:p></o:p>

SBI highlights that unravelling this process requires additional time beyond the initial March 6 deadline.<o:p></o:p>

The Supreme Court's decision on February 15 dealt a significant blow to the Electoral Bond scheme for political funding. <o:p></o:p>

The ruling declared the scheme unconstitutional, citing violations of the Constitutional right to freedom of speech and expression, as well as the right to information. <o:p></o:p>

This decision marked a pivotal moment in India's political and financial landscape, challenging the legality of the Electoral Bond system introduced by former finance minister Arun Jaitley in the Union Budget 2017-18.<o:p></o:p>

Electoral Bonds, conceived as a financial instrument for political party donations, now find themselves under intense scrutiny. <o:p></o:p>

The scheme allows citizens of India and domestic companies to contribute to political parties through bonds issued in varying denominations – Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. <o:p></o:p>

The anonymity of donors was a central tenet of the scheme, with donor details kept in sealed covers at designated branches. <o:p></o:p>

(With inputs from agencies)<o:p></o:p>

The State Bank of India (SBI), a state-run lender, has formally requested the Supreme Court to extend the deadline for sharing Electoral Bond data from March 6 to June 30.

The State Bank of India (SBI), a state-run lender, has formally requested the Supreme Court to extend the deadline for sharing Electoral Bond data from March 6 to June 30. This comes in response to the Supreme Court's directive to SBI to disclose details of Electoral Bond donations and the names of political parties receiving contributions by the initial deadline. The Supreme Court further instructed the Election Commission to publish this information on its website by March 13, 2024. SBI, in its application before the Supreme Court, argues that the process of retrieving information from various sources and matching data across different silos is time-consuming. The bank highlights the complexity of decoding Electoral Bonds while maintaining the donors' anonymity. The data related to the issuance and redemption of the bonds is reportedly stored in separate silos, without a central database, to safeguard donor identities. The sealed covers containing donor details are deposited at the Main Branch of the Applicant bank in Mumbai. SBI highlights that unravelling this process requires additional time beyond the initial March 6 deadline. The Supreme Court's decision on February 15 dealt a significant blow to the Electoral Bond scheme for political funding. The ruling declared the scheme unconstitutional, citing violations of the Constitutional right to freedom of speech and expression, as well as the right to information. This decision marked a pivotal moment in India's political and financial landscape, challenging the legality of the Electoral Bond system introduced by former finance minister Arun Jaitley in the Union Budget 2017-18. Electoral Bonds, conceived as a financial instrument for political party donations, now find themselves under intense scrutiny. The scheme allows citizens of India and domestic companies to contribute to political parties through bonds issued in varying denominations – Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. The anonymity of donors was a central tenet of the scheme, with donor details kept in sealed covers at designated branches. (With inputs from agencies)

India’s SBI urges Supreme Court for electoral bond data extension until June 30

In a move to capitalise on the resurgent demand for premium travel, American Airlines announced its most substantial plane order since 2011 on Monday, securing a deal for 260 new jets from Airbus, Boeing, and Embraer.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The ambitious order includes 85 Airbus A321neo jets, 85 Boeing 737 MAX 10s, and 90 Embraer E175 aircraft, accompanied by options and purchase rights for an additional 193 planes.<o:p></o:p>

American Airlines' CEO, Robert Isom, optimistically noted, "(Travel) demand is back." <o:p></o:p>

The order is a significant boost for Boeing, which has faced challenges, notably after the Jan 5 incident where a door plug blew off a 737 MAX plane mid-flight, raising concerns about its certification. <o:p></o:p>

The order includes the MAX 10, American Airlines’ first-ever order for this variant.<o:p></o:p>

American's chief financial officer, Devon May, expressed confidence in Boeing, saying that the airline has trust in the aircraft manufacturer. <o:p></o:p>

The MAX 10 delivery is scheduled for 2028, with flexibility for conversion into MAX 8 or MAX 9 if necessary. <o:p></o:p>

May also confirmed negotiations with Airbus for options in case of delays.<o:p></o:p>

While American Airlines shares experienced a 5.4 per cent decline to close at $14.81 on Monday, the new plane order is anticipated to enhance the airline's capacity for high-margin premium seats on domestic and short-haul international routes. <o:p></o:p>

The move aligns with industry trends, as major carriers like American, United, and Delta Air Lines have witnessed increased demand for premium travel post-pandemic.<o:p></o:p>

The order is not only about expanding the fleet but is a strategic play to boost revenue from co-branded credit cards. <o:p></o:p>

American Airlines plans to leverage these programs as cash generators through the sale of miles to third-party partners. <o:p></o:p>

The company anticipates a significant jump in profit margin, aiming for 15-18 per cent in 2026, up from the estimated 14 per cent for the current year, resulting in a free cash flow exceeding $3 billion.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a move to capitalise on the resurgent demand for premium travel, American Airlines announced its most substantial plane order since 2011 on Monday, securing a deal for 260 new jets from Airbus, Boeing, and Embraer.

In a move to capitalise on the resurgent demand for premium travel, American Airlines announced its most substantial plane order since 2011 on Monday, securing a deal for 260 new jets from Airbus, Boeing, and Embraer. This is based on a Reuters report. The ambitious order includes 85 Airbus A321neo jets, 85 Boeing 737 MAX 10s, and 90 Embraer E175 aircraft, accompanied by options and purchase rights for an additional 193 planes. American Airlines' CEO, Robert Isom, optimistically noted, "(Travel) demand is back." The order is a significant boost for Boeing, which has faced challenges, notably after the Jan 5 incident where a door plug blew off a 737 MAX plane mid-flight, raising concerns about its certification. The order includes the MAX 10, American Airlines’ first-ever order for this variant. American's chief financial officer, Devon May, expressed confidence in Boeing, saying that the airline has trust in the aircraft manufacturer. The MAX 10 delivery is scheduled for 2028, with flexibility for conversion into MAX 8 or MAX 9 if necessary. May also confirmed negotiations with Airbus for options in case of delays. While American Airlines shares experienced a 5.4 per cent decline to close at $14.81 on Monday, the new plane order is anticipated to enhance the airline's capacity for high-margin premium seats on domestic and short-haul international routes. The move aligns with industry trends, as major carriers like American, United, and Delta Air Lines have witnessed increased demand for premium travel post-pandemic. The order is not only about expanding the fleet but is a strategic play to boost revenue from co-branded credit cards. American Airlines plans to leverage these programs as cash generators through the sale of miles to third-party partners. The company anticipates a significant jump in profit margin, aiming for 15-18 per cent in 2026, up from the estimated 14 per cent for the current year, resulting in a free cash flow exceeding $3 billion. (With inputs from Reuters)

American Airlines takes flight into the future with largest plane order in 10 years

<o:p></o:p>

Premier Li Qiang outlined ambitious plans for China's economic future during his maiden work report at the National People's Congress on Tuesday. <o:p></o:p>

According to Reuters, China is targeting a growth rate of around 5 per cent this year, highlighting the need for a transformative shift in its development model. <o:p></o:p>

The premier addressed concerns of deep structural imbalances, a property crisis, deflation, and mounting local government debt.<o:p></o:p>

"We must push ahead with transforming the growth model, making structural adjustments, improving quality, and enhancing performance," Reuters quoted him as saying.<o:p></o:p>

The growth target mirrors last year's, but achieving it will require stronger government stimulus, given the economy's reliance on state infrastructure investment. <o:p></o:p>

A sluggish post-COVID recovery has exposed China's structural weaknesses, prompting calls for a new development model. <o:p></o:p>

Li acknowledged the challenges, saying, “We should not lose sight of worst-case scenarios and should be well prepared for all risks and challenges."<o:p></o:p>

Analysts remain cautious about the effectiveness of China's plans. <o:p></o:p>

Chinese stocks recovered from earlier losses, and the yuan remained flat, indicating investor scepticism. <o:p></o:p>

Ben Bennett, Asia-Pacific investment strategist at Legal and General Investment Management, remarked, "That’s disappointing for those that hoped for a bigger push... There’s rhetorical support for local government debt and the property sector, but the key is how this is applied in practice."<o:p></o:p>

In pursuit of stable growth, China plans to run a budget deficit of 3 per cent of economic output, down from 3.8 per cent last year. <o:p></o:p>

Notably, it will issue 1 trillion yuan ($139 billion) in special ultra-long-term treasury bonds, a move not included in the budget. <o:p></o:p>

The government aims to lower its annual growth ambitions in the future, with the International Monetary Fund projecting China's economic growth at 4.6 per cent this year and further declining to about 3.5 per cent in 2028.<o:p></o:p>

The work report also addressed geopolitical concerns. <o:p></o:p>

China affirmed its commitment to reunification, dropping the term "peaceful reunification." <o:p></o:p>

Officials pledged to "resolutely oppose separatist activities aimed at 'Taiwan independence' and external interference." <o:p></o:p>

Defence spending will increase by 7.2 per cent, consistent with the previous year, marking the ninth consecutive single-digit annual increase. <o:p></o:p>

The defence budget is being closely monitored by neighbouring countries and the US due to rising tensions, especially concerning Taiwan.<o:p></o:p>

In the realm of technology and innovation, China remains committed to President Xi Jinping's vision of "new productive forces." <o:p></o:p>

The country plans to lift all foreign investment restrictions in the manufacturing sector and relax market access restrictions in service industries. <o:p></o:p>

Beijing will also focus on developing emerging industries, including quantum computing, big data, and artificial intelligence, striving for self-sufficiency in technology. <o:p></o:p>

However, some analysts express concerns about China's emphasis on high-tech manufacturing, fearing it may exacerbate industrial overcapacity and heighten trade tensions with the West.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Premier Li Qiang outlined ambitious plans for China's economic future during his maiden work report at the National People's Congress on Tuesday. According to Reuters, China is targeting a growth rate of around 5 per cent this year, highlighting the need for a transformative shift in its development model.

Premier Li Qiang outlined ambitious plans for China's economic future during his maiden work report at the National People's Congress on Tuesday. According to Reuters, China is targeting a growth rate of around 5 per cent this year, highlighting the need for a transformative shift in its development model. The premier addressed concerns of deep structural imbalances, a property crisis, deflation, and mounting local government debt. "We must push ahead with transforming the growth model, making structural adjustments, improving quality, and enhancing performance," Reuters quoted him as saying. The growth target mirrors last year's, but achieving it will require stronger government stimulus, given the economy's reliance on state infrastructure investment. A sluggish post-COVID recovery has exposed China's structural weaknesses, prompting calls for a new development model. Li acknowledged the challenges, saying, “We should not lose sight of worst-case scenarios and should be well prepared for all risks and challenges." Analysts remain cautious about the effectiveness of China's plans. Chinese stocks recovered from earlier losses, and the yuan remained flat, indicating investor scepticism. Ben Bennett, Asia-Pacific investment strategist at Legal and General Investment Management, remarked, "That’s disappointing for those that hoped for a bigger push... There’s rhetorical support for local government debt and the property sector, but the key is how this is applied in practice." In pursuit of stable growth, China plans to run a budget deficit of 3 per cent of economic output, down from 3.8 per cent last year. Notably, it will issue 1 trillion yuan ($139 billion) in special ultra-long-term treasury bonds, a move not included in the budget. The government aims to lower its annual growth ambitions in the future, with the International Monetary Fund projecting China's economic growth at 4.6 per cent this year and further declining to about 3.5 per cent in 2028. The work report also addressed geopolitical concerns. China affirmed its commitment to reunification, dropping the term "peaceful reunification." Officials pledged to "resolutely oppose separatist activities aimed at 'Taiwan independence' and external interference." Defence spending will increase by 7.2 per cent, consistent with the previous year, marking the ninth consecutive single-digit annual increase. The defence budget is being closely monitored by neighbouring countries and the US due to rising tensions, especially concerning Taiwan. In the realm of technology and innovation, China remains committed to President Xi Jinping's vision of "new productive forces." The country plans to lift all foreign investment restrictions in the manufacturing sector and relax market access restrictions in service industries. Beijing will also focus on developing emerging industries, including quantum computing, big data, and artificial intelligence, striving for self-sufficiency in technology. However, some analysts express concerns about China's emphasis on high-tech manufacturing, fearing it may exacerbate industrial overcapacity and heighten trade tensions with the West. (With inputs from Reuters)

China aims for economic transformation with 5pc growth target: Report

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday.

He said that India accounts for nearly 46 per cent&nbsp;of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years.

"The retail digital payments in India growing from 1.62 billion transactions in 2012-13 to over 147.26 billion transactions in 2023-24. The flagship of our payment systems, the UPI, has become the most talked about fast payment system not only in India but across the world," Das said&nbsp;at the Digital Payments Awareness Week event in Mumbai.

Calling Unified Payments Interface (UPI) the biggest contributor to the growth of the digital payments ecosystem, Das said that the share of the homegrown payment platform in digital payments has reached close to 80 per cent in 2023.

The central bank chief shared that the volume of UPI transactions has increased from 430 million in 2017 to 117.61 billion in 2023. He also noted that the time taken to reach the next 10 billion UPI transactions has progressively declined over the years.

It took 1,668 days for the first 10 billion Person-to-Merchant transactions, whereas the latest 10 billion milestone took just 45 days. Person-to-person transactions took 1,329 days to reach the first-ever 10 billion mark, while taking just 65 days for the latest 10 billion transactions.

Nevertheless, Das argued that there is significant scope for improvement in the digital payment ecosystem.&nbsp;

Through the “Har Payment Digital” Mission, he said, that the RBI is aiming to make every Indian adopt digital payments.

"Since the start of the mission in March 2023, 66.5 million new UPI users have been added up to January 31, 2024," the central bank governor said, while adding that the Payments Infrastructure Development Fund aided this growth.

This fund, created in January 2021 and extended up to December 2025, aims to increase the number of devices that accept digital payments in smaller cities and towns, strengthening India's digital payments system.&nbsp;

As per a 2023 RBI notification, the fund seeks to add 3 million payment devices every year.

Das also acknowledged bottlenecks in the internet banking infrastructure, especially when it comes to interoperability between banks and payment aggregators, leading to delays in payments and settlements.

He said that the RBI's 'Payments Vision 2025' aims to make internet banking transactions quicker and efficient.

"We have approved the implementation of an interoperable system to NPCI Bharat BillPay. We expect it to be launched during the current calendar year (2024-25)," the former Tamil Nadu-cadre bureaucrat said.

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday. He said that India accounts for nearly 46 per cent of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years.

Digital payments in India have recorded a 90-fold increase in the last 12 years, Reserve Bank of India governor Shaktikanta Das said on Monday. He said that India accounts for nearly 46 per cent of the world’s digital transactions, adding that this is reflected in the Reserve Bank's Digital Payment Index, which has seen a four-fold rise in the last five years. "The retail digital payments in India growing from 1.62 billion transactions in 2012-13 to over 147.26 billion transactions in 2023-24. The flagship of our payment systems, the UPI, has become the most talked about fast payment system not only in India but across the world," Das said at the Digital Payments Awareness Week event in Mumbai. Calling Unified Payments Interface (UPI) the biggest contributor to the growth of the digital payments ecosystem, Das said that the share of the homegrown payment platform in digital payments has reached close to 80 per cent in 2023. The central bank chief shared that the volume of UPI transactions has increased from 430 million in 2017 to 117.61 billion in 2023. He also noted that the time taken to reach the next 10 billion UPI transactions has progressively declined over the years. It took 1,668 days for the first 10 billion Person-to-Merchant transactions, whereas the latest 10 billion milestone took just 45 days. Person-to-person transactions took 1,329 days to reach the first-ever 10 billion mark, while taking just 65 days for the latest 10 billion transactions. Nevertheless, Das argued that there is significant scope for improvement in the digital payment ecosystem. Through the “Har Payment Digital” Mission, he said, that the RBI is aiming to make every Indian adopt digital payments. "Since the start of the mission in March 2023, 66.5 million new UPI users have been added up to January 31, 2024," the central bank governor said, while adding that the Payments Infrastructure Development Fund aided this growth. This fund, created in January 2021 and extended up to December 2025, aims to increase the number of devices that accept digital payments in smaller cities and towns, strengthening India's digital payments system. As per a 2023 RBI notification, the fund seeks to add 3 million payment devices every year. Das also acknowledged bottlenecks in the internet banking infrastructure, especially when it comes to interoperability between banks and payment aggregators, leading to delays in payments and settlements. He said that the RBI's 'Payments Vision 2025' aims to make internet banking transactions quicker and efficient. "We have approved the implementation of an interoperable system to NPCI Bharat BillPay. We expect it to be launched during the current calendar year (2024-25)," the former Tamil Nadu-cadre bureaucrat said.

RBI Governor Shaktikanta Das hails UPI. Here's what he said

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities.

The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes. However, concerns persist as some indicators point to a more nuanced picture.

Shifting tides in the US

In 2022, the Fed aggressively raised interest rates to combat inflation, leading to a surge in US Treasury yields and a subsequent influx of international capital back into the US. This, in turn, triggered a dollar shortage in other countries, impacting global markets.

However, 2023 witnessed a change in stance. As inflation showed signs of abating, the Fed softened its approach, raising rates at a slower pace and hinting at potential cuts in the future. This, coupled with a decline in Treasury yields, has led to a partial easing of the dollar shortage and a subsequent rally in global stocks and bonds.

Mixed foreign investment landscape

While there are signs of shifting sentiment among global investors, claiming a complete resolution to the dollar shortage would be premature. Despite a record high of over $8 trillion in US Treasury holdings by foreign investors in 2023, a closer look reveals that this was primarily driven by falling Treasury rates, not a significant increase in foreign purchases.

Net international capital inflows into the US have decreased year-on-year.

China's decreasing appetite for US debt adds another layer of complexity. While recent months have seen slight increases in Chinese holdings, this is attributed to valuation effects due to declining Treasury rates, not actual investment growth.

However, China's foreign direct investment (FDI) in the US has exhibited a different trend. The fourth quarter of 2023 saw a surge back into surplus territory, dispelling concerns about capital flight. It's crucial to note that interpreting FDI data requires caution due to the different measurement methods employed by China.

While the overall FDI surplus in China has decreased significantly year-on-year, the decline can be attributed mainly to a reduction in reinvestment of profits by foreign enterprises, not necessarily capital withdrawal.

The Bottom Line

The global dollar shortage appears to be easing somewhat, with the US Federal Reserve's changing stance playing a significant role. However, the situation remains fluid, with mixed signals emerging from various indicators, particularly regarding China's financial decisions.

Further observation and analysis are needed to determine the long-term trajectory of the dollar shortage.

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities. The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes.

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities. The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes. However, concerns persist as some indicators point to a more nuanced picture. Shifting tides in the US In 2022, the Fed aggressively raised interest rates to combat inflation, leading to a surge in US Treasury yields and a subsequent influx of international capital back into the US. This, in turn, triggered a dollar shortage in other countries, impacting global markets. However, 2023 witnessed a change in stance. As inflation showed signs of abating, the Fed softened its approach, raising rates at a slower pace and hinting at potential cuts in the future. This, coupled with a decline in Treasury yields, has led to a partial easing of the dollar shortage and a subsequent rally in global stocks and bonds. Mixed foreign investment landscape While there are signs of shifting sentiment among global investors, claiming a complete resolution to the dollar shortage would be premature. Despite a record high of over $8 trillion in US Treasury holdings by foreign investors in 2023, a closer look reveals that this was primarily driven by falling Treasury rates, not a significant increase in foreign purchases. Net international capital inflows into the US have decreased year-on-year. China's decreasing appetite for US debt adds another layer of complexity. While recent months have seen slight increases in Chinese holdings, this is attributed to valuation effects due to declining Treasury rates, not actual investment growth. However, China's foreign direct investment (FDI) in the US has exhibited a different trend. The fourth quarter of 2023 saw a surge back into surplus territory, dispelling concerns about capital flight. It's crucial to note that interpreting FDI data requires caution due to the different measurement methods employed by China. While the overall FDI surplus in China has decreased significantly year-on-year, the decline can be attributed mainly to a reduction in reinvestment of profits by foreign enterprises, not necessarily capital withdrawal. The Bottom Line The global dollar shortage appears to be easing somewhat, with the US Federal Reserve's changing stance playing a significant role. However, the situation remains fluid, with mixed signals emerging from various indicators, particularly regarding China's financial decisions. Further observation and analysis are needed to determine the long-term trajectory of the dollar shortage.

Global dollar shortage shows signs of easing, but concerns remain

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days. This rapid growth has sent shockwaves through financial markets and raised critical questions about the nation's long-term fiscal health.

Adding fuel to the fire, credit rating agency Moody's Investors Service recently downgraded its outlook on US government debt. Their reasoning? The rising debt levels and the potential for large deficits in the future pose significant risks to the country's fiscal strength.

Economists echo these concerns, highlighting the potential challenges associated with servicing this growing debt, especially in a climate of rising interest rates. The US government could face difficulties borrowing money without adequate measures to curb spending or increase revenue. This scenario, dubbed "debasement", could significantly hamper the government's ability to function effectively.

The ripple effects of the US debt situation extend far beyond government offices. Financial markets are reacting, with investors seeking hedges against a potential weakening of the US dollar. This is evident in the rising prices of traditional safe-haven assets like gold, which has witnessed a 6% increase in the past six months. Bitcoin, often touted as a hedge against inflation and currency devaluation, has also seen a remarkable surge in 2024, reaching its highest level since November 2021. While factors like the recent approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event contribute to this enthusiasm, the underlying concern regarding the US debt situation plays a significant role.

The story doesn't end there. The US continues to grapple with high levels of government spending, with military expenditure remaining robust at 9.3% of GDP over the past four years. This raises crucial questions about the sustainability of such spending levels, particularly against the backdrop of a burgeoning debt burden. Projections suggest a concerning shift in budgetary priorities within the next five years. The US could be spending more on debt interest payments than on defence. This implies a potential for limited resources to invest in other critical areas, further highlighting the situation's complexities.

The looming possibility of a partial government shutdown in March due to budget disagreements adds another layer of uncertainty to this already complex issue. As the US navigates this challenging fiscal landscape, addressing the growing debt and implementing sustainable spending strategies remain crucial steps towards ensuring long-term economic stability.

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days.

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days. This rapid growth has sent shockwaves through financial markets and raised critical questions about the nation's long-term fiscal health. Adding fuel to the fire, credit rating agency Moody's Investors Service recently downgraded its outlook on US government debt. Their reasoning? The rising debt levels and the potential for large deficits in the future pose significant risks to the country's fiscal strength. Economists echo these concerns, highlighting the potential challenges associated with servicing this growing debt, especially in a climate of rising interest rates. The US government could face difficulties borrowing money without adequate measures to curb spending or increase revenue. This scenario, dubbed "debasement", could significantly hamper the government's ability to function effectively. The ripple effects of the US debt situation extend far beyond government offices. Financial markets are reacting, with investors seeking hedges against a potential weakening of the US dollar. This is evident in the rising prices of traditional safe-haven assets like gold, which has witnessed a 6% increase in the past six months. Bitcoin, often touted as a hedge against inflation and currency devaluation, has also seen a remarkable surge in 2024, reaching its highest level since November 2021. While factors like the recent approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event contribute to this enthusiasm, the underlying concern regarding the US debt situation plays a significant role. The story doesn't end there. The US continues to grapple with high levels of government spending, with military expenditure remaining robust at 9.3% of GDP over the past four years. This raises crucial questions about the sustainability of such spending levels, particularly against the backdrop of a burgeoning debt burden. Projections suggest a concerning shift in budgetary priorities within the next five years. The US could be spending more on debt interest payments than on defence. This implies a potential for limited resources to invest in other critical areas, further highlighting the situation's complexities. The looming possibility of a partial government shutdown in March due to budget disagreements adds another layer of uncertainty to this already complex issue. As the US navigates this challenging fiscal landscape, addressing the growing debt and implementing sustainable spending strategies remain crucial steps towards ensuring long-term economic stability.

America's mounting debt: A cause for concern?