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China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery.<o:p></o:p>

The National Bureau of Statistics revealed that the Consumer Price Index (CPI) experienced a 0.8 per cent year-on-year drop, marking the most significant decline since September 2009, following a 0.3 per cent decrease in December. <o:p></o:p>

Amid a challenging economic landscape, the CPI rose by 0.3 per cent month-on-month.<o:p></o:p>

Analysts had anticipated a 0.5 per cent year-on-year fall and a 0.4 per cent month-on-month gain, underscoring the severity of the economic headwinds.<o:p></o:p>

The persistent deflationary pressure depicted in China's CPI data underscores the urgency for decisive and swift actions by policymakers to prevent the entrenchment of deflationary expectations among consumers. <o:p></o:p>

Despite the official target of around 5 per cent economic growth being met in 2023, the recovery has been lacklustre. <o:p></o:p>

A contraction in factory activity in January, coupled with challenges like a property downturn, local government debt risks, and weak global demand, adds to the complexity of China's economic revival. <o:p></o:p>

Analysts emphasise the need for proactive measures to counter deflationary risks.<o:p></o:p>

China has grappled with slowing prices since early last year, leading policymakers to implement interest rate cuts to stimulate growth. <o:p></o:p>

The growth target for 2023 was achieved at 5 per cent, but the resilience of the recovery has been questioned. <o:p></o:p>

A growth target of around 5 per cent is anticipated for the current year. <o:p></o:p>

In late January, China's central bank announced its most substantial cut to bank reserves in two years, signalling robust support for the fragile economy. <o:p></o:p>

However, analysts stress the necessity for additional measures to boost confidence and demand effectively.<o:p></o:p>

Core inflation, excluding volatile food and energy prices, saw a 0.4 per cent gain from a year earlier, down from December's 0.6 per cent. <o:p></o:p>

Despite last year's CPI rising by 0.2 per cent, missing the official target of around 3 per cent, inflation has fallen short of annual targets for 12 consecutive years. <o:p></o:p>

Citigroup economists expect a mild reflation in 2024, forecasting annual CPI inflation at 1.2 per cent year-on-year. <o:p></o:p>

The cyclical drivers for CPI could shift in 2024, contingent on the return of consumer confidence, with the strength of reflation hinging on these factors.<o:p></o:p>

In addition to consumer prices, the Producer Price Index (PPI) recorded a 2.5 per cent year-on-year decline in January, following a 2.7 per cent fall in the previous month. <o:p></o:p>

Factory-gate prices experienced a 0.2 per cent month-on-month decrease. <o:p></o:p>

Prolonged factory deflation poses a significant threat to the survival of smaller Chinese exporters who find themselves embroiled in relentless price wars amid shrinking business opportunities.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery.

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery. The National Bureau of Statistics revealed that the Consumer Price Index (CPI) experienced a 0.8 per cent year-on-year drop, marking the most significant decline since September 2009, following a 0.3 per cent decrease in December. Amid a challenging economic landscape, the CPI rose by 0.3 per cent month-on-month. Analysts had anticipated a 0.5 per cent year-on-year fall and a 0.4 per cent month-on-month gain, underscoring the severity of the economic headwinds. The persistent deflationary pressure depicted in China's CPI data underscores the urgency for decisive and swift actions by policymakers to prevent the entrenchment of deflationary expectations among consumers. Despite the official target of around 5 per cent economic growth being met in 2023, the recovery has been lacklustre. A contraction in factory activity in January, coupled with challenges like a property downturn, local government debt risks, and weak global demand, adds to the complexity of China's economic revival. Analysts emphasise the need for proactive measures to counter deflationary risks. China has grappled with slowing prices since early last year, leading policymakers to implement interest rate cuts to stimulate growth. The growth target for 2023 was achieved at 5 per cent, but the resilience of the recovery has been questioned. A growth target of around 5 per cent is anticipated for the current year. In late January, China's central bank announced its most substantial cut to bank reserves in two years, signalling robust support for the fragile economy. However, analysts stress the necessity for additional measures to boost confidence and demand effectively. Core inflation, excluding volatile food and energy prices, saw a 0.4 per cent gain from a year earlier, down from December's 0.6 per cent. Despite last year's CPI rising by 0.2 per cent, missing the official target of around 3 per cent, inflation has fallen short of annual targets for 12 consecutive years. Citigroup economists expect a mild reflation in 2024, forecasting annual CPI inflation at 1.2 per cent year-on-year. The cyclical drivers for CPI could shift in 2024, contingent on the return of consumer confidence, with the strength of reflation hinging on these factors. In addition to consumer prices, the Producer Price Index (PPI) recorded a 2.5 per cent year-on-year decline in January, following a 2.7 per cent fall in the previous month. Factory-gate prices experienced a 0.2 per cent month-on-month decrease. Prolonged factory deflation poses a significant threat to the survival of smaller Chinese exporters who find themselves embroiled in relentless price wars amid shrinking business opportunities. (With inputs from Reuters)

China faces its biggest deflation threat since 2009 as consumer prices plummet

<o:p></o:p>Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters.<o:p></o:p>

With a 40 per cent surge in 2024, Nvidia's market capitalisation stands at $1.715 trillion, just 3 per cent short of Amazon's $1.767 trillion. <o:p></o:p>

Additionally, it is trailing closely behind Alphabet, Google's parent company, which boasts a $1.812 trillion valuation. <o:p></o:p>

The soaring trajectory of Nvidia's shares, rising 1.8 per cent to $694.48 after an optimistic report from Morgan Stanley, positions the AI giant as a formidable player in the market.<o:p></o:p>

Morgan Stanley's recent report has contributed to the positive sentiment surrounding Nvidia. <o:p></o:p>

Analyst Joseph Moore, in a client note, emphasised the surging demand for AI, prompting the firm to raise Nvidia's price target from $603 to $750. <o:p></o:p>

Nvidia, having tripled its stock value in 2023, now holds the fifth position among the most valuable companies in the US stock market. <o:p></o:p>

The company is gearing up to report its quarterly results on February 21, maintaining the spotlight on its robust performance.<o:p></o:p>

Nvidia's prominence in the AI landscape has been propelled by tech giants like Meta Platforms and others integrating its graphics processors into their products and services. <o:p></o:p>

The company has emerged as a top beneficiary in the race to infuse AI capabilities across various industries. <o:p></o:p>

Cloud-computing providers offering Nvidia's processors are witnessing high demand, leading to months-long waiting lists for AI developers. <o:p></o:p>

Morgan Stanley's Moore pointed out that while these wait times are gradually decreasing, the sustained demand underscores Nvidia's pivotal role in the AI ecosystem.<o:p></o:p>

This impending milestone for Nvidia marks the first time in two decades that it is on the verge of surpassing Amazon in market value. <o:p></o:p>

The last instance was in 2002 when both companies were valued under $6 billion. <o:p></o:p>

Microsoft's recent achievement in becoming the world's most valuable company, surpassing Apple, adds to the dynamic landscape of tech leaders vying for the top spots. <o:p></o:p>

While Nvidia's surge in market value is noteworthy, Saudi Aramco remains the world's third most valuable publicly listed company, with a market capitalisation of $2 trillion. <o:p></o:p>

However, it's essential to note that over 90 per cent of Saudi Aramco is closely held by the Saudi Arabian government, and less than 2 per cent of its shares are available for trading by investors. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters.

Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence, as reported by Reuters. With a 40 per cent surge in 2024, Nvidia's market capitalisation stands at $1.715 trillion, just 3 per cent short of Amazon's $1.767 trillion. Additionally, it is trailing closely behind Alphabet, Google's parent company, which boasts a $1.812 trillion valuation. The soaring trajectory of Nvidia's shares, rising 1.8 per cent to $694.48 after an optimistic report from Morgan Stanley, positions the AI giant as a formidable player in the market. Morgan Stanley's recent report has contributed to the positive sentiment surrounding Nvidia. Analyst Joseph Moore, in a client note, emphasised the surging demand for AI, prompting the firm to raise Nvidia's price target from $603 to $750. Nvidia, having tripled its stock value in 2023, now holds the fifth position among the most valuable companies in the US stock market. The company is gearing up to report its quarterly results on February 21, maintaining the spotlight on its robust performance. Nvidia's prominence in the AI landscape has been propelled by tech giants like Meta Platforms and others integrating its graphics processors into their products and services. The company has emerged as a top beneficiary in the race to infuse AI capabilities across various industries. Cloud-computing providers offering Nvidia's processors are witnessing high demand, leading to months-long waiting lists for AI developers. Morgan Stanley's Moore pointed out that while these wait times are gradually decreasing, the sustained demand underscores Nvidia's pivotal role in the AI ecosystem. This impending milestone for Nvidia marks the first time in two decades that it is on the verge of surpassing Amazon in market value. The last instance was in 2002 when both companies were valued under $6 billion. Microsoft's recent achievement in becoming the world's most valuable company, surpassing Apple, adds to the dynamic landscape of tech leaders vying for the top spots. While Nvidia's surge in market value is noteworthy, Saudi Aramco remains the world's third most valuable publicly listed company, with a market capitalisation of $2 trillion. However, it's essential to note that over 90 per cent of Saudi Aramco is closely held by the Saudi Arabian government, and less than 2 per cent of its shares are available for trading by investors. (With inputs from Reuters)

Nvidia's soaring value nears Amazon amid AI frenzy: Report

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;

RBI keeps interest rates steady at 6.5pc, revises GDP growth outlook for 2023-24

The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.5 per cent. This decision marks a continuation of the RBI's approach over the past year, where the repo rate has remained at 6.5 per cent since the last increase in February 2023.&nbsp;

<a href="https://www.wionews.com/business-economy/rbi-keeps-interest-rates-steady-at-65pc-revises-gdp-growth-outlook-for-2023-24-688105">Read more&nbsp;</a>

Nvidia's soaring value nears Amazon amid AI frenzy: Report

Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence.&nbsp;

<a href="https://www.wionews.com/business-economy/nvidias-soaring-value-nears-amazon-in-ai-frenzy-report-688103">Read more&nbsp;</a>

China faces its biggest deflation threat since 2009 as consumer prices plummet

China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery.

<a href="https://www.wionews.com/business-economy/china-faces-deepest-deflation-risks-since-2009-as-consumer-prices-plummet-688110">Read more&nbsp;</a>

Mexico surpasses China as top source of US imports amid global economic shifts

In a significant economic shift, Mexico has emerged as the leading source of goods imported to the United States, overtaking China for the first time in more than two decades.

<a href="here https://www.wionews.com/business-economy/mexico-surpasses-china-as-top-source-of-us-imports-amid-global-economic-shifts-688161">Read more</a>

Uncertainty looms over US treasury market as Fed signals caution

In a twist for the fixed-income market, uncertainty is making a comeback after the Federal Reserve's recent statements and robust economic data threw a curveball into expectations.

<a href="here https://www.wionews.com/business-economy/uncertainty-looms-over-us-treasury-market-as-fed-signals-caution-688134">Read more</a>

UAE's ADIA unveils ambitious $4-5bn investment plan in India via Gujarat's finance hub

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is preparing to launch a substantial $4-5 billion fund aimed at investing in India through the tax-neutral finance hub in Gujarat, known as Gujarat International Finance Tec-City (GIFT City).

<a href="here https://www.wionews.com/business-economy/uaes-adia-unveils-ambitious-4-5bn-investment-plan-in-india-via-gujarats-finance-hub-688141">Read more</a>

Snap faces investor backlash as ad revenue stumbles against tech giants Meta, Alphabet

In a staggering downturn, Snap, the parent company of Snapchat, witnessed a sharp decline of over 32 per cent in its shares on Wednesday, following disappointing fourth-quarter revenue results that fell short of Wall Street expectations.

<a href="https://www.wionews.com/business-economy/snap-faces-investor-backlash-as-ad-revenue-stumbles-against-tech-giants-meta-alphabet-688153">Read more</a>

German property market faces bleak outlook as TAG Immobilen warns of 30pc price decline

In a stark warning, TAG Immobilen, one of Germany's largest landlords, has forecasted that home prices in the country could plunge as much as 30 per cent below their 2022 peak, portraying a more pessimistic outlook than its counterparts.

<a href="here https://www.wionews.com/business-economy/german-property-market-faces-bleak-outlook-as-tag-immobilen-warns-of-30pc-price-decline-688156">Read more</a>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. RBI keeps interest rates steady at 6.5pc, revises GDP growth outlook for 2023-24 The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. RBI keeps interest rates steady at 6.5pc, revises GDP growth outlook for 2023-24 The Reserve Bank of India (RBI) has opted to maintain the status quo on interest rates, keeping the repo rates unchanged at 6.5 per cent. This decision marks a continuation of the RBI's approach over the past year, where the repo rate has remained at 6.5 per cent since the last increase in February 2023. Read more Nvidia's soaring value nears Amazon amid AI frenzy: Report Nvidia, the AI chipmaker, is on the verge of surpassing Amazon in market value, fuelled by Wall Street's fervour for artificial intelligence. Read more China faces its biggest deflation threat since 2009 as consumer prices plummet China encountered its deepest deflationary threat since 2009 as consumer prices witnessed a severe decline in January, highlighting the persistent challenges for the world's second-largest economy in its struggle for recovery. Read more Mexico surpasses China as top source of US imports amid global economic shifts In a significant economic shift, Mexico has emerged as the leading source of goods imported to the United States, overtaking China for the first time in more than two decades. Read more Uncertainty looms over US treasury market as Fed signals caution In a twist for the fixed-income market, uncertainty is making a comeback after the Federal Reserve's recent statements and robust economic data threw a curveball into expectations. Read more UAE's ADIA unveils ambitious $4-5bn investment plan in India via Gujarat's finance hub The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is preparing to launch a substantial $4-5 billion fund aimed at investing in India through the tax-neutral finance hub in Gujarat, known as Gujarat International Finance Tec-City (GIFT City). Read more Snap faces investor backlash as ad revenue stumbles against tech giants Meta, Alphabet In a staggering downturn, Snap, the parent company of Snapchat, witnessed a sharp decline of over 32 per cent in its shares on Wednesday, following disappointing fourth-quarter revenue results that fell short of Wall Street expectations. Read more German property market faces bleak outlook as TAG Immobilen warns of 30pc price decline In a stark warning, TAG Immobilen, one of Germany's largest landlords, has forecasted that home prices in the country could plunge as much as 30 per cent below their 2022 peak, portraying a more pessimistic outlook than its counterparts. Read more

WION Business Wrap | UAE's investment in India, Nvidia's valuation surge and more

Ride-hailing company Uber on Wednesday (Feb 7) reported its first annual net profit since going public in 2019.

The company reported net profit of USD 1.9 billion for the year 2023. In year 2022, Uber has reported net loss of USD 9.1 billion.

In its initial years under the stewardship of former CEO Travis Kalanick, Uber had witnessed tumultuous years as it defied regulators and amassed losses.

Current CEO Dara Khosrowshahi said 2023 "was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale.”

Uber's customer base was "larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year," he added.

Uber reported USD 37.3 billion in sales for 2023.

This was more than what Wall Street was expecting.&nbsp;

Increase in Uber's profits was attributed in part to its increasingly popular food delivery service.

Watch | Pakistan's economic pessimism hits record

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Although Uber's shares were slightly down on Wednesday, they have doubled in value over past year.

Uber said it would make announcements about returning capital to shareholders at its Investor Day on February 14.

Also Read | <a href="https://www.wionews.com/india-news/microsoft-to-provide-ai-skilling-skills-to-2-million-people-in-india-by-2025-satya-nadella-688015">Microsoft to provide AI skilling skills to 2 million people in India by 2025: Satya Nadella</a>

"Uber's platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4," Chief Financial Officer Prashanth Mahendra-Rajah said as quoted by Reuters.

Also Read | <a href="https://www.wionews.com/business-economy/wion-business-wrap-paytms-rising-competition-toyotas-recent-profits-and-more-687796">WION Business Wrap | Paytm’s rising competition, Toyota’s recent profits and more</a>

The company said that revenue from its ride-sharing business grew 34 per cent. This was attributed in part to "outsized trip growth" in Latin America and Asia Pacific markets.

"Management took the intrigue off the table for today in saying it will address capital return more formally at the investor day," said RBC Capital Markets analyst Brad Erickson, adding that those plans are top of investors' priority.

(With inputs from agencies)

Ride-hailing company Uber on Wednesday (Feb 7) reported its first annual net profit since going public in 2019. The company reported net profit of USD 1.9 billion for the year 2023.

Ride-hailing company Uber on Wednesday (Feb 7) reported its first annual net profit since going public in 2019. The company reported net profit of USD 1.9 billion for the year 2023. In year 2022, Uber has reported net loss of USD 9.1 billion. In its initial years under the stewardship of former CEO Travis Kalanick, Uber had witnessed tumultuous years as it defied regulators and amassed losses. Current CEO Dara Khosrowshahi said 2023 "was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale.” Uber's customer base was "larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year," he added. Uber reported USD 37.3 billion in sales for 2023. This was more than what Wall Street was expecting. Increase in Uber's profits was attributed in part to its increasingly popular food delivery service. Watch | Pakistan's economic pessimism hits record × Although Uber's shares were slightly down on Wednesday, they have doubled in value over past year. Uber said it would make announcements about returning capital to shareholders at its Investor Day on February 14. Also Read | Microsoft to provide AI skilling skills to 2 million people in India by 2025: Satya Nadella "Uber's platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4," Chief Financial Officer Prashanth Mahendra-Rajah said as quoted by Reuters. Also Read | WION Business Wrap | Paytm’s rising competition, Toyota’s recent profits and more The company said that revenue from its ride-sharing business grew 34 per cent. This was attributed in part to "outsized trip growth" in Latin America and Asia Pacific markets. "Management took the intrigue off the table for today in saying it will address capital return more formally at the investor day," said RBC Capital Markets analyst Brad Erickson, adding that those plans are top of investors' priority. (With inputs from agencies)

Uber reports first annual net profit since going public

<o:p></o:p>Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.<o:p></o:p>

This is based on a report published by Bloomberg.<o:p></o:p>

The bank announced a net profit of S$2.39 billion ($1.78 billion) in the quarter ending December 31, marking a modest 2 per cent increase, amidst margin pressure. <o:p></o:p>

While slightly below analyst estimates, DBS proposed a bonus share issue and increased its final dividend. <o:p></o:p>

For the entirety of 2023, the bank surpassed its medium-term net profit target of S$10 billion, achieving a return on equity of 18 per cent, leading to a surge in DBS shares.<o:p></o:p>

However, last year's digital banking outages prompted a collective 21 per cent cut in variable pay for DBS' group management committee, with CEO Gupta experiencing a deeper 30 per cent reduction amounting to S$4.1 million.<o:p></o:p>

DBS's stellar performance comes amid a challenging backdrop as it grapples with the aftermath of digital banking disruptions that paralysed payment and ATM transactions across Singapore last year. <o:p></o:p>

The repercussions of these outages have led to regulatory actions, with the Monetary Authority of Singapore imposing a six-month ban on DBS from acquiring new business ventures and reducing its local branch and ATM networks. <o:p></o:p>

Despite Gupta's public apologies and assurances of prioritising the resolution of digital banking issues, the bank faced scrutiny over service reliability. <o:p></o:p>

However, DBS reiterated its commitment to enhancing customer experience, promising greater reliability and alternative channels for payments and inquiries in case of future issues.<o:p></o:p>

Gupta, at the helm of DBS since November 2009, has overseen the bank's expansion into key markets such as India, Taiwan, and mainland China, both through acquisitions and organic growth. <o:p></o:p>

Under his leadership, DBS has strengthened its wealth management arm, becoming one of Asia's largest in terms of assets under management. <o:p></o:p>

Despite the anticipated softening of interest rates and geopolitical tensions, Gupta expressed confidence in sustaining the bank's performance in the upcoming year.<o:p></o:p>

DBS's results set the tone for major Singapore banks, with rivals United Overseas Bank Ltd. and Oversea-Chinese Banking Corp set to report their results later this month. <o:p></o:p>

While DBS's performance has been propelled by elevated interest rates, analysts speculate on the sustainability of this growth trajectory amidst expectations of declining rates in the coming year. <o:p></o:p>

The outcomes of DBS's strategic initiatives to address digital banking disruptions and maintain customer trust will likely influence market perceptions of the bank's long-term resilience and growth prospects.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year. This is based on a report published by Bloomberg. The bank announced a net profit of S$2.39 billion ($1.78 billion) in the quarter ending December 31, marking a modest 2 per cent increase, amidst margin pressure. While slightly below analyst estimates, DBS proposed a bonus share issue and increased its final dividend. For the entirety of 2023, the bank surpassed its medium-term net profit target of S$10 billion, achieving a return on equity of 18 per cent, leading to a surge in DBS shares. However, last year's digital banking outages prompted a collective 21 per cent cut in variable pay for DBS' group management committee, with CEO Gupta experiencing a deeper 30 per cent reduction amounting to S$4.1 million. DBS's stellar performance comes amid a challenging backdrop as it grapples with the aftermath of digital banking disruptions that paralysed payment and ATM transactions across Singapore last year. The repercussions of these outages have led to regulatory actions, with the Monetary Authority of Singapore imposing a six-month ban on DBS from acquiring new business ventures and reducing its local branch and ATM networks. Despite Gupta's public apologies and assurances of prioritising the resolution of digital banking issues, the bank faced scrutiny over service reliability. However, DBS reiterated its commitment to enhancing customer experience, promising greater reliability and alternative channels for payments and inquiries in case of future issues. Gupta, at the helm of DBS since November 2009, has overseen the bank's expansion into key markets such as India, Taiwan, and mainland China, both through acquisitions and organic growth. Under his leadership, DBS has strengthened its wealth management arm, becoming one of Asia's largest in terms of assets under management. Despite the anticipated softening of interest rates and geopolitical tensions, Gupta expressed confidence in sustaining the bank's performance in the upcoming year. DBS's results set the tone for major Singapore banks, with rivals United Overseas Bank Ltd. and Oversea-Chinese Banking Corp set to report their results later this month. While DBS's performance has been propelled by elevated interest rates, analysts speculate on the sustainability of this growth trajectory amidst expectations of declining rates in the coming year. The outcomes of DBS's strategic initiatives to address digital banking disruptions and maintain customer trust will likely influence market perceptions of the bank's long-term resilience and growth prospects. (With inputs from Bloomberg)

DBS CEO's pay slashed following digital banking disruptions amid record profits

Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers. <o:p></o:p>

While European Union countries celebrated a record year for green energy with a 40 per cent surge in solar capacity compared to 2022, many solar panels and parts were sourced from China, reaching up to 95 per cent in some instances, as per International Energy Agency data. <o:p></o:p>

The boom, however, has proven detrimental to local manufacturers, prompting warnings of imminent closures unless governments intervene.<o:p></o:p>

Despite the green energy triumph, Europe's few remaining solar panel manufacturers are teetering on the brink, grappling with oversupply and the influx of inexpensive imports. <o:p></o:p>

Production closures loom large, with industry leaders cautioning that up to half of the sector's capacity could shut down in a matter of weeks without government intervention.<o:p></o:p>

Policymakers find themselves in a dilemma, torn between addressing the crisis and the potential consequences of trade restrictions on Chinese solar imports. <o:p></o:p>

German Economy Minister Robert Habeck expressed concerns in a letter to the European Commission, warning against imposing trade restrictions on Chinese solar imports. <o:p></o:p>

Habeck emphasised the risk of hindering Europe's green energy expansion and raising costs in the photovoltaic (PV) market. <o:p></o:p>

The letter suggested that such restrictions could lead to bankruptcies among EU companies involved in assembling and installing solar panels using imported components. <o:p></o:p>

While Germany contemplates support for the sector, a government budget crisis has cast uncertainty on planned initiatives. <o:p></o:p>

Spain is considering tariffs, the Netherlands eyes carbon border taxes, and Italy recently announced ainvestment in a PV panel factory in Sicily.<o:p></o:p>

EU Financial Services Commissioner Mairead McGuinness addressed the solar sector's challenges, offering no new support but highlighting existing measures, including a forthcoming law aiming to expedite permits for local manufacturing and provide EU-made products a competitive advantage in clean tech tenders. <o:p></o:p>

On the topic of trade restrictions, McGuinness maintained a cautious stance, emphasising the need to balance potential measures against energy transition objectives. <o:p></o:p>

The industry itself is divided, with solar manufacturers urging government intervention to absorb excess inventories, while the broader green energy sector opposes import curbs.<o:p></o:p>

Amid the struggle for a solution, European solar manufacturers, even those hoping for a competitive local industry, acknowledge the daunting reality of a "price war" with China.<o:p></o:p>

Gunter Erfurt, CEO of Swiss panel maker Meyer Burger, highlighted the challenge, stating that Europe is competing against strategically subsidised Chinese solar firms, some selling below production costs. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers.

Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers. While European Union countries celebrated a record year for green energy with a 40 per cent surge in solar capacity compared to 2022, many solar panels and parts were sourced from China, reaching up to 95 per cent in some instances, as per International Energy Agency data. The boom, however, has proven detrimental to local manufacturers, prompting warnings of imminent closures unless governments intervene. Despite the green energy triumph, Europe's few remaining solar panel manufacturers are teetering on the brink, grappling with oversupply and the influx of inexpensive imports. Production closures loom large, with industry leaders cautioning that up to half of the sector's capacity could shut down in a matter of weeks without government intervention. Policymakers find themselves in a dilemma, torn between addressing the crisis and the potential consequences of trade restrictions on Chinese solar imports. German Economy Minister Robert Habeck expressed concerns in a letter to the European Commission, warning against imposing trade restrictions on Chinese solar imports. Habeck emphasised the risk of hindering Europe's green energy expansion and raising costs in the photovoltaic (PV) market. The letter suggested that such restrictions could lead to bankruptcies among EU companies involved in assembling and installing solar panels using imported components. While Germany contemplates support for the sector, a government budget crisis has cast uncertainty on planned initiatives. Spain is considering tariffs, the Netherlands eyes carbon border taxes, and Italy recently announced ainvestment in a PV panel factory in Sicily. EU Financial Services Commissioner Mairead McGuinness addressed the solar sector's challenges, offering no new support but highlighting existing measures, including a forthcoming law aiming to expedite permits for local manufacturing and provide EU-made products a competitive advantage in clean tech tenders. On the topic of trade restrictions, McGuinness maintained a cautious stance, emphasising the need to balance potential measures against energy transition objectives. The industry itself is divided, with solar manufacturers urging government intervention to absorb excess inventories, while the broader green energy sector opposes import curbs. Amid the struggle for a solution, European solar manufacturers, even those hoping for a competitive local industry, acknowledge the daunting reality of a "price war" with China. Gunter Erfurt, CEO of Swiss panel maker Meyer Burger, highlighted the challenge, stating that Europe is competing against strategically subsidised Chinese solar firms, some selling below production costs. (With inputs from Reuters)

Solar Industry Crossroads: Europe grapples with Chinese imports amid green energy boom

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.<o:p></o:p>

However, the Finance Ministry confirmed that the government would have no role to play in the RBI's actions.<o:p></o:p>

The meeting with the Finance Minister emphasised that Paytm needs to resolve the issues directly with the RBI and adhere to the regulatory guidelines set by the central bank.<o:p></o:p>

Paytm has been grappling with regulatory challenges after the RBI directed the company to halt its popular digital wallet, deposits, and credit products. <o:p></o:p>

Paytm's shares experienced a significant dip of over 40 per cent following the RBI's directives. <o:p></o:p>

The market sentiment, however, showed signs of recovery this Tuesday. <o:p></o:p>

While the government made it clear that it would not intervene in the RBI's clampdown, Vijay Shekhar Sharma also held discussions with RBI officials to address the regulatory concerns raised by the central bank. <o:p></o:p>

The RBI's restrictions included barring Paytm Payments Bank Ltd from accepting deposits or facilitating credit transactions after February 29, affecting various customer accounts and prepaid instruments linked to those accounts, such as wallets and FASTags.<o:p></o:p>

The RBI's actions extended to terminating the nodal accounts of Paytm's parent company, One97 Communications Ltd, and Paytm Payments Bank Ltd. <o:p></o:p>

Despite these challenges, Paytm Payments Bank sought to reassure its customers, assuring them that their funds are secure and that they can continue to utilise balances from their accounts without any limits, as specified in the RBI order. <o:p></o:p>

However, after February 29, depositing money into accounts or wallets will no longer be possible.<o:p></o:p>

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter. However, the Finance Ministry confirmed that the government would have no role to play in the RBI's actions. The meeting with the Finance Minister emphasised that Paytm needs to resolve the issues directly with the RBI and adhere to the regulatory guidelines set by the central bank. Paytm has been grappling with regulatory challenges after the RBI directed the company to halt its popular digital wallet, deposits, and credit products. Paytm's shares experienced a significant dip of over 40 per cent following the RBI's directives. The market sentiment, however, showed signs of recovery this Tuesday. While the government made it clear that it would not intervene in the RBI's clampdown, Vijay Shekhar Sharma also held discussions with RBI officials to address the regulatory concerns raised by the central bank. The RBI's restrictions included barring Paytm Payments Bank Ltd from accepting deposits or facilitating credit transactions after February 29, affecting various customer accounts and prepaid instruments linked to those accounts, such as wallets and FASTags. The RBI's actions extended to terminating the nodal accounts of Paytm's parent company, One97 Communications Ltd, and Paytm Payments Bank Ltd. Despite these challenges, Paytm Payments Bank sought to reassure its customers, assuring them that their funds are secure and that they can continue to utilise balances from their accounts without any limits, as specified in the RBI order. However, after February 29, depositing money into accounts or wallets will no longer be possible.

Paytm CEO Advised by Government: No intervention in RBI clampdown

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season.<o:p></o:p>

The Kyoto-based gaming giant aims to sustain the momentum of its hybrid home-portable Switch, which is approaching its eighth year on the market. <o:p></o:p>

Nintendo President Shuntaro Furukawa emphasised the company's commitment to the Switch business during an earnings briefing, indicating a proactive stance in maintaining the console's popularity.<o:p></o:p>

Despite an 8 per cent decline in Switch sales, with 13.74 million units sold in the first nine months of the financial year compared to the previous year, the console's lifecycle has been prolonged by successful game releases. <o:p></o:p>

Hits like "The Legend of Zelda: Tears of the Kingdom" and "Super Mario Bros. Wonder" have contributed to the console's enduring appeal. <o:p></o:p>

The Switch, available in various iterations including the handheld-only Switch Lite and a version with an OLED display, has surpassed the poorly performing Wii U and boasts total sales second only to the Nintendo DS handheld, having overtaken the Wii.<o:p></o:p>

Nintendo's financial performance tells a success story, with a record net profit of 408 billion yen reported for the April-December period. <o:p></o:p>

The company's ability to leverage existing hardware and capitalise on compelling game releases has resulted in a flourishing bottom line. <o:p></o:p>

Industry experts foresee continued success, with Serkan Toto, founder of game industry consultancy Kantan Games, anticipating new Switch games and hinting at a successor device launching later this year, priced around $400. <o:p></o:p>

This speculation aligns with rising expectations for Nintendo to introduce new hardware in 2024.<o:p></o:p>

The buoyant market response is reflected in Nintendo's stock performance, with shares closing down a marginal 0.5 per cent ahead of earnings but boasting a 14 per cent gain year-to-date. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season.

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season. The Kyoto-based gaming giant aims to sustain the momentum of its hybrid home-portable Switch, which is approaching its eighth year on the market. Nintendo President Shuntaro Furukawa emphasised the company's commitment to the Switch business during an earnings briefing, indicating a proactive stance in maintaining the console's popularity. Despite an 8 per cent decline in Switch sales, with 13.74 million units sold in the first nine months of the financial year compared to the previous year, the console's lifecycle has been prolonged by successful game releases. Hits like "The Legend of Zelda: Tears of the Kingdom" and "Super Mario Bros. Wonder" have contributed to the console's enduring appeal. The Switch, available in various iterations including the handheld-only Switch Lite and a version with an OLED display, has surpassed the poorly performing Wii U and boasts total sales second only to the Nintendo DS handheld, having overtaken the Wii. Nintendo's financial performance tells a success story, with a record net profit of 408 billion yen reported for the April-December period. The company's ability to leverage existing hardware and capitalise on compelling game releases has resulted in a flourishing bottom line. Industry experts foresee continued success, with Serkan Toto, founder of game industry consultancy Kantan Games, anticipating new Switch games and hinting at a successor device launching later this year, priced around $400. This speculation aligns with rising expectations for Nintendo to introduce new hardware in 2024. The buoyant market response is reflected in Nintendo's stock performance, with shares closing down a marginal 0.5 per cent ahead of earnings but boasting a 14 per cent gain year-to-date. (With inputs from Reuters)

Nintendo boosts Switch sales forecast, hints at new hardware launch

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. <o:p></o:p>

According to media reports, the third-quarter profit soared to 1.36 trillion yen ($9 billion), marking a substantial recovery from the setbacks faced during the computer chip production disruptions triggered by the COVID-19 pandemic. <o:p></o:p>

The company's solid performance over the first nine months of the fiscal year resulted in 3.9 trillion yen ($26 billion) profit, more than double the figure achieved in the preceding fiscal year.<o:p></o:p>

A key factor contributing to Toyota's success is the favourable exchange rate, with a weak yen boosting the value of overseas earnings when converted into yen. <o:p></o:p>

The recent exchange rate of about 148 yen to the dollar, compared to 140 yen a year ago, played a pivotal role in enhancing the company's financial performance. <o:p></o:p>

Quarterly sales also experienced an uptick, rising by 23 per cent to 12.04 trillion yen ($81 billion) from 9.75 trillion yen.<o:p></o:p>

Toyota, headquartered in Toyota City, central Japan, responded to its performance by revising its full fiscal year profit forecast to 4.5 trillion yen ($30 billion), surpassing its earlier projection of 3.95 trillion yen ($27 billion). <o:p></o:p>

Similarly, the sales projection for the fiscal year was adjusted to 43.5 trillion yen ($294 billion), up from the initial estimate of 43 trillion yen ($290 billion). <o:p></o:p>

The company attributes these positive adjustments to cost-cutting measures, strategic marketing efforts, and the favourable effects of currency exchange rates.<o:p></o:p>

However, amid the overall positive outlook, Toyota did not raise its vehicle sales forecast for the fiscal year. <o:p></o:p>

Instead, it slightly reduced the forecast to 9.45 million vehicles, compared to the previous expectation of 9.6 million vehicles. <o:p></o:p>

Despite this adjustment, the forecast still exceeds the previous fiscal year's sales of 8.8 million vehicles, showcasing Toyota's resilience in navigating challenges, particularly the global shortage of computer chips that has affected the entire automotive industry.<o:p></o:p>

The impact of the chip shortage is notably felt within Toyota's group, with Daihatsu Motor Co., responsible for manufacturing small models, temporarily suspending production under Japanese government orders. <o:p></o:p>

The automaker admitted to falsifying safety tests for decades, leading to a scandal that surfaced in April 2023. <o:p></o:p>

While the impact on Toyota's overall sales and profits is expected to be limited due to Daihatsu's relatively small contribution, the company acknowledges a potential decline in Japanese sales due to the subsidiary's issues, posing a challenge to Toyota's brand image.<o:p></o:p>

Despite the challenges posed by the Daihatsu scandal and similar irregularities in other group companies, including Hino and Toyota Industries, Toyota remains optimistic about its overall financial outlook. <o:p></o:p>

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year.

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. According to media reports, the third-quarter profit soared to 1.36 trillion yen ($9 billion), marking a substantial recovery from the setbacks faced during the computer chip production disruptions triggered by the COVID-19 pandemic. The company's solid performance over the first nine months of the fiscal year resulted in 3.9 trillion yen ($26 billion) profit, more than double the figure achieved in the preceding fiscal year. A key factor contributing to Toyota's success is the favourable exchange rate, with a weak yen boosting the value of overseas earnings when converted into yen. The recent exchange rate of about 148 yen to the dollar, compared to 140 yen a year ago, played a pivotal role in enhancing the company's financial performance. Quarterly sales also experienced an uptick, rising by 23 per cent to 12.04 trillion yen ($81 billion) from 9.75 trillion yen. Toyota, headquartered in Toyota City, central Japan, responded to its performance by revising its full fiscal year profit forecast to 4.5 trillion yen ($30 billion), surpassing its earlier projection of 3.95 trillion yen ($27 billion). Similarly, the sales projection for the fiscal year was adjusted to 43.5 trillion yen ($294 billion), up from the initial estimate of 43 trillion yen ($290 billion). The company attributes these positive adjustments to cost-cutting measures, strategic marketing efforts, and the favourable effects of currency exchange rates. However, amid the overall positive outlook, Toyota did not raise its vehicle sales forecast for the fiscal year. Instead, it slightly reduced the forecast to 9.45 million vehicles, compared to the previous expectation of 9.6 million vehicles. Despite this adjustment, the forecast still exceeds the previous fiscal year's sales of 8.8 million vehicles, showcasing Toyota's resilience in navigating challenges, particularly the global shortage of computer chips that has affected the entire automotive industry. The impact of the chip shortage is notably felt within Toyota's group, with Daihatsu Motor Co., responsible for manufacturing small models, temporarily suspending production under Japanese government orders. The automaker admitted to falsifying safety tests for decades, leading to a scandal that surfaced in April 2023. While the impact on Toyota's overall sales and profits is expected to be limited due to Daihatsu's relatively small contribution, the company acknowledges a potential decline in Japanese sales due to the subsidiary's issues, posing a challenge to Toyota's brand image. Despite the challenges posed by the Daihatsu scandal and similar irregularities in other group companies, including Hino and Toyota Industries, Toyota remains optimistic about its overall financial outlook.

Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.<o:p></o:p>

Once hailed as the trailblazer in India's digital payments realm, Paytm's future seems uncertain as its banking unit, the backbone of its popular app, faces mandated closure by India's central bank due to "persistent non-compliance." <o:p></o:p>

According to a Reuters report, this move has sparked anxiety among merchants, with many choosing to distance themselves from the platform. <o:p></o:p>

Mohammed Salahuddin, a member of a local retailers association in southern Telangana state, revealed that around 2,000 shops have already taken measures such as displaying "No Paytm, Pay Cash" signs, signalling a palpable shift away from the platform.<o:p></o:p>

In response to the growing concerns among merchants, Paytm is mobilising its sales force to mitigate fears and encourage continued usage of its platform. <o:p></o:p>

Sales representatives are actively engaging with a diverse range of merchants, from roadside vendors to large retail outlets, advocating for the utilisation of Paytm's partner banks to ensure uninterrupted payment processing. <o:p></o:p>

However, the company faces a daunting task, with approximately 15 per cent of its 40 million merchants requiring migration to alternative banking solutions, underscoring the magnitude of the challenge ahead.<o:p></o:p>

Despite Paytm's efforts to mitigate the fallout, its rivals are swiftly capitalising on the situation, eager to seize a larger share of the digital payments market. <o:p></o:p>

Following the regulatory upheaval, Paytm's stock plummeted by 39 per cent, resulting in a loss of $2.3 billion in market value. <o:p></o:p>

This downturn has created a ripe opportunity for industry behemoths like Walmart and Google to make significant strides.<o:p></o:p>

Data from market intelligence firm Sensor Tower indicates a notable decline in Paytm app downloads, juxtaposed with robust growth in rival platforms such as Walmart's PhonePe and Google Pay. <o:p></o:p>

In particular, PhonePe witnessed a 76 per cent surge in downloads, underlining the shifting dynamics within the digital payments landscape. <o:p></o:p>

Recognising the opportune moment, Google Pay swiftly rolled out initiatives to attract disillusioned Paytm merchants, further intensifying competition in the sector.<o:p></o:p>

PhonePe, a prominent rival to Paytm, wasted no time in leveraging the regulatory turmoil to its advantage. <o:p></o:p>

Through front-page newspaper advertisements, PhonePe strategically positioned itself as the preferred choice for merchants, emphasising its commitment to seamless business operations. <o:p></o:p>

Additionally, PhonePe highlighted its innovative offerings, including SmartSpeakers, designed to cater to the needs of digitally challenged retailers, thereby enhancing payment efficiency.<o:p></o:p>

Neil Shah, Director at Counterpoint Research, underscored the significance of this moment, noting that Paytm's rivals are poised to capitalise on its vulnerabilities. <o:p></o:p>

With innovations such as PhonePe's SmartSpeaker and Google's Soundpod gaining traction, the competitive landscape is poised for a dramatic shift. <o:p></o:p>

The success of these initiatives could potentially erode Paytm's market dominance.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market. Once hailed as the trailblazer in India's digital payments realm, Paytm's future seems uncertain as its banking unit, the backbone of its popular app, faces mandated closure by India's central bank due to "persistent non-compliance." According to a Reuters report, this move has sparked anxiety among merchants, with many choosing to distance themselves from the platform. Mohammed Salahuddin, a member of a local retailers association in southern Telangana state, revealed that around 2,000 shops have already taken measures such as displaying "No Paytm, Pay Cash" signs, signalling a palpable shift away from the platform. In response to the growing concerns among merchants, Paytm is mobilising its sales force to mitigate fears and encourage continued usage of its platform. Sales representatives are actively engaging with a diverse range of merchants, from roadside vendors to large retail outlets, advocating for the utilisation of Paytm's partner banks to ensure uninterrupted payment processing. However, the company faces a daunting task, with approximately 15 per cent of its 40 million merchants requiring migration to alternative banking solutions, underscoring the magnitude of the challenge ahead. Despite Paytm's efforts to mitigate the fallout, its rivals are swiftly capitalising on the situation, eager to seize a larger share of the digital payments market. Following the regulatory upheaval, Paytm's stock plummeted by 39 per cent, resulting in a loss of $2.3 billion in market value. This downturn has created a ripe opportunity for industry behemoths like Walmart and Google to make significant strides. Data from market intelligence firm Sensor Tower indicates a notable decline in Paytm app downloads, juxtaposed with robust growth in rival platforms such as Walmart's PhonePe and Google Pay. In particular, PhonePe witnessed a 76 per cent surge in downloads, underlining the shifting dynamics within the digital payments landscape. Recognising the opportune moment, Google Pay swiftly rolled out initiatives to attract disillusioned Paytm merchants, further intensifying competition in the sector. PhonePe, a prominent rival to Paytm, wasted no time in leveraging the regulatory turmoil to its advantage. Through front-page newspaper advertisements, PhonePe strategically positioned itself as the preferred choice for merchants, emphasising its commitment to seamless business operations. Additionally, PhonePe highlighted its innovative offerings, including SmartSpeakers, designed to cater to the needs of digitally challenged retailers, thereby enhancing payment efficiency. Neil Shah, Director at Counterpoint Research, underscored the significance of this moment, noting that Paytm's rivals are poised to capitalise on its vulnerabilities. With innovations such as PhonePe's SmartSpeaker and Google's Soundpod gaining traction, the competitive landscape is poised for a dramatic shift. The success of these initiatives could potentially erode Paytm's market dominance. (With inputs from Reuters)

Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity

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>

Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity<o:p></o:p>

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-faces-regulatory-hurdles-in-india-while-walmart-google-seize-market-opportunity-687706">Read more here</a><o:p></o:p>

Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report<o:p></o:p>

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/toyota-boosts-profit-outlook-as-earnings-surge-fuelled-by-weak-yen-report-687713">Read more here</a><o:p></o:p>

Nintendo boosts Switch sales forecast, hints at new hardware launch<o:p></o:p>

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/nintendo-boosts-switch-sales-forecast-hints-at-new-hardware-launch-687736">Read more here</a><o:p></o:p>

Paytm CEO Advised by Government: No intervention in RBI clampdown<o:p></o:p>

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-ceo-advised-by-government-no-intervention-in-rbi-clampdown-687746">Read more here</a><o:p></o:p>

Solar Industry Crossroads: Europe grapples with Chinese imports amid green energy boom<o:p></o:p>

Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/solar-industry-crossroads-europe-grapples-with-chinese-imports-amid-green-energy-boom-687755">Read more here</a><o:p></o:p>

DBS CEO's pay slashed following digital banking disruptions amid record profits<o:p></o:p>

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/dbs-ceos-pay-slashed-following-digital-banking-disruptions-amid-record-profits-687763">Read more here</a><o:p></o:p>

Honda recalls 750,000 US vehicles due to airbag defect, urges prompt action<o:p></o:p>

Honda announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/honda-recalls-750000-us-vehicles-due-to-airbag-defect-urges-prompt-action-687775">Read more here</a><o:p></o:p>

China escalates crackdown on short-selling with stringent measures<o:p></o:p>

In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/china-escalates-crackdown-on-short-selling-with-stringent-measures-687781">Read more here</a><o:p></o:p>

Disney, Fox, Warner Bros Discovery unite to launch sports streaming platform<o:p></o:p>

In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/disney-fox-warner-bros-discovery-unite-to-launch-sports-streaming-platform-687788">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. Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market. Read more here Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. Read more here Nintendo boosts Switch sales forecast, hints at new hardware launch Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season. Read more here Paytm CEO Advised by Government: No intervention in RBI clampdown Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter. Read more here Solar Industry Crossroads: Europe grapples with Chinese imports amid green energy boom Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers. Read more here DBS CEO's pay slashed following digital banking disruptions amid record profits Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year. Read more here Honda recalls 750,000 US vehicles due to airbag defect, urges prompt action Honda announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash. Read more here China escalates crackdown on short-selling with stringent measures In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses. Read more here Disney, Fox, Warner Bros Discovery unite to launch sports streaming platform In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television. Read more here

WION Business Wrap | Paytm’s rising competition, Toyota’s recent profits and more

In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

This move involves the formation of a joint venture that will leverage the extensive portfolio of professional and collegiate sports rights held by the media giants, spanning leagues such as the NFL, NBA, MLB, FIFA World Cup, and college competitions. <o:p></o:p>

The yet-to-be-named service will offer a comprehensive package, combining traditional television channels like ESPN, TNT, and FS1 with streamed sports content. <o:p></o:p>

Subscribers will also have the option to access it as part of streaming bundles offered by Disney+, Hulu, or Max. <o:p></o:p>

"This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other leaders," Reuters quoted Disney CEO Bob Iger, as saying.<o:p></o:p>

The collaboration aims to create a platform that caters to a diverse range of sports, capturing a broad audience and maximising the potential upside. <o:p></o:p>

Gershon, representing Fox Corp, emphasised the logic behind the deal, suggesting a shared approach to handling the escalating costs of sports rights and creating a platform that appeals to a wide spectrum of sports enthusiasts.<o:p></o:p>

The idea for this sports-centric service has been in discussions among the CEOs for some time. <o:p></o:p>

The collaboration is not seen as a replacement for Disney's flagship ESPN television network or Fox's FS1, which already hold a strong presence among traditional sports fans on TV. <o:p></o:p>

Instead, the partners view the new platform as providing additional choice for consumers, recognising the evolving landscape of sports consumption outside the traditional TV model.<o:p></o:p>

The service is expected to offer passionate fans, beyond the confines of the traditional bundle, a comprehensive and consolidated source for diverse sports content.<o:p></o:p>

Reuters cited Fox Chief Executive Lachlan Murdoch, who said, "We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place." <o:p></o:p>

The new entity resulting from this collaboration will be jointly owned by the three media companies, each having equal board representation. <o:p></o:p>

Sports content will be licensed on a non-exclusive basis, and the operation of the new entity will be managed by an independent management team. <o:p></o:p>

The initiative signals a recognition of the market for sports outside the traditional television model and provides an additional avenue for these media companies to monetise the increasingly expensive sports rights.<o:p></o:p>

David Zaslav, CEO of Warner Bros Discovery, emphasised the industry's ability to drive innovation and offer consumers more choice, enjoyment, and value through the new sports service. <o:p></o:p>

Disney's previous indications of seeking strategic partners and investors for ESPN align with the broader industry focus on profitability in streaming. <o:p></o:p>

Activist investor Nelson Peltz has suggested that Disney can achieve streaming profitability by bundling its ESPN+ online service with a larger player interested in sports, a strategy that resonates with the collaborative approach taken by Disney, Fox, and Warner Bros Discovery.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television.

In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television. This is based on a Reuters report. This move involves the formation of a joint venture that will leverage the extensive portfolio of professional and collegiate sports rights held by the media giants, spanning leagues such as the NFL, NBA, MLB, FIFA World Cup, and college competitions. The yet-to-be-named service will offer a comprehensive package, combining traditional television channels like ESPN, TNT, and FS1 with streamed sports content. Subscribers will also have the option to access it as part of streaming bundles offered by Disney+, Hulu, or Max. "This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other leaders," Reuters quoted Disney CEO Bob Iger, as saying. The collaboration aims to create a platform that caters to a diverse range of sports, capturing a broad audience and maximising the potential upside. Gershon, representing Fox Corp, emphasised the logic behind the deal, suggesting a shared approach to handling the escalating costs of sports rights and creating a platform that appeals to a wide spectrum of sports enthusiasts. The idea for this sports-centric service has been in discussions among the CEOs for some time. The collaboration is not seen as a replacement for Disney's flagship ESPN television network or Fox's FS1, which already hold a strong presence among traditional sports fans on TV. Instead, the partners view the new platform as providing additional choice for consumers, recognising the evolving landscape of sports consumption outside the traditional TV model. The service is expected to offer passionate fans, beyond the confines of the traditional bundle, a comprehensive and consolidated source for diverse sports content. Reuters cited Fox Chief Executive Lachlan Murdoch, who said, "We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place." The new entity resulting from this collaboration will be jointly owned by the three media companies, each having equal board representation. Sports content will be licensed on a non-exclusive basis, and the operation of the new entity will be managed by an independent management team. The initiative signals a recognition of the market for sports outside the traditional television model and provides an additional avenue for these media companies to monetise the increasingly expensive sports rights. David Zaslav, CEO of Warner Bros Discovery, emphasised the industry's ability to drive innovation and offer consumers more choice, enjoyment, and value through the new sports service. Disney's previous indications of seeking strategic partners and investors for ESPN align with the broader industry focus on profitability in streaming. Activist investor Nelson Peltz has suggested that Disney can achieve streaming profitability by bundling its ESPN+ online service with a larger player interested in sports, a strategy that resonates with the collaborative approach taken by Disney, Fox, and Warner Bros Discovery. (With inputs from Reuters)

Disney, Fox, Warner Bros Discovery unite to launch sports streaming platform

In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The China Securities Regulatory Commission (CSRC) is also set to prohibit securities lending to investors who sell stocks on the same day of purchase and has pledged to crack down on illegal arbitrage involving short-selling. <o:p></o:p>

These steps come in the wake of a recent market downturn, prompting Chinese authorities to implement various measures to bolster share prices and restore confidence in the economy.<o:p></o:p>

The CSRC's latest measures aim to address the challenges posed by short-selling, a practice that has raised concerns about market stability. <o:p></o:p>

The regulator emphasised a "zero tolerance" stance against malicious short sellers, warning of severe consequences for those violating the rules. <o:p></o:p>

The CSRC explicitly stated that individuals flouting the law would "lose their shirts and rot in jail."<o:p></o:p>

As part of the regulatory crackdown, the CSRC announced the suspension of new business in securities re-lending, a practice wherein brokerages borrow shares to lend to clients for short selling. <o:p></o:p>

Existing businesses engaged in securities re-lending will be gradually phased out. <o:p></o:p>

Following the regulatory announcement, several mutual fund companies, including China Asset Management Co, E Fund Management Co, and Southern Asset Management, declared the suspension of lending shares and the gradual discontinuation of securities re-lending. <o:p></o:p>

Brokerage firm Huaxi Securities Co also committed to ceasing lending shares for short selling.<o:p></o:p>

To reinforce market integrity, the CSRC urged brokerages to enhance scrutiny over clients' trading behaviours. <o:p></o:p>

This move aims to ensure compliance with existing regulations, particularly those preventing the sale of shares on the same day of purchase. <o:p></o:p>

The regulator noted that some investors have circumvented these rules by using borrowed shares, and consequently, the CSRC will now ban such traders from borrowing shares. <o:p></o:p>

The recent regulatory efforts have already led to a 24 per cent decline in the securities lending business, amounting to 63.7 billion yuan, according to the CSRC. <o:p></o:p>

In addition to curbing short-selling, the CSRC encouraged listed companies to fortify their value through various means, including share buybacks, stock purchases by major shareholders, regular dividend pay-outs, and mergers and acquisitions. <o:p></o:p>

These measures aim to bolster the overall stability and attractiveness of Chinese stocks, fostering investor confidence in the market. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses.

In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses. This is based on a Reuters report. The China Securities Regulatory Commission (CSRC) is also set to prohibit securities lending to investors who sell stocks on the same day of purchase and has pledged to crack down on illegal arbitrage involving short-selling. These steps come in the wake of a recent market downturn, prompting Chinese authorities to implement various measures to bolster share prices and restore confidence in the economy. The CSRC's latest measures aim to address the challenges posed by short-selling, a practice that has raised concerns about market stability. The regulator emphasised a "zero tolerance" stance against malicious short sellers, warning of severe consequences for those violating the rules. The CSRC explicitly stated that individuals flouting the law would "lose their shirts and rot in jail." As part of the regulatory crackdown, the CSRC announced the suspension of new business in securities re-lending, a practice wherein brokerages borrow shares to lend to clients for short selling. Existing businesses engaged in securities re-lending will be gradually phased out. Following the regulatory announcement, several mutual fund companies, including China Asset Management Co, E Fund Management Co, and Southern Asset Management, declared the suspension of lending shares and the gradual discontinuation of securities re-lending. Brokerage firm Huaxi Securities Co also committed to ceasing lending shares for short selling. To reinforce market integrity, the CSRC urged brokerages to enhance scrutiny over clients' trading behaviours. This move aims to ensure compliance with existing regulations, particularly those preventing the sale of shares on the same day of purchase. The regulator noted that some investors have circumvented these rules by using borrowed shares, and consequently, the CSRC will now ban such traders from borrowing shares. The recent regulatory efforts have already led to a 24 per cent decline in the securities lending business, amounting to 63.7 billion yuan, according to the CSRC. In addition to curbing short-selling, the CSRC encouraged listed companies to fortify their value through various means, including share buybacks, stock purchases by major shareholders, regular dividend pay-outs, and mergers and acquisitions. These measures aim to bolster the overall stability and attractiveness of Chinese stocks, fostering investor confidence in the market. (With inputs from Reuters)

China escalates crackdown on short-selling with stringent measures

Honda Motor Co announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash. <o:p></o:p>

The National Highway Traffic Safety Administration (NHTSA) revealed that the front passenger seat weight sensor may crack and short circuit, leading to a failure in suppressing the airbag as intended. <o:p></o:p>

The recall encompasses specific models, including Honda Pilot, Accord, and Civic vehicles from the model years 2020-2022, as well as certain Honda CR-V and Passport vehicles from 2020 and 2021.<o:p></o:p>

The safety concern revolves around the possibility of the airbags not deploying correctly due to the defect of the front passenger seat weight sensor. <o:p></o:p>

The NHTSA emphasised that dealers would replace the seat weight sensors to address the issue. Honda, in a statement filed with the safety regulator, reported 3,834 warranty claims related to the defect. <o:p></o:p>

Despite this, no reported injuries or deaths have been associated with the recall issue since June 2020. <o:p></o:p>

The company urged vehicle owners to respond promptly to the recall notice to ensure their safety and the proper functioning of the airbags in the affected models.<o:p></o:p>

To shed light on the origin of the defect, Honda informed the NHTSA that, after a natural disaster impacted a subcontractor's manufacturing plant, a temporary change in the base material of the printed circuit board in the seat weight sensor occurred. <o:p></o:p>

The alternative material used during this period "could allow additional strain to the printed circuit board," according to Honda's explanation. <o:p></o:p>

Honda's recall follows a similar move by Toyota Motor in December when the latter recalled 1.12 million vehicles globally due to a short circuit in a sensor that could lead to airbags not deploying as designed. <o:p></o:p>

In the same month, Honda issued another massive recall, covering 4.5 million vehicles worldwide, over concerns related to fuel pump failure. <o:p></o:p>

This recall affected 2.54 million vehicles in the US.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Honda Motor Co announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash.

Honda Motor Co announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash. The National Highway Traffic Safety Administration (NHTSA) revealed that the front passenger seat weight sensor may crack and short circuit, leading to a failure in suppressing the airbag as intended. The recall encompasses specific models, including Honda Pilot, Accord, and Civic vehicles from the model years 2020-2022, as well as certain Honda CR-V and Passport vehicles from 2020 and 2021. The safety concern revolves around the possibility of the airbags not deploying correctly due to the defect of the front passenger seat weight sensor. The NHTSA emphasised that dealers would replace the seat weight sensors to address the issue. Honda, in a statement filed with the safety regulator, reported 3,834 warranty claims related to the defect. Despite this, no reported injuries or deaths have been associated with the recall issue since June 2020. The company urged vehicle owners to respond promptly to the recall notice to ensure their safety and the proper functioning of the airbags in the affected models. To shed light on the origin of the defect, Honda informed the NHTSA that, after a natural disaster impacted a subcontractor's manufacturing plant, a temporary change in the base material of the printed circuit board in the seat weight sensor occurred. The alternative material used during this period "could allow additional strain to the printed circuit board," according to Honda's explanation. Honda's recall follows a similar move by Toyota Motor in December when the latter recalled 1.12 million vehicles globally due to a short circuit in a sensor that could lead to airbags not deploying as designed. In the same month, Honda issued another massive recall, covering 4.5 million vehicles worldwide, over concerns related to fuel pump failure. This recall affected 2.54 million vehicles in the US. (With inputs from Reuters)

Honda recalls 750,000 US vehicles due to airbag defect, urges prompt action

In a move to curb the global proliferation of commercial spyware, the United States has announced a comprehensive plan to restrict visas for abusers and manufacturers involved in the sale of encryption-busting malware, as reported by the Financial Times (FT).<o:p></o:p>

The measure aims to address the pervasive issue of spyware, a multibillion-dollar industry linked to the repression of dissidents worldwide. <o:p></o:p>

The US State Department revealed on Monday that the visa ban specifically targets manufacturers who derive "financial benefit" from selling military-grade spyware to countries engaged in its abuse.<o:p></o:p>

Crucial Accountability Measure: Visa ban to target manufacturers<o:p></o:p>

According to the FT report, the newly announced visa ban builds upon a March 2022 executive order that prohibited US government agencies from purchasing spyware from manufacturers accused of selling to countries that misuse it. <o:p></o:p>

The US State Department emphasises that the measure is designed to hold spyware manufacturers accountable, particularly those accused of financially benefiting from the sale of such technology to countries engaged in abuse. <o:p></o:p>

Spyware industry's global reach and national security threat<o:p></o:p>

The US government has identified the spyware industry, capable of bypassing smartphone encryption to remotely mirror content, as a threat to national security. <o:p></o:p>

By March 2023, at least 50 government employees working abroad were discovered to have been surreptitiously surveilled by spyware, raising counter-intelligence concerns. <o:p></o:p>

FT cited a senior US official who highlighted the significance of travel to the United States for those in the spyware sector, emphasising the need for accountability among individuals involved in misuse or enabling misuse.<o:p></o:p>

Growing Tough Stance: US prioritises action against spyware manufacturers<o:p></o:p>

The Biden administration has adopted an increasingly robust stance against spyware manufacturers, with a focus on preventing their products from falling into the wrong hands. <o:p></o:p>

Most manufacturers, including Israel's NSO Group, have faced scrutiny. <o:p></o:p>

Israel, considering spyware as a weapon, regulates its sale to allies.<o:p></o:p>

&nbsp;Despite the impact of the US government's blacklisting and executive orders, the effectiveness of preventing spyware deployment on dissidents and human rights advocates remains uncertain. <o:p></o:p>

Last week, reports surfaced of at least 35 people in Jordan targeted with the NSO Group's Pegasus spyware, raising questions about the broader impact of these policies.<o:p></o:p>

Impact on NSO group and industry dynamics<o:p></o:p>

The US Commerce Department's blacklisting of NSO Group, combined with the 2022 executive order, played a pivotal role in scuttling a potential sale of the company to a US defence contractor. <o:p></o:p>

This move cut off NSO from crucial dealings with US companies providing servers and IT equipment.<o:p></o:p>

While NSO has continued its operations, competitors have emerged in European Union countries. <o:p></o:p>

The US official in correspondence with FT refrained from specifying the impact on individual countries or entities but emphasised the signal being sent to those involved in both misuse and enabling misuse of spyware.<o:p></o:p>

Ongoing challenges and need for global awareness<o:p></o:p>

Despite the US government's concerted efforts, challenges persist in preventing spyware misuse. <o:p></o:p>

Recent findings revealed targets in Jordan, including Human Rights Watch researchers and a renowned radio journalist, illustrating the ongoing challenges faced by dissidents and activists.

According to the US official, the implementation of visa restrictions on spyware abusers and manufacturers serves as an important signal that extends not only to those directly involved in the misuse of spyware but also to individuals who facilitate such misuse.<o:p></o:p>

In a move to curb the global proliferation of commercial spyware, the United States has announced a comprehensive plan to restrict visas for abusers and manufacturers involved in the sale of encryption-busting malware, as reported by the Financial Times (FT).

In a move to curb the global proliferation of commercial spyware, the United States has announced a comprehensive plan to restrict visas for abusers and manufacturers involved in the sale of encryption-busting malware, as reported by the Financial Times (FT). The measure aims to address the pervasive issue of spyware, a multibillion-dollar industry linked to the repression of dissidents worldwide. The US State Department revealed on Monday that the visa ban specifically targets manufacturers who derive "financial benefit" from selling military-grade spyware to countries engaged in its abuse. Crucial Accountability Measure: Visa ban to target manufacturers According to the FT report, the newly announced visa ban builds upon a March 2022 executive order that prohibited US government agencies from purchasing spyware from manufacturers accused of selling to countries that misuse it. The US State Department emphasises that the measure is designed to hold spyware manufacturers accountable, particularly those accused of financially benefiting from the sale of such technology to countries engaged in abuse. Spyware industry's global reach and national security threat The US government has identified the spyware industry, capable of bypassing smartphone encryption to remotely mirror content, as a threat to national security. By March 2023, at least 50 government employees working abroad were discovered to have been surreptitiously surveilled by spyware, raising counter-intelligence concerns. FT cited a senior US official who highlighted the significance of travel to the United States for those in the spyware sector, emphasising the need for accountability among individuals involved in misuse or enabling misuse. Growing Tough Stance: US prioritises action against spyware manufacturers The Biden administration has adopted an increasingly robust stance against spyware manufacturers, with a focus on preventing their products from falling into the wrong hands. Most manufacturers, including Israel's NSO Group, have faced scrutiny. Israel, considering spyware as a weapon, regulates its sale to allies. Despite the impact of the US government's blacklisting and executive orders, the effectiveness of preventing spyware deployment on dissidents and human rights advocates remains uncertain. Last week, reports surfaced of at least 35 people in Jordan targeted with the NSO Group's Pegasus spyware, raising questions about the broader impact of these policies. Impact on NSO group and industry dynamics The US Commerce Department's blacklisting of NSO Group, combined with the 2022 executive order, played a pivotal role in scuttling a potential sale of the company to a US defence contractor. This move cut off NSO from crucial dealings with US companies providing servers and IT equipment. While NSO has continued its operations, competitors have emerged in European Union countries. The US official in correspondence with FT refrained from specifying the impact on individual countries or entities but emphasised the signal being sent to those involved in both misuse and enabling misuse of spyware. Ongoing challenges and need for global awareness Despite the US government's concerted efforts, challenges persist in preventing spyware misuse. Recent findings revealed targets in Jordan, including Human Rights Watch researchers and a renowned radio journalist, illustrating the ongoing challenges faced by dissidents and activists. According to the US official, the implementation of visa restrictions on spyware abusers and manufacturers serves as an important signal that extends not only to those directly involved in the misuse of spyware but also to individuals who facilitate such misuse.

US imposes visa restrictions on spyware abusers and manufacturers: Report

Yandex NV, often referred to as "Russia's Google," has finalised a deal worth 475 billion roubles ($5.21 billion) to sell its major businesses to a consortium of Russian investors, as reported by Reuters.<o:p></o:p>

This landmark deal represents the most significant corporate exit from Russia since Moscow's invasion of Ukraine almost two years ago. <o:p></o:p>

The sale, orchestrated by the Kremlin, positions Russia's largest technology player entirely under local ownership, with key involvement from an investment fund linked to oil major Lukoil.<o:p></o:p>

A Tumultuous Journey: Yandex's complicated exit strategy<o:p></o:p>

Yandex, listed on Nasdaq, was once seen as a potential global business from Russia. <o:p></o:p>

However, co-founder Arkady Volozh's criticism of Russia's invasion of Ukraine in August 2023 sparked discussions of nationalising Yandex. <o:p></o:p>

A fear of technology brain drain ultimately led to a complex deal, transferring over 95 per cent of Yandex's revenue-generating businesses to Russian control while retaining a few strategic assets. <o:p></o:p>

Despite Yandex's efforts to portray itself as independent from Kremlin influence, the company has become a crucial national asset, necessitating the intricate negotiation process with the Russian government.<o:p></o:p>

Market Capitalisation Plunge: A drastic shift from $30 billion to $10.2 billion<o:p></o:p>

The deal values Yandex at $10.2 billion, a significant drop from its market capitalisation of around $30 billion in late 2021 before the geopolitical tensions escalated. <o:p></o:p>

Yandex NV emphasised that the sale price reflects "a mandatory discount of at least 50 per cent to 'fair value,'" in line with Russia's regulations governing foreign asset sales. <o:p></o:p>

The approval of such deals by the Russian government demands a minimum discount of 50 per cent.<o:p></o:p>

Cash consideration and brand transition<o:p></o:p>

The deal consists of a cash equivalent of at least 230 billion roubles and approximately 176 million Yandex NV Class A shares. <o:p></o:p>

Notably, the cash consideration will be paid in Chinese Yuan (CNH) outside of Russia. Following the completion of the deal, Yandex NV will cease using the Yandex brand. <o:p></o:p>

This marks a significant shift for a company that once held a prominent position in the Russian and global tech landscape.<o:p></o:p>

Consortium.First: The buyer and the players involved<o:p></o:p>

The buyer, Consortium.First, is a newly-formed investment fund managed by trustee Solid Management.<o:p></o:p>

Led by members of Yandex's senior management team in Russia, it received support from financial investors, including Argonaut, an investment fund ultimately owned by Lukoil. <o:p></o:p>

The consortium also includes three other companies - Infinity Management, IT.Elaboration, and Meridian-Servis - owned by Alexander Chachava, Pavel Prass, and Alexander Ryazanov, respectively.<o:p></o:p>

Importantly, no members of the consortium are under US, EU, British or Swiss sanctions, ruling out other potential Russian buyers.<o:p></o:p>

Completion stages and Yandex's strategic retentions<o:p></o:p>

Pending regulatory and shareholder approval, the sale is set to be completed in two stages, with the first expected to conclude in the first half of 2024. <o:p></o:p>

Yandex NV plans to delist its Class A shares from Moscow Exchange once a new public listing is obtained.<o:p></o:p>

The company will retain a portfolio of four early-stage tech businesses, a data centre in Finland, and the "core intellectual property asset" of 1,300 employees, emphasising a commitment to specific technological sectors. <o:p></o:p>

Yandex NV's board chairman, John Boynton, described the deal as the best solution in "extraordinary circumstances" for shareholders and users.<o:p></o:p>

Yandex's message to employees<o:p></o:p>

In a letter to Yandex employees in Russia, company managers stressed that the main objective was to preserve Yandex's essence and independence. <o:p></o:p>

Yandex NV assured its workforce that despite the changes, the company would remain an independent entity.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Yandex NV, often referred to as "Russia's Google," has finalised a deal worth 475 billion roubles ($5.21 billion) to sell its major businesses to a consortium of Russian investors, as reported by Reuters.

Yandex NV, often referred to as "Russia's Google," has finalised a deal worth 475 billion roubles ($5.21 billion) to sell its major businesses to a consortium of Russian investors, as reported by Reuters. This landmark deal represents the most significant corporate exit from Russia since Moscow's invasion of Ukraine almost two years ago. The sale, orchestrated by the Kremlin, positions Russia's largest technology player entirely under local ownership, with key involvement from an investment fund linked to oil major Lukoil. A Tumultuous Journey: Yandex's complicated exit strategy Yandex, listed on Nasdaq, was once seen as a potential global business from Russia. However, co-founder Arkady Volozh's criticism of Russia's invasion of Ukraine in August 2023 sparked discussions of nationalising Yandex. A fear of technology brain drain ultimately led to a complex deal, transferring over 95 per cent of Yandex's revenue-generating businesses to Russian control while retaining a few strategic assets. Despite Yandex's efforts to portray itself as independent from Kremlin influence, the company has become a crucial national asset, necessitating the intricate negotiation process with the Russian government. Market Capitalisation Plunge: A drastic shift from $30 billion to $10.2 billion The deal values Yandex at $10.2 billion, a significant drop from its market capitalisation of around $30 billion in late 2021 before the geopolitical tensions escalated. Yandex NV emphasised that the sale price reflects "a mandatory discount of at least 50 per cent to 'fair value,'" in line with Russia's regulations governing foreign asset sales. The approval of such deals by the Russian government demands a minimum discount of 50 per cent. Cash consideration and brand transition The deal consists of a cash equivalent of at least 230 billion roubles and approximately 176 million Yandex NV Class A shares. Notably, the cash consideration will be paid in Chinese Yuan (CNH) outside of Russia. Following the completion of the deal, Yandex NV will cease using the Yandex brand. This marks a significant shift for a company that once held a prominent position in the Russian and global tech landscape. Consortium.First: The buyer and the players involved The buyer, Consortium.First, is a newly-formed investment fund managed by trustee Solid Management. Led by members of Yandex's senior management team in Russia, it received support from financial investors, including Argonaut, an investment fund ultimately owned by Lukoil. The consortium also includes three other companies - Infinity Management, IT.Elaboration, and Meridian-Servis - owned by Alexander Chachava, Pavel Prass, and Alexander Ryazanov, respectively. Importantly, no members of the consortium are under US, EU, British or Swiss sanctions, ruling out other potential Russian buyers. Completion stages and Yandex's strategic retentions Pending regulatory and shareholder approval, the sale is set to be completed in two stages, with the first expected to conclude in the first half of 2024. Yandex NV plans to delist its Class A shares from Moscow Exchange once a new public listing is obtained. The company will retain a portfolio of four early-stage tech businesses, a data centre in Finland, and the "core intellectual property asset" of 1,300 employees, emphasising a commitment to specific technological sectors. Yandex NV's board chairman, John Boynton, described the deal as the best solution in "extraordinary circumstances" for shareholders and users. Yandex's message to employees In a letter to Yandex employees in Russia, company managers stressed that the main objective was to preserve Yandex's essence and independence. Yandex NV assured its workforce that despite the changes, the company would remain an independent entity. (With inputs from Reuters)

"Russia's Google" Yandex to exit in $5.2 billion deal, a historic corporate shift

Following a mid-air emergency last month that led to the grounding of Boeing 737 MAX 9 planes, the US Federal Aviation Administration (FAA) announced on Monday that nearly 94 per cent of these planes have been inspected and returned to service. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The FAA's move came after the suspension was imposed following a cabin panel blowout on an Alaska Airlines jet on January 5. <o:p></o:p>

The inspection process has involved a meticulous review of bolts, guide tracks, fittings, and visual examinations of various components, with a specific focus on the incident's root cause. <o:p></o:p>

The grounding resulted in the cancellation of thousands of flights in January.<o:p></o:p>

&nbsp;"At Boeing's Renton 737 factory, the FAA is doing a nose-to-tail, wingtip-to-wingtip inspection. And as we get findings out of that inspection, we anticipate that will drive our reimagined oversight," Reuters quoted the FAA's Deputy Associate Administrator for Aviation Safety, Jodi Baker as saying.<o:p></o:p>

&nbsp;This renewed oversight includes the possibility of increased staffing and ongoing audits to ensure the safety and reliability of Boeing's 737 MAX 9 fleet. 

Baker emphasised the necessity of adopting a proactive approach to surveillance.<o:p></o:p>

Boeing CEO Dave Calhoun addressed the ongoing production rate of the 737s, asserting, "We are producing 737s at a rate of 38 per month, and we will remain at that rate until the FAA and Boeing are satisfied with our quality of manufacturing process." <o:p></o:p>

This commitment comes in the wake of the FAA's decision last month to restrict Boeing from expanding production due to "unacceptable" quality issues.<o:p></o:p>

FAA Administrator Mike Whitaker is set to testify before a US House committee on Tuesday. <o:p></o:p>

Lawmakers have raised questions about the FAA's approach to on-site surveillance of Boeing and its suppliers. <o:p></o:p>

Baker addressed these concerns, stating, "It's being able to build relationships with employees so you can understand the challenges that they're having day in and day out, and help us see if there's systemic challenges then with the manufacturer as well."<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Following a mid-air emergency last month that led to the grounding of Boeing 737 MAX 9 planes, the US Federal Aviation Administration (FAA) announced on Monday that nearly 94 per cent of these planes have been inspected and returned to service.

Following a mid-air emergency last month that led to the grounding of Boeing 737 MAX 9 planes, the US Federal Aviation Administration (FAA) announced on Monday that nearly 94 per cent of these planes have been inspected and returned to service. This is based on a Reuters report. The FAA's move came after the suspension was imposed following a cabin panel blowout on an Alaska Airlines jet on January 5. The inspection process has involved a meticulous review of bolts, guide tracks, fittings, and visual examinations of various components, with a specific focus on the incident's root cause. The grounding resulted in the cancellation of thousands of flights in January. "At Boeing's Renton 737 factory, the FAA is doing a nose-to-tail, wingtip-to-wingtip inspection. And as we get findings out of that inspection, we anticipate that will drive our reimagined oversight," Reuters quoted the FAA's Deputy Associate Administrator for Aviation Safety, Jodi Baker as saying. This renewed oversight includes the possibility of increased staffing and ongoing audits to ensure the safety and reliability of Boeing's 737 MAX 9 fleet. Baker emphasised the necessity of adopting a proactive approach to surveillance. Boeing CEO Dave Calhoun addressed the ongoing production rate of the 737s, asserting, "We are producing 737s at a rate of 38 per month, and we will remain at that rate until the FAA and Boeing are satisfied with our quality of manufacturing process." This commitment comes in the wake of the FAA's decision last month to restrict Boeing from expanding production due to "unacceptable" quality issues. FAA Administrator Mike Whitaker is set to testify before a US House committee on Tuesday. Lawmakers have raised questions about the FAA's approach to on-site surveillance of Boeing and its suppliers. Baker addressed these concerns, stating, "It's being able to build relationships with employees so you can understand the challenges that they're having day in and day out, and help us see if there's systemic challenges then with the manufacturer as well." (With inputs from Reuters)

FAA clears 94pc of Boeing 737 MAX 9 fleet after emergency; focus shifts to overhaul oversight

In response to Catalonia's ongoing three-year drought, Spain has announced an investment of $502 million (467 million euros) in the construction of two desalination plants along the Catalan coast.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

These facilities, strategically placed north and south of Barcelona, Spain's second-largest city, are anticipated to commence operations in 2028 and 2029, offering a combined annual capacity to treat 80 million cubic meters (21 billion gallons) of water. <o:p></o:p>

The initiative comes as a vital measure to address the region's severe water scarcity, marked by Catalonia's reservoirs currently standing at a mere 16 per cent of their normal capacity for this time of the year.<o:p></o:p>

"The government's commitment is to do everything possible to help wherever needed to guarantee drinkable water," Environment Minister Teresa Ribera said at a news conference in Barcelona.<o:p></o:p>

Catalonia, facing unprecedented challenges with its reservoirs at critically low levels, has implemented stringent water usage limits for residents. <o:p></o:p>

These restrictions aim to alleviate pressure on the already strained water resources in the region. <o:p></o:p>

Ribera disclosed additional plans, indicating that the government, in collaboration with local water utilities, intends to transport up to 40,000 cubic meters of desalinated water daily via sea routes. <o:p></o:p>

The desalinated water will be sourced from a plant situated in Sagunto, within the Valencia region, further underscoring Spain's multi-faceted approach to address the pressing water crisis.<o:p></o:p>

The move towards desalination is a strategic response to the changing climate patterns and the increasing frequency of droughts. <o:p></o:p>

The two desalination plants are expected to play a pivotal role in securing a more resilient water supply for Catalonia in the face of future uncertainties. <o:p></o:p>

The projects signify a proactive step by the Spanish government to adapt and respond to the evolving environmental challenges, with the long-term goal of ensuring sustainable water resources for its citizens.<o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

In response to Catalonia's ongoing three-year drought, Spain has announced an investment of $502 million (467 million euros) in the construction of two desalination plants along the Catalan coast.

In response to Catalonia's ongoing three-year drought, Spain has announced an investment of $502 million (467 million euros) in the construction of two desalination plants along the Catalan coast. This is based on a Reuters report. These facilities, strategically placed north and south of Barcelona, Spain's second-largest city, are anticipated to commence operations in 2028 and 2029, offering a combined annual capacity to treat 80 million cubic meters (21 billion gallons) of water. The initiative comes as a vital measure to address the region's severe water scarcity, marked by Catalonia's reservoirs currently standing at a mere 16 per cent of their normal capacity for this time of the year. "The government's commitment is to do everything possible to help wherever needed to guarantee drinkable water," Environment Minister Teresa Ribera said at a news conference in Barcelona. Catalonia, facing unprecedented challenges with its reservoirs at critically low levels, has implemented stringent water usage limits for residents. These restrictions aim to alleviate pressure on the already strained water resources in the region. Ribera disclosed additional plans, indicating that the government, in collaboration with local water utilities, intends to transport up to 40,000 cubic meters of desalinated water daily via sea routes. The desalinated water will be sourced from a plant situated in Sagunto, within the Valencia region, further underscoring Spain's multi-faceted approach to address the pressing water crisis. The move towards desalination is a strategic response to the changing climate patterns and the increasing frequency of droughts. The two desalination plants are expected to play a pivotal role in securing a more resilient water supply for Catalonia in the face of future uncertainties. The projects signify a proactive step by the Spanish government to adapt and respond to the evolving environmental challenges, with the long-term goal of ensuring sustainable water resources for its citizens. (With inputs from Reuters)

Spain to invest $502 million in desalination plants to combat drought in Catalonia

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

This potential IPO, slated to be the largest in the country, aims to raise at least $3 billion, sources familiar with the matter reported on Friday. <o:p></o:p>

The move comes as Hyundai intensifies its focus on the Indian market, anticipating increased competition with the impending entry of electric vehicle giant, Tesla.<o:p></o:p>

Early talks and potential valuation<o:p></o:p>

Hyundai Motor India has initiated preliminary discussions regarding the IPO with various banks.<o:p></o:p>

&nbsp;The IPO could potentially value Hyundai's Indian operation at up to $30 billion, more than half of its current market capitalisation of $42 billion in Seoul. <o:p></o:p>

The announcement triggered a surge in Hyundai's shares, climbing 5 per cent to reach their highest point in nearly three years on Monday. <o:p></o:p>

This valuation would position Hyundai's India unit behind industry counterparts like Tata Motors and Maruti Suzuki India.<o:p></o:p>

"They want to make use of India's IPO boom. India's capital markets have hardly stood out like this before compared to other countries," Reuters quoted one of the sources familiar with the matter.<o:p></o:p>

India's capital market surge and IPO boom<o:p></o:p>

India's stock market, valued at $4 trillion, has emerged as a robust alternative to China, surpassing Hong Kong to become the fourth-largest globally. <o:p></o:p>

With the Nifty 50 index rising by 20 per cent in 2023 and continuing its record-breaking run into 2024, India's capital market has become a focal point for domestic and foreign investments. <o:p></o:p>

The second half of 2023 witnessed a surge in IPOs, a trend anticipated to persist in 2024, driven by expectations of policy stability.<o:p></o:p>

&nbsp;Hyundai's potential IPO aligns with this trend, positioning the company to leverage India's flourishing capital markets.<o:p></o:p>

Hyundai's IPO talks with major investment banks<o:p></o:p>

In its pursuit of an Indian IPO, Hyundai has engaged in discussions with prominent investment banks such as JP Morgan, Morgan Stanley, Citi, and Bank of America. <o:p></o:p>

While formal appointments are yet to be made, these talks reflect Hyundai's commitment to exploring all options for its India business. <o:p></o:p>

Hyundai's move follows a pattern of companies like SoftBank-backed Ola Electric and Swiggy, expected to go public in 2024. <o:p></o:p>

Although there has been no official comment from the mentioned banks, Hyundai's plan is gaining momentum in the financial sector.<o:p></o:p>

Hyundai's India push and competition with Tesla<o:p></o:p>

Hyundai, India's second-largest car maker by sales, has been strategically reinforcing its presence in India and the United States, redirecting focus after scaling back production in China and exiting the Russian market. <o:p></o:p>

Entering India over two decades ago, Hyundai is the only foreign player to have secured a significant market share alongside Maruti Suzuki. <o:p></o:p>

Hyundai's move to go public comes at a crucial juncture as it faces growing competition from domestic players like Tata Motors.<o:p></o:p>

&nbsp;Analysts speculate that the IPO could enhance Hyundai's position against Tesla in the Indian EV market.<o:p></o:p>

"Hyundai's India unit IPO talks come amid Tesla's plan to enter India, and if Hyundai's unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future," noted industry analysts.<o:p></o:p>

Future investments in India's EV market<o:p></o:p>

Hyundai has outlined ambitious plans for the Indian market, announcing intentions to invest close to $4 billion over the next decade. <o:p></o:p>

These funds are set for launching new electric vehicles, expanding charging infrastructure, and establishing a battery pack assembly unit. <o:p></o:p>

Notably, part of this investment involves acquiring a former General Motors plant, a strategic move to bolster production capacity in India. <o:p></o:p>

Currently, Hyundai manufactures cars at its Chennai plant, often referred to as the "Detroit of Asia".<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit.

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit. This is based on a Reuters report. This potential IPO, slated to be the largest in the country, aims to raise at least $3 billion, sources familiar with the matter reported on Friday. The move comes as Hyundai intensifies its focus on the Indian market, anticipating increased competition with the impending entry of electric vehicle giant, Tesla. Early talks and potential valuation Hyundai Motor India has initiated preliminary discussions regarding the IPO with various banks. The IPO could potentially value Hyundai's Indian operation at up to $30 billion, more than half of its current market capitalisation of $42 billion in Seoul. The announcement triggered a surge in Hyundai's shares, climbing 5 per cent to reach their highest point in nearly three years on Monday. This valuation would position Hyundai's India unit behind industry counterparts like Tata Motors and Maruti Suzuki India. "They want to make use of India's IPO boom. India's capital markets have hardly stood out like this before compared to other countries," Reuters quoted one of the sources familiar with the matter. India's capital market surge and IPO boom India's stock market, valued at $4 trillion, has emerged as a robust alternative to China, surpassing Hong Kong to become the fourth-largest globally. With the Nifty 50 index rising by 20 per cent in 2023 and continuing its record-breaking run into 2024, India's capital market has become a focal point for domestic and foreign investments. The second half of 2023 witnessed a surge in IPOs, a trend anticipated to persist in 2024, driven by expectations of policy stability. Hyundai's potential IPO aligns with this trend, positioning the company to leverage India's flourishing capital markets. Hyundai's IPO talks with major investment banks In its pursuit of an Indian IPO, Hyundai has engaged in discussions with prominent investment banks such as JP Morgan, Morgan Stanley, Citi, and Bank of America. While formal appointments are yet to be made, these talks reflect Hyundai's commitment to exploring all options for its India business. Hyundai's move follows a pattern of companies like SoftBank-backed Ola Electric and Swiggy, expected to go public in 2024. Although there has been no official comment from the mentioned banks, Hyundai's plan is gaining momentum in the financial sector. Hyundai's India push and competition with Tesla Hyundai, India's second-largest car maker by sales, has been strategically reinforcing its presence in India and the United States, redirecting focus after scaling back production in China and exiting the Russian market. Entering India over two decades ago, Hyundai is the only foreign player to have secured a significant market share alongside Maruti Suzuki. Hyundai's move to go public comes at a crucial juncture as it faces growing competition from domestic players like Tata Motors. Analysts speculate that the IPO could enhance Hyundai's position against Tesla in the Indian EV market. "Hyundai's India unit IPO talks come amid Tesla's plan to enter India, and if Hyundai's unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future," noted industry analysts. Future investments in India's EV market Hyundai has outlined ambitious plans for the Indian market, announcing intentions to invest close to $4 billion over the next decade. These funds are set for launching new electric vehicles, expanding charging infrastructure, and establishing a battery pack assembly unit. Notably, part of this investment involves acquiring a former General Motors plant, a strategic move to bolster production capacity in India. Currently, Hyundai manufactures cars at its Chennai plant, often referred to as the "Detroit of Asia". (With inputs from Reuters)

Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;

Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit<o:p></o:p>

South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit.

<a href="https://www.wionews.com/business-economy/hyundais-ambitious-move-plans-3-billion-ipo-for-the-indian-unit-687342">Read more here</a><o:p></o:p>

Spain to invest $502 million in desalination plants to combat drought in Catalonia<o:p></o:p>

In response to Catalonia's ongoing three-year drought, Spain has announced an investment of $502 million (467 million euros) in the construction of two desalination plants along the Catalan coast.

<a href="https://www.wionews.com/business-economy/spain-to-invest-502-million-in-desalination-plants-to-combat-drought-in-catalonia-687366">Read more here</a><o:p></o:p>

FAA clears 94pc of Boeing 737 MAX 9 fleet after emergency; focus shifts to overhaul oversight<o:p></o:p>

Following a mid-air emergency last month that led to the grounding of Boeing 737 MAX 9 planes, the US Federal Aviation Administration (FAA) announced on Monday that nearly 94 per cent of these planes have been inspected and returned to service.

<a href="https://www.wionews.com/business-economy/faa-clears-94pc-of-boeing-737-max-9-fleet-after-emergency-focus-shifts-to-overhaul-oversight-687369">Read more here</a><o:p></o:p>

"Russia's Google" Yandex to exit in $5.2 billion deal, a historic corporate shift<o:p></o:p>

Yandex NV, often referred to as "Russia's Google," has finalised a deal worth 475 billion roubles ($5.21 billion) to sell its major businesses to a consortium of Russian investors.

<a href="https://www.wionews.com/business-economy/russias-google-yandex-to-exit-in-52-billion-deal-a-historic-corporate-shift-687390">Read more here</a><o:p></o:p>

US imposes visa restrictions on spyware abusers and manufacturers: Report<o:p></o:p>

In a move to curb the global proliferation of commercial spyware, the United States has announced a comprehensive plan to restrict visas for abusers and manufacturers involved in the sale of encryption-busting malware.

<a href="https://www.wionews.com/business-economy/us-imposes-visa-restrictions-on-spyware-abusers-and-manufacturers-report-687392">Read more here</a><o:p></o:p>

Nvidia surges to record high as Goldman Sachs boosts price target on AI growth<o:p></o:p>

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom.

<a href="https://www.wionews.com/business-economy/nvidia-surges-to-record-high-as-goldman-sachs-boosts-price-target-on-ai-growth-687427">Read more here</a><o:p></o:p>

Snap announces 10 per cent workforce cut amid tech industry layoffs: Report<o:p></o:p>

Social media giant Snap, the parent company of Snapchat, disclosed on Monday its decision to lay off approximately 528 employees, constituting 10 per cent of its global workforce.

<a href="https://www.wionews.com/business-economy/snap-announces-10-per-cent-workforce-cut-amid-tech-industry-layoffs-report-687465">Read more here</a><o:p></o:p>

Huawei faces production hurdles as AI chip demand surges, impacting Mate 60 phones<o:p></o:p>

Huawei, the Chinese tech giant, is facing production challenges as it grapples with surging demand for its artificial intelligence (AI) chips, leading to a slowdown in the manufacturing of its premium Mate 60 smartphones.

<a href="https://www.wionews.com/business-economy/huawei-faces-production-hurdles-as-ai-chip-demand-surges-impacting-mate-60-phones-687409">Read more here</a><o:p></o:p>

Google faces September trial date in US antitrust lawsuit over digital ads: Report<o:p></o:p>

A US federal judge has set a trial date of September 9, 2024, for the antitrust lawsuit filed by the US Justice Department and a coalition of states against Google.

<a href="https://www.wionews.com/business-economy/google-faces-september-trial-date-in-us-antitrust-lawsuit-over-digital-ads-report-687470">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. Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Hyundai's Ambitious Move: Plans $3 billion IPO for the Indian unit South Korean automaker, Hyundai Motor, is gearing up for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO) for its Indian unit. Read more here Spain to invest $502 million in desalination plants to combat drought in Catalonia In response to Catalonia's ongoing three-year drought, Spain has announced an investment of $502 million (467 million euros) in the construction of two desalination plants along the Catalan coast. Read more here FAA clears 94pc of Boeing 737 MAX 9 fleet after emergency; focus shifts to overhaul oversight Following a mid-air emergency last month that led to the grounding of Boeing 737 MAX 9 planes, the US Federal Aviation Administration (FAA) announced on Monday that nearly 94 per cent of these planes have been inspected and returned to service. Read more here "Russia's Google" Yandex to exit in $5.2 billion deal, a historic corporate shift Yandex NV, often referred to as "Russia's Google," has finalised a deal worth 475 billion roubles ($5.21 billion) to sell its major businesses to a consortium of Russian investors. Read more here US imposes visa restrictions on spyware abusers and manufacturers: Report In a move to curb the global proliferation of commercial spyware, the United States has announced a comprehensive plan to restrict visas for abusers and manufacturers involved in the sale of encryption-busting malware. Read more here Nvidia surges to record high as Goldman Sachs boosts price target on AI growth Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom. Read more here Snap announces 10 per cent workforce cut amid tech industry layoffs: Report Social media giant Snap, the parent company of Snapchat, disclosed on Monday its decision to lay off approximately 528 employees, constituting 10 per cent of its global workforce. Read more here Huawei faces production hurdles as AI chip demand surges, impacting Mate 60 phones Huawei, the Chinese tech giant, is facing production challenges as it grapples with surging demand for its artificial intelligence (AI) chips, leading to a slowdown in the manufacturing of its premium Mate 60 smartphones. Read more here Google faces September trial date in US antitrust lawsuit over digital ads: Report A US federal judge has set a trial date of September 9, 2024, for the antitrust lawsuit filed by the US Justice Department and a coalition of states against Google. Read more here

WION Business Wrap | Hyundai's IPO in India, Spain's investment in desalination plants and more

A US federal judge has set a trial date of September 9, 2024, for the antitrust lawsuit filed by the US Justice Department and a coalition of states against Google. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The lawsuit, initiated in January 2023, alleges that Google has abused its dominance in digital advertising technology, monopolising the market and impeding fair competition. <o:p></o:p>

The government is pushing for Google to divest its ad manager suite, contending that such actions are necessary to restore a level playing field in the digital advertising industry.<o:p></o:p>

Google has vehemently denied the allegations, stating that if the lawsuit were to succeed, it would have detrimental effects on innovation and hinder the growth of small businesses and publishers. <o:p></o:p>

The company argues that the proposed measures would "slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow." <o:p></o:p>

The impending trial marks a significant legal battle for Google, requiring the tech giant to defend its practices in the digital advertising sector against accusations of monopolistic behaviour.<o:p></o:p>

The trial, set to take place in Alexandria, Virginia, faced a request for an earlier start date in July from the Justice Department, Virginia, and other states. <o:p></o:p>

However, US District Judge Leonie Brinkema cited logistical challenges in her decision to schedule the trial for September. <o:p></o:p>

While representatives for both Google and the Justice Department declined to comment on the trial date, the proceedings will likely draw attention as a pivotal moment in the ongoing legal scrutiny surrounding Google's practices in the digital advertising space.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

A US federal judge has set a trial date of September 9, 2024, for the antitrust lawsuit filed by the US Justice Department and a coalition of states against Google.

A US federal judge has set a trial date of September 9, 2024, for the antitrust lawsuit filed by the US Justice Department and a coalition of states against Google. This is based on a Reuters report. The lawsuit, initiated in January 2023, alleges that Google has abused its dominance in digital advertising technology, monopolising the market and impeding fair competition. The government is pushing for Google to divest its ad manager suite, contending that such actions are necessary to restore a level playing field in the digital advertising industry. Google has vehemently denied the allegations, stating that if the lawsuit were to succeed, it would have detrimental effects on innovation and hinder the growth of small businesses and publishers. The company argues that the proposed measures would "slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow." The impending trial marks a significant legal battle for Google, requiring the tech giant to defend its practices in the digital advertising sector against accusations of monopolistic behaviour. The trial, set to take place in Alexandria, Virginia, faced a request for an earlier start date in July from the Justice Department, Virginia, and other states. However, US District Judge Leonie Brinkema cited logistical challenges in her decision to schedule the trial for September. While representatives for both Google and the Justice Department declined to comment on the trial date, the proceedings will likely draw attention as a pivotal moment in the ongoing legal scrutiny surrounding Google's practices in the digital advertising space. (With inputs from Reuters)

Google faces September trial date in US antitrust lawsuit over digital ads: Report

Social media giant Snap, the parent company of Snapchat, disclosed on Monday its decision to lay off approximately 528 employees, constituting 10 per cent of its global workforce. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Snap's struggle to translate its popularity among young users into consistent revenue growth and compete with industry giants like Meta Platforms has prompted this restructuring effort. <o:p></o:p>

The announcement comes in the wake of similar actions by tech and media firms, reflecting a broader challenge faced by the industry.<o:p></o:p>

Jasmine Enberg, Principal Analyst at research firm Insider Intelligence, commented on the layoffs, expressing concerns about the state of Snap's business. <o:p></o:p>

"The layoffs don’t bode well for the state of Snap’s business. Snap is likely trying to garner some goodwill with investors, who rewarded its competitor for its cost-cutting measures," Reuters quoted her as saying.<o:p></o:p>

The tech industry has witnessed a series of layoffs, and Snap's decision to streamline its workforce is seen as an attempt to align with market expectations and address challenges in achieving sustained growth. <o:p></o:p>

Snap is set to report its fourth-quarter results on Tuesday.<o:p></o:p>

The company outlined expectations of pre-tax charges in the range of $55 million to $75 million, primarily covering severance and related costs, with a significant portion expected to be incurred during the first quarter of 2024. <o:p></o:p>

The restructuring aims to ensure the capacity for incremental investments supporting future growth.<o:p></o:p>

A person familiar with the matter noted that remote workers are disproportionately affected by Snap's workforce reduction, highlighting the company's push for employees to return to the office for four days a week. <o:p></o:p>

The layoffs at Snap contribute to the overall tech industry trend, with almost 32,000 workers being let go from 122 tech companies since the beginning of the year. <o:p></o:p>

The sector witnessed 168,032 job cuts in 2023, accounting for the highest number of layoffs across industries, according to a report by Challenger, Gray and Christmas.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Social media giant Snap, the parent company of Snapchat, disclosed on Monday its decision to lay off approximately 528 employees, constituting 10 per cent of its global workforce.

Social media giant Snap, the parent company of Snapchat, disclosed on Monday its decision to lay off approximately 528 employees, constituting 10 per cent of its global workforce. This is based on a Reuters report. Snap's struggle to translate its popularity among young users into consistent revenue growth and compete with industry giants like Meta Platforms has prompted this restructuring effort. The announcement comes in the wake of similar actions by tech and media firms, reflecting a broader challenge faced by the industry. Jasmine Enberg, Principal Analyst at research firm Insider Intelligence, commented on the layoffs, expressing concerns about the state of Snap's business. "The layoffs don’t bode well for the state of Snap’s business. Snap is likely trying to garner some goodwill with investors, who rewarded its competitor for its cost-cutting measures," Reuters quoted her as saying. The tech industry has witnessed a series of layoffs, and Snap's decision to streamline its workforce is seen as an attempt to align with market expectations and address challenges in achieving sustained growth. Snap is set to report its fourth-quarter results on Tuesday. The company outlined expectations of pre-tax charges in the range of $55 million to $75 million, primarily covering severance and related costs, with a significant portion expected to be incurred during the first quarter of 2024. The restructuring aims to ensure the capacity for incremental investments supporting future growth. A person familiar with the matter noted that remote workers are disproportionately affected by Snap's workforce reduction, highlighting the company's push for employees to return to the office for four days a week. The layoffs at Snap contribute to the overall tech industry trend, with almost 32,000 workers being let go from 122 tech companies since the beginning of the year. The sector witnessed 168,032 job cuts in 2023, accounting for the highest number of layoffs across industries, according to a report by Challenger, Gray and Christmas. (With inputs from Reuters)

Snap announces 10 per cent workforce cut amid tech industry layoffs: Report

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom. <o:p></o:p>

According to a Reuters report, the stock experienced a 4 per cent surge, reaching $689.21, poised to contribute approximately $70 billion to Nvidia's market capitalisation, which stood at $1.63 trillion at Friday's close.<o:p></o:p>

Recognised as a symbol of the AI frenzy, Nvidia witnessed a historic monthly increase in market value in January, reflecting its prominent position in the rapidly evolving tech landscape.<o:p></o:p>

Goldman Sachs analyst Toshiya Hari expressed confidence in Nvidia's continued success.<o:p></o:p>

"We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Reuters quoted him as saying.<o:p></o:p>

Despite the significant growth in Nvidia's stock price, up 39 per cent this year, Hari sees further potential for expansion. <o:p></o:p>

The analyst raised the price target to $800, marking a 21 per cent upside from current levels and reflecting the continued optimism surrounding Nvidia's future performance.<o:p></o:p>

The AI-focused growth strategy extends beyond Nvidia, with signs of AI monetisation evident in various companies. <o:p></o:p>

Hari pointed to positive developments from tech giants such as Microsoft and Meta Platforms, as well as encouraging earnings outlooks from AI server maker Super Micro Computer. <o:p></o:p>

These indicators contribute to Goldman Sachs' decision to raise full-year 2025-2026 earnings estimates for Nvidia by an average of 22 per cent. <o:p></o:p>

The anticipated robust demand for AI servers and improving graphics processing unit (GPU) supply further underlines the positive trajectory projected for Nvidia in the coming years.<o:p></o:p>

While Nvidia thrives on the AI wave, other chipmakers not deeply involved in AI, like Intel, have experienced a relative lag in their stock performance. <o:p></o:p>

Nvidia's dominance in the AI market has unlocked substantial revenue, setting it apart in an industry where AI capabilities are becoming increasingly integral. <o:p></o:p>

The company is poised to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom.

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom. According to a Reuters report, the stock experienced a 4 per cent surge, reaching $689.21, poised to contribute approximately $70 billion to Nvidia's market capitalisation, which stood at $1.63 trillion at Friday's close. Recognised as a symbol of the AI frenzy, Nvidia witnessed a historic monthly increase in market value in January, reflecting its prominent position in the rapidly evolving tech landscape. Goldman Sachs analyst Toshiya Hari expressed confidence in Nvidia's continued success. "We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Reuters quoted him as saying. Despite the significant growth in Nvidia's stock price, up 39 per cent this year, Hari sees further potential for expansion. The analyst raised the price target to $800, marking a 21 per cent upside from current levels and reflecting the continued optimism surrounding Nvidia's future performance. The AI-focused growth strategy extends beyond Nvidia, with signs of AI monetisation evident in various companies. Hari pointed to positive developments from tech giants such as Microsoft and Meta Platforms, as well as encouraging earnings outlooks from AI server maker Super Micro Computer. These indicators contribute to Goldman Sachs' decision to raise full-year 2025-2026 earnings estimates for Nvidia by an average of 22 per cent. The anticipated robust demand for AI servers and improving graphics processing unit (GPU) supply further underlines the positive trajectory projected for Nvidia in the coming years. While Nvidia thrives on the AI wave, other chipmakers not deeply involved in AI, like Intel, have experienced a relative lag in their stock performance. Nvidia's dominance in the AI market has unlocked substantial revenue, setting it apart in an industry where AI capabilities are becoming increasingly integral. The company is poised to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data. (With inputs from Reuters)

Nvidia surges to record high as Goldman Sachs boosts price target on AI growth

Huawei, the Chinese tech giant, is facing production challenges as it grapples with surging demand for its artificial intelligence (AI) chips, leading to a slowdown in the manufacturing of its premium Mate 60 smartphones.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The company's production facility, responsible for both Ascend AI chips and Kirin chips, has encountered manufacturing constraints, with a low yield rate affecting output quality. <o:p></o:p>

The situation indicates the complexities faced by Huawei as it navigates a global race for AI functionality amid a Sino-US technological standoff and aims to rebuild its smartphone unit following US sanctions in 2019.<o:p></o:p>

Sources familiar with the matter told Reuters that Huawei has prioritised the production of Ascend chips over Kirin chips, leading to the slowdown in manufacturing for Mate 60 smartphones. <o:p></o:p>

The shift in priorities is a strategic response to the soaring demand for AI chips, reflecting Huawei's efforts to remain competitive in the market. <o:p></o:p>

The global race for AI functionality, coupled with US restrictions on the sale of AI processing chips to China, has intensified the challenges faced by Huawei, which has been compelled to explore domestic alternatives to meet its requirements.<o:p></o:p>

Analysts speculate on Huawei's chip manufacturing capabilities, saying that advancements in Huawei's chip technology became apparent with the unanticipated August launch of the Mate 60 series, featuring Chinese-made chips capable of fifth-generation (5G) telecommunication speeds. <o:p></o:p>

The production bottleneck, particularly with Mate 60 handsets consistently out of stock, has drawn attention to the intricacies of Huawei's chip manufacturing process. <o:p></o:p>

The company is reportedly working to improve the yield rate, hoping that the current production arrangement is a short-term measure.<o:p></o:p>

Huawei's challenges in AI chip production also impact other products, including the Ascend-equipped computing unit MDC 810, which powers advanced driver assistance systems. <o:p></o:p>

Last week, Reuters reported that Chinese automakers had to delay the delivery of flagship models due to production issues with the MDC 810. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Huawei, the Chinese tech giant, is facing production challenges as it grapples with surging demand for its artificial intelligence (AI) chips, leading to a slowdown in the manufacturing of its premium Mate 60 smartphones.

Huawei, the Chinese tech giant, is facing production challenges as it grapples with surging demand for its artificial intelligence (AI) chips, leading to a slowdown in the manufacturing of its premium Mate 60 smartphones. This is based on a Reuters report. The company's production facility, responsible for both Ascend AI chips and Kirin chips, has encountered manufacturing constraints, with a low yield rate affecting output quality. The situation indicates the complexities faced by Huawei as it navigates a global race for AI functionality amid a Sino-US technological standoff and aims to rebuild its smartphone unit following US sanctions in 2019. Sources familiar with the matter told Reuters that Huawei has prioritised the production of Ascend chips over Kirin chips, leading to the slowdown in manufacturing for Mate 60 smartphones. The shift in priorities is a strategic response to the soaring demand for AI chips, reflecting Huawei's efforts to remain competitive in the market. The global race for AI functionality, coupled with US restrictions on the sale of AI processing chips to China, has intensified the challenges faced by Huawei, which has been compelled to explore domestic alternatives to meet its requirements. Analysts speculate on Huawei's chip manufacturing capabilities, saying that advancements in Huawei's chip technology became apparent with the unanticipated August launch of the Mate 60 series, featuring Chinese-made chips capable of fifth-generation (5G) telecommunication speeds. The production bottleneck, particularly with Mate 60 handsets consistently out of stock, has drawn attention to the intricacies of Huawei's chip manufacturing process. The company is reportedly working to improve the yield rate, hoping that the current production arrangement is a short-term measure. Huawei's challenges in AI chip production also impact other products, including the Ascend-equipped computing unit MDC 810, which powers advanced driver assistance systems. Last week, Reuters reported that Chinese automakers had to delay the delivery of flagship models due to production issues with the MDC 810. (With inputs from Reuters)

Huawei faces production hurdles as AI chip demand surges, impacting Mate 60 phones

In response to growing concerns about housing affordability, Canada has taken a significant step by extending the ban on foreign ownership of Canadian housing for an additional two years. <o:p></o:p>

Deputy Prime Minister Chrystia Freeland announced the extension, emphasising the government's commitment to addressing worries about Canadians being priced out of housing markets across the country. <o:p></o:p>

The housing affordability crisis in Canada has been attributed to increased migration and international students, leading to heightened demand for homes at a time when rising costs have hampered construction efforts.<o:p></o:p>

"As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027," Reuters quoted Freeland as saying.<o:p></o:p>

The move to extend the ban aligns with the Canadian government's acknowledgment that foreign ownership has contributed to concerns about Canadians being priced out of housing markets in various cities and towns. <o:p></o:p>

The housing affordability crisis has become a critical issue for the Canadian government, prompting strategic measures to alleviate the pressure on the housing market.<o:p></o:p>

The recent announcement follows Canada's decision to implement an immediate two-year cap on international student permits, coupled with a halt in issuing work permits to some students post-graduation. <o:p></o:p>

These measures are part of a broader effort to manage the influx of newcomers, seen as exacerbating the existing housing crisis. Rapid population growth, largely fuelled by immigration, has strained essential services like healthcare and education while also playing a role in driving up housing costs.<o:p></o:p>

The housing affordability crisis has implications beyond the real estate market, impacting various aspects of Canadian society. The strain on services and the surge in housing costs have become significant challenges for Liberal Prime Minister Justin Trudeau. <o:p></o:p>

Recent opinion polls indicate a decline in Trudeau's support, suggesting that he could face challenges in an election if one were held presently.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In response to growing concerns about housing affordability, Canada has taken a significant step by extending the ban on foreign ownership of Canadian housing for an additional two years.

In response to growing concerns about housing affordability, Canada has taken a significant step by extending the ban on foreign ownership of Canadian housing for an additional two years. Deputy Prime Minister Chrystia Freeland announced the extension, emphasising the government's commitment to addressing worries about Canadians being priced out of housing markets across the country. The housing affordability crisis in Canada has been attributed to increased migration and international students, leading to heightened demand for homes at a time when rising costs have hampered construction efforts. "As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027," Reuters quoted Freeland as saying. The move to extend the ban aligns with the Canadian government's acknowledgment that foreign ownership has contributed to concerns about Canadians being priced out of housing markets in various cities and towns. The housing affordability crisis has become a critical issue for the Canadian government, prompting strategic measures to alleviate the pressure on the housing market. The recent announcement follows Canada's decision to implement an immediate two-year cap on international student permits, coupled with a halt in issuing work permits to some students post-graduation. These measures are part of a broader effort to manage the influx of newcomers, seen as exacerbating the existing housing crisis. Rapid population growth, largely fuelled by immigration, has strained essential services like healthcare and education while also playing a role in driving up housing costs. The housing affordability crisis has implications beyond the real estate market, impacting various aspects of Canadian society. The strain on services and the surge in housing costs have become significant challenges for Liberal Prime Minister Justin Trudeau. Recent opinion polls indicate a decline in Trudeau's support, suggesting that he could face challenges in an election if one were held presently. (With inputs from Reuters)

Canada extends ban on foreign ownership of housing amid housing affordability crisis

China's exporters, particularly smaller enterprises, find themselves at a crossroads as prolonged factory deflation takes a toll on profit margins. Fierce price wars and shrinking business opportunities, exacerbated by higher interest rates abroad and growing trade protectionism, have left many exporters grappling with difficult choices. <o:p></o:p>

Reuters cited Kris Lin, an owner of a lighting factory, who highlighted the dilemma, stating, "It was impossible for me to lose this order." The relentless price competition poses a threat not only to individual businesses but also to the broader economic landscape in China.<o:p></o:p>

Survival struggles for small exporters<o:p></o:p>

Smaller Chinese exporters, locked in relentless price wars, are facing an uphill battle for survival. The continuous fall in producer prices, persisting for 15 consecutive months, has severely impacted profit margins, risking industrial output and jobs. The economic challenges compound existing issues like a property crisis and a debt crunch. <o:p></o:p>

Raymond Yeung, Chief China Economist at ANZ, emphasised the urgency of addressing deflation as a higher policy priority than achieving expected growth targets. Yeung warned of a potential vicious cycle, where companies cut prices, leading to staff salary reductions and subsequently hampering consumer spending.<o:p></o:p>

Impact on industrial profits and economic growth<o:p></o:p>

China's industrial profits experienced a 2.3 per cent decline in the previous year, adding to the 4 per cent drop in 2022 due to the COVID-19 pandemic. Manufacturing activity has been contracting for four consecutive months, with export orders shrinking for ten months straight. <o:p></o:p>

The challenging economic landscape has led to a decline in profits, prompting the need for policymakers to consider alternative strategies to stimulate growth. Louis Kuijs, Asia-Pacific Chief Economist at S&amp;P Global, underscored the importance of balanced growth to alleviate downward pressure on prices and margins. <o:p></o:p>

Financial resources and the broken monetary policy link<o:p></o:p>

China's focus on channelling financial resources into the manufacturing sector, rather than consumers, has raised concerns about overcapacity and deflation, even in booming higher-end sectors. Smaller firms are hesitant to take on loans to finance new business, contributing to what economists view as a broken link in China's monetary policy. Investment by private companies dropped 0.4 per cent last year, while state investment rose 6.4 per cent, indicating a growing inefficiency in the monetary policy framework. The intensifying competition in various industries, described as a "rat race" by an executive in the automotive molds sector, further complicates the situation. (Reuters)<o:p></o:p>

The urgency to address deflation and preserve jobs<o:p></o:p>

China faced a deflationary scare in 2015, primarily in state-dominated primary industries like steel. However, the current scenario involves a surplus in the private sector, with electronics, chemicals, and machinery makers being particularly affected. <o:p></o:p>

The pressure to cut jobs is intense, and factory owners are grappling with difficult decisions. Miao Yujie, an e-commerce clothing exporter, noted the anxious calls from bank managers offering loans but highlighted the impracticality for smaller firms to borrow amid fierce competition.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China's exporters, particularly smaller enterprises, find themselves at a crossroads as prolonged factory deflation takes a toll on profit margins. Fierce price wars and shrinking business opportunities, exacerbated by higher interest rates abroad and growing trade protectionism, have left many exporters grappling with difficult choices.

China's exporters, particularly smaller enterprises, find themselves at a crossroads as prolonged factory deflation takes a toll on profit margins. Fierce price wars and shrinking business opportunities, exacerbated by higher interest rates abroad and growing trade protectionism, have left many exporters grappling with difficult choices. Reuters cited Kris Lin, an owner of a lighting factory, who highlighted the dilemma, stating, "It was impossible for me to lose this order." The relentless price competition poses a threat not only to individual businesses but also to the broader economic landscape in China. Survival struggles for small exporters Smaller Chinese exporters, locked in relentless price wars, are facing an uphill battle for survival. The continuous fall in producer prices, persisting for 15 consecutive months, has severely impacted profit margins, risking industrial output and jobs. The economic challenges compound existing issues like a property crisis and a debt crunch. Raymond Yeung, Chief China Economist at ANZ, emphasised the urgency of addressing deflation as a higher policy priority than achieving expected growth targets. Yeung warned of a potential vicious cycle, where companies cut prices, leading to staff salary reductions and subsequently hampering consumer spending. Impact on industrial profits and economic growth China's industrial profits experienced a 2.3 per cent decline in the previous year, adding to the 4 per cent drop in 2022 due to the COVID-19 pandemic. Manufacturing activity has been contracting for four consecutive months, with export orders shrinking for ten months straight. The challenging economic landscape has led to a decline in profits, prompting the need for policymakers to consider alternative strategies to stimulate growth. Louis Kuijs, Asia-Pacific Chief Economist at S&P Global, underscored the importance of balanced growth to alleviate downward pressure on prices and margins. Financial resources and the broken monetary policy link China's focus on channelling financial resources into the manufacturing sector, rather than consumers, has raised concerns about overcapacity and deflation, even in booming higher-end sectors. Smaller firms are hesitant to take on loans to finance new business, contributing to what economists view as a broken link in China's monetary policy. Investment by private companies dropped 0.4 per cent last year, while state investment rose 6.4 per cent, indicating a growing inefficiency in the monetary policy framework. The intensifying competition in various industries, described as a "rat race" by an executive in the automotive molds sector, further complicates the situation. (Reuters) The urgency to address deflation and preserve jobs China faced a deflationary scare in 2015, primarily in state-dominated primary industries like steel. However, the current scenario involves a surplus in the private sector, with electronics, chemicals, and machinery makers being particularly affected. The pressure to cut jobs is intense, and factory owners are grappling with difficult decisions. Miao Yujie, an e-commerce clothing exporter, noted the anxious calls from bank managers offering loans but highlighted the impracticality for smaller firms to borrow amid fierce competition. (With inputs from Reuters)

China's exporters on the brink as prolonged deflation threatens survival