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Sri Lanka's Colombo port is witnessing a significant increase in container volumes in recent weeks, attributed to vessels diverting from tensions in the southern Red Sea.<o:p></o:p>

According to Reuters, officials on Tuesday reported that shipping companies are choosing Colombo as a convenient transit point due to its strategic location. <o:p></o:p>

The Yemeni Houthi rebels, backed by Iran, have targeted ships in the Red Sea since November, prompting some shipping companies to opt for a longer and more expensive route around Africa's Cape of Good Hope. <o:p></o:p>

Colombo's accessibility to the Middle East, South Asia, and East Asia positions it as a key port for vessels navigating these regions.<o:p></o:p>

Reuters cited Lal Weerasinghe, a senior official at the Sri Lanka Ports Authority (SLPA), who highlighted Colombo's prominence as the first hub for ships coming past South Africa, providing a more convenient location than Singapore. <o:p></o:p>

The port, handling 6.94 million 20-foot equivalent units (TEUs) in 2023, experienced a 2 per cent annual increase. <o:p></o:p>

December saw a notable 15 per cent year-on-year surge in TEUs. <o:p></o:p>

Over the past four to six weeks, shipping lines have sought additional berthing windows, and transhipment volumes from neighbouring India have also risen. <o:p></o:p>

Despite the increased demand, the port had to decline requests from some shipping lines to prevent delays for existing customers.<o:p></o:p>

"We typically handle about 5,000-5,500 TEUs (per day), but since late last year, there has been an increase of about 1,000 TEUs per day," Weerasinghe told Reuters.<o:p></o:p>

He noted that up to 50 per cent of this surge is attributed to the Mediterranean Shipping Company, a leading container shipping company. <o:p></o:p>

The Colombo port is increasingly becoming a relaying port, with shipping companies offloading entire cargoes to different ships. <o:p></o:p>

Officials from other Colombo port terminals revealed a rise in vessel calls, especially due to increased transshipment from India. <o:p></o:p>

Expectations are high that the heightened traffic will propel Colombo port towards double-digit growth in the first quarter of 2024.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Sri Lanka's Colombo port is witnessing a significant increase in container volumes in recent weeks, attributed to vessels diverting from tensions in the southern Red Sea.

Sri Lanka's Colombo port is witnessing a significant increase in container volumes in recent weeks, attributed to vessels diverting from tensions in the southern Red Sea. According to Reuters, officials on Tuesday reported that shipping companies are choosing Colombo as a convenient transit point due to its strategic location. The Yemeni Houthi rebels, backed by Iran, have targeted ships in the Red Sea since November, prompting some shipping companies to opt for a longer and more expensive route around Africa's Cape of Good Hope. Colombo's accessibility to the Middle East, South Asia, and East Asia positions it as a key port for vessels navigating these regions. Reuters cited Lal Weerasinghe, a senior official at the Sri Lanka Ports Authority (SLPA), who highlighted Colombo's prominence as the first hub for ships coming past South Africa, providing a more convenient location than Singapore. The port, handling 6.94 million 20-foot equivalent units (TEUs) in 2023, experienced a 2 per cent annual increase. December saw a notable 15 per cent year-on-year surge in TEUs. Over the past four to six weeks, shipping lines have sought additional berthing windows, and transhipment volumes from neighbouring India have also risen. Despite the increased demand, the port had to decline requests from some shipping lines to prevent delays for existing customers. "We typically handle about 5,000-5,500 TEUs (per day), but since late last year, there has been an increase of about 1,000 TEUs per day," Weerasinghe told Reuters. He noted that up to 50 per cent of this surge is attributed to the Mediterranean Shipping Company, a leading container shipping company. The Colombo port is increasingly becoming a relaying port, with shipping companies offloading entire cargoes to different ships. Officials from other Colombo port terminals revealed a rise in vessel calls, especially due to increased transshipment from India. Expectations are high that the heightened traffic will propel Colombo port towards double-digit growth in the first quarter of 2024. (With inputs from Reuters)

Colombo port experiences surge in traffic amid Red Sea tensions

The "Year of Efficiency" in Big Tech may be over, but signs indicate that the industry's major players, Google and Amazon, are set to continue job cuts in 2024 as they intensify their investments in generative artificial intelligence (AI). <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Analysts and industry experts anticipate that this year's layoffs will be smaller and more targeted, with companies racing to advance in the AI sector likely to make strategic moves to offset substantial spending on the technology.<o:p></o:p>

Alphabet, Google's parent company, recently laid off around a thousand employees across various divisions, emphasising its commitment to invest in "biggest priorities."<o:p></o:p>

The cuts impacted divisions such as the voice assistant unit, Pixel, Fitbit, and even the advertising business. <o:p></o:p>

Amazon, too, laid off several hundred employees, focusing on its streaming and studio operations, including job cuts in its Twitch live-streaming platform and Audible audiobook unit. In total, over 7,500 tech employees have faced job cuts in January alone.<o:p></o:p>

While the total size of layoffs is expected to be smaller compared to the significant cuts seen last year, Google and Amazon are aggressively investing in AI initiatives. <o:p></o:p>

Google unveiled its long-awaited Gemini model last month, aiming to close the gap with Microsoft in the AI race. Amazon is developing a model codenamed "Olympus" to compete with OpenAI's GPT-4 model. <o:p></o:p>

The companies are adjusting their hiring priorities, offering substantial salaries for AI roles, reflecting the industry's shift towards prioritizing AI capabilities.<o:p></o:p>

The tech sector witnessed a substantial loss of 168,032 jobs in 2023, representing the highest number of layoffs across industries. 

T<o:p></o:p>ens of thousands of job cuts at tech giants, including Alphabet, Microsoft, Amazon, and Meta, marked 2023 as the "Year of Efficiency," as stated by Meta CEO Mark Zuckerberg.<o:p></o:p>

Despite the AI-driven dynamism, experts believe that the tech industry's hiring priorities are changing, with a focus on AI roles and a departure from the massive layoffs seen during the pandemic.<o:p></o:p>

With AI becoming a driving force, some tech firms are offering lucrative salaries for AI roles. <o:p></o:p>

Match's Hinge dating app sought a vice president of AI with a base salary of up to $398,000 a year, while Amazon offered a top salary of $340,300 for a senior manager of applied science and genAI. <o:p></o:p>

The increased spending on AI is raising investor expectations, although the returns for most companies may take longer to materialise, with only Microsoft and Nvidia emerging as significant winners in the current AI boom.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The "Year of Efficiency" in Big Tech may be over, but signs indicate that the industry's major players, Google and Amazon, are set to continue job cuts in 2024 as they intensify their investments in generative artificial intelligence (AI).

The "Year of Efficiency" in Big Tech may be over, but signs indicate that the industry's major players, Google and Amazon, are set to continue job cuts in 2024 as they intensify their investments in generative artificial intelligence (AI). This is based on a Reuters report. Analysts and industry experts anticipate that this year's layoffs will be smaller and more targeted, with companies racing to advance in the AI sector likely to make strategic moves to offset substantial spending on the technology. Alphabet, Google's parent company, recently laid off around a thousand employees across various divisions, emphasising its commitment to invest in "biggest priorities." The cuts impacted divisions such as the voice assistant unit, Pixel, Fitbit, and even the advertising business. Amazon, too, laid off several hundred employees, focusing on its streaming and studio operations, including job cuts in its Twitch live-streaming platform and Audible audiobook unit. In total, over 7,500 tech employees have faced job cuts in January alone. While the total size of layoffs is expected to be smaller compared to the significant cuts seen last year, Google and Amazon are aggressively investing in AI initiatives. Google unveiled its long-awaited Gemini model last month, aiming to close the gap with Microsoft in the AI race. Amazon is developing a model codenamed "Olympus" to compete with OpenAI's GPT-4 model. The companies are adjusting their hiring priorities, offering substantial salaries for AI roles, reflecting the industry's shift towards prioritizing AI capabilities. The tech sector witnessed a substantial loss of 168,032 jobs in 2023, representing the highest number of layoffs across industries. Tens of thousands of job cuts at tech giants, including Alphabet, Microsoft, Amazon, and Meta, marked 2023 as the "Year of Efficiency," as stated by Meta CEO Mark Zuckerberg. Despite the AI-driven dynamism, experts believe that the tech industry's hiring priorities are changing, with a focus on AI roles and a departure from the massive layoffs seen during the pandemic. With AI becoming a driving force, some tech firms are offering lucrative salaries for AI roles. Match's Hinge dating app sought a vice president of AI with a base salary of up to $398,000 a year, while Amazon offered a top salary of $340,300 for a senior manager of applied science and genAI. The increased spending on AI is raising investor expectations, although the returns for most companies may take longer to materialise, with only Microsoft and Nvidia emerging as significant winners in the current AI boom. (With inputs from Reuters)

Tech titans maintain job cuts in 2024 amid AI investment surge

Researchers at Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) have pioneered an artificial intelligence system capable of imitating handwriting styles with unprecedented accuracy. This transformative technology, recently patented by the US Patent and Trademark Office, signifies a leap forward in integrating AI into creativity and personal expression.

Unveiling the breakthrough technology

The story unfolds with MBZUAI's AI handwriting system leveraging a transformer model. This is a neural network designed for sequential data comprehension. It marks a significant departure from conventional handwriting generation methods, allowing the system to learn and mimic individual handwriting styles based on just a few paragraphs of written material. This breakthrough opens new avenues for innovation and raises intriguing questions about the future of traditional modes of written communication.

Balancing potential &amp; ethical concerns

As the possibilities of the technology become apparent, so do the ethical considerations. The system's potential to assist the injured in writing without a pen is juxtaposed against the risk of mass forgeries and misuse. MBZUAI researchers emphasise the importance of responsible deployment. Comparing it to developing an anti-virus for a virus, the team underscores the need for public awareness and robust anti-forgery measures.

Multilingual challenges &amp; future endeavours

While the transformer model demonstrates proficiency in English and French, the researchers acknowledge the ongoing challenge of replicating handwritten text in Arabic. This acknowledgement reflects the commitment to inclusivity in the development of AI technologies. Despite these challenges, MBZUAI intends to apply the research to real-world applications within months and actively seeks commercial collaborators. The potential applications span from deciphering doctors' handwriting to crafting personalized advertising, showcasing the versatility of this&nbsp;technology.

Bottomline

This technological advancement transcends linguistic barriers and opens new frontiers for creative expression and practical applications. As we navigate the uncharted waters of AI-generated handwriting, this latest innovation becomes a crucial beacon, guiding the way for future developments in the dynamic landscape of artificial intelligence.

Researchers at Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) have pioneered an artificial intelligence system capable of imitating handwriting styles with unprecedented accuracy.

Researchers at Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) have pioneered an artificial intelligence system capable of imitating handwriting styles with unprecedented accuracy. This transformative technology, recently patented by the US Patent and Trademark Office, signifies a leap forward in integrating AI into creativity and personal expression. Unveiling the breakthrough technology The story unfolds with MBZUAI's AI handwriting system leveraging a transformer model. This is a neural network designed for sequential data comprehension. It marks a significant departure from conventional handwriting generation methods, allowing the system to learn and mimic individual handwriting styles based on just a few paragraphs of written material. This breakthrough opens new avenues for innovation and raises intriguing questions about the future of traditional modes of written communication. Balancing potential & ethical concerns As the possibilities of the technology become apparent, so do the ethical considerations. The system's potential to assist the injured in writing without a pen is juxtaposed against the risk of mass forgeries and misuse. MBZUAI researchers emphasise the importance of responsible deployment. Comparing it to developing an anti-virus for a virus, the team underscores the need for public awareness and robust anti-forgery measures. Multilingual challenges & future endeavours While the transformer model demonstrates proficiency in English and French, the researchers acknowledge the ongoing challenge of replicating handwritten text in Arabic. This acknowledgement reflects the commitment to inclusivity in the development of AI technologies. Despite these challenges, MBZUAI intends to apply the research to real-world applications within months and actively seeks commercial collaborators. The potential applications span from deciphering doctors' handwriting to crafting personalized advertising, showcasing the versatility of this technology. Bottomline This technological advancement transcends linguistic barriers and opens new frontiers for creative expression and practical applications. As we navigate the uncharted waters of AI-generated handwriting, this latest innovation becomes a crucial beacon, guiding the way for future developments in the dynamic landscape of artificial intelligence.

​​​​​​​Ink meets algorithm: AI university redefines handwriting with artificial intelligence

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Nvidia, currently holding a dominant position in the advanced AI chip market, faces competition from AMD, which is anticipated to make strides this year, increasing deliveries of its own chips to enterprise clients, according to Barclays analysts led by Tom O'Malley.<o:p></o:p>

Barclays analysts noted in an investor note that with supply constraints, customers often resort to using the entire Nvidia platform to secure priority shipments of accelerators.<o:p></o:p>

They anticipate that 2024 will be the year when AI opens up further, with other chipmakers like AMD gaining market share.<o:p></o:p>

Nvidia's stock witnessed a 3 per cent increase, reaching $563.65 and setting a new record high. <o:p></o:p>

Simultaneously, AMD shares surged by 7.5 per cent to $157.57, reaching their highest level in over two years. <o:p></o:p>

Nvidia's shares more than tripled in value in the past year, making it the world's most valuable chipmaker, while AMD's shares more than doubled.<o:p></o:p>

Barclays raised its price target for AMD shares to $200 from $120, reflecting the positive outlook for the company. <o:p></o:p>

KeyBanc analysts also increased their price target for AMD to $195 from $170. <o:p></o:p>

Nvidia, too, received a price target hike to $740 from $650 from KeyBanc. <o:p></o:p>

Both Nvidia and AMD are currently among the top gainers in the PHLX semiconductor index, which showed a 1.15 per cent increase during the session.<o:p></o:p>

Analysts covering Nvidia's stock maintain a median price target of $625, slightly down from $627.50 a month ago. The collective recommendation for the stock is "buy." Conversely, analysts covering AMD's shares have a median price target of $145, up from $130 a month ago, with a collective recommendation to buy the stock [Reuters].<o:p></o:p>

In a strategic move, Nvidia plans to commence mass production later this year of an AI chip tailored for its Chinese customers, aligning with tightened US export rules. <o:p></o:p>

On the other hand, AMD, aiming to challenge Nvidia's flagship microprocessors, announced two new AI data centre chips in December.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants.

Shares of Nvidia and Advanced Micro Devices (AMD) experienced a significant surge on Tuesday as investor confidence in the growing demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to raise their price targets for these semiconductor giants. This is based on a Reuters report. Nvidia, currently holding a dominant position in the advanced AI chip market, faces competition from AMD, which is anticipated to make strides this year, increasing deliveries of its own chips to enterprise clients, according to Barclays analysts led by Tom O'Malley. Barclays analysts noted in an investor note that with supply constraints, customers often resort to using the entire Nvidia platform to secure priority shipments of accelerators. They anticipate that 2024 will be the year when AI opens up further, with other chipmakers like AMD gaining market share. Nvidia's stock witnessed a 3 per cent increase, reaching $563.65 and setting a new record high. Simultaneously, AMD shares surged by 7.5 per cent to $157.57, reaching their highest level in over two years. Nvidia's shares more than tripled in value in the past year, making it the world's most valuable chipmaker, while AMD's shares more than doubled. Barclays raised its price target for AMD shares to $200 from $120, reflecting the positive outlook for the company. KeyBanc analysts also increased their price target for AMD to $195 from $170. Nvidia, too, received a price target hike to $740 from $650 from KeyBanc. Both Nvidia and AMD are currently among the top gainers in the PHLX semiconductor index, which showed a 1.15 per cent increase during the session. Analysts covering Nvidia's stock maintain a median price target of $625, slightly down from $627.50 a month ago. The collective recommendation for the stock is "buy." Conversely, analysts covering AMD's shares have a median price target of $145, up from $130 a month ago, with a collective recommendation to buy the stock [Reuters]. In a strategic move, Nvidia plans to commence mass production later this year of an AI chip tailored for its Chinese customers, aligning with tightened US export rules. On the other hand, AMD, aiming to challenge Nvidia's flagship microprocessors, announced two new AI data centre chips in December. (With inputs from Reuters)

Nvidia and AMD shares soar as analysts boost price targets amid AI optimism

China's economy is anticipated to exhibit a slight recovery in the fourth quarter, likely reaching a growth rate of 5.3 per cent, up from the third quarter's 4.9 per cent, as revealed by a Reuters poll. <o:p></o:p>

Although this improvement aligns with the government's growth target, concerns loom over the economic outlook for 2024. <o:p></o:p>

Challenges such as a prolonged property downturn and subdued consumer confidence contribute to the uncertain terrain despite various policy interventions.<o:p></o:p>

While the yearly GDP growth is estimated to be 5.2 per cent for 2023, partially influenced by the low-base effect from the strict COVID-19 lockdowns in the previous year, the overall economic momentum is underlined by a sluggish quarterly growth rate.<o:p></o:p>

The forecast suggests a fourth-quarter growth of 1.0 per cent, a deceleration from the 1.3 per cent pace observed in July-September. <o:p></o:p>

This indicates persistent weaknesses despite policy measures taken to stimulate economic activity.<o:p></o:p>

In 2022, China faced a significant economic setback, with a mere 3 per cent growth due to stringent COVID restrictions, significantly missing the official target. <o:p></o:p>

The post-pandemic recovery has been challenging, marked by a prolonged property crisis, diminishing consumer and business confidence, escalating local government debts, and a globally feeble economic environment. <o:p></o:p>

Despite setting a growth target of around 5 per cent for 2023, the Chinese government is expected to maintain a similar goal for 2024, highlighting the ongoing uncertainties.<o:p></o:p>

Analysts polled by Reuters foresee a slowdown in growth to 4.6 per cent in 2024, with a further easing to 4.5 per cent in 2025. <o:p></o:p>

This projection intensifies the pressure on policymakers to introduce additional stimulus measures, aiming to restore confidence and navigate through the persisting property market downturn. <o:p></o:p>

Recent economic indicators, including deflationary pressures and subdued factory activity, suggest a challenging start for China in 2024.<o:p></o:p>

Investor dissatisfaction with China's performance in 2023 led to a weakened yuan currency and significant losses in the stock market. <o:p></o:p>

The market capitalisation of stocks listed in Shanghai and Shenzhen experienced a cumulative drop of $258 billion during the year, while Hong Kong-listed shares lost $592 billion.<o:p></o:p>

As the People's Bank of China (PBOC) pledges enhanced policy support for 2024, some surprises emerged when the central bank kept the medium-term policy rate unchanged, contrary to expectations for a cut. <o:p></o:p>

Analysts anticipate the PBOC to eventually implement policy rate cuts and a reduction in the one-year loan prime rate (LPR) in the first quarter of 2024 to bolster economic growth. <o:p></o:p>

The government is also likely to persist with fiscal spending, building on the 1 trillion yuan sovereign bonds unveiled in October for investment projects.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China's economy is anticipated to exhibit a slight recovery in the fourth quarter, likely reaching a growth rate of 5.3 per cent, up from the third quarter's 4.9 per cent, as revealed by a Reuters poll.

China's economy is anticipated to exhibit a slight recovery in the fourth quarter, likely reaching a growth rate of 5.3 per cent, up from the third quarter's 4.9 per cent, as revealed by a Reuters poll. Although this improvement aligns with the government's growth target, concerns loom over the economic outlook for 2024. Challenges such as a prolonged property downturn and subdued consumer confidence contribute to the uncertain terrain despite various policy interventions. While the yearly GDP growth is estimated to be 5.2 per cent for 2023, partially influenced by the low-base effect from the strict COVID-19 lockdowns in the previous year, the overall economic momentum is underlined by a sluggish quarterly growth rate. The forecast suggests a fourth-quarter growth of 1.0 per cent, a deceleration from the 1.3 per cent pace observed in July-September. This indicates persistent weaknesses despite policy measures taken to stimulate economic activity. In 2022, China faced a significant economic setback, with a mere 3 per cent growth due to stringent COVID restrictions, significantly missing the official target. The post-pandemic recovery has been challenging, marked by a prolonged property crisis, diminishing consumer and business confidence, escalating local government debts, and a globally feeble economic environment. Despite setting a growth target of around 5 per cent for 2023, the Chinese government is expected to maintain a similar goal for 2024, highlighting the ongoing uncertainties. Analysts polled by Reuters foresee a slowdown in growth to 4.6 per cent in 2024, with a further easing to 4.5 per cent in 2025. This projection intensifies the pressure on policymakers to introduce additional stimulus measures, aiming to restore confidence and navigate through the persisting property market downturn. Recent economic indicators, including deflationary pressures and subdued factory activity, suggest a challenging start for China in 2024. Investor dissatisfaction with China's performance in 2023 led to a weakened yuan currency and significant losses in the stock market. The market capitalisation of stocks listed in Shanghai and Shenzhen experienced a cumulative drop of $258 billion during the year, while Hong Kong-listed shares lost $592 billion. As the People's Bank of China (PBOC) pledges enhanced policy support for 2024, some surprises emerged when the central bank kept the medium-term policy rate unchanged, contrary to expectations for a cut. Analysts anticipate the PBOC to eventually implement policy rate cuts and a reduction in the one-year loan prime rate (LPR) in the first quarter of 2024 to bolster economic growth. The government is also likely to persist with fiscal spending, building on the 1 trillion yuan sovereign bonds unveiled in October for investment projects. (With inputs from Reuters)

China's Q4 GDP shows modest uptick amid economic challenges: Report

Microsoft on Monday announced the launch of Copilot Pro, an artificial intelligence subscription priced at $20 per month for consumers and small businesses in a move to broaden its market reach beyond large enterprises.<o:p></o:p>

This is based on a Reuters report. <o:p></o:p>

Following the introduction of a free version for Bing search engine last year, Copilot Pro aims to enhance Microsoft's widely used applications, including Word and Excel, by adding a text-drafting, number-crunching AI assistant. <o:p></o:p>

Jared Spataro, Corporate Vice President at Microsoft, told Reuters, "I can't imagine a commercial organisation out there that will not buy at least a seat of Copilot to see what it's all about."<o:p></o:p>

The Copilot Pro subscription provides users access to new tools and advanced AI models, such as GPT-4 Turbo, marking Microsoft's commitment to staying at the forefront of AI capabilities. <o:p></o:p>

The move is seen as part of Microsoft's strategy to encourage a wider user base, offering a more integrated and feature-rich experience within its everyday applications.<o:p></o:p>

"Copilot Pro would stand apart because it is integrated into applications that people use every day,” Reuters quoted Spataro as saying. <o:p></o:p>

This development comes in the wake of Microsoft removing the 300-person minimum requirement for the enterprise version of the software, making the security controls and Microsoft Teams upgrade available to smaller businesses at the $30 per-month per-user Copilot subscription level. <o:p></o:p>

Microsoft is positioning Copilot Pro to become an essential tool for individuals and small businesses, aiming to create a comprehensive ecosystem that spans across various user segments. <o:p></o:p>

The move is seen as a competitive response to Alphabet's Google, which is actively marketing AI for productivity and cloud software to business customers.<o:p></o:p>

Microsoft's foray into the consumer AI market with Copilot Pro places it in direct competition with OpenAI, a company Microsoft has funded. <o:p></o:p>

OpenAI introduced ChatGPT Plus, a $20-per-month subscription nearly a year ago, offering early access to new features and AI models. <o:p></o:p>

Despite the competition, Spataro expressed confidence that Copilot Pro would distinguish itself by being seamlessly integrated into everyday applications. <o:p></o:p>

The subscription's affordability and its integration into widely used Microsoft applications are expected to be key factors in enticing consumers and small businesses to adopt this AI-driven offering. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Microsoft on Monday announced the launch of Copilot Pro, an artificial intelligence subscription priced at $20 per month for consumers and small businesses in a move to broaden its market reach beyond large enterprises.

Microsoft on Monday announced the launch of Copilot Pro, an artificial intelligence subscription priced at $20 per month for consumers and small businesses in a move to broaden its market reach beyond large enterprises. This is based on a Reuters report. Following the introduction of a free version for Bing search engine last year, Copilot Pro aims to enhance Microsoft's widely used applications, including Word and Excel, by adding a text-drafting, number-crunching AI assistant. Jared Spataro, Corporate Vice President at Microsoft, told Reuters, "I can't imagine a commercial organisation out there that will not buy at least a seat of Copilot to see what it's all about." The Copilot Pro subscription provides users access to new tools and advanced AI models, such as GPT-4 Turbo, marking Microsoft's commitment to staying at the forefront of AI capabilities. The move is seen as part of Microsoft's strategy to encourage a wider user base, offering a more integrated and feature-rich experience within its everyday applications. "Copilot Pro would stand apart because it is integrated into applications that people use every day,” Reuters quoted Spataro as saying. This development comes in the wake of Microsoft removing the 300-person minimum requirement for the enterprise version of the software, making the security controls and Microsoft Teams upgrade available to smaller businesses at the $30 per-month per-user Copilot subscription level. Microsoft is positioning Copilot Pro to become an essential tool for individuals and small businesses, aiming to create a comprehensive ecosystem that spans across various user segments. The move is seen as a competitive response to Alphabet's Google, which is actively marketing AI for productivity and cloud software to business customers. Microsoft's foray into the consumer AI market with Copilot Pro places it in direct competition with OpenAI, a company Microsoft has funded. OpenAI introduced ChatGPT Plus, a $20-per-month subscription nearly a year ago, offering early access to new features and AI models. Despite the competition, Spataro expressed confidence that Copilot Pro would distinguish itself by being seamlessly integrated into everyday applications. The subscription's affordability and its integration into widely used Microsoft applications are expected to be key factors in enticing consumers and small businesses to adopt this AI-driven offering. (With inputs from Reuters)

Microsoft Unveils Copilot Pro: A $20 AI subscription for consumers and small businesses

Toy manufacturers are grappling with the complexities of shifting production away from China as surging costs and global disruptions reshape supply chain dynamics.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The Boston Consulting Group highlighted the challenging terrain faced by toy makers in a study, emphasising that such a transition is no simple task.<o:p></o:p>

Six years ago, Hasbro initiated the move towards diversification, collaborating with Indian supplier Aequs to sub-contract toy manufacturing. <o:p></o:p>

Rohit Hegde, Aequs' head of consumer verticals, revealed, "They said if you can get into toy manufacturing, now we're looking to shift millions of dollars worth of product from China to India."<o:p></o:p>

Aequs now produces a variety of toys for Hasbro and Spin Master in India. <o:p></o:p>

However, Hegde acknowledges the efficiency gap, telling Reuters, "We don't have the port facilities (in India) that China does. They have been doing this for the last 30 years; their efficiency levels are much better than ours."<o:p></o:p>

Despite the challenges, toy manufacturers recognise the risks of relying heavily on China, as evidenced during the COVID-19 pandemic when Chinese ports faced operational difficulties. <o:p></o:p>

The escalating labour costs in China have been pushing various industries towards geographical diversification. <o:p></o:p>

However, even as other sectors successfully shift production, the toy industry finds it challenging to follow suit.<o:p></o:p>

As of the first seven months of 2023, mainland China still produced 79 per cent of toys sold in the United States and Europe.<o:p></o:p>

Although this is a slight decrease from 82 per cent in 2019, the transition remains a formidable task.<o:p></o:p>

Chris Rogers from S&amp;P Global Market Intelligence points out, "Is it easy to re-shore away from mainland China? No, it isn't. That goes double for toys." <o:p></o:p>

The toy industry faces additional complexities due to its highly seasonal nature and stringent safety and sourcing requirements.<o:p></o:p>

The study reveals that despite rising wages in China pushing toy prices higher, manufacturers are compelled to consider alternative production centres to maintain cost-effectiveness. <o:p></o:p>

While China's minimum wage varies from 1,420 yuan to 2,690 yuan per month, India offers unskilled and semi-skilled workers for 9,000 to 15,000 Indian rupees a month. <o:p></o:p>

However, transitioning to other countries involves a significant time investment, ranging from 18 months to three years, depending on the manufacturing process.<o:p></o:p>

Leading toy manufacturers, including Hasbro and Mattel, have recognised the need to de-risk their dependence on China. <o:p></o:p>

Spiralling Chinese wages have contributed to an 8 per cent price increase in the UK in the first half of 2022. <o:p></o:p>

With the possibility of changes in US duties on Chinese toys, manufacturers are keen on exploring more cost-effective production centres.<o:p></o:p>

Reuters cited Nic Aldridge, the managing director at Bandai UK, who emphasised the industry's focus on de-risking China. "We are all looking at de-risking China. Raw materials costs have gone up a lot in China; we're looking for places where we could get a more reasonable cost," he said. <o:p></o:p>

Bandai is exploring additional manufacturing locations such as India and Thailand, recognising the importance of a diversified supply chain.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Toy manufacturers are grappling with the complexities of shifting production away from China as surging costs and global disruptions reshape supply chain dynamics.

Toy manufacturers are grappling with the complexities of shifting production away from China as surging costs and global disruptions reshape supply chain dynamics. This is based on a Reuters report. The Boston Consulting Group highlighted the challenging terrain faced by toy makers in a study, emphasising that such a transition is no simple task. Six years ago, Hasbro initiated the move towards diversification, collaborating with Indian supplier Aequs to sub-contract toy manufacturing. Rohit Hegde, Aequs' head of consumer verticals, revealed, "They said if you can get into toy manufacturing, now we're looking to shift millions of dollars worth of product from China to India." Aequs now produces a variety of toys for Hasbro and Spin Master in India. However, Hegde acknowledges the efficiency gap, telling Reuters, "We don't have the port facilities (in India) that China does. They have been doing this for the last 30 years; their efficiency levels are much better than ours." Despite the challenges, toy manufacturers recognise the risks of relying heavily on China, as evidenced during the COVID-19 pandemic when Chinese ports faced operational difficulties. The escalating labour costs in China have been pushing various industries towards geographical diversification. However, even as other sectors successfully shift production, the toy industry finds it challenging to follow suit. As of the first seven months of 2023, mainland China still produced 79 per cent of toys sold in the United States and Europe. Although this is a slight decrease from 82 per cent in 2019, the transition remains a formidable task. Chris Rogers from S&P Global Market Intelligence points out, "Is it easy to re-shore away from mainland China? No, it isn't. That goes double for toys." The toy industry faces additional complexities due to its highly seasonal nature and stringent safety and sourcing requirements. The study reveals that despite rising wages in China pushing toy prices higher, manufacturers are compelled to consider alternative production centres to maintain cost-effectiveness. While China's minimum wage varies from 1,420 yuan to 2,690 yuan per month, India offers unskilled and semi-skilled workers for 9,000 to 15,000 Indian rupees a month. However, transitioning to other countries involves a significant time investment, ranging from 18 months to three years, depending on the manufacturing process. Leading toy manufacturers, including Hasbro and Mattel, have recognised the need to de-risk their dependence on China. Spiralling Chinese wages have contributed to an 8 per cent price increase in the UK in the first half of 2022. With the possibility of changes in US duties on Chinese toys, manufacturers are keen on exploring more cost-effective production centres. Reuters cited Nic Aldridge, the managing director at Bandai UK, who emphasised the industry's focus on de-risking China. "We are all looking at de-risking China. Raw materials costs have gone up a lot in China; we're looking for places where we could get a more reasonable cost," he said. Bandai is exploring additional manufacturing locations such as India and Thailand, recognising the importance of a diversified supply chain. (With inputs from Reuters)

Toy manufacturers navigate complex terrain amid production shift challenges: Report

In a move towards securing critical minerals for the energy transition, India is set to invest approximately Rs 200 crore ($24 million) in exploring and developing five lithium mines in Argentina.

This is based on a report published by the Press Trust of India (PTI).

The agreement, signed between Khanij Bidesh India Ltd (KABIL), a state-owned joint venture, and Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), a government-owned mining and energy corporation in Argentina, aims to tap into Argentina's abundant lithium resources.

Lithium is a crucial component of lithium-ion batteries that power electric vehicles and battery energy storage systems.

The project, with a cost of about Rs 200 crore, involves the exploration and development of five lithium brine blocks in the Catamarca province of Argentina.

The blocks, covering an area of approximately 15,703 hectares, include Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132, and Cortadera-VI. KABIL will hold exploration and exclusivity rights, allowing the evaluation, prospecting, and exploration of lithium minerals.

Upon the discovery, exploitation rights for commercial production will be granted.

Argentina, part of the 'lithium triangle' alongside Chile and Bolivia, boasts more than half of the world's total lithium resources.

It holds the distinction of having the second-largest lithium resources, the third-largest reserves, and the fourth-largest production globally.

The PTI report cited India’s Coal and Mines Minister Pralhad Joshi, who highlighted the significance of this agreement, saying, "This is a historic day for both India and Argentina as we are scripting a new chapter in bilateral ties with the Agreement signing between KABIL and CAMYEN."

India's move into lithium exploration aligns with its commitment to a sustainable and diversified supply chain for critical minerals essential to various industries.

The joint venture between NALCO, HCL, and MECL, KABIL, was formed in 2019 to source strategic minerals like lithium and cobalt from overseas locations.

The recent agreement signifies not only a strategic step in securing vital resources for the energy transition but also a strengthening of bilateral ties between India and Argentina.

(With inputs from PTI)<o:p></o:p>

In a move towards securing critical minerals for the energy transition, India is set to invest approximately Rs 200 crore ($24 million) in exploring and developing five lithium mines in Argentina.

In a move towards securing critical minerals for the energy transition, India is set to invest approximately Rs 200 crore ($24 million) in exploring and developing five lithium mines in Argentina. This is based on a report published by the Press Trust of India (PTI). The agreement, signed between Khanij Bidesh India Ltd (KABIL), a state-owned joint venture, and Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), a government-owned mining and energy corporation in Argentina, aims to tap into Argentina's abundant lithium resources. Lithium is a crucial component of lithium-ion batteries that power electric vehicles and battery energy storage systems. The project, with a cost of about Rs 200 crore, involves the exploration and development of five lithium brine blocks in the Catamarca province of Argentina. The blocks, covering an area of approximately 15,703 hectares, include Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132, and Cortadera-VI. KABIL will hold exploration and exclusivity rights, allowing the evaluation, prospecting, and exploration of lithium minerals. Upon the discovery, exploitation rights for commercial production will be granted. Argentina, part of the 'lithium triangle' alongside Chile and Bolivia, boasts more than half of the world's total lithium resources. It holds the distinction of having the second-largest lithium resources, the third-largest reserves, and the fourth-largest production globally. The PTI report cited India’s Coal and Mines Minister Pralhad Joshi, who highlighted the significance of this agreement, saying, "This is a historic day for both India and Argentina as we are scripting a new chapter in bilateral ties with the Agreement signing between KABIL and CAMYEN." India's move into lithium exploration aligns with its commitment to a sustainable and diversified supply chain for critical minerals essential to various industries. The joint venture between NALCO, HCL, and MECL, KABIL, was formed in 2019 to source strategic minerals like lithium and cobalt from overseas locations. The recent agreement signifies not only a strategic step in securing vital resources for the energy transition but also a strengthening of bilateral ties between India and Argentina. (With inputs from PTI)

India invests $24 mn in lithium exploration: Boosting energy transition & bilateral ties with Argentina

India’s homegrown United Payments Interface(UPI) isn’t just simplifying transactions but also fueling a surge in credit spending that contributes to nation’s growing GDP.

How UPI helps the Indian GDP | India’s game-changing digital revolution

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. <o:p></o:p>

However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound.<o:p></o:p>

This is based on a commentary by Clyde Russell published by Reuters.<o:p></o:p>

Crude oil imports, rising by 11 per cent to 11.28 million barrels per day (bpd) in 2023, has set a new record.<o:p></o:p>

Despite the seemingly robust performance, analysts caution against a straightforward interpretation.<o:p></o:p>

Customs data from January 12 shows a volume increase of 1.11 million bpd from 2022, falling short of the International Energy Agency's (IEA) forecast of a 1.8 million bpd rise in China's oil demand.<o:p></o:p>

The article cited Roy Martin, an energy analyst, who said, "While the numbers are impressive, the actual growth in demand seems less spectacular when considering the broader context." <o:p></o:p>

China's domestic oil production saw a modest 1.8 per cent increase in the first 11 months of 2023, contributing to the scepticism surrounding the narrative of surging demand. <o:p></o:p>

Furthermore, the continuous addition of crude to strategic inventories and a substantial boost in refined product exports point to a more intricate picture of China's oil market.<o:p></o:p>

Moving to coal, China witnessed a staggering 61.8 per cent increase in coal imports in 2023, reaching 474.42 million tons. <o:p></o:p>

This surge, while partly influenced by a rise in electricity demand, is more intricately tied to temporary factors. <o:p></o:p>

Hydropower struggles and a sharp retreat in seaborne thermal coal prices made imported coal more competitive against domestic production. <o:p></o:p>

Analysts anticipate a shift in 2024 as hydropower and other renewables gain traction, potentially limiting the demand for thermal coal.<o:p></o:p>

Iron ore, emerged as a star performer in China's commodity imports, rising by 6.6 per cent to an all-time high of 1.18 billion tons in 2023. <o:p></o:p>

Despite challenges in the residential property sector, the steel industry thrived due to robust performances in vehicle manufacturing, infrastructure, and steel product exports. <o:p></o:p>

Forecasts for 2024 indicate continued high steel output, ensuring sustained demand for iron ore imports and another potentially record-breaking year.<o:p></o:p>

Reflecting on the intricate dynamics, Angela Chen, an economist, stated, "China's import records are a reflection of not just economic growth but also highlight the complexities in different sectors. While the current numbers are impressive, the underlying factors suggest a cautious optimism about the sustainability of this trend in the coming year."<o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound.

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound. This is based on a commentary by Clyde Russell published by Reuters. Crude oil imports, rising by 11 per cent to 11.28 million barrels per day (bpd) in 2023, has set a new record. Despite the seemingly robust performance, analysts caution against a straightforward interpretation. Customs data from January 12 shows a volume increase of 1.11 million bpd from 2022, falling short of the International Energy Agency's (IEA) forecast of a 1.8 million bpd rise in China's oil demand. The article cited Roy Martin, an energy analyst, who said, "While the numbers are impressive, the actual growth in demand seems less spectacular when considering the broader context." China's domestic oil production saw a modest 1.8 per cent increase in the first 11 months of 2023, contributing to the scepticism surrounding the narrative of surging demand. Furthermore, the continuous addition of crude to strategic inventories and a substantial boost in refined product exports point to a more intricate picture of China's oil market. Moving to coal, China witnessed a staggering 61.8 per cent increase in coal imports in 2023, reaching 474.42 million tons. This surge, while partly influenced by a rise in electricity demand, is more intricately tied to temporary factors. Hydropower struggles and a sharp retreat in seaborne thermal coal prices made imported coal more competitive against domestic production. Analysts anticipate a shift in 2024 as hydropower and other renewables gain traction, potentially limiting the demand for thermal coal. Iron ore, emerged as a star performer in China's commodity imports, rising by 6.6 per cent to an all-time high of 1.18 billion tons in 2023. Despite challenges in the residential property sector, the steel industry thrived due to robust performances in vehicle manufacturing, infrastructure, and steel product exports. Forecasts for 2024 indicate continued high steel output, ensuring sustained demand for iron ore imports and another potentially record-breaking year. Reflecting on the intricate dynamics, Angela Chen, an economist, stated, "China's import records are a reflection of not just economic growth but also highlight the complexities in different sectors. While the current numbers are impressive, the underlying factors suggest a cautious optimism about the sustainability of this trend in the coming year." (With inputs from Reuters)

China's impressive commodity imports mask deeper complexities

India’s Nifty breached the historic 22,000 points feat. As investors look ahead at the risks & opportunities in 2024, the question is whether the Nifty can surpass 24k in 2024.

India’s Nifty 50 surpasses 22,000; Risks & opportunities in Indian market

India’s Nifty breached the historic 22,000 points feat. As investors look ahead at the risks & opportunities in 2024, the question is whether the nifty can surpass 24k in 2024.

India’s Nifty 50 surpasses 22,000

In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates. <o:p></o:p>

This is based on a report by Reuters.<o:p></o:p>

The central bank revealed that despite rising concerns over wages, firms foresee a relief in inflation over the coming year. <o:p></o:p>

Reuters cited Royce Mendes, Head of Macro Strategy at Desjardins Group, who said, "Overall, businesses and consumers are feeling the pain of higher interest rates and are responding accordingly. Consumers are curtailing spending and businesses, seeing falling sales, are tapping the brakes on hiring."<o:p></o:p>

The survey reported that 38 per cent of businesses anticipate a recession in the next year, reflecting an increase from the previous quarter. <o:p></o:p>

Similarly, 61 per cent of consumers share concerns about an impending recession, a rise from the last survey. <o:p></o:p>

Businesses, compared to a year earlier, experienced a downturn in order books, with more firms expecting wages to rise in the upcoming year. <o:p></o:p>

However, a silver lining appears as many businesses still foresee an increase in sales volumes over the next 12 months.<o:p></o:p>

The business outlook indicator, a measure of economic sentiment, showed a slight improvement in the last quarter of 2023, rising from -3.45 to -3.15. <o:p></o:p>

This shift was attributed to easing expectations for input and output prices.<o:p></o:p>

39 per cent of businesses reported a decline in sales volumes over the past year, attributing it to various factors such as slowing growth, the impact of higher interest rates, and inflation. <o:p></o:p>

The Bank of Canada raised its key policy rate to 5 per cent, a 22-year high, last year, and has maintained it since July. <o:p></o:p>

Despite the current inflation rate of 3.1 per cent, down from the 2022 peak, it has remained above the BoC's 2 per cent target since March 2021.<o:p></o:p>

According to the survey, "Firms' pricing behaviour is slowly returning to normal," indicating a potential stabilisation in the economic landscape. <o:p></o:p>

However, wage growth is expected to be higher than average in the next 12 months, often tied to cost-of-living adjustments.<o:p></o:p>

Looking ahead, 54 per cent of businesses foresee inflation running higher than 3 per cent over the next two years, while 42 per cent expect it to remain below that threshold. <o:p></o:p>

Interestingly, 27 per cent predict it will take longer than four years for inflation to return to the BoC's 2 per cent target. <o:p></o:p>

Governor Tiff Macklem, in his last public appearance of 2023, noted that short-term inflation expectations are gradually trending downward, but the persistence is expected due to wage growth and the prices of commodities, food, and housing.<o:p></o:p>

The Bank of Canada is set to make its next interest rate announcement on January 24, with expectations of maintaining the key policy rate. <o:p></o:p>

Money markets and economists, however, anticipate rate cuts in the first half of 2024. <o:p></o:p>

The dual survey approach by the central bank also revealed that consumers do not anticipate further interest rate increases in the next year.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates.

In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates. This is based on a report by Reuters. The central bank revealed that despite rising concerns over wages, firms foresee a relief in inflation over the coming year. Reuters cited Royce Mendes, Head of Macro Strategy at Desjardins Group, who said, "Overall, businesses and consumers are feeling the pain of higher interest rates and are responding accordingly. Consumers are curtailing spending and businesses, seeing falling sales, are tapping the brakes on hiring." The survey reported that 38 per cent of businesses anticipate a recession in the next year, reflecting an increase from the previous quarter. Similarly, 61 per cent of consumers share concerns about an impending recession, a rise from the last survey. Businesses, compared to a year earlier, experienced a downturn in order books, with more firms expecting wages to rise in the upcoming year. However, a silver lining appears as many businesses still foresee an increase in sales volumes over the next 12 months. The business outlook indicator, a measure of economic sentiment, showed a slight improvement in the last quarter of 2023, rising from -3.45 to -3.15. This shift was attributed to easing expectations for input and output prices. 39 per cent of businesses reported a decline in sales volumes over the past year, attributing it to various factors such as slowing growth, the impact of higher interest rates, and inflation. The Bank of Canada raised its key policy rate to 5 per cent, a 22-year high, last year, and has maintained it since July. Despite the current inflation rate of 3.1 per cent, down from the 2022 peak, it has remained above the BoC's 2 per cent target since March 2021. According to the survey, "Firms' pricing behaviour is slowly returning to normal," indicating a potential stabilisation in the economic landscape. However, wage growth is expected to be higher than average in the next 12 months, often tied to cost-of-living adjustments. Looking ahead, 54 per cent of businesses foresee inflation running higher than 3 per cent over the next two years, while 42 per cent expect it to remain below that threshold. Interestingly, 27 per cent predict it will take longer than four years for inflation to return to the BoC's 2 per cent target. Governor Tiff Macklem, in his last public appearance of 2023, noted that short-term inflation expectations are gradually trending downward, but the persistence is expected due to wage growth and the prices of commodities, food, and housing. The Bank of Canada is set to make its next interest rate announcement on January 24, with expectations of maintaining the key policy rate. Money markets and economists, however, anticipate rate cuts in the first half of 2024. The dual survey approach by the central bank also revealed that consumers do not anticipate further interest rate increases in the next year. (With inputs from Reuters)

Canadian firms face decline in orders, inflation easing despite concerns: Central bank survey

In the early trade today, Nifty 50 surged to a fresh peak of 22,081 points, surpassing the 22,000 mark for the first time. The upswing witnessed today marks the fifth consecutive gain for both Nifty 50 and Sensex.

India's Nifty 50 surpasses 22,000

Indian technology behemoths are off to a stellar start in the new year, with key players, including Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, collectively witnessing a surge of $22 billion in market value over the last two trading sessions. <o:p></o:p>

The sector's robust performance in the latest quarter, outperforming sales expectations, has spurred investor enthusiasm and brightened the sector's outlook. <o:p></o:p>

Notably, Tata Consultancy Services Ltd. and Infosys Ltd. led the charge, capitalising on stronger-than-anticipated results.<o:p></o:p>

The buoyancy in India's software giants is underpinned by an unexpected surge in sales during the last quarter, defying market expectations. Wipro Ltd., in particular, experienced a notable intraday rally of up to 14 per cent, marking its most significant surge since July 2020. <o:p></o:p>

Analysts attribute this boost to the company's surprise revenue beat, prompting rating upgrades from several brokerages. <o:p></o:p>

HCL Technologies Ltd. achieved a record high, driven by its optimistic revenue growth forecast. <o:p></o:p>

Bloomberg cited analyst Siddarth Bhamre of Religare Broking Ltd., who noted that the positive shift in sentiment is evident in the management commentary, with companies like Infosys expressing newfound optimism.<o:p></o:p>

As the earnings season unfolds, the landscape for global firms' discretionary spending on technology projects remains uncertain. <o:p></o:p>

However, Indian tech giants continue to forge ahead with strategic initiatives aimed at cost reduction and operational efficiency. <o:p></o:p>

Emphasising their commitment to innovation, these companies are also leveraging their expertise in artificial intelligence (AI). <o:p></o:p>

According to Bloomberg, Infosys CEO Salil Parekh highlighted the growing significance of generative AI in client discussions during an earnings call last week.<o:p></o:p>

Analysts and brokerages have responded to the sector's robust performance by upgrading ratings and revising earnings estimates.<o:p></o:p>

&nbsp;At least six brokerages raised their ratings on Infosys post-earnings. <o:p></o:p>

Meanwhile, JPMorgan Chase &amp; Co. analysts upgraded ratings on both Wipro's US and India-listed shares.<o:p></o:p>

Phillipcapital analyst Karan Uppal expressed confidence that further downgrades in earnings estimates are unlikely, anticipating a rebound and growth in earnings for these companies in the next fiscal year, starting April.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Indian technology behemoths are off to a stellar start in the new year, with key players, including Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, collectively witnessing a surge of $22 billion in market value over the last two trading sessions.

Indian technology behemoths are off to a stellar start in the new year, with key players, including Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, collectively witnessing a surge of $22 billion in market value over the last two trading sessions. The sector's robust performance in the latest quarter, outperforming sales expectations, has spurred investor enthusiasm and brightened the sector's outlook. Notably, Tata Consultancy Services Ltd. and Infosys Ltd. led the charge, capitalising on stronger-than-anticipated results. The buoyancy in India's software giants is underpinned by an unexpected surge in sales during the last quarter, defying market expectations. Wipro Ltd., in particular, experienced a notable intraday rally of up to 14 per cent, marking its most significant surge since July 2020. Analysts attribute this boost to the company's surprise revenue beat, prompting rating upgrades from several brokerages. HCL Technologies Ltd. achieved a record high, driven by its optimistic revenue growth forecast. Bloomberg cited analyst Siddarth Bhamre of Religare Broking Ltd., who noted that the positive shift in sentiment is evident in the management commentary, with companies like Infosys expressing newfound optimism. As the earnings season unfolds, the landscape for global firms' discretionary spending on technology projects remains uncertain. However, Indian tech giants continue to forge ahead with strategic initiatives aimed at cost reduction and operational efficiency. Emphasising their commitment to innovation, these companies are also leveraging their expertise in artificial intelligence (AI). According to Bloomberg, Infosys CEO Salil Parekh highlighted the growing significance of generative AI in client discussions during an earnings call last week. Analysts and brokerages have responded to the sector's robust performance by upgrading ratings and revising earnings estimates. At least six brokerages raised their ratings on Infosys post-earnings. Meanwhile, JPMorgan Chase & Co. analysts upgraded ratings on both Wipro's US and India-listed shares. Phillipcapital analyst Karan Uppal expressed confidence that further downgrades in earnings estimates are unlikely, anticipating a rebound and growth in earnings for these companies in the next fiscal year, starting April. (With inputs from Bloomberg)

Indian tech giants surge, adding $22 billion to market cap in two-day rally: Report

In a recent report, the Boston Consulting Group (BCG) has outlined a potential $7 trillion surge in the combined valuations of global banks over the next five years.

This is based on a Reuters report.

This forecast is contingent on significant measures taken by banks to stimulate growth and enhance productivity.

&nbsp;BCG suggests that banks could effectively double their current valuations by focusing on expansion and refining their price-to-book ratios, even in the face of existing challenges.

The study from BCG addresses a prevalent concern within the banking sector — a substantial decline in profitability.

The report notes that around 75 per cent of bank stocks exhibited price-to-book ratios below 1 in 2022.

Furthermore, price-to-earnings multiples were nearly half of the levels seen in 2008.

Shareholder returns on bank stocks have consistently fallen behind those of major market indexes since the financial crisis.

Despite the optimistic outlook presented by BCG, challenges loom for the banking industry.

The study acknowledges that even with investments in productivity and streamlined business operations, banks will face ongoing pressure due to higher capital requirements and intensified competition from emerging players like fintech companies.

BCG emphasises that returning to pre-financial crisis levels of profitability and valuations is an unlikely scenario for banks.

(With inputs from Reuters)<o:p></o:p>

In a recent report, the Boston Consulting Group (BCG) has outlined a potential $7 trillion surge in the combined valuations of global banks over the next five years.

In a recent report, the Boston Consulting Group (BCG) has outlined a potential $7 trillion surge in the combined valuations of global banks over the next five years. This is based on a Reuters report. This forecast is contingent on significant measures taken by banks to stimulate growth and enhance productivity. BCG suggests that banks could effectively double their current valuations by focusing on expansion and refining their price-to-book ratios, even in the face of existing challenges. The study from BCG addresses a prevalent concern within the banking sector — a substantial decline in profitability. The report notes that around 75 per cent of bank stocks exhibited price-to-book ratios below 1 in 2022. Furthermore, price-to-earnings multiples were nearly half of the levels seen in 2008. Shareholder returns on bank stocks have consistently fallen behind those of major market indexes since the financial crisis. Despite the optimistic outlook presented by BCG, challenges loom for the banking industry. The study acknowledges that even with investments in productivity and streamlined business operations, banks will face ongoing pressure due to higher capital requirements and intensified competition from emerging players like fintech companies. BCG emphasises that returning to pre-financial crisis levels of profitability and valuations is an unlikely scenario for banks. (With inputs from Reuters)

Global banks poised for a $7 trillion valuation surge in 5 years: BCG Study

Apple takes a surprising turn in the highly competitive Chinese smartphone market. The US tech giant is slashing prices on some of its iPhones by as much as 5%, a move aimed at countering the increasing pressure from local rivals such as Huawei and Xiaomi. This limited-time lunar new year promotion, scheduled from January 18 to 21, comes amid a challenging landscape for Apple.

Apple drops iPhone prices in China amid fierce competition

A recent NITI Aayog report has unveiled a positive trend in India's fight against multidimensional poverty. <o:p></o:p>

Over 24.8 crore people have moved out of multidimensional poverty in the span of nine years, from 2013-14 to 2022-23. <o:p></o:p>

This reduction, representing a decline from 29.17 per cent to 11.28 per cent, underscores the successful efforts in addressing deprivations across health, education, and standard of living. <o:p></o:p>

Prime Minister Narendra Modi, in response to the report, expressed optimism, stating, "Very encouraging, reflecting our commitment towards furthering inclusive growth and focusing on transformative changes to our economy."<o:p></o:p>

The NITI discussion paper outlines that the national multidimensional poverty index (MPI) measures simultaneous deprivations across 12 indicators aligned with sustainable development goals. <o:p></o:p>

These indicators include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts. <o:p></o:p>

Uttar Pradesh leads the states, with 5.94 crore people escaping poverty, followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore. <o:p></o:p>

The report indicates an annual escape rate of 2.75 crore people from multidimensional poverty, demonstrating a consistent positive trend.<o:p></o:p>

NITI Aayog CEO BVR Subrahmanyam emphasised the government's goal to bring multidimensional poverty below 1 per cent, highlighting ongoing efforts in that direction. <o:p></o:p>

The report suggests that India is on track to reach single-digit poverty levels in 2024. <o:p></o:p>

The pace of decline in the poverty headcount ratio has notably increased between 2015-16 to 2019-21, demonstrating a 10.66 per cent annual rate of decline compared to 7.69 per cent in the preceding period. <o:p></o:p>

Poorer states are experiencing a faster decline in poverty, indicating a reduction in disparities. Additionally, the report anticipates India achieving Sustainable Development Goals (SDGs) 1.2, aiming to reduce multidimensional poverty by at least half, ahead of the 2030 target.<o:p></o:p>

Despite these positive trends, the report identifies areas of continued deprivation. <o:p></o:p>

Cooking fuel and housing remain the highest contributors to deprivation, while child and adolescent mortality, electricity, and bank account indicators maintain the lowest deprivation levels. <o:p></o:p>

The report credits government initiatives like Poshan Abhiyan and Anemia Mukt Bharat for significantly improving healthcare access, contributing to the decrease in deprivation. <o:p></o:p>

The targeted public distribution system, covering 81.35 crore beneficiaries, has also played a crucial role in reducing poverty.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

A recent NITI Aayog report has unveiled a positive trend in India's fight against multidimensional poverty. Over 24.8 crore people have moved out of multidimensional poverty in the span of nine years, from 2013-14 to 2022-23.

A recent NITI Aayog report has unveiled a positive trend in India's fight against multidimensional poverty. Over 24.8 crore people have moved out of multidimensional poverty in the span of nine years, from 2013-14 to 2022-23. This reduction, representing a decline from 29.17 per cent to 11.28 per cent, underscores the successful efforts in addressing deprivations across health, education, and standard of living. Prime Minister Narendra Modi, in response to the report, expressed optimism, stating, "Very encouraging, reflecting our commitment towards furthering inclusive growth and focusing on transformative changes to our economy." The NITI discussion paper outlines that the national multidimensional poverty index (MPI) measures simultaneous deprivations across 12 indicators aligned with sustainable development goals. These indicators include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts. Uttar Pradesh leads the states, with 5.94 crore people escaping poverty, followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore. The report indicates an annual escape rate of 2.75 crore people from multidimensional poverty, demonstrating a consistent positive trend. NITI Aayog CEO BVR Subrahmanyam emphasised the government's goal to bring multidimensional poverty below 1 per cent, highlighting ongoing efforts in that direction. The report suggests that India is on track to reach single-digit poverty levels in 2024. The pace of decline in the poverty headcount ratio has notably increased between 2015-16 to 2019-21, demonstrating a 10.66 per cent annual rate of decline compared to 7.69 per cent in the preceding period. Poorer states are experiencing a faster decline in poverty, indicating a reduction in disparities. Additionally, the report anticipates India achieving Sustainable Development Goals (SDGs) 1.2, aiming to reduce multidimensional poverty by at least half, ahead of the 2030 target. Despite these positive trends, the report identifies areas of continued deprivation. Cooking fuel and housing remain the highest contributors to deprivation, while child and adolescent mortality, electricity, and bank account indicators maintain the lowest deprivation levels. The report credits government initiatives like Poshan Abhiyan and Anemia Mukt Bharat for significantly improving healthcare access, contributing to the decrease in deprivation. The targeted public distribution system, covering 81.35 crore beneficiaries, has also played a crucial role in reducing poverty. (With inputs from PTI)

Over 24.8 crore people escaped multidimensional poverty in India in 9 years: NITI Aayog Report

The Boston consulting group anticipates a surge in the valuation of global banks. The report suggests a potential $7 trillion increase in combined valuations for global banks within the next five years. This projection comes against a backdrop of widespread pessimism fueled by a significant drop in profitability within the banking sector.

Global banks eye $7 trillion upswing; Bank valuations to soar despite hurdles

Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device. <o:p></o:p>

According to a Bloomberg report, the discounts, introduced on Apple's official website in China, are valid from January 18 to January 21, strategically timed ahead of the Lunar New Year shopping season. <o:p></o:p>

This price reduction, equivalent to approximately 5 per cent off its top-tier iPhone models, signals a departure from Apple's traditional pricing strategy in the region.<o:p></o:p>

The decision to slash iPhone prices comes in the midst of changing consumer preferences in China, where local brands like Huawei Technologies Co. are gaining popularity. <o:p></o:p>

Apple's latest iPhone 15 faced disappointing sales compared to its predecessor after its debut in China last year, a trend attributed to a growing affinity for homegrown brands and the imposition of restrictions on the use of foreign devices in state-backed agencies and companies. <o:p></o:p>

Jefferies' warning about a potential 30 per cent drop in 2023 iPhone sales in China adds to the apprehensions surrounding Apple's market position.<o:p></o:p>

Analysts suggest that the introduction of Huawei's Mate 60 series with a 7-nanometer made-in-China processor, seen as a national breakthrough despite US sanctions, contributed to the decline in iPhone sales in the region. <o:p></o:p>

Apple's move to discount its latest iPhones in China is a notable shift, considering its longstanding practice of refraining from price cuts on its newest devices. <o:p></o:p>

The Lunar New Year discounts, a customary practice for Apple, have typically excluded the latest iPhone models. However, this year's offerings encompass discounts on the iPhone 13 to the iPhone 15 Pro Max, reflecting the company's acknowledgment of market dynamics and the need to bolster demand.<o:p></o:p>

Apple's Chinese retail partners have previously offered more substantial discounts on the latest iPhones, but the Cupertino-based tech giant has now directly embraced the practice. <o:p></o:p>

The discount initiative extends beyond iPhones, including the MacBook Air, various iPad models, select AirPods, and the Apple Watch SE. The MacBook Air, in particular, is witnessing a significant markdown, with Apple reducing its price by up to 800 yuan. <o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device.

Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device. According to a Bloomberg report, the discounts, introduced on Apple's official website in China, are valid from January 18 to January 21, strategically timed ahead of the Lunar New Year shopping season. This price reduction, equivalent to approximately 5 per cent off its top-tier iPhone models, signals a departure from Apple's traditional pricing strategy in the region. The decision to slash iPhone prices comes in the midst of changing consumer preferences in China, where local brands like Huawei Technologies Co. are gaining popularity. Apple's latest iPhone 15 faced disappointing sales compared to its predecessor after its debut in China last year, a trend attributed to a growing affinity for homegrown brands and the imposition of restrictions on the use of foreign devices in state-backed agencies and companies. Jefferies' warning about a potential 30 per cent drop in 2023 iPhone sales in China adds to the apprehensions surrounding Apple's market position. Analysts suggest that the introduction of Huawei's Mate 60 series with a 7-nanometer made-in-China processor, seen as a national breakthrough despite US sanctions, contributed to the decline in iPhone sales in the region. Apple's move to discount its latest iPhones in China is a notable shift, considering its longstanding practice of refraining from price cuts on its newest devices. The Lunar New Year discounts, a customary practice for Apple, have typically excluded the latest iPhone models. However, this year's offerings encompass discounts on the iPhone 13 to the iPhone 15 Pro Max, reflecting the company's acknowledgment of market dynamics and the need to bolster demand. Apple's Chinese retail partners have previously offered more substantial discounts on the latest iPhones, but the Cupertino-based tech giant has now directly embraced the practice. The discount initiative extends beyond iPhones, including the MacBook Air, various iPad models, select AirPods, and the Apple Watch SE. The MacBook Air, in particular, is witnessing a significant markdown, with Apple reducing its price by up to 800 yuan. (With inputs from Bloomberg)

Apple implements rare iPhone 15 discounts in China amid demand uncertainty

Inflation and a cost of living crisis have grabbed the attention of economists and policy makers since the pandemic. But 2024 seems to have brought some good news for consumers and central bankers. That's because inflation concerns seem to be easing in the u.s., uk, and eurozone.

Inflation eases globally, under central banks' targets

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments. <o:p></o:p>

Released under the theme "Rebuilding Trust," the survey reveals that 39 per cent of respondents lack confidence in how innovations are introduced and regulated, with only 22 per cent expressing satisfaction. <o:p></o:p>

Notably, the United States emerges as a hotspot of scepticism, with 56 per cent of respondents believing that innovation is poorly managed, reflecting a notable divide.<o:p></o:p>

Despite the pervasive mistrust, the survey points to a paradox where businesses are regarded as the most trusted entities to integrate innovation into society, surpassing non-governmental organisations, government bodies, and the media. <o:p></o:p>

The survey, conducted in 28 countries with 32,000 participants, suggests that while the public is wary of how innovations are managed, there remains a level of trust in businesses to responsibly incorporate technological advancements.<o:p></o:p>

The report highlights instances of pushback against technology, citing Beijing's reversal of COVID vaccine mandates in response to online resistance, US Republican opposition to electric vehicles, and Hollywood writers' resistance to the use of artificial intelligence in scriptwriting. <o:p></o:p>

It suggests that resistance to innovation is often politically charged, with higher levels of opposition observed among right-leaning individuals, particularly in the United States, Australia, Germany, and Canada. <o:p></o:p>

Edelman's CEO, Richard Edelman, emphasises the need for businesses to pay attention to public acceptance as much as research and development. <o:p></o:p>

Acknowledging that innovation should be a growth enabler, he underscores that its potential might be hindered if businesses neglect the importance of gaining public trust. <o:p></o:p>

The findings serve as a call for a more holistic approach, emphasising not only technological advancements but also the communication and societal integration of these innovations. <o:p></o:p>

In addition to the global perspective, the Trust Barometer in the survey points out that Britain finds itself at the bottom of the trust scale, scoring 39 per cent. <o:p></o:p>

This metric, which provides an average percent trust in NGOs, business, government, and media, indicates a notable lack of trust in various institutions in the United Kingdom.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments.

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments. Released under the theme "Rebuilding Trust," the survey reveals that 39 per cent of respondents lack confidence in how innovations are introduced and regulated, with only 22 per cent expressing satisfaction. Notably, the United States emerges as a hotspot of scepticism, with 56 per cent of respondents believing that innovation is poorly managed, reflecting a notable divide. Despite the pervasive mistrust, the survey points to a paradox where businesses are regarded as the most trusted entities to integrate innovation into society, surpassing non-governmental organisations, government bodies, and the media. The survey, conducted in 28 countries with 32,000 participants, suggests that while the public is wary of how innovations are managed, there remains a level of trust in businesses to responsibly incorporate technological advancements. The report highlights instances of pushback against technology, citing Beijing's reversal of COVID vaccine mandates in response to online resistance, US Republican opposition to electric vehicles, and Hollywood writers' resistance to the use of artificial intelligence in scriptwriting. It suggests that resistance to innovation is often politically charged, with higher levels of opposition observed among right-leaning individuals, particularly in the United States, Australia, Germany, and Canada. Edelman's CEO, Richard Edelman, emphasises the need for businesses to pay attention to public acceptance as much as research and development. Acknowledging that innovation should be a growth enabler, he underscores that its potential might be hindered if businesses neglect the importance of gaining public trust. The findings serve as a call for a more holistic approach, emphasising not only technological advancements but also the communication and societal integration of these innovations. In addition to the global perspective, the Trust Barometer in the survey points out that Britain finds itself at the bottom of the trust scale, scoring 39 per cent. This metric, which provides an average percent trust in NGOs, business, government, and media, indicates a notable lack of trust in various institutions in the United Kingdom. (With inputs from Reuters)

US leads global public distrust in innovation, survey unveils concerns ahead of Davos Summit

The German economy shrank slightly in 2023, official data showed Monday, as costly energy, high interest rates and cooling foreign demand took their toll on Europe's export giant.

Output contracted by 0.3 per cent year-on-year, federal statistics agency Destatis said in preliminary figures.&nbsp;

"Overall economic development faltered in&nbsp;Germany&nbsp;in 2023 in an environment that continues to be marked by multiple crises,"&nbsp;the agency's Ruth Brand told a Berlin press conference.&nbsp;

Europe's largest economy likely saw a 0.3-per cent drop in gross domestic output in the final quarter of the year, the agency calculated, again in preliminary figures.&nbsp;

It also revised the data for the third quarter from a 0.1-per cent contraction to a stagnation, meaning&nbsp;Germany&nbsp;avoided a year-end technical recession of two successive quarters of negative growth.&nbsp;

The German economy has faced severe headwinds since Russia's war in Ukraine sent inflation, particularly the cost of energy&nbsp;soaring.&nbsp;

The price spikes contributed to a steep downturn in&nbsp;Germany's energy-hungry manufacturing sector, while the construction sector also took a hit.

Increasing competition from China, once a reliable destination for "made in&nbsp;Germany" goods, as well as aggressive eurozone rate hikes to tame inflation further added to&nbsp;Germany's woes.&nbsp;

The limp economic performance was widely expected, with the International Monetary Fund predicting that&nbsp;Germany&nbsp;would be the only major advanced economy not to grow in 2023.&nbsp;

If confirmed in the final figures, the 2023 contraction makes it&nbsp;Germany's weakest year since the coronavirus pandemic battered the economy in 2020.

"Despite recent price declines, prices remained high at all stages in the economic process and put a damper on economic growth" in 2023, said Brand.&nbsp;

"Unfavourable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll."

Uncertain outlook&nbsp;

A modest recovery is expected to get under way in 2024, with&nbsp;Germany's Bundesbank central bank recently forecasting growth of 0.4 per cent.

"We see a silver lining for the economy in 2024," said KfW chief economist Fritzi Koehler-Geib.

"Thanks to strong real wage growth, private consumption in particular is likely to pick up again. Together with an expected recovery in export demand, gross domestic product is likely to grow," she added.

But ING bank economist Carsten Brzeski was less optimistic, pointing to fresh uncertainty stemming from the German government's recent budget upset and shipping delays in the Suez Canal as a result of conflict in the Middle East.&nbsp;

"Looking ahead, at least in the first months of 2024, many of the recent drags on growth will still be around and will, in some cases, have an even stronger impact than in 2023," Brzeski said.

He predicted that gross domestic product would shrink again this year, in what would "be the first time since the early 2000s that&nbsp;Germany&nbsp;has gone through a two-year recession, even though it could prove to be a shallow one".

Concerns about slowing exports and the slump in the crucial manufacturing sector, coupled with a chronic shortage of skilled labourers, have begun to raise fears of a "deindustrialisation" in&nbsp;Germany.

Chancellor Olaf Scholz's government, whose popularity has been sliding in the polls, has sought to counter those concerns with pledges to invest heavily in the transition to green energy and in modernising infrastructure.

But a shock court ruling at the end of last year blew a multi-billion-euro hole in the government's budget, upending its spending plans and leaving Scholz and his coalition partners scrambling to find savings.

Anger over Berlin's proposal to cut some subsidies for agriculture prompted farmers to stage tractor blockades across the country last week, culminating in a major demonstration in Berlin on Monday.

The German economy shrank slightly in 2023, official data showed Monday, as costly energy, high interest rates and cooling foreign demand took their toll on Europe's export giant.

The German economy shrank slightly in 2023, official data showed Monday, as costly energy, high interest rates and cooling foreign demand took their toll on Europe's export giant. Output contracted by 0.3 per cent year-on-year, federal statistics agency Destatis said in preliminary figures. "Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises," the agency's Ruth Brand told a Berlin press conference. Europe's largest economy likely saw a 0.3-per cent drop in gross domestic output in the final quarter of the year, the agency calculated, again in preliminary figures. It also revised the data for the third quarter from a 0.1-per cent contraction to a stagnation, meaning Germany avoided a year-end technical recession of two successive quarters of negative growth. The German economy has faced severe headwinds since Russia's war in Ukraine sent inflation, particularly the cost of energy soaring. The price spikes contributed to a steep downturn in Germany's energy-hungry manufacturing sector, while the construction sector also took a hit. Increasing competition from China, once a reliable destination for "made in Germany" goods, as well as aggressive eurozone rate hikes to tame inflation further added to Germany's woes. The limp economic performance was widely expected, with the International Monetary Fund predicting that Germany would be the only major advanced economy not to grow in 2023. If confirmed in the final figures, the 2023 contraction makes it Germany's weakest year since the coronavirus pandemic battered the economy in 2020. "Despite recent price declines, prices remained high at all stages in the economic process and put a damper on economic growth" in 2023, said Brand. "Unfavourable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll." Uncertain outlook A modest recovery is expected to get under way in 2024, with Germany's Bundesbank central bank recently forecasting growth of 0.4 per cent. "We see a silver lining for the economy in 2024," said KfW chief economist Fritzi Koehler-Geib. "Thanks to strong real wage growth, private consumption in particular is likely to pick up again. Together with an expected recovery in export demand, gross domestic product is likely to grow," she added. But ING bank economist Carsten Brzeski was less optimistic, pointing to fresh uncertainty stemming from the German government's recent budget upset and shipping delays in the Suez Canal as a result of conflict in the Middle East. "Looking ahead, at least in the first months of 2024, many of the recent drags on growth will still be around and will, in some cases, have an even stronger impact than in 2023," Brzeski said. He predicted that gross domestic product would shrink again this year, in what would "be the first time since the early 2000s that Germany has gone through a two-year recession, even though it could prove to be a shallow one". Concerns about slowing exports and the slump in the crucial manufacturing sector, coupled with a chronic shortage of skilled labourers, have begun to raise fears of a "deindustrialisation" in Germany. Chancellor Olaf Scholz's government, whose popularity has been sliding in the polls, has sought to counter those concerns with pledges to invest heavily in the transition to green energy and in modernising infrastructure. But a shock court ruling at the end of last year blew a multi-billion-euro hole in the government's budget, upending its spending plans and leaving Scholz and his coalition partners scrambling to find savings. Anger over Berlin's proposal to cut some subsidies for agriculture prompted farmers to stage tractor blockades across the country last week, culminating in a major demonstration in Berlin on Monday.

German economy shrank in 2023 amid high energy costs, export woes

A recent report by Oxfam shows the growing income inequality in the world. While the wealth of five richest men doubled since 2020, five billion people around world fell below the poverty line.

Oxfam report on inequality

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported.<o:p></o:p>

With China set to report fourth-quarter economic growth figures and monthly data this week, apprehension looms over the fragile state of its economic recovery. <o:p></o:p>

Chinese blue chips dipped 0.5 per cent, hitting their lowest since early 2019. <o:p></o:p>

"For now, we think China is still focused on engineering economic stability," Reuters quoted Damien Boey, Chief Macro Strategist at Barrenjoey in Sydney as saying.<o:p></o:p>

While Asian shares faced headwinds, Japan's Nikkei bucked the trend, rising 0.6 per cent to a fresh 34-year peak after stellar gains last week. <o:p></o:p>

However, MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, following a 0.8 per cent loss the previous week. <o:p></o:p>

Geopolitical tensions, highlighted by the victory of Taiwan's ruling Democratic Progressive Party, served as a reminder that global elections and Middle East conflicts could impact markets throughout the year.<o:p></o:p>

The thin trading due to a US holiday added to the cautious mood, with progress on a stopgap spending bill providing a glimmer of stability.<o:p></o:p>

Amid global uncertainties, the focus shifted to central bank actions. Futures pointed to a 75 per cent chance that the US Federal Reserve would lower interest rates as early as March, with weak producer price data countering a disappointing consumer price report.<o:p></o:p>

Barclays analysts adjusted their expectations for the first Fed cut from June to March, citing core personal consumption price index data running at or below 0.2 per cent m/m. <o:p></o:p>

The dovish outlook prompted speculation that Fed Governor Christopher Waller could pave the way for easing in a speech on Tuesday.<o:p></o:p>

As the World Economic Forum unfolded in Davos, European Central Bank speakers, including President Christine Lagarde, took centre stage. <o:p></o:p>

ECB Chief Economist Philip Lane suggested there would be enough data by June to decide on the first of a potential series of interest rate cuts. <o:p></o:p>

Markets, fully priced for an easing in April, implied a substantial 154 basis points of cuts over 2024. <o:p></o:p>

This dovish sentiment, coupled with global economic concerns, has limited the euro's gains against the dollar, which idled at $1.0950 on Monday.<o:p></o:p>

In the currency markets, the dollar held its ground against the yen, supported by subdued Japanese data keeping the Bank of Japan committed to its accommodative policies. <o:p></o:p>

The dollar edged up to 145.08 yen, moving closer to last week's peak of 146.41. <o:p></o:p>

Meanwhile, non-yielding gold stood firm at $2,050 an ounce, backed by the prospect of lower global interest rates. <o:p></o:p>

Oil prices experienced some volatility due to disruptions in the Red Sea but faced pressure from demand concerns.<o:p></o:p>

Brent eased to $78.10 a barrel, while US crude fell to $72.45 per barrel.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported.

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported. With China set to report fourth-quarter economic growth figures and monthly data this week, apprehension looms over the fragile state of its economic recovery. Chinese blue chips dipped 0.5 per cent, hitting their lowest since early 2019. "For now, we think China is still focused on engineering economic stability," Reuters quoted Damien Boey, Chief Macro Strategist at Barrenjoey in Sydney as saying. While Asian shares faced headwinds, Japan's Nikkei bucked the trend, rising 0.6 per cent to a fresh 34-year peak after stellar gains last week. However, MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, following a 0.8 per cent loss the previous week. Geopolitical tensions, highlighted by the victory of Taiwan's ruling Democratic Progressive Party, served as a reminder that global elections and Middle East conflicts could impact markets throughout the year. The thin trading due to a US holiday added to the cautious mood, with progress on a stopgap spending bill providing a glimmer of stability. Amid global uncertainties, the focus shifted to central bank actions. Futures pointed to a 75 per cent chance that the US Federal Reserve would lower interest rates as early as March, with weak producer price data countering a disappointing consumer price report. Barclays analysts adjusted their expectations for the first Fed cut from June to March, citing core personal consumption price index data running at or below 0.2 per cent m/m. The dovish outlook prompted speculation that Fed Governor Christopher Waller could pave the way for easing in a speech on Tuesday. As the World Economic Forum unfolded in Davos, European Central Bank speakers, including President Christine Lagarde, took centre stage. ECB Chief Economist Philip Lane suggested there would be enough data by June to decide on the first of a potential series of interest rate cuts. Markets, fully priced for an easing in April, implied a substantial 154 basis points of cuts over 2024. This dovish sentiment, coupled with global economic concerns, has limited the euro's gains against the dollar, which idled at $1.0950 on Monday. In the currency markets, the dollar held its ground against the yen, supported by subdued Japanese data keeping the Bank of Japan committed to its accommodative policies. The dollar edged up to 145.08 yen, moving closer to last week's peak of 146.41. Meanwhile, non-yielding gold stood firm at $2,050 an ounce, backed by the prospect of lower global interest rates. Oil prices experienced some volatility due to disruptions in the Red Sea but faced pressure from demand concerns. Brent eased to $78.10 a barrel, while US crude fell to $72.45 per barrel. (With inputs from Reuters)

Asia stocks waver as China opts against rate cut: Report

Foreign portfolio investors navigate a cautious start in 2024, injecting over $458 million into indian equities amid rising global tensions. Additionally, india’s debt market sees a significant surge, credited to jpmorgan's influence.

Foreign inflows defy global concerns in India