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‘Bitcoin is similar to gold’: WION’s exclusive with Henri Arslanian

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption.
However, the sources said the discussions are ongoing and no concrete decisions have been taken yet.
The announcement will come in the budget on February 1.
Even if the government does decide to go ahead with tax cuts, it would be under the new regime introduced in 2020.
According to the discussions, individuals with earnings up to ₹1.5 million will not pay any tax.
Currently, for income between ₹300,000 and ₹1.5 million the tax rate is 5 to 20 &nbsp;per cent, while higher income is taxed at 30 &nbsp;per cent.
Under the new regime, though, there are no exemptions allowed, compared to the older regime, which allows exemptions on housing rentals, home loan interest and principal repayment, and insurance.
However, filing tax returns under the 2020 regime is less complicated.
<h2>Default and options</h2>
The new regime was the default tax structure, with Indians given a choice to opt for the old regime.
While some murmurs are floating the government will mandate the new regime, reports suggest India will continue with both regime options similar to the current fiscal year's choices.
Individuals have the option of choosing the old regime, although, they cannot alter their choice once the new regime is opted for.
<h2>New vs old regime</h2>
Individuals need to look at the tax burden based on both regime's based on their investment choices for the year and make choice.
Take a look at the tax rates under both regimes for comparison and making the choice.
<figure class="image"><img alt="Taxation regimes" src="https://img-cdn.thepublive.com/fit-in/1920x1080/filters:format(webp)/wion/media/media_files/2024/12/27/TTGSHhgt4mDpmcgUHpJ8.jpg" style="width: 1920px;">
<figcaption>Taxation regimes Photograph: (WION)</figcaption>
</figure>
<h2>Government's plan to stimulate growth</h2>
Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country&rsquo;s slowing economy.
The tax cuts would primarily impact city dwellers, who are facing high living costs, and could encourage more taxpaye₹to opt for the newer 2020 tax system.
The potential tax reductions could make the simplified 2020 system more attractive to taxpayers, as it removes many exemptions but offe₹lower rates.
India&rsquo;s central government sources quoted by Reute₹indicate that such tax reforms could encourage wider adoption of this system,
Especially in the face of rising food inflation and weaker consumer demand.
The government has not yet specified the exact revenue loss from any cuts, but the goal is to stimulate economic activity amid sluggish growth.
India&rsquo;s economy has faced a significant slowdown, with growth dropping to its slowest pace in seven quarters between July and September unexpectedly.
Despite this, the government is optimistic that rural demand will continue to show resilience, and urban demand is expected to pick up.
The country&rsquo;s growth forecast for the fiscal year 2024/25 stands at 6.5 percent, at the lower end of its projected range.
With challenges such as high inflation and global uncertainties, including a stronger US dollar, India&rsquo;s tax reforms could play a critical role in boosting domestic consumption and supporting the middle class, which remains politically vocal about high tax burdens.
<h2>Changes to tax structure this year</h2>
Modifications to the income tax system occurred midway through the year 2024.
The reason behind this is that the government announced the Union Budget 2024 in July, following the general elections that took place between April and June of that year.
The income tax law amendments that were revealed in July 2024 may have slipped the minds of many taxpayers due to the budget's mid-year presentation.
Beginning with the fiscal year 2024&ndash;25, the majority of the income tax adjustments that were announced in July 2024 go into effect.
When you file your income tax return (ITR) in July 2025, you'll be able to claim different tax deductions and exemptions because of these changes.
The government adjusted the income tax brackets under the new tax system.
<a href="https://www.wionews.com/india-news/major-relief-for-indian-middle-class-govt-considering-tax-cut-amid-rising-economic-challenges-reports-8569145">Major relief for Indian middle class? Govt mulls tax cuts amid economic challenges: Reports</a>
For the current fiscal year 2024&ndash;25, taxpayers will benefit from increased savings due to the reduced income tax brackets of the new tax system.
The government raised the standard deduction limit and modified the income tax brackets under the new tax system.
<h2>Standard deduction changes</h2>
The standard deduction for people filing under the new tax regime for FY 2024-25 is ₹75,000, an increase from ₹50,000 in the prior regime.
The revised tax structure raises the standard deduction for family pensioners from ₹15,000 to ₹25,000.
For the fiscal year 2024&ndash;25 (modified for 2025&ndash;26), the standard deduction limit stays constant for individuals opting to utilise the prior tax framework.
<a href="https://www.wionews.com/videos/india-considers-income-tax-cuts-to-boost-consumption">India considers income tax cuts to boost consumption</a>
The old tax system provided a standard deduction of ₹50,000 for salaried and pensioner individuals, and ₹15,000 for family pensioners.
Salary earners and retirees can reduce their tax liability via the new regime's increased standard deduction, which they can use to their advantage.
Salary, pension, or family pension recipients are eligible to take a standard deduction from their gross income before determining their tax liability.
Funds paid out by insurance firms cannot be claimed as a standard deduction.
<h2>National Pension Scheme changes</h2>
An individual can get a bigger break on their employer's National Pension System (NPS) contribution if they choose the new tax system in FY 2024-25.
Under the new system, worke₹can deduct their employers' NPS contributions up to 14 per cent of their base income.
Up to 10 per cent of a worker's base income can be deducted in the past.
To determine taxable income, this deduction is taken from gross income in accordance with Section 80CCD (2) of the Income Tax Act, 1961.&nbsp;
This deduction is the sole one available under the new tax system, aside from the standard deduction.
The previous tax system allowed for an additional deduction of ₹50,000 for NPS investments made under Section 80CCD (1b) and a Section 80C deduction of ₹1.5 lakh.
Under the older tax system, the maximum amount that an employer may deduct from their NPS contributions for tax reasons remained unchanged.
People who want to pay less tax under the new system will be able to do so thanks to a larger deduction offered under the new system compared to the previous one.
Keep in mind that you would be responsible for paying taxes on employer contributions to EPF, NPS, and Superannuation funds if their combined value exceeds ₹7.5 lakh in a given fiscal year.
Additionally, taxes will be withheld on both the interest and return that is generated on the excess contribution.
<h2>Tax on capital gains changes</h2>
In the fiscal year 2024&ndash;25, the government will enforce new laws on capital gains taxes. The objective of the amendments was to optimise the framework for taxing capital gains.
A 20 per cent tax will be imposed on all short-term capital gains derived from shares and equity-oriented mutual funds. This has been increased from 15 per cent to 20 per cent.
Income tax brackets applicable to earnings will be imposed on short-term capital gains derived from diverse assets, such as real estate, gold, and other non-financial holdings.
The taxation rate for long-term capital gains is 12.5 per cent, irrespective of the asset type. The long-term capital gains tax rates will now be standardised across all asset classes.
Long-term capital gains (LTCG) on investments in stocks and equity-oriented mutual funds are now exempt from taxes up to ₹1.25 lakh every fiscal year, an increase from the previous threshold of ₹1 lakh.
The income tax on long-term capital gains (LTCG) on the sale of residential property is no longer entirely indexable.
If an individual acquires a residence on or before July 22, 2024, and then divests it, they will incur taxation on long-term capital gains (LTCG) in two manners, as stipulated by the new regulations.
Two methodologies exist:
(a) LTCG tax with indexation, calculated at 20 per cent, and
(b) LTCG tax without indexation, calculated at 12.5 per cent. In the absence of indexation benefits, long-term capital gains (LTCG) on the sale of a house acquired on or after July 23, 2024, will be subject to a tax rate of 12.5 per cent.
Only residents and Hindu Undivided Families (HUFs) may elect the LTCG taxation option for homes acquired before July 23, 2024.
Other taxable entities, including non-residents, will be obligated to remit 12.5 per cent without indexation.
The revised capital gains tax framework simplifies the method by which individuals ascertain their taxable income from capital gains.
In the past, various capital assets were subject to separate regulations for determining capital gains tax.
<h2>Capital gains holding period changes</h2>
The government has modified the time period for capital assets to further categorise capital gains as long-term or short-term.
The new criteria stipulate two holding periods for capital assets to determine whether earnings are classified as short-term or long-term.
Profits from the sale of any listed investment held for twelve months are classified as long-term capital gains.
Conversely, for capital gains on non-listed assets to qualify as long-term, the holding period for these securities must be 24 months.
Adjusting the holding period will facilitate taxpayers in monitoring the duration for which they must retain specific assets prior to sale, ensuring that their capital gains qualify as long-term capital gains.

Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country’s slowing economy. 

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption. However, the sources said the discussions are ongoing and no concrete decisions have been taken yet. The announcement will come in the budget on February 1. Even if the government does decide to go ahead with tax cuts, it would be under the new regime introduced in 2020. According to the discussions, individuals with earnings up to ₹1.5 million will not pay any tax. Currently, for income between ₹300,000 and ₹1.5 million the tax rate is 5 to 20 per cent, while higher income is taxed at 30 per cent. Under the new regime, though, there are no exemptions allowed, compared to the older regime, which allows exemptions on housing rentals, home loan interest and principal repayment, and insurance. However, filing tax returns under the 2020 regime is less complicated. Default and options The new regime was the default tax structure, with Indians given a choice to opt for the old regime. While some murmurs are floating the government will mandate the new regime, reports suggest India will continue with both regime options similar to the current fiscal year's choices. Individuals have the option of choosing the old regime, although, they cannot alter their choice once the new regime is opted for. New vs old regime Individuals need to look at the tax burden based on both regime's based on their investment choices for the year and make choice. Take a look at the tax rates under both regimes for comparison and making the choice. Taxation regimes Photograph: (WION) Government's plan to stimulate growth Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country’s slowing economy. The tax cuts would primarily impact city dwellers, who are facing high living costs, and could encourage more taxpaye₹to opt for the newer 2020 tax system. The potential tax reductions could make the simplified 2020 system more attractive to taxpayers, as it removes many exemptions but offe₹lower rates. India’s central government sources quoted by Reute₹indicate that such tax reforms could encourage wider adoption of this system, Especially in the face of rising food inflation and weaker consumer demand. The government has not yet specified the exact revenue loss from any cuts, but the goal is to stimulate economic activity amid sluggish growth. India’s economy has faced a significant slowdown, with growth dropping to its slowest pace in seven quarters between July and September unexpectedly. Despite this, the government is optimistic that rural demand will continue to show resilience, and urban demand is expected to pick up. The country’s growth forecast for the fiscal year 2024/25 stands at 6.5 percent, at the lower end of its projected range. With challenges such as high inflation and global uncertainties, including a stronger US dollar, India’s tax reforms could play a critical role in boosting domestic consumption and supporting the middle class, which remains politically vocal about high tax burdens. Changes to tax structure this year Modifications to the income tax system occurred midway through the year 2024. The reason behind this is that the government announced the Union Budget 2024 in July, following the general elections that took place between April and June of that year. The income tax law amendments that were revealed in July 2024 may have slipped the minds of many taxpayers due to the budget's mid-year presentation. Beginning with the fiscal year 2024–25, the majority of the income tax adjustments that were announced in July 2024 go into effect. When you file your income tax return (ITR) in July 2025, you'll be able to claim different tax deductions and exemptions because of these changes. The government adjusted the income tax brackets under the new tax system. Major relief for Indian middle class? Govt mulls tax cuts amid economic challenges: Reports For the current fiscal year 2024–25, taxpayers will benefit from increased savings due to the reduced income tax brackets of the new tax system. The government raised the standard deduction limit and modified the income tax brackets under the new tax system. Standard deduction changes The standard deduction for people filing under the new tax regime for FY 2024-25 is ₹75,000, an increase from ₹50,000 in the prior regime. The revised tax structure raises the standard deduction for family pensioners from ₹15,000 to ₹25,000. For the fiscal year 2024–25 (modified for 2025–26), the standard deduction limit stays constant for individuals opting to utilise the prior tax framework. India considers income tax cuts to boost consumption The old tax system provided a standard deduction of ₹50,000 for salaried and pensioner individuals, and ₹15,000 for family pensioners. Salary earners and retirees can reduce their tax liability via the new regime's increased standard deduction, which they can use to their advantage. Salary, pension, or family pension recipients are eligible to take a standard deduction from their gross income before determining their tax liability. Funds paid out by insurance firms cannot be claimed as a standard deduction. National Pension Scheme changes An individual can get a bigger break on their employer's National Pension System (NPS) contribution if they choose the new tax system in FY 2024-25. Under the new system, worke₹can deduct their employers' NPS contributions up to 14 per cent of their base income. Up to 10 per cent of a worker's base income can be deducted in the past. To determine taxable income, this deduction is taken from gross income in accordance with Section 80CCD (2) of the Income Tax Act, 1961. This deduction is the sole one available under the new tax system, aside from the standard deduction. The previous tax system allowed for an additional deduction of ₹50,000 for NPS investments made under Section 80CCD (1b) and a Section 80C deduction of ₹1.5 lakh. Under the older tax system, the maximum amount that an employer may deduct from their NPS contributions for tax reasons remained unchanged. People who want to pay less tax under the new system will be able to do so thanks to a larger deduction offered under the new system compared to the previous one. Keep in mind that you would be responsible for paying taxes on employer contributions to EPF, NPS, and Superannuation funds if their combined value exceeds ₹7.5 lakh in a given fiscal year. Additionally, taxes will be withheld on both the interest and return that is generated on the excess contribution. Tax on capital gains changes In the fiscal year 2024–25, the government will enforce new laws on capital gains taxes. The objective of the amendments was to optimise the framework for taxing capital gains. A 20 per cent tax will be imposed on all short-term capital gains derived from shares and equity-oriented mutual funds. This has been increased from 15 per cent to 20 per cent. Income tax brackets applicable to earnings will be imposed on short-term capital gains derived from diverse assets, such as real estate, gold, and other non-financial holdings. The taxation rate for long-term capital gains is 12.5 per cent, irrespective of the asset type. The long-term capital gains tax rates will now be standardised across all asset classes. Long-term capital gains (LTCG) on investments in stocks and equity-oriented mutual funds are now exempt from taxes up to ₹1.25 lakh every fiscal year, an increase from the previous threshold of ₹1 lakh. The income tax on long-term capital gains (LTCG) on the sale of residential property is no longer entirely indexable. If an individual acquires a residence on or before July 22, 2024, and then divests it, they will incur taxation on long-term capital gains (LTCG) in two manners, as stipulated by the new regulations. Two methodologies exist: (a) LTCG tax with indexation, calculated at 20 per cent, and (b) LTCG tax without indexation, calculated at 12.5 per cent. In the absence of indexation benefits, long-term capital gains (LTCG) on the sale of a house acquired on or after July 23, 2024, will be subject to a tax rate of 12.5 per cent. Only residents and Hindu Undivided Families (HUFs) may elect the LTCG taxation option for homes acquired before July 23, 2024. Other taxable entities, including non-residents, will be obligated to remit 12.5 per cent without indexation. The revised capital gains tax framework simplifies the method by which individuals ascertain their taxable income from capital gains. In the past, various capital assets were subject to separate regulations for determining capital gains tax. Capital gains holding period changes The government has modified the time period for capital assets to further categorise capital gains as long-term or short-term. The new criteria stipulate two holding periods for capital assets to determine whether earnings are classified as short-term or long-term. Profits from the sale of any listed investment held for twelve months are classified as long-term capital gains. Conversely, for capital gains on non-listed assets to qualify as long-term, the holding period for these securities must be 24 months. Adjusting the holding period will facilitate taxpayers in monitoring the duration for which they must retain specific assets prior to sale, ensuring that their capital gains qualify as long-term capital gains.

Explainer : India considers income tax cuts, all you need to know

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption. However, the sources said the discussions are ongoing and no concrete decisions have been taken yet.

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption. However, the sources said the discussions are ongoing and no concrete decisions have been taken yet. The announcement will come in the budget on February 1. Even if the government does decide to go ahead with tax cuts, it would be under the new regime introduced in 2020. According to the discussions, individuals with earnings up to ₹1.5 million will not pay any tax. Currently, for income between ₹300,000 and ₹1.5 million the tax rate is 5 to 20 per cent, while higher income is taxed at 30 per cent. Under the new regime, though, there are no exemptions allowed, compared to the older regime, which allows exemptions on housing rentals, home loan interest and principal repayment, and insurance. However, filing tax returns under the 2020 regime is less complicated. Default & options The new regime was the default tax structure, with Indians given a choice to opt for the old regime. While some murmurs are floating the government will mandate the new regime, reports suggest India will continue with both regime options similar to the current fiscal year's choices. Individuals have the option of choosing the old regime, although, they cannot alter their choice once the new regime is opted for. New vs old regime Individuals need to look at the tax burden based on both regime's based on their investment choices for the year and make choice. Take a look at the tax rates under both regimes for comparison and making the choice. OLD TAX REGIME INCOME TAX SLAB INCOME TAX RATE UPTO ₹2,50,000 NIL ₹2,50,001 TO ₹500,000 5% (₹12,500) ₹5,00,001 TO ₹10,00,000 20% (₹12,500 + ₹1,00,000) ABOVE ₹10,00,000 30% (₹1,12,000 + 30% ABOVE ₹10,00,000) NEW TAX REGIME INCOME TAX SLAB INCOME TAX RATE UPTO ₹3,00,000 NIL ₹3,00,001 TO ₹6,00,000 5% (₹15,000) ₹6,00,001 TO ₹9,00,000 10% (₹15,000 + ₹30,000) ₹9,00,001 TO ₹12,00,000 15% (₹45,000 + ₹45,000) ₹12,00,001 TO ₹15,00,001 20% (₹90,000 + ₹60,000) ABOVE ₹15,00,000 30% (₹1,50,000 + 30% ABOVE ₹15,00,000) Government's plan to stimulate growth Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country’s slowing economy. The tax cuts would primarily impact city dwellers, who are facing high living costs, and could encourage more taxpaye₹to opt for the newer 2020 tax system. The potential tax reductions could make the simplified 2020 system more attractive to taxpayers, as it removes many exemptions but offe₹lower rates. India’s central government sources quoted by Reute₹indicate that such tax reforms could encourage wider adoption of this system, Especially in the face of rising food inflation and weaker consumer demand. The government has not yet specified the exact revenue loss from any cuts, but the goal is to stimulate economic activity amid sluggish growth. India’s economy has faced a significant slowdown, with growth dropping to its slowest pace in seven quarters between July and September unexpectedly. Despite this, the government is optimistic that rural demand will continue to show resilience, and urban demand is expected to pick up. The country’s growth forecast for the fiscal year 2024/25 stands at 6.5 percent, at the lower end of its projected range. With challenges such as high inflation and global uncertainties, including a stronger US dollar, India’s tax reforms could play a critical role in boosting domestic consumption and supporting the middle class, which remains politically vocal about high tax burdens. Changes to tax structure this year Modifications to the income tax system occurred midway through the year 2024. The reason behind this is that the government announced the Union Budget 2024 in July, following the general elections that took place between April and June of that year. The income tax law amendments that were revealed in July 2024 may have slipped the minds of many taxpayers due to the budget's mid-year presentation. Beginning with the fiscal year 2024–25, the majority of the income tax adjustments that were announced in July 2024 go into effect. When you file your income tax return (ITR) in July 2025, you'll be able to claim different tax deductions and exemptions because of these changes. The government adjusted the income tax brackets under the new tax system. For the current fiscal year 2024–25, taxpayers will benefit from increased savings due to the reduced income tax brackets of the new tax system. The government raised the standard deduction limit and modified the income tax brackets under the new tax system. Standard deduction changes The standard deduction for people filing under the new tax regime for FY 2024-25 is ₹75,000, an increase from ₹50,000 in the prior regime. The revised tax structure raises the standard deduction for family pensioners from ₹15,000 to ₹25,000. For the fiscal year 2024–25 (modified for 2025–26), the standard deduction limit stays constant for individuals opting to utilise the prior tax framework. The old tax system provided a standard deduction of ₹50,000 for salaried and pensioner individuals, and ₹15,000 for family pensioners. Salary earners and retirees can reduce their tax liability via the new regime's increased standard deduction, which they can use to their advantage. Salary, pension, or family pension recipients are eligible to take a standard deduction from their gross income before determining their tax liability. Funds paid out by insurance firms cannot be claimed as a standard deduction. National Pension Scheme changes An individual can get a bigger break on their employer's National Pension System (NPS) contribution if they choose the new tax system in FY 2024-25. Under the new system, worke₹can deduct their employers' NPS contributions up to 14 per cent of their base income. Up to 10 per cent of a worker's base income can be deducted in the past. To determine taxable income, this deduction is taken from gross income in accordance with Section 80CCD (2) of the Income Tax Act, 1961. This deduction is the sole one available under the new tax system, aside from the standard deduction. The previous tax system allowed for an additional deduction of ₹50,000 for NPS investments made under Section 80CCD (1b) and a Section 80C deduction of ₹1.5 lakh. Under the older tax system, the maximum amount that an employer may deduct from their NPS contributions for tax reasons remained unchanged. People who want to pay less tax under the new system will be able to do so thanks to a larger deduction offered under the new system compared to the previous one. Keep in mind that you would be responsible for paying taxes on employer contributions to EPF, NPS, and Superannuation funds if their combined value exceeds ₹7.5 lakh in a given fiscal year. Additionally, taxes will be withheld on both the interest and return that is generated on the excess contribution. Tax on capital gains changes In the fiscal year 2024–25, the government will enforce new laws on capital gains taxes. The objective of the amendments was to optimise the framework for taxing capital gains. A 20 per cent tax will be imposed on all short-term capital gains derived from shares and equity-oriented mutual funds. This has been increased from 15 per cent to 20 per cent. Income tax brackets applicable to earnings will be imposed on short-term capital gains derived from diverse assets, such as real estate, gold, and other non-financial holdings. The taxation rate for long-term capital gains is 12.5 per cent, irrespective of the asset type. The long-term capital gains tax rates will now be standardised across all asset classes. Long-term capital gains (LTCG) on investments in stocks and equity-oriented mutual funds are now exempt from taxes up to ₹1.25 lakh every fiscal year, an increase from the previous threshold of ₹1 lakh. The income tax on long-term capital gains (LTCG) on the sale of residential property is no longer entirely indexable. If an individual acquires a residence on or before July 22, 2024, and then divests it, they will incur taxation on long-term capital gains (LTCG) in two manners, as stipulated by the new regulations. Two methodologies exist: (a) LTCG tax with indexation, calculated at 20 per cent, and (b) LTCG tax without indexation, calculated at 12.5 per cent. In the absence of indexation benefits, long-term capital gains (LTCG) on the sale of a house acquired on or after July 23, 2024, will be subject to a tax rate of 12.5 per cent. Only residents and Hindu Undivided Families (HUFs) may elect the LTCG taxation option for homes acquired before July 23, 2024. Other taxable entities, including non-residents, will be obligated to remit 12.5 per cent without indexation. The revised capital gains tax framework simplifies the method by which individuals ascertain their taxable income from capital gains. In the past, various capital assets were subject to separate regulations for determining capital gains tax. Capital gains holding period changes The government has modified the time period for capital assets to further categorise capital gains as long-term or short-term. The new criteria stipulate two holding periods for capital assets to determine whether earnings are classified as short-term or long-term. Profits from the sale of any listed investment held for twelve months are classified as long-term capital gains. Conversely, for capital gains on non-listed assets to qualify as long-term, the holding period for these securities must be 24 months. Adjusting the holding period will facilitate taxpayers in monitoring the duration for which they must retain specific assets prior to sale, ensuring that their capital gains qualify as long-term capital gains.

India considers income tax cuts: Explainer

‘AI is the key technology shaping our future,’ says Margarete Schramböck, Austria's former minister of digital and economic affairs, in this WION’s exclusive interview. Schramböck stresses the need for collaboration among trade stakeholders and underscores India's rise as a pivotal digital hub in the global economy. Listen to the full conversation.

‘58% of Engineers in Saudi are females’: WION’s exclusive with Margarete Schramböck

‘58% Of Engineers In Saudi Are Females’: WION’s Exclusive With Margarete Schramböck

Andrew Dressler, Managing Director, FDI, Berlin, Discusses The Evolving Landscape Of Foreign Direct Investment (FDI) In This WION’s Exclusive Interview. From The Heightened Global Interest In Attracting FDI To The Growing Influence Of Geopolitics On Industrial Policies, Dressler Highlights Key Trends. The Interview Also Explores The Role Of OECD Countries As Major FDI Sources And The Impact Of Political Uncertainty, Including The Decline Of FDI To The U.S. During Trump’s First Term. Watch in for more details!

‘FDI Is Now Flowing To Emerging Markets’: WION’s Exclusive With Andrew Dressler

New Delhi
Honda and Nissan, Japan's second and third largest automakers, are inching closer to a historic merger. This news has ignited discussions across the board on the feasibility of this acquisition and who stands to gain or lose from this arrangement.
Key highlights of the merger
It is anticipated that the firms will finalise a corporate integration agreement, including the share transfer plan, by June 2025, and that the share transfer will take place by August 2026. According to Mitsubishi, it is considering its role in the merger and plans to make a decision by January 2025.
Nissan's Chief Executive, Makoto Uchida, at a press conference said, “Although it is a simple calculation, the total sales scale of the two companies is more than 30 trillion yen ($191.3 billion). The total number of four-wheeled vehicles will be 7.5 million, and if the business integration is realised, it will make the company one of the largest among global automakers.” 
What it means for both companies &amp; the broader market
Honda and Nissan will try to consolidate their activities under a joint holding company, according to Toshihiro Mibe, President of Honda. The new management will be led by Honda, who will uphold each company's values and brands. According to him, they want to finalise the deal and list the holding company on the Tokyo Stock Exchange by August 2026, with a formal merger agreement expected by June.
Mibe also warned of the looming 'China' angle. He said, "There is a rise of Chinese power and emerging forces (in the automobile industry), and the structure of the automobile industry is changing. What this means is that, I believe that the value itself in terms of automobiles and mobility will change.”
According to Sam Fiorani, vice president of AutoForecast Solutions, Nissan offers huge SUVs with truck-based body-on-frame models, such the Armada and Infiniti QX80, that Honda does not have. These vehicles have good off-road performance and large towing capacity. He added that Nissan's years of experience in producing electric cars, batteries, and gas-electric hybrid powertrains may aid Honda in creating its own EVs and the next generation of hybrids. According to automotive industry analyst Sam Abuelsamid, who works in the Detroit area, "Nissan does have some product segments where Honda doesn't currently play," which a merger or alliance may help with. 
The 2 companies will join a long list of legacy automakers teaming up to enable next-gen vehicles that require collaboration &amp; pooling of resources to gain competitive advantage.  Mergers have occurred ever since General Motors (GM) was established in the first decade of the 20th century through the acquisition of several brands. However, they may struggle to successfully bring disparate partners together. In 1998, the German carmaker Daimler-Benz consented to purchase Chrysler Corp., but ten years later, the merged company was divided. Within two years, the newly independent Chrysler went bankrupt and needed a federal rescue. In the past year, Chrysler's most recent merger, with Europe's PSA Group in 2001 to establish Stellantis, has had its own set of issues, including declining sales and earnings. 
Impact on US markets
US-listed shares of Honda Motor reacted positively to the merger news. Analysts believe it would indicate the auto industry's much-needed consolidation. Honda's stock surged over 16 per cent, marking the largest one-day percentage gain since the record 19.6 per cent run-up on October 28, 2008.
Investor optimism was boosted by Honda's announcement that it would buy back up to $7 billion (1.1 trillion yen) of its own shares in order to increase shareholder returns. This, along with implementing a flexible capital strategy, and improving the "efficiency of its capital structure," which fueled the stock jump. The buybacks would start on January 6, 2025, and continue for the majority of the following year.
In a recent note to clients, UBS analyst Joseph Spak stated that in order to increase capital efficiency, the industry's rapid changes necessitate consolidation, partnerships, or other actions.
Impact on Indian markets
Given their separate large production setups and the fact that Nissan has an alliance partner in France, the Japanese companies Honda and Nissan's plans to combine operations in response to difficult business challenges could have a significant impact on both their global operations and their ability to operate in India. The entire plan is further complicated by the almost nonexistent activities of Mitsubishi in India, another party to the proposed Honda-Nissan merger. In India, Mitsubishi is sold in collaboration with the C K Birla group; however, the latter has since partnered with the French PSA group to produce Citroen automobiles.  
Take into account how complicated Nissan and Honda's operations are in India: Nissan now operates in India through a manufacturing joint venture with its global alliance partner Renault, having previously had a joint venture with Ashok Leyland. The alliance in India, which is estimated to have a joint installed capacity of 4 lakh units at the Oragadam factory outside Chennai, has been having trouble with sales.
In India, Nissan and Renault have both had sporadic success and have not taken advantage of any promising leads. With an export-oriented business model, Nissan specifically attempted to balance operations, but even this has proven difficult. If Renault does not participate in the Nissan-Honda global deal, it is still unclear what will happen to the Chennai factory. As the situation develops, it will be necessary to find out on what terms the Nissan or, for that matter, Renault vehicles would be manufactured at the Chennai plant.
Honda, one of the larger participants in the proposed global merger, is having a very difficult time. Although the company was once thought to be a powerful force, it has failed to live up to its reputation and has been losing market share to more established competitors like Hyundai, Toyota, Maruti Suzuki, and even regional brands like Tata Motors and Mahindra &amp; Mahindra. This year, Honda anticipates almost negligible growth in sales in India (approximately 87,000 units). Due to low demand, the company's Greater Noida manufacturing facility has been closed for many years. 
Industry reactions
Industry reactions to this news have been mixed. While some tout the merger idea as a 'game-changer', former Nissan CEO Carlos Ghosn, who fled to Japan in 2019 following corruption allegations, questioned whether a possible Honda-Nissan merger would succeed, stating that the latter's plans "do not make sense." He said, "The first thing that you look at when you want to envision an alliance or a partnership is a complementarity between the two partners. Well, I look at the complementarity between Honda and Nissan and I see none. There is no complementarity. The two companies are two Japanese companies. They are strong in the same fields. They are weak in the same fields. Both of them have very developed technologies. Again, from an industrial point of view, there is duplication everywhere. So, industrially, for me, that doesn't make sense."
As the merger talks progress and new information is revealed, the global auto industry is bracing for a major shift.

It is anticipated that the firms will finalise a corporate integration agreement, including the share transfer plan, by June 2025, and that the share transfer will take place by August 2026. According to Mitsubishi, it is considering its role in the merger and plans to make a decision by January 2025.



New Delhi Honda and Nissan, Japan's second and third largest automakers, are inching closer to a historic merger. This news has ignited discussions across the board on the feasibility of this acquisition and who stands to gain or lose from this arrangement. Key highlights of the merger It is anticipated that the firms will finalise a corporate integration agreement, including the share transfer plan, by June 2025, and that the share transfer will take place by August 2026. According to Mitsubishi, it is considering its role in the merger and plans to make a decision by January 2025. Nissan's Chief Executive, Makoto Uchida, at a press conference said, “Although it is a simple calculation, the total sales scale of the two companies is more than 30 trillion yen ($191.3 billion). The total number of four-wheeled vehicles will be 7.5 million, and if the business integration is realised, it will make the company one of the largest among global automakers.” What it means for both companies & the broader market Honda and Nissan will try to consolidate their activities under a joint holding company, according to Toshihiro Mibe, President of Honda. The new management will be led by Honda, who will uphold each company's values and brands. According to him, they want to finalise the deal and list the holding company on the Tokyo Stock Exchange by August 2026, with a formal merger agreement expected by June. Mibe also warned of the looming 'China' angle. He said, "There is a rise of Chinese power and emerging forces (in the automobile industry), and the structure of the automobile industry is changing. What this means is that, I believe that the value itself in terms of automobiles and mobility will change.” According to Sam Fiorani, vice president of AutoForecast Solutions, Nissan offers huge SUVs with truck-based body-on-frame models, such the Armada and Infiniti QX80, that Honda does not have. These vehicles have good off-road performance and large towing capacity. He added that Nissan's years of experience in producing electric cars, batteries, and gas-electric hybrid powertrains may aid Honda in creating its own EVs and the next generation of hybrids. According to automotive industry analyst Sam Abuelsamid, who works in the Detroit area, "Nissan does have some product segments where Honda doesn't currently play," which a merger or alliance may help with. The 2 companies will join a long list of legacy automakers teaming up to enable next-gen vehicles that require collaboration & pooling of resources to gain competitive advantage. Mergers have occurred ever since General Motors (GM) was established in the first decade of the 20th century through the acquisition of several brands. However, they may struggle to successfully bring disparate partners together. In 1998, the German carmaker Daimler-Benz consented to purchase Chrysler Corp., but ten years later, the merged company was divided. Within two years, the newly independent Chrysler went bankrupt and needed a federal rescue. In the past year, Chrysler's most recent merger, with Europe's PSA Group in 2001 to establish Stellantis, has had its own set of issues, including declining sales and earnings. Impact on US markets US-listed shares of Honda Motor reacted positively to the merger news. Analysts believe it would indicate the auto industry's much-needed consolidation. Honda's stock surged over 16 per cent, marking the largest one-day percentage gain since the record 19.6 per cent run-up on October 28, 2008. Investor optimism was boosted by Honda's announcement that it would buy back up to $7 billion (1.1 trillion yen) of its own shares in order to increase shareholder returns. This, along with implementing a flexible capital strategy, and improving the "efficiency of its capital structure," which fueled the stock jump. The buybacks would start on January 6, 2025, and continue for the majority of the following year. In a recent note to clients, UBS analyst Joseph Spak stated that in order to increase capital efficiency, the industry's rapid changes necessitate consolidation, partnerships, or other actions. Impact on Indian markets Given their separate large production setups and the fact that Nissan has an alliance partner in France, the Japanese companies Honda and Nissan's plans to combine operations in response to difficult business challenges could have a significant impact on both their global operations and their ability to operate in India. The entire plan is further complicated by the almost nonexistent activities of Mitsubishi in India, another party to the proposed Honda-Nissan merger. In India, Mitsubishi is sold in collaboration with the C K Birla group; however, the latter has since partnered with the French PSA group to produce Citroen automobiles. Take into account how complicated Nissan and Honda's operations are in India: Nissan now operates in India through a manufacturing joint venture with its global alliance partner Renault, having previously had a joint venture with Ashok Leyland. The alliance in India, which is estimated to have a joint installed capacity of 4 lakh units at the Oragadam factory outside Chennai, has been having trouble with sales. In India, Nissan and Renault have both had sporadic success and have not taken advantage of any promising leads. With an export-oriented business model, Nissan specifically attempted to balance operations, but even this has proven difficult. If Renault does not participate in the Nissan-Honda global deal, it is still unclear what will happen to the Chennai factory. As the situation develops, it will be necessary to find out on what terms the Nissan or, for that matter, Renault vehicles would be manufactured at the Chennai plant. Honda, one of the larger participants in the proposed global merger, is having a very difficult time. Although the company was once thought to be a powerful force, it has failed to live up to its reputation and has been losing market share to more established competitors like Hyundai, Toyota, Maruti Suzuki, and even regional brands like Tata Motors and Mahindra & Mahindra. This year, Honda anticipates almost negligible growth in sales in India (approximately 87,000 units). Due to low demand, the company's Greater Noida manufacturing facility has been closed for many years. Industry reactions Industry reactions to this news have been mixed. While some tout the merger idea as a 'game-changer', former Nissan CEO Carlos Ghosn, who fled to Japan in 2019 following corruption allegations, questioned whether a possible Honda-Nissan merger would succeed, stating that the latter's plans "do not make sense." He said, "The first thing that you look at when you want to envision an alliance or a partnership is a complementarity between the two partners. Well, I look at the complementarity between Honda and Nissan and I see none. There is no complementarity. The two companies are two Japanese companies. They are strong in the same fields. They are weak in the same fields. Both of them have very developed technologies. Again, from an industrial point of view, there is duplication everywhere. So, industrially, for me, that doesn't make sense." As the merger talks progress and new information is revealed, the global auto industry is bracing for a major shift.

Honda-Nissan merger: What you need to know

Washington, United States
The US Federal Bureau of Investigation (FBI) and Japan’s National Police Agency have said that a North Korean hacking group, TraderTraitor, stole cryptocurrency worth $308 million from Japan-based exchange DMM Bitcoin earlier this year in May.
TraderTraitor, known to be a part of Lazarus Group, targets multiple employees from the same organisation at the same time. The infamous Lazarus Group is allegedly linked to Pyongyang authorities and has been accused of hacking into Sony Pictures for mocking North Korean leader Kim Jong Un in the film The Interview.
Also read | <a href="https://www.wionews.com/world/luxury-brands-to-consider-accepting-crypto-payments-as-bitcoin-soars-785112">Luxury brands to consider accepting crypto payments as bitcoin soars</a>
“The theft of cryptocurrency worth $308 million US dollars from the Japan-based cryptocurrency company DMM by North Korean cyber actors,” the FBI stated in a statement on Monday (Dec 23).
The North Korean cyber actors facilitated a “targeted social engineering” operation in which they pretended to be LinkedIn recruiters and contacted an employee at a Japan-based enterprise cryptocurrency wallet software company Ginco in late March.
They then sent a malicious code under the guise of a pre-employment test on a GitHub page, which allowed hackers to gain access to their system and impersonate the employee.
Also read | <a href="https://www.wionews.com/business-economy/honda-nissan-merger-what-you-need-to-know-786402">Honda-Nissan merger: What you need to know</a>
In late May, the hackers manipulated a legitimate transaction request by a DMM employee. According to the FBI, the attack led to losses of 4,502.9 BTC, worth $308 million, which were transferred to TraderTraitor-controlled wallets.
“The FBI, National Police Agency of Japan, and other U.S. government and international partners will continue to expose and combat North Korea’s use of illicit activities—including cybercrime and cryptocurrency theft—to generate revenue for the regime,” the FBI added in its statement. 
According to a 2020 US military report, North Korea’s cyber-warfare agency, Bureau 121, has over 6,000 members operating from several countries. The program can be tracked back to at least the mid-1990s.
(With inputs from agencies)

The North Korean cyber actors facilitated a “targeted social engineering” operation in which they pretended to be LinkedIn recruiters and contacted an employee at a Japan-based enterprise cryptocurrency wallet software company Ginco in late March



Washington, United States The US Federal Bureau of Investigation (FBI) and Japan’s National Police Agency have said that a North Korean hacking group, TraderTraitor, stole cryptocurrency worth $308 million from Japan-based exchange DMM Bitcoin earlier this year in May. TraderTraitor, known to be a part of Lazarus Group, targets multiple employees from the same organisation at the same time. The infamous Lazarus Group is allegedly linked to Pyongyang authorities and has been accused of hacking into Sony Pictures for mocking North Korean leader Kim Jong Un in the film The Interview. Also read | Luxury brands to consider accepting crypto payments as bitcoin soars “The theft of cryptocurrency worth $308 million US dollars from the Japan-based cryptocurrency company DMM by North Korean cyber actors,” the FBI stated in a statement on Monday (Dec 23). The North Korean cyber actors facilitated a “targeted social engineering” operation in which they pretended to be LinkedIn recruiters and contacted an employee at a Japan-based enterprise cryptocurrency wallet software company Ginco in late March. They then sent a malicious code under the guise of a pre-employment test on a GitHub page, which allowed hackers to gain access to their system and impersonate the employee. Also read | Honda-Nissan merger: What you need to know In late May, the hackers manipulated a legitimate transaction request by a DMM employee. According to the FBI, the attack led to losses of 4,502.9 BTC, worth $308 million, which were transferred to TraderTraitor-controlled wallets. “The FBI, National Police Agency of Japan, and other U.S. government and international partners will continue to expose and combat North Korea’s use of illicit activities—including cybercrime and cryptocurrency theft—to generate revenue for the regime,” the FBI added in its statement. According to a 2020 US military report, North Korea’s cyber-warfare agency, Bureau 121, has over 6,000 members operating from several countries. The program can be tracked back to at least the mid-1990s. (With inputs from agencies)

North Korean cyber actors behind $308 million cryptocurrency heist, say US and Japan

Honda and Nissan, Japan's second and third largest automakers, are inching closer to a historic merger. This news has ignited discussions across the board on the feasibility of this acquisition and who stands to gain or lose from this arrangement.

Key highlights of the merger

It is anticipated that the firms will finalise a corporate integration agreement, including the share transfer plan, by June 2025, and that the share transfer will take place by August 2026. According to Mitsubishi, it is considering its role in the merger and plans to make a decision by January 2025.

Nissan's Chief Executive, Makoto Uchida, at a press conference said, “Although it is a simple calculation, the total sales scale of the two companies is more than 30 trillion yen ($191.3 billion). The total number of four-wheeled vehicles will be 7.5 million, and if the business integration is realised, it will make the company one of the largest among global automakers.”&nbsp;

What it means for both companies &amp; the broader market

Honda and Nissan will try to consolidate their activities under a joint holding company, according to Toshihiro Mibe, President of Honda. The new management will be led by Honda, who will uphold each company's values and brands. According to him, they want to finalise the deal and list the holding company on the Tokyo Stock Exchange by August 2026, with a formal merger agreement expected by June.

Mibe also warned of the looming 'China' angle. He said, "There is a rise of Chinese power and emerging forces (in the automobile industry), and the structure of the automobile industry is changing. What this means is that, I believe that the value itself in terms of automobiles and mobility will change.”

According to Sam Fiorani, vice president of AutoForecast Solutions, Nissan offers huge SUVs with truck-based body-on-frame models, such the Armada and Infiniti QX80, that Honda does not have. These vehicles have good off-road performance and large towing capacity. He added that Nissan's years of experience in producing electric cars, batteries, and gas-electric hybrid powertrains may aid Honda in creating its own EVs and the next generation of hybrids. According to automotive industry analyst Sam Abuelsamid, who works in the Detroit area, "Nissan does have some product segments where Honda doesn't currently play," which a merger or alliance may help with.&nbsp;

The 2 companies will join a long list of legacy automakers teaming up to enable next-gen vehicles that require collaboration &amp; pooling of resources to gain competitive advantage. &nbsp;Mergers have occurred ever since General Motors (GM) was established in the first decade of the 20th century through the acquisition of several brands. However, they may struggle to successfully bring disparate partners together. In 1998, the German carmaker Daimler-Benz consented to purchase Chrysler Corp., but ten years later, the merged company was divided. Within two years, the newly independent Chrysler went bankrupt and needed a federal rescue. In the past year, Chrysler's most recent merger, with Europe's PSA Group in 2001 to establish Stellantis, has had its own set of issues, including declining sales and earnings.&nbsp;

Impact on US markets

US-listed shares of Honda Motor reacted positively to the merger news. Analysts believe it would indicate the auto industry's much-needed consolidation. Honda's stock surged over 16 per cent, marking the largest one-day percentage gain since the record 19.6 per cent run-up on October 28, 2008.

Investor optimism was boosted by Honda's announcement that it would buy back up to $7 billion (1.1 trillion yen) of its own shares in order to increase shareholder returns. This, along with implementing a flexible capital strategy, and improving the "efficiency of its capital structure," which fueled the stock jump. The buybacks would start on January 6, 2025, and continue for the majority of the following year.

In a recent note to clients, UBS analyst Joseph Spak stated that in order to increase capital efficiency, the industry's rapid changes necessitate consolidation, partnerships, or other actions.

Impact on Indian markets

Given their separate large production setups and the fact that Nissan has an alliance partner in France, the Japanese companies Honda and Nissan's plans to combine operations in response to difficult business challenges could have a significant impact on both their global operations and their ability to operate in India. The entire plan is further complicated by the almost nonexistent activities of Mitsubishi in India, another party to the proposed Honda-Nissan merger. In India, Mitsubishi is sold in collaboration with the C K Birla group; however, the latter has since partnered with the French PSA group to produce Citroen automobiles. &nbsp;

Take into account how complicated Nissan and Honda's operations are in India: Nissan now operates in India through a manufacturing joint venture with its global alliance partner Renault, having previously had a joint venture with Ashok Leyland. The alliance in India, which is estimated to have a joint installed capacity of 4 lakh units at the Oragadam factory outside Chennai, has been having trouble with sales.

In India, Nissan and Renault have both had sporadic success and have not taken advantage of any promising leads. With an export-oriented business model, Nissan specifically attempted to balance operations, but even this has proven difficult. If Renault does not participate in the Nissan-Honda global deal, it is still unclear what will happen to the Chennai factory. As the situation develops, it will be necessary to find out on what terms the Nissan or, for that matter, Renault vehicles would be manufactured at the Chennai plant.

Honda, one of the larger participants in the proposed global merger, is having a very difficult time. Although the company was once thought to be a powerful force, it has failed to live up to its reputation and has been losing market share to more established competitors like Hyundai, Toyota, Maruti Suzuki, and even regional brands like Tata Motors and Mahindra &amp; Mahindra. This year, Honda anticipates almost negligible growth in sales in India (approximately 87,000 units). Due to low demand, the company's Greater Noida manufacturing facility has been closed for many years.&nbsp;

Industry reactions

Industry reactions to this news have been mixed. While some tout the merger idea as a 'game-changer', former Nissan CEO Carlos Ghosn, who fled to Japan in 2019 following corruption allegations, questioned whether a possible Honda-Nissan merger would succeed, stating that the latter's plans "do not make sense." He said, "The first thing that you look at when you want to envision an alliance or a partnership is a complementarity between the two partners. Well, I look at the complementarity between Honda and Nissan and I see none. There is no complementarity. The two companies are two Japanese companies. They are strong in the same fields. They are weak in the same fields. Both of them have very developed technologies. Again, from an industrial point of view, there is duplication everywhere. So, industrially, for me, that doesn't make sense."

As the merger talks progress and new information is revealed, the global auto industry is bracing for a major shift.

Honda and Nissan, Japan's second and third largest automakers, are inching closer to a historic merger. This news has ignited discussions across the board on the feasibility of this acquisition and who stands to gain or lose from this arrangement.

Honda and Nissan, Japan's second and third largest automakers, are inching closer to a historic merger. This news has ignited discussions across the board on the feasibility of this acquisition and who stands to gain or lose from this arrangement. Key highlights of the merger It is anticipated that the firms will finalise a corporate integration agreement, including the share transfer plan, by June 2025, and that the share transfer will take place by August 2026. According to Mitsubishi, it is considering its role in the merger and plans to make a decision by January 2025. Nissan's Chief Executive, Makoto Uchida, at a press conference said, “Although it is a simple calculation, the total sales scale of the two companies is more than 30 trillion yen ($191.3 billion). The total number of four-wheeled vehicles will be 7.5 million, and if the business integration is realised, it will make the company one of the largest among global automakers.” What it means for both companies & the broader market Honda and Nissan will try to consolidate their activities under a joint holding company, according to Toshihiro Mibe, President of Honda. The new management will be led by Honda, who will uphold each company's values and brands. According to him, they want to finalise the deal and list the holding company on the Tokyo Stock Exchange by August 2026, with a formal merger agreement expected by June. Mibe also warned of the looming 'China' angle. He said, "There is a rise of Chinese power and emerging forces (in the automobile industry), and the structure of the automobile industry is changing. What this means is that, I believe that the value itself in terms of automobiles and mobility will change.” According to Sam Fiorani, vice president of AutoForecast Solutions, Nissan offers huge SUVs with truck-based body-on-frame models, such the Armada and Infiniti QX80, that Honda does not have. These vehicles have good off-road performance and large towing capacity. He added that Nissan's years of experience in producing electric cars, batteries, and gas-electric hybrid powertrains may aid Honda in creating its own EVs and the next generation of hybrids. According to automotive industry analyst Sam Abuelsamid, who works in the Detroit area, "Nissan does have some product segments where Honda doesn't currently play," which a merger or alliance may help with. The 2 companies will join a long list of legacy automakers teaming up to enable next-gen vehicles that require collaboration & pooling of resources to gain competitive advantage. Mergers have occurred ever since General Motors (GM) was established in the first decade of the 20th century through the acquisition of several brands. However, they may struggle to successfully bring disparate partners together. In 1998, the German carmaker Daimler-Benz consented to purchase Chrysler Corp., but ten years later, the merged company was divided. Within two years, the newly independent Chrysler went bankrupt and needed a federal rescue. In the past year, Chrysler's most recent merger, with Europe's PSA Group in 2001 to establish Stellantis, has had its own set of issues, including declining sales and earnings. Impact on US markets US-listed shares of Honda Motor reacted positively to the merger news. Analysts believe it would indicate the auto industry's much-needed consolidation. Honda's stock surged over 16 per cent, marking the largest one-day percentage gain since the record 19.6 per cent run-up on October 28, 2008. Investor optimism was boosted by Honda's announcement that it would buy back up to $7 billion (1.1 trillion yen) of its own shares in order to increase shareholder returns. This, along with implementing a flexible capital strategy, and improving the "efficiency of its capital structure," which fueled the stock jump. The buybacks would start on January 6, 2025, and continue for the majority of the following year. In a recent note to clients, UBS analyst Joseph Spak stated that in order to increase capital efficiency, the industry's rapid changes necessitate consolidation, partnerships, or other actions. Impact on Indian markets Given their separate large production setups and the fact that Nissan has an alliance partner in France, the Japanese companies Honda and Nissan's plans to combine operations in response to difficult business challenges could have a significant impact on both their global operations and their ability to operate in India. The entire plan is further complicated by the almost nonexistent activities of Mitsubishi in India, another party to the proposed Honda-Nissan merger. In India, Mitsubishi is sold in collaboration with the C K Birla group; however, the latter has since partnered with the French PSA group to produce Citroen automobiles. Take into account how complicated Nissan and Honda's operations are in India: Nissan now operates in India through a manufacturing joint venture with its global alliance partner Renault, having previously had a joint venture with Ashok Leyland. The alliance in India, which is estimated to have a joint installed capacity of 4 lakh units at the Oragadam factory outside Chennai, has been having trouble with sales. In India, Nissan and Renault have both had sporadic success and have not taken advantage of any promising leads. With an export-oriented business model, Nissan specifically attempted to balance operations, but even this has proven difficult. If Renault does not participate in the Nissan-Honda global deal, it is still unclear what will happen to the Chennai factory. As the situation develops, it will be necessary to find out on what terms the Nissan or, for that matter, Renault vehicles would be manufactured at the Chennai plant. Honda, one of the larger participants in the proposed global merger, is having a very difficult time. Although the company was once thought to be a powerful force, it has failed to live up to its reputation and has been losing market share to more established competitors like Hyundai, Toyota, Maruti Suzuki, and even regional brands like Tata Motors and Mahindra & Mahindra. This year, Honda anticipates almost negligible growth in sales in India (approximately 87,000 units). Due to low demand, the company's Greater Noida manufacturing facility has been closed for many years. Industry reactions Industry reactions to this news have been mixed. While some tout the merger idea as a 'game-changer', former Nissan CEO Carlos Ghosn, who fled to Japan in 2019 following corruption allegations, questioned whether a possible Honda-Nissan merger would succeed, stating that the latter's plans "do not make sense." He said, "The first thing that you look at when you want to envision an alliance or a partnership is a complementarity between the two partners. Well, I look at the complementarity between Honda and Nissan and I see none. There is no complementarity. The two companies are two Japanese companies. They are strong in the same fields. They are weak in the same fields. Both of them have very developed technologies. Again, from an industrial point of view, there is duplication everywhere. So, industrially, for me, that doesn't make sense." As the merger talks progress and new information is revealed, the global auto industry is bracing for a major shift.

The US&nbsp;Federal Bureau of Investigation (FBI) and Japan’s National Police Agency have said that a North Korean hacking group, TraderTraitor, stole&nbsp;cryptocurrency worth $308 million from Japan-based exchange DMM Bitcoin earlier this year in May.

TraderTraitor, known to be a part of Lazarus Group, targets multiple employees from the same organisation at the same time. The infamous Lazarus Group is allegedly linked to Pyongyang authorities and has been accused of hacking into Sony Pictures for mocking North Korean leader Kim Jong Un in the film The Interview.

Also read |&nbsp;<a href="https://www.wionews.com/world/luxury-brands-to-consider-accepting-crypto-payments-as-bitcoin-soars-785112">Luxury brands to consider accepting crypto payments as bitcoin soars</a>

“The theft of cryptocurrency worth $308 million US dollars from the Japan-based cryptocurrency company DMM by North Korean cyber actors,” the FBI stated in a statement on Monday (Dec 23).

The North Korean cyber actors facilitated a “targeted social engineering” operation in which they pretended to be LinkedIn recruiters and contacted an employee at a Japan-based enterprise cryptocurrency wallet software company Ginco in late March.

They then sent a malicious code under the guise of a pre-employment test on a GitHub page, which allowed hackers to gain access to their system and impersonate the employee.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/honda-nissan-merger-what-you-need-to-know-786402">Honda-Nissan merger: What you need to know</a>

In late May, the hackers manipulated a legitimate transaction request by a DMM employee. According to the FBI, the attack led to losses of 4,502.9 BTC, worth $308 million, which were transferred to TraderTraitor-controlled wallets.

“The FBI, National Police Agency of Japan, and other U.S. government and international partners will continue to expose and combat North Korea’s use of illicit activities—including cybercrime and cryptocurrency theft—to generate revenue for the regime,” the FBI added in its statement.&nbsp;

According to a 2020 US military report, North Korea’s cyber-warfare agency, Bureau 121, has over 6,000 members operating from several countries. The program can be tracked back to at least the mid-1990s.

(With inputs from agencies)

The US Federal Bureau of Investigation (FBI) and Japan’s National Police Agency have said that a North Korean hacking group, TraderTraitor, stole cryptocurrency worth $308 million from Japan-based exchange DMM Bitcoin earlier this year in May.

The US Federal Bureau of Investigation (FBI) and Japan’s National Police Agency have said that a North Korean hacking group, TraderTraitor, stole cryptocurrency worth $308 million from Japan-based exchange DMM Bitcoin earlier this year in May. TraderTraitor, known to be a part of Lazarus Group, targets multiple employees from the same organisation at the same time. The infamous Lazarus Group is allegedly linked to Pyongyang authorities and has been accused of hacking into Sony Pictures for mocking North Korean leader Kim Jong Un in the film The Interview. Also read | Luxury brands to consider accepting crypto payments as bitcoin soars “The theft of cryptocurrency worth $308 million US dollars from the Japan-based cryptocurrency company DMM by North Korean cyber actors,” the FBI stated in a statement on Monday (Dec 23). The North Korean cyber actors facilitated a “targeted social engineering” operation in which they pretended to be LinkedIn recruiters and contacted an employee at a Japan-based enterprise cryptocurrency wallet software company Ginco in late March. They then sent a malicious code under the guise of a pre-employment test on a GitHub page, which allowed hackers to gain access to their system and impersonate the employee. Also read | Honda-Nissan merger: What you need to know In late May, the hackers manipulated a legitimate transaction request by a DMM employee. According to the FBI, the attack led to losses of 4,502.9 BTC, worth $308 million, which were transferred to TraderTraitor-controlled wallets. “The FBI, National Police Agency of Japan, and other U.S. government and international partners will continue to expose and combat North Korea’s use of illicit activities—including cybercrime and cryptocurrency theft—to generate revenue for the regime,” the FBI added in its statement. According to a 2020 US military report, North Korea’s cyber-warfare agency, Bureau 121, has over 6,000 members operating from several countries. The program can be tracked back to at least the mid-1990s. (With inputs from agencies)

Washington
The United States said Monday it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies.
The probe centres on foundational semiconductors -- which go into everything from cars to medical devices -- and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office.
The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical US supply chains, and US economic security," the USTR's office added.
Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices."
The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products.
"We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China.
Previous instances included steel, aluminum, solar cells, electric vehicles, and now semiconductors, Tai told reporters on Sunday.
"This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition," Tai added.
<h2>Sector dominance</h2>
In a notice, USTR said China "nearly doubled its global share of foundational logic semiconductors production capacity" in just six years.
China's share is set to reach about half the world's capacity by 2029, based on announced new fabrication plants, and this expansion "is already discouraging investment by market-oriented actors," USTR added.
Commerce Secretary Gina Raimondo said an analysis of the US semiconductor supply chain found two-thirds of US products contain Chinese-made foundational chips.
"About half of companies didn't know whether they had Chinese chips in their products," she added.
In recent years, President Joe Biden has sought to shore up US chipmaking capabilities to reduce reliance on other countries. 
The latest probe will initially focus on China's foundational semiconductors production, including the extent these are used in other products like medical devices and vehicles.
The probe is also expected to consider whether Beijing's policies on inputs for semiconductor fabrication contribute to "burden or restriction on US commerce," the USTR's office said.
"This investigation is part of our broader strategy to strengthen the resilience of our supply chains and revitalize domestic manufacturing," said National Economic Advisor Lael Brainard.
Officials will have a year to handle the investigation and decide on responses.
Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The probe centers on foundational semiconductors -- which go into everything from cars to medical devices -- and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office.



Washington The United States said Monday it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies. The probe centres on foundational semiconductors -- which go into everything from cars to medical devices -- and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office. The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical US supply chains, and US economic security," the USTR's office added. Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices." The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products. "We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China. Previous instances included steel, aluminum, solar cells, electric vehicles, and now semiconductors, Tai told reporters on Sunday. "This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition," Tai added. Sector dominance In a notice, USTR said China "nearly doubled its global share of foundational logic semiconductors production capacity" in just six years. China's share is set to reach about half the world's capacity by 2029, based on announced new fabrication plants, and this expansion "is already discouraging investment by market-oriented actors," USTR added. Commerce Secretary Gina Raimondo said an analysis of the US semiconductor supply chain found two-thirds of US products contain Chinese-made foundational chips. "About half of companies didn't know whether they had Chinese chips in their products," she added. In recent years, President Joe Biden has sought to shore up US chipmaking capabilities to reduce reliance on other countries. The latest probe will initially focus on China's foundational semiconductors production, including the extent these are used in other products like medical devices and vehicles. The probe is also expected to consider whether Beijing's policies on inputs for semiconductor fabrication contribute to "burden or restriction on US commerce," the USTR's office said. "This investigation is part of our broader strategy to strengthen the resilience of our supply chains and revitalize domestic manufacturing," said National Economic Advisor Lael Brainard. Officials will have a year to handle the investigation and decide on responses. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

US to probe China's chip industry over THIS concern

New Delhi
The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.
Key points
What's cheaper now?
- fortified rice kernels
- gene therapy
- food preparations for free distribution
- systems for long range surface-to-air missile assembly
- inspection equipment for atomic energy
- pepper &amp; raisins supplied by agriculturists

what's expensive now?
- old &amp; used vehicle (including EVs)
- ready-to-eat popcorn
- autoclaved aerated concrete blocks
- sponsorship services by corporates
- penalty-only appeals

Popcorns
For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent.
Health Insurance
While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same.
Automotives &amp; EVs
The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules.
Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent.
Adjustments on luxury &amp; essential goods
The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses.
Aviation Fuel
According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today".
Construction and agricultural goods
ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST.
Also read: <a href="https://www.wionews.com/business-economy/money-wise-planning-to-become-a-sip-expert-here-are-some-golden-rules-to-reap-profits-785260">Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits</a>

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman.



New Delhi The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made. Key points What's cheaper now? - fortified rice kernels - gene therapy - food preparations for free distribution - systems for long range surface-to-air missile assembly - inspection equipment for atomic energy - pepper & raisins supplied by agriculturists what's expensive now? - old & used vehicle (including EVs) - ready-to-eat popcorn - autoclaved aerated concrete blocks - sponsorship services by corporates - penalty-only appeals Popcorns For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent. Health Insurance While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same. Automotives & EVs The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules. Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent. Adjustments on luxury & essential goods The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses. Aviation Fuel According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today". Construction and agricultural goods ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST. Also read: Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits

55th GST council meeting: key discussion points

The United States said Monday it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies.

The probe centres on foundational semiconductors -- which go into everything from cars to medical devices -- and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office.

The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical US supply chains, and US economic security," the USTR's office added.

Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices."

The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products.

"We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China.

Previous instances included steel, aluminum, solar cells, electric vehicles, and now semiconductors, Tai told reporters on Sunday.

"This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition," Tai added.

<h2>Sector dominance</h2>

In a notice, USTR said China "nearly doubled its global share of foundational logic semiconductors production capacity" in just six years.

China's share is set to reach about half the world's capacity by 2029, based on announced new fabrication plants, and this expansion "is already discouraging investment by market-oriented actors," USTR added.

Commerce Secretary Gina Raimondo said an analysis of the US semiconductor supply chain found two-thirds of US products contain Chinese-made foundational chips.

"About half of companies didn't know whether they had Chinese chips in their products," she added.

In recent years, President Joe Biden has sought to shore up US chipmaking capabilities to reduce reliance on other countries.&nbsp;

The latest probe will initially focus on China's foundational semiconductors production, including the extent these are used in other products like medical devices and vehicles.

The probe is also expected to consider whether Beijing's policies on inputs for semiconductor fabrication contribute to "burden or restriction on US commerce," the USTR's office said.

"This investigation is part of our broader strategy to strengthen the resilience of our supply chains and revitalize domestic manufacturing," said National Economic Advisor Lael Brainard.

Officials will have a year to handle the investigation and decide on responses.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience. 
&nbsp;

The United States said Monday it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies.

The United States said Monday it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies. The probe centres on foundational semiconductors -- which go into everything from cars to medical devices -- and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office. The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical US supply chains, and US economic security," the USTR's office added. Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices." The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products. "We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China. Previous instances included steel, aluminum, solar cells, electric vehicles, and now semiconductors, Tai told reporters on Sunday. "This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition," Tai added. Sector dominance In a notice, USTR said China "nearly doubled its global share of foundational logic semiconductors production capacity" in just six years. China's share is set to reach about half the world's capacity by 2029, based on announced new fabrication plants, and this expansion "is already discouraging investment by market-oriented actors," USTR added. Commerce Secretary Gina Raimondo said an analysis of the US semiconductor supply chain found two-thirds of US products contain Chinese-made foundational chips. "About half of companies didn't know whether they had Chinese chips in their products," she added. In recent years, President Joe Biden has sought to shore up US chipmaking capabilities to reduce reliance on other countries. The latest probe will initially focus on China's foundational semiconductors production, including the extent these are used in other products like medical devices and vehicles. The probe is also expected to consider whether Beijing's policies on inputs for semiconductor fabrication contribute to "burden or restriction on US commerce," the USTR's office said. "This investigation is part of our broader strategy to strengthen the resilience of our supply chains and revitalize domestic manufacturing," said National Economic Advisor Lael Brainard. Officials will have a year to handle the investigation and decide on responses. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Asian markets started the holiday-shortened Christmas week on a positive note. Investors focused on the potential merger between Japanese automakers Honda and Nissan, with reports revealing that both companies are entering discussions for business integration, with a final agreement expected in June 2025.

Honda-Nissan Merger on Investors Radar

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.

Key points

What's cheaper now?

- fortified rice kernels

- gene therapy

- food preparations for free distribution

- systems for long range surface-to-air missile assembly

- inspection equipment for atomic energy

- pepper &amp; raisins supplied by agriculturists

&nbsp;

what's expensive now?

- old &amp; used vehicle (including EVs)

- ready-to-eat popcorn

- autoclaved aerated concrete blocks

- sponsorship services by corporates

- penalty-only appeals

&nbsp;

Popcorns

For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn&nbsp;(mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect&nbsp;Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent.

Health Insurance

While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same.

Automotives &amp; EVs

The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller&nbsp;modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules.

Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent.

Adjustments on luxury &amp; essential goods

The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore&nbsp;annually. Meanwhile,&nbsp;the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses.

Aviation Fuel

According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today".

Construction and agricultural&nbsp;goods

ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/money-wise-planning-to-become-a-sip-expert-here-are-some-golden-rules-to-reap-profits-785260">Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits</a>

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made. Key points What's cheaper now? - fortified rice kernels - gene therapy - food preparations for free distribution - systems for long range surface-to-air missile assembly - inspection equipment for atomic energy - pepper & raisins supplied by agriculturists what's expensive now? - old & used vehicle (including EVs) - ready-to-eat popcorn - autoclaved aerated concrete blocks - sponsorship services by corporates - penalty-only appeals Popcorns For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent. Health Insurance While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same. Automotives & EVs The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules. Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent. Adjustments on luxury & essential goods The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses. Aviation Fuel According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today". Construction and agricultural goods ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST. Also read: Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits

As Bitcoin’s value continues to soar, luxury brands are seizing the opportunity to tap into this new pool of wealth. 
 
French luxury department store Printemps has partnered with the world’s largest crypto exchange, Binance, and financial tech company Lyzi to accept Bitcoin and Ethereum in its stores. 
 
This makes Printemps the first European department store to accept cryptocurrency payments.

With other luxury retailers like Gucci and Balenciaga already offering crypto payment options, the trend is gaining momentum, especially as more brands show interest in joining the movement. 
 
The luxury industry’s embrace of cryptocurrency is driven by the desire to innovate and appeal to a younger, tech-savvy clientele. 
 
Brands are expanding their payment options, allowing crypto payments in select stores. 
 
In fact, Gucci has been accepting Bitcoin and other cryptocurrencies for its products in the US since 2022.

This shift comes as high volatility and regulatory concerns around cryptocurrencies persist, but the growing support from figures like US President-elect Donald Trump is offering optimism for more stable e-currency regulation. 
 
Luxury goods like designer handbags and high-end watches are becoming attractive investment options for crypto investors. 
 
While cryptocurrency payments remain largely symbolic for many retailers, they serve as a branding tool for companies eager to position themselves as innovative. 
 
With younger and wealthier customers looking for ways to diversify their portfolios, Bitcoin has emerged as a viable method for purchasing luxury items. 
 
This signals a shift in both consumer behaviour and how brands are meeting the demands of a changing market.

(With inputs from the agencies)

As Bitcoin’s value continues to soar, luxury brands are seizing the opportunity to tap into this new pool of wealth. French luxury department store Printemps has partnered with the world’s largest crypto exchange, Binance, and financial tech company Lyzi to accept Bitcoin and Ethereum in its stores.

As Bitcoin’s value continues to soar, luxury brands are seizing the opportunity to tap into this new pool of wealth. French luxury department store Printemps has partnered with the world’s largest crypto exchange, Binance, and financial tech company Lyzi to accept Bitcoin and Ethereum in its stores. This makes Printemps the first European department store to accept cryptocurrency payments. With other luxury retailers like Gucci and Balenciaga already offering crypto payment options, the trend is gaining momentum, especially as more brands show interest in joining the movement. The luxury industry’s embrace of cryptocurrency is driven by the desire to innovate and appeal to a younger, tech-savvy clientele. Brands are expanding their payment options, allowing crypto payments in select stores. In fact, Gucci has been accepting Bitcoin and other cryptocurrencies for its products in the US since 2022. This shift comes as high volatility and regulatory concerns around cryptocurrencies persist, but the growing support from figures like US President-elect Donald Trump is offering optimism for more stable e-currency regulation. Luxury goods like designer handbags and high-end watches are becoming attractive investment options for crypto investors. While cryptocurrency payments remain largely symbolic for many retailers, they serve as a branding tool for companies eager to position themselves as innovative. With younger and wealthier customers looking for ways to diversify their portfolios, Bitcoin has emerged as a viable method for purchasing luxury items. This signals a shift in both consumer behaviour and how brands are meeting the demands of a changing market. (With inputs from the agencies)

Luxury brands embrace cryptocurrency payments as Bitcoin surges

The tech conflict between China and the United States is reaching a boiling point. This is leaving Bytedance with fewer and fewer choices for TikTok in the US.

The new reality, where more firms will be squeezed from both sides, is laid clear by mutual distrust and tit-for-tat hatred. 
 
As part of an investigation into a deal that Beijing authorised many years ago, Nvidia is now the focus of China's authorities. Washington strengthened chip sanctions on China this week. 
 
In response, Beijing stopped exports of certain minerals with tech uses to the US. This latest measure against Nvidia follows previous recent escalations. 
 
A key component of Ukraine's defence, drones are also being shut off from the US and Europe by China.

Last week, a federal appeals court in the United States upheld a statute that would have banned TikTok unless the company divested itself from its Chinese parent, Bytedance. 
 
That shows how supply chains are still linked. This makes Nvidia an intriguing new target for Beijing.

According to reports, Bytedance is apparently putting all of its eggs in the AI basket to find a growth engine to replace TikTok. This comes as Bytedance becomes Nvidia's biggest customer in China. 
 
To be relevant, Bytedance has expanded its focus beyond its short-form video platform. Now that the us drama has continued for years, the Chinese firm is in a hopeless situation.

Tech businesses with global ambitions will likely have to choose sides and stay in their lane now that the pandora's box is opened. The latest conflict sends a scary message to not become too big in the US. 
 
This comes at a time when other Chinese tech companies are seeking expansion overseas due to domestic spending cuts.

(With inputs from the agencies)

The tech conflict between China and the United States is reaching a boiling point. This is leaving Bytedance with fewer and fewer choices for TikTok in the US. The new reality, where more firms will be squeezed from both sides, is laid clear by mutual distrust and tit-for-tat hatred.

The tech conflict between China and the United States is reaching a boiling point. This is leaving Bytedance with fewer and fewer choices for TikTok in the US. The new reality, where more firms will be squeezed from both sides, is laid clear by mutual distrust and tit-for-tat hatred. As part of an investigation into a deal that Beijing authorised many years ago, Nvidia is now the focus of China's authorities. Washington strengthened chip sanctions on China this week. In response, Beijing stopped exports of certain minerals with tech uses to the US. This latest measure against Nvidia follows previous recent escalations. A key component of Ukraine's defence, drones are also being shut off from the US and Europe by China. Last week, a federal appeals court in the United States upheld a statute that would have banned TikTok unless the company divested itself from its Chinese parent, Bytedance. That shows how supply chains are still linked. This makes Nvidia an intriguing new target for Beijing. According to reports, Bytedance is apparently putting all of its eggs in the AI basket to find a growth engine to replace TikTok. This comes as Bytedance becomes Nvidia's biggest customer in China. To be relevant, Bytedance has expanded its focus beyond its short-form video platform. Now that the us drama has continued for years, the Chinese firm is in a hopeless situation. Tech businesses with global ambitions will likely have to choose sides and stay in their lane now that the pandora's box is opened. The latest conflict sends a scary message to not become too big in the US. This comes at a time when other Chinese tech companies are seeking expansion overseas due to domestic spending cuts. (With inputs from the agencies)

From TikTok to Nvidia, the US-China tech war is getting uglier

A Systematic Investment Plan or SIP has become one of the key investments in people's planning for their financial future and is believed to speed up the journey towards financial goals.&nbsp;

However, how simple an investment in SIP may sound, in reality, it involves some rules which can really up the game for the investors.&nbsp;

In this week's Money-Wise, we try to understand the golden rules for investing in SIP for building long-term wealth.&nbsp;

<h2>Rules of SIP</h2>

<h3>Rule 555</h3>

This triple 5 rule is best for planning retirement savings. The rule states that the investor should retire five years before stipulated retirement, increase SIP by 5 per cent every year, and aim to create a fund of Rs 52.8 million (approx. $620661) by the age of 55.

<h3>15x5x3 Rule</h3>

As per this rule, the principal amount should be invested in SIP for 15 years, and it should be then extended for the next 5 years and again extended for 3 years to churn a good profit.

<h3>18x15x12 Rule</h3>

This rule should be implemented when you are doing financial planning for your child. The rules say that the investment should be done before your child turns 18. The monthly SIP deduction ideally should be Rs 15,000 (approx. $176.32) and the investor should target a 12 per cent return.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/money-wise-sip-or-lumpsum-what-is-a-better-mutual-fund-investment-776245">Money-Wise | SIP or lumpsum: What is a better mutual fund investment?</a>

<h3>10x20x15 Rule</h3>

This rule advocates investing a monthly SIP of Rs 10,000 for 20 years and aiming for a 15 per cent return.

<h3>15x15x15 Rule</h3>

As per this rule, investors should invest in SIPs across 15 years an amount of Rs 15,000 monthly and target an annualised return of 15 per cent.&nbsp;

<h3>8-4-3 Rule</h3>

The 8-4-3&nbsp;rule demonstrates how a SIP grows through the years because of the power of compounding.&nbsp;

The rule says that the investments see steady growth in the first eight years and are likely to bring an average annual return of 12 per cent.&nbsp;

From the ninth to the twelfth year, the investment doubles and sees the same growth which took place in the last eight years because of the power of compounding.

Watch:&nbsp;Asian Stocks Edge Higher as Investors Focus on Fed's Next Move

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/asian-stocks-edge-higher-as-investors-focus-on-feds-next-move-784904/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

After the last three years, the SIP investment achieves exponential growth and once again doubles.

<h3>7-5-3-1 Rule&nbsp;</h3>

This rule says that equity investments generally perform well in seven years, and their profit-churning capacity can be further enhanced by distributing funds in five categories, which also mitigates concentrated risks.

Diversification of funds is important to bring stability to the investment and ensure growth in investment portfolios.&nbsp;

The investor can diversify funds in these categories: High-Quality Stocks (Large Cap Stocks), Value Stocks, GARP Stocks (Growth at Reasonable Price), Midcap or Small Cap Stocks and Global Stocks.&nbsp;

The number "3" stands for patience in dealing with low returns, minimum returns, and at times even negative returns when the market turns volatile.&nbsp;

And "1" refers to increasing the SIP amount for fighting the increasing inflation. A small increase in monthly SIP deductions can bring a big difference in profits.

A Systematic Investment Plan or SIP has become one of the key investments in people's planning for their financial future and is believed to speed up the journey towards financial goals.

A Systematic Investment Plan or SIP has become one of the key investments in people's planning for their financial future and is believed to speed up the journey towards financial goals. However, how simple an investment in SIP may sound, in reality, it involves some rules which can really up the game for the investors. In this week's Money-Wise, we try to understand the golden rules for investing in SIP for building long-term wealth. Rules of SIP Rule 555 This triple 5 rule is best for planning retirement savings. The rule states that the investor should retire five years before stipulated retirement, increase SIP by 5 per cent every year, and aim to create a fund of Rs 52.8 million (approx. $620661) by the age of 55. 15x5x3 Rule As per this rule, the principal amount should be invested in SIP for 15 years, and it should be then extended for the next 5 years and again extended for 3 years to churn a good profit. 18x15x12 Rule This rule should be implemented when you are doing financial planning for your child. The rules say that the investment should be done before your child turns 18. The monthly SIP deduction ideally should be Rs 15,000 (approx. $176.32) and the investor should target a 12 per cent return. Also Read: Money-Wise | SIP or lumpsum: What is a better mutual fund investment? 10x20x15 Rule This rule advocates investing a monthly SIP of Rs 10,000 for 20 years and aiming for a 15 per cent return. 15x15x15 Rule As per this rule, investors should invest in SIPs across 15 years an amount of Rs 15,000 monthly and target an annualised return of 15 per cent. 8-4-3 Rule The 8-4-3 rule demonstrates how a SIP grows through the years because of the power of compounding. The rule says that the investments see steady growth in the first eight years and are likely to bring an average annual return of 12 per cent. From the ninth to the twelfth year, the investment doubles and sees the same growth which took place in the last eight years because of the power of compounding. Watch: Asian Stocks Edge Higher as Investors Focus on Fed's Next Move After the last three years, the SIP investment achieves exponential growth and once again doubles. 7-5-3-1 Rule This rule says that equity investments generally perform well in seven years, and their profit-churning capacity can be further enhanced by distributing funds in five categories, which also mitigates concentrated risks. Diversification of funds is important to bring stability to the investment and ensure growth in investment portfolios. The investor can diversify funds in these categories: High-Quality Stocks (Large Cap Stocks), Value Stocks, GARP Stocks (Growth at Reasonable Price), Midcap or Small Cap Stocks and Global Stocks. The number "3" stands for patience in dealing with low returns, minimum returns, and at times even negative returns when the market turns volatile. And "1" refers to increasing the SIP amount for fighting the increasing inflation. A small increase in monthly SIP deductions can bring a big difference in profits.

Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits

New Delhi, India
A Systematic Investment Plan or SIP has become one of the key investments in people's planning for their financial future and is believed to speed up the journey towards financial goals. 
However, how simple an investment in SIP may sound, in reality, it involves some rules which can really up the game for the investors. 
In this week's Money-Wise, we try to understand the golden rules for investing in SIP for building long-term wealth. 
<h2>Rules of SIP</h2>
<h3>Rule 555</h3>
This triple 5 rule is best for planning retirement savings. The rule states that the investor should retire five years before stipulated retirement, increase SIP by 5 per cent every year, and aim to create a fund of Rs 52.8 million (approx. $620661) by the age of 55.
<h3>15x5x3 Rule</h3>
As per this rule, the principal amount should be invested in SIP for 15 years, and it should be then extended for the next 5 years and again extended for 3 years to churn a good profit.
<h3>18x15x12 Rule</h3>
This rule should be implemented when you are doing financial planning for your child. The rules say that the investment should be done before your child turns 18. The monthly SIP deduction ideally should be Rs 15,000 (approx. $176.32) and the investor should target a 12 per cent return.
Also Read: <a href="https://www.wionews.com/business-economy/money-wise-sip-or-lumpsum-what-is-a-better-mutual-fund-investment-776245">Money-Wise | SIP or lumpsum: What is a better mutual fund investment?</a>
<h3>10x20x15 Rule</h3>
This rule advocates investing a monthly SIP of Rs 10,000 for 20 years and aiming for a 15 per cent return.
<h3>15x15x15 Rule</h3>
As per this rule, investors should invest in SIPs across 15 years an amount of Rs 15,000 monthly and target an annualised return of 15 per cent. 
<h3>8-4-3 Rule</h3>
The 8-4-3 rule demonstrates how a SIP grows through the years because of the power of compounding. 
The rule says that the investments see steady growth in the first eight years and are likely to bring an average annual return of 12 per cent. 
From the ninth to the twelfth year, the investment doubles and sees the same growth which took place in the last eight years because of the power of compounding.
Watch: Asian Stocks Edge Higher as Investors Focus on Fed's Next Move
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://cdn.thepublive.com/wion/static/kaltura_player/wion_video_player_iframe.html?thumbnail=wion/media/post_attachments/files/2024/12/18/1802_wion_OIL_11AM-1734507616-00000003.jpg&videourl=https://vodakm.zeenews.com/vod/WION/1802_wion_OIL_11AM.mp4/index.m3u8&duration=141&tags=Asian Stocks,investors,stocks,business" style="width:100%;max-width:560px;" width="560"></iframe></div>
After the last three years, the SIP investment achieves exponential growth and once again doubles.
<h3>7-5-3-1 Rule </h3>
This rule says that equity investments generally perform well in seven years, and their profit-churning capacity can be further enhanced by distributing funds in five categories, which also mitigates concentrated risks.
Diversification of funds is important to bring stability to the investment and ensure growth in investment portfolios. 
The investor can diversify funds in these categories: High-Quality Stocks (Large Cap Stocks), Value Stocks, GARP Stocks (Growth at Reasonable Price), Midcap or Small Cap Stocks and Global Stocks. 
The number "3" stands for patience in dealing with low returns, minimum returns, and at times even negative returns when the market turns volatile. 
And "1" refers to increasing the SIP amount for fighting the increasing inflation. A small increase in monthly SIP deductions can bring a big difference in profits.

There are some golden rules in SIP investment which have the power to accelerate an investor's financial journey and reap more profits 

 



New Delhi, India A Systematic Investment Plan or SIP has become one of the key investments in people's planning for their financial future and is believed to speed up the journey towards financial goals. However, how simple an investment in SIP may sound, in reality, it involves some rules which can really up the game for the investors. In this week's Money-Wise, we try to understand the golden rules for investing in SIP for building long-term wealth. Rules of SIP Rule 555 This triple 5 rule is best for planning retirement savings. The rule states that the investor should retire five years before stipulated retirement, increase SIP by 5 per cent every year, and aim to create a fund of Rs 52.8 million (approx. $620661) by the age of 55. 15x5x3 Rule As per this rule, the principal amount should be invested in SIP for 15 years, and it should be then extended for the next 5 years and again extended for 3 years to churn a good profit. 18x15x12 Rule This rule should be implemented when you are doing financial planning for your child. The rules say that the investment should be done before your child turns 18. The monthly SIP deduction ideally should be Rs 15,000 (approx. $176.32) and the investor should target a 12 per cent return. Also Read: Money-Wise | SIP or lumpsum: What is a better mutual fund investment? 10x20x15 Rule This rule advocates investing a monthly SIP of Rs 10,000 for 20 years and aiming for a 15 per cent return. 15x15x15 Rule As per this rule, investors should invest in SIPs across 15 years an amount of Rs 15,000 monthly and target an annualised return of 15 per cent. 8-4-3 Rule The 8-4-3 rule demonstrates how a SIP grows through the years because of the power of compounding. The rule says that the investments see steady growth in the first eight years and are likely to bring an average annual return of 12 per cent. From the ninth to the twelfth year, the investment doubles and sees the same growth which took place in the last eight years because of the power of compounding. Watch: Asian Stocks Edge Higher as Investors Focus on Fed's Next Move After the last three years, the SIP investment achieves exponential growth and once again doubles. 7-5-3-1 Rule This rule says that equity investments generally perform well in seven years, and their profit-churning capacity can be further enhanced by distributing funds in five categories, which also mitigates concentrated risks. Diversification of funds is important to bring stability to the investment and ensure growth in investment portfolios. The investor can diversify funds in these categories: High-Quality Stocks (Large Cap Stocks), Value Stocks, GARP Stocks (Growth at Reasonable Price), Midcap or Small Cap Stocks and Global Stocks. The number "3" stands for patience in dealing with low returns, minimum returns, and at times even negative returns when the market turns volatile. And "1" refers to increasing the SIP amount for fighting the increasing inflation. A small increase in monthly SIP deductions can bring a big difference in profits.

Washington
The US economy expanded faster in the third quarter than originally estimated, according to government data released Thursday, despite analysts' expectations that growth would remain unchanged.
The world's biggest economy grew at an annual rate of 3.1 per cent in the July-September period, up from earlier estimates of 2.8 per cent, the Commerce Department said.
This was due to "upward revisions to exports and consumer spending," the report said, although it noted that the increase was partially offset by a downward revision to private inventory investment.
Also read | <a href="https://www.wionews.com/business-economy/uk-economy-shrinks-again-in-october-raising-recession-fears-784109">UK economy shrinks again in October, raising recession fears</a>
In the second quarter, GDP growth was 3.0 per cent.
The US economy has shown resilience even as consumers drew down on savings from the COVID-19 pandemic period and grappled with higher interest rates as the Federal Reserve battled to rein in inflation.
Consumer spending in particular has been a key factor behind growth—even as Americans felt the pinch from higher costs of living—supported by a relatively healthy jobs market.
"Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending," the Commerce Department said on Thursday.
A consensus estimate pegged third quarter GDP growth at 2.8 per cent initially, unchanged from before, according to Briefing.com.
Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The world's biggest economy grew at an annual rate of 3.1 per cent in the July-September period, up from earlier estimates of 2.8 per cent, the Commerce Department said.



Washington The US economy expanded faster in the third quarter than originally estimated, according to government data released Thursday, despite analysts' expectations that growth would remain unchanged. The world's biggest economy grew at an annual rate of 3.1 per cent in the July-September period, up from earlier estimates of 2.8 per cent, the Commerce Department said. This was due to "upward revisions to exports and consumer spending," the report said, although it noted that the increase was partially offset by a downward revision to private inventory investment. Also read | UK economy shrinks again in October, raising recession fears In the second quarter, GDP growth was 3.0 per cent. The US economy has shown resilience even as consumers drew down on savings from the COVID-19 pandemic period and grappled with higher interest rates as the Federal Reserve battled to rein in inflation. Consumer spending in particular has been a key factor behind growth—even as Americans felt the pinch from higher costs of living—supported by a relatively healthy jobs market. "Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending," the Commerce Department said on Thursday. A consensus estimate pegged third quarter GDP growth at 2.8 per cent initially, unchanged from before, according to Briefing.com. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

US economy expanded faster in third quarter than originally estimated: Data

Bitcoin’s soaring value has caught the attention of high-end fashion brands and retailers, prompting further interest in offering cryptocurrencies as a means of payment to tap into fresh pockets of wealth and build loyalty with crypto investors.&nbsp;

Until recently, only a handful of luxury brands including LVMH watch labels Hublot and Tag Heuer as well as Kering-owned fashion brands Gucci and Balenciaga have experimented with crypto payment offers.

In recent weeks, upscale French luxury department store Printemps announced it was teaming up with the world’s largest crypto exchange, Binance, and French financial tech company Lyzi to accept cryptocurrencies including bitcoin and ethereum in its stores in France – becoming the first European department store to do so. The move, coming as bitcoin rises, has been noticed by other brands and retailers who are showing interest in joining in.

“There have been quite a few calls – it’s generated interest,” said David Princay, president of Binance France, who said the company is in talks with other luxury labels.

Luxury lighter and pen maker S.T. Dupont told Reuters it aims to accept cryptocurrency payments in two Paris stores before the holidays.

<a href="https://www.wionews.com/business-economy/bitcoin-hits-106000-amid-trumps-pro-crypto-push-784305">Also read:&nbsp;Bitcoin hits $106,000 amid Trump’s pro-crypto push</a>

In the realm of experiences, cruise company Virgin Voyages began this month offering its first product accepting Bitcoin as a payment option – a $120,000 annual pass for up to a year of sailing on its cruise ships.

Regulators have long warned that cryptocurrencies like bitcoin are high-risk assets, with limited uses in the real world. High volatility has been another barrier to wide adoption as a means of payment.

But pledges of support from U.S. President-elect Donald Trump, who is expected to bring in more friendly e-currency regulation, have fueled record-breaking rises for Bitcoin. S&amp;P analysts say the narrative is starting to shift, noting that blockchain innovation in financial markets could increase predictability for cryptocurrencies.

<h2>Seeking innovative branding</h2>

Luxury labels have long sought to cater to affluent shoppers from the tech industry by opening stores in upscale Silicon Valley malls and issuing products like the Hermes Apple Watch, for example, which combines signature, stitched leather straps of the French Birkin bag maker with tech giant Apple’s connected timepiece.&nbsp;

Now, the new wealth generated by Bitcoin’s recent highs – topping $107,000 on Monday – comes as the luxury industry faces its biggest slump in years and searches for new sources of growth.

Offering cryptocurrency payments can be a way for companies to brand themselves as innovative rather than “a stuffy old brand that’s only selling to the boomers,” said Andrew O’Neill, digital assets lead analyst at S&amp;P Global Ratings.

The payment option remains largely symbolic. Retailers usually reconvert the funds to euros or dollars to offset risks of volatility, while for most shoppers, payment methods are seen overall as “something that’s been solved” already by such transaction platforms as PayPal or Venmo, said O’Neill.&nbsp;

Watch |&nbsp;Bitcoin Smashes Records as Trump Signals Strategic Reserve Plans

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But for bitcoin investors who have seen a strong rise in the value of their investment, luxury goods – a designer handbag or high-end watch – are an obvious choice for diversifying one’s portfolio, analysts say.

In a sign of growing interest from designer labels, Balenciaga recently issued a leather card holder designed to hold “Stax” hardware from crypto wallet company Ledger. The black leather accessory, which retails for 350 euros ($368), includes a keychain and Eiffel Tower charm, and an NFC chip fitted underneath the brand logo. Ledger’s Stax Crypto hardware, its recently developed higher-end hardware with a curved touch screen, sells for $399 at Best Buy . The company’s “Flex” hardware, which resembles a mini Amazon Kindle, sells for $249 while the “Nano” version, which looks like a USB key, sells for $79.&nbsp;

Gregory Boutte, chief client and digital officer for luxury conglomerate Kering, has described the group’s strategy when it comes to technology as “test and learn” rather than “wait and see.” He emphasized the embrace of new technologies as key to reaching younger and Asian clientele.

Kering’s star label, Gucci, has since 2022 made purchases available through 10 cryptocurrencies for most of its products in the United States.&nbsp;

Printemps is working to expand its crypto payments service to New York City, where it plans to open a multibrand retailer in the Wall Street district in March.

Bitcoin’s rise in late 2021 prompted an initial flurry of interest from luxury brands with Tag Heuer, headed at the time by LVMH luxury scion Frederic Arnault, as well as Gucci, accepting payments in cryptocurrency the following year for some purchases in the United States.&nbsp;

One crypto advocate who recently used digital assets to make luxury purchases is Eunice Wong, an investor and influencer known as “Eunicorn.”

Wong said she used cryptocurrency to buy several high-end watches this year including an Audemars Piguet Royal Oak model. However she is not interested in being drawn in by high-end brands seeking to build a closer client relationship, preferring to bypass traditional retail stores and sales routines. That takes too much time, in her view. “If I will buy, I’ll buy on the secondary market, not through them,” she told Reuters. “I want it now.”

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience.

Bitcoin’s soaring value has caught the attention of high-end fashion brands and retailers, prompting further interest in offering cryptocurrencies as a means of payment to tap into fresh pockets of wealth and build loyalty with crypto investors.

Bitcoin’s soaring value has caught the attention of high-end fashion brands and retailers, prompting further interest in offering cryptocurrencies as a means of payment to tap into fresh pockets of wealth and build loyalty with crypto investors. Until recently, only a handful of luxury brands including LVMH watch labels Hublot and Tag Heuer as well as Kering-owned fashion brands Gucci and Balenciaga have experimented with crypto payment offers. In recent weeks, upscale French luxury department store Printemps announced it was teaming up with the world’s largest crypto exchange, Binance, and French financial tech company Lyzi to accept cryptocurrencies including bitcoin and ethereum in its stores in France – becoming the first European department store to do so. The move, coming as bitcoin rises, has been noticed by other brands and retailers who are showing interest in joining in. “There have been quite a few calls – it’s generated interest,” said David Princay, president of Binance France, who said the company is in talks with other luxury labels. Luxury lighter and pen maker S.T. Dupont told Reuters it aims to accept cryptocurrency payments in two Paris stores before the holidays. Also read: Bitcoin hits $106,000 amid Trump’s pro-crypto push In the realm of experiences, cruise company Virgin Voyages began this month offering its first product accepting Bitcoin as a payment option – a $120,000 annual pass for up to a year of sailing on its cruise ships. Regulators have long warned that cryptocurrencies like bitcoin are high-risk assets, with limited uses in the real world. High volatility has been another barrier to wide adoption as a means of payment. But pledges of support from U.S. President-elect Donald Trump, who is expected to bring in more friendly e-currency regulation, have fueled record-breaking rises for Bitcoin. S&P analysts say the narrative is starting to shift, noting that blockchain innovation in financial markets could increase predictability for cryptocurrencies. Seeking innovative branding Luxury labels have long sought to cater to affluent shoppers from the tech industry by opening stores in upscale Silicon Valley malls and issuing products like the Hermes Apple Watch, for example, which combines signature, stitched leather straps of the French Birkin bag maker with tech giant Apple’s connected timepiece. Now, the new wealth generated by Bitcoin’s recent highs – topping $107,000 on Monday – comes as the luxury industry faces its biggest slump in years and searches for new sources of growth. Offering cryptocurrency payments can be a way for companies to brand themselves as innovative rather than “a stuffy old brand that’s only selling to the boomers,” said Andrew O’Neill, digital assets lead analyst at S&P Global Ratings. The payment option remains largely symbolic. Retailers usually reconvert the funds to euros or dollars to offset risks of volatility, while for most shoppers, payment methods are seen overall as “something that’s been solved” already by such transaction platforms as PayPal or Venmo, said O’Neill. Watch | Bitcoin Smashes Records as Trump Signals Strategic Reserve Plans × But for bitcoin investors who have seen a strong rise in the value of their investment, luxury goods – a designer handbag or high-end watch – are an obvious choice for diversifying one’s portfolio, analysts say. In a sign of growing interest from designer labels, Balenciaga recently issued a leather card holder designed to hold “Stax” hardware from crypto wallet company Ledger. The black leather accessory, which retails for 350 euros ($368), includes a keychain and Eiffel Tower charm, and an NFC chip fitted underneath the brand logo. Ledger’s Stax Crypto hardware, its recently developed higher-end hardware with a curved touch screen, sells for $399 at Best Buy . The company’s “Flex” hardware, which resembles a mini Amazon Kindle, sells for $249 while the “Nano” version, which looks like a USB key, sells for $79. Gregory Boutte, chief client and digital officer for luxury conglomerate Kering, has described the group’s strategy when it comes to technology as “test and learn” rather than “wait and see.” He emphasized the embrace of new technologies as key to reaching younger and Asian clientele. Kering’s star label, Gucci, has since 2022 made purchases available through 10 cryptocurrencies for most of its products in the United States. Printemps is working to expand its crypto payments service to New York City, where it plans to open a multibrand retailer in the Wall Street district in March. Bitcoin’s rise in late 2021 prompted an initial flurry of interest from luxury brands with Tag Heuer, headed at the time by LVMH luxury scion Frederic Arnault, as well as Gucci, accepting payments in cryptocurrency the following year for some purchases in the United States. One crypto advocate who recently used digital assets to make luxury purchases is Eunice Wong, an investor and influencer known as “Eunicorn.” Wong said she used cryptocurrency to buy several high-end watches this year including an Audemars Piguet Royal Oak model. However she is not interested in being drawn in by high-end brands seeking to build a closer client relationship, preferring to bypass traditional retail stores and sales routines. That takes too much time, in her view. “If I will buy, I’ll buy on the secondary market, not through them,” she told Reuters. “I want it now.” Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Luxury brands to consider accepting crypto payments as bitcoin soars

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.

Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.

Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation.

However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September.

Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent."

The market's reaction to the Fed's revised forecast was rapid and severe.

The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&amp;P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent.

Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell.

Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September.&nbsp;

(With inputs from the agencies)

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday.

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves. Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective. Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation. However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September. Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent." The market's reaction to the Fed's revised forecast was rapid and severe. The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent. Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell. Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. (With inputs from the agencies)

Fed's rate cut sparks inflation concerns, market selloff

New Delhi
After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.
Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.
Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation.
However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September.
Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent."
The market's reaction to the Fed's revised forecast was rapid and severe.
The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&amp;P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent.
Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell.
Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. 
(With inputs from the agencies)

Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.



New Delhi After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves. Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective. Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation. However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September. Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent." The market's reaction to the Fed's revised forecast was rapid and severe. The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent. Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell. Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. (With inputs from the agencies)

The US economy expanded faster in the third quarter than originally estimated, according to government data released Thursday, despite analysts' expectations that growth would remain unchanged.

The world's biggest economy grew at an annual rate of 3.1 per cent in the July-September period, up from earlier estimates of 2.8 per cent, the Commerce Department said.

This was due to "upward revisions to exports and consumer spending," the report said, although it noted that the increase was partially offset by a downward revision to private inventory investment.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/uk-economy-shrinks-again-in-october-raising-recession-fears-784109">UK economy shrinks again in October, raising recession fears</a>

In the second quarter, GDP growth was 3.0 per cent.

The US economy has shown resilience even as consumers drew down on savings from the COVID-19 pandemic period and grappled with higher interest rates as the Federal Reserve battled to rein in inflation.

Consumer spending in particular has been a key factor behind growth—even as Americans felt the pinch from higher costs of living—supported by a relatively healthy jobs market.

"Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending," the Commerce Department said on Thursday.

A consensus estimate pegged third quarter GDP growth at 2.8 per cent initially, unchanged from before, according to Briefing.com.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience. 
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The US economy expanded faster in the third quarter than originally estimated, according to government data released Thursday, despite analysts' expectations that growth would remain unchanged.

The US economy expanded faster in the third quarter than originally estimated, according to government data released Thursday, despite analysts' expectations that growth would remain unchanged. The world's biggest economy grew at an annual rate of 3.1 per cent in the July-September period, up from earlier estimates of 2.8 per cent, the Commerce Department said. This was due to "upward revisions to exports and consumer spending," the report said, although it noted that the increase was partially offset by a downward revision to private inventory investment. Also read | UK economy shrinks again in October, raising recession fears In the second quarter, GDP growth was 3.0 per cent. The US economy has shown resilience even as consumers drew down on savings from the COVID-19 pandemic period and grappled with higher interest rates as the Federal Reserve battled to rein in inflation. Consumer spending in particular has been a key factor behind growth—even as Americans felt the pinch from higher costs of living—supported by a relatively healthy jobs market. "Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending," the Commerce Department said on Thursday. A consensus estimate pegged third quarter GDP growth at 2.8 per cent initially, unchanged from before, according to Briefing.com. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.