Shell has decided to 'evaluate' $30 billion British investment amid a windfall tax on oil produces. UK's economy is on a downward spiral. Watch this report.

World Business Watch: Shell to 'evaluate' $30 billion British investment

Oil&nbsp;prices&nbsp;dropped to trade near two-month lows on Monday, having earlier slid by around $1 a barrel, as supply fears receded while concerns over fuel demand from China and US&nbsp;dollar strength weighed on&nbsp;prices.

Brent crude futures for January had slipped 74 cents, or 0.8 per cent, to $86.88 a barrel by 0715 GMT.

US&nbsp;West Texas Intermediate (WTI) crude futures for December were at $79.40 a barrel, down 68 cents or 0.9 per cent, ahead of the contract's expiry later on Monday. The more active January contract last fell 59 cents or 0.7 per cent&nbsp;to $79.52 a barrel.

Both benchmarks closed Friday at their lowest since Sept. 27, extending losses for a second week, with Brent down 9 per cent&nbsp;and WTI 10 per cent&nbsp;lower.

<a href="http://13.235.153.162/world/global-economy-live-ftx-owes-nearly-31-billion-to-top-50-creditors-535920">Also read |&nbsp;Global Economy LIVE | India's growth to slow down in 2023: Goldman Sachs</a>

"Apart from the weakened demand outlook due to China's Covid&nbsp;curbs, a rebound in the U.S. dollar today is also a bearish factor for&nbsp;oil&nbsp;prices," said Tina Teng, a CMC Markets analyst.

"Risk sentiment becomes fragile as all the recent major countries' economic data point to a recessionary scenario, especially in the UK&nbsp;and euro zone," she said, adding that hawkish comments from the US&nbsp;Federal Reserve last week also sparked concerns over the U.S. economic outlook.

New Covid&nbsp;case numbers in China remained close to April peaks as the country battles outbreaks nationwide and in major cities. Schools across some districts in the capital Beijing buckled down for online classes on Monday after officials asked residents to stay home, while the southern city of Guangzhou ordered a five-day lockdown for its most populous district.

The front-month Brent crude futures spread narrowed sharply last week while WTI flipped into a contango, reflecting dwindling supply concerns.

Meanwhile, tight crude supplies in Europe have eased as refiners have piled up stocks ahead of the Dec. 5 European Union embargo on Russian crude, putting pressure on physical crude markets across Europe, Africa and the United States.

The EU's energy policy chief told Reuters the EU expected to have its regulations completed in time for the introduction of a G7 plan to cap the price of Russian crude on Dec. 5.

<a href="http://13.235.153.162/business-economy/britain-is-no-longer-europes-biggest-stock-market-paris-takes-the-crown-534386">Also read |&nbsp;Britain is no longer Europe's biggest stock market; Paris takes the crown</a>

RBC Capital analyst Mike Tran said the weak December WTI contract expiration indicated paper market selling rather than true physical market softness.

"Tight global inventories do not support the traditional surplus of barrels rationale for contango," he said in a note.

While the North Sea and West African spot market indicators are far from strong, they are also not suggesting signs of distress, he added.

Diesel markets remained tight, with Europe and the United States competing for barrels. While China nearly doubled its diesel exports in October from a year earlier to 1.06 million tonnes, the volume was well below September's 1.73 million tonnes.

Demand in China, the world's top crude importer, remains bogged down by Covid restrictions while expectations of further interest rate rises elsewhere have elevated the greenback, making dollar-denominated commodities more expensive for investors.

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Oil prices dropped to trade near two-month lows on Monday, having earlier slid by around $1 a barrel, as supply fears receded while concerns over fuel demand from China and US dollar strength weighed on prices.

Oil prices dropped to trade near two-month lows on Monday, having earlier slid by around $1 a barrel, as supply fears receded while concerns over fuel demand from China and US dollar strength weighed on prices. Brent crude futures for January had slipped 74 cents, or 0.8 per cent, to $86.88 a barrel by 0715 GMT. US West Texas Intermediate (WTI) crude futures for December were at $79.40 a barrel, down 68 cents or 0.9 per cent, ahead of the contract's expiry later on Monday. The more active January contract last fell 59 cents or 0.7 per cent to $79.52 a barrel. Both benchmarks closed Friday at their lowest since Sept. 27, extending losses for a second week, with Brent down 9 per cent and WTI 10 per cent lower. Also read | Global Economy LIVE | India's growth to slow down in 2023: Goldman Sachs "Apart from the weakened demand outlook due to China's Covid curbs, a rebound in the U.S. dollar today is also a bearish factor for oil prices," said Tina Teng, a CMC Markets analyst. "Risk sentiment becomes fragile as all the recent major countries' economic data point to a recessionary scenario, especially in the UK and euro zone," she said, adding that hawkish comments from the US Federal Reserve last week also sparked concerns over the U.S. economic outlook. New Covid case numbers in China remained close to April peaks as the country battles outbreaks nationwide and in major cities. Schools across some districts in the capital Beijing buckled down for online classes on Monday after officials asked residents to stay home, while the southern city of Guangzhou ordered a five-day lockdown for its most populous district. The front-month Brent crude futures spread narrowed sharply last week while WTI flipped into a contango, reflecting dwindling supply concerns. Meanwhile, tight crude supplies in Europe have eased as refiners have piled up stocks ahead of the Dec. 5 European Union embargo on Russian crude, putting pressure on physical crude markets across Europe, Africa and the United States. The EU's energy policy chief told Reuters the EU expected to have its regulations completed in time for the introduction of a G7 plan to cap the price of Russian crude on Dec. 5. Also read | Britain is no longer Europe's biggest stock market; Paris takes the crown RBC Capital analyst Mike Tran said the weak December WTI contract expiration indicated paper market selling rather than true physical market softness. "Tight global inventories do not support the traditional surplus of barrels rationale for contango," he said in a note. While the North Sea and West African spot market indicators are far from strong, they are also not suggesting signs of distress, he added. Diesel markets remained tight, with Europe and the United States competing for barrels. While China nearly doubled its diesel exports in October from a year earlier to 1.06 million tonnes, the volume was well below September's 1.73 million tonnes. Demand in China, the world's top crude importer, remains bogged down by Covid restrictions while expectations of further interest rate rises elsewhere have elevated the greenback, making dollar-denominated commodities more expensive for investors. WATCH WION LIVE HERE

Oil prices ease to trade near two-month lows on China demand fears, dollar strength

Collapsed crypto exchange FTX said on Saturday that it has started a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation. Together with around 101 associated companies, FTX also requested judicial intervention to permit the functioning of a new worldwide cash management system and payment to its essential suppliers. In one of the most publicised cryptocurrency meltdowns, the exchange and its affiliates filed for bankruptcy in Delaware on November 11. As a result, an estimated million clients and other investors are expected to suffer total losses in billions of dollars.

In a court document filed on Saturday, FTX requested authorisation to pay its crucial vendors up to $17.5 million in prepetition claims and up to $9.3 million in interim orders.

The exchange said that if the requested judicial injunction is not granted, it will cause "immediate and irreparable damage" to its operations.

Also read |&nbsp;<a href="https://www.wionews.com/entertainment/hollywood/news-how-ftx-bought-its-way-to-become-the-most-regulated-crypto-exchange-535241">How FTX bought its way to become the 'most regulated' crypto exchange</a>

"Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises," FTX's new Chief Executive Officer John Ray said.

In order to assist with the selling process, the business, subject to court approval, has named Perella Weinberg Partners LP as its main investment bank.

Also WATCH |&nbsp;Twitter faces questions on security breach; agency to probe unfair business practices

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"I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from putting in place prior to filing our chapter 11 cases," Ray said.

(With inputs from agencies)

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Collapsed crypto exchange FTX said on Saturday that it has started a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation.

Collapsed crypto exchange FTX said on Saturday that it has started a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation. Together with around 101 associated companies, FTX also requested judicial intervention to permit the functioning of a new worldwide cash management system and payment to its essential suppliers. In one of the most publicised cryptocurrency meltdowns, the exchange and its affiliates filed for bankruptcy in Delaware on November 11. As a result, an estimated million clients and other investors are expected to suffer total losses in billions of dollars. In a court document filed on Saturday, FTX requested authorisation to pay its crucial vendors up to $17.5 million in prepetition claims and up to $9.3 million in interim orders. The exchange said that if the requested judicial injunction is not granted, it will cause "immediate and irreparable damage" to its operations. Also read | How FTX bought its way to become the 'most regulated' crypto exchange "Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises," FTX's new Chief Executive Officer John Ray said. In order to assist with the selling process, the business, subject to court approval, has named Perella Weinberg Partners LP as its main investment bank. Also WATCH | Twitter faces questions on security breach; agency to probe unfair business practices "I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from putting in place prior to filing our chapter 11 cases," Ray said. (With inputs from agencies) WATCH WION LIVE HERE:

FTX conducts strategic assessment; requests judicial relief to pay important vendors

As the rising cost of living eats away at people's wages, the UK is experiencing its largest reduction in living standards ever.&nbsp;

After accounting for growing costs, the government's forecaster predicted that household incomes would decline by 7 per cent&nbsp;over the following few years.&nbsp;

Additionally, it anticipates a spike in unemployment of more than 500,000 people.&nbsp;

The chancellor just declared that the UK was already in a recession and was likely to get worse the next year.

However, Jeremy Hunt said that the tax increases and spending cuts he announced in his Autumn Statement, totalling £55 billion, will result in a "shallower downturn" and fewer job losses.&nbsp;

The government's energy price guarantee programme, which lowers bills, is largely to blame for the forecaster's prediction that price increases will peak at 11 per cent&nbsp;in the last three months of this year.&nbsp;

It nonetheless predicted that inflation would "erode real wages and reduce living standards" this year by the largest amount since records began in 1956.&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/jeremy-hunt-to-unveil-uk-autumn-budget-today-after-liz-truss-failed-experiment-534990">Chancellor Jeremy Hunt announces tax hikes, spending squeeze in £55 billion autumn budget</a>

It anticipates that after accounting for inflation, household earnings will return to where they were in 2013. The recovery process will take another six years, but by 2028, they will still be "over 1 per cent&nbsp;below pre-pandemic levels."

The Office for Budget Responsibility (OBR) claims that the UK is also experiencing problems with rising interest rates, which the Bank of England has increased to 3 per cent&nbsp;in an effort to combat inflation.&nbsp;

Due to rising mortgage expenses, it is also anticipated that house values will decrease by around 9 per cent&nbsp;over the next two years.

(with inputs from agencies)

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As the rising cost of living eats away at people's wages, the UK is experiencing its largest reduction in living standards ever. After accounting for growing costs, the government's forecaster predicted that household incomes would decline by 7 per cent over the following few years.

As the rising cost of living eats away at people's wages, the UK is experiencing its largest reduction in living standards ever. After accounting for growing costs, the government's forecaster predicted that household incomes would decline by 7 per cent over the following few years. Additionally, it anticipates a spike in unemployment of more than 500,000 people. The chancellor just declared that the UK was already in a recession and was likely to get worse the next year. However, Jeremy Hunt said that the tax increases and spending cuts he announced in his Autumn Statement, totalling £55 billion, will result in a "shallower downturn" and fewer job losses. The government's energy price guarantee programme, which lowers bills, is largely to blame for the forecaster's prediction that price increases will peak at 11 per cent in the last three months of this year. It nonetheless predicted that inflation would "erode real wages and reduce living standards" this year by the largest amount since records began in 1956. Also Read: Chancellor Jeremy Hunt announces tax hikes, spending squeeze in £55 billion autumn budget It anticipates that after accounting for inflation, household earnings will return to where they were in 2013. The recovery process will take another six years, but by 2028, they will still be "over 1 per cent below pre-pandemic levels." The Office for Budget Responsibility (OBR) claims that the UK is also experiencing problems with rising interest rates, which the Bank of England has increased to 3 per cent in an effort to combat inflation. Due to rising mortgage expenses, it is also anticipated that house values will decrease by around 9 per cent over the next two years. (with inputs from agencies)

Economy already in recession and set to shrink further next year: UK chancellor

UK Finance Minister Jeremy Hunt has asked Britons to be ready to pay more taxes. He plans to raise taxes & cut spending to fix UK's stagnant economy. Which other countries are in an economic mess?

Gravitas: UK set to raise taxes & cut spending

Japan's economy has unexpectedly shrank in the third quarter. The impact of high inflation, weak yen, and the soaring price of commodities have weighed on the country.

World Business Watch: High inflation, weakening Yen slows down Japan's economy

There is a gloomy shadow of a global recession. Europe is reeling under a cost of living crisis, the U.S is battling soaring inflation, there are massive job cuts across sectors of the tech industry, and the bubble may be bursting but the Rich and Famous have a different worry. Watch this report to find out.

Are Richie-Rich recession-proof? Economies slowing down, but not the Rich

Amid the ongoing economic hardships in the UK, London has lost EU's stock market crown to Paris. UK economy shrank by 0.2% in the third quarter.

London loses EU's stock market crown to Paris

The new UK government issued a warning on Sunday (November 13) about the upcoming tax increase, particularly for the wealthy ones, as the administration aims to repair the economic damage caused by the Truss administration.&nbsp;

The administration is expected to release an emergency budget on Thursday.&nbsp;

<a href="https://www.wionews.com/world/new-plan-by-uk-pm-sunak-and-jeremy-hunt-will-make-over-200000-britishers-to-pay-tax-533641">Also read |&nbsp;New plan by UK PM Sunak and Jeremy Hunt will make over 200,000 Britishers pay tax</a>

Jeremy Hunt, the finance minister, warned that the damage will disproportionately be on the better off when he'll unveil the budget, Sky News reported. After Truss' tax-cutting budget sparked alarm in the financial markets, he said, "We're all going to be paying a bit more tax, I'm afraid."

He acknowledged that the country's economy is likely to be in recession due to the July-September quarter, "but we are a resilient country and we've faced much bigger challenges, frankly, in our history".

"We will be asking everyone for sacrifices."

The finance minister is currently looking for revising the income tax bands in order to increase money from incomes and by imposing strict curbs on government spending. he is seeking to collect £60 billion ($71 billion) in savings and extra revenue.

<a href="https://www.wionews.com/world/former-pm-liz-trusss-mini-budget-cost-the-uk-exchequer-35-billion-report-533680">Also read |&nbsp;Former PM Liz Truss's mini-budget cost the UK exchequer $35 billion: Report</a>

Hunt said that the increase in energy costs brought on by the Ukraine conflict cost the economy £140 billion.

Not just the energy prices, the country is also struggling with calming the medical professionals. Hunt recently denied a 17 per cent salary demand by the largest nursing union in the country, which decided to go on a strike for the first time since its existence. Hunt said that if the administration agrees to increase everyone's wage, then the inflation would continue.&nbsp;

Rishi Suank, the current prime minister, has committed to get the spiralling inflation under control.&nbsp;

(With inputs from agencies)

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The new UK government issued a warning on Sunday (November 13) about the upcoming tax increase, particularly for the wealthy ones, as the administration aims to repair the economic damage caused by the Truss administration.

The new UK government issued a warning on Sunday (November 13) about the upcoming tax increase, particularly for the wealthy ones, as the administration aims to repair the economic damage caused by the Truss administration. The administration is expected to release an emergency budget on Thursday. Also read | New plan by UK PM Sunak and Jeremy Hunt will make over 200,000 Britishers pay tax Jeremy Hunt, the finance minister, warned that the damage will disproportionately be on the better off when he'll unveil the budget, Sky News reported. After Truss' tax-cutting budget sparked alarm in the financial markets, he said, "We're all going to be paying a bit more tax, I'm afraid." He acknowledged that the country's economy is likely to be in recession due to the July-September quarter, "but we are a resilient country and we've faced much bigger challenges, frankly, in our history". "We will be asking everyone for sacrifices." The finance minister is currently looking for revising the income tax bands in order to increase money from incomes and by imposing strict curbs on government spending. he is seeking to collect £60 billion ($71 billion) in savings and extra revenue. Also read | Former PM Liz Truss's mini-budget cost the UK exchequer $35 billion: Report Hunt said that the increase in energy costs brought on by the Ukraine conflict cost the economy £140 billion. Not just the energy prices, the country is also struggling with calming the medical professionals. Hunt recently denied a 17 per cent salary demand by the largest nursing union in the country, which decided to go on a strike for the first time since its existence. Hunt said that if the administration agrees to increase everyone's wage, then the inflation would continue. Rishi Suank, the current prime minister, has committed to get the spiralling inflation under control. (With inputs from agencies) WATCH WION LIVE HERE

UK Finance Minister Jeremy Hunt warns of tax hikes to cope with inflation after Truss fiasco

The International Monetary Fund said on Sunday that the global economic outlook is even gloomier than projected last month. It cited a steady worsening in purchasing manager surveys in recent months

WION Business News | Global economic outlook getting `gloomier`, says IMF

Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict.&nbsp;

To help Bangladesh cope with soaring prices,&nbsp;the International Monetary Fund (IMF) on Wednesday announced $4.5 billion in assistance for the Asian country.

IMF team leader Rahul said, " Bangladesh's robust economic recovery from the pandemic has been interrupted by Russia's war in Ukraine, leading to a sharp widening of the current account deficit, the rapid decline of foreign exchange reserves, rising inflation and slowing growth."

<a href="https://www.wionews.com/south-asia/imran-khan-compares-himself-to-mujibur-rehman-bangladeshs-founding-father-530544">Also read |&nbsp;Imran Khan compares himself to Bangladesh's founding father Mujibur Rehman</a>

The 170 million people nation requested assistance earlier this year, followed by a $4.5 billion deal for its 'economic objectives.' As per the official stats, the country's inflation rate is near 10 per cent, however, many independent analysts claimed the rate to be easily around 20 per cent, AFP reported.&nbsp;&nbsp;

The IMF loan will mostly be used to bolster Bangladesh's foreign exchange reserves which drastically fell from $46 billion to $34 billion. The currency has lost nearly 25 per cent to the US dollar in the past few months.&nbsp;

<a href="https://www.wionews.com/south-asia/bangladesh-cyclone-sitrang-lashes-country-claiming-16-lives-528272">Also read |&nbsp;Bangladesh: Cyclone Sitrang lashes country claiming 24 lives</a>

Bangladesh is unable to buy fossil fuels due to currency depreciation. To preserve the existing supplies, PM Sheikh Hasina has announced to shut down diesel pants, and implemented long power outages for up to 13 hours a day. These outages have provoked protests. A recent police raid claimed the lives of three people and injured over 100 people.&nbsp;

By 2031, the country aims to move ahead of its designation as a 'Least Developed Country' and be counted among 'middle-income countries.'

Bangladesh will also advocate for major climate actions and look for more funding. Sri Lanka, another South Asian country falls under the category and has asked for IMF assistance because of the economic crisis the country has been facing.&nbsp;

(With inputs from agencies)

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Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict. To help Bangladesh cope with soaring prices, the International Monetary Fund (IMF) on Wednesday announced $4.

Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict. To help Bangladesh cope with soaring prices, the International Monetary Fund (IMF) on Wednesday announced $4.5 billion in assistance for the Asian country. IMF team leader Rahul said, " Bangladesh's robust economic recovery from the pandemic has been interrupted by Russia's war in Ukraine, leading to a sharp widening of the current account deficit, the rapid decline of foreign exchange reserves, rising inflation and slowing growth." Also read | Imran Khan compares himself to Bangladesh's founding father Mujibur Rehman The 170 million people nation requested assistance earlier this year, followed by a $4.5 billion deal for its 'economic objectives.' As per the official stats, the country's inflation rate is near 10 per cent, however, many independent analysts claimed the rate to be easily around 20 per cent, AFP reported. The IMF loan will mostly be used to bolster Bangladesh's foreign exchange reserves which drastically fell from $46 billion to $34 billion. The currency has lost nearly 25 per cent to the US dollar in the past few months. Also read | Bangladesh: Cyclone Sitrang lashes country claiming 24 lives Bangladesh is unable to buy fossil fuels due to currency depreciation. To preserve the existing supplies, PM Sheikh Hasina has announced to shut down diesel pants, and implemented long power outages for up to 13 hours a day. These outages have provoked protests. A recent police raid claimed the lives of three people and injured over 100 people. By 2031, the country aims to move ahead of its designation as a 'Least Developed Country' and be counted among 'middle-income countries.' Bangladesh will also advocate for major climate actions and look for more funding. Sri Lanka, another South Asian country falls under the category and has asked for IMF assistance because of the economic crisis the country has been facing. (With inputs from agencies) WATCH WION LIVE HERE

IMF announces $4.5 billion assistance to Bangladesh to combat rising inflation

Is the UK heading for a long recession? UK economy has contracted in the third quarter. Will winter strikes also affect the UK economy? Watch this report.

UK economy contracts in the third quarter; Winter strikes to affect the UK economy?

UK economy contracts in the third quarter; UK heads for a long recession

Amid the ongoing economic crisis, UK's ex-Finance Minister slams UK's ex-PM. Kwarteng said Prime Ministers don't get rid of Chancellors.

UK's ex-Finance Minister slams UK's ex-PM: Prime Ministers don't get rid of Chancellors

As the government has been working&nbsp;to stabilise the faltering national economy, Pakistan has reportedly obtained an additional USD 13 billion in financial backing from its longtime allies China and Saudi Arabia. According to finance minister Ishaq Dar, Pakistan would get around $9 billion from China and $4 billion from Saudi Arabia as part of the new financial support, in addition to guarantees for approximately $20 billion in investments.&nbsp;

He claimed that the Chinese leadership made a commitment to renew USD 4 billion in sovereign loans, refinance USD 3.3 billion in commercial bank loans, and increase the currency swap by approximately USD 1.45 billion, from 30 billion yuan to 40 billion yuan, during Prime Minister Shehbaz Sharif's recent trip to Beijing. The final figure came to USD 8.75 billion.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/live-imran-khan-injured-in-assassination-attempt-530873">As it happened: Imran Khan attack: Former PM injured in 'assassination' attempt</a>

"They promised the security of financial support,” Dar, who recently took over as the new finance minister of Pakistan from his predecessor Miftah Ismail, said and quoted Chinese President Xi Jinping as telling Sharif, “Don’t worry, we will not let you down.”

Also WATCH |&nbsp;Battle drawn between Pakistan's army, Imran Khan after attack on former Prime Minister

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The minister said roughly USD 200 million in commercial loans had already come in a few days prior.

For financial assistance, Pakistan has been corresponding with China and Saudi Arabia. As part of agreements for around USD 35 billion putouts against debt and obligations during the current fiscal year, this included rolling over maturing loans.

(With inputs from agencies)

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As the government has been working to stabilise the faltering national economy, Pakistan has reportedly obtained an additional USD 13 billion in financial backing from its longtime allies China and Saudi Arabia.

As the government has been working to stabilise the faltering national economy, Pakistan has reportedly obtained an additional USD 13 billion in financial backing from its longtime allies China and Saudi Arabia. According to finance minister Ishaq Dar, Pakistan would get around $9 billion from China and $4 billion from Saudi Arabia as part of the new financial support, in addition to guarantees for approximately $20 billion in investments. He claimed that the Chinese leadership made a commitment to renew USD 4 billion in sovereign loans, refinance USD 3.3 billion in commercial bank loans, and increase the currency swap by approximately USD 1.45 billion, from 30 billion yuan to 40 billion yuan, during Prime Minister Shehbaz Sharif's recent trip to Beijing. The final figure came to USD 8.75 billion. Also read | As it happened: Imran Khan attack: Former PM injured in 'assassination' attempt "They promised the security of financial support,” Dar, who recently took over as the new finance minister of Pakistan from his predecessor Miftah Ismail, said and quoted Chinese President Xi Jinping as telling Sharif, “Don’t worry, we will not let you down.” Also WATCH | Battle drawn between Pakistan's army, Imran Khan after attack on former Prime Minister The minister said roughly USD 200 million in commercial loans had already come in a few days prior. For financial assistance, Pakistan has been corresponding with China and Saudi Arabia. As part of agreements for around USD 35 billion putouts against debt and obligations during the current fiscal year, this included rolling over maturing loans. (With inputs from agencies) WATCH WION LIVE HERE:

Reports: Cash-crunched Pakistan to get an additional $13 billion from China and Saudi Arabia

China's 'zero Covid' regime has saved many lives but has also slowed the country's economy. It has exacerbated the supply chain disruptions and kept millions under lockdown for months.

China sticks to its ‘Zero Covid’ policy, insists it being key to protecting people’s lives

Wall Street major Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, as dealmaking business takes a hit due to rising inflation and an economic downturn.

Morgan Stanley to reduce employee headcount in coming weeks as dealmaking slows

On Wednesday, the United States Federal Reserve raised interest rates again making it the fourth straight increase of 0.75% in a bid to combat inflation in the country which remains at a four-decade-high.&nbsp;

In a statement, the central bank said, “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” while reiterating its commitment to returning inflation to its 2% objective. This comes after the two-day meeting of the Federal Open Market Committee (FOMC).&nbsp;

The interest rate affects the cost of borrowing and investment in the economy which the Federal Reserve has been increasing since March in a bid to slow the economy down and bring down the soaring inflation in the country. This rate hike marks the central bank’s sixth consecutive increase just this year.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/world/us-federal-reserve-hikes-interest-rates-to-highest-level-since-2008-518597">US Federal Reserve hikes interest rates to highest level since 2008</a>

The policy decision set the target federal funds rate in a range between 3.75%-4% which is the highest since 2008. The Fed’s policy tightening has sparked a debate about its impact on the US and world economies, additionally, many fear that any further hikes could stress the financial system or even trigger a recession.&nbsp;

“Ongoing increases in the target range will be appropriate,” said the FOMC, indicating that they are “highly attentive” to the risks inflation poses which means that there could be further hikes in the future. This comes as the rate of inflation is at least triple the central bank’s target which has led them to increase rates marking the fastest rounds of increase since the 1980s.&nbsp;

Fed Chairman Powell: chances of&nbsp;‘soft landing’ for economy have&nbsp;‘narrowed’

Federal Reserve Board Chairman Jerome Powell addressed a news conference after the closing of the two-day meeting and said that the “ultimate level” of the central bank’s benchmark policy rate is higher than previously anticipated. Furthermore, chances for the so-called “soft landing” for the economy have “narrowed” but are “still possible”, said Powell.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/videos/federal-reserve-raises-rates-by-75-basis-point-most-aggressive-rate-hike-since-1994-488624">Federal reserve raises rates by 75 basis-point, most aggressive rate hike since 1994</a>

While investors have supposedly been speculating about the 75-basis point rate hike, they had been anticipating a decrease in the rate hikes after its meeting in December. After the speech, US stocks reportedly went volatile with Dow falling more than 500 points, S&amp;P 500 sinking by 2.5% and the Nasdaq Composite fell 3.4%, as of Wednesday, reported CNN.&nbsp;

(With inputs from agencies)&nbsp;

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On Wednesday, the United States Federal Reserve raised interest rates again making it the fourth straight increase of 0.75% in a bid to combat inflation in the country which remains at a four-decade-high.

On Wednesday, the United States Federal Reserve raised interest rates again making it the fourth straight increase of 0.75% in a bid to combat inflation in the country which remains at a four-decade-high. In a statement, the central bank said, “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” while reiterating its commitment to returning inflation to its 2% objective. This comes after the two-day meeting of the Federal Open Market Committee (FOMC). The interest rate affects the cost of borrowing and investment in the economy which the Federal Reserve has been increasing since March in a bid to slow the economy down and bring down the soaring inflation in the country. This rate hike marks the central bank’s sixth consecutive increase just this year. ALSO READ: US Federal Reserve hikes interest rates to highest level since 2008 The policy decision set the target federal funds rate in a range between 3.75%-4% which is the highest since 2008. The Fed’s policy tightening has sparked a debate about its impact on the US and world economies, additionally, many fear that any further hikes could stress the financial system or even trigger a recession. “Ongoing increases in the target range will be appropriate,” said the FOMC, indicating that they are “highly attentive” to the risks inflation poses which means that there could be further hikes in the future. This comes as the rate of inflation is at least triple the central bank’s target which has led them to increase rates marking the fastest rounds of increase since the 1980s. Fed Chairman Powell: chances of ‘soft landing’ for economy have ‘narrowed’ Federal Reserve Board Chairman Jerome Powell addressed a news conference after the closing of the two-day meeting and said that the “ultimate level” of the central bank’s benchmark policy rate is higher than previously anticipated. Furthermore, chances for the so-called “soft landing” for the economy have “narrowed” but are “still possible”, said Powell. ALSO READ: Federal reserve raises rates by 75 basis-point, most aggressive rate hike since 1994 While investors have supposedly been speculating about the 75-basis point rate hike, they had been anticipating a decrease in the rate hikes after its meeting in December. After the speech, US stocks reportedly went volatile with Dow falling more than 500 points, S&P 500 sinking by 2.5% and the Nasdaq Composite fell 3.4%, as of Wednesday, reported CNN. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

In a historic move, US Federal Reserve raises interest rate by 0.75% again

While most of the western giants from McDonald's to Mercedes have quit Russia, the Russian tobacco companies have still not said goodbye to the country.

Russia: Tobacco companies pay over $7 billion taxes, lucrative market for global giants

European Union's industry chief said on Monday (October 31) said that European companies and governments should realise that China is a rival to the EU. He further said that the EU should not be naive when they approach Chinese investment.

European Commissioner Thierry Breton's comments appeared to be aimed in part at Germany, whose Chancellor Olaf Scholz will visit Beijing on Friday.

Watch | 12 ships with over 350,000 tons of grain leave Ukrainian ports despite Russian pull-out

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In order to ensure that rival political powers do not gain political leverage, the EU has take defensive measures in past few years to control investment from state-owned foreign players.

But many diplomats have been baffled by Germany's recent decision to approve the sale of a stake in Hamburg's port, the country's largest, to a Chinese company.

In an interview with Reuters, Breton said he "preferred" the decision to sell only 25% of the terminal to China's Cosco than the original proposal, which would have sold China more than a third and give it a blocking minority.

"We need to be extremely vigilant," he said.

Also Read | <a href="https://www.wionews.com/business-economy/eurozone-inflation-hits-a-new-record-high-says-eurostat-530009">Eurozone inflation hits a new record high, says Eurostat</a>

Breton said that since the EU had labelled China a "systemic rival" in 2019, the EU had adopted a series of measures they can use to block investment in critical infrastructure.

(With inputs from agencies)

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European Union's industry chief said on Monday (October 31) said that European companies and governments should realise that China is a rival to the EU. He further said that the EU should not be naive when they approach Chinese investment.

European Union's industry chief said on Monday (October 31) said that European companies and governments should realise that China is a rival to the EU. He further said that the EU should not be naive when they approach Chinese investment. European Commissioner Thierry Breton's comments appeared to be aimed in part at Germany, whose Chancellor Olaf Scholz will visit Beijing on Friday. Watch | 12 ships with over 350,000 tons of grain leave Ukrainian ports despite Russian pull-out × In order to ensure that rival political powers do not gain political leverage, the EU has take defensive measures in past few years to control investment from state-owned foreign players. But many diplomats have been baffled by Germany's recent decision to approve the sale of a stake in Hamburg's port, the country's largest, to a Chinese company. In an interview with Reuters, Breton said he "preferred" the decision to sell only 25% of the terminal to China's Cosco than the original proposal, which would have sold China more than a third and give it a blocking minority. "We need to be extremely vigilant," he said. Also Read | Eurozone inflation hits a new record high, says Eurostat Breton said that since the EU had labelled China a "systemic rival" in 2019, the EU had adopted a series of measures they can use to block investment in critical infrastructure. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

EU industry chief underlines EU-China rivalry

In an unpredictable world where geopolitical headwinds are rattling Europe and inflation is on the rise, Croatia is hoping that its impending move to the euro would provide some measure of safety for the Balkan nation.

To join the eurozone as the 20th member, Croatia will say goodbye to its currency, the kuna, on January 1.

The former Yugoslav Republic, which joined the <a href="https://www.wionews.com/world/us-set-to-put-united-nations-focus-on-iran-protests-next-week-529304">European Union</a> almost ten years ago, reported an annual inflation rate of about 13 per cent in September, compared to 10 per cent in the eurozone.

Also read |&nbsp;<a href="https://www.wionews.com/world/russian-assets-worth-17-bn-euros-frozen-by-eu-says-official-529442">Russian assets worth 17 bn euros frozen by EU, may be given to Ukraine for rebuilding: Official</a>

Authorities have often emphasised the benefits of adopting the euro for the nation's 3.9 million residents in the run-up to the switchover.

"The euro brings resilience," Ana Sabic of the Croatian National Bank told AFP, arguing that Zagreb will, if needed, have access to more favourable borrowing conditions amid economic hard times.

The European Central Bank has been implementing a monetary tightening strategy since July in an effort to tame the inflation that has exploded due to skyrocketing oil and food costs brought on by <a href="https://www.wionews.com/world/the-task-set-by-you-has-been-completed-russia-ends-mobilisation-for-ukraine-zelensky-expresses-doubt-529302">Russia's war</a> in Ukraine.

Analysts continue to claim that eastern European EU nations like Poland and Hungary, whose currencies are not pegged to the euro, have been significantly more susceptible to rising inflation.

(With inputs from agencies)

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In an unpredictable world where geopolitical headwinds are rattling Europe and inflation is on the rise, Croatia is hoping that its impending move to the euro would provide some measure of safety for the Balkan nation.

In an unpredictable world where geopolitical headwinds are rattling Europe and inflation is on the rise, Croatia is hoping that its impending move to the euro would provide some measure of safety for the Balkan nation. To join the eurozone as the 20th member, Croatia will say goodbye to its currency, the kuna, on January 1. The former Yugoslav Republic, which joined the European Union almost ten years ago, reported an annual inflation rate of about 13 per cent in September, compared to 10 per cent in the eurozone. Also read | Russian assets worth 17 bn euros frozen by EU, may be given to Ukraine for rebuilding: Official Authorities have often emphasised the benefits of adopting the euro for the nation's 3.9 million residents in the run-up to the switchover. "The euro brings resilience," Ana Sabic of the Croatian National Bank told AFP, arguing that Zagreb will, if needed, have access to more favourable borrowing conditions amid economic hard times. The European Central Bank has been implementing a monetary tightening strategy since July in an effort to tame the inflation that has exploded due to skyrocketing oil and food costs brought on by Russia's war in Ukraine. Analysts continue to claim that eastern European EU nations like Poland and Hungary, whose currencies are not pegged to the euro, have been significantly more susceptible to rising inflation. (With inputs from agencies) WATCH WION LIVE HERE:

Croatia gears up for Euro switch amid soaring inflation

The International Monetary Fund (IMF) cut Asia’s economic forecasts on Friday as global monetary tightening, rising inflation blamed on the war in Ukraine, and China’s sharp slowdown dampened the region’s recovery prospects.

IMF cuts Asia's economic forecasts & says China slowdown to drag on Asia growth

China's broad fiscal deficit has hit an all-time high this year. China's economy has been slowing down due to covid-19 outbreaks and the housing market slump.

WION Business News | China's budget deficit nears record $1 trillion

UK's newly elected Prime Minister Rishi Sunak has delayed his government's Halloween economic plan. Sunak says the delay is needed to get decisions right.

UK: Sunak government's Halloween economic plan delayed

Global stocks and the pound climbed Monday as markets reacted to the news that former finance minister Rishi Sunak would become Britain's new prime minister.

European and American equities climbed despite data showing Britain and Germany headed for recession and a plunging Hong Kong stock market as Chinese President Xi Jinping handed key economic posts to loyalists behind his zero-Covid strategy.

Wall Street also opened in the green on Monday, with sentiment boosted by hopes the Federal Reserve would soon slow its pace of interest rate hikes.

Watch | UK: Penny Mordaunt backs out, Rishi Sunak to be the next UK PM

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News that European gas prices were at a four-month low also spurred traders, as the reference Dutch TTF dipped below 100 euros for the first time since June, reaching 98.60 euros per megawatt hour at around 1030 GMT on Monday.

All eyes were on Britain as Sunak was poised to become the country's third prime minister in less than two months following the resignations of Boris Johnson and Liz Truss.

His last rival for leadership of the ruling Conservative party, Penny Mordaunt, dropped out of the race on Monday, clearing the way for Sunak to become prime minister after his failed bid earlier this year.

"The pound started the week trading higher as many see the new potential PM as a source of some stability, particularly when compared to the chaotic term served by the Truss government which saw massive volatility across markets," noted XTB chief market analyst Walid Koudmani.

"Many see Sunak as the final chance for the Conservative Party as he has managed to maintain some credibility" compared with the uncertainty of the Truss and Johnson premierships, he added.

"Investors clearly hope Sunak will stabilise the economy and the political situation -- though it's hard to work out at this point which is the harder task," commented AJ Bell financial analyst Danni Hewson.

Yields on UK government bonds also dropped following recent surges in the wake of Truss's disastrous budget that led to her downfall.

Focus was also on the euro after new Italian Prime Minister Giorgia Meloni took office.

Meloni's post-fascist Brothers of Italy scored a historic victory in general elections on September 25.

Her new government is the most far-right in Italy since World War II, and takes power at a time of decades-high inflation and an energy crisis linked to Russia's invasion of Ukraine.

Milan's stock market was up 1.3 percent in early afternoon trading on Monday, mirroring strong gains in Frankfurt and Paris, while yields on Italian government bonds also fell.

London was up by 0.6 percent in mid-afternoon trading, but the stronger pound and falling oil and gas prices were weighing on the heavyweight energy sector, according to traders.

The eurozone was meanwhile looking ahead to Thursday when the European Central Bank is expected to announce another bumper rise in interest rates aimed at curbing sky-high prices.

On the corporate front, Dutch medical device manufacturer Philips announced it would axe 4,000 jobs after its recall of faulty sleep respirators pushed it into a loss.

Following the news, the group's share price dropped 0.8 percent on the Amsterdam stock exchange on Monday.

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Global stocks and the pound climbed Monday as markets reacted to the news that former finance minister Rishi Sunak would become Britain's new prime minister. European and American equities climbed despite data showing Britain and Germany headed for recession and a plunging Hong Kong stock market as Chinese President Xi Jinping handed key economic posts to loyalists behind his zero-Covid strategy.

Global stocks and the pound climbed Monday as markets reacted to the news that former finance minister Rishi Sunak would become Britain's new prime minister. European and American equities climbed despite data showing Britain and Germany headed for recession and a plunging Hong Kong stock market as Chinese President Xi Jinping handed key economic posts to loyalists behind his zero-Covid strategy. Wall Street also opened in the green on Monday, with sentiment boosted by hopes the Federal Reserve would soon slow its pace of interest rate hikes. Watch | UK: Penny Mordaunt backs out, Rishi Sunak to be the next UK PM × News that European gas prices were at a four-month low also spurred traders, as the reference Dutch TTF dipped below 100 euros for the first time since June, reaching 98.60 euros per megawatt hour at around 1030 GMT on Monday. All eyes were on Britain as Sunak was poised to become the country's third prime minister in less than two months following the resignations of Boris Johnson and Liz Truss. His last rival for leadership of the ruling Conservative party, Penny Mordaunt, dropped out of the race on Monday, clearing the way for Sunak to become prime minister after his failed bid earlier this year. "The pound started the week trading higher as many see the new potential PM as a source of some stability, particularly when compared to the chaotic term served by the Truss government which saw massive volatility across markets," noted XTB chief market analyst Walid Koudmani. "Many see Sunak as the final chance for the Conservative Party as he has managed to maintain some credibility" compared with the uncertainty of the Truss and Johnson premierships, he added. "Investors clearly hope Sunak will stabilise the economy and the political situation -- though it's hard to work out at this point which is the harder task," commented AJ Bell financial analyst Danni Hewson. Yields on UK government bonds also dropped following recent surges in the wake of Truss's disastrous budget that led to her downfall. Focus was also on the euro after new Italian Prime Minister Giorgia Meloni took office. Meloni's post-fascist Brothers of Italy scored a historic victory in general elections on September 25. Her new government is the most far-right in Italy since World War II, and takes power at a time of decades-high inflation and an energy crisis linked to Russia's invasion of Ukraine. Milan's stock market was up 1.3 percent in early afternoon trading on Monday, mirroring strong gains in Frankfurt and Paris, while yields on Italian government bonds also fell. London was up by 0.6 percent in mid-afternoon trading, but the stronger pound and falling oil and gas prices were weighing on the heavyweight energy sector, according to traders. The eurozone was meanwhile looking ahead to Thursday when the European Central Bank is expected to announce another bumper rise in interest rates aimed at curbing sky-high prices. On the corporate front, Dutch medical device manufacturer Philips announced it would axe 4,000 jobs after its recall of faulty sleep respirators pushed it into a loss. Following the news, the group's share price dropped 0.8 percent on the Amsterdam stock exchange on Monday. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Stocks, pound up as Sunak to become new British PM

Australia and Singapore agreed on Tuesday (October 18) on a "green economy" deal to boost cooperation on climate investment, financing and technology.

Australia, Singapore sign 'green economy' pact to boost cooperation on climate investment

Australia and Singapore on Tuesday signed a “green economy” deal to deepen cooperation on climate investment, financing and technology.

WION Climate Tracker: Singapore signs 'green economy' pact with Australia

China's economic woes are worsening. The local fiscal shortfall is posing growth risks. Policymakers are facing stern tests as recession risks rise.

China's economic woes: Local fiscal shortfall poses growth risks

The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers. Various factors have contributed to currency instability when the world is staring at a looming economic uncertainty.

War and the crude prices

The hike and volatility in crude prices caused due to the war in <a href="https://www.wionews.com/world/ukraine-conflict-has-pushed-4-million-children-into-poverty-unicef-525952">Ukraine</a> has significantly moved up India’s import costs, thereby creating more demand for the US dollar. The pent-up demand after the COVID-19 crisis has not been met with sufficient supplies. The<a href="https://www.wionews.com/world/will-never-renounce-force-says-xi-jinping-on-taiwan-during-the-party-congress-525795"> zero-Covid strategy in China </a>had greatly subdued its manufacturing potential, leaving the world short of adequate supplies.&nbsp;

The disruption of COVID-19 had lent a big blow to the global supply chains, unsettling global and regional connectivity. The sanctions on Russian crude and natural gas have critically affected many European countries. The supply-side constraints have been the major factor behind the high inflation rates reported by chief economies of the world.&nbsp;

Fears of recession

So far, India has fared better than the US and other western economies. The <a href="https://www.wionews.com/world/uk-pm-liz-truss-economic-plan-was-a-mistake-says-biden-525756">inflation</a> rate in India is hovering around 7 per cent&nbsp;which is still in the manageable spectrum. The US and many European countries consistently report inflation rates of over 8 per cent&nbsp;which is way over the norms of advanced economies.

The continuing hawkish stance of the Federal Reserve is further bolstering fears of recession. The climate of creeping instability is forcing all the money to be parked in safe havens like the US dollar as a hedge against potential risks. Foreign Institutional Investors (FIIs) had been net sellers in the Indian Stock Market during September.&nbsp;

Yuan depreciation in recent months has made Chinese imports much more attractive that further led to the lowering of demand for the Indian Rupee. Aggregately, prevailing economic conditions are causing widening of the Current Account Deficit (CAD) of the country. As per the latest data from RBI, the CAD increased from 1.5 per cent&nbsp;of the GDP in the January-March quarter to 2.8 per cent&nbsp;of the GDP in the April-June quarter.&nbsp;

The Reserve Bank of <a href="https://www.wionews.com/india-news/indian-man-wrongly-detained-at-abu-dhabi-airport-over-mistaken-identity-lands-in-delhi-525936">India</a> (RBI), India’s central bank, sold its Foreign Exchange Reserves (Forex) aggressively from July to prevent the Rupee from crossing the psychological mark of 80. India’s Forex dropped to $537.5 billion by 23 September, the lowest level since August 2020.

The Rupee settlement system 

The RBI for a long time has been deliberating on ways to reduce dependence on the US dollar and tide over <a href="https://www.wionews.com/world/brazil-bolsonaro-lula-face-off-in-first-debate-525954">US</a> sanctions in various parts of the globe. In July, the RBI permitted international trade to be invoiced, denominated, and settled in Indian Rupee. Market forces would determine the rate of exchange of trade. Touted as an early step toward internationalization of the Indian Rupee, it remains to be seen how the step will play out in the long term.

Deputy Governor of the RBI said on 30 September&nbsp;that around five countries have responded positively to its plan to settle international trade in Rupees, but the process involves technicalities at the level of banks and is going to take some time.&nbsp;

If implemented in the long term, the mechanism would reduce the over-dependence on the US dollar and save precious Forex reserves. In the near future, major benefits could be reaped in trade with Russia and Iran, where the US sanctions have made the trade in US dollars almost an impossibility. Countries with an export surplus with India might not be largely enthusiastic straightaway, because they will have no use for excess Rupee unless it has achieved widespread international acceptance.

Inclusion in Global bond indices

India’s efforts to get included in the Global bond indices is another step by the<a href="https://www.wionews.com/world/iran-protests-raisi-accuses-biden-of-inciting-chaos-in-the-country-525946"> government</a> that could alter the currency status-quo. The RBI is working closely with the government to enable international settlement of government securities and incorporation of rupee-denominated bonds in Global bond indices.&nbsp;

Russia’s recent exclusion from the JP Morgan government bond index-emerging markets (GBI-EM) has left the index unbalanced boosting India’s chances of inclusion. Morgan Stanley, a leading brokerage firm said that the inclusion could attract $170 billion to $250 billion to India in foreign inflows over the next decade. The firm also expects the Rupee to appreciate by 2 per cent every year in REER (Real Effective Exchange Rate) terms, in addition to creating a better investment climate.

JP Morgan GBI-EM and FTSE Russell—two Global bond indices have already put India on the watch list for possible inclusion. Major hindrances that need to be removed before inclusion are India’s local bond settlement rules and tax hurdles. In September, GBI-EM deferred inclusion of Indian government bonds till early next year. The government is not yet willing to exempt foreign investors from capital gains tax because it would discriminate against domestic investors.

Pilot launch of India’s digital currency

On 7 October, the RBI released a concept note on the proposed <a href="https://www.wionews.com/world/bitcoin-firm-nydig-laid-off-about-a-third-of-staff-in-september-reports-say-525289">digital</a> Rupee. One of its stated objectives is the improvement in cross-border transactions. India is wary of the rapidly expanding Chinese CDBC (Central bank digital currency) project and fears being left behind if digital Yuan increases its stature as a global currency. India feels it has to set the ball rolling, to gain a fair share of future global transactions, denominated in Rupee. 

Gradual depreciation of the Rupee may be good for boosting India’s exports. Nevertheless, it is imperative to prevent drastic falls and preserve currency stability. Inclusion in Global bond indices would cater well for Rupee stability because it allows for parking of global passive funds in Indian markets. Expanding the horizons of Rupee will increase its worldwide acceptance and builds trust. Precisely the reason why the national government is bent on internationalization of the Rupee, even if it shrinks the fiscal space of the government.

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The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers.

The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers. Various factors have contributed to currency instability when the world is staring at a looming economic uncertainty. War and the crude prices The hike and volatility in crude prices caused due to the war in Ukraine has significantly moved up India’s import costs, thereby creating more demand for the US dollar. The pent-up demand after the COVID-19 crisis has not been met with sufficient supplies. The zero-Covid strategy in China had greatly subdued its manufacturing potential, leaving the world short of adequate supplies. The disruption of COVID-19 had lent a big blow to the global supply chains, unsettling global and regional connectivity. The sanctions on Russian crude and natural gas have critically affected many European countries. The supply-side constraints have been the major factor behind the high inflation rates reported by chief economies of the world. Fears of recession So far, India has fared better than the US and other western economies. The inflation rate in India is hovering around 7 per cent which is still in the manageable spectrum. The US and many European countries consistently report inflation rates of over 8 per cent which is way over the norms of advanced economies. The continuing hawkish stance of the Federal Reserve is further bolstering fears of recession. The climate of creeping instability is forcing all the money to be parked in safe havens like the US dollar as a hedge against potential risks. Foreign Institutional Investors (FIIs) had been net sellers in the Indian Stock Market during September. Yuan depreciation in recent months has made Chinese imports much more attractive that further led to the lowering of demand for the Indian Rupee. Aggregately, prevailing economic conditions are causing widening of the Current Account Deficit (CAD) of the country. As per the latest data from RBI, the CAD increased from 1.5 per cent of the GDP in the January-March quarter to 2.8 per cent of the GDP in the April-June quarter. The Reserve Bank of India (RBI), India’s central bank, sold its Foreign Exchange Reserves (Forex) aggressively from July to prevent the Rupee from crossing the psychological mark of 80. India’s Forex dropped to $537.5 billion by 23 September, the lowest level since August 2020. The Rupee settlement system The RBI for a long time has been deliberating on ways to reduce dependence on the US dollar and tide over US sanctions in various parts of the globe. In July, the RBI permitted international trade to be invoiced, denominated, and settled in Indian Rupee. Market forces would determine the rate of exchange of trade. Touted as an early step toward internationalization of the Indian Rupee, it remains to be seen how the step will play out in the long term. Deputy Governor of the RBI said on 30 September that around five countries have responded positively to its plan to settle international trade in Rupees, but the process involves technicalities at the level of banks and is going to take some time. If implemented in the long term, the mechanism would reduce the over-dependence on the US dollar and save precious Forex reserves. In the near future, major benefits could be reaped in trade with Russia and Iran, where the US sanctions have made the trade in US dollars almost an impossibility. Countries with an export surplus with India might not be largely enthusiastic straightaway, because they will have no use for excess Rupee unless it has achieved widespread international acceptance. Inclusion in Global bond indices India’s efforts to get included in the Global bond indices is another step by the government that could alter the currency status-quo. The RBI is working closely with the government to enable international settlement of government securities and incorporation of rupee-denominated bonds in Global bond indices. Russia’s recent exclusion from the JP Morgan government bond index-emerging markets (GBI-EM) has left the index unbalanced boosting India’s chances of inclusion. Morgan Stanley, a leading brokerage firm said that the inclusion could attract $170 billion to $250 billion to India in foreign inflows over the next decade. The firm also expects the Rupee to appreciate by 2 per cent every year in REER (Real Effective Exchange Rate) terms, in addition to creating a better investment climate. JP Morgan GBI-EM and FTSE Russell—two Global bond indices have already put India on the watch list for possible inclusion. Major hindrances that need to be removed before inclusion are India’s local bond settlement rules and tax hurdles. In September, GBI-EM deferred inclusion of Indian government bonds till early next year. The government is not yet willing to exempt foreign investors from capital gains tax because it would discriminate against domestic investors. Pilot launch of India’s digital currency On 7 October, the RBI released a concept note on the proposed digital Rupee. One of its stated objectives is the improvement in cross-border transactions. India is wary of the rapidly expanding Chinese CDBC (Central bank digital currency) project and fears being left behind if digital Yuan increases its stature as a global currency. India feels it has to set the ball rolling, to gain a fair share of future global transactions, denominated in Rupee. Gradual depreciation of the Rupee may be good for boosting India’s exports. Nevertheless, it is imperative to prevent drastic falls and preserve currency stability. Inclusion in Global bond indices would cater well for Rupee stability because it allows for parking of global passive funds in Indian markets. Expanding the horizons of Rupee will increase its worldwide acceptance and builds trust. Precisely the reason why the national government is bent on internationalization of the Rupee, even if it shrinks the fiscal space of the government. WATCH WION LIVE HERE:

India: Depreciation pushes RBI to internationalise the Rupee

After Prime Minister Liz Truss' initial economic proposals precipitated a collapse in the bond market, Britain's new finance minister, Jeremy Hunt, promised to demonstrate to investors that he would restore the nation's public finances.

"No government can control the markets. No Chancellor should seek to do that," Hunt told BBC television in an interview broadcast on Sunday.

"There is one thing we can do and that's what I'm going to do, which is to show the markets, the world, indeed people watching at home, that we can properly account for every penny of our tax and spending plans."

Since September 23, when Hunt's predecessor as finance minister&nbsp;Kwasi Kwarteng&nbsp; promised a series of unfunded tax cuts, investors have sold a significant amount of British government bonds.

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-pm-liz-truss-economic-plan-was-a-mistake-says-biden-525756">UK PM Liz Truss' economic plan was a 'mistake', says Joe Biden</a>

Truss, who gained the Conservative Party's leadership less than a month ago on the promise to cut taxes, sacked Kwarteng on Friday and abandoned a significant portion of the plan they had developed together.

<a href="https://www.wionews.com/videos/uk-who-is-jeremy-hunt-uks-new-chancellor-of-exchequer-525664">Hunt</a>, though, has stated that he will go farther, including tax rises and tighter controls on public expenditure.

Asked whether he thought financial markets would have confidence in his plans, Hunt told the BBC: "Well, I think, you know, for people trading the markets, actions speak louder than words."

On Monday morning, when trade in <a href="https://www.wionews.com/world/were-under-seige-180-hindu-groups-write-a-letter-to-truss-seek-action-for-leicester-attacks-525743">Britain</a>'s battered government bonds starts without the assistance of the Bank of England's emergency bond-buying programme, which concluded on Friday, a first test will take place.

(With inputs from agencies)

WATCH WION LIVE HERE:

<iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed" style="width:100%;max-width:560px;" width="560"></iframe>

After Prime Minister Liz Truss' initial economic proposals precipitated a collapse in the bond market, Britain's new finance minister, Jeremy Hunt, promised to demonstrate to investors that he would restore the nation's public finances.

After Prime Minister Liz Truss' initial economic proposals precipitated a collapse in the bond market, Britain's new finance minister, Jeremy Hunt, promised to demonstrate to investors that he would restore the nation's public finances. "No government can control the markets. No Chancellor should seek to do that," Hunt told BBC television in an interview broadcast on Sunday. "There is one thing we can do and that's what I'm going to do, which is to show the markets, the world, indeed people watching at home, that we can properly account for every penny of our tax and spending plans." Since September 23, when Hunt's predecessor as finance minister Kwasi Kwarteng promised a series of unfunded tax cuts, investors have sold a significant amount of British government bonds. Also read | UK PM Liz Truss' economic plan was a 'mistake', says Joe Biden Truss, who gained the Conservative Party's leadership less than a month ago on the promise to cut taxes, sacked Kwarteng on Friday and abandoned a significant portion of the plan they had developed together. Hunt, though, has stated that he will go farther, including tax rises and tighter controls on public expenditure. Asked whether he thought financial markets would have confidence in his plans, Hunt told the BBC: "Well, I think, you know, for people trading the markets, actions speak louder than words." On Monday morning, when trade in Britain's battered government bonds starts without the assistance of the Bank of England's emergency bond-buying programme, which concluded on Friday, a first test will take place. (With inputs from agencies) WATCH WION LIVE HERE:

UK: Newly appointed finance minister promises to restore the nation's public finances

The IMF says that there is an increasing risk of a global recession. What kind of challenges will a global downturn bring for India?

Gravitas: The challenges before the Indian Economy

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