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Category: Business News

  • US Dollar Clings To Gains As Bets On Further Fed Hikes Firm

    US Dollar Clings To Gains As Bets On Further Fed Hikes Firm

    THE Dollar Fought For A Footing In Choppy Trade On Thursday, With Support From Upbeat U.S. Data And Hawkish Policymaker Comments, While The Prospect Of Higher Energy Prices Helped Exporters’ Currencies And Weighed On Those Of Importers. The Dollar Rose 1% On The Euro And 1.3% On Sterling Overnight And Was Trying To Hold Those Gains In Bumpy Early Trade In Asia. The Euro Has Now Made Two UnsuccessfulAattempts To Regain Parity This Week And Last Bought $0.9916. Sterling’s Rebound From Record Lows Has Paused Just Below.





    The U.S. services industry posted another month of expansion in September, data showed overnight, while labour market figures were solid and the trade deficit narrowed. San Francisco Fed President Mary Daly reiterated policymakers’ focus on inflation fighting and dismissed market hopes for rate cuts in 2023. I think that just reminded people that you might be a bit premature in trying to price in rate cuts in the U.S.,” said Westpac currency strategist That pushed up rates and pushed up the U.S. dollar,” he said, as the Federal Reserve’s aggressive moves to rein in inflation sets the pace for central banks around the globe.

    Its One Trade For The Whole World, Said No One Currency’s Interest Rates Are Really Able To GO Off And Do Their Own Thing Independently.

    Bond markets globally sold sharply. Interest rate futures imply more than 130 basis points of tightening ahead for the Fed before the middle of next year The U.S. dollar index wobbled 0.06% lower to 110.86, off lows near 110 from earlier in the week, though some distance below last week’s 20-year high of Sterling last bought $1.1367, while the Australian and New Zealand dollars each rose about 0.4%, taking the Aussie to $0.6518 and the kiwi to.



    The yen, which has been held steady by the risk of further Japanese intervention, sat at 144.57 per dollar.

    The Saudi Arabia-led cartel of oil producers agreed to steep production cuts on Wednesday, lifting Brent crude futures to a three-week high of $93.99 a barre Higher energy prices would have a much more direct impact on the European region given the more direct relationship to their finances,” said NatWest Markets’ strategist Jan Nevruzi Later on Thursday the European Central Bank releases minutes from last month’s policy meeting. Traders are also awaiting Friday’s U.S. labour market data to gauge how fast and far the Fed might be willing to lift interest rates.

  • Gold Steadies Above $1,650 As Safe Haven Appeal Creeps Back in

    Gold Steadies Above $1,650 As Safe Haven Appeal Creeps Back in

    Gold prices steadied above a major support level on Monday as growing risks of an economic recession spurred some safe-haven demand for the yellow metal Prices also recovered marginally from a bruising September, where they dropped 3%. Bullion prices marked their worst quarter since March 2021 with a Spot rose 0.2% to $1,663.99 an ounce, while gold futures were flat around $1,672 an ounce by Prices of the yellow metal were steady even as on Friday showed inflationary pressures remained elevated and were likely to invite more rate hike pain from the Federal Reserve.




    But fears that more interest rate hikes could slow economic growth, coupled with a brewing financial crisis in Europe and the UK invited some safe haven buying into gold. Data on Monday also showed Japanese business sentiment  worsened in the third quarter.

    Bullion Prices Also Benefited From An Easing Dollar, Which Retreated From 20-Year Highs. The Dollar Index Was Largely Flat On Monday.

    Gold has fallen sharply from 2022 highs hit during the onset of the Russia-Ukraine war, as the opportunity cost of holding the metal grew in tandem with rising interest rates across the globe This trend is widely expected to weigh on bullion prices in the coming months, as several central banks hike rates even further to battle stubborn inflation. On that front, gold appears to have largely failed as an inflation hedge this year, trading down Still, prices of the yellow metal may see some short-term relief especially if the dollar weakens further.




    Among Industrial Metals, Copper Prices Fell Further On Monday As Negative Signals From Japan’s Manufacturing Sector Added To Concerns Ver Demand For The red Metal.

    Copper futures fell 0.2% to $3.3830, after falling sharply in September A survey by the Bank of Japan showed major manufacturers in the country grew less optimistic about their business prospects in the third quarter, which could signal weakening industrial trends in the world’s third-largest economy. The data also comes after Chinese PMI  readings last week showed that activity in the world’s second-largest economy remains under pressure Copper prices have plummeted this year as rising interest rates weighed on economic activity, severely denting demand for the industrial metal.

  • Govt hikes DA By 4% Under 7th Pay Commission; Details Here

    Govt hikes DA By 4% Under 7th Pay Commission; Details Here

    The Union Cabinet has hiked the  Dearness Allowance (DA) of central government employees and pensioners by 4 percent under the 7th Pay Commission The hike takes DA to 38 percent from the current 34 percent of basic pay/pension. The Finance Ministry said that the central government employees and pensioners will become entitled to a higher amount of Dearness Allowance (DA) and Dearness Relief (DR), respectively.

    Financial News



    Speaking at a press conference in New Delhi, the Union Minister added that the hike in salary and pension will benefit over 50 lakh government employees and about 62 lakh pensioners ahead of the festive season.  Meanwhile, Finance took to Twitter to add that the combined impact on the exchequer on account of both DA and DR (Dearness Relief) would be R s 12852.5 crore per annum.

     release additional instalment of Dearness Allowance (DA) to central govt employees & Dearness Relief (DR) to pensioners w.e.f.

    Further, the combined impart on the exchequer on account of both DA and DR will be Rs.8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to Februar The Union Cabinet had in March approved to increase 3 per cent in dearness allowance (DA) under the 7th Pay Commission, thus taking the DA to 34 per cent of the basic income.



    Dearness Allowance (DA) is the cost-of-living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same revised the formula to calculate the DA and DR for central government employees and pensioners Dearness Allowance Percentage  ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months.

  • Bharti Airtel acquires strategic stake in Blockchain-tech startup Aqilliz

    Bharti Airtel on Thursday announced that it has acquired a strategic stake in Singapore-based Blockchain platform Aqilliz for an undisclosed sum.

    Airtel aims to deploy Aqilliz’s Blockchain technologies at scale across its fast-growing tech (Airtel Ads), digital entertainment (Wynk Music & Airtel Xstream) and digital marketplace (Airtel Thanks App) offerings.

    “Blockchain technology is maturing and we see its application across areas such as Adtech, Creator Economy, and Loyalty Programmes,” said Adarsh Nair, CEO, Airtel Digital.

    Aqilliz has developed a patented hybrid blockchain platform called ‘Atom’ that integrates differential privacy and federated learning on a distributed digital ledger.

    This allows brands to create secure and consent-based solutions to engage with customers in a rapidly-evolving digital economy that’s becoming increasingly decentralised.

    “Aqilliz’s patented technology will enable Airtel to capture and carry this value exchange in the form of consent and provenance across the digital supply chain,” said Gowthaman Ragothaman, Founding CEO, Aqilliz.

    The Airtel Startup Accelerator Programme invests in early-stage startups working on technologies that have adjacencies to Airtel’s business offerings.

    The programme allows startups to deploy their technologies and applications at a massive scale, which includes more than 340 million retail customers and over 1 million businesses.

  • Long-awaited 5G spectrum auction expected in April-May 2022: Official

    The long-awaited 5G spectrum auction is expected to be held in May this year if the Telecom Regulatory Authority of India (Trai) submits by March its recommendations on the rules regarding the sale process, according to a senior official of the telecom department.

    Telecom Minister Ashwini Vaishnaw earlier this month said the Trai has informed that it will submit its recommendations for the 5G auction by March and the Department of Telecommunications (DoT) is simultaneously firming up other processes to hold the auction at the earliest.

    “Trai has indicated that they will send it (recommendations) by March. Thereafter, it will take us a month to make a decision around it,” Telecom Secretary K Rajaraman told PTI.

    Earlier, the government has taken time of 60-120 days to start the bidding rounds in the auction after receiving recommendations from Trai on spectrum auction.

    Rajaraman said it will take the DoT two months to start the auction from the day it gets recommendations from the Trai.

    According to the DoT, 5G is expected to deliver download speed 10 times faster than 4G services.

    As per the process, DoT seeks reference from the Trai on spectrum price, method for allocating it, block size of spectrum, payments terms and conditions, among others.

    The Trai holds consultation with the industry and other stakeholders and then submits recommendations to the DoT.

    As per the current practice, the apex decision making body at the DoT, the Digital Communications Commission (formerly the Telecom Commission) takes the decision on Trai recommendations and then approaches the Cabinet for the final approval.

    Rajaraman said that the DoT has already selected MSTC as the auctioneer for the upcoming auction.

    Trai has given participants in 5G spectrum consultation to submit their additional comments by February 15 after which it will review and come up with recommendations.

    Telecom operators have demanded up to 95 per cent cut in the spectrum frequency band price. Both telecom and satellite players are at loggerheads with each other on rules for the 5G spectrum auction.

  • Oil prices steady as investors eye US-Iran nuclear talks

    Oil prices were mixed on Thursday, after rallying on an unexpected drop in U.S. crude inventories in the previous session, as investors await the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global markets.

    Brent crude futures slid 10 cents, or 0.1%, to $91.45 a barrel at 0130 GMT, while U.S. West Texas Intermediate crude was at $89.74 a barrel, up 8 cents.Robust demand recovery from the coronavirus pandemic has kept global oil supplies snug, with inventories at key fuel hubs globally hovering at multi-year lows.

    U.S. crude inventories fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels – their lowest for commercial inventories since October 2018, the Energy Information Administration said. Analysts in a Reuters poll had forecast a 369,000-barrel rise.

    U.S. product supplied – the best proxy for demand – peaked at 21.9 million barrels per day (bpd) over the past four weeks due to strong economic activity nationwide, EIA data showed.

    The surprise crude draw reinforces how tight the oil market remains, OANDA analyst Edward Moya said in a note.

    “Crude prices have too many catalysts that support a move to $100 oil in the near future,” he said, pointing to geopolitical tensions across Europe and the Middle East, and improving demand globally as normal travel resumes in large parts of the world.

    However, investors are closely watching the outcome of U.S.-Iran nuclear talks which resumed this week. A deal could lift U.S. sanctions on Iranian oil and ease global supply tightness.

    The White House publicly pressured Iran on Wednesday to revive the 2015 Iran nuclear agreement quickly, saying that it will be impossible to return to the accord if a deal is not struck within weeks.

    “The core uncertainty remains whether Iran is willing to sign on the dotted line,” Eurasia analyst Henry Rome said, adding that the consultancy was holding onto a 40% call on a return to the agreement.

    Separately, U.S. President Joe Biden and King Salman of Saudi Arabia discussed energy supplies and developments in the Middle East, including in Iran and Yemen, during a phone call on Wednesday.

    Salman also spoke about maintaining balance and stability in the oil markets and emphasised the need to maintain the OPEC+ supply agreement, state news agency SPA said.In Europe, U.S. Vice President Kamala Harris will be meeting its allies and partners in Munich next week seeking to deter Russian aggression in Ukraine.

  • California gas utility fined $10 million for ratepayer money misuse

    A major California gas utility must pay the state nearly USD 10 million and reimburse customers money it improperly spent on work related to the development of energy-efficient building codes.

    The penalties that Southern California Gas Co. faces were handed down Thursday by the California Public Utilities Commission.

    The commission, which regulates California’s major utilities, in 2018 prohibited the utility from spending any ratepayer money on advocacy work related to building codes after its internal watchdog found the utility fought standards designed to make homes and businesses more energy-efficient.

    Between June 2018 and January 2021, SoCalGas continued to send employees and consultants to participate in workshops, conference calls, and meetings about the development of new state and federal building standards and also withheld key information from the commission, the ruling said.

    The utility showed profound, brazen disrespect for the commission’s authority,” the commission wrote in its ruling.

    Christine Detz, a spokeswoman for the utility, said in a statement that the utility was reviewing the decision and looked forward to further engagement on this issue.” She declined to comment further on Friday.

    The USD 9.8 million fine falls far short of the USD 124 million penalty that was sought by the commission’s watchdog group and by Earthjustice, an environmental legal group that was involved in the proceedings.

    But the fine sent a strong message, said Sara Gersen, a senior attorney for Earthjustice.

    SoCalGas has gone rogue for too long, trying to undermine California’s climate goals and keep Californians reliant on polluting gas appliances. It’s good to finally see some measure of accountability, she said in a statement.

    SoCalGas distributes natural gas to nearly 22 million consumers in central and Southern California, according to its website.

    It’s not the first time the utility has been mired in controversy. A 2015 blowout at the utility’s Aliso Canyon storage facility took almost four months to control and became the largest known natural gas leak in the nation’s history. The utility and its parent company, Sempra Energy, settled with 35,000 plaintiffs for USD 1.8 billion last year.

    This week, the utility settled another lawsuit related to the leak that alleged it violated a California law requiring businesses to warn people about possible exposure to toxic chemicals, the Los Angeles Times reported. The agreement requires the utility to pay USD 1.55 million to the Center for Environmental Health, which filed the lawsuit, the state, and counsel, Detz told the Times.

    The California Public Utilities Commission’s Public Advocates Office, the ratepayer watchdog group, has also alleged the company has improperly used ratepayer money on activities to promote the continued use of natural gas in buses and convincing cities not to encourage electric appliances in new construction. Detz, the utility spokeswoman, did not immediately comment on those claims.

    California has set some of the nation’s most ambitious clean energy goals, and reaching them will require phasing out the use of natural gas.

    That’s already underway in some cities, which have banned gas appliances in new construction.

    The California Energy Commission stopped short of requiring new construction to be all-electric in its most recent update to state building codes. But the use of electric heat pumps is encouraged and new buildings must be electric ready” even if they use natural gas.

    Meanwhile, a recent study by California researchers found that gas-powered stoves are emitting more methane than previously thought, even when turned off. Methane is a highly potent greenhouse gas that contributes to climate change.

    California utilities are allowed to spend ratepayer money to participate in state and federal efforts to update building standards, but only if they’re promoting stricter standards, not weaker ones.

    In 2017, the Public Advocates Office found SoCalGas had been using ratepayer money to fight against the adoption of stricter building codes that would diminish the need for natural gas.

    That prompted the public utility commission in 2018 to prohibit SoCalGas from using ratepayer funds on any activities related to new building standards, regardless of the utility’s position. It did allow them to transfer ratepayer money to other utilities working on such issues.

    The USD 9.8 million fine is a result of the utility continuing to engage in that work by sending employees and consultants to participate in workshops, conference calls, and meetings around the development of new state and federal building standards, the commission wrote in its Thursday decision.

    The bulk of the fine is a USD 10,000 per day charge over 960 days, from June 1, 2018, to Jan. 15, 2021. The ruling also limits incentive payments to shareholders related to energy efficiency programs.

  • Saregama India plans to invest up to Rs 750 cr in music business

    Saregama India, a part of RP-Sanjiv Goenka Group, is planning to invest up to Rs 750 crore in its music business to achieve a 25-30 per cent revenue growth in the next few years through organic and inorganic routes, an official said.

    It is also foraying into a new business segment of artiste partner programme to launch their music videos and audios on its platforms with an arrangement of sharing revenue, he told analysts.

    The fund (of up to Rs 750 crore) is only for the music business. This is not going to be used for our films or our Carvaan business. Other businesses are well capitalised and they will be able to manage to run on their own…. Our projection of 25-30 per cent revenue growth that we are giving is a combination of both organic, new content purchases, and some inorganic purchases,” the official said.

    On music licencing and the film business, the company is also looking at 25-30 per cent growth next year, he said.

    Saregama announced its partner programme for all singers and musicians wanting to do covers, recreations and remakes of its catalogue across all languages.

    “The company has categorised partnerships into three segments. The first is Diamond plus for which revenue share is 20 per cent, while Diamond revenue share will be 10 per cent and for the gold category, which is only for audio, it is also 10 per cent,” the official added.

  • World food prices ease in Dec, but hit 10-year peak in 2021: FAO

    World food prices eased in December after four consecutive monthly gains but jumped 28% over 2021 for the highest average level since 2011, the U.N. food agency said on Thursday.

    The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.7 points last month compared with a revised 134.9 for November.

    The November figure was previously given as 134.4.

    For 2021 as a whole, the benchmark index averaged 125.7 points, up 28.1% from 2020 and the highest since 131.9 in 2011.

    The monthly index has been running at 10-year highs, reflecting harvest setbacks and strong demand over the past year. 

    With the exception of dairy products, prices for all categories in the food price index eased in December, with vegetable oils and sugar falling significantly, the agency said.

    Higher food prices have also contributed to a broader surge in inflation as economic activity recovers from the coronavirus crisis.

    The FAO has warned that higher food costs in import-reliant countries are putting poorer populations at risk.

  • Here’s where stock investors should consider putting their money in 2022Here’s where stock investors should consider putting their money in 2022

    Coming off several years of outsized gains in the stock market, investors may be hoping 2022 is like deja vu again.

    Don’t count on it. While future performance is impossible to predict with certainty, many financial advisors expect returns will come back down to Earth.

    “We have been telling clients to expect a lackluster year in the stock market and in portfolios in general, with lingering elevated inflation, slower economic growth and interest rate hikes,” said certified financial planner Shon Anderson, president and chief wealth strategist for Anderson Financial Strategies in Dayton, Ohio.

    So far this year, the S&P 500 Index — a broad measure of how U.S. companies are faring — has posted a total return (price gains plus dividends) of about 29.2%. That’s on the heels of 18.4% in 2020 and roughly 31.5% in 2019 (and a loss of more than 4% in 2018). Over time, the annual average is about 10%.

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    The Dow Jones Industrial Average has a total return so far this year of 21.1%, following 9.72% in 2020 and roughly 25.3% in 2019 (and a loss of 5.6% in 2018). The tech-laden Nasdaq Composite index, meanwhile, has posted a 23.2% gain so far this year, after 44.9% in 2020 and about 36.7% in 2019 (and a loss of 2.84% in 2018).

    While 2022 may end with lower returns — i.e., single-digit gains, perhaps — the economy is expected to continue to expand, albeit at a slower pace than earlier in the year. In the third quarter, gross domestic product — which measures all economic activity — grew at an annual pace of 2.3%, according to the Bureau of Labor Statistics. That came on the heels of 6.5% annual growth in the second quarter, and 6.4% in the first quarter.

    With that slower growth as a backdrop, coupled with persisting inflation and the Federal Reserve’s latest expectations that interest rate hikes are on their way next year, there may be certain industries or market sectors that outperform others. 

    “The environment is right for being more cautious and defensive … but there are still opportunities to make money,” said CFP Matthew McKay, an investment analyst with Briaud Financial Advisors in College Station, Texas.

    “Typically this is an environment where utilities, health care and consumer staples can outperform, generally speaking,” McKay said.

    International stocks — in  both developed markets and emerging markets — also may outperform, he said.

    “Looking at the second half of the year, many countries should turn up growth year over year, which would be quite positive for these two broad markets, especially given the reasonable multiples they are priced at,” McKay said.

    Real estate investment trusts could also do better than the broader market, Anderson said. REITs, as they’re called, are companies that own and/or operate properties such as office buildings, shopping malls, apartment complexes and warehouses. 

    “Specifically for REITs, we think there is more opportunity in the data centers, self-storage and health-care [facilities],” Anderson said. 

    Stocks related to residential building may also be a spot of strength, said Joseph Veranth, chief investment officer and portfolio manager at Dana Investment Advisors in Waukesha, Wisconsin. 

    Industrial stocks may also benefit from a strong economy and from more being spent on infrastructure or defense, said CFP Barry Glassman, founder and president of Glassman Wealth Services in Vienna, Virginia. Generally, companies in that sector manufacture and distribute goods used by industries such as construction, engineering, aerospace and defense, or they may be involved in transportation and logistics services.

    Additionally, Glassman said, his firm is focusing on total shareholder return — that is, looking at stocks with consistent dividend payouts, as well as stock buybacks. The latter generally causes a company’s share price to rise because fewer shares are on the market once the buyback happens.

    “I can’t imagine the S&P continuing its impressive three-year run but even if the index doesn’t do as well, I think there are stocks that could do better,” Glassman said. “I think what will rule is profitability and stability of earnings.”