Gautam Adani, Adani Group Chairman is now the 15th richest in the world after adding more than $ 12 billion in a massive rally in Adani Group stocks. Adani was back in the list of top 20 richest people in the world in November following the rally in Adani Group stocks.
As per the Bloomberg Billionaires Index, Adani is now the 15th richest person in the world, with a net worth of $82.5 billion. Adani’s wealth jumped by more than $ 12 billion following the rally in Adani Group stocks on Tuesday.
Adani Group market cap hit an 11-month high, reaching Rs 13.8 lakh crore in mcap in Tuesday’s trade.
The Adani conglomerate clinched its best-ever single-day market performance adding Rs 1.92 lakh crore in one day gains.
Tuesday’s strong gains also come on the heels of reports indicating that the US International Development Finance Corp (DFC) did not find the allegations of corporate fraud by short-seller Hindenburg Research relevant. Before extending a significant loan to the conglomerate for a port project in Sri Lanka, the DFC reportedly conducted a thorough examination of the claims against the Adani Group.
All 10 stocks in the Adani group clocked gains ranging from 7-20 per cent with Adani Green Energy and Adani Energy Solutions hitting gains of 20 per cent. The Group’s flagship company Adani Enterprises Ltd (AEL) saw a staggering rise in its share price by 16.91 per cent, increasing its market valuation by a substantial Rs 48,809 crore. Adani Ports and Special Economic Zone (APSEZ) also performed solidly with a 15.3 per cent gain in share price, contributing Rs 29,043 crore to the market cap.
Other group stocks also gained with Adani Energy Solutions and Adani Green Energy Solutions clocking gains of 20 per cent each. Both stocks added over Rs 55,600 crore to the group’s market cap. Adani Power Ltd (APL) and Adani Total Gas Limited (ATGL) registered gains of 15.81 per cent and 19.88 per cent, respectively. (IANS)
Parth Mehta ’19 challenges the conventional question of “where do you want to be in five years?” by advocating for a present-focused approach. According to him, instead of fixating on a distant future, one should strive to build for the current moment. When the information technology graduate established Startup Tribes, his initiative aimed at democratizing startup and entrepreneurial support, he relied heavily on sheer determination and an unwavering commitment to achieving nothing less than 100%, with the understanding that the rest would unfold over time.
In the wake of his company’s acquisition by a leading player in startup ecosystem development, Mehta, now 26, lives by the mantra, “At the top of one mountain, is the bottom of the next,” signifying his perpetual quest for new challenges. Despite achieving success at a relatively young age, he remains driven by a willingness to take risks, a characteristic that has defined his journey thus far.
Even after the acquisition, Mehta found himself mentoring and advising founders of high-growth companies in Silicon Valley and New York City, illustrating his relentless commitment to entrepreneurship. His break from this fast-paced lifestyle was a rarity, occurring back in 2017 while he was still a student at NJIT.
For Mehta, embracing the journey with resolute determination and a belief in destined inevitability places one at the pinnacle. He contends that this realm is inhabited by visionary founders, Olympic athletes, and champions in their respective fields—individuals who transform the most challenging dreams into reality. Through meaningful connections with esteemed CEOs and founders, Mehta discovered that excelling in this space requires breaking away from a conventional, run-of-the-mill lifestyle.
As the Senior Leader in Product Management at SS&C Intralinks, a prominent player in virtual data rooms for mergers and acquisitions, Mehta oversees the entire security and compliance product suite. His journey to this role began when the company approached him while he was conducting workshops on entrepreneurial product management skills in Silicon Valley. Despite the role originally being tailored for an expert with over a decade of experience, Mehta’s unique background as both an entrepreneurial leader for a product and an entire tech company set him apart.
Navigating high-pressure situations, handling high-risk tasks, and managing resource constraints while successfully launching products and engaging various stakeholders represent a distinctive skill set that individuals like Mehta bring to the table. Transitioning from a startup to a corporation, he likens the experience to steering a speedboat and then captaining a battleship, where heightened awareness of interdependencies and the potential domino effect of small changes is crucial. Mehta asserts that managing $50 million provides a blueprint for managing $500 million and beyond.
In his role leading the company’s cybersecurity product line, Mehta collaborates closely with senior executives, embodying a strong sense of accountability and ownership. His confidence in delivering results at an age where such responsibility is less common stems from his experience working in highly stressful, high-stakes environments. His extensive subject matter expertise in cybersecurity, coupled with past founder experiences, positions him well to tackle critical challenges with a significant impact.
Despite his success in his 20s, Mehta remains grounded, emphasizing the importance of strong character and moral fiber in navigating adversity. His achievements have not come without sacrifices, as he acknowledges the toll on his internal body clock and the sacrifices made in his social life. Yet, he takes nothing for granted and maintains an outlook centered on gratitude.
Startup Tribes, founded by Mehta at the age of 22, aimed to ‘democratize’ entrepreneurship. In the initial two years, he took no salary, and in the third year, he kept his income below that of a fast-food chain employee, prioritizing the well-being of his staff and company. Working tirelessly, sometimes up to 20 hours a day, he reflects on the intensity of those years with a touch of humor, suggesting that even with a 100-hour work week over four years, he might still be underpaid.
The challenging backdrop of starting a new company during the onset of COVID added to the complexity. However, Mehta, drawing on the mentorship of Suresh U. Kumar, director of entrepreneurial programs at NJIT, navigated these challenges. Kumar’s experience as a serial entrepreneur, including successfully founding a company after 9/11, provided Mehta with valuable insights into building a startup ecosystem during periods of uncertainty.
Startup Tribes initially addressed challenges faced by university entrepreneurship centers, and Mehta secured his first customer based on merit and trust rather than the best pitch deck. As industries shifted to remote operations due to COVID, Mehta adapted, expanding his company’s scope to digitize entrepreneurship support organizations and startup accelerators, ultimately leading to the acquisition in 2022.
Mehta’s accomplishments have come at a cost, impacting his internal body clock and social life. Yet, he values the friendships cultivated, especially with peers over 45 years old who run billion-dollar companies. Despite moments of uncertainty during his company’s evolution, Mehta’s strong character enabled him to navigate extreme hardships.
In prioritizing making a difference over making money, Mehta has consistently adhered to his guiding principle. His decision to forgo a high-paying job on Wall Street right after school in favor of Startup Tribes underscores his commitment to providing resources, access to capital, and tools to underserved entrepreneurs. Beyond his role at Intralinks, Mehta collaborates with Kumar at TiE NJ, chairing the Emerging Entrepreneurs Special Interest Group, dedicated to helping young founders and first-time entrepreneurs acquire tangible skills in their initial startup years.
Mehta’s perspective embodies an ongoing journey of personal and professional evolution, marked by a willingness to embrace criticism and feedback for skill refinement, character development, and moral compass alignment. His resounding philosophy emphasizes contentment with the present coexisting with an unwavering pursuit of excellence, aiming for a life free of regrets.
Reliance Industries Chairman Mukesh Ambani has expressed unwavering confidence in the trajectory of the Indian economy, projecting its ascent to a staggering $40 trillion by 2047, a substantial leap from its current standing at $3.5 trillion, according to reports from PTI.
Ambani, speaking at the convocation of Pandit Deendayal Energy University (PDEU) in Gandhinagar, Gujarat, highlighted India’s position as the world’s third-largest energy consumer. He foresaw a doubling of the country’s energy needs by the close of this decade. Emphasizing the necessity for copious amounts of energy to propel this growth, he underscored the imperative nature of ensuring it is clean and green, safeguarding the environment in the pursuit of human progress.
“In fact, India’s energy requirement is set to double just by the end of this decade,” Ambani asserted, addressing the audience at PDEU. He envisioned an unparalleled explosion of economic growth in the next 25 years, portraying it as a crucible for transforming the vision of a cleaner, greener, and sustainable future into a tangible reality.
Ambani posed three pivotal questions as India races to fortify its energy infrastructure: How can universal access to affordable energy be ensured for every citizen and economic activity? How can a swift transition from fossil fuel-based energy to clean and green alternatives be accomplished? And, crucially, how can the expanding needs of the fast-growing economy be shielded from the volatility of the external environment? He coined these queries as the “Energy Trilemma.”
The business magnate, also the wealthiest individual in India, contended that the transition of energy sources holds the utmost significance in propelling India towards becoming a global leader in green, sustainable, and inclusive development.
Demonstrating faith in India’s capability to navigate this trilemma with smart and sustainable solutions, Ambani credited the nation’s exceptionally talented youth for their commitment to combat the climate crisis. He envisioned these young minds designing breakthrough energy solutions that would not only contribute to a robust and self-reliant India but also foster a safer and healthier planet.
Addressing the students, Ambani imparted a message of fearlessness and unwavering confidence in their abilities. “Courage is the ship that can safely sail you across the stormiest seas. You will commit mistakes. But let that not worry or deter you. The one who succeeds in life is the one who corrects his mistakes and continues on his mission boldly,” he asserted.
Reflecting on his own journey, Ambani attributed his success to India, to Bharat. He urged the graduates to contribute wholeheartedly to the greatness and glory of the country, emphasizing that being young in today’s India is a true blessing. He concluded on an optimistic note, proclaiming that the 21st Century is unequivocally poised to be India’s Century as the nation strides forward with confidence.
Ilayas Quraishi, COO at the Parikh Media and Neha Mahajan, Business development and Outreach manager at Chugh are among those elected to the Borad of Directors of The Asian Indian Chamber of Commerce (AICC) after the elections held on November 29, 2023 at the prestigious Mogul Ballroom in Edison, NJ.
Other newly elected Board of Directors for the term 2024-25 include: Rajeev Krishna, Rekha Sarathy, Chetan Wattamwar, Harry Mehta, Komal Dangi, Ajay Kumar, Parag Nevatia, and Shachi Rai Gupta.
This term marks the inclusion of three new faces, Neha Mahajan, Shachi Rai Gupta, and Ajay Kumar, bringing fresh perspectives and energy to the AICC leadership, the organization said. “Each member of the newly elected board brings a wealth of experience and enthusiasm, and their leadership is expected to contribute significantly to the growth and success of the chamber,” a press release isued here stated.
Addressing the gathering, current President Rajeev Krishna, highlighted the accomplishments of the last two years under his leadership. He expressed gratitude to the dedicated Board members who he said, worked tirelessly to elevate the organization. He said he expected AICC to achieve new heights, and hoped to organize AI technology seminars to impact small businesses positively. He encouraged Board members to share their ideas and actively participate in implementing them.
“I am thrilled to share the exciting news ablut the newly concluded elections for AICC. Each member to the BOD brings a wealth of experience and enthusiasm to the table, and I am confident that their leadership will significantly to the growth and success of our chanmber,” wrote Ilayas Quraishi after being elected to the Board.
Neha Mahajan in her remarks after being elected to the BOD said, “Super excited and thankful to be voted and appointed to the Borad of Directors of The Asian Indian Chamber of Commerce. Looking forward to serving the community at large, one step at a time, creating newer heights for the business community.’
Anil Bansal and Priti Pandya Patel, past presidents of AICC, conducted the election process efficiently, in their positions as election committee members. They announced the results, and extended heartfelt congratulations to the new board.
As a gesture of appreciation to the members, Kunal Lamba, a well-known singer from New Jersey, entertained the audience with Bollywood melodies at the event.
The ITServe Alliance Policy Advocacy Committee (PAC) hosted a panel discussion on October 27th, 2023 during its annual conference, Synergy 2023. The purpose of the panel was to review the current issues facing Congress and the Administration, especially the regarding the need for high-skilled immigration reform in the United States.
Attended by over 2,200 members of ITServe Alliance, who are small and medium-sized companies of Information Technology, Synergy 2023 was held from October 26th to 27th, 2023 at the popular Harrah’s Resort in Atlantic City, NJ.
Congressman Kevin Kiley, representing California’s 3rd Congressional District, and serving on the House Judiciary Committee was the featured speaker on the panel. The House Judiciary Committee is primarily tasked with handling high-skilled immigration reform.
During his remarks, Congressman Kiley emphasized the importance of ITServe Alliance members’ contributions to the local economies and his support for high-skilled immigration reform, and expressed his support for H.R. 4647, “High-Skilled Immigration Reform for Employment (HIRE) Act,” introduced by US Congressman Raja Krishnamoorthi, D-Illinois on July 14th, 2023.
The Bill would strengthen U.S. competitiveness by helping to close the skills gap – the space between the skills required for jobs that employers need to fill, and the skills possessed by current prospective employees. As introduced, the bill would raise the current H-1B limit from 65,000 to 130,000, remove the H-1B cap for those with a Master’s Degree or PhD, and create a STEM grant program. The HIRE Act has been referred to the House Judiciary Committee for consideration by the Committee, where Rep. Kiley is a member.
Vinay Mahajan, President of ITServe said, “Having the presence of elected officials such as Rep. Kevin Kiley at Synergy 2023 has effectively served as a powerful platform in educating policymakers on the issues that are important to our members and the business community, ensuring that our needs and views are reflected in policy debates and outcomes on Capitol Hill. The U.S. needs to maintain its leadership in technology and innovation,” added Mahajan.
Congressman Kiley also discussed the need for all ITServe Alliance members to work with their local members of Congress to garner their support for the HIRE Act.
“Enhancing local employment and Innovation are the primary objectives of ITServe’s Policy Advocacy,” said Siva Moopanar – Director of ITServe Alliance Policy Advocacy Committee (PAC). “Innovation is very important for job creation and the economic growth of a country. We want the best and the brightest from around the world over here which triggers the technology revolution and jobs. Our country should be on top of the world for several hundred years.”
ITServe Alliance was established in 2010 to safeguard the rights of Information Technology (IT) companies in the United States. Through its various bodies, ITServe, which has now become the collective voice of small and medium-sized IT companies across the United States, fulfills its mission to achieve its core mission and objectives. The three fundamental pillars of the ITServe PAC are: to educate, lobby, and litigate.
The ITServe Alliance PAC team has created an easy way to contact your local member of Congress regarding the HIRE Act. Simply scan the QR code below, enter your home address and click send. Your participation is vital to get this important legislation passed in the Congress. For more details, please visit: www.itserve.org
Women now make up 35% of workers in the United States’ 10 highest-paying occupations – up from 13% in 1980. They have increased their presence in almost all of these occupations, which include physicians, lawyers and pharmacists.
How we did this
Still, women remain the minority in nine of the 10 highest-paying occupations. The exception is pharmacists, 61% of whom are women. More broadly, the share of women across all 10 of these occupations (35%) remains well below their share of the overall U.S. workforce (47%).
Workers in the 10 highest-paying occupations typically earn more than $100,000 a year, over twice the national average of $41,000.
Where women have made the most – and least – progress
Women’s presence has changed more noticeably in some of these occupations than in others. Since 1980, the share of women dentists has more than quadrupled (from 7% to 33%), while the share of women physicians has roughly tripled (from 13% to 38%). The share of lawyers who are women has risen from 14% to 40%.
The shares of women working in high-paying engineering fields have increased by smaller margins since 1980: Women make up less than 10% of sales engineers and petroleum, mining and geological engineers.
Additionally, only 7% of airplane pilots and navigators are women, against 2% in 1980.
Women have gained ground in completion of advanced degrees
Some of these high-paying occupations – including physicians, lawyers, dentists and pharmacists – require specialized graduate degrees. One way that women have increased their presence in high-paying occupations is by increasingly earning degrees that are required for these jobs.
Women now make up about half of those receiving the following advanced degrees:
Juris Doctor (J.D.): 52% of recipients today are women, versus 30% in 1980
Doctor of Dental Surgery or Doctor of Dental Medicine (D.D.S. or D.M.D.): 51% of recipients are women, versus 13% in 1980
Doctor of Medicine (M.D.): 50% of recipients are women, versus 23% in 1980
Women now also earn 63% of Doctor of Pharmacy (Pharm.D.) degrees – similar to their share of workers in the pharmacist occupation (61%). Pharmacists are also the only occupation in the top 10 where women make up the majority. This could be because the field offers flexible work hours, a collaborative environment and family-friendly policies, according to economic research.
However, women remain in the minority among those receiving certain bachelor’s degrees required for some high-paying occupations:
Mathematics or statistics: 42% of recipients today are women, unchanged from 1980
Physics: 25% of recipients are women, versus 13% in 1980
Engineering: 23% of recipients are women, versus 9% in 1980
Outside of undergraduate major selection, there are other reasons women may experience barriers to entering high-paying occupations, even as they achieve parity in many advanced degree programs. Gender differences in household and parenting responsibilities may play a role, as could gender discrimination.
The partnership signifies the strengthening of the relationship between the two countries, as a part of Australia-India Economic Cooperation and Trade Agreement.
IndiGo has announced an extension of its codeshare agreement with Australia’s national airline, Qantas through which IndiGo customers will now be able to access four new destinations – Sydney, Melbourne, Perth and Brisbane in Australia.
With the new codeshare routes, passengers can now also fly to Singapore and connect seamlessly to Qantas’ flights between Singapore and Melbourne, an official statement noted.
According to a release by Indigo this partnership signifies the strengthening of the relationship between the two countries, as a part of Australia-India Economic Cooperation and Trade Agreement.
In 2022, Qantas and IndiGo had finalized codeshare partnership enabling Qantas customers flying on non-stop flights between Australia and India to connect to 21 destinations in India on IndiGo.
Commenting on the partnership Pieter Elbers, chief executive officer, IndiGo, said, “The two airlines are the market
leaders in their respective countries and this agreement will strengthen the bond between the two countries. For IndiGo, placing its code on another airline and connecting over a mid-point (Singapore) is only the 2nd one of its kind. With this we are now enabling the vast IndiGo network to connect with Qantas’ unmatched reach, we create more opportunities for trade and tourism between both nations.”
“With the thriving growth of the Indian aviation industry, this agreement will also enhance our international connectivity and remain committed to our promise of providing on-time, affordable, courteous, and hassle-free travel experiences to our customers across our wide network,” he added.
The Global Talent Competitiveness Index has witnessed a significant decline for India, plummeting from the 83rd position a decade ago to the 103rd rank in the latest report released earlier this month. Among 134 countries evaluated, India finds itself positioned between Algeria, ranked 102, and Gautemala, ranked 104, both categorized as lower-middle-income countries. This places India well below the median score of the countries assessed. Notably, India’s current standing in the index is the lowest among BRICS nations.
Developed by the renowned chain of business schools, INSEAD, the Global Talent Competitiveness Index serves as a measure of how countries and cities grow, attract, and retain talent. The index comprises two sub-indices: input, which assesses regulatory and business environments, as well as efforts to foster and retain talent, and output, which evaluates the quality of talent.
India’s decline in the GTCI is particularly worrisome, considering the government’s frequent reference to scores on various business indices such as ‘Ease of Doing Business’ and the controversial World Bank-led ‘Doing Business’ scores to bolster its case. Notably, the World Bank Report on ‘Doing Business’ was discontinued due to irregularities in its measurement.
India’s performance in the GTCI stands in stark contrast to other emerging countries that have shown improvement on this index. China, Indonesia, and Mexico, in particular, have been highlighted for their noteworthy progress. China, for instance, has transitioned from being a talent mover to a talent champion, while Indonesia has made significant strides in talent competitiveness over the past decade. Mexico has transformed from a talent laggard to a talent mover, and Brazil is on track to potentially categorize as a talent mover.
In the context of BRICS nations, China leads the group with a rank of 40, followed by Russia at 52, South Africa at 68, and Brazil at 69. In contrast, India’s rank of 103 is the lowest among BRICS countries.
The report emphasizes that India’s talent competitiveness witnessed an increase up to 2020 but has regressed in each of the three subsequent years. A primary factor contributing to this decline is a downturn in business sentiment, significantly impacting the ability to attract talent, with India now ranked 132nd out of 134 in this aspect. This decline extends to both attracting talent from overseas (127th in External Openness sub-pillar) and within the country (129th in Internal Openness).
The report also highlights an increased skills mismatch and greater difficulty in finding skilled employees, positioning India at 121st in both the ‘Employability’ sub-pillar and the ‘Vocational and Technical Skills’ pillar. However, it does acknowledge India’s strength in the ‘Global Knowledge Skills’ category, where innovation and software development contribute to its 69th position in the Talent Impact sub-pillar.
In terms of global rankings, Singapore, Switzerland, and the United States hold the top three positions. European countries continue to dominate the ‘Top 25’ rankings, with Japan dropping out for the first time, and South Korea ascending to take its place.
Despite the debates surrounding India’s position on various business indices, experts argue that focusing on whether the current situation can be labeled a genocide is a misplaced emphasis. Some scholars, like Verdeja, express the view that debates on this matter divert attention and time from addressing the ongoing crisis, stating, “Proving whether something is a genocide takes time and does not actually stop people from being killed.” Hinton concurs, asserting that the fixation on defining a specific moment as genocide can lead to a rigid focus, obscuring the broader perspective of addressing the immediate challenges and finding solutions.
In the broader context, scholars note the significance of using the term genocide to describe specific situations. Segal cites the example of the U.S. government’s refusal to label crimes against the Hutus in Rwanda as genocide, as doing so would have obligated intervention. This lack of action allowed the massacre to continue unabated. Segal emphasizes the importance of naming a situation for what it is, stating, “Without sticking to the truth, we’ll never have a truthful reckoning of how we arrived at the seventh of October, and how we go forward.”
In recent months, foreign businesses have been withdrawing capital from China at a pace surpassing their investments, according to official data. The apprehension stems from a combination of factors, including China’s economic slowdown, low interest rates, and heightened geopolitical tensions with the United States. The upcoming meeting between Chinese leader Xi Jinping and US President Joe Biden is eagerly anticipated, as it may offer insights into the future economic landscape. However, businesses are already exhibiting caution, expressing concerns about geopolitical risks, policy uncertainty, and slowing growth.
Nick Marro from the Economist Intelligence Unit (EIU) highlights the prevailing sentiments, stating, “Anxieties around geopolitical risk, domestic policy uncertainty, and slower growth are pushing companies to think about alternative markets.”
The data reveals a noteworthy shift, with China recording a deficit of $11.8 billion (£9.6 billion) in foreign investment in the three months ending September – a first since records began in 1998. This suggests a trend where foreign companies are not reinvesting their profits in China; instead, they are choosing to relocate their funds elsewhere.
A spokesperson for Swiss industrial machinery manufacturer Oerlikon, which withdrew 250 million francs ($277 million; £227 million) from China last year, emphasized the need for corrections in the face of China’s economic slowdown. Despite the challenges, China remains a vital market for Oerlikon, with close to 2,000 employees, representing over a third of its sales.
Oerlikon’s spokesperson remarked, “In 2022, we were one of the first companies to transparently communicate that we expect the economic slowdown in China to impact our business. Consequently, we began early to implement actions and measures to mitigate these effects.”
The impact of the pandemic has added another layer of complexity for businesses operating in China, the world’s largest market. The stringent “zero-Covid” policy implemented by China disrupted supply chains, affecting companies like Apple, which diversified its production to India. The tensions between China and the US, with fresh export restrictions on critical materials for advanced chips, have also contributed to the shift in business strategies.
While established multinational firms may not be exiting the Chinese market, there is a noticeable reassessment in terms of new investments. Nick Marro notes, “We aren’t seeing many companies pulling out of China. Many of the big multinational firms have been in the market for decades, and they’re not willing to give up market share that they’ve spent 20, 30 or 40 years cultivating. But in terms of new investment, in particular, we are seeing a reassessment.”
Interest rates play a significant role in this reassessment. While many countries raised rates sharply last year, China took a different path by reducing the cost of borrowing to support its economy and struggling property industry. This, coupled with a depreciation of the yuan by over 5% against the dollar and euro, has prompted businesses to redirect their funds overseas for higher investment returns.
The European Union Chamber of Commerce in China emphasizes this trend, stating, “Those with excess cash and earnings in China have been increasingly transferring these funds overseas, where they will earn a higher investment return compared to investments in China.”
Michael Hart, president of the American Chamber of Commerce in China, notes that the withdrawal of profits does not necessarily indicate dissatisfaction with China but rather signifies the maturation of investments. He views it as encouraging, indicating that companies can integrate their China operations into their global operations.
Canada-based aerospace electronics company Firan Technology Group exemplifies this trend. Having invested up to C$10 million ($7.2 million; £5.9 million) in China over the past decade, the company withdrew C$2.2 million from the country last year and in the first quarter of 2023. Firan’s president and chief executive, Brad Bourne, clarifies, “We are not exiting China at all. We are investing and growing our business there and taking out any excess cash to invest elsewhere in the world.”
As uncertainties loom over future interest rates and China-US ties, analysts anticipate potential moves by China’s central bank to lower interest rates further to support the economy. However, this decision comes with challenges, as lowering interest rates could exert additional pressure on the depreciating yuan.
The business community remains cautiously optimistic about the upcoming meeting between Presidents Xi and Biden. Nick Marro suggests, “Direct meetings between the two presidents tend to exert a stabilizing force on bilateral ties.” However, he also notes that until companies and investors feel confident navigating the uncertainties, the drag on foreign investment into China is likely to persist.
The evolving economic landscape in China, coupled with geopolitical tensions and global economic shifts, has prompted foreign businesses to reassess their investments. While established companies may not be abandoning the Chinese market, the trend of redirecting funds overseas reflects a cautious approach influenced by economic uncertainties and a desire for higher investment returns. The upcoming meeting between leaders Xi and Biden is anticipated to provide some clarity, but until then, businesses remain vigilant in navigating the complex dynamics of the Chinese market.
Saudi Arabia has expressed interest in buying a multibillion-dollar stake in the Indian Premier League (IPL), international cricket’s most lucrative event, following a string of investments that have upended professional sports, including football and golf, a media report said.
Saudi Arabian Crown Prince Mohammed bin Salman’s advisors have spoken to Indian government officials about moving the IPL into a holding company valued at as much as $30 billion, Bloomberg reported.
The talks were held when the Saudi Crown Prince visited India in September for the G20 Summit held under India’s Presidency, the report said.
Saudi Arabia proposed investing as much as $5 billion into the league and help lead an expansion into other countries, the report said.
Picture: Times Now
As per earlier reports, the IPL ecosystem value has risen from Rs 87,000 crore to Rs 92,500 crore, marking an increase of around 6.3 per cent, as per a report by D&P India Advisory Services.
In USD terms, this translates to a growth from $10.9 billion to $11.2 billion, representing an increase of approximately 3.3 per cent.
The league has always been a spectacle of cricket, business and entertainment. This year was no exception, as the league continued to captivate audiences, both on television and digital platforms, the report said.
According to the Broadcast Audience Research Council (BARC) India, the IPL telecast on the Star Sports Network attracted a staggering 505 million viewers with an impressive watch time of 427.1 billion minutes. On the digital front, JioCinema reported that 449 million viewers tuned into its platform, with over 126 million viewers choosing connected TV options to savour the IPL action.
Saudi Arabia’s powerful sovereign wealth fund, which has anchored many of the kingdom’s previous sports investments, could ultimately be the vehicle used to do a deal with the BCCI if an agreement is reached. No final decisions have yet been made.
In a notable turn of events, mortgage rates witnessed the most substantial one-week decline since November of the previous year. This marks the second consecutive week of rate reduction following seven weeks of consecutive increases. The 30-year fixed-rate mortgage averaged 7.50% in the week ending November 9, down from the preceding week’s 7.76%, as reported by Freddie Mac.
A year ago, the 30-year fixed-rate had reached 7.08%, hitting its peak in 2022. This week’s decline of 26 basis points from the previous week’s rate is the most significant one-week drop since November. Sam Khater, Chief Economist at Freddie Mac, attributes this decline to the decrease in Treasury yields. He emphasizes the potential consequences of the rising household debt, urging significant decreases in mortgage rates for the housing market to avoid stagnation.
Khater stated, “Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.”
The average mortgage rate is based on data from Freddie Mac’s thousands of lenders across the nation, focusing on borrowers with a 20% down payment and excellent credit. Notably, the rates for current buyers may differ. Lower mortgage rates could potentially encourage hesitant homebuyers to re-enter the market.
The Mortgage Bankers Association reported a 2.5% increase in all loan applications compared to the previous week, with a 3% rise specifically in applications for home purchase loans. However, despite this uptick, Joel Kan, MBA’s Vice President, and Deputy Chief Economist highlighted that applications for both purchase and refinance loans remain at relatively low levels. The purchase index lags more than 20% behind last year’s pace, indicating a cautious approach by potential homebuyers waiting for increased inventory.
The recent decision by the Federal Reserve to maintain existing interest rates provided a brief reprieve for homebuyers grappling with soaring mortgage rates. Yet, the possibility of an additional Fed rate hike remains uncertain.
Jiayi Xu, an economist at Realtor.com, commented on the need for more economic indicators to determine the adequacy of current policies in addressing inflation. The October jobs report, revealing moderate job growth and reduced wage pressures, might influence policymakers’ confidence in the economy’s continued easing, affecting the upcoming December 12-13 meeting of the Federal Reserve.
Despite the dip in rates, the monthly cost of buying a home has reached a record high due to unaffordability. Realtor.com found that the median home price in October remained similar to the previous year. However, with mortgage rates exceeding 7% since mid-August, the monthly cost to buy a home increased by over $166, marking a 7.4% year-over-year rise—a new record.
While mortgage rates are still relatively high, the difference between current rates and those of a year ago has narrowed. Lisa Sturtevant, Chief Economist at Bright Multiple Listing Service, noted that market conditions are comparable to last November, with consumers adjusting their expectations about mortgage rates. She anticipates that some buyers will act swiftly when rates dip, while others may wait until after the first of the year, hoping for lower rates and increased inventory.
Sturtevant also remarked that while rates are expected to decrease in 2024, they are not projected to return to pre-pandemic levels. She stated, “We are in a new era for mortgage rates, where prospective homebuyers can expect rates to settle above 6%.”
The US dollar could encounter a formidable challenge from BRICS countries due to their expanding size and influence in global trade, warns former White House economist Joe Sullivan.
Sullivan, in a recent op-ed for Foreign Policy, highlighted the rising concerns that BRICS nations might introduce a currency to rival the US dollar in international trade. This potential currency could potentially displace the dollar from its current dominant position in global trade markets and as the primary reserve currency.
Although BRICS officials have denied the existence of such a rival currency, Sullivan cautioned that the bloc of emerging market countries, which has recently welcomed Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, poses a threat to the greenback based on its growing influence.
Sullivan also pointed out the substantial influence of the BRICS bloc in commodities markets. Saudi Arabia, Iran, and the United Arab Emirates are among the world’s leading exporters of fossil fuels, while Brazil, China, and Russia are significant exporters of precious metals.
The inclusion of Saudi Arabia, in particular, could provide BRICS+ with a significant advantage, as the Middle Eastern nation holds over $100 billion in US Treasury bonds, contributing to the total holdings of US Treasurys by BRICS countries surpassing $1 trillion, according to Sullivan.
Sullivan argued, “The BRICS+ nations do not need to wait until a shared trade currency meets the technical conditions typical of a global reserve currency before they swing their newly enlarged economic wrecking ball at the dollar.”
He also highlighted the growing prominence of China’s yuan in global trade, as Beijing’s trading partners increasingly use the renminbi.
Sullivan further warned that these trends could eventually place the US dollar in a position similar to that of the British pound in the 1800s when it lost its international dominance.
He explained, “The BRICS+ states do not even necessarily need to have a shared trade currency to chip away at King Dollar’s domain. If BRICS+ demanded that you pay each member in its own national currency to trade with any of them, the dollar’s role in the world economy would diminish. There would not be a clear replacement for the dollar as a global reserve. A variety of currencies would gain in importance.”
However, some economists hold a different view, suggesting that the US dollar’s role as the world’s primary trading and reserve currency will likely persist for an extended period. The data from the Bank of International Settlements and the International Monetary Fund show that the greenback continues to outperform rival currencies in international trade and central bank reserves by a significant margin. The yuan has only recently made modest gains in central banks’ holdings.
Opposition Leaders Accuse Government of Hacking Attempts
Several Indian opposition leaders and journalists have accused the government of trying to hack into their phones after receiving warning messages from Apple. Apple’s alert stated that it believed the recipients were “being targeted by state-sponsored attackers” without specifying the attackers’ identity. The Indian government has dismissed these allegations, with federal ministers calling them “destructive politics.” However, they also noted that the government would “investigate to get to the bottom of these notifications.”
Around a dozen opposition politicians, including MPs from the Congress party and other opposition parties, confirmed receiving the messages from Apple. Congress leader Rahul Gandhi stated that he and his staff had also received the alert and expressed no fear, saying, “You can do as much [phone] tapping as you want, I don’t care.”
Some journalists, including Siddharth Varadarajan, a founding editor of news website The Wire, reported receiving the message as well. The government has asked Apple to participate in the investigation “with real, accurate information on the alleged state-sponsored attacks,” according to federal information technology minister Ashwini Vaishnaw.
Apple’s Statement on State-Sponsored Attacks
Apple’s support page for users explains that “state-sponsored attackers are very well-funded and sophisticated, and their attacks evolve over time.” These attackers target a “very small number of specific individuals and their devices.” However, Apple does not provide specific details about what triggers these threat notifications, as revealing such information could help state-sponsored attackers adapt their behavior to avoid detection in the future.
Technology analyst Prasanto K Roy explained that companies like Apple look for activity patterns to detect large-scale, coordinated malware attacks. While it is technically possible to attribute such attacks to a particular country or state agency, Apple prefers not to make specific attributions.
Political Reactions and Allegations
Indian politicians and journalists shared screenshots of the messages they received from Apple on social media, with some pointing out that no member of the governing Bharatiya Janata Party (BJP) had confirmed receiving the notification yet. Opposition leaders raised questions about the selectiveness of these notifications.
However, later in the day, BJP minister Rajeev Chandrasekhar stated that his colleague Piyush Goyal had also received the alert, prompting further discussions about the implications of the notifications.
Aam Aadmi Party MP Raghav Chadha connected the alerts to the upcoming general election and stated that they should be viewed within the context of ongoing attacks on the opposition.
BJP leaders responded to the allegations by calling them baseless and shifting the responsibility to Apple to clarify the meaning of the notifications.
Historical Surveillance Allegations
Several opposition leaders in India had previously accused Prime Minister Narendra Modi’s government of placing them under surveillance. In 2019, WhatsApp filed a lawsuit alleging that Indian journalists and activists were targeted by Pegasus, a surveillance software developed by Israeli firm NSO Group. NSO claimed to work only with government agencies.
In 2021, Indian website The Wire reported that over 300 phone numbers on a leaked database of thousands of numbers, associated with government clients of NSO, belonged to Indians.
Additionally, in the previous year, a political controversy arose after the New York Times reported that India had acquired Pegasus from Israel as part of a defense deal in 2017. The Indian government denied purchasing the spyware.
As the allegations continue to circulate, questions surrounding the notifications and their implications persist.
Corning Inc, the world’s largest producer of smartphone cover glass, is set to commence the manufacturing of this product in India by the close of 2024, courtesy of its joint venture with Optiemus Infracom Ltd, a Noida-based contract manufacturer. This venture, named Bharat Innovation Glass Technologies, signifies a significant step in India’s journey towards self-reliance in smartphone manufacturing. As John Bayne, Senior Vice President, and General Manager of Mobile Consumer Electronics at Corning Inc, highlighted, “For the first time, cover glass will be made in India for both local and international OEMs that are assembling their devices in India. The technology is scalable and can be expanded to support an increase in supplies. It is consistent with the Make in India vision of the government.”
The decision to establish local manufacturing of smartphone cover glass in India is driven by Corning’s strategy to diversify its supply chains and reduce its reliance on China. Bayne elucidated, “During COVID, the world realized it was overly dependent on some regions, and a little more diversity would probably help just as a backup to avoid situations like [the pandemic] or natural disasters, or if a country shuts down. So you’ve seen people start to diversify in different countries in Asia, and our priority is to be close to our customers.”
The joint venture aims to initiate production with a target of 30 million units in India during its first phase, thereby generating employment opportunities for 500 to 1000 individuals. To facilitate this endeavor, discussions are underway with several state governments, including Tamil Nadu and Telangana, to secure suitable land for the factory.
Corning, renowned for its ‘Gorilla Glass’, stated that the joint venture is exploring the possibility of availing financial incentives for the manufacturing of electronic components and semiconductors.
Optiemus Infracom, a prominent player in the technology sector, is poised to venture into the domain of glass-cover manufacturing, where it will hold a 30% stake in the joint venture. The company, known for producing laptops, tablets, telecom equipment such as routers, as well as hearables and wearables for various brands, is diversifying its operations with this strategic partnership.
Cover glass, an integral component in mobile phone manufacturing, is currently imported into India for lamination with display panels. Corning’s decision to establish local manufacturing is expected to not only bolster the domestic production of smartphones but also encourage other companies to establish a presence in India’s burgeoning tech landscape.
The joint venture aspires to offer this crucial component at a comparable quality and cost while simultaneously reducing logistics and shipping expenses. Furthermore, as it achieves greater scale and capabilities, Corning has plans to introduce glass-sheet manufacturing and glass melting capacities in India, reinforcing the nation’s position as a prominent hub in the global electronics manufacturing ecosystem.
For the past six weeks, the Justice Department and a group of state prosecutors have been attempting to make a case that Google utilized its dominant market position to maintain its search engine’s supremacy. Now, it’s Google’s opportunity to present its defense in this pivotal trial.
The tech giant, valued at $1.7 trillion, is expected to argue that it leads in the search industry because of its superior technology, making it the preferred choice among users. To bolster its case, Google has summoned Alphabet and Google’s CEO, Sundar Pichai, as a star witness.
Pichai’s background is deeply intertwined with Google’s search engine operations. His anticipated testimony will emphasize that Google’s primary aim has always been to offer the best possible search product to consumers, thereby enhancing competition.
This courtroom clash between Google and the government marks the first major antitrust trial involving a tech monopoly in decades, particularly in the era of the modern internet. The last time a case of this magnitude was brought to trial was in 1998, when Microsoft faced similar allegations and was found to have violated antitrust laws.
While the concept of antitrust may appear unexciting to some, the Google trial has been filled with intrigue. The proceedings have seen accusations of document destruction and revelations about billion-dollar deals between some of the world’s wealthiest corporations. The government’s case featured around 30 witnesses, including experts, psychologists, and high-ranking executives from Apple and Microsoft, all aimed at demonstrating Google’s wrongdoing.
According to Kenneth Dintzer, the Justice Department’s lead attorney, “Google illegally maintained a monopoly for more than a decade.” He argued that if Google sets the rules, it will always be in its favor.
The government bears the responsibility of proving that Google’s actions harmed competition. The central claim is that Google orchestrated its business dealings to ensure its search engine appears as the default option on devices, leaving consumers with no real alternatives.
The Justice Department contends that Google achieved this through exclusive agreements with device manufacturers, web browsers, and mobile carriers, including giants like Apple, Mozilla, and AT&T. During the trial, evidence was presented indicating that Google paid Apple over $10 billion annually to secure its position as the default search engine on Apple devices. Eddy Cue, Apple’s senior vice president of services, testified that these deals were mutually beneficial.
The government’s case featured numerous other witnesses, including Microsoft CEO Satya Nadella, who claimed that he had unsuccessfully attempted for years to persuade Apple to switch its default browser from Google to Microsoft’s Bing. He emphasized that even a company as substantial as Microsoft could not compete without such a switch.
Executives from smaller search engines, such as DuckDuckGo and Neeva, also testified, asserting that Google’s exclusive deals hindered their efforts to gain market share. While some information regarding Google’s business practices was disclosed during the trial, much of it remained confidential, with significant portions of Eddy Cue’s testimony occurring behind closed doors.
Google’s defense has consistently downplayed the significance of its exclusive agreements with device manufacturers. The company contends that its success is primarily due to the quality of its products, implying that rival search engines like Bing simply do not measure up.
John Schmidtlein, Google’s lead attorney, argued during opening statements that “Microsoft has failed to invest, failed to innovate in a manner comparable to Google, in many areas that have nothing to do with scale.”
Google initiated its defense last Thursday and intends to maintain this stance over the next few weeks. Sundar Pichai, Google’s CEO, is expected to play a crucial role in presenting Google’s position. Given his history with the company, Pichai is well-suited to discuss the search products offered by Google.
In 2004, when he first joined the company, Pichai worked on the Google search toolbar. He later headed the team responsible for creating Google’s Chrome browser, which prominently features Google search as the primary option. Pichai was also instrumental in securing the exclusive agreements with Apple.
Currently, Google controls roughly 90% of the U.S. search engine market. The company’s argument is that, although it may be the default browser on most devices, users are not compelled to use its search engine. Google maintains that users can easily switch to another search engine with a few clicks or swipes, but they choose to stay.
In addition to Sundar Pichai, Google plans to call at least ten other witnesses. The trial is expected to continue until the end of November. As it is a bench trial, there is no jury, and the final decision will rest with Judge Amit Mehta.
If Google emerges victorious, the company is likely to continue its business practices as usual. However, if the ruling favors the Justice Department, the consequences for Google remain uncertain, ranging from potential fines to ending exclusive agreements or even corporate restructuring.
“This has the potential to be precedent-setting,” remarked John Kwoka, an economics professor at Northeastern University specializing in antitrust. “So, the stakes are high for everybody.”
During late summer and early fall, the US economy experienced a significant upswing, marked by strong consumer spending. Recent data revealed that the gross domestic product (GDP) expanded at an annual rate of 4.9% in the months of July, August, and September. This growth rate was more than double that of the previous quarter and represented the highest quarterly growth since the final quarter of 2021.
This robust economic performance is noteworthy, especially considering the concurrent rise in interest rates, which have reached their highest level in over two decades. The driving force behind this growth was the American consumer, who continued to open their wallets and indulge in various expenditures, including the purchase of cars, dining at restaurants, and even buying tickets for events like Taylor Swift concerts. Moreover, an increase in exports and heightened government spending contributed to the overall economic expansion.
Potential Challenges Ahead
However, despite the recent economic boom, analysts and forecasters are cautious about the sustainability of this rapid growth rate in the upcoming months. It is anticipated that economic growth will decelerate as the effects of elevated interest rates begin to take hold. Already, higher interest rates have had a dampening effect on the housing market and could potentially impede other consumer spending as well.
The key question is the extent to which the economy will slow down. Earlier in the year, there were concerns that increased borrowing costs might push the economy into a recession. While those fears have subsided, they are not entirely eliminated, as various challenges continue to loom over the economy. These challenges include the uncertainties arising from a volatile global environment.
A Closer Look at the Strong Economic Performance
The GDP growth rate of 4.9% for the months of July, August, and September showcases the robust state of the US economy during that period. This figure is particularly impressive as it represents a growth rate more than twice as fast as the previous quarter. Notably, it is the highest quarterly growth rate recorded since the final quarter of 2021, signifying a remarkable rebound and strengthening of the US economy.
Consumer spending has played a pivotal role in driving this growth. Americans have been actively contributing to economic expansion by increasing their expenditures. This has encompassed various sectors, such as the automotive industry, where car sales have surged, and the hospitality sector, with a notable increase in restaurant dining. Furthermore, even the entertainment industry benefited, with a surge in demand for events like Taylor Swift concerts.
Additionally, it’s worth highlighting the positive impact of increased government spending on the economy. As government initiatives and projects gained momentum, they provided a supplementary boost to economic growth. Moreover, a rise in exports further bolstered the economy’s performance during this period.
Challenges Ahead for Sustaining Growth
Despite the impressive performance, economic forecasters have sounded a note of caution regarding the sustainability of such a brisk pace of growth. The impending challenge lies in the form of higher interest rates. It is expected that the cumulative effect of these interest rate hikes will eventually curtail economic growth. In fact, the housing market has already experienced a slowdown due to these elevated rates, and this trend might extend to other consumer spending areas.
The critical question centers around the extent to which the economy will decelerate. Earlier in the year, there were concerns that the increased cost of borrowing might push the economy into a recession. While such fears have somewhat receded, they have not disappeared entirely. The economy faces a complex set of challenges, including the uncertainties stemming from the tumultuous global economic landscape. This unpredictability can potentially hinder the pace of economic recovery and growth in the near future.
The economic landscape, despite its recent strength, remains subject to a multitude of external factors, and it will be crucial to monitor these closely in the coming months to assess the durability of the ongoing recovery.
Kareena Kapoor Khan & Alia Bhatt Goes Viral – Crosses 100 million views.
Malabar Gold & Diamonds’ recent TV commercial, “Speak Your Heart with Mine Diamonds,” featuring brand ambassadors Alia Bhatt and Kareena Kapoor Khan, has taken the online world by storm, accumulating over 100 million views on all platforms in just 23 days. The views continue to surge.
This marks the first collaboration between the two Bollywood stars and highlights the exquisite Mine Diamond jewelry collection from Malabar Gold & Diamonds. The video emphasizes the intrinsic value of diamond jewelry and how they can express a range of emotions. Alia and Kareena guide viewers through various scenarios where diamonds make the perfect gift, such as proposals, anniversaries, birthdays, and other special occasions.
Kareena Kapoor Khan shared her thoughts on the experience, saying, “It has been an absolutely enjoyable experience being a part of this video. It does a great job of highlighting the momentous nature of diamonds in all our lives and how they can increase the sparkle of any occasion.”
Alia Bhatt, speaking about the video’s success, expressed, “Diamonds do let us speak our hearts, and this message could not have been conveyed more effectively. The fact that this video has crossed more than a 100 million views goes on to show how much people have connected with the message.”
Malabar Group Chairman, M.P Ahammed, praised the brand ambassadors, stating, “Being the faces of the brand, Kareena Kapoor Khan & Alia Bhatt were perfectly poised to get our message across, and they have done so in the most amazing way. I have every confidence that the video will attract an even larger viewership over the coming days, so that our message is spread far and wide.”
Malabar Gold & Diamonds, with over 335 showrooms across 11 countries, is currently ranked as the 6th largest jewelry retailer globally. Apart from the signature Mine-diamond jewelry collection, the brand offers more than 25 exclusive brands and collections with exquisite designs in Gold, Diamonds, and Precious Gem jewelry.
Established in 1993, Malabar Gold & Diamonds is the flagship company of Malabar Group, a leading Indian business conglomerate. With an annual turnover of $5.2 billion, the company ranks as the 6th largest jewelry retailer globally. They have a strong retail network of over 335 outlets across 11 countries, in addition to multiple offices, design centers, wholesale units, and factories spread across India, the Middle East, Far East, USA, and the UK.
The group is owned by more than 4,000 shareholders and employs over 21,000 professionals from more than 26 countries. Malabar Gold & Diamonds operates an online store, providing customers with the opportunity to purchase their favorite jewelry conveniently from their homes. They also run MGD – Lifestyle Jewellery, a retail concept offering trendy and lightweight jewelry designed to represent independent and modern women.
Environmental, Social & Governance (ESG) has been the primary commitment of the group since its inception. The key ESG focus areas of Malabar Group include Health, Housing, Hunger-Free World, Education, Environment, and Women empowerment. The group contributes 5% of its profit to such initiatives in the same country of operation, demonstrating its commitment to social responsibility and sustainability.
The prevalence of unexpected and added fees, encountered by consumers when purchasing airline tickets, renting a car, or even ordering takeout, is the focus of new initiatives announced by the Biden administration. Their aim is to combat these so-called “junk fees” and provide buyers with more transparency regarding their payments.
President Biden expressed his concerns at the White House, saying, “Folks are… tired of being taken advantage of, and being played for suckers.” He emphasized that while these “junk fees” may not be significant to the wealthy, they certainly matter to working-class families.
One significant move unveiled is a proposal by the Federal Trade Commission (FTC) that would prevent companies in various sectors from imposing concealed and deceptive fees. This rule would mandate sellers to disclose all essential costs upfront. The FTC could potentially impose financial penalties on companies that violate this rule. Proponents argue that this regulation will enable consumers to make more informed price comparisons and create a level playing field for businesses that are transparent about their costs.
Additionally, the Consumer Financial Protection Bureau (CFPB) has instructed banks and credit unions to offer basic information to customers, such as their account balances, without any fees. The White House further disclosed that the CFPB will introduce a separate rule later this month, compelling financial institutions to enable customers to conveniently share their data with other banks if they wish to switch.
However, the Biden administration’s actions have sparked criticism from some quarters. Neil Bradley, the executive vice president of the U.S. Chamber of Commerce, argued that the crackdown on “junk fees” would negatively impact consumers. He expressed puzzlement at the notion that the administration believes it can assist consumers by regulating the pricing of the numerous transactions occurring daily.
On the contrary, consumer advocates have lauded the administration’s efforts. They estimate that “junk fees” cost consumers more than $64 billion annually. Erin Witte, the director of consumer protection at the Consumer Federation of America, affirmed that Americans, regardless of their political affiliations, are weary of being subjected to deceitful and worthless fees. She also pointed out that these fees disproportionately affect low-income consumers and communities of color.
Chip Rogers, the president and CEO of the American Hotel & Lodging Association, announced that the organization will review the FTC rule. However, he emphasized their support for establishing a uniform standard for displaying mandatory fees within the lodging industry. This standard would apply across short-term rental platforms, where such fees are prevalent, online travel agencies, metasearch sites, and hotels.
President Biden had previously urged lawmakers to pass the Junk Fees Prevention Act in his State of the Union speech earlier this year. The proposed legislation seeks to limit the excessive fees imposed by companies.
Warren Buffett, a renowned investor, has had a remarkable career marked by astounding returns. Over the span of almost six decades, from 1964 to 2022, his conglomerate, Berkshire Hathaway Inc. (NYSE: BRK), achieved an overall gain of 3,787,464%. This impressive performance significantly outshone the S&P 500, which delivered a return of 24,708% during the same period.
Buffett, known for his investment acumen, doesn’t solely rely on stocks that soar in value; he’s also a proponent of collecting dividends, often stating, “If you don’t find a way to make money while you sleep, you will work until you die.”
Many companies in Buffett’s extensive portfolio pay dividends to their shareholders. In this discussion, we’ll focus on Chevron Corp. (NYSE: CVX), the largest energy stock within Berkshire Hathaway’s holdings.
As of June 30, Berkshire Hathaway held a substantial 123,120,120 shares of Chevron. At that time, the value of this position was estimated at $19.4 billion, making Chevron the fourth-largest publicly traded holding in Berkshire’s portfolio.
The energy sector, driven by oil prices, can be quite volatile, experiencing significant price fluctuations. Chevron’s shares saw substantial gains in 2021 and 2022. However, in 2023, they faced a decline of approximately 6.7%.
Beyond the potential for capital gains through stock trading, investors can also benefit from the dividends offered by the energy giant. Chevron currently maintains a quarterly dividend rate of $1.51 per share, resulting in an annual yield of 3.7%. Given Berkshire’s substantial holding of 123,120,120 Chevron shares, this equates to a potential quarterly dividend income of $184.68 million from the company.
Picture: LinkedIn
The beauty of collecting dividends is that you don’t need to be the “Oracle of Omaha” to take advantage of opportunities like those presented by Chevron.
Growing Dividends from Chevron
In January, Chevron’s board made the decision to enhance the company’s quarterly dividend by 6%, bringing it to $1.51 per share. This increase sets Chevron on course to achieve its 36th consecutive year of boosting its annual dividend payout per share.
Chevron adheres to a quarterly distribution schedule. If an investor’s goal is to accumulate $1,000 per month from Chevron, this translates to $3,000 per quarter. To attain this income level, an investor would need to own approximately 1,986.75 shares of Chevron. This calculation is achieved by dividing the desired quarterly income of $3,000 by the per-share quarterly payout of $1.51.
Considering Chevron’s current stock price of $162.23 per share, amassing 1,986.75 shares would equate to an investment worth approximately $322,311.
For those with a more modest target of earning $200 per month, equivalent to $600 per quarter, they would require approximately 397.35 shares (calculated as $600 divided by $1.51) or an investment totaling around $64,462 in Chevron stock (computed as 397.35 shares multiplied by $162.23).
Although Chevron’s stock has recently experienced a pullback, analyst Nitin Kumar from Mizuho holds an optimistic outlook for the oil supermajor. Kumar has assigned a Buy rating to the company and set a price target of $215, which stands approximately 33% above the current stock price.
It’s important to note that stocks can exhibit considerable fluctuations, and even the most reputable analysts are not infallible. Therefore, conducting thorough research and due diligence before making investment decisions is always advisable.
In a clear demonstration of ongoing economic strength, American payrolls experienced a significant increase of 336,000 in September, as reported by the Labor Department on Friday. This growth, nearly double what economists had predicted, reaffirmed the robustness of the labor market and the resilience of the economy, which has been grappling with various challenges.
Remarkably, this marked the 33rd consecutive month of job expansion, with September’s surge being the most substantial since January. Meanwhile, the unemployment rate, based on household surveys, remained stable at 3.8 percent, maintaining a level below 4 percent for nearly two years—an achievement not witnessed since the late 1960s.
Samuel Rines, an economist and managing director at Corbu, a financial research firm, commented, “This is an economy on fire,” reflecting the enthusiasm surrounding the economic performance.
Notably, data revisions also brought good news, with hiring figures for July and August being adjusted upwards, revealing an additional 119,000 jobs compared to previous records. These revisions underscored employers’ confidence in the ongoing economic recovery and their belief that there is ample room for further growth.
Andrew Flowers, a labor economist at Appcast, a firm specializing in online recruiting, pointed out that “Fears of an imminent recession have been easing since the spring, allowing businesses to revisit hiring plans they put on hold.”
The release of these figures drew considerable attention from Federal Reserve policymakers, who have been grappling with the challenge of balancing wage and price control through interest rate adjustments. Robust job growth often triggers a sell-off among investors due to concerns over potential rate hikes, which can negatively impact stock and bond prices.
Surprisingly, the market’s response on Friday was generally positive, primarily because the report indicated that the economy was still expanding while wage growth remained moderate, leading many to believe that the Federal Reserve would maintain steady interest rates. Average hourly earnings for workers showed a 0.2 percent increase from the previous month and a 4.2 percent increase from September 2022. While these figures were solid, they fell slightly short of expectations, with the one-year growth rate being the slowest since March 2020.
David Cervantes, founder of Pine Brook Capital Management, an asset management firm, emphasized, “I don’t think the headline jobs number necessarily means an inflationary impulse because average hourly earnings gains are going down,” providing reassurance for those concerned about the inflationary impact of rising wages.
Officials from the Biden administration hailed the report as unequivocally positive, with Jared Bernstein, chair of the White House Council of Economic Advisers, stating, “Simply put, good news is good news, full stop,” highlighting the persistently strong job market under Bidenomics.
The economy’s resilience, more than three years into the recovery from Covid pandemic shutdowns, is evident in various ways. Inflation-adjusted economic growth has accelerated over the summer, even as overall price increases have slowed compared to a year ago. While spending has moderated since its rapid pace in 2021, demand for travel, hospitality, and event tickets remains high, and jobless claims are at their lowest levels since February 2020.
Furthermore, the accumulated savings of Americans during the pandemic have endured longer than expected. In 2019, U.S. households held approximately $980 billion in “checkable deposits,” including checking, savings, and easily cashable money market accounts. In 2023, this figure has surged to over $4 trillion.
However, there are reasons for caution. The suspension of mandatory federal student loan repayments, a pandemic relief measure, is ending this month. The housing market has been affected by a shortage of supply and rising interest rates, resulting in nearly frozen activity and record high home prices.
Consumer sentiment, as measured by the University of Michigan’s index, has improved significantly compared to the previous year but remains well below late 2010s levels. Additionally, it appears that high interest rates will persist for an extended period, posing challenges not only for households but also for businesses in need of fresh financing.
Nevertheless, for the time being, economic activities continue to progress steadily. The MetLife and U.S. Chamber of Commerce Small Business Index, which gauges confidence among small business owners, reached its highest level this quarter since the beginning of the pandemic. This score is roughly in line with late 2019 levels, with 66 percent of small businesses reporting that business conditions are healthy, and 72 percent expressing comfort with their cash flow, despite increased labor costs.
Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, observed, “Main Street employers are showing remarkable resiliency in the face of high inflation and a shortage of workers,” adding that small business owners are feeling more optimistic compared to a year ago, with recession fears receding and inflation gradually easing.
Throughout this year, there has been an ongoing struggle between an economy delivering greater-than-expected overall growth and the concerns of many American families still grappling with the impact of two years of significant increases in living costs. The reduction of federal aid and tax credits has led to an increase in poverty, and energy prices have experienced unpredictable fluctuations.
Most leading indicators, which aim to identify and predict significant shifts in the business cycle, still exhibit warning signs. However, some argue that these data may be influenced by the peculiarities of an economy returning to normalcy after the shock of the pandemic.
Michael Kantrowitz, chief investment strategist at Piper Sandler & Company, noted, “The reality of the business cycle is that there are only two times when ‘all’ the data are moving in the same direction: a recovery and a recession,” indicating that mixed and less clear data outside of these extreme phases should not be dismissed.
As markets grapple with uncertainty, many workers are advocating for a larger share of the still-expanding economic pie. While nonsupervisory employees have seen recent wage increases, private sector hourly workers are currently averaging approximately $17 per hour this year, according to payroll processor ADP. Nevertheless, many workers continue to feel that their wages do not adequately meet their needs.
Jonathan Quito, a 27-year-old ramp agent at La Guardia Airport, shared his perspective, stating that despite a $1 per hour raise last year, he finds it insufficient to cover the rising costs of living in New York City, including groceries, public transportation, and rent. He emphasized the importance of worker advocacy and unionization efforts to secure better wages and improved living conditions.
He concluded, “Eventually, you know, I want to be able to start my own family and stuff,” highlighting his aspiration for a more secure financial future.
In a groundbreaking move, Dalmia Bharat Group has achieved the distinction of becoming the first corporate entity in India to adopt a historic monument classified under the Green category of the Monument Mitras program. The Dalmia Bharat Group has undertaken the adoption of the iconic Red Fort, a 17th-century marvel located in Delhi, committing a staggering sum of INR 250 million (INR 25 crores) for a duration spanning five years. This remarkable achievement saw them outshine competitors like IndiGo Airlines and the GMR Group, securing one of the most prestigious contracts available through the Indian government’s ‘Adopt A Heritage’ initiative.
The adoption of the Red Fort in Delhi was made possible through the ‘Adopt a Heritage’ project, a visionary concept developed in collaboration with the Ministry of Tourism, Ministry of Culture, and the Archaeological Survey of India. This project was officially launched on September 27, 2017, coinciding with World Tourism Day, by President Ram Nath Kovind. It was conceived to provide corporate entities, public sector organizations, or individuals with the opportunity to become Monument Mitras, essentially friends of heritage sites. Through these adoptions, the Central Government seeks to facilitate the development of monuments, heritage sites, and tourist destinations across India.
Controversy Surrounding the Red Fort Adoption
The adoption of the Red Fort by the Dalmia Bharat Group has sparked vigorous debates among historians, writers, academicians, and cultural enthusiasts. These discussions revolve around the ethical implications of the project, with some critics questioning how the government could seemingly “pawn off” a significant portion of India’s historical legacy as if it were their “family heirlooms.” On the other hand, proponents argue that the monuments have merely been “adopted” and not “purchased,” emphasizing that this approach could ultimately reduce the government’s overseas loans by diverting funds from the maintenance of India’s heritage sites.
Prominent voices from both sides of the debate have shared their opinions:
“There’s a huge difference between Dalmia adopting, say, a haveli in Old Dilli and adopting the Red Fort itself. Tier 1 monuments are a nation’s crown jewels. They should not be played around with. It’s even more worrying that corporates cannot be held responsible for any damage.”
— William Dalrymple
“Main issue is interest, knowledge, and expertise. If a non-governmental entity has a proven track record in this area like the Aga Khan Trust, there is less of an issue. What is Dalmia’s track record of maintaining heritage monuments?”
— Patralekha Chatterjee
“If you hire someone to clean your house doesn’t mean you are selling your house to them. No, Red Fort is not being sold. It’s an innovative way to save the government some money and preserve a monument.” — Chetan Bhagat
Red Fort and Gandikota Fort: The Adoption Agreement
According to the Memorandum of Understanding, Dalmia Bharat Group is not only adopting the Red Fort but also the Gandikota Fort in Kadapa, Andhra Pradesh. This dual adoption arrangement represents a significant commitment to preserving India’s historical treasures. In the past, similar agreements were reached for the adoption of the Mt. Stok Kangri trek route in Ladakh, Jammu and Kashmir, as well as the Gangotri Temple Area & Trail in Gaumukh, Uttarakhand. These agreements were signed by the Adventure Tour Operators Association of India and the State of Jammu & Kashmir. In total, approximately 90 monuments have been earmarked for adoption, categorized as Green, Blue, and Orange based on their importance and popularity among tourists.
The Green category includes not only the Red Fort but also the Taj Mahal in Agra, Qutub Minar in Mehrauli, and the Konark Temple in Odisha. In the Blue category, you will find Jantar Mantar and Purana Quila, both located in Delhi, while the Orange category encompasses monuments like Tipu Palace in Bengaluru and the Sanchi Stupa in Madhya Pradesh. Entities interested in becoming Mitras can choose to adopt from the Blue or Orange category, or a combination of the three categories. However, they are not permitted to solely adopt monuments or heritage sites from the Green category.
Corporate Adoption of India’s Monumental Heritage
The Dalmia Bharat Group’s adoption of the Red Fort sets a significant precedent, but it is not an isolated instance. Letters of Intent have been awarded to several other prominent entities for the adoption of various monuments. Among them, the Sun Temple in Konark, Odisha, Udayagiri & Khandagiri Sites in Bhubaneshwar, Orissa, Gol Gumbaz in Bijapur, Karnataka, and Kotla Feroz Shah in Delhi have been chosen for adoption by the Dalmia Bharat Group.
Furthermore, a diverse array of industries, including hospitality, travel, and banking, have also received Letters of Intent for the adoption of other monuments. Some of the entities involved in this monumental initiative include Yes Bank, SBI Foundation, TK International Limited, Yatra Online Pvt Limited, ITC Hotels, and NBCC. These Letters of Intent have been issued in different phases to facilitate the adoption of over 90 heritage sites, contributing to the preservation and promotion of India’s rich historical legacy.
As New York City approaches a gradual recovery from the economic setbacks caused by the pandemic, Manhattan, the city’s financial hub, has reached a sobering milestone. It now boasts the most substantial income inequality of any large county in the United States.
In a city already renowned for its stark contrasts between opulent living and severe poverty, this widening income gap is particularly striking. According to 2022 census data, recently released this month and analyzed by demographic data firm Social Explorer, the top 20 percent of Manhattan residents had an average household income of $545,549. This is over 53 times the average income of the bottom 20 percent, who earned an average of $10,259.
Andrew Beveridge, President of Social Explorer, commented on this staggering inequality, noting, “It’s amazingly unequal.” He likened it to disparities seen in many developing countries. This income gap is the widest in the United States since 2006, when such data was first reported. Notably, the Bronx and Brooklyn also rank among the top 10 counties in the nation concerning income inequality.
This latest data reinforces the uneven nature of New York City’s recovery from the pandemic. While wages have risen across the city, the benefits have primarily accrued to the affluent. Jobs have returned, but many of these are low-paying positions. While unemployment has decreased, it remains significantly higher among Black and Hispanic residents. This dichotomy underscores a growing divide: the city is rebounding, but many of its residents are not.
James Parrott, Director of Economic and Fiscal Policy at the Center for New York City Affairs at the New School, stated, “We’re still much worse off than we were in 2019.”
The Department of Housing and Urban Development reports that nearly 20 percent of public housing residents in New York City earn less than $10,000.
Middle-income New Yorkers are also feeling the pinch. Roger Gunning, a 50-year-old sanitation worker and resident of public housing in the South Bronx, shared his struggles, saying, “I make $22 an hour, and I still can’t survive on my own in New York.” He noted that some of his co-workers are forced to live in temporary shelters.
Dr. Parrott explained that middle-income New Yorkers have been hit hard by stagnant wage growth in service jobs and the slow recovery of key industries, particularly retail, which experienced a more severe contraction in New York compared to most other parts of the country.
When adjusting for inflation, the median household income in New York City dropped to less than $75,000 between 2019 and 2022, marking nearly a 7 percent decrease. This decline is four times the national rate and represents the most significant income drop among major U.S. cities. For comparison, San Antonio experienced just over a 5 percent drop, with median household income falling below $59,000. Phoenix, on the other hand, saw a significant improvement with an almost 8 percent increase in median household income, reaching nearly $76,000.
Chino Zeno, a 21-year-old construction worker earning $23 per hour installing solar panels, expressed his frustration with the impact of inflation on his finances. To cover rising costs of food and gas and help with expenses at his family’s apartment in East New York, Brooklyn, he also works as a freelance photographer. Despite a recent pay increase, which followed his transition from a part-time warehouse job earning $16 per hour in 2021, he still finds it necessary to hold down a second job.
Zeno summed up the challenge many New Yorkers face, stating, “One hundred is the new $20 bill. It’s hard for people right now.”
The already affluent have benefited the most from rising wages, according to labor data analyzed by the Center for New York City Affairs. Low-paid workers, like restaurant servers and child care professionals, who made an average of $40,000 last year, saw their salary increase by just $186 every year from 2019 to 2022, when adjusted for inflation. But highly paid earners, who made an average of $217,000 in fields like technology and finance, received an average pay bump of $5,100 in each of those years, or 27 times more, in extra income, than low-wage earners.
Picture: NYT
A recent analysis of labor data by the Center for New York City Affairs reveals a stark contrast in wage growth between the already well-off and low-paid workers. While highly paid earners in fields such as technology and finance, who averaged $217,000 annually, enjoyed an average pay increase of $5,100 each year from 2019 to 2022, their low-wage counterparts, including restaurant servers and child care professionals with an average income of $40,000, saw a meager salary rise of just $186 annually when adjusted for inflation.
The city has made significant strides. In August, the labor force participation rate was at a record high, and the unemployment rate was 5.3 percent, down from a pandemic peak of over 21 percent in May 2020. But New York has yet to fully recoup the jobs lost since the pandemic, while much of the nation already has, in part because the virus struck the city sooner and businesses, including those tied to hospitality and tourism, remained closed longer, Dr. Parrott said. Other popular entry-level jobs like couriers and home health aides have seen their wages lose ground to inflation.
Despite notable progress in New York City, including a record-high labor force participation rate and a decreased unemployment rate of 5.3 percent in August, down from its pandemic peak of over 21 percent in May 2020, the city has not completely recovered the jobs lost during the pandemic. This lag in recovery is attributed in part to the city being hit by the virus earlier than other areas and the extended closures of businesses tied to the hospitality and tourism sectors. Additionally, wages for popular entry-level jobs like couriers and home health aides have failed to keep pace with inflation.
Charles Lutvak, a spokesman for the mayor’s office, credited the job growth to initiatives like the expansion of youth employment and apprenticeship programs. “But we have more work to do, and we won’t stop until every New Yorker has access to a quality, family-sustaining job,” he said in a statement.
Charles Lutvak, spokesperson for the mayor’s office, attributed the city’s job growth to various initiatives, including the expansion of youth employment and apprenticeship programs. He emphasized their commitment to continue working toward ensuring that all New Yorkers have access to quality, family-sustaining employment opportunities.
Wage growth has been stunted for many New Yorkers in part because the minimum wage, set at $15 an hour, has not increased since 2019, Dr. Parrott said. Among the 10 largest American cities, five have raised their minimum pay in that period by an average of 25 percent, and four of them have higher minimum wages than New York City.
Wage growth in New York City has been hampered, in part, by the stagnant minimum wage, which has remained at $15 per hour since 2019, according to Dr. Parrott. In contrast, five of the ten largest American cities have increased their minimum wages by an average of 25 percent during the same period, with four of them now surpassing New York City’s minimum wage.
Many labor groups are pushing for a $21-an-hour minimum wage, which itself could fall short of the cost of living, because the city does not scale pay to inflation, said Gregory Morris, the chief executive of the New York City Employment and Training Coalition, an association of work force development groups. Next year, New York State will raise the minimum to $16 an hour in the greater New York City area and $15 statewide. In 2027, the minimum wage will be pegged to inflation.
Several labor organizations are advocating for a $21-per-hour minimum wage, although this amount may still not adequately cover the cost of living, as the city does not adjust wages for inflation, according to Gregory Morris, CEO of the New York City Employment and Training Coalition, a consortium of workforce development organizations. In the upcoming year, New York State plans to increase the minimum wage to $16 per hour in the greater New York City area and $15 statewide, with provisions to peg it to inflation in 2027.
“This is a working people’s city, as the mayor points out, but I think the question now is, which working people?” Morris asked.
Gregory Morris posed a crucial question, noting that New York City has long been characterized as a city of working people. However, he raised concerns about which segments of the working population are truly benefitting from the city’s economic growth.
For Khadijah Bethea, 42, a single mother raising three children on the Lower East Side of Manhattan, finding work is not the problem. It’s the hours.
Khadijah Bethea, a 42-year-old single mother raising three children in Manhattan’s Lower East Side, doesn’t struggle to find work; rather, her challenge lies in the demanding hours associated with her employment.
After losing her job as a security guard at a bank in 2020, she started working as a server for catering events around the city — up to 70 hours a week, seven days a week.
Following her job loss as a bank security guard in 2020, Khadijah Bethea transitioned to working as a server at various catering events across the city. Her new role required her to put in long hours, often up to 70 hours per week, working every day.
At over $25 an hour, the jobs were worthwhile, but all-consuming, she said. “I caught a bad anxiety attack one day. You worry about not spending enough time with your children, so I said, ‘I need to find something else to do.’”
While the pay for her server role exceeded $25 per hour, Khadijah found the job to be all-consuming and stressful. She experienced a severe anxiety attack, leading her to reflect on the importance of spending time with her children and prompting her to seek alternative employment.
Ms. Bethea enrolled earlier this year in a 14-week career training program run by Henry Street Settlement and Stacks + Joules, two nonprofit organizations. The free program helps lower-income job seekers find work in heating and ventilation system management for large buildings.
Earlier this year, Khadijah Bethea enrolled in a 14-week career training program offered by two nonprofit organizations, Henry Street Settlement and Stacks + Joules. This program, which is free of charge, assists individuals with lower incomes in securing employment related to heating and ventilation system management for large buildings.
She graduated in May and is now enrolled in another training program that pays $20 an hour — less than she made waiting tables — but has the opportunity for career growth and the possibility of working remotely some days. For now, she still works about four catering gigs a week.
Khadijah successfully completed the program in May and has since joined another training program that offers a wage of $20 per hour. Although this is less than what she earned as a server, the position presents opportunities for career advancement and the potential to work remotely on certain days. Currently, she continues to work approximately four catering jobs each week.
A significant dilemma for job seekers is that taking the time to learn new skills can be costly, especially in an expensive city like New York, said Anisee Alves-Willis, a program director for YouthBuild, a six-month employment program through St. Nicks Alliance, a nonprofit community services group.
One significant challenge faced by job seekers is the expense associated with acquiring new skills, particularly in a costly city like New York. Anisee Alves-Willis, a program director for YouthBuild, a six-month employment program offered by the nonprofit community services group St. Nicks Alliance, highlighted this dilemma.
The time commitment is a luxury many low- and middle-income workers can’t afford, even when stipends are included.
Even when stipends are provided, the time commitment required for skill development can be a luxury that many low- and middle-income workers cannot afford.
Angelita Mendez, 35, a beautician who moved to Washington Heights in Manhattan from the Dominican Republic in 2021, began taking free English lessons last year with a nonprofit service provider.
Angelita Mendez, a 35-year-old beautician who relocated from the Dominican Republic to Washington Heights in Manhattan in 2021, initiated free English lessons with a nonprofit service provider in the previous year.
She only made it about halfway through the course before bills started to pile up — the $1,600 a month rent she splits with her mother, the $1,100 a month she pays to lease a booth in a salon and the rising cost of groceries for her two children. She makes about $600 a week, or around $31,000 a year.
Angelita Mendez was unable to complete the English course as financial pressures began mounting. She shares a monthly rent of $1,600 with her mother, incurs a monthly expense of $1,100 for leasing a booth in a salon, and faces increasing grocery costs for her two children. Her weekly income amounts to roughly $600, equivalent to an annual income of around $31,000.
“I don’t have the time to do it, honestly,” she said in Spanish, but hopes to one day return to the class, become proficient in English and use her skills to study cosmetology.
Expressing her circumstances in Spanish, Angelita Mendez revealed that she currently lacks the time to continue her English lessons. Nevertheless, she aspires to return to the course at some point, attain proficiency in English, and leverage her language skills to pursue studies in cosmetology.
Where would her newfound skills take her?
Probably New Jersey, she said — where it’s cheaper.
Angelita Mendez anticipates that her newly acquired skills could lead her to opportunities in New Jersey, where the cost of living is more affordable.
The analysis of labor data in New York City reveals significant disparities in wage growth, with higher-income earners experiencing substantial pay increases while low-wage workers struggle to keep up with inflation. Although the city has made progress in terms of employment rates, the recovery of lost jobs from the pandemic remains a challenge, particularly for certain industries. Calls for a higher minimum wage and concerns about the affordability of skill development programs highlight the difficulties faced by many low- and middle-income workers in the city. Despite these challenges, individuals like Khadijah Bethea and Angelita Mendez are taking steps to improve their career prospects and financial stability, emphasizing the importance of accessible training programs and affordable living conditions in the city.
The US government and 17 states are taking legal action against Amazon in a significant monopoly case that highlights years of allegations surrounding the e-commerce giant’s misuse of its economic dominance and its impact on fair competition.
This groundbreaking lawsuit has been jointly filed by the Federal Trade Commission (FTC) and 17 state attorneys general. It represents the most aggressive move to date against Amazon, a company that originally started as an online bookstore but has since grown into a global e-commerce behemoth, often referred to as the “everything store.” Amazon has expanded its operations to include the sale of a wide range of consumer products, established a far-reaching logistics network, and ventured into other technological domains, including cloud computing.
The 172-page complaint alleges that Amazon engages in unfair practices that prioritize its own platform and services at the expense of third-party sellers who rely on the company’s e-commerce marketplace for distribution. One example highlighted by the FTC is Amazon’s requirement for sellers on its platform to use Amazon’s in-house logistics services to qualify for benefits like “Prime” eligibility. Additionally, the complaint contends that Amazon unfairly compels sellers to list their products on Amazon at the lowest prices available anywhere online, rather than allowing them to offer their products at competitive prices on other platforms.
These practices have already been the subject of a separate lawsuit filed against Amazon by the Attorney General of California last year. Due to Amazon’s dominant position in e-commerce, sellers often feel compelled to accept Amazon’s terms, which, according to the FTC, results in higher prices for consumers and a less favorable shopping experience. The FTC also alleges that Amazon prioritizes its own products in search results over those of third-party sellers.
FTC Chair Lina Khan emphasized that Amazon is aggressively focused on preventing others from achieving the same level of customer reach it has. She stated, “This complaint reflects the cutting edge and best thinking on how competition occurs in digital markets and, similarly, the tactics that Amazon has used to suffocate rivals, deprive them of oxygen, and really leave a stunted landscape in its wake.”
Seventeen states are participating in this legal action: Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Hampshire, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, and Wisconsin.
The complaint has been filed in the US District Court for the Western District of Washington, and it seeks a court order to halt Amazon’s alleged anticompetitive behavior. While the FTC has not ruled out the possibility of breaking up Amazon, the focus at this stage is primarily on determining liability. The complaint, however, does suggest that any court order could potentially include “structural relief,” referring to the possibility of breaking up Amazon.
Furthermore, the FTC has not ruled out the idea of holding individual Amazon executives personally responsible if there is sufficient evidence of their involvement in the alleged anticompetitive conduct.
This lawsuit against Amazon follows similar actions taken against other tech giants like Google and Meta, marking a growing trend of government scrutiny and antitrust allegations against major tech companies. The legal proceedings are expected to be protracted, but they underscore the increasing global scrutiny and concerns regarding the market power of Big Tech companies.
In response to the FTC’s allegations, David Zapolsky, Amazon’s Senior Vice President of Global Public Policy and General Counsel, defended the company’s practices, stating that Amazon has contributed to competition, innovation, and product variety in the retail industry. He argued that Amazon has facilitated lower prices, faster delivery, and opportunities for small businesses to sell their products.
Zapolsky also warned that if the FTC’s lawsuit succeeds, it could lead to higher prices for consumers, slower delivery times, and increased costs for Amazon’s operations, which might result in higher Amazon Prime subscription fees and less convenience for customers.
Over the years, Amazon has faced criticism from various quarters, including US lawmakers, European regulators, third-party sellers, consumer advocacy groups, and others. These critics have accused the company of a range of issues, including mistreatment of its workers and the imposition of anticompetitive terms on third-party sellers.
The FTC’s lawsuit, however, is more focused and takes aim at Amazon’s conduct in two specific markets: the “online superstore” market, where Amazon’s actions are alleged to harm consumers, and the “online marketplace services” market serving independent sellers. The complaint also highlights Amazon’s self-promotion of its own products in search results, which it believes is linked to the anticompetitive behavior under scrutiny.
This lawsuit represents a significant moment in FTC Chair Lina Khan’s career, as she has been at the forefront of efforts to scrutinize and regulate Amazon and other tech giants for antitrust violations. Khan’s leadership at the FTC has led to a more aggressive enforcement stance, particularly in the tech industry.
The lawsuit against Amazon by the FTC and 17 states is a pivotal development in the ongoing debate over the market power of tech giants. It underscores the government’s increasing focus on antitrust issues in the digital marketplace and raises significant questions about the future of Amazon and other major technology companies.
Dubai National Insurance (DNI), a prominent player in the insurance sector of the United Arab Emirates (UAE), has unveiled its new Chief Executive Officer (CEO), A. R. Srinivasan, a distinguished chartered accountant hailing from India. This strategic appointment marks a significant development for the company and reflects DNI’s commitment to enhancing its leadership.
Before taking the reins at DNI Insurance, Srinivasan played a pivotal role in establishing the Dubai International Finance Centre (DIFC) subsidiary of MNK Re Limited, a distinguished Lloyd’s Broker with its roots in London. With nearly three decades of experience in senior management roles across the Middle East, Srinivasan possesses a nuanced understanding of the insurance landscape in the region. His extensive insurance career has spanned several countries, including India, Oman, Dubai, and Bahrain, where he held leadership positions such as CEO of DAR Al TAKAFUL in Dubai, CEO of Arabia Falcon in Oman, and Al Ahlia Insurance Oman.
Khalaf Al Habtoor, the Chairman of DNI, expressed his enthusiasm about the appointment, stating, “The entire team at DNI Insurance is excited about the new chapter under Srinivasan’s leadership. His depth of knowledge, strategic vision, and proven ability to drive transformation align seamlessly with the company’s commitment to excellence and innovation.” This appointment signifies DNI’s dedication to maintaining a trajectory of excellence in the insurance sector.
Al Habtoor further added, “Under Srinivasan’s guidance, DNI Insurance is poised to reinforce its position as a pioneer in the insurance sector, delivering innovative solutions and outstanding service to clients while achieving new heights of prosperity.” This sentiment underscores the company’s aspirations to not only maintain its current standing but also to innovate and expand its offerings under Srinivasan’s leadership.
Srinivasan himself shared his perspective on the new role, expressing his honor at being selected as CEO of DNI. He conveyed his eagerness to leverage his extensive experience and expertise to drive transformative growth, establish enduring partnerships, and deliver unmatched value to both clients and stakeholders. In his words, “Together, we will navigate the evolving landscape and chart a course towards continued success.”
Furthermore, Srinivasan expressed gratitude towards Mr. Al Habtoor and the board for entrusting him with this pivotal role and exhibiting confidence in his capabilities to steer the company. He eagerly anticipates working closely with the board, the team, and business partners to realize DNI’s ambitious goals.
Dubai National Insurance has appointed A. R. Srinivasan as its new CEO, ushering in a fresh era of leadership for the company. Srinivasan’s extensive experience and strategic acumen position him as a formidable leader to drive DNI’s growth, innovation, and commitment to excellence in the insurance sector. The company’s Chairman, Khalaf Al Habtoor, and Srinivasan himself expressed their enthusiasm for this new chapter, highlighting the company’s dedication to delivering superior service and achieving new heights under Srinivasan’s guidance. This appointment signifies a significant step forward for DNI Insurance as it seeks to solidify its position as an industry pioneer.
In the wake of Evergrande’s Chapter 15 bankruptcy filing in New York City, another major player in China’s real estate sector, Country Garden, is now facing a similar fate. Renowned as China’s leading real estate developer based on sales, Country Garden’s financial struggles are spotlighting the country’s escalating debt crisis. Experts predict that without intervention, the company may default on its bond payments, exacerbating the ongoing turmoil in China’s real estate market.
According to a report by Caixin Global, a prominent Chinese business news agency, Country Garden is on the brink of defaulting on its bond payments scheduled for next month. This dire situation necessitates either the support of a rescuing entity or an extension of the grace period. The company is grappling with three bonds, collectively valued at 7.3 billion renminbi (approximately $1 billion), set to mature or with put options commencing in September. The urgency of the matter is highlighted by a payment due imminently, coinciding with the end of the grace period for a missed payment in early August.
Picture: Wall Street Survivor
Major global asset managers, including BlackRock, Allianz, Fidelity, and Ashmore Group, have invested substantial sums in Country Garden bonds. These investments underscore the interconnectivity of global financial markets and the potential ripple effects of the company’s struggles. BlackRock alone holds around $358.5 million worth of Country Garden bonds, while Allianz’s holdings amounted to $301 million as of June. The involvement of these financial giants raises concerns about potential financial losses and repercussions.
Country Garden’s stock is a component of the iShares MSCI Core Emerging Markets exchange-traded fund (EMG), further interlinking its fortunes with broader market dynamics. The company’s chairwoman, Yang Huiyan, was previously recognized as China’s wealthiest woman, with her family’s net worth estimated at $4.4 billion.
The predicament Country Garden finds itself in is reminiscent of its failure to fulfill a $22.5 million interest payment on dollar-denominated bonds on August 7. Despite these struggles, Beijing’s reluctance to provide financial support is evident, as reported by Reuters. However, the trajectory of these events remains uncertain, as the Chinese government may be compelled to intervene if more real estate firms face distress, impacting China’s economic stability.
Alicia Garcia-Herrero, Chief Economist for Natixis, highlighted the unexpected nature of Country Garden’s predicament, given its comparatively lower leverage compared to Evergrande. She stressed that sustainable growth in the real estate sector hinges on continual increases in housing prices, cautioning that even a robust company like Country Garden could falter without such growth.
Pushan Dutt, an economics professor at INSEAD business school, suggested that a Chinese government bailout for Country Garden is probable, considering the company’s significance within the nation’s real estate sector. The sector constitutes about 30% of China’s gross domestic product (GDP), making its stability crucial for the country’s overall economic health. However, the potential for such bailouts presents a challenge for President Xi Jinping, who remains wary of excessively pumping money into the economy.
China’s deliberate efforts to attract Western bond funds and open its market to foreign investors have contributed to the intertwining of global financial interests. Western asset managers have been active purchasers of Chinese government and private bonds, offering investment-grade alternatives to their lower-yielding Western counterparts. Yet, the risks associated with investing in China’s real estate market were acknowledged for years, with concerns raised about a potential “China hard landing.”
Amid the uncertainty, the role of the US government and the potential support for investors remains questionable. China’s increasing economic risks have prompted Congress to scrutinize China investments, with discussions on capital restrictions taking center stage. While investors seek possible stimulus and rate cuts, the Chinese government’s actions will depend on its assessment of the nation’s economic resilience and the extent of potential economic distress.
As both Evergrande and Country Garden face tumultuous times, the outcomes of these crises will likely have far-reaching implications. Despite the tumult, some experts remain optimistic about China’s ability to recover, anticipating an increase in consumer confidence as debt-related issues are resolved.
Chinese exporters have adopted a sophisticated currency swap strategy to avoid converting their dollar earnings into yuan due to concerns about potential losses in the weakening local currency, as revealed by official data and discussions with industry insiders.
China’s state-owned banks are involved in some of these swap transactions, allowing exporters to convert their dollar earnings into yuan through contractual agreements, indicating a level of comfort from the country’s currency regulator. This practice persists even as authorities attempt to alleviate the mounting pressure on the yuan in the spot markets.
Ding, a Shanghai-based businessman dealing in electronics and toys, is among those exporters who are holding onto their dollar earnings, hesitating to convert them into yuan. The recent depreciation of the yuan, which has hit nine-month lows, has raised concerns among exporters like Ding. He expressed this apprehension, saying, “The key concern is that the price of the dollar keeps going up.”
The yuan has experienced a depreciation of over 5% against the U.S. dollar so far this year, with a 2% drop recorded in just the past month. This decline is exacerbated by foreign capital fleeing from China’s weakening economy.
Picture: South China Morning Post
These swaps enable exporters to deposit their dollars with banks and receive yuan in return, but with a contractual agreement that will eventually reverse the transaction, returning their dollars. However, despite the impact of these swaps on the supply of dollars in the spot yuan markets, analysts believe that Chinese monetary authorities cannot compel exporters to convert their dollars.
In July alone, Chinese companies engaged in a record $31.5 billion worth of dollar-yuan swaps with commercial banks in the onshore forwards market. This year, the total figure stands at $157 billion, according to data from China’s currency regulator.
Initially, Ding had plans to convert his dollar holdings when the yuan weakened beyond 7 yuan per dollar, a threshold the local currency had breached only three times since the 2008 Global Financial Crisis. However, his decision shifted as expectations grew regarding the Federal Reserve’s intent to maintain higher U.S. interest rates for an extended period and the continued weakness of the yuan, which is seeing its yields decline as China adopts a more lenient monetary policy to support its struggling economy.
“The growing monetary policy divergence is the key reason behind the trend,” explained Gary Ng, Senior Economist for Asia Pacific at Natixis. “As it is unlikely to see any fundamental change in the short run, the gravity of yield differentials will drag the yuan and prompt exporters to bet on the dollar.”
The increasing gap between rising U.S. yields and Chinese rates has reversed rates in the currency forwards market. This means that exporters have no incentive to lock in a forward rate to sell their dollars, with the one-year yuan being quoted at 7.02 per dollar, compared to a spot rate of 7.29.
Traders have noted that the State Administration of Foreign Exchange allows sell-buy dollar-yuan swaps as long as companies use their own funds. When exporters swap higher-yielding dollars for the cheaper yuan, even for a short period of three months, they acquire the local currency for business needs and also earn an annualized 3.5% on the swap deal.
Becky Liu, Head of China Macro Strategy at Standard Chartered Bank, elaborated, “By trading FX swaps, exporters can postpone their settlements while meeting their yuan demand.”
An alternative option, albeit less lucrative, is for exporters to deposit their dollars at 2.8% interest and use these deposits as collateral for yuan loans, resulting in net gains of approximately 2%.
Despite Chinese lenders reducing their dollar deposit rates twice this year to discourage hoarding and encourage exporters to convert dollars into yuan, more exporters are turning to swaps. Even China Merchants Bank, which is partially state-owned, promotes the use of swaps. The bank stated, “If companies want to retain their dollar deposits, they can sign up for foreign exchange swap products to increase the returns on dollar deposits.”
Meanwhile, China’s central bank has intensified its efforts to support the yuan by consistently setting stronger-than-expected yuan mid-point benchmarks over several months. It has also urged domestic banks to reduce their overseas investments.
In contrast, exporters’ swaps provide state banks with a reservoir of dollars to utilize in their yuan operations. This includes engaging in swaps to acquire dollars from the onshore forwards market and selling them in the spot market to curb rapid declines in the yuan’s value.
At a time when the Supreme Court is hearing the Adani Group-Hindenburg case, the business conglomerate was on Thursday hit by fresh allegations that it used family associates to secretly invest hundreds of millions of dollars through “opaque” Mauritius-based investment funds to fuel the spectacular rise in group stocks.
Citing a review of files from tax havens and internal Adani Group emails, the Organised Crime and Corruption Reporting Project (OCCRP) said two individual investors with “longtime business ties” to the Adani family used such offshore structures to buy and sell Adani shares between 2013 and 2018 — a period during which the ports-to-energy conglomerate saw meteoric rise to become India’s largest and most powerful businesses.
OCCRP is a non-profit global network of investigative journalists funded by Hungarian-American billionaire and philanthropist George Soros.
Picture : Eligibility
OCCRP said Nasser Ali Shaban Ahli from the UAE and Chang Chung-Ling from Taiwan spent years trading Adani group stock worth hundreds of millions of dollars through two Mauritius-based funds that were overseen by a Dubai-based company run by a known employee of Vinod Adani.
Market regulator SEBI had been handed evidence in early 2014 of alleged suspicious stock market activity by the Adani Group, OCCRP said citing a letter.
U K Sinha, who was then heading SEBI, is now a director and chairperson of an Adani-owned news channel.
The fresh broadside, which comes months after US short-selling firm Hindenburg Research published an explosive report in January that accused Adani Group of running the “largest con in corporate history”, sent all 10 listed Adani stocks down.
Shares of nine out of 10 Adani group companies closed in the red on Thursday, taking a combined hit of Rs 35,708 crore in market valuation after the OCCRP report. More here
On the OCCRP allegations, the Group on Thursday termed them as “recycled allegations” and called them “yet another concerted bid by (George) Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report”.
Opposition parties, which stalled proceedings in Parliament for nearly one full session when the Hindenburg allegations first came out, were quick to latch on to the OCCRP to attack the government and Adani Group.
Maintaining that India’s reputation is at stake ahead of the G20 Summit, Congress leader Rahul Gandhi asked why PM Modi was silent on the allegations and demanded a probe by a joint parliamentary committee (JPC).
Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”), has announced that Dr. Joseph Chalil, MD, MBA, FACHE, Novo’s Chief Medical Officer, will represent Novo and Acenzia as a member of the Team Canada Trade Mission to India slated for October 2023, led by the Honorable Mary Ng, Canada’s Minister of International Trade, Export Promotion, Small Business and Economic Development.
Dr. Chalil, the Publisher of The Universal News network (www.theunn.com) will repersent Acenzia, a nutraceutical manufacturer and a Canadian subsidiary of Novo, at the Trade Mission to India.
For Acenzia, being selected to be a member of this Canada-India Trade Mission is an honor and validates Acenzia’s dedication to introducing its high-quality evidenced-based dietary, nutraceutical, and food products to a rapidly growing consumer base.
The Canada-India Trade Mission, scheduled to visit Mumbai, Bangalore, and Hyderabad, India from October 8-14, 2023, is an important component of Canada’s Indo-Pacific strategy to deepen bilateral trade and to further expand the economic partnership between Canada and India, while also recognizing the critical importance of the Indo-Pacific region for Canada’s prosperity.
The Indo-Pacific region encompasses 40 economies, over 4 billion people, and $47.19 trillion in economic activity, and it represents over one-third of all global economic activity. As India and the Indo-Pacific burgeoning middle class expands, so does the demand for access to high-quality healthcare related services, devices, information, and products.
Robert Mattacchione, Novo’s CEO and Chairman of the Board, stated, “It is both an honor and significant opportunity for our company to have been selected to participate as an invited member of the Team Canada Trade Mission to India. We are excited to showcase the potential of our company and begin the process of nurturing the opportunities and the relationships this initiative will bring to light.”
Acenzia’s 36,000 square foot facility is located in Windsor Ontario Canada and includes Class 100 pharmaceutical grade cleanrooms and certified laboratories from which Acenzia creates and manufactures evidenced-based dietary, nutraceutical, and food products that can be validated through personalized diagnostics. Acenzia is dedicated to the creation of innovative therapeutics and diagnostics that enables individualized health optimization.
Dr. Chalil is an author and the Chief Strategy Officer of the American Association of Physicians of Indian Origin. He is also the Chief Medical Officer of Novo Integrated Sciences, a Nasdaq-listed company that runs hundreds of clinics in North America. He is also the President of Clinical Consultants International. He serves as the chairman of the health system advisory board, a professor at the college of business, and a member of the NSU MD executive leadership council at Nova Southeastern University in Florida.
His book, “Beyond the Covid-19 pandemic: Envisioning a Better World by Transforming the Future of Healthcare, was an Amazon Best Seller. In addition, he is the author of several scientific and research papers in international publications and the publisher of “The Universal News Network.”
Acenzia, founded in 2015, is licensed by multiple international government agencies including Health Canada, the U.S. FDA, and the European Union for Good Manufacturing Practices (GMP) for over-the-counter and dietary supplement manufacturing. In addition, Acenzia maintains multiple third-party licenses including from the National Sanitation Foundation International (NSF) for meeting the required public health standards for manufacturing food, nutrition, and supplements. For more information, please visit www.acenzia.com
Novo Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver, these services and products through the integration of medical technology, advanced therapeutics, and rehabilitative science.
The Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic healthcare delivery to patients and consumers:
First Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an affiliate network of clinic facilities, (ii) small and micro footprint sized clinic facilities primarily located within the footprint of box-store commercial enterprises, (iii) clinic facilities operated through a franchise relationship with the Company, and (iv) corporate operated clinic facilities.
Second Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology, interfacing the patient to the healthcare practitioner thus expanding the reach and availability of the Company’s services, beyond the traditional clinic location, to geographic areas not readily providing advanced, peripheral based healthcare services, including the patient’s home.
Third Pillar: Products. Develop and distribute effective, personalized health and wellness product solutions allowing for the customization of patient preventative care remedies and ultimately a healthier population. The Company’s science-first approach to product innovation further emphasizes our mandate to create and provide over-the-counter preventative and maintenance care solutions.
Innovation through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting-edge advancement in patient-first platforms.
For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com.
In a landmark proclamation, Governor JB Pritzker officially declared August 25, 2023, as “Redberri T-Hub Innovation Center Day in the State of Illinois”. This proclamation celebrates the partnership between the Redberri Earth Foundation, a renowned Illinois non-profit organization Founded by Indian Philanthropist & Civic Leader Deepak Kant Vyas promoting social and economic entrepreneurship for over 30 years, and T-Hub, the world’s largest innovation ecosystem campus. The collaboration has led to the establishment of the Redberri T-Hub Innovation Center Foundation in Chicagoland, a groundbreaking initiative aimed at fostering startup ecosystems in the United States. Illinois Senate President Don Hormon Honored Redberri Earth Foundation in Senate Proclamation, Senator Laura Murphy, Dy. Leader Illinois Senate issued a Proclamation in honor of the Redberri Innovation Center. Illinois Deputy Governor Christie George and Illinois Secretary of Commerce Kristin Richards had a productive meeting with a visiting delegation led by Hon. K T Rama Rao – Visionary leader, Minister of IT & Technology who inspired creation of REdberri Thub Innovation Center to support Indian Start-up companies soft landing in USA, Technology breakthrough with collaboration of academic institutions and corporate world.
This endeavor has been made possible through the generous endowment from the Deepak Kany Vyas Family. The Redberri T-Hub Innovation Center Foundation marks a significant milestone in the efforts to cultivate entrepreneurship and innovation on a global scale. This partnership exemplifies the importance of collaboration between private, non-profit, and governmental entities to promote vibrant start-up & innovation ecosystem. drive economic growth and technological advancement.
Redberri Innovation Center is the vision of Founder & Chairman Deepak Kant Vyas to create lasting legacy in Chicagoland through generous endowment from Deepak Kant Vyas family. 57,000 square feet state of art Redberri Innovation center one the largest Innovation ecosystem in the North America to provide vibrant start-upo & innovation collaboration, Market readiness and platform for enabling start-up companies to pitch their company to Venture Fund & Private Equity companies in a thriving growth environment will soon feature:
Idea to Productization Council: This will support startups to incubate ideas into commercially acceptable product launch – First of its kind project supported by over 18 Academic Institutions in USA & India. Fashion & Design Incubator: Fashion Industry is fastest growing sector worldwide, Launching Fashion & Design Incubator will support upcoming designer with access to Fashion Ramp, with democratization of the fashion Show many design & fashion startups will benefit from successful launch of their designs
The inaugural event of the Redberri T-Hub Innovation Center hosted a delegation of government leaders from Telangana, India, led by K.T Rama Rao, the Minister of Technology and Industry, to acknowledge and celebrate the launch of this transformative initiative. The Innovation Center is poised to strengthen the bond between Illinois and the State of Telangana, leveraging the shared innovative, entrepreneurial spirit and fostering international relationships that will drive progress in both regions.
Illinois and Telangana boast some of the fastest-growing innovation ecosystems in the world, promoting a vibrant startup culture that transcends borders. The Redberri T-Hub Innovation Center will provide a platform for over 100 startups to invest in Illinois, resulting in the planned creation of more than 1830 jobs within the Chicagoland area in the next 24 months. This infusion of entrepreneurial energy will not only contribute to economic development but also further and establish Illinois as a hub for innovation and technology.
Governor JB Pritzker’s proclamation is a testament to the state’s commitment to nurturing innovation, entrepreneurship, and collaboration on a global scale. The Redberri T-Hub Innovation Center Day serves as a reminder of the potential that arises when visionary organizations and government entities join forces to foster growth and drive positive change.
Illinois Senator Sue Rezin, State Representative Mark Walker, Senator Laura Murphy were represented by her Chief of Staff, City of Sandwich Administrator, Matt Kellogg, Chairman Kendall County Board and many Civic leaders and Business Leaders attended the event along with our partners World Business Chicago & Illinois department of commerce. Redberri Earth Foundation and Redberri T-Hub Innovation Center Foundation is part of Redberri Earth Foundation, Illinois-based non-profit organizations dedicated to promoting social and economic entrepreneurship. Committed to fostering innovation and sustainable solutions, the foundations actively collaborate with partners from around the world to drive positive change.
T-Hub is the world’s largest innovation ecosystem that provides resources and support to startups, corporations, and governments. With a mission to catalyze innovation and entrepreneurship, T-Hub connects various stakeholders to create a thriving ecosystem that fuels technological advancements and economic growth.
Several persons of Indian heritage have been featured on Forbes’ 50 Ver 50 List for 2023, released last week. S. Mona Sinha: From Corporate Success to Advocating Women’s Rights, Makes Forbes 50 Over 50 List
Friend of Indiaspora, S. Mona Sinha has secured a spot on the Forbes 50 Over 50 List for her impactful work. At 57, Sinha leads Equality Now as the global executive director, leveraging her experience from companies like Morgan Stanley, Goldman Sachs, and Unilever to drive the NGO’s mission for women’s and girls’ rights worldwide. Her achievements include reforming rape laws in Latin America and the Caribbean and child marriage laws in Africa and the Middle East, along with her contributions to various organizations and boards dedicated to gender equality and women’s empowerment. Her journey from volunteering at Mother Teresa’s orphanage in Kolkata, India, to her current influential role reflects her dedication to humanitarian efforts.
Nikki Haley
In February of 2023, Nikki Haley announced her intent to become the Republican party’s candidate for U.S. president.
Two days after her announcement, former CNN host Don Lemon ignited an online firestorm after implying Haley, a woman in her 50s, wasn’t “in her prime.” Haley reclaimed “in my prime” as a campaign trail rallying cry.
The daughter of Indian immigrants, Haley became the first Indian American to serve in a presidential cabinet when she was sworn in as U.S. ambassador to the United Nations in 2017.
She served as governor of South Carolina from 2010 to 2014. Of the 117 governors in South Carolina’s history, she is the only woman and only person of color to have led the state.
Haley grew up in South Carolina and graduated from Clemson University with a bachelor’s degree in accounting.
About Her:
In February of 2023, Nikki Haley announced her intent to become the Republican party’s candidate for U.S. president.
Two days after her announcement, former CNN host Don Lemon ignited an online firestorm after implying Haley, a woman in her 50s, wasn’t “in her prime.” Haley reclaimed “in my prime” as a campaign trail rallying cry.
The daughter of Indian immigrants, Haley became the first Indian American to serve in a presidential cabinet when she was sworn in as U.S. ambassador to the United Nations in 2017.
She served as governor of South Carolina from 2010 to 2014. Of the 117 governors in South Carolina’s history, she is the only woman and only person of color to have led the state.
Haley grew up in South Carolina and graduated from Clemson University with a bachelor’s degree in accounting.
Sarita Mohanty
In 2021, at 50, Sarita Mohanty became the second CEO and president of The SCAN Foundation, a California-based healthcare nonprofit focused on improving care for older adults through policy, impact investing and grantmaking.
Mohanty came to the foundation from Kaiser Permanente, where she served as vice president of care coordination for Medicaid and vulnerable populations.
At Kaiser, she led the development of Thrive Local, a referral network of health systems, government agencies and community groups that provide social services, including housing, food and utilities.
She completed medical school at Boston University and residency at Beth Israel Deaconess Medical Center. She holds an M.P.H. from Harvard University and an M.B.A. from UCLA.
About Her:
In 2021, at 50, Sarita Mohanty became the second CEO and president of The SCAN Foundation, a California-based healthcare nonprofit focused on improving care for older adults through policy, impact investing and grantmaking.
Mohanty came to the foundation from Kaiser Permanente, where she served as vice president of care coordination for Medicaid and vulnerable populations.
At Kaiser, she led the development of Thrive Local, a referral network of health systems, government agencies and community groups that provide social services, including housing, food and utilities.
She completed medical school at Boston University and residency at Beth Israel Deaconess Medical Center. She holds an M.P.H. from Harvard University and an M.B.A. from UCLA.
Alka Joshi
In 2020, at 62, Alka Joshi published her debut novel, The Henna Artist. She began writing the book in 2010, but the ten years of work paid off: It became a global phenomenon, hitting the New York Times bestseller list and translated into 29 languages.
Within a year and a half of publication, Netflix announced it would develop The Henna Artist into a television series starring Frida Pinto.
Joshi published two more books in 2021 and 2023, and has a contract with Harper Collins to produce two more by 2025.
Four decades after immigrating to the US, Joshi says her passion to inform the world about India through historical fiction took root in her 50s, when she traveled back to her birth country with her mother.
About Her:
The Henna Artist was inspired by Joshi’s mother, who had an arranged marriage at 18. Joshi wrote a protagonist who lived in an alternate reality—one where a woman like her mom could live independently.
In 2020, at 62, Alka Joshi published her debut novel, The Henna Artist. She began writing the book in 2010, but the ten years of work paid off: It became a global phenomenon, hitting the New York Times bestseller list and translated into 29 languages.
Within a year and a half of publication, Netflix announced it would develop The Henna Artist into a television series starring Frida Pinto.
Joshi published two more books in 2021 and 2023, and has a contract with Harper Collins to produce two more by 2025.
Four decades after immigrating to the US, Joshi says her passion to inform the world about India through historical fiction took root in her 50s, when she traveled back to her birth country with her mother.
The Henna Artist was inspired by Joshi’s mother, who had an arranged marriage at 18. Joshi wrote a protagonist who lived in an alternate reality—one where a woman like her mom could live independently.
Indian-origin executive Vaibhav Taneja has been appointed as the new Chief Financial Officer (CFO) of Tesla, succeeding Zachary Kirkhorn, who announced his departure. Taneja, who already held the position of Chief Accounting Officer at the electric car giant, is taking on this added responsibility. Kirkhorn’s departure after 13 years was marked as a phase of “tremendous expansion and growth,” with Taneja set to lead Tesla’s financial strategies in this new chapter.
Tesla Inc. has a long history of promoting talent from within. Outside hires don’t last for very long in the carmaker’s scrappy, hard-charging culture, and it takes a certain stamina to work for Elon Musk.
Tesla’s new chief financial officer, Vaibhav Taneja, already has a hefty gig serving as the company’s chief accounting officer. Tesla watchers were surprised to hear Monday that he was replacing Zach Kirkhorn, a 13-year Tesla veteran who abruptly stepped down from the CFO post.
While Kirkhorn has been a calm, steady presence and regularly spoke at length with investors, even playing the role of Musk’s surrogate the time he skipped Tesla’s earnings presentation, Taneja is less well-known. He worked for Tesla’s accounting firm and later at SolarCity, a troubled company many investors wish the EV maker hadn’t acquired. He has spoken briefly on just one Tesla earnings call, back in early 2019.
The change comes at a critical time for Tesla. The company is building a new factory in Mexico and preparing to bring its Cybertruck pickup to the market as it fends off rivals in the increasingly crowded EV market. Tesla has been cutting prices across its lineup to maintain its position atop the electric-car industry, and profitability has taken a hit.
Taneja started his career in New Delhi. He graduated in 1999 with a bachelor’s degree in commerce from Delhi University, according to his LinkedIn profile. He then spent almost 17 years at PricewaterhouseCoopers, Tesla’s longtime accounting firm.
He joined SolarCity in 2016 and became corporate controller. Tesla soon thereafter acquired the solar panel installer. The automaker’s shareholders later sued Musk and Tesla’s board, accusing them of hiding SolarCity’s financial woes.
Taneja became Tesla’s corporate controller in May 2018 and was named chief accounting officer in March 2019. His predecessor, Dave Morton, had been hired away from Seagate Technology but resigned after less than a month.
Unusual Arrangement
Greg Selker, a managing director at executive search firm Stanton Chase, said that the general trend in corporate America is to hire business-oriented CFOs with a lot of operational experience. Taneja came up through the auditing ranks at PwC and his two concurrent titles at Tesla are an unusual arrangement.
“A CAO is responsible for all of the financial reporting – Taneja is really an accountant’s accountant,” Selker said in a phone interview. “Typically, a CFO has a broader business background.”
Taneja may have been instrumental to Tesla’s early inroads in India. He’s one of the four directors at Tesla India Motors and Energy Private Ltd., which was established in 2021 in the southern city of Bengaluru, according to the the Ministry of Corporate Affairs. Tesla doesn’t sell any EVs in India yet.
He owned about 105,000 shares of the company as of July 7, a stake that is currently valued at about $26 million, according to data compiled by Bloomberg.
Musk, the richest person in the world, oversees six companies: Tesla, SpaceX, X (formerly known as Twitter), Boring Co., Neuralink and xAI, his most recent venture. Musk’s many interests and the competing demands for his time have long raised concerns about whether Tesla is too dependent on a single individual.
The EV maker has just four executive officers: Musk, Drew Baglino, the senior vice president of powertrain and energy engineering; Tom Zhu, senior vice president of automotive; and now Taneja.
Who is Vaibhav Taneja, the new CFO of Tesla?
Taneja has served as Tesla’s CAO since March 2019 and as the Corporate Controller since May 2018. He served as the Assistant Corporate Controller between February 2017 and May 2018, and from March 2016, served in various finance and accounting roles at SolarCity Corporation, a US-based solar panel developer acquired by Tesla in 2016. Before that, Taneja was employed at PricewaterhouseCoopers in both India and the US between July 1999 and March 2016, the company filing said.
In a significant move, India and the United Arab Emirates (UAE) have officially commenced trading in their respective local currencies, marking a departure from the traditional reliance on the U.S. dollar for international transactions.
The Indian government made an announcement on Monday, revealing that Indian Oil Corp., a major petroleum refiner in the country, had used the Indian rupee to purchase one million barrels of oil from the Abu Dhabi National Oil Company, instead of using the U.S. dollar as the standard transaction currency. This landmark transaction underscores the growing trend towards local currency trade arrangements.
This development follows another noteworthy transaction involving the sale of 25 kilograms of gold from a UAE-based gold exporter to an Indian buyer for approximately 128.4 million rupees (equivalent to $1.54 million), as reported by Reuters. These two transactions serve as prime examples of the increasing shift towards conducting trade using local currencies.
The implications of this trend for the role of the U.S. dollar on the global stage are worth exploring. As these nations forge ahead with local currency trade agreements, questions arise about the potential impact on the U.S. dollar’s status as the dominant international currency.
Picture : Tribune India
India’s central bank laid the groundwork for this shift by introducing a new framework aimed at settling global trade using the rupee. This framework materialized last month when India, a significant oil importer and consumer on the global stage, entered into two agreements with the UAE. The primary objective of these agreements is to streamline cross-border transactions and payments by conducting trade in their respective local currencies. This move is anticipated to reduce transaction costs and eliminate the need for dollar conversions. In addition to local currency trade, both countries have also committed to establishing a real-time payment link, further simplifying cross-border money transfers. The Reserve Bank of India elucidated that these agreements will facilitate “seamless cross-border transactions and payments, and foster greater economic cooperation.”
While India and the UAE are at the forefront of this local currency trade trend, they are not alone in their efforts to reduce reliance on the U.S. dollar. Several influential countries worldwide, including China and Russia, have been exploring avenues to diminish the dollar’s prominence due to concerns over aggressive U.S. sanctions and foreign policy maneuvers. This global trend, often referred to as “de-dollarization,” has gained momentum, raising discussions about the future dominance of the U.S. dollar in international trade.
Janet Yellen, the Treasury Secretary, sought to address these concerns by emphasizing that no currency currently possesses the capacity to replace the U.S. dollar. Yellen’s assertion followed an 8% decrease in the dollar’s share of global reserves in the previous year. In response to this trend, central banks around the world have been diversifying their reserves, transitioning away from the dollar and towards other assets such as gold.
India and the UAE have embarked on a path of local currency trade, signaling a shift away from the traditional reliance on the U.S. dollar in international transactions. This move, driven by the desire to streamline cross-border trade and payments, highlights a broader trend of “de-dollarization” observed in various countries, including China and Russia. While these developments raise questions about the future status of the U.S. dollar, experts, including Janet Yellen, maintain that no currency currently possesses the necessary attributes to fully replace the greenback. As central banks diversify their reserves in response to this evolving landscape, the dynamics of global trade and finance continue to undergo transformation.
In a startling video, a brazen crowd of around 30 individuals rampaged through a Nordstrom department store in Los Angeles. The audacious robbery unfolded on a Saturday when a sizable group of roughly 30 people infiltrated the Nordstrom outlet situated within the Topanga Mall in Woodland Hills. The culprits swiftly seized a selection of clothing and handbags before making their escape.
A captured video footage depicting the incident from inside the store revealed the group, dressed in dark attire, assaulting security personnel with bear spray. This aggressive act enabled them to forcibly enter the establishment, causing destruction to displays as they swiftly snatched valuable items. The trespassers then promptly fled the premises.
Picture : CBS News
The Los Angeles Police Department disclosed that the robbery transpired at approximately 4 p.m. The loot predominantly consisted of handbags and garments, amounting to a limited number of items. The store’s official statement was shared via its Twitter account, indicating that approximately 25 purses, 15 dresses, and 24 perfume bottles were purloined, resulting in an estimated loss exceeding $200 million.
LAPD emphasized their commitment to addressing the incident, stating, “To those who live in the area and patronize the Topanga Mall, it is a loss of feeling safe. The LAPD will exhaust all efforts to bring those responsible into custody and seek criminal prosecution.”
The robbery has generated fear and unease among the local populace, prompting concerns about safety and the enforcement of the law. Expressions of distress surfaced on social media platforms. One Twitter user exclaimed, “California Has Fallen… Mass Mob Smash & Grab Robbery in Full Daylight Results in $30K Worth of Stolen Merchandise at Nordstrom in Los Angeles.”
Another commentator voiced apprehensions about the broader consequences, writing, “Another shoplifting bonanza at a Nordstrom outside of Los Angeles. This is not sustainable. The state of California is going to collapse. It is only a matter of time.”
Addressing the grave issue, Los Angeles Mayor Karen Bass issued a statement condemning the incident, stating, “What transpired at the Nordstrom in the Topanga Mall today is utterly unacceptable. Those responsible for this and similar acts in neighboring areas must be held accountable. The Los Angeles Police Department remains committed not only to identifying the perpetrators behind this incident but also to preventing such assaults on retailers from reoccurring in the future.”
It appears that store robberies have become an unsettling “routine” in the city under Democratic administration, as this occurrence marks the second incident within a fortnight. On August 8, a comparable robbery unfolded at a Yves Saint Laurent store situated at the Americana in Glendale.
Despite apparent parallels between the two incidents, law enforcement has not yet confirmed any direct link between the Yves Saint Laurent robbery and the Nordstrom robbery.
India is gearing up to host its first-ever World Coffee Conference (WCC), marking the fifth edition of this significant event promoted by the International Coffee Organisation (ICO). Scheduled to take place in Bengaluru from September 25 to September 28, the conference serves as a platform for fostering cooperation and promoting coffee trade among coffee-producing and consuming nations, with ICO being the primary intergovernmental organization dedicated to this cause.
At a preview ceremony in Bengaluru, the Coffee Board of India’s CEO and Secretary, K G Jagadeesha, revealed exciting news regarding the event’s brand ambassador. Renowned tennis player Rohan Bopanna will be taking on this role, adding further prestige to the conference. The ICO, in partnership with the Coffee Board of India, has taken the initiative to organize this remarkable event.
Picture : IndiaItaly
One of the primary objectives of WCC 2023 is to provide significant benefits to coffee farmers in India. Mr. Jagadeesha emphasized this by stating, “WCC (2023) is being organized for the first time in Asia and it is set to bring immense benefits to coffee farmers in India.” The global stage that the event offers will enable the promotion of Indian coffees, opening up new opportunities and markets for the farmers in the country.
The central theme of the conference is “Sustainability through Circular Economy and Regenerative Agriculture.” This important topic will be addressed through various conferences, exhibitions, skill-building workshops, a forum for CEOs and global leaders, as well as a growers’ conclave, making the event comprehensive and engaging for participants.
WCC 2023 is expected to draw representatives from more than 80 countries, including producers, curers, roasters, exporters, policy makers, and researchers. The diverse participation from various nations emphasizes the global significance of the coffee industry and highlights the importance of collaboration and cooperation in this sector.
The conference has previously been held in four different countries: England in 2001, Brazil in 2005, Guatemala in 2010, and Ethiopia in 2016. With India hosting the event this time, it not only solidifies the country’s position in the global coffee trade but also showcases the nation’s commitment to the coffee industry’s growth and development.
India’s upcoming hosting of the World Coffee Conference 2023 presents an excellent opportunity for the nation’s coffee farmers to showcase their products on the global stage. The event’s central theme of “Sustainability through Circular Economy and Regenerative Agriculture” reflects the industry’s growing focus on responsible and sustainable practices. With participants from over 80 countries expected to attend, the conference promises to be a platform for cooperation and collaboration among coffee-producing and consuming nations, further elevating the significance of the coffee industry in the global market. As the event unfolds in Bengaluru, the world will witness the potential and growth of India’s coffee trade, fostering new opportunities and markets for the country’s coffee farmers.
Finance Minister Nirmala Sitharaman said today that Indian companies can now go in for direct listing on foreign exchanges as well as on the International Financial Services Centre (IFSC) bourse in Ahmedabad.
The approval, which came after three years of announcement as part of the Covid relief package, will enable domestic companies to access foreign funds by listing their shares on various exchanges overseas.
A proposal regarding this was first floated as part of the liquidity package announced during the pandemic in May 2020.
Picture : Rise of Indian Americans 2
“A direct listing of securities by domestic companies will now be permissible in foreign jurisdictions. I’m also pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on the IFSC exchange. So, this is a major step forward. This will facilitate access to global capital and better valuation,” Ms Sitharmanan said.
The minister was speaking at an event to launch AMC Repo Clearing and a corporate debt market development fund to help deepen the corporate bond market.
Further, she called for a regulatory impact assessment so that regulated entities in particular and the markets in general can better understand the fallout of their decisions.
She also asked financial market regulators to focus on the quality, proportionality and the effectiveness of their decisions so that companies find further ease in doing their business.
Urging large municipal bodies to tap the debt market for their funding needs, Sitharaman said the government has been and will continue to incentivise cities to improve their credit ratings so that they get better pricing for their bonds.
India’s cricket governing body is trying to lure global giants Amazon.com and Alphabet to bid in a media rights auction of its team’s games amid waning interest from firms who had recently competed fiercely for the wildly successful Indian Premier League.
The proposed starting date of the auction process for the media rights of the so-called bilateral series, played by the Indian team against other countries, for the next five years got postponed by at least two weeks as the Board of Control for Cricket in India reaches out to more firms to drum up interest in the property, according to people familiar with the matter.
Picture : Economic Times
The lukewarm response by media firms ahead of the auction highlights the struggle to make money amid weak advertising revenues, with the shorter-format IPL being the top cricket property garnering higher viewership over the years. BCCI invited bids for the media rights on Wednesday and gave firms time up to Aug. 25 to buy the bid documents, the governing body said on its website.
The sale process is running two weeks behind a timeline suggested by its adviser, Ernst & Young, under which auctions would have been completed by August end, they said, asking not to be named as the information is not public. EY expects the sale of rights to 102 matches to raise at least $750 million, almost the same price for what it was sold five years back, the people said.
In contrast, the rights to IPL, which was auctioned last year, had surged almost threefold from the previous offering. The IPL remains one of the world’s most popular sporting contests and is still garnering the most eyeballs among cricket events.
BCCI raised record amounts of money by selling media rights for the IPL through an auction as Viacom, controlled by billionaire Mukesh Ambani, and Walt Disney Co. outbid rivals, including Sony. However, Ambani’s JioCinema put the 2023 edition of IPL online for free and Disney struggled to make profits due to weak advertisement revenues.
Viacom 18 will aggressively bid for the digital media rights to the bilateral series, while Disney undergoing a round of cost reduction globally, might take a cautious stance, the people said.
Representatives for BCCI, Disney and EY declined to comment. Spokespersons Viacom 18, Amazon and Alphabet didn’t respond to emails seeking comments.
Star India, a Disney unit since 2019, had bought rights for the bilateral series in the five years from 2018 for 61 billion rupees ($741 million) and has clocked losses of about 10 billion rupees from the asset, the people said. A decision on breaking up the media rights into digital and linear this time around and conducting an e-auction is yet to be taken, they said.
Dr. Sudhakar Jonnalagadda, a past President of the American Association of Physicians of Indian Origin (AAPI) has been conferred with Excellence in medicine Award by the Telugu Association of North America (TANA) during the 23rd annual conference held in Philadephia, PA on July 8th, 2023.
Dr. Jonnalagadda was chosen for the prestigious award by TANA for his contributions in the field of Medicine and for his great leadership of,AAPI, the largest ethnic medical organization in the US, especially during the Pandemic.
In response to receiving the award, Dr. Jonnalagadda, said, “ I want to express my sincere gratitude and appreciation to the Telugu Association of North America for selecting me for the prestigious award. In recognizing me, the TANA has recognized all the medical professionals who have been in the forefront fighting Covid, including those who have laid their lives at the services of treating patients infected with the deadly virus. This award will strengthen the medical fraternity to recommit our efforts, skills and talents for the greater good of humanity.”
Dr. Sudhakar Jonnalagadda had served as the 37th President of American Association of Physicians of Indian Origin (AAPI) and has worked hard to “make AAPI stronger, more vibrant, united, transparent, politically engaged, ensuring active participation of young physicians, increasing membership, and enabling that AAPI’s voice is heard in the corridors of power.”
AAPI is the largest Medical Organization in the United States, representing the interests of the over 120,000 physicians and Fellows of Indian origin in the United States, serving the interests of the Indian American physicians in the US and in many ways contributing to the shaping of the healthcare delivery in the US for the past 41 years. “AAPI must be responsive to its members, supportive of the leadership and a true advocate for our mission,” he said.
Dr. Jonnalagadda was born in a family of Physicians. His dad was a Professor at a Medical College in India and his mother was a Teacher. He and his siblings aspired to be physicians and dedicate their lives for the greater good of humanity. “I am committed to serving the community and help the needy. That gives me the greatest satisfaction in life,” he said modesty. Ambitious and wanting to achieve greater things in life, Dr. Jonnalagadda has numerous achievements in life. He currently serves as the President of the Medical Staff at the Hospital. And now, “being elected as the President of AAPI is greatest achievement of my life,”
As the President of AAPI, the dynamic physician from the state of Andhra Pradesh, helped to “develop a committee to work with children of AAPI members who are interested in medical school, to educate on choosing a school and gaining acceptance; Develop a committee to work with medical residents who are potential AAPI members, to educate on contract negotiation, patient communication, and practice management; Develop a committee to work with AAPI medical students, and to provide proctorship to improve their selection of medical residencies.”
A Board-Certified Gastroenterologist/Transplant Hepatologist, working in Douglas, GA, Dr. Jonnalagadda is a former Assistant Professor at the Medical College of Georgia. He was the President of Coffee Regional Medical Staff 2018, and had served as the Director of Medical Association of Georgia Board from 2016 onwards. He had served as the President of Georgia Association of Physicians of Indian Heritage 2007-2008, and was the past Chair of Board of Trustees, GAPI. He was the Chairman of the Medical Association of Georgia, IMG Section, and was a Graduate, Georgia Physicians Leadership Academy (advocacy training).
In response to the pandemic, Dr. Sudhakar Jonnalgadda helped AAPI raise $5.4 million in three months to send 3,000 oxygen concentrators, 100 ventilators, and 100 pieces of high-flow oxygen equipment to India. AAPI connected with the American Heart Association, UNICEF and Intel for charity programs, and the NY Times rated AAPI as the second best charitable organization in the nation.
AAPI was able to provide tele-health platforms and a community outreach program through ZTV which educated millions of viewers. AAPI donated 5000 blankets during Thanksgiving and held luncheons for National Nurses Week in over 50 hospitals in the United States as well as, for the first time, locations in the UK, Australia, New Zealand, India, and the Caribbean. AAPI provided 30 credit hours of CME virtually and started the first ever purely scientific journal, JAPI. AAPI successfully initiated a clinical observer ship program to young physicians.
Under his leadership, AAPI raised funds to provide 1,000 Water Purification Plants in several towns and villages in the states of Uttar Pradesh and Andhra Pradesh. Also, it was during his Presidency, for the first time ever, AAPI held annual elections to national offices via electronic ballots.
Dr. Jonnalagadda and his team, under stressful Covid times, organized the annual Convention in a record three months’ time, both successful and profitable. As the president, he was interviewed by CNN, Voice of America, and the Washington Post, as well as Republic TV and NDTV in India. He was recognized by the Indo-American Press Club (IAPC) with the Excellence in Leadership Award 2020 and the government of India presented him with the Pravasi Bharatiya Samman Award in 2021.
In 2022, he was conferred with a Gold Medal By the Indian Red Cross Society during the 5th annual General Meeting held in Vijayawada, Andhra Pradesh. Dr. Jonnnalgadda was conferred with the award for his contributions by Shree Biswabhusan Harichandan, the Honorable Governor of Andhra Pradesh. In 2020, Dr. Jonnalagadda was given Lifetime Achievement Award by the Indo-American Press Club.
His vision for AAPI has been to increase the awareness of APPI globally and help its voice heard in the corridors of power. “I would like to see us lobby the US Congress and create an AAPI PAC and advocate for an increase in the number of available Residency Positions and Green Cards to Indian American Physicians so as to help alleviate the shortage of Doctors in the United States.”
Ambassador of India to the United States, Shri Taranjit Singh Sandhu inaugurated the India Pavilion at the Texworld Apparel and Home Textile Sourcing Show in New York last week.
There are over two dozen Indian companies from the apparel, fabric and home textile sectors participating in the Texworld fair being held over three days from 18-20 July 2023.
India’s participation in the Texworld fair is being anchored by the Handloom Export Promotion Council and the Cotton Textiles Export Promotion Council (TEXPROCIL).
After the inauguration, Amb. Sandhu interacted with Indian companies and visited their stalls. He encouraged them to push hard to enhance India’s textile exports to the US and, in this regard, noted that the Commercial Wing at the Embassy and Consulates stand ready to offer all possible support.
He further added that the world-class textile products from India already have a large presence in the US, but there was potential to do more, especially in areas of sustainable textiles and organic products. India’s textile exports to the US in 2022-23 stood at US$ 10.4 billion, roughly accounting for 9-10% of the US textile imports.
Majority of the Indian textile companies participating in the fair are from two main clusters in India – Panipat in Haryana and Karur in Tamil Nadu. There are several new-age products made of Bhagalpuri silk, bamboo, jute and 3D prints on display at the fair.
As per a new report from Goldman Sachs, the equilibrium of worldwide financial power is projected to move decisively in the next few decades.
In the realistic above, we’ve made a knock diagram that gives a verifiable and prescient outline of the world’s best 15 economies at a few achievements: 1980, 2000, 2022, and Goldman Sachs projections for 2050 and 2075.
Projections and Features for 2050
Rank
Country
Real GDP in 2050 (USD trillions)
1
China
$41.9
2
US
$37.2
3
India
$22.2
4
Indonesia
$6.3
5
Germany
$6.2
6
Japan
$6.0
7
UK
$5.2
8
Brazil
$4.9
9
France
$4.6
10
Russia
$4.5
11
Mexico
$4.2
12
Egypt
$3.5
13
Saudi Arabia
$3.5
14
Canada
$3.4
15
Nigeria
$3.4
The accompanying table shows the extended top economies on the planet for 2050. All figures address genuine Gross domestic product projections, in light of 2021 USD.
A significant subject of the beyond a very long while has been China and India’s inconceivable development. For example, somewhere in the range of 2000 and 2022, India bounced eight spots to turn into the fifth biggest economy, outperforming the UK and France.
By 2050, Goldman Sachs accepts that the heaviness of worldwide Gross domestic product will move significantly more towards Asia. While this is somewhat because of Asia beating past figures, it is additionally because of BRICS countries failing to meet expectations.
Prominently, Indonesia will turn into the fourth greatest economy by 2050, outperforming Brazil and Russia as the biggest developing business sector. Indonesia is the world’s biggest archipelagic state, and right now has the fourth biggest populace at 277 million.
The Top Economies On the planet in 2075
The accompanying table incorporates the fundamental numbers for 2075. Yet again figures address genuine Gross domestic product projections, in light of 2021 USD.
Rank
Country
Real GDP in 2075 (USD trillions)
1
China
$57.0
2
India
$52.5
3
US
$51.5
4
Indonesia
$13.7
5
Nigeria
$13.1
6
Pakistan
$12.3
7
Egypt
$10.4
8
Brazil
$8.7
9
Germany
$8.1
10
UK
$7.6
11
Mexico
$7.6
12
Japan
$7.5
13
Russia
$6.9
14
Philippines
$6.6
15
France
$6.5
Projecting further to 2075 uncovers a radically unique world request, with Nigeria, Pakistan, and Egypt breaking into the main 10. A significant thought in these evaluations is quick populace development, which ought to bring about a huge workforce across each of the three countries.
In the mean time, European economies will keep on slipping further down the rankings. Germany, which was once the world’s third biggest economy, will sit at 10th behind Brazil.
It ought to likewise be noticed that China, India, and the U.S. are supposed to have comparative GDPs at this point, recommending fairly equivalent monetary power. Accordingly, how these countries decide to draw in with each other is probably going to shape the worldwide scene in manners that have sweeping ramifications.
Four Indian Americans featured in Forbes’ annual list of America’s 100 most successful businesswomen. Jayshree Ullal, Neerja Sethi, Neha Narkhede, and Indra Nooyi were named to the list of entrepreneurs, executives, and entertainers with a cumulative wealth of $124 billion.
Jayshree Ullal (62)
CEO and President of computer networking firm Arista Networks, Ullal has been ranked 15th on the list. The ranking is highest among Indian-origin business leaders. Arista Networks, a publicly-traded company, recorded revenue of nearly $4.4 billion in 2022. According to Forbes, Ullal owns about 2.4% of Arista’s stock. She is also on the board of directors of Snowflake, a cloud computing company that went public in September 2020. An electrical engineering graduate from San Francisco State University, she also holds an engineering management degree.
Neerja Sethi (68)
Neerja Sethi has been ranked 25th on the list with a net worth of USD 990 million. Sethi and her husband Bharat Desai, co-founded the the IT consulting and outsourcing firm Syntel in 1980. The duo started the business with an initial investment of just $2,000. French IT firm Atos SE bought Syntel in 2018 for $3.4 billion, and Sethi got an estimated $510 million for her stake. An MBA graduate from Delhi University completed her Master of Science from Oakland University.
Neha Narkhede (38)
Narkhede, co-founder and former Chief Technology Officer of cloud company Confluent is ranked 50th on the list. Her net worth is USD 520 million. Narkhede is a software engineer-turned-entrepreneur. She helped develop the open-source messaging system Apache Kafka to help LinkedIn’s massive influx of data. In 2014, she along with two LinkedIn colleagues found Confluent, which helps organisations process large amounts of data on Apache Kafka. In March 2023, Narkhede announced her new company, a fraud detection firm Oscilar. As per Forbes, the USD 586 million (2022 revenues) company went public in June 2021 at a USD 9.1 billion valuation; she owns around 6 percent.
Indira Nooyi (67)
Indira Nooyi is PepsiCo’s former chairperson and CEO. She has been ranked 77th on the Forbes 2023 list. She retired in 2019 after being associated with the beverage company for almost 24 years. Nooyi has a net worth of USD 350 million. Her wealth stalks from stock she was granted while working at PepsiCo. Nooyi was one of corporate America’s few female CEOs in 2006.
Prime Minister Narendra Modi expressed his optimism for a prosperous future as he met with business leaders from India and the United States at the White House, highlighting the collaboration between Indian talent and American technological advancement. During the India-U.S. Hi-Tech Handshake Event, PM Modi emphasized the promising outcomes of the meeting, stating, “This morning (meeting) is only among a few friends but has brought with it the guarantee of a bright future,” with President Joe Biden acknowledging his remarks.
PM Modi seized the opportunity to align President Biden’s vision and capabilities with India’s aspirations and possibilities, expressing gratitude for the U.S. leader’s presence at the meeting. Describing the development as “honhaar, shandaar, dhardaar” in Hindi, he emphasized its potential to pave the way for a new future. The timing of the meeting is crucial as both countries aim to deepen their ties in the high-tech sector.
Reiterating the significance of the collaboration between Indian talent and U.S. technological advancement, Prime Minister Modi stressed the diverse representation of business leaders from various sectors, ranging from agriculture to space. Notable participants included Satya Nadella, CEO of Microsoft; Tim Cook, CEO of Apple; Sundar Pichai, CEO of Google; Sam Altman, CEO of OpenAI; Lisa Su, CEO of AMD; and NASA astronaut Sunita Williams, among others. The Indian business delegation comprised prominent figures such as Mukesh Ambani, Chairman and Managing Director of Reliance Industries; Anand Mahindra, Chairman of Mahindra Group; Nikhil Kamath, co-founder of Zerodha and True Beacon; and Vrinda Kapoor, co-founder of 3rdiTech.
President Biden emphasized that their partnership would contribute to a free, secure, and prosperous future for future generations. He stated, “Our cooperation matters, not just for our people but quite frankly to the whole world, as our partnership is about more than the next breakthrough or the next deal as big as they may be.” The President underscored the importance of collaboration in addressing climate change, exploring the universe, alleviating poverty, preventing pandemics, and providing real opportunities for citizens.
PM Modi’s four-day state visit to the U.S. has been hailed as historic and groundbreaking by Indian officials, marking a significant breakthrough in India’s pursuit of critical cooperation in cutting-edge technologies, including technology transfer and joint research. The meeting between the Indian and U.S. business leaders sets the stage for potential collaborations that could drive innovation, economic growth, and societal progress for both nations.
Prime Minister Modi’s meeting with business honchos from India and the United States signifies the fusion of Indian talent and American technological advancements, leading to a promising future. The engagement between the two countries’ leaders and business representatives paves the way for collaborative efforts in various sectors, addressing global challenges and exploring new opportunities for growth and development.
A significant portion, one-third, of graduates from India’s esteemed engineering institutions, specifically the Indian Institutes of Technology (IITs), choose to move abroad. A substantial 65% of these highly-skilled individuals make up the migrants bound for the United States, as revealed in a working paper (pdf) by the National Bureau of Economic Research (NBER).
A striking statistic shows that 90% of the top performers in the annual joint entrance examination for IITs and other renowned engineering colleges have migrated. Furthermore, 36% of the top 1,000 scorers have followed suit, according to the paper released this month.
Many IIT graduates have become leading executives and CEOs in the US. The majority of these immigrants initially move to the US as students and later join the workforce. The NBER paper discovered that “83% of such immigrants pursue a Master’s degree or a doctorate.”
The report highlights the role of elite universities in shaping migration outcomes, stating, “…through a combination of signaling and network effects, elite universities in source countries play a key role in shaping migration outcomes, both in terms of the overall propensity and the particular migration destination.”
There are 23 IITs spread across India, with acceptance rates at many of these prestigious institutions being lower than those of Ivy League colleges. This is especially true for the most sought-after IITs at Kharagpur, Mumbai, Kanpur, Chennai, and Delhi. In 2023 alone, a staggering 189,744 candidates registered for the JEE, competing for a mere 16,598 seats.
Highly skilled Indians are in high demand across global economies
The NBER report highlights the US graduate program as a crucial migration pathway to attract the “best and brightest.”
In a similar vein, the UK’s High Potential Individual visa route allows graduates from the top 50 non-UK universities, including the IITs, to live and work in the country for a minimum of two years. For those with doctoral qualifications, the work visa extends to at least three years.
The report also mentions that recent IIT graduates seeking to move abroad benefit from a network of accomplished alumni and faculty members already settled overseas. Some of these connections even grant access to specific programs where they hold sway over admissions or hiring decisions.
The intriguing example of Banaras Hindu University (BHU) is worth noting
In 2012, this century-old institution, also India’s first central university, was granted IIT status. Interestingly, this elevation took place without any alterations to the staff, curriculum, or admission system at the Varanasi-based institute in Uttar Pradesh.
The NBER report examined 1,956 BHU students who graduated with BTech, BPharm, MTech, or integrated dual degrees between 2005 and 2015. The study found a remarkable 540% increase in migration probability among graduates following the IIT status designation.
The report observed that “…the quality of education/human capital acquired by the students in the cohorts before and after the change remained constant, while only the name of the university on the degree received differed.”
As an early innovator in artificial intelligence, Google has been striving to keep up with competitors like Microsoft and OpenAI, who have gained ground with advancements such as ChatGPT. Recognizing the need for individuals to develop skills for future job opportunities, Google is taking action to address this pressing issue.
The tech giant has officially introduced its new generative AI learning path, consisting of ten courses aimed at helping the average person gain a deeper understanding of AI and machine learning, particularly as these technologies begin to replace jobs. For investors, it’s always encouraging when prominent Big Tech companies adopt a long-term vision regarding AI.
Google’s new generative AI learning course was announced through a blog post, revealing that seven free courses were initially launched, with three more added to the platform recently. These courses cover topics such as the distinction between AI and machine learning, an introduction to Google’s Vertex AI training platform, and the ethical considerations surrounding responsible AI development.
The course serves as a starting point for users to grasp generative AI, its role within the broader AI landscape, and where to find additional learning resources to help them transition into AI-centric careers. Some may argue that this initiative is merely a strategy to attract potential AI enthusiasts to Google’s training system, ultimately leading them to use Google software for building their own AI and machine learning models and solidifying Google’s position in the AI race.
However, creating AI models requires expertise. The US Bureau of Labor Statistics has projected a 36% growth rate in data scientist roles over the next decade. As such, these new courses are not only practical but also crucial for companies like Google, which will undoubtedly require a vast number of AI-focused data scientists in the future.
AI’s impact on the future of work has generated excitement, with major companies like Microsoft, Amazon, and Nvidia investing billions in AI technologies. However, there is a pressing concern: the potential job losses resulting from AI automation. A recent Goldman Sachs survey estimates that up to 300 million jobs could be lost, with two-thirds of existing roles experiencing a reduction in workload due to AI. On the bright side, AI is expected to contribute $7 trillion to the global economy in the next decade, and 60% of today’s jobs didn’t exist in 1940.
A more optimistic Microsoft survey involving 30,000 workers and business leaders worldwide revealed that 70% of respondents would delegate specific tasks to AI. Business leaders were twice as focused on using AI to boost productivity rather than reducing headcount. Nevertheless, companies like IBM and BT are planning to cut thousands of jobs in favor of AI.
Google’s recent AI initiatives go beyond new courses. The company launched the Google for Startups Growth program in Europe, a three-month course for European AI entrepreneurs focusing on health and wellbeing. Since OpenAI’s ChatGPT debut, Google has been working on its own Bard version for users. The tech giant also announced significant changes to its search function, where it holds approximately 85% market share.
Google, Meta, and TikTok have faced criticism regarding AI-generated content labeling after the European Commission warned about the rapid spread of misinformation. Additionally, AI safety has become a significant concern, as evidenced by Dr. Geoffrey Hinton, one of AI’s founding figures, leaving Google to raise awareness on the subject. Alphabet CEO Sundar Pichai addressed these concerns in a recent Financial Times op-ed, stating, “AI is too important not to regulate, and too important not to regulate well.”
Alphabet’s share price has increased nearly 17% in the past month and over 41% since the beginning of the year. Google’s cloud computing division experienced a 28% YoY revenue growth last quarter. By focusing on upskilling future data scientists and empowering entrepreneurs to develop AI companies, Google is considering the bigger picture, leveraging its dominant search engine market share.
In summary, Google aims to bridge the knowledge gap in AI with new courses and tools, helping the company find skilled engineers and scientists for future AI projects. The stock price outpacing Microsoft may indicate that Google has regained an advantage. These learning courses form part of a strategy that increases reliance on Google’s AI products, attracting investors’ attention as they recognize the shift.
Following a hiatus of over three years, federal student loan payments are set to resume in the coming months. The recent debt ceiling agreement, signed into law by President Joe Biden, includes a clause that effectively ends the suspension of federal student loan repayments and may make it more difficult for the U.S. Department of Education to prolong the pause. Consequently, around 40 million Americans carrying education debt can expect their next payment due in September.
During the pandemic, the Biden administration has been actively revamping the federal student loan system. As borrowers return to repayment, they may encounter several modifications either already implemented or in the pipeline. Here are three notable changes:
Potential lower payments due to forgiveness
In August, President Biden introduced a groundbreaking proposal to eliminate $10,000 in student debt for tens of millions of Americans, or up to $20,000 for those who received a Pell Grant during their college years. However, legal challenges led to the closure of the application portal within a month.
The Supreme Court is currently reviewing two lawsuits against the plan, with a ruling expected by the end of the month. If approved, around 14 million individuals, or one-third of federal student loan borrowers, would have their entire balances forgiven, according to higher education expert Mark Kantrowitz.
These borrowers “likely won’t have to make a student loan payment again,” he said. For those with remaining balances, the Education Department plans to “re-amortize” their debts, recalculating monthly payments based on the reduced amount and remaining repayment timeline.
A new income-driven repayment option
The Biden administration is developing a more affordable repayment plan for student loan borrowers. This new program, called the Revised Pay as You Earn Repayment Plan, would require borrowers to contribute 5% of their discretionary income toward undergraduate loans, instead of the current 10%.
According to Kantrowitz, this revamped plan could significantly reduce monthly payments for many borrowers. The payment plan is expected to become available by July 2024, but it may be implemented earlier if circumstances permit.
A new servicer handling loans
During the pandemic, several prominent federal student loan servicers, including Navient, Pennsylvania Higher Education Assistance Agency (also known as FedLoan), and Granite State, announced they would no longer manage these loans. Consequently, around 16 million borrowers will likely have a different company handling their loans when payments resume.
Kantrowitz warned that “whenever there is a change of loan servicer, there can be problems transferring borrower data.” Borrowers should be prepared for potential glitches and will receive multiple notices about the change in lender, according to Scott Buchanan, executive director of the Student Loan Servicing Alliance. If a payment is mistakenly sent to the old servicer, it should be forwarded to the new one.
Saudi Arabia has revealed its plan to reduce oil production by 1 million barrels per day starting in July, with the intention of promoting “stability and balance” in the global oil market. Despite not basing production decisions on crude oil prices, this action is widely perceived as an effort to bolster oil prices amid worldwide economic instability and potential declines in international demand.
The announcement followed an OPEC+ meeting in Vienna, although Saudi Arabia’s additional production cuts are being implemented independently. The country has stated that these reductions will persist for at least one month and may be prolonged.
OPEC+ nations also consented to extend the oil production cuts initially declared in April until the end of 2024. This decision will decrease the volume of crude oil they contribute to the global market by over 1 million barrels per day. Notably, OPEC+ countries account for approximately 40% of the world’s crude oil production.
Several African nations and Russia had been urged to diminish production, while the United Arab Emirates plans to augment its crude output. Worldwide oil production currently hovers around 100 million barrels per day.
According to Saudi Arabia’s Ministry of Energy, the nation will now produce 9 million barrels of crude oil daily, a reduction of 1.5 million barrels per day compared to earlier this year. These cuts coincide with the end of Memorial Day in the United States and the beginning of the bustling summer travel season, during which crude oil prices typically impact gasoline costs.
In the previous summer, President Biden visited Saudi Arabia—a nation he once labeled a “pariah” state—to request increased oil production from its leaders. Contrarily, OPEC+ members announced a 2 million barrels per day cut in October, which the White House deemed “shortsighted.”
To counteract rising gas prices, the Biden administration has been tapping into the Strategic Petroleum Reserve since last year, releasing millions of barrels of oil.
In the past decade, India has experienced 10 transformative changes that are now driving the nation towards doubling per capita income, export market share, increasing manufacturing’s share, enhancing corporate profits, and significantly improving other economic health indicators, according to Morgan Stanley. Their recent report, ‘How India has Transformed in Less than a Decade,’ credits policy changes such as Direct Benefit Transfers (DBTs), supply-side policy reforms, and adjustments to the Insolvency and Bankruptcy Code (IBC) for bringing about overwhelmingly positive shifts in India’s macroeconomic situation, global standing, and local stock markets.
Ridham Desai, Managing Director of Morgan Stanley India, refuted the widespread belief that India has underperformed: “We run into significant skepticism about India, particularly with overseas investors, who say that India has not delivered its potential… and that equity valuations are too rich.” Desai added that this perspective “ignores the significant changes that have taken place in India, especially since 2014.” The report highlights ten crucial changes with extensive implications for both the economy and the market to support his argument.
The ten changes highlighted by Morgan Stanley are:
Supply-side Policy Reforms
Formalisation of the Economy
Real Estate (Regulation and Development) Act
Digitalizing Social Transfers
Insolvency & Bankruptcy Code
Flexible Inflation Targeting
Focus on FDI
India’s 401(k) Moment
Government Support for Corporate Profits
MNC Sentiment at Multi-year High
The consequences of these changes on the economy
The main effect of these transformations is the consistent growth of manufacturing and capital expenditure as a percentage of GDP. Morgan Stanley forecasts that each will increase by 5 percentage points. Furthermore, India’s export market share is predicted to reach 4.5% by 2031, nearly doubling from 2021 levels, while per capita income is anticipated to reach $5,200 in the next ten years. “This will have major implications for change in the consumption basket, with a boost to discretionary consumption,” the report stated, adding, “We expect India’s real growth to average 6.5% in the next 10 years, making India the third-largest economy at nearly $8 trillion by 2031, up from fifth-largest currently.”
This structural shift will impact saving-investment dynamics, strengthening the nation’s external balance sheet and consequently narrowing the current account deficit (CAD). Domestic profits could potentially double, which, although explaining high equity valuations, will result in “a major rise in investments, a moderation in the CAD, and an increase in credit to GDP to support the coming profit growth.”
“Indian companies will likely witness a major increase in their profits share to GDP. Triggered by supply-side reforms by the government, we expect a major rise in investments coupled with a moderation in the current account deficit and an increase in credit to GDP to support this rise,” said Morgan Stanley.
Implications on the stock markets
Upon realizing these consequences, there will likely be a reduced correlation with oil prices and the US recession. This could also prompt a revaluation in domestic stock market valuations. “This reflects persistent domestic demand for stocks and higher growth for longer. India is trading at a premium to long-term history, albeit well off highs and in line with recent history,” the report noted. Additionally, the report observed that India’s beta to emerging markets has decreased to 0.6, a result of enhanced macro stability and a reduction in reliance on global capital market flows to finance the CAD.
The U.S.-led Indo-Pacific Economic Framework (IPEF) concluded its meeting on Saturday, with trade ministers from the 14 participating countries agreeing on a deal to coordinate supply chains.
Wendy Cutler, Vice President of the Asia Society Policy Institute, offers the commentary below on the outcomes of the IPEF meeting.
“The 14 IPEF members should be commended for making progress on three pillars of their work, and achieving “substantial conclusion” of their supply chain work. Reaching agreement among 14 countries, with different levels of development, different priorities and different needs is no small feat. That said, it’s still an open question whether meaningful outcomes can be achieved by the November target date of completion. The challenge of achieving high standards while securing the buy-in of all participants already seems to be impacting the talks, as evidenced by the largely process-oriented announcement on supply chains. Once released, the final text of the supply chain agreement may shed more light on whether substantive commitments were agreed upon.
“The announcement on the Trade Pillar suggests that while work has ‘advanced,’ the negotiations still face significant hurdles. This is not surprising, given the topics included and lack of offers of market access to allow for traditional trade-offs. Of note, is that work on technical assistance and economic cooperation is singled out as an area where “substantial progress” has been made. Hopefully, this will pave the way for more progress on the tough issues of digital, labor and the environment.
“The Clean Economy Pillar statement language suggests that while IPEF members agree on the importance of the transition to a sustainable economy, there is no meeting of the minds on how IPEF can contribute in concrete terms. The announcement notes that many ideas and proposals are being discussed, but is vague on where the work may be headed in concrete terms.
“On the Supply Chain Pillar, Ministers announced the ‘substantial conclusion’ of negotiations. Given the importance of supply chain resiliency to individual, regional and the global economy, the IPEF supply chain outcomes are welcome, albeit modest and largely process- oriented.
“The statement lays out nine important objectives of the agreement, including promoting a collective understanding of supply chain risks, minimizing disruptions, and ensuring the availability of skilled works in critical sectors. But these goals, many of which mirror the initial negotiating mandate of this pillar, do not appear to be translated into rules, commitments or initiatives.
“Rather, the announcement focuses on three new bodies to help flesh out and operationalize the objectives, including a Council, a crisis response mechanism, and a labor advisory board. In essence, the IPEF members have established a framework within a framework to address supply chain concerns, with much of the substantive work yet to be discussed and agreed upon. Curiously, the new bodies are ‘contemplated,’ and apparently not yet agreed upon, suggesting that there were some last-minute hitches in even setting up this structure.
“Finally, the Fair Economy pillar points to ‘good progress’ on negotiation of the text on anticorruption and tax matters. Based on this characterization, this pillar’s work is likely to be the next candidate for an early harvest agreement.”
The summit will explore the U.S.-India economic partnership across sectors.
The United States India Business Council (USIBC) announced that its 2023 India Ideas Summit will be held on June 12-13, 2023 on the sidelines of its 48th Annual General Meeting at the U.S. Chamber of Commerce headquarters in Washington D.C.
In a statement, USIBC shared the summit themed ‘Trust, Resilience, and Growth’ – will focus on how these three organizing principles underpin the U.S.-India economic partnership across sectors. “As the Summit is the flagship event of USIBC, and the premier convention of government, industry, and thought leaders in the U.S.-India Corridor, USIBC’s annual India Ideas Summit has become an institution,”it said.
This year’s summit carries an additional significance as it will take place about ten days in advance of PM Modi’s state visit to the US scheduled to begin from June 22, 2023, in an effort to strengthen bilateral relations.
Every year, the bilateral trade council hosts conversations that explore important technological developments, chart an agenda for the trade relationship, and highlight how India-US commercial ties serve shared strategic and economic interests.\
Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization in the U.S.-India corridor, composed of more than 200 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. The Council aims to create an inclusive bilateral trade environment between India and the United States by serving as the voice of industry, linking governments to businesses, and supporting long-term commercial partnerships that will nurture the spirit of entrepreneurship, create jobs, and successfully contribute to the global economy.
IMA India recently disclosed through its 2023 Global Operations Benchmarking survey that nearly 80 percent of global CEOs choose India as their top destination over China.
The 2023 Global operations benchmarking survey, conducted by IMA India, showed the country as an emerging destination for MNCs. A poll of 100 CEOs who largely represent international B2B-focused companies stated that India is the top destination that multinational enterprises are looking for as an alternative to China.
As per the study, 88 per cent of CEOs who surveyed companies with a presence in India, chose India as their top option over China due to its growing geopolitical aggressiveness, dubious trade and commercial practices, and rising labour prices.
“In the last five years, foreign MNCs have increased their on-ground presence in India, partly as a result of diversification away from China. In particular, the IT & ITES companies are ramping up the share of their global workforce that is based in India,” said Suraj Saigal, Research Director, IMA India.
In the last three years, over 70 per cent of the companies, according to a study based on the poll, have seen significant changes in their business strategy based on-the-ground operations in China. Comparatively speaking, the industrial sector exhibits a more pronounced pullback than the services sector. The percentage of people making adjustments has declined in 41 per cent of cases, while 56 per cent have cut down on investments and sourced less from China.
While a handful of enterprises have quit the industry, 6 per cent have reduced their market participation. In addition, taking into consideration recent changes in commercial and geopolitical tactics, the study looked at how corporations are recognising and seizing India’s business possibilities.
India’s predicted worldwide workforce share climbed from 22.4 per cent to 24.9 per cent between FY18 and FY23 in mean percentage terms, while its revenue share increased from 14.8 per cent to 15.8 per cent. These numbers show India’s gradual rise in the world scene throughout this time.
However, even those that choose India listed infrastructure, legal restrictions, and skill-related problems as major obstacles. The study determined that the worldwide trend away from multilateral commerce towards bilateral trade connections was the cause for the rising popularity of friend-shoring. The emergence of ‘deglobalization,’ protectionism, and nationalism has forced governments to cooperate with nations with which they already have cordial bilateral connections rather than depending on international or regional trade accords.
President Joe Biden on Saturday, June 3rd signed the debt ceiling bill, a capstone to months of negotiations that pushed the U.S. to the brink of default. Biden signed H.R. 3746, the “Fiscal Responsibility Act of 2023,” two days before Monday’s default deadline, on which the U.S. would run out of cash to pay its bills, according to a White House release.
Biden thanked House Speaker Kevin McCarthy, Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell “for their partnership.” Biden tweeted: “I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our scared obligation to our veterans. Now, we continue the work of building the strongest economy in the world.”
The House of Representatives and the Senate passed the legislation this week after Biden and House of Representatives Speaker Kevin McCarthy reached an agreement following tense negotiations.
The Treasury Department had warned it would be unable to pay all its bills on Monday if Congress had failed to act by then.
Biden, who had experienced the 2011 debt limit crisis, refused to make any concessions for what he considered Congress’s basic duty. However, McCarthy, encouraged by conservatives seeking significant changes to federal spending, was determined to use the nation’s borrowing power as leverage, even if it risked pushing the U.S. towards default.
The ensuing events demonstrated how two influential figures in Washington, both of whom believe in the importance of personal connections despite not having a strong relationship themselves, managed to prevent an unprecedented default that could have seriously damaged the economy and carried unpredictable political repercussions.
However, the standoff was primarily provoked by Republicans who believed that threatening the debt limit was necessary to curb federal spending. Despite a decisive 314-117 House vote and a 63-36 Senate vote, this episode has put McCarthy’s speakership to the test and challenged his capacity to control his party’s rebellious far-right faction.
“IT’S ALL ABOUT THE ENDGAME”
McCarthy now feels empowered and remains undaunted. Reflecting on his election as speaker after the House passed the debt limit package, he mentioned his arduous journey to secure the gavel in January. He stated, “Every question you gave me (was), what could we survive, what could we even do? I told you then, it’s not how you start, it’s how you finish.”
This narrative of the prolonged process through which Washington resolved the debt limit crisis is based on interviews with legislators, senior White House officials, and high-ranking congressional aides, some of whom requested anonymity to disclose private negotiation details.
Key to overcoming the obstacles were Biden and McCarthy’s five negotiators, who brought policy expertise to the table and received full support from their leaders. Republicans particularly appreciated the involvement of presidential counselor Steve Ricchetti, who speaks on behalf of Biden like no one else, and Shalanda Young, the current director of the Office of Management and Budget, who gained invaluable experience as a respected senior congressional aide overseeing the intricate annual appropriations process.
Young and Rep. Patrick McHenry of North Carolina, one of McCarthy’s negotiators, developed such a close rapport that they phoned each other every morning during their respective day care drop-offs. Additionally, Young and the other GOP negotiator, Rep. Garret Graves, playfully debated who had the better gumbo recipe while discussing the debt limit during a White House celebration for the national champion Louisiana State University women’s basketball team.
The five negotiators – Graves, McHenry, Ricchetti, Young, and legislative affairs director Louisa Terrell – convened daily in an elegant office on the Capitol’s first floor, adorned with frescoes by 19th-century muralist Constantino Brumidi. In these meetings, they focused intently on priorities and non-negotiables to determine how they could reach an agreement.
HITTING PAUSE AND A ‘BACKWARD’ PROPOSAL
By May 19, the negotiations were becoming shaky. Republicans grew impatient as the White House seemed unwilling to compromise on reducing federal spending, which was a non-negotiable demand for the GOP.
During a morning meeting that Friday, White House officials urged McHenry and Graves to present a formal proposal. However, the frustrated Republicans opted to go public instead. They informed reporters that the talks had temporarily halted. As he hurried through the Capitol, Graves said, “We decided to press pause because it’s just not productive.” He later explained that he and McHenry were tired of playing games.
Tensions didn’t subside. When negotiations resumed that night, McHenry and Graves presented a new proposal that not only revived numerous rejected provisions from the GOP’s debt limit bill but also incorporated the House Republicans’ border-security bill. A White House official labeled the proposal “regressive.”
The White House expressed its own frustrations as the discussions seemed to be faltering, starting with a lengthy statement from communications director Ben LaBolt and followed by Biden’s comments at a press conference in Hiroshima, Japan, where he was attending a summit of leading democracies. The president stated, “Now it’s time for the other side to move their extreme positions. Because much of what they’ve already proposed is simply, quite frankly, unacceptable.”
HOPE, LONG HOURS, AND GUMMY WORMS
Despite the escalating public rhetoric, there were indications that the talks were improving. Biden called McCarthy from Air Force One as he left Japan, and the speaker appeared more hopeful than he had been in days. Fueled by coffee, gummy worms, and burritos, negotiators worked exhausting hours, primarily at the Capitol but once at the Eisenhower Executive Office Building, where they enjoyed Call Your Mother bagel sandwiches provided by White House Chief of Staff Jeff Zients.
One session lasted until 2:30 a.m., and Graves showed reporters an app tracking his sleep, revealing an average of three hours per night during the final stretch. McCarthy sent lawmakers home over Memorial Day weekend, which McHenry believed was helpful. He said, “The tone of the White House negotiators became much more serious and much more grounded in the realities they were going to have to accept.”
PROMOTING THE AGREEMENT
On May 27, Biden and McCarthy announced a deal in principle and began the task of convincing others. The night before the vote, McCarthy assembled House Republicans in the Capitol’s basement, provided pizza, and explained the bill while challenging Freedom Caucus members to use the same aggressive language they had employed at an earlier news conference. By the meeting’s end, it was evident that McCarthy had quelled the rebellion.
Meanwhile, the White House had its work cut out for them in appeasing rank-and-file Democrats. Biden and McCarthy displayed contrasting styles throughout the negotiations, with the speaker discussing the debt limit talks openly and frequently, while the president remained quiet, wary of jeopardizing the deal before it was finalized.
Biden had been privately addressing his party’s concerns even as the agreement was being finalized. After the Congressional Progressive Caucus criticized the few known details, particularly regarding stricter requirements for federal safety-net programs, Rep. Pramila Jayapal received a call from Biden. He assured her that his negotiators were working diligently to minimize the Republican-drafted changes to food stamp and cash assistance programs.
In a statement after the vote, Biden expressed gratitude and relief, saying, “This budget agreement is a bipartisan compromise. Neither side got everything it wanted. That’s the responsibility of governing.”
The U.S. Bureau of Labor Statistics’1 research on American earnings reveals that the median salary in the United States peaks within the 45 to 54 age range. A deeper analysis of the average salary by age in the U.S. uncovers some interesting insights.
Key Findings on Average Salary by Age in the U.S.:
Median American earnings reach their highest point in the 45 to 54 age range.
The most significant salary increase from one age group to another is between 20 to 24 and 25 to 34, indicating that this is when most individuals experience major career advancements.
Younger earners in the 16 to 19 age group typically earn 49.92% less than older workers.
The data underscores the notable salary growth for workers transitioning from the 20 to 24 to the 25 to 34 age group. This substantial increase in earnings suggests that the most significant career progressions usually take place during this time, supported by factors such as skill development, education, and work experience.
Furthermore, a considerable wage gap exists between younger earners in the 16 to 19 age group and their older counterparts. On average, these young workers earn 49.92% less, which can be attributed to factors like limited work experience, a smaller skill set, and entry-level positions. This information is crucial for policymakers, educators, and employers, as it emphasizes the importance of skill development and work experience in closing the income gap. As younger individuals grow, develop their skills, and gain work experience, their earning potential will significantly improve, driving overall salary growth throughout their careers.
Noteworthy Observations on Average Salary by Age and State:
New Jersey, Massachusetts, and Maryland are the states with the largest income jumps from one age range to the next.
New Hampshire is the state where young people have the highest average income, with a salary of $52,926.
New Jersey is the state with the largest pay gap between younger and older workers.
IncomeByZipcode.com’s2 comprehensive research reveals intriguing regional disparities regarding income progression across age groups in the United States. The states of New Jersey, Massachusetts, and Maryland exhibit the most substantial income jumps between age ranges, indicating unique economic dynamics in these areas and suggesting that professionals in these states may experience more significant salary increases throughout their careers.
New Hampshire stands out as the state where young people have the highest average income, boasting an impressive salary of $52,926. This data highlights the favorable economic conditions for young professionals in New Hampshire, making it an ideal destination for ambitious individuals seeking to maximize their early career earnings.
On the other hand, New Jersey showcases the largest pay gap between younger and older workers, emphasizing the importance of understanding regional differences when evaluating career prospects and income potential across the United States.
Key Points on Average Salary by Age and Educational Level:
The median salary for individuals older than 25 with a bachelor’s degree is 76.24% higher than for those older than 25 with a high school diploma.
The median salary for people older than 25 with an advanced degree is 70.64% higher than for those older than 25 with a bachelor’s degree, and 143.54% higher than those with an associate degree.
The National Center for Education Statistics3 offers compelling data demonstrating the impact of education level on earning potential. People aged 25 and above with a bachelor’s degree earn a median salary that is 76.24% higher than those with only a high school diploma, emphasizing the value of pursuing higher education and its long-term benefits for career growth and financial stability.
Data shows that individuals over 25 with an advanced degree have a median salary that is 70.64% higher than those with a bachelor’s degree and a remarkable 143.54% more than those with an associate degree. These findings underscore the profound effect of advanced education on salary prospects and the potential rewards of investing in graduate or professional degrees.
Average Salary by Age and Gender:
The most substantial gender pay gap is observed in the 45 to 54 age group.
The smallest gender pay gap is present in the 16 to 19 age group.
Data from the U.S. Bureau of Labor Statistics^1 highlights a notable disparity in wages between genders, particularly in the 45 to 54 age group. In this age range, the male median annual wage amounts to $72,228, while the female median annual wage is considerably lower at $57,096. This translates to a wage discrepancy of $15,132 or a 26.5% difference favoring males.
Conversely, the gender pay gap is significantly smaller in the 16 to 19 age group, with the median annual wage for males standing at $32,188 and females at $31,096. This results in a difference of $1,092 or a mere 3.5% wage disparity in favor of males.
The information gleaned from these statistics emphasizes that the gender pay gap is not uniform across age groups. Instead, it widens as individuals progress in their careers and attain higher income levels. This trend suggests a complex interplay of factors, such as career choices, professional growth, and work-life balance, may disproportionately impact women during their mid-career stages.
The wave of job losses that have struck the tech industry since the beginning of the year has forced tens of thousands of H1-B Visa holders to scramble to find new employment within 60 days or risk deportation. For those who acted quickly, the deadline has come and gone. Fortunately, the majority of them were successful.
At Revelio Labs, where we collect publicly accessible workforce data to analyze labor trends, we discovered that over 90% of laid-off H1-B visa holders managed to secure new jobs that met the program’s strict requirements. Interestingly, compared to native workers, immigrants found jobs 10 days quicker, primarily because they were more willing to relocate for new opportunities. However, their flexibility is limited, as visa holders can only accept positions directly related to their specialized training.
Indeed, our research showed that while 67% of non-immigrant workers changed roles after being laid off, only 49% of visa holders did the same. So, how did so many manage to find positions in their specialty despite Big Tech’s drastic cost-cutting measures? The answer lies in market demand.
Tech jobs remain widely available outside of tech companies. Consequently, the stars aligned for laid-off tech workers on H1-B visas, as numerous other doors were open. The H1-B Visa program functions best when it enables participants to adapt seamlessly to market demand, but it is not inherently responsive to market needs. Revelio Labs’ data reveals that 78% of Fortune 500 companies currently have critical roles unfilled for six months or more – a situation that could be improved with greater flexibility in the H1-B visa program and better collaboration between public and private sectors to direct qualified talent where it is most needed.
Despite ongoing layoffs, labor shortages persist. Revelio Labs found that over 43.4% of companies had more than 50 technical positions they were unable to fill in the past year, accounting for 68.8% of approved H-1B visa holders in 2021.
Our visa allocation system, which could otherwise provide a dependable talent pipeline to fill open roles and attract the best candidates globally, is hindered by restrictions that limit visa holders’ mobility in a market that demands flexibility. A truly market-sensitive visa allocation system would enable companies to obtain the staff they need, ultimately stabilizing the workforce, reducing talent shortage costs, and bridging skills gaps – projected to result in a loss of up to $162 billion by 2030.
One of the most criticized and harmful aspects of the H1-B visa process is the annual cap of 65,000 visas (plus an additional 20,000 for U.S. graduate degree holders), which has remained unchanged since the program’s inception over two decades ago. In 2023 alone, this meant that over 483,000 applicants were rejected despite millions of job openings.
This isn’t the first time demand has exceeded this limited supply. Between 2008 and 2020, the cap was reached within the first five business days of opening the application on several instances. Last year, visa registrations increased by 56.8%.
To address the millions of vacant roles, we need adaptable, market-sensitive visa policies to regulate foreign labor flow rather than arbitrary and outdated federal restrictions.
Local municipalities are best suited to determine the number of foreign workers they can accommodate. Companies spend $5,000 to $10,000 more to hire H1-B visa holders than U.S. citizens. Instead of investing time and resources in a federal system that may or may not meet a company or community’s talent needs, companies could pay municipalities where their foreign worker resides and receive a guaranteed visa in return. This arrangement would benefit both companies and municipalities.
Chicago provides a glimpse of what might happen if municipalities were empowered to manage foreign worker hiring. The city recently initiated a coordinated effort between 35 firms willing to hire H1-B visa holders and a nonprofit organization to create a specialized job listing website advertising these jobs as H1-B visa sponsorships. This public-private partnership aims to fill over 400,000 open positions by tapping into the pool of tech sector workers laid off while on a visa. It’s an excellent starting point and a model that would be even more scalable and sustainable if the revenue from companies covering visa application costs went back to the city rather than the federal government.
The recent headlines about massive layoffs in Silicon Valley have left thousands of H-1B visa holders in a precarious position, with only 60 days to secure new opportunities before facing potential deportation. The upheaval caused by such instability is immense, and if we don’t find improved ways to support and retain foreign talent, we risk losing these skilled workers to their home countries or to other nations with more welcoming immigration policies, such as Canada, New Zealand, or Switzerland. This loss of talent will undoubtedly have far-reaching implications for both our local communities and America’s standing in the global economy.
While we’ve made significant progress in addressing discriminatory hiring practices based on race, religion, or gender, our current visa system still allows geographical factors to unfairly hinder even the most qualified candidates. If we were to prioritize market forces and merit over a lottery system when deciding which foreign laborers to welcome, we’d likely see a decrease in job vacancies and an increase in contributions from top talent worldwide to our workforce and communities.
Failing to hire and retain exceptional non-native talent gives our international competitors an advantage that was once America’s greatest strength. Although the complexities of U.S. immigration policy require numerous reforms to better serve our economic interests, the stakes are too high to continue hindering our own progress. Addressing this issue will enable companies to acquire the talent they need, promote city growth, and ultimately create a more efficient and equitable workforce.
Leading battery stocks are set to stand out as the demand for electric vehicles surges. The International Energy Agency predicts that one in every five cars globally will be electric this year, significantly impacting EV battery demand.
In fact, Fortune Business Insights estimates that the global EV battery market could expand from $37.9 billion in 2021 to nearly $98.9 billion by 2029, benefiting these three battery stocks.
Albemarle (ALB)
A prime investment opportunity in the electric vehicle battery boom lies in lithium stocks, such as Albemarle (NYSE:ALB). Firstly, the company announced a $1.3 billion investment in a new lithium hydroxide plant in South Carolina to address battery demand. Secondly, the facility is expected to generate around 50,000 metric tons of battery-grade lithium, with the capacity to double production.
Thirdly, this output could facilitate the manufacturing of 2.4 million electric vehicles annually. Adding to the potential growth, lithium prices are recovering. Citigroup analysts even suggest that the downturn in lithium prices may have ended, with an anticipated increase of up to 40% by year-end.
Furthermore, Albemarle has now partnered with Ford, providing battery-grade lithium hydroxide for the automaker’s EVs. Under the agreement, Albemarle will supply over 100,000 metric tons of battery-grade lithium hydroxide to power roughly 3 million future Ford EV batteries. The five-year supply contract commences in 2026 and runs through 2030.
Solid Power
Although the chart might not look promising, Solid Power (NASDAQ:SLDP) should not be dismissed. Needham analysts recently reinstated their buy rating for the stock with a $5 price target, referring to SLDP as a “well-funded call option.” Solid Power is also working to strengthen its partnership with BMW (OTCMKTS:BMWYY) through a joint development agreement, which contributed to the company’s $3.8 million revenue in Q1 2023, an increase of $1.6 million YoY.
Moreover, the company has two significant milestones this year: anticipated improvements in key cell performance metrics and the expected delivery of EV cells to partners by late 2023.
Amplify Lithium & Battery Technology ETF (BATT)
With a 0.59% expense ratio, the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) offers investors access to international companies involved in lithium battery technology.
As lithium prices recover, the BATT ETF is also gaining momentum. In fact, with the aggressive increase in lithium prices, the BATT ETF has risen from a recent low of $11.60 to $12.59 per share. Moving forward, it would be ideal for the BATT ETF to retest the $14 per share mark.
Meta, the parent company of Facebook, has recently announced a second round of mass layoffs, affecting thousands of its employees. Among those most greatly affected are employees working in the US on an H1B visa, who are left with limited time to find alternative employment in the country, otherwise they face deportation.
Kushal Naidu, a program manager at Meta working in Texas, took to LinkedIn to request help in finding a new job which could sponsor his H1B visa. He stated that he had been impacted by the company’s latest round of layoffs and was actively seeking new opportunities in program management, data engineering and data analytics. “I am in the US on a work visa (H1B) and therefore, I need to find a job soon,” Naidu added in his LinkedIn post.
Another employee impacted by the layoffs is Sneha Agarwal, a data specialist who had been with Meta for three years. She also took to LinkedIn to request help in finding new data science & analytics/Analytics Program Manager roles with a company that is willing to sponsor her work visa.
Meta’s latest round of layoffs followed a hiring spree that saw the company expand its workforce since 2020. The cuts brought the company’s headcount back to its mid-2021 levels. CEO Mark Zuckerberg announced that the bulk of the layoffs would take place in three moments over several months, largely finishing in May, with some smaller rounds potentially continuing after that.
The layoffs have left many employees in a difficult position, particularly those on work visas who are now scrambling to find new employment in the US before their visas expire. The uncertainty and instability of the job market has only added to the challenges they face.
Despite the difficulties faced by those impacted by the layoffs, many are turning to their network on LinkedIn in hopes of finding new employment. LinkedIn has a feature that allows job seekers to highlight their H1B visa status, increasing their chances of finding an employer willing to sponsor their visa.
The impact of Meta’s layoffs highlights the challenges faced by foreign workers in the US job market. The H1B visa program has long been criticized for its limitations and complexities, which can leave workers vulnerable to exploitation and uncertainty. The current situation only exacerbates these challenges, leaving many workers anxious about their future in the country. As companies like Meta continue to scale back their workforce, it remains to be seen how the job market will adapt to accommodate those impacted by the layoffs.
Despite a slight easing in inflation, a considerable number of consumers continue to feel the pinch. The proportion of adults who feel financially stretched remained nearly constant at 61% as of April, as per a recent LendingClub report.
Interestingly, the report reveals that high-income earners are experiencing increased pressure. Among those with six-figure incomes, 49% now live paycheck to paycheck, up from 42% last year. On the other hand, individuals earning less than $100,000 saw either a steady percentage or a decline in those living paycheck to paycheck during the same period.
Your financial status might be influenced by where you reside
Anuj Nayar, LendingClub’s Financial Health Officer, explains that “a $100,000 income may not stretch that far” depending on your location. A separate study by SmartAsset examined how far a six-figure salary stretches in the 25 largest cities in the United States. In New York City, for instance, $100,000 is equivalent to just $35,791 after accounting for taxes and the high cost of living.
In contrast, a $100,000 salary goes much further in Memphis, equating to approximately $86,444 thanks to a lower cost of living and no state income tax. LendingClub found that 69% of city dwellers live paycheck to paycheck, which is 25% more than their suburban counterparts. Nayar highlights, “where you live appears to be almost equally important in factoring whether a consumer is living paycheck to paycheck.”
Rising mortgage rates, home prices, and rents in many cities across the country contribute to these financial challenges, as evidenced by the latest data from rental listings site Rent.com. As of the previous month, 29 of the 50 most populous U.S. cities registered year-over-year rent increases.
Jon Leckie, a researcher for Rent.com, notes that compared to two years ago, rents have surged by over 16%—equivalent to a $275 hike in monthly rent bills. He adds, “That kind of growth over such a short period of time is going to put a lot of pressure on pocket books.”
Escaping the paycheck-to-paycheck cycle
It can be challenging, especially for high earners and city dwellers who often fall victim to “lifestyle creep,” according to Carolyn McClanahan, CFP and founder of Life Planning Partners in Jacksonville, Florida.
As people’s incomes increase, their spending habits tend to follow suit, particularly when it comes to dining out, using food delivery services like DoorDash, and subscribing to additional services. McClanahan warns that it’s easy to “fall into the trap of too much convenience spending.”
To overcome this cycle, McClanahan, who is also a member of CNBC’s Advisor Council, recommends evaluating convenience spending and identifying areas that don’t bring value. She advises, “the first thing to do is look at convenience spending and figure out ways to cut the spending that is not bringing them value.” Redirect the money saved from cutting unnecessary expenses towards building an emergency fund.
Once you’ve accumulated three to six months’ worth of expenses in your emergency fund, shift your focus to saving for other financial goals.
Many people associate wealth with owning a luxurious home, an extravagant car, and other valuable possessions. However, the top one per cent of the world’s wealthiest individuals possess far more than most can fathom.
Global real estate consulting firm Knight Frank recently published its updated Wealth Report, which discloses the amount of wealth required to become part of the elite one per cent in various countries. Monaco leads the pack, where entering the top tier necessitates a net worth of at least eight figures. According to Knight Frank’s findings, the starting point for Monaco’s wealthiest one per cent is $12.4 million.
Wondering about India? The country ranks 22nd on the list of 25 nations featured in the wealth report, with a minimum requirement of $175,000 (Rs 1.44 crore) to join the top one per cent. India places higher than South Africa, the Philippines, and Kenya.
Knight Frank’s 2022 report highlights that the number of ultra-high-net-worth individuals in India grew by 11 per cent, driven by thriving equity markets and a digital revolution. Among Asian countries, Singapore boasts the highest entry threshold, with $3.5 million needed to join the top one per cent, slightly ahead of Hong Kong’s $3.4 million.
Forbes’ 2023 list of billionaires includes 169 Indians, up from 166 the previous year. Mukesh Ambani retains his title as the richest person in both India and Asia, despite an eight per cent decrease in his wealth over the past year.
Knight Frank’s findings emphasize how the pandemic and rising living expenses have exacerbated the divide between affluent and impoverished nations. The entry-level for Monaco’s wealthiest is over 200 times greater than the $57,000 required to be part of the top one percent in the Philippines, which ranks among the lowest in Knight Frank’s study.
Swiggy CEO Sriharsha Majety has said that their food delivery business has turned profitable (as of March 2023), after factoring in all corporate costs, excluding employee stock option costs.
Without sharing any numbers, Majety said that this is a milestone for food delivery globally, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception.
“Our teams are more in sync than ever with restaurant partners to improve their experience with Swiggy and create mutual wins. As a result, our restaurant net promoter score (NPS) has improved by over 100 per cent in the past 8 quarters,” he mentioned.
Last year, Swiggy acquired Dineout for around $120 million in an all-stock deal.
Today, “it is the leader in the dining out category with more than 21,000 restaurant partners across 34 cities”, said the CEO.
The CEO also said that the are excited about the trajectory of quick commerce business, Instamart.
“We’ve also made strong progress on the profitability of this business and we’re on track to hit contribution neutrality for this 3-year-old business in the next few weeks,” Majety informed.
According to market research firm RedSeer, the quick commerce domain is anticipated to touch $5.5 billion by 2025.
Swiggy’s losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year.
Its revenue grew 2.2 times to Rs 5,705 crore during FY22 as opposed to Rs 2,547 crore in FY21, according to its annual financial statement with the Registrar of Companies (RoC). (IANS)
The IRS has revealed plans to initiate a trial of a complimentary, direct online tax-filing system for the 2024 tax season. This decision is based on significant taxpayer interest and a relatively low cost associated with the system.
In their eagerly awaited report, the IRS disclosed that they have developed a prototype system which will be introduced through a pilot program. The program will involve a limited number of taxpayers and offer restricted functionality, enabling the Treasury Department to assess how users engage with the system, according to IRS and Treasury officials.
Laurel Blatchford, who leads the Treasury Department’s office responsible for implementing the Inflation Reduction Act, stated, “Dozens of other countries have provided free tax-filing options to their citizens, and American taxpayers who want to file their taxes for free online should have an acceptable option.”
The Inflation Reduction Act increased IRS funding by $80 billion and mandated the agency to evaluate the feasibility of a direct tax-filing system. If implemented, this program could potentially allow taxpayers to prepare and submit their taxes without relying on popular tax preparation companies, which have invested millions to oppose similar proposals in the past.
IRS considers revamping tax filing process
The IRS has identified a strong demand for a complimentary tax-filing service, now referred to as “Direct File.” Laurel Blatchford mentioned, “Seventy percent of the public is interested in a free option deployed by the IRS, so we think there will be excitement there.” The Treasury Department’s decision to proceed with the pilot program was influenced by evident taxpayer interest.
An IRS-conducted survey revealed that 72 percent of taxpayers expressed high or moderate interest in using the direct file service. Additionally, 68 percent of those who prepare their returns stated they would be highly or moderately likely to switch to the IRS’s free online tool.
Significant impact with minimal expected cost
The report estimates the direct file system’s cost to be only a small portion of the $80 billion budget increase the IRS obtained through the Inflation Reduction Act, most of which is designated for enhanced enforcement capabilities. The report found that “Annual costs of Direct File may range from $64 million (assuming 5 million users and a narrow scope of covered tax situations) to $249 million (assuming 25 million users and a broad scope of covered tax situations).”
Funding for this initiative will be sourced from the IRS’s technology and products budget, as well as its customer support budget. IRS Commissioner Danny Werfel also suggested that systems modernization funds allocated in the Inflation Reduction Act could be utilized to strengthen the system.
Understanding Direct File
The report suggests that taxpayers’ confidence in using the IRS system stems from the fact that the IRS already has access to their personal information. However, Danny Werfel, the IRS Commissioner, stated that the direct file prototype would not likely utilize pre-populated forms to further automate interactions with government software, explaining, “Given that it will be limited in scope, we do not expect pre-population or predetermining tax obligations to be part of it.”
This implies that the prototype software will likely adopt a question-and-answer format, similar to many commercial software options, as indicated by the IRS’s recent strategic operating plan for its expanded budget.
Direct File eligibility
Tuesday’s report outlines various scenarios that the Direct File system could accommodate, ranging from basic wage income taxed with the standard deduction to more complex situations involving state returns. Werfel mentioned that the pilot program would further determine the specific taxpayer cases that could utilize the system.
With nearly 90% of all filers using the standard deduction and wages and salaries being taxed at 99% compliance, the Direct File system might handle the majority of common tax situations. This has led to recommendations for a direct file option from the Government Accountability Office, the National Taxpayer Advocate, and numerous tax experts over the years.
Since the early 2000s, the IRS’s Free File program, an agreement between the IRS and a group of private tax preparation companies, has offered free commercial software to lower-income individuals. However, only a small percentage of eligible taxpayers have used it, resulting in accusations of deceit and a $141 million settlement paid by TurboTax maker Intuit to taxpayers across nine states.
Lawmakers’ opinions on IRS e-filing
Rep. Brad Sherman (D-Calif.) wrote a letter to Werfel this week, encouraging the adoption of an e-filing program and stating, “The IRS established the free e-filing program in 2003, but it did so in partnership with major tax preparation software companies that frequently mislead taxpayers into paying for their services.”
Werfel recently asserted that his agency has the legal authority to proceed with the report’s conclusions, despite opposition from Senate Finance Committee Republicans. He also mentioned being open to other legal interpretations if questions about authority arise.
Both Republican and Democratic administrations have supported the idea of more direct tax filing methods in the past. Kitty Richards, former director of State and Local Fiscal Recovery Funds at the U.S. Department of the Treasury, highlighted proposals from Presidents Ronald Reagan and George W. Bush for voluntary return-free systems and an easy, no-cost online filing option, respectively. However, she noted that the tax preparation industry recognized the threat a free government tax preparation and filing process would pose to their profits.
Nations worldwide are embarking on an irreversible course to break away from the US dollar, according to seasoned investment expert Matthew Piepenburg. In a recent interview at the Deutsche Goldmesse conference with the Soar Financially YouTube channel, Piepenburg, partner at emerging markets-focused Matterhorn Asset Management, claims that major economies are now evidently trying to distance themselves from dollar dominance.
He asserts that the US Federal Reserve’s interest rate hikes are driving countries like China and Russia to adopt settlement systems that don’t depend on the USD. In addition to China and Russia, both members of the BRICS coalition, Piepenburg reveals that 41 other nations are following suit, possibly concerned about how the US has treated Russia during its conflict with Ukraine.
Piepenburg explains, “So when that dollar gets higher, because Powell is raising the rates, that becomes more onerous and painful for the rest of the world and they begin to break ranks.” He further adds, “Asia in general, China and Russia in particular are very big rank-breaking nations. And, of course, they’re bringing 41 other countries alongside to have trade settlements outside the US dollar.”
The BRICS group, representing the economically-aligned nations of Brazil, Russia, India, China, and South Africa, is considering launching a global currency that does not rely on the US dollar. Several nations reportedly want to participate, including Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed East African countries, and one from West Africa.
While Piepenburg doesn’t foresee the yuan or any other currency replacing the dollar as the world reserve currency in the near future, he does identify a “clear trend” of countries worldwide bypassing the dollar as the primary, trusted medium of trade. He concludes, “The clear trend of breaking ranks with the US dollar as a trusted, reliable, dependable trade currency and payment system is now I think irrevocable.”
The World Health Organization (WHO) advises against using sugar substitutes for weight loss, as new guidelines reveal that non-sugar sweeteners (NSS) do not provide long-term benefits in reducing body fat for adults or children. Francesco Branca, director of WHO’s Department of Nutrition and Food Safety, stated, “Replacing free sugars with non-sugar sweeteners does not help people control their weight long-term.” The guidance applies to everyone except those with preexisting diabetes.
While the review identified potential undesirable effects from long-term sugar substitute use, such as a mildly increased risk of type 2 diabetes and cardiovascular diseases, Branca clarified that the recommendation doesn’t comment on the safety of consumption. He added, “What this guideline says is that if we’re looking for reduction of obesity, weight control or risk of noncommunicable diseases, that is unfortunately something science been unable to demonstrate.”
The US federal government is on the brink of being unable to make debt payments, and it’s up to Congress to vote on raising the nation’s borrowing cap, also known as the debt limit. However, House Speaker Kevin McCarthy (R-Calif.) and President Biden are currently at odds over Republican demands to link the debt limit to spending caps and other policy requirements. Treasury Secretary Janet Yellen has cautioned that the country could exhaust its borrowing authority by June 1, leaving little time for negotiators to reach a consensus.
In a recent meeting with McCarthy, House Democratic Leader Hakeem Jeffries (D-N.Y.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Senate Minority Leader Mitch McConnell (R-Ky.), Biden aimed to find a way forward. Although they didn’t reach an agreement, staff-level discussions continue in an attempt to avert default.
Debt ceiling
You might have some questions about the debt ceiling and the ongoing debate. The debt ceiling, or debt limit, is a restriction on the amount of debt the federal government can accumulate. As Jason Furman, a former economic advisor to President Obama and current economics professor at Harvard, explains, “It used to be that every time you did a Treasury auction where you borrowed, Congress would pass a new law just for that one auction.” However, in 1917, during World War I, Congress opted for a more streamlined approach, allowing the government to borrow up to a specified amount before needing to request an increase. Since 1960, Congress has raised or suspended the debt limit 78 times, according to the Treasury Department.
How do experts know when the government has really run out of funds?
Picture : NBC
Experts determine when the government is nearing its funding limit by examining expected tax revenue, the timing of those payments arriving in Treasury accounts, and scheduled debt payments. This analysis helps establish a timeframe, referred to as an X-Date, when the debt authority might be depleted.
Nonetheless, the Treasury Department has several options, known as extraordinary measures, to prevent default. These measures involve reallocating investments and using accounting techniques to redistribute funds. The federal government technically reached the debt limit in January, but these extraordinary measures have maintained payment flows since then. While experts cannot pinpoint an exact date for when funds will be exhausted, they can estimate a general range, which currently falls between early June and potentially as late as July or August.
Why is there a fight over it?
Debt has generally been viewed unfavorably in American politics, and lawmakers often hesitate to be seen as endorsing more federal borrowing or spending. Additionally, they tend to attach unrelated priorities to must-pass legislation, making the debt limit a prime target for political disputes.
As Maya MacGuineas, president of the Committee for a Responsible Federal Budget, explains, “Everybody uses [bills to increase] the debt ceiling for their favorite policies.” The real issue arises when discussions about defaulting become more serious. Historically, votes to raise the debt limit were relatively uneventful; however, the situation changed in 2011 when the US came dangerously close to default.
Mark Zandi, an analyst at Moody’s Analytics, notes that while there have been previous political battles over the debt, none were as risky or significant as the 2011 conflict. At that time, Republican House Speaker John Boehner (R-Ohio) and President Obama were in a standoff over spending. Republicans demanded deep spending cuts and caps on future spending growth, while Obama insisted on raising the debt limit without any extraneous policies – a clean increase.
Ultimately, Congress reached an agreement to increase the debt limit along with caps on future spending, but not before Standard & Poor’s downgraded the nation’s debt for the first time in history. Today’s situation bears a striking resemblance to the 2011 political struggle, raising serious concerns about the possibility of a default.
What could happen if it’s not raised?
If the debt ceiling is not raised, the Treasury Department would be unable to fulfill its due payments, resulting in a default. This would occur regardless of the type or size of the missed payment.
Some Republicans have proposed a system called payment prioritization, in which certain debts are selected for repayment. However, this would require Congress to pass new legislation, which is politically improbable. Moreover, most experts believe that implementing such a system could be practically unfeasible, and it is not currently being considered as a serious solution.
Has the U.S. ever failed to make these debt payments?
No, the U.S. has never failed to make its debt payments. This reliability is a significant reason why the federal government can easily sell Treasury bonds to investors worldwide and why the U.S. dollar is one of the most trusted currencies.
As MacGuineas points out, “Treasuries are the debt vehicle that are most trusted in the entire world, even if there is an economic crisis that originated in the U.S., people come and buy treasuries because they trust them.” If that trust is jeopardized due to a default or missed interest payment, the U.S. would likely struggle to regain its previous status as the world’s most trusted debtor.
Would capping or cutting spending now resolve the problem?
No, capping or cutting spending now would not resolve the problem, as the debt limit pertains to money already spent due to laws previously passed by Congress. Furman emphasizes that “this borrowing isn’t some unilateral thing that President Biden wants to do… It is in order to accomplish what Congress told him to accomplish.”
Some of the current debt accumulation even results from laws enacted under former presidents, such as Donald Trump. Spending caps and other changes proposed by House Republicans are separate policies designed to address future debt accumulation rather than the immediate need to raise the debt limit.
What else could be affected by a default?
The possibility of a U.S. default may result in a domino effect of negative outcomes across the worldwide financial landscape. The nation’s credit rating could suffer long-term damage, diminishing the value of U.S. treasuries and making it a less attractive investment destination. MacGuineas expressed deep concern, stating, “I am truly concerned there is an actual chance of default and that is so dangerous and such a sign that the U.S. is not able to govern itself in a way that is functioning.”
Zandi cautioned that the fallout might extend beyond merely investment and borrowing rates. He advised, “Don’t worry about your stock portfolio, worry about your job,” emphasizing the potential loss of employment and increased unemployment rates. He added, “This will certainly push us and, you know, it’s going to be about layoffs. Stock portfolios will be the least of people’s worries.”
Furman compared the potential crisis to the 2008 financial meltdown caused by Lehman Brothers Bank’s collapse, suggesting it could be even more severe. “It could be worse than Lehman Brothers, where everyone basically demands their money back because they don’t believe the collateral anymore,” he explained. “And you have the equivalent of a run on the global financial system.”
Is default the same thing as a shutdown?
Default and shutdown are not the same thing. A government shutdown transpires when Congress does not pass annual spending bills before the fiscal year concludes on September 30. Although these two matters may be connected at times, this is because legislators have, on occasion, deliberately synchronized the debt limit extension with the end of the fiscal year to prompt more comprehensive spending debates in conjunction with debt authorization.
Are there other ways this problem could be fixed, aside from just increasing the debt limit?
Apart from merely raising the debt limit, there are alternative solutions to address the issue, as the existing process is widely considered ineffective. MacGuineas from the Committee for a Responsible Federal Budget believes that while Congress should reassess debt and spending priorities, the current debt limit mechanism fails to compel them to make decisions. She stated, “The debt ceiling is a terrible way to try to impose fiscal responsibility,” describing it as a “dumb approach.”
Instead, MacGuineas proposes a system where the debt limit is increased in line with the passage of legislation by Congress. Some economists have even suggested eliminating the debt limit entirely.
Other less conventional ideas involve minting a $1 trillion platinum coin to cover the debt or elevating the limit to such an extent that subsequent debates would be postponed for years or even decades.
New Delhi: The Reserve Bank of India (RBI) has announced its decision to phase out ₹ 2,000 notes and has set a deadline of September 30 for people to exchange or deposit them in their bank accounts. Starting May 23, the RBI’s 19 regional offices and other banks will accept ₹ 2,000 notes in exchange for lower denomination currency. It is important to note that these notes will continue to be considered legal tender, as stated by the RBI.
The RBI has instructed all banks to cease issuing ₹ 2,000 notes with immediate effect.
The introduction of the ₹ 2,000 note took place in November 2016 after Prime Minister Narendra Modi’s sudden demonetization move, which rendered high-value ₹ 1,000 and ₹ 500 notes invalid overnight.
The RBI explained its decision, stating, “The purpose of introducing ₹ 2,000 banknotes was fulfilled once banknotes of other denominations became sufficiently available. Consequently, the printing of ₹ 2,000 banknotes was discontinued in 2018-19.”
To ensure convenience and minimize disruption to regular banking operations, the RBI has allowed the exchange of ₹ 2,000 notes for lower denomination notes, up to a limit of ₹ 20,000 at a time, at any bank beginning May 23, 2023. This facility will be available until September 30, allowing individuals to either exchange or deposit their ₹ 2,000 notes.
Sources informed NDTV that the RBI might extend the deadline beyond September 30 if necessary. However, even after the current deadline, ₹ 2,000 notes will remain valid as legal tender.
The RBI highlighted that approximately 89% of ₹ 2,000 denomination banknotes were issued before March 2017 and are reaching the end of their expected lifespan of four to five years. The total value of these notes in circulation decreased from ₹ 6.73 lakh crore at its peak on March 31, 2018 (comprising 37.3% of the currency in circulation) to ₹ 3.62 lakh crore, representing only 10.8% of the currency in circulation as of March 31, 2023.
The central bank emphasized that the ₹ 2,000 note is not commonly used for transactions. Similar measures were taken by the RBI in 2013-2014 when certain notes were phased out of circulation.
The United States has consistently maintained a high trade deficit for decades, raising questions about how the country manages to avoid economic repercussions that typically accompany such imbalances. This article delves into the factors that enable the US to sustain these high deficits without experiencing financial collapse.
Picture : The Blance
One of the primary reasons the US can maintain high trade deficits is the dominance of the US dollar as the world’s reserve currency. Central banks across the globe hold their foreign exchange reserves in dollars, contributing to the currency’s stability and demand. This status allows the US to run persistent trade deficits without causing a depreciation in its currency value.
Another factor that enables the US to support high trade deficits is the inflow of foreign investments. International investors view the US as a safe haven for their capital due to the country’s strong and stable economy. These investments help finance the trade deficit by providing an influx of foreign funds, which offsets the negative effects of the deficit on the US economy.
The US economy is driven primarily by domestic consumption, which accounts for approximately 70% of its GDP. This strong demand for goods and services helps offset the trade deficit by creating a robust market for imports. As a result, the US can continue importing goods from other countries without significantly harming its own industries.
The US is a global leader in innovation and technological advancements, which contribute to the country’s overall economic strength. These innovations attract foreign investments and facilitate the export of high-value goods and services, such as software, pharmaceutical products, and aerospace technology. This, in turn, helps to mitigate the impact of the trade deficit on the US economy.
The US government’s fiscal policies also play a role in managing the trade deficit. By implementing policies that promote economic growth, the government can stimulate demand for goods and services. Additionally, the US Federal Reserve’s monetary policies influence interest rates and the money supply, which can impact the trade deficit indirectly.
Despite maintaining a high trade deficit, the United States has managed to avoid the economic pitfalls often associated with such imbalances. Factors such as the US dollar’s status as a global reserve currency, foreign investment, strong domestic demand, innovation, and government fiscal policies all contribute to the country’s ability to sustain these deficits. However, it is essential to continue monitoring the trade deficit and its potential long-term impacts on the US economy.
(AP) — Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.
In a settlement last year, TurboTax’s owner Intuit Inc. was ordered to pay $141 million to some 4.4 million people across the country. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns across the 2016, 2017 and 2018 tax years due to “predatory and deceptive marketing,” New York Attorney General Letitia James said.
All 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.
Consumers eligible for restitution payments do not need to file a claim, the New York Attorney’s General Office said Thursday. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.
Checks will be mailed starting next week, and continue through the month of May. The amount paid to each eligible consumer ranges from $29 to $85 — depending on the number of tax years they qualify for.
“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a Thursday statement. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”
At the time of the May 2022 settlement, James said her investigation into Intuit was sparked by a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for — and toward its own commercial products instead.
Under the terms of last year’s settlement, Intuit Inc. agreed to suspend TurboTax’s “free, free, free” ad campaign. According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone.
“The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said, per ProPublica. “Customers are getting upset.”
When contacted by The Associated Press on Friday, Inuit pointed to the company’s May 2022 statement following the settlement agreement.
“Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” Kerry McLean, Intuit’s executive vice president and general counsel, said at the time.
The Biden administration has issued a warning to Americans concerning the financial risks associated with medical credit cards and other loans for medical bills. In a recent report, the Consumer Financial Protection Bureau (CFPB) estimated that Americans paid $1 billion in deferred interest on medical credit cards and other medical financing between 2018 and 2020. The agency found that interest payments can increase medical bills by almost 25 percent, which can deepen patients’ debts and threaten their financial security.
CFPB’s Director, Rohit Chopra, stated that “lending outfits are designing costly loan products to peddle to patients looking to make ends meet on their medical bills. These new forms of medical debt can create financial ruin for individuals who get sick.” Nationally, KFF Health News found that approximately 100 million people, including 41 percent of adults, have healthcare debt. This large scale problem is feeding a multibillion-dollar patient financing business, with private equity and big banks looking to capitalize on the situation when patients and their families are unable to pay for care. The profit margins in the patient financing industry top 29 percent, according to research firm IBISWorld, which is seven times what is considered a solid hospital profit margin.
One of the most prominent financing options is credit cards like CareCredit offered by Synchrony Bank which is often marketed in physician and dentist waiting rooms to help pay off medical bills. These cards typically offer a promotional period where patients pay no interest, but if the patient missed a payment or could not pay off the loan during the promotional period, they could face interest rates that rise as high as 27 percent, according to the CFPB. Patients are also increasingly drawn into loans administered by financing companies such as AccessOne.
These loans, which often replace no-interest instalment plans that hospitals once commonly offered, can add hundreds or thousands of dollars in interest to the debts patients owe. Hospital and finance industry officials insist that they take care to educate patients about the risks of taking out loans with interest rates. However, federal regulators have found that many patients remain confused about the terms of the loans.
According to the CFPB, the risks are particularly high for lower-income borrowers and those with poor credit. About a quarter of people with a low credit score who signed up for a deferred-interest medical loan were unable to pay it off before interest rates jumped. By contrast, just 10% of borrowers with excellent credit failed to avoid the high interest rates. Regulators found that many patients remained confused about the terms of the loans and that patients often didn’t fully understand the products’ terms and found themselves in crippling financing arrangements.
Despite this, the new CFPB report does not recommend new sanctions against lenders. The study cautioned that the system still traps many patients in damaging financing arrangements. It also stated that “consumers complain that these products offer confusion and hardship rather than benefit, as claimed by the companies offering these products.” The report concluded that “many people would be better off without these products.”
The growth of patient financing products pose risks to low-income patients. Patients should be offered financial assistance to pay large medical bills, but instead, they are funnelled into credit cards, debt consolidations or personal loans that pile interest on top of medical bills they cannot afford.
An investigation conducted by KFF Health News with NPR explored the scale and impact of the nation’s medical debt crisis. They found that 41% of adults have some form of healthcare debt. In the patient financing industry, profit margins are over 29%, which is nearly 7x higher than what is considered to be a solid hospital profit margin. A UNC Health public records analysis found that after AccessOne began administering payment plans for the system’s patients, the percentage of people paying interest on their bills increased from 9% to 46%.
According to the CFPB, “Patients appear not to fully understand the terms of the products and sometimes end up with credit they’re unable to afford.” Federal regulators warned that patient financing products pose another risk to low-income patients. They should be offered financial assistance with large medical bills, but instead, they are being routed into credit cards or loans that pile interest on top of medical bills they cannot afford.
Medical credit cards and other loans for medical bills can deepen patients’ debts and threaten their financial security. The number of people with healthcare debts is increasing, and many patients remain confused about the terms of the loans. Profit margins in the patient financing industry are high, and patients are often funnelled into credit cards rather than offered financial assistance with large medical bills. This can lead to confusion and financial ruin for those who get sick. The report concluded that “many people would be better off without these products.”
As fears of a looming recession rise, David Rosenberg, president of Rosenberg Research and former chief North American economist at Merrill Lynch, suggests that a recession might be imminent. Despite recent GDP figures showing growth, Rosenberg forewarns that the leading indicators hint that a recession could start as early as this quarter.
With inflation on the rise, Americans are struggling with wages that cannot keep up with the increasing cost of living. Should a recession occur, it could cause worse financial difficulties for many. Rosenberg explains a recession as a “haircut to national income” that is comparable to “the whole country taking a pay cut.” The effects of a recession will not only impact individuals but could also spell trouble for the stock market.
The outbreak of the pandemic, coupled with variations, broke the world’s economy, and a recession was just one of many repercussions. Even as the world struggled to recover from the pandemic’s impact, the United States Federal Reserve began hiking interest rates in early 2022. This move caused fears among investors as rates influence the economy and the stock market. Although the GDP figures indicate an expanding economy, Rosenberg warns that a recession might be closer than anticipated.
An economic recession could lead to increased unemployment, lower wages, and volatile stock markets, further exacerbating the gap between the rich and the poor. Therefore, policymakers must put measures to prevent such economic shockwaves, as a recession has far-reaching impacts on the nation’s livelihood and global economies.
Bear Market
According to David Rosenberg, he believes that he is bearish on equities as he’s not confident that all recessions are fully priced in, given the current valuations. He asserts that investing in investment-grade corporate bonds could be a plausible route to take due to the attractive yields on offer with debt offering priority over equity in a company’s capital structure. Among other opportunities, private credit investments have also emerged which offer a higher yield for investors who are looking to diversify their portfolios, but aren’t satisfied with most conventional savings accounts or certificates of deposit (CDs).
The S&P 500 took a bad hit in 2022, plunging 19.4%, and although it has experienced some revival in 2023 with a 9% uptick year-to-date, Rosenberg doesn’t believe this will be long-lived. On account of valuation, he highlights that there is a pressing concern regarding the 19 forward multiple. In his view, this will only result in a 5.3% earnings yield, whereas, he could “pick up 5.4% in single-A triple-B corporate credit” to “wind up in a better part of the capital structure”.
While bondholders will be given the first bite of the cherry, David Reilly, Chief Investment Officer at Nuveen’s Global Private Markets Group, highlights that these investors will often come with other expenses. The cost of investing in corporate credit to access these desirable yields could potentially see investors being forced to invest in leveraged loans or more higher-risk credit. Regardless of the obstacles, it is evident that there is a lot of funds in this space, given the record low-interest rates and a thirst for yield.
Furthermore, while commercial real estate has been enjoying high rewards too, there is significant debate concerning its future given flexible working now being the norm over an office-based environment. Consequently, alternative forms of profitable investments continue to shine and could serve as an alternative means for investors to access the exposures they desire.
From Weak Hands To Strong Hands
David Rosenberg has predicted that the S&P 500 will see a drop of around 23% due to a forthcoming recession in the US economy. His prediction, which is based on an assumption of a “classic 20% hit to earnings” and multiples falling to 15 or 16, puts the target price at 3,200. While the prospect of a significant downturn is not generally good news for investors, Rosenberg believes that those who have “dry powder and liquidity” will have an opportunity to purchase assets at better prices. This is because during a recession, assets tend to fall from weaker hands to stronger ones. The cleansing effect of the recession on the market means that it could be a good time to invest, providing the investor has the necessary liquidity. Rosenberg’s portfolio is currently underweight in equities, with the lowest weighting since 2007. Instead of stock investments, he has turned to bonds, gold, and alternative investments as uncorrelated supports to GDP.
Individuals looking to prepare for an economic downturn can invest in alternative assets, such as real estate. With as little as $100, those without extensive investment portfolios can diversify their holdings and potentially gain consistent income. Several assets offered today are well suited to taking advantage of trends in real estate, including real estate investment trusts, which provide periodic income and portfolio diversification. Investors can also turn to private real estate funds that invest in various types of property, such as commercial or residential, to further diversify their portfolio. Those with an entrepreneurial spirit can even take part in crowdfunding campaigns, which give access to small, high-yielding, long-term projects.
Despite the fears of market downturns, many investors are still seeing opportunities for growth and expansion. The current market conditions do not predict immediate economic disaster, and the ability to protect wealth and diversify through alternative assets offers investors a resilient portfolio. As we continue further into the 21st century, alternative asset classes will become an increasingly important component of investment portfolios.
US Treasury Secretary Janet Yellen has issued a warning that the United States could run out of cash by 1 June if Congress fails to raise or suspend the debt ceiling. The country reaching the debt ceiling means the government would be unable to borrow any further money. On Monday, Yellen urged Congress to act quickly to address the $31.4 trillion debt ceiling. In response, President Joe Biden has called a meeting of congressional leaders to discuss the issue on May 9th.
The debt ceiling has been raised, extended, or revised 78 times since 1960. However, in this instance, House Republicans are demanding drastic spending cuts and a reversal of some aspects of President Biden’s agenda, including his student loan forgiveness program and green energy tax credits, in exchange for votes to raise the debt ceiling. This has resulted in objections from Democrats in the Senate and from President Biden himself, who stated last week that the issue is “not negotiable.”
The president is coming under increasing pressure from business groups, including the US Chamber of Congress, to discuss Republican proposals. A default, which would be the first in US history, could disrupt global financial markets and damage trust in the US as a global business partner. Experts have warned that it could also lead to a recession and rising unemployment. It would also mean that the US would be unable to borrow money to pay the salaries of government employees and military personnel, social security checks, or other obligations such as defense contractor payments.
In addition, even weather forecasts could be impacted, as many rely on data from the federally-funded National Weather Service. In a letter to members of Congress, Yellen stated that “We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”
Yellen added that it is impossible to know for sure when exactly the US will run out of cash. Her announcement came on the same day as the Congressional Budget Office (CBO) reported that there is a “significantly greater risk that the Treasury will run out of funds in early June.” The CBO report said that “The projected exhaustion date remains uncertain, however, because the timing and amount of revenue collections and outlays over the coming weeks are difficult to predict.”
The Treasury plans to increase borrowing through the end of the quarter ending in June, totalling about $726 billion – about $449 billion more than projected earlier this year. Officials have said that this is partly due to lower-than-expected income tax receipts, higher government spending, and a beginning-of-quarter cash balance that was lower than anticipated.
In a joint statement, Democratic Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries said that the US “does not have the luxury of waiting until June 1 to come together, pass a clean bill to avoid a default and prevent catastrophic consequences for our economy and millions of American families.” The statement also accused Republicans of attempting to impose their “radical agenda” on America.
On the Republican side, House Speaker Kevin McCarthy accused President Biden of “refusing to do his job” and “threatening to bumble our nation into its first-ever default.” He further stated that “The clock is ticking… The Senate and the President need to get to work — and soon.”
In another letter sent to members of Congress in January, Yellen stated that the Treasury Department had begun “extraordinary measures” to avoid a government default. It is important to resolve this issue as soon as possible to avoid negative consequences for the US economy and its citizens.
Ajay Banga has been appointed as the next president of The World Bank, as the development lender faces increasing pressure to reshape its role in order to better address climate change. Mr. Banga is due to take over from David Malpass on June 2, for a five-year term, and has been tasked with leading the bank through a difficult period for the world economy, characterized by slowing global growth and high interest rates in many major economies. Mr. Banga will also be required to play a leading role in driving forward the lender’s evolution plans, which aim to allow it a $50bn lending boost over the next decade, helping it to address global challenges like climate change.
The appointment of Mr. Banga is significant not only because he will be leading The World Bank through a challenging period, but also because the appointment comes at a time when there have been growing calls from emerging and developing economies for the US to relinquish its grip on the presidency of the lender. As a US citizen himself, Mr. Banga’s appointment has been met with a mixture of anticipation and skepticism, with many voices in the developing world demanding that the appointment does not dilute the bank’s focus on the pressing economic development needs of developing economies.
One of Mr. Banga’s key priorities, according to a statement from the bank, will be to work with the private sector to help tackle financing for global problems. “There is not enough money without the private sector,” he said, adding that the World Bank should set up a system that could share risk or mobilize private funds to achieve its goals.
In recent years, there has been growing concern about the ability of low-income countries to cope with the double shock of higher borrowing costs and a decline in demand for their exports due to the tough economic conditions prevailing in many developed economies. The IMF’s chief Kristalina Georgieva warned last month that this situation could fuel poverty and hunger, and called for urgent action to address it. It is hoped that Mr. Banga’s experience in bringing together governments, the private sector and non-profits to deliver on ambitious goals will help The World Bank to meet this challenge.
Mr. Banga himself has acknowledged the difficult conditions facing the global economy, but has expressed his confidence that The World Bank will be able to rise to the challenge. “These are all tools in the toolkit and I’m going to try and figure it out,” he said.
One of the most pressing challenges facing The World Bank is the need to address climate change, conflict and the pandemic, which the bank estimates will require developing countries to find $2.4tn every year for the next seven years. Plans to reform the bank have been broadly welcomed, but there is concern that new objectives could relegate the pressing economic development needs of member countries. “We want to make sure that the development agenda is not diluted in the climate agenda,” said Abdoul Salam Bello, a member of The World Bank’s executive board representing 23 African countries.
Despite these concerns, many experts believe that Mr. Banga’s appointment marks a turning point for The World Bank, and that his leadership will be instrumental in helping the lender to take a more decisive approach to the global challenges facing it. The appointment of Mr. Banga is just one step along the way for The World Bank, but it is an important one, and if he can navigate the many challenges facing the lender, he could leave behind a lasting legacy.
The U.S. House of Representatives on Wednesday, April 26, 2023 passed the Limit, Save, Grow Act of 2023 as the debt ceiling debate continues in the nation’s capital. House speaker Kevin McCarthy introduced the legislation on April 19, which would “limit federal spending, save taxpayer dollars,” and “grow the economy.”
The legislation passed 217-215. Four Republicans voted against the bill, which did not get a single vote from a Democrat.
The vote allows the US to raise the nation’s debt limit for one year and limit federal spending growth to 1% annually. The plan, titled the “Limit, Save, Grow Act of 2023,” would increase the debt limit by $1.5 trillion, or until March 31, 2024, whichever comes first.
McCarthy also plans to repeal key parts of Democrats’ signature legislative package and President Biden’s college student debt cancellation program. The GOP bill would also remove $80 billion that Democrats approved last year to improve the Internal Revenue Service (IRS). However, the Congressional Budget Office estimated that repealing the measure would increase the deficit.
McCarthy said on the House floor that limiting government spending would reduce inflation and restore fiscal discipline in Washington. He added that if Washington wants to spend more, it will have to find savings elsewhere, as every household in America does. McCarthy noted that Medicare and Social Security would not be impacted by the cuts. The framework also includes work requirements for adults without dependents enrolled in federal assistance programs.
According to a press release, the legislation would specifically:
“End the Era of Reckless Washington Spending
“Reclaim Unspent COVID Funds
“Defund Biden’s IRS Army
“Repeal ‘Green New Deal’ Tax Credits
“Prohibit [President Joe] Biden’s Student Loan Giveaway to the Wealthy
“Strengthen the Workforce and Reduce Childhood Poverty
“Prevent Executive Overreach and Restore Article I
“Lower Energy Costs and Utilities”
The plan also includes “a responsible debt limit increase.”
However, Democrats remain critical of any efforts to link debt ceiling negotiations to legislation that would require work requirements for those on assistance programs. David Scott, the House Agriculture Committee ranking member, said that holding food assistance hostage for those who depend on it in exchange for increasing the debt limit is a nonstarter.
The US hit its current debt limit of $31 trillion in January. The Treasury Department is employing what it refers to as extraordinary measures to essentially act as a band-aid for several months. Those measures are set to run out in early summer. Should Congress fail to raise the debt limit by then, there would be an unprecedented debt default, something that would throw worldwide financial markets into dire straits and likely lead to a recession.
In a speech, McCarthy blasted the president for not meeting with him to negotiate. The pair last met in February and remain at odds over how to address the debt limit. Biden has repeatedly said he wants to sign a clean debt limit bill. Senate Majority Leader Chuck Schumer has also said that efforts to address spending cuts “belong in the discussion about budget, not as a precondition for avoiding default.”
The proposal is likely to face opposition in the Democratic-controlled Senate. Passing the bill would require bipartisan support, which may be difficult given the current political climate. Nonetheless, McCarthy remains optimistic that the proposal will succeed.
“Limited government spending will reduce inflation and restore fiscal discipline in Washington,” McCarthy said. “If Washington wants to spend more, it will have to come together and find savings elsewhere — just like every single household in America.”
“Our plan ensures adults without dependents earn a paycheck and learn new skills,” he said. “By restoring these commonsense measures, we can help more Americans earn a paycheck, learn new skills, reduce childhood poverty and rebuild the workforce.”
“By including these radical proposals as a lever in debt limit negotiations, Speaker McCarthy and his extreme Republican colleagues are ensuring their failure,” David Scott, D-Ga., House Agriculture Committee ranking member, said of McCarthy’s proposal for work requirements.
“President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation’s history,” McCarthy said.
Russia’s richest individuals have seen their collective wealth increase by $152 billion over the past year, according to Forbes Russia. The billionaires on Forbes’ list increased to 110, up 22 from last year, and their total wealth has grown to $505 billion. However, the list would have been longer if it were not for five billionaires renouncing their Russian citizenship.
The Forbes’ report highlights that “last year’s rating results were also heavily influenced by predictions about the Russian economy, which led to apocalyptic projections”. Forbes said the total wealth of Russia’s billionaires had reached $606 billion in 2021, before the Ukrainian war.
Despite the war, which led to the West imposing severe sanctions on Russia’s economy, the country was able to sell oil, metals, and natural resources to global markets, particularly to China, India, and the Middle East. Last year, the price of Urals oil, the lifeblood of the Russian economy, averaged $76.09 per barrel, up from $69 in 2021, and fertilizer prices were high.
The International Monetary Fund (IMF) raised its growth forecast for Russia in 2023 to 0.7% from 0.3% earlier this month, but lowered its forecast for 2024 to 1.3% from 2.1%, citing labor shortages and the exodus of Western companies that could harm the country’s economy.
According to Forbes’ Russia list, Andrei Melnichenko, who has made a fortune in fertilizers, was the country’s richest man, with an estimated worth of $25.2 billion, more than double his estimated worth from last year. Vladimir Potanin, the president and biggest shareholder of Nornickel, the world’s largest producer of palladium and refined nickel, was ranked as the second wealthiest person in Russia with a fortune of $23.7 billion. Vladimir Lisin, who controls steelmaker NLMK and was ranked as Russia’s richest person last year, was placed third on the Forbes Russia list with a fortune of $22.1 billion.
Over the past year, several billionaires renounced their Russian citizenship, including DST Global founder Yuri Milner, Revolut founder Nikolay Storonsky, Freedom Finance founder Timur Turlov and JetBrains co-founders Sergei Dmitriev and Valentin Kipyatkov. The Forbes’ report suggests that Russian domestic demand has remained strong despite years of sanctions, as new billionaires have emerged from snacks, supermarkets, chemicals, building, and pharmaceuticals.
The billionaires on the Forbes’ list made their fortunes during the Soviet Union’s collapse, and a small group of tycoons known as the oligarchs convinced the Kremlin to hand over control of some of the world’s largest oil and metals companies. The privatization deals often catapulted the tycoons into the league of the world’s wealthiest individuals. Under Putin, original oligarchs, such as Mikhail Khodorkovsky and Boris Berezovsky, were stripped of their assets, which eventually ended up under the control of state companies typically run by former spies.
Western sanctions are viewed as clumsy and even racist by many of Russia’s billionaires. Although sanctions have disrupted some industries, the country has diversified its exports and attracted investments from non-Western economies. Also, domestic demand has remained strong, with middle-class Russians weathering the economic downturn.
Russia’s billionaires have become more prominent in the nation’s politics, with some billionaires financing opposition parties, while others support Putin’s United Russia party. The Kremlin has vigorously resisted Western efforts to curb the influence of Russian billionaires, even as several have become subject to international investigations, raising suspicions of corruption and fraud.
The nation’s economic progress in recent years has prompted some observers to question whether Putin’s aggressive foreign policy and authoritarian rule are sustainable. The Kremlin has used the nation’s newfound wealth to promote its agenda abroad, including military interventions in Syria and the Middle East. However, Russia’s economic growth is now showing signs of stagnation. The nation’s GDP growth rate has been below 2% since 2013, and economists predict it will stay that way until structural reforms are undertaken.
In conclusion, Russia’s billionaires have seen a sharp increase in their collective wealth over the past year, driven by high commodities prices and their ability to diversify into non-Western economies. Despite years of sanctions and geopolitical tensions, their domestic businesses have remained buoyant. However, geopolitical risks and structural challenges could threaten the nation’s continued economic growth.
Warren Buffett, the billionaire investor, expressed that he is not worried about the success of his company, Berkshire Hathaway, despite current economic headwinds such as banking failures and rising interest rates. Speaking on CNBC’s “Squawk Box,” the 92-year-old said, “I never go to bed worried about Berkshire and how we’ll handle a thing.” He added that, at his age, he has other things to worry about, such as “the nuclear threat” and “a pandemic in the future.”
Berkshire Hathaway, under Buffett’s leadership since 1965, has become one of the world’s largest companies with a market capitalization above $707 billion. Its portfolio of investments includes Geico, Dairy Queen, Duracell, and Fruit of the Loom. Buffett’s history of optimism is well-documented, with data scientists identifying a surplus of positivity in his annual letters to shareholders.
Buffett’s investment strategy is to choose investments he believes in, regardless of their current price, and take advantage of stock drops to buy more of companies he trusts. During a volatile market period in 2016, he advised investors not to watch the market closely when stocks are down. He is known to be supremely self-confident, with “99 and a fraction percent” of his net worth invested in Berkshire, along with several family members.
When confronted with scary issues that are outside of his control, such as nuclear war or future pandemics, Buffett attempts to reduce his stress by focusing on situations and tasks that he can actually solve himself. “I worry about things nobody else worries about, but I can’t solve them all,” he said. “But anything that can be solved, I should be thinking about that.”
Regarding Berkshire’s future, Buffett has already selected the company’s next CEO, Greg Abel, who has stated that he does not plan to diverge from Buffett’s successful formula. Buffett trusts the leaders of Berkshire’s portfolio companies to make the right business decisions and expects Abel to do the same. “I am not giving [Abel] some envelope that tells him what to do next,” but Berkshire Hathaway is “so damn lucky” to have Abel taking the reins, Buffett said.
In conclusion, Warren Buffett’s optimism and confidence have helped him build and sustain one of the world’s largest companies. Despite economic headwinds, he remains unworried about the future of Berkshire Hathaway and instead focuses on things he can control. With a trusted successor in place, Buffett is confident that the company’s success will continue long after he steps down.
The Indian Consulate in New York held a Round Table on India’s economy on April 20, 2023, which was led by India’s Vice Chairman of Niti Aayog Suman Bery, who is on a visit to the United States.
The Round Table was entitled, Indian Growth Story: Speed, Scale, and Opportunities, and it was attended by high-profile guests from the business sector such as Deepak Raj, managing director of private investment firm Raj Associates and Padma Shri recipient Dr. Sudhir Parikh, chairman of Parikh Worldwide Media.
Caption: Vice Chairman of India’s NITI Aayog Suman Bery, speaking at the Round Table on India’s economy held April 20, 2022, at the Indian Consulate in New York. PHOTO: Indian Consulate.
“It was a pleasure participating in the roundtable discussion on the Indian Growth Story: Speed, Scale and Opportunities at the Consulate General of India, New York (@IndiainNewYork) last evening,” Bery, an economist who took over at NITI last year in May, tweeted after the meeting.
The event was attended by approximately 50 corporate leaders from various sectors such as IT, technology, finance, healthcare, high-level executives, and policymakers.
Picture : The Hindu
Dr. Sudhir Parikh, chairman of Parikh Worldwide Media, asking a question at the April 20, 2023, Round Table on India’s economy with Vice Chairman of NITI Aayog Suman Bery, held at the Indian Consulate in New York. Also seen are other high profile participants, as well as India’s Deputy Consul General Dr. Varun Jeph, right. PHOTO: Indian Consulate
Among the subjects discussed were the markers of India’s economic growth making it one of the world’s fastest-growing economies; elements of India’s energy transition, New Delhi’s Free Trade Agreements which give a strong push to Indian trade, India’s G20 leadership, women’s empowerment, etc.
Businessman from New Jersey Deepak Raj, addressing India’s NITI Aayog Vice Chairman Suman Bery (not in picture) at the April 20, 2023, Round Table on India’s economy, held at the Indian Consulate in New York. PHOTO: Indian Consulat
The International Monetary Fund estimates India’s growth projections at 5.9 percent in 2023, and 6.3 percent in 2024, compared to the much lower World Output at 2.8 percent in and 3.0 percent, Bery noted accompanied by a visual table.
India has signed 13 Free Trade Agreements and 6 preferential pants so far with its trading partners for ensuring greater market access for domestic goods and promoting exports, Bery pointed out, with appropriated visual representations. The most recent FTAs signed are with Mauritius, UAE, and Australia.
More than 50 high- profile attendees were present at the April 20, 2023, Round Table on the Indian economy, held at the Indian Consulate in New York, with Vice Chair of India’s NITI Aayog Suman Bery. PHOTO: Indian Consulate
India is also actively engaged in FTA negotiations with countries like United Kingdom, European Union, and Canada.
India’s energy transition includes elements of – increasing electrification; higher penetration of cleaner fuels in energy mix; accelerated adoption of energy-efficient technologies; rising digitalization, among other efficiencies, Bery noted.
On the same day, April 20, Bery was the chief guest at a Student Roundtable and Lunch in Columbia University’s Center on Global Energy Policy at the School of International and Public Affairs.
Before being appointed Vice Chair at NITI Aayog, Bery served in various capacities – Senior Visiting Fellow at the Centre for Policy Research, New Delhi; a Global Fellow in the Asia Program of the Woodrow Wilson International Centre for Scholars in Washington D.C.; and a non-resident fellow at Bruegel, an economic policy research institution in Brussels.
In 2012 until mid-2016, Bery was Shell’s Global Chief Economist, where he advised the board and management on global economic and political developments. He was also part of the senior leadership of Shell’s global scenarios group.
Prior to that, Bery served as Director-General of the National Council of Applied Economic Research, one of India’s leading socioeconomic research institutions.
Bery also served at various times as a member of the Prime Minister’s Economic Advisory Council, of India’s Statistical Commission, and of the Reserve Bank of India’s Technical Advisory Committee on Monetary Policy.
He also worked at the World Bank, engaged in research on financial sector development and country policy and strategy, focusing on Latin America and the Caribbean.
Tax Day has recently passed and according to a recent Pew Research poll, Americans’ frustration with the tax code has reached its highest point in recent years. The majority of Americans, 56%, say they pay “more than their fair share” of taxes, with the number having increased from 51% from 2019.
It is also no surprise that almost two-thirds of Americans believe that the wealthy do not pay enough taxes, with 61% supporting the idea of raising taxes on households earning over $400,000. However, the definition of what constitutes a “fair share” of taxes is subjective and many Americans may not understand how much of the tax burden the rich bear.
In 2020, the top 1% of taxpayers paid $722 billion in income taxes, which accounted for 42.3% of all income taxes paid – the highest percentage in modern history. In contrast, the bottom 90% of taxpayers paid $450 billion in income taxes, or just 26.3% of the total, representing their lowest percentage of the tax burden in decades. This means that the top 1% of taxpayers pay a far greater share of the nation’s tax burden than 142 million of their neighbors combined.
Picture : Federal Budget
The wealthy do not pay a larger amount solely because they earn the most money. In 2020, the top 1% of taxpayers earned 22% of all adjusted gross income, while their 42.3% share of income taxes is nearly twice their income share. The opposite is true for the bottom 90%, who earned more than half of the nation’s income but paid only 26.3% of the taxes, representing roughly half of their share of the nation’s income. This was not the case in 1980, where the tax burden was more evenly shared. The bottom 90% earned 68% of the nation’s income and paid 52% of the income taxes, while the top 1% earned 9.6% of the nation’s income and paid 17% of the income taxes.
One of the reasons for the progressive tax system in the United States is the massive expansion of social programs delivered through the tax code over the past three decades. Many of the most significant programs aimed at lower-income families and those with children, such as the Child Tax Credit and the Earned Income Tax Credit, are run through the IRS, which deliver roughly $180 billion in benefits each year, much of which is refundable. Since the mid-1990s, tax credits have multiplied, with credits for adoption, child care, senior care, college tuition, buying electric cars or solar panels, and buying health insurance, among other things. However, these responsibilities are beyond the capacity of a tax collection agency, making it difficult for the IRS to function.
Record numbers of taxpayers now pay no income taxes after claiming their credits and deductions, with 34% of tax filers paying no income taxes due to generous credits and deductions in the tax code. In 2019, 54 million tax filers, equal to 34%, paid no income taxes because of the tax code’s generous credits and deductions. In 1980, only 21% of tax filers paid no income taxes due to credits and deductions.
Despite politicians’ rhetoric about ensuring the fair share of taxes, the burden on top earners continues to climb. If the wealthy were indeed able to use loopholes to avoid paying taxes, many of them would need better accountants.
Apple has always believed that education is the great equalizer for people and the tech giant will continue to expand education and skilling initiatives in India to connect more underprivileged kids to the mainstream, Apple CEO Tim Cook told IANS on Wednesday.
Returning to India after seven years to launch Apple’s first own-branded retail store here, Cook paid a visit to Sitaram Mill Compound municipal school in Lower Parel area in Mumbai where Apple has integrated iPads and Apple TVs into the classrooms.
The English medium BMC school is run by teachers and staff members who are part of The Akanksha Foundation, a non-profit organisation. The school currently has 470 students and 55 alumni, and each class has up to 40 students.
Picture : BlzzBuzz
“Since the founding of the company, we’ve been very focused on education. It’s very deep in our DNA. The programs like this really make my heart sing because we can see our products live in a learning environment,” Cook told IANS.
The Akanksha Foundation now runs 26 junior kindergarten through Grade 10 schools in economically-deprived areas in Mumbai, Pune and Nagpur.
Student selection is done by lottery to ensure equity, and in addition to the core academic subjects, Akanksha places a strong emphasis on Socio-emotional and Ethical Learning.
Apple has sponsored their work since 2015. In addition to financial support, the company also helped them integrate iPad and Apple TV into their classrooms and several of their teachers have achieved Apple Professional Learning Specialist designation.
“You can clearly see how the learning cycles are accelerating these kids and the engagement that they bring is simply great. This education program is something that really makes me happy and we would expand such programs in India to help more kids leverage our technologies,” Cook noted enthusiastically, as local Mumbai trains continue to pass by.
Mandira Purohit is the school leader and has been with The Akanksha Foundation for 17 years.
According to her, iPads are helping kids develop creative and reading skills in a natural way and Cook’s first-ever visit to the school instilled a lot of confidence in not only kids but the entire teaching staff.
“iPads have changed the way teaching and learning is imparted here. We are sharing a lot of software skills when kids are working in groups or collaborating on various subjects. Moreover, Cook’s reactions to the kids as he visited their classrooms was very inspiring for all of us,” she told IANS.
Cook also met Nirjala, an alumnus of the school who comes from a large family with six children that was heavily impacted financially by the pandemic.
Nirjala surprised her teachers by reaching the top 10 per cent of her class within two years. When she graduated two years ago, she was selected to be an alumni ambassador for her class, wherein she connects and coordinates engagement events for her classmates.
She represented Akanksha at a New York fundraiser hosted by Bollywood actor Boman Irani. “It became so easy for us to learn with iPad and Apple TV in the classroom apart from books. Apps like Book Creator and iMovie and a host of other animation apps on iPad opened a new world for us,” Nirjala told Cook.
According to Chitra Pandit, Head of Communications and Development, they have been fortunate to have this Apple partnership going on since 2015. “It has just grown from strength to strength. Next year. We’re going to have all our 26 schools with iPads and we can’t wait to see all our children learn in a better and effective way so that they can perform at higher levels like children from anywhere,” Pandit told IANS.
For Cook, visiting the Sitaram Mill Compound municipal school was a heartening experience and the company will expand such initiatives to more schools and children in the country.
Eric Adams, the mayor of New York City addressed CEOs of leading Indian companies from diverse sectors such as banking, finance, pharmaceuticals, retail, diamond and IT at a CEO roundtable organized by the Consulate General of India in New York in partnership with the NYC Mayors Office for International Affairs on April 18th, 2023 at the New York Indian Consulate in New York.
CEOs participating in the roundtable included Suresh Muthuswamy, Chairman, North America, Tata Consultancy Services, Michael McCabe, Tata Sons Country Head – North America, Bhavani Parameshwara, Executive Director and President, Indievat Inc. (an ITC-owned company). Amneal Pharmaceuticals Co-CEO New York Branch Chintu Patel, Strides Pharma Chief Business Officer Shivprasad Naikoti, State Bank of India (SBI) New York Branch CEO Prashant Tripathi, Canara Bank CEO Jaya Rajappan, Empire State Titans Founder and Owner Hiren Kumar, Kushal Choksey, co-founder of Tattva Truffles, Gaurav Varma of USISFP, Anjan Lahiri of Naikenz, Chief Regional Manager Amit Malik from Bharat Electronics, Akshay Chaturvedi Country Head-USA for ICICI Bank Ltd, Tejas Shah CEO of Kiran Jewels, Sandeep Shah of Sandeep Diamond and Co-Founder of Recognize Franscisco D’Souza.
Picture : TheUNN
Mayor Eric Adams said, “It is very important that we understand the role of the Indian community in the city’s prosperity in three areas. One, I want to encourage them to participate in the political scene, which should be part of their business plan.” Also, the Mayor suggested “making a bridge between school, high school kids and youth. With the company who has required skills our kids will need for the future. And lastly, it’s important that we give them the tools to help our kids intern and volunteer. We want to continue to expand and let them know that we are a partner in growing their business together,” Adams said.
Randhir Jaiswal, Consul General of India in New York, said the mayor’s discussion and roundtable with CEOs of major Indian companies provide an opportunity to see “how we can strengthen our business engagement with New York City and India.” On India-US relationship, he said, it helps, especially in economic ties in the startup, tech, finance, and energy sectors. Jaiswal highlighted that India is the world’s fastest growing major economy and the country is expanding digital public infrastructure at the fastest pace globally and the roundtable amplified this message.
Picture : TheUNN
Dilip Chauhan, Deputy Commissioner for New York City Mayor Office for International Affairs, highlighted the priority and importance the Mayor’s Office places on attracting international businesses and companies to base as well as expand in the city. Chauhan said the office is focused on increasing economic engagement with the international business community and outlined the incentives being offered to companies looking to expand their footprint in the city’s five boroughs – Brooklyn, Bronx, Queens, Manhattan, and Staten Island. Chauhan stressed that the mayor’s message is “GET STUFF DONE” New York City is a City of YES. Chauhan manages the portfolio of trade, investment and innovation for the Middle East, Asia, Africa, Australia, and New Zealand.
Officials accompanying the mayor included Mira Joshi, Deputy Mayor for Operations, Andrew Kimball, President and CEO of the New York City Economic Development Corporation, and Edward Mermelstein, New York City Commissioner for International Affairs.
Deputy Commissioner for Policy and Strategic Initiatives and Chief of Staff in the NYC Mayor’s Office for International Affairs Aisata Camara, Deputy Chief Counsel in the Office of the Mayor and Chief Counsel for City Hall Rahul Agarwal, Deputy Commissioner for Public Private Partnerships and Economic Development NYC Mayor In the Office of International Affairs Kristen Edgren Kaufman and senior official Rana Abbasova.
World Bank shareholders are gathered in Washington this week for their annual spring meetings, while the global financial institution is poised for new leadership that could change how it approaches climate and other global crises. Business executive Ajay Banga is expected to be confirmed as the bank’s president in the coming weeks.
Richard T. Clark is a political scientist who studies policymaking at the World Bank and the International Monetary Fund. Clark says Banga could push the World Bank to tackle climate change more aggressively in three ways, but that each approach carries risk.
Clark says:
“The World Bank is at an inflection point – Ajay Banga is slated to take over for current President David Malpass, who has been labeled a climate-skeptic by some observers. Banga, who was nominated by the United States, faces pressure to reorient the World Bank’s lending portfolio to tackle climate change more aggressively. He could do this in several ways, but each has its pitfalls.
“First, he could ask member states, who fund the organization, for additional resources, but Janet Yellen – the U.S. Treasury Secretary – said the U.S. would not back such a move. Given that the U.S. is the Bank’s largest shareholder, this makes a capital increase unlikely.
“A second option is for Banga to ease capital requirements by expanding the Bank’s lending portfolio without additional funds from member states, but this could put the Bank’s AAA credit rating at risk, especially given that many of the Bank’s debtors are experiencing debt crises of their own, limiting their ability to repay future debt.
“Third, Banga could reallocate funds traditionally offered to developing countries for poverty reduction and physical infrastructure towards climate and clean energy initiatives – for instance, lending to middle-income countries to help them transition away from coal. Unsurprisingly, the world’s poorest nations oppose such a move since it limits their ability to draw on the Fund’s resources to promote growth. More generally, developing nations have long been frustrated with the fact that the World Bank is governed primarily by rich Western countries who may put their own needs ahead of those of the developing world.”
As Apple firms up its plans to put India on its global manufacturing and retail map, the company’s CEO Tim Cook will be in India next week to inaugurate Apple’s brick-and-mortar stores in Mumbai and Delhi.
Reliable sources told IANS that Cook will inaugurate Apple’s own branded retail stores — at Jio World Drive Mall in Mumbai and at Select CityWalk mall in Saket, Delhi — that will be the first for the tech giant which has doubled down on its India growth plans.
Apple set another all-time revenue record for the India market in the quarter that ended December 31, 2022.
In the analysts’ call after posting its quarterly results, Cook said, “India is a hugely exciting market for us and a major focus.
“We brought the online store there in 2020. We will soon bring Apple Retail there,” Cook had announced.
“I’m very bullish on India,” he added.
According to the India Cellular and Electronics Association (ICEA), Apple’s ‘Make in India’ smartphone now constitutes 50 per cent of total exports.
Reports surfaced earlier this year that Cook-led Apple will quickly shift some of its China manufacturing to India and Vietnam in the next 2-3 years.
India is likely to produce 45-50 per cent of Apple’s iPhones by 2027, at par with China, where 80-85 per cent of iPhones were produced in 2022, according to estimates.
India accounted for 10-15 per cent of iPhones’ overall production capacity at the end of 2022.
Apple became the first smartphone player in India to have exported $1 billion worth iPhones in the month of December.
It currently manufactures iPhones 12, 13, 14 and 14 Plus in the country.
As Apple gears up to throw open the gates of its first branded retail store in India this month, its physical stores have left an indelible impression on millions worldwide.
For millions of Indians, visiting an Apple Store in the country will be a delightful experience. Those who have a constant yearning to be ‘delighted’ at Apple Stores at world-famous tourist spots, India will soon be on the Apple’s retail global map. (IANS)
The factors that drive the tea market growth include health benefits associated with consuming tea and rise in fitness concerns among people in different regions. The additional facts that support the growth of the market include increase in café culture, rise in disposable income, change in tastes of people, and innovation of tea via introducing additional healthy ingredients. However, increase in cost of raw materials due to unpredictable weather, high cost of production, and increase in trend of coffee consumption are expected to hamper the growth of market during the forecast period. Rise in tea demand from health-conscious young population and frequent introduction of new flavors & variety are expected to provide numerous opportunities for expansion of the Tea market.
The global tea market was valued at $55,144 million in 2019, and is projected to reach $68,950 million by 2027, registering a CAGR of 6.6% from 2020 to 2027.
The trend for specialty or organic tea such as green tea and herbal/fruit tea is witnessing an upsurge, whereas ordinary black tea market is stabilizing. Customers are more aware towards the health effects of their food, thus shifting towards organic products.
The green tea segment was the highest contributor to the market, with $16,362 million in 2019, and is estimated to reach $26,110 million by 2027, at a CAGR of 9.8% during the forecast period. China is one of the prominent regions in the market that accounted for a sizeable share of the total market in 2019.
Tea is one of the most popular beverages, usually made via brewing or boiling of dried Camellia Sinensis plant leaves. The two prominent types of tea include black tea, widely consumed in western nations, and green tea, common in Asian countries. Tea care & husbandry management comprises proper site selection and several carefully maintained steps, which include permanent source of water, proper shelter, free draining soil with pH ranging from 5 to 5.8, and stringent regulations towards the amount of pesticides applied on plantations. Presently, the commercial consumption of tea is increasing, thus bridging the gap between out-of-home tea and coffee consumption. China and India are the major tea producing countries consisting of key players in the global market.
The report segments the global tea market on the basis of type, packaging, distribution channel application and region. Based on the type, the market is divided into green tea, black tea, oolong tea, fruit/herbal tea, and others. On the basis of packaging, it is fragmented into plastic containers, loose tea (packets & pouches), paperboards, aluminum tins, and tea bags. By distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. Applications covered in the study include residential and commercial. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the tea industry include Associated British Foods Plc., Barry’s Tea Limited, Hain Celestial Group, Inc, ITO EN, Ltd., Mcleod Russel India Limited, Nestle S.A., TaeTea, Tata Global Beverages, The Republic of Tea, Inc., And Unilever Group.
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Allied Market Research published a report, titled, “Cyber Weapons Market by Type (Defensive, Offensive), by Application (National Defense System, Public Utility, Automated Transportation system, Smart Power Grid, Industrial Control System, Financial System, Communication Network, Others), by End User (Government, BFSI, Corporate, Other): Global Opportunity Analysis and Industry Forecast, 2021-2031.” According to the report, the global cyber weapons market was valued at $9.2 billion in 2021 and is estimated to generate $23.7 billion by 2031, witnessing a CAGR of 10.1% from 2022 to 2031.
The use of cyber weapons has grown significantly as the U.S. attempts to develop new tools and capacities for national security and defence. The National Security Agency (NSA) and Cyber Command are at the center of the American government’s significant investments in the creation of cyberweapons. The development of cyber weapons has been fueled by both the rise in reliance on digital infrastructure and the threat of cyberattacks from other countries, criminal groups, and other entities. The U.S. government accessed crucial data from other countries using cyber weapons.
According to Interesting Engineering, in September 2022, the U.S. National Security Agency’s (NSA) cyber-warfare unit used 41 different types of weapons to steal critical technology data from a Chinese space and aviation university. This data included the configuration of critical network equipment, network management information, and critical operational information. Specific information regarding their creation and use is not made available to the general public because the use of cyber weapons by the U.S. is highly classified. Also, it is evident that cyber weapons have grown in importance as a tool in the U.S. national security strategy, which has fueled the growth of the cyber weapons business in the country.
On the basis of application the global cyber weapons market, is segmented into national defense systems, public utility, automated transportation systems, smart power grid, industrial control systems, financial systems, communication networks, and others. The development of international trade and the improvement of living standards have been facilitated by transportation infrastructure. Communities all over the world are connecting more than ever because of huge advancements in the flow of people and things. Yet, the presence of various control systems and auxiliary systems is increasing the interconnection and complexity of transportation networks.
The use of communications and IT has increased the effectiveness and functionality of transportation networks, but it has also raised the possibility of vulnerabilities. Attacks using cyber weapons on transportation networks can take a variety of shapes and have a range of possibilities and outcomes. A popular attack method that overburdens the system and causes a denial-of-service (DoS) for the entire system is traffic redirection to the server. A different type of cyber weapon effect is the theft of personal information, which can result in the displacement of expensive and/or dangerous commodities like explosives, radioactive agents, chemical, and biological chemicals, which is problematic for the transportation industry. Terrorists might utilise these materials, if they were stolen, to make bombs and other deadly weapons. Automated transportation systems that integrate cyber weapons are used to prevent or respond to such incidents, which supports the market’s growth.
The Global Luxury Jewelry Market is anticipated to grow at a 7.85% CAGR and is estimated to be worth USD 95.78 Billion by the end of 2030.
Luxury Jewelry is well-known for its sophisticated designs and utilization of the most precious and uncommon unrefined substances. The Luxury Jewelry Market is vigorous and quickly developing. It’s also exceptionally divided and determined by buyer conduct and style. In the nearing years, huge market development is normal, from increasing extra cash and amplifying buyer consumption of extravagant merchandise. Assimilating the luxury gems industry with diversion and allure businesses has set new open doors for the market.
One of the main points herding the Luxury Jewelry Market is boosting discretionary cash flow. When the population’s discretionary cash flow develops, so does their purchasing power, bringing about amplified interest and utilization of luxury gems. Also, the traditions embracing extravagant metals are necessary components driving the interest in extravagant adornment pieces.
Amplifying interest in men’s adornments addresses viable freedom for the development of the market over the figure time frame. Generally, ladies are more minded than men toward buying luxury gems. Be that as it may, this pattern is remodelling, inferable from expanding the focal point of men on self-grooming and graceful allure.
The Global Luxury Jewelry Market is segmented into five regions; North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.
Europe represented the biggest portion of the global industry on the lookout, followed by North America. These areas comprise created nations with high per capita pay, just as significant luxury brands, filling the market development. Also, the high female workforce interest rate in these countries is a significant factor that adds to the development of the market. Besides, the Asia- Pacific area is expected to have a high CAGR during the estimated time frame.
Asia Pacific dominated the market for luxury jewelry and was considered for the largest revenue share of 65.4% in 2021. China and India are the two largest markets for luxury jewelry in the region. The latest styles and the requirement for high-quality jewelry among top customers are two eloquent drivers driving the market for luxury jewelry in this region.
The region is anticipated to see an increase in the popularity of online distribution. The majority of luxury jewelry is bought for special occasions or events like marriages and engagements. Further, due to continuous restrictions on international travel and the augmentation of domestic duty-free zones in China, demand from younger customers as well as those who shop domestically is anticipated to climb.
The global Luxury Jewelry Market’s prominent key players are Buccellati Holding, Italia SPA, Chopard International SA, Mikimoto & Co. Ltd., Bulgari S.P.A., Graff Diamond Corporation, Companies Financiere Richmond S.A., Tiffany & Co., Societe Cartier, Harry Winston Inc., Guccio Gucci S.P.A., Chanel, LVMH Moet Hennessy, Signet Jewellers, Cartier International SNC, Rajesh Exports Ltd.
US pharmaceutical giant Johnson & Johnson has proposed to pay almost $9 billion to resolve tens of thousands of lawsuits the company faces in North America over claims that its baby powder and other talc-based products cause cancer, the media reported.
The healthcare giant said it still believed the claims were “specious” but was hoping the new settlement offer would help conclude its legal battle, the BBC reported.
The figure marks a big boost over the $2 billion it had proposed previously. The new offer has significant support from people tied to the case, it said.
The company is facing more than 40,000 lawsuits from former customers who say using its talc-based baby powder caused cancer, including some who allege the product contained cancer-causing asbestos.
It stopped US sales of its talc-based baby powder in 2020, citing “misinformation” that had sapped demand for the product, applied to prevent nappy rash and for other cosmetic uses, including dry shampoo.
Last year, it announced plans to end sales globally. Before that decision, the company had sold the baby powder for almost 130 years. It continues to sell a version of the product that contains cornstarch.
The company has been trying to resolve the lawsuits in bankruptcy court since 2021, after creating a subsidiary responsible for the claims.
But its efforts ran into trouble after an earlier bankruptcy court ruling found the subsidiary was not in financial distress and could not use the bankruptcy system to resolve the lawsuits.
“The company continues to believe that these claims are specious and lack scientific merit,” said Erik Haas, worldwide vice president of litigation for Johnson & Johnson.
“Resolving this matter through the proposed reorganisation plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity.”
Johnson & Johnson said it had won a majority of the talc lawsuits against it. But it has been stuck with some significant losses, including one decision in which 22 women were awarded a judgement of more than $2 billion.
The company said it had commitments from about 60,000 current claimants to support the new settlement terms. (IANS)
Five Indian Americans are in Barron’s fourth annual list of the 100 Most Influential Women in US Finance for achieving positions of prominence in the financial-services industry and are helping to shape its future.
The list includes Anu Aiyengar of JP Morgan, Rupal J. Bhansali of Ariel Investments, Meena Lakdawala-Flynn of Goldman Sachs Group, Sonal Desai from Franklin Templeton and Savita Subramanian of BofA Securities.
Aiyengar is the global head of Mergers and Acquisitions at JP Morgan — a role she assumed in January after serving as co-head of the division since 2020. She offers clients equal measures of expertise and steadiness when navigating challenging markets.
According to Barron’s, she “has long credited her love of number crunching, legal contracts, and building client relationships for bringing her to the mergers-and-acquisitions sphere”.
Bhansali, 55, chief investment officer and portfolio manager of Ariel Investments’ global equity strategies, sees the current state of the market as a time when investors should reposition their portfolios, because what worked in the past is “unlikely to work in the next decade”.
She believes that managing money is what she was born to do, and is passionate about encouraging women to work in finance.
Desai, 58, became the first woman chief investment officer in Franklin Templeton’s history in 2018. She oversees $137 billion in assets. She joined the firm in 2009 after working for the International Monetary Fund, Dresdner Kleinwort Wasserstein, and Thames River Capital.
Lakdawala-Flynn, Co-Head, Global Private Wealth Management, Goldman Sachs Group, wears several hats, including co-chairing the global inclusion and diversity committee. She did an internship at Friedman, Billings, Ramsey Group, working on the institutional equity sales desk.
According to Barron’s, her career in finance began soon after a sports injury. A zealous gymnast who at one point wanted to compete in the Olympics, Lakdawala-Flynn had to stay at George Washington University one summer to rehabilitate her knee.
Subramanian is head of US equity and quantitative strategy at Bank of America Securities. She is responsible for recommending US sector allocations for equities and determining forecasts for the S&P 500 and other major US indices, as well as developing and marketing the firm’s quantitative equity strategy to institutional and individual clients.
Barron’s is a leading source of financial news, providing in-depth analysis and commentary on stocks, investments and how markets are moving across the world.
The global economy is heading for the weakest period of growth since 1990 as higher interest rates set by the world’s top central banks drive up borrowing costs for households and businesses, the head of the International Monetary Fund has warned, a media outlet reported.
Kristalina Georgieva, the IMF’s managing director, said that a sharp slowdown in the world economy last year after the aftershocks of the Covid pandemic and the Russian invasion of Ukraine would continue in 2023, and risked persisting for the next five years, The Guardian reported.
In a curtain raiser speech before the fund’s spring meetings in Washington DC next week, she said that the global growth would remain about 3 per cent over the next five years – its lowest medium-term growth forecast since 1990.
“This makes it even harder to reduce poverty, heal the economic scars of the Covid crisis and provide new and better opportunities for all,” Georgieva said.
In a downbeat assessment as the world grapples with the worst inflation shock in decades, she said economic activity was slowing across advanced economies in particular. While there was some momentum from developing nations – including China and India – low-income countries were also suffering from higher borrowing costs and falling demand for their exports, the media outlet reported.
Ahead of the IMF publishing revised economic forecasts next week, Georgieva said global growth in 2022 had collapsed by almost half since the initial rebound from the Covid pandemic in 2021, sliding from 6.1 per cent to 3.4 per cent. With high inflation, rising borrowing costs and mounting geopolitical tensions, she said global growth was on track to drop below 3 per cent in 2023 and remain weak for years to come.
As many as 90 per cent of advanced economies would experience a decline in their growth rate this year, she warned, with activity in the US and the eurozone hit by higher interest rates, it added.
Comparing the challenge to “climbing one ‘great hill’ after another”, Georgieva said there were still more problems to overcome: “First was Covid, then Russia’s invasion of Ukraine, inflation and a cost of living crisis that hit everyone.”
“So far, we have proven to be resilient climbers. But the path ahead – and especially the path back to robust growth – is rough and foggy, and the ropes that hold us together may be weaker now than they were just a few years ago,” she was quoted as saying by the media outlet. (IANS)
The period of slower economic activity will be prolonged, with the next five years witnessing less than 3 per cent growth.
The IMF chief on Thursday said that the world economy is expected to grow at less than 3 per cent this year, with India and China expected to account for half of global growth in 2023.
International Monetary Fund (IMF) managing director Kristalina Georgieva warned that a sharp slowdown in the world economy last year following the raging pandemic and Russia’s military invasion of Ukraine would continue this year.
The period of slower economic activity will be prolonged, with the next five years witnessing less than 3 per cent growth, “our lowest medium-term growth forecast since 1990, and well below the average of 3.8 per cent from the past two decades,” she said.
“Some momentum comes from emerging economies — Asia especially is a bright spot. India and China are expected to account for half of global growth in 2023. But others face a steeper climb,” she explained.
“After a strong recovery in 2021 came the severe shock of Russia’s war in Ukraine and its wide-ranging consequences — global growth in 2022 dropped by almost half, from 6.1 to 3.4 per cent,” Georgieva said.
Georgieva said slower growth would be a “severe blow,” making it even harder for low-income nations to catch up.
“Poverty and hunger could further increase, a dangerous trend that was started by the COVID crisis,” she explained.
Her comments come ahead of next week’s spring meetings of the IMF and the World Bank, where policy-makers will convene to discuss the global economy’s most pressing issues.
The annual gathering will take place as central banks around the world continue to raise interest rates to tame galloping inflation rates.
About 90 per cent of advanced economies are projected to see a decline in their growth rates this year, she said.
For low-income countries, higher borrowing costs come at a time of weakening demand for their exports, she said.
Georgieva added that while the global banking system had “come a long way” since the 2008 financial crisis, “concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks. “Now is not the time for complacency.”
US President Joe Biden announced that the United States had placed the nomination of Ajay Banga to be the next head of the World Bank, established in 1944. There will be no other official candidates for this job since—by convention—the US nominee is automatically selected for the post. This has been the case for the 13 previous presidents of the World Bank—the one exception was the acting president Kristalina Georgieva of Bulgaria, who held the post for two months in 2019. Georgieva is currently the managing director of the IMF.
In the official history of the International Monetary Fund (IMF), J. Keith Horsefield wrote that US authorities “considered that the Bank would have to be headed by a US citizen in order to win the confidence of the banking community, and that it would be impracticable to appoint US citizens to head both the Bank and the Fund.” By an undemocratic convention, therefore, the World Bank head was to be a US citizen and the head of the IMF was to be a European national . Therefore, Biden’s nomination of Banga guarantees his ascension to the post.
A month later, the New Development Bank’s Board of Governors—which includes representatives from Brazil, China, India, Russia, and South Africa (the BRICS countries) as well as one person to represent Bangladesh, Egypt, and the United Arab Emirates—elected Brazil’s former president Dilma Rousseff to head the NDB, popularly known as the BRICS Bank.
The BRICS Bank, which was first discussed in 2012, began to operate in 2016 when it issued its first green financial bonds. There have only been three managing directors of the BRICS Bank—the first from India (K.V. Kamath) and then the next two from Brazil (Marcos Prado Troyjo and now Rousseff to finish Troyjo’s term). The president of the BRICS Bank will be elected from its members, not from just one country.
Banga comes to the World Bank, whose office is in Washington, D.C., from the world of international corporations. He spent his entire career in these multinational corporations, from his early days in India at Nestlé to his later international career at Citigroup and Mastercard. Most recently, Banga was the head of the International Chamber of Commerce, an “executive” of multinational corporations that was founded in 1919 and is based in Paris, France.
As Banga says, during his time at Citigroup, he ran its microfinance division, and, during his time at Mastercard, he made various pledges regarding the environment. Nonetheless, he has no experience in the world of development finance and investment. He told the Financial Times that he would turn to the private sector for funds and ideas. His resume is not unlike that of most US appointees to head the World Bank.
The first president of the World Bank was Eugene Meyer, who built the chemical multinational Allied Chemical and Dye Corporation (later Honeywell) and who owned the Washington Post. He too had no direct experience working on eradicating poverty or building public infrastructure. It was through the World Bank that the United States pushed an agenda to privatize public institutions. Men such as Banga have been integral to the fulfillment of that agenda.
Dilma Rousseff, meanwhile, comes to the BRICS Bank with a different resume. Her political career began in the democratic fight against the 21-year military dictatorship (1964-1985) that was inflicted on Brazil by the United States and its allies. During Lula da Silva’s two terms as president (2003-2011), Dilma Rousseff was a cabinet minister and his chief of staff.
She took charge of the Programa de Aceleração do Crescimento (Growth Acceleration Program) or PAC, which organized the anti-poverty work of the government. Because of her work in poverty eradication, Dilma became known popularly as the “mãe do PAC” (mother of PAC). A World Bank study from 2015 showed that Brazil had “succeeded in significantly reducing poverty in the last decade”; extreme poverty fell from 10 percent in 2001 to 4 percent in 2013. “[A]pproximately 25 million Brazilians escaped extreme or moderate poverty,” the report said.
This poverty reduction was not a result of privatization, but of two government schemes developed and established by Lula and Dilma: Bolsa Família (the family allowance scheme) and Brasil sem Misería (the Brazil Without Extreme Poverty plan, which helped families with employment and built infrastructure such as schools, running water, and sewer systems in low-income areas). Dilma Rousseff brings her experience in these programs, the benefits of which were reversed under her successors (Michel Temer and Jair Bolsonaro).
Banga, who comes from the international capital markets, will manage the World Bank’s net investment portfolio of $82.1 billion as of June 2022. There will be considerable attention to the work of the World Bank, whose power is leveraged by Washington’s authority and by its work with the International Monetary Fund’s debt-austerity lending practices.
In response to the debt-austerity practices of the IMF and the World Bank, the BRICS Health/Sciencecountries—when Dilma was president of Brazil (2011-2016)—set up institutions such as the Contingent Reserve Arrangement (as an alternative to the IMF with a $100 billion corpus) and the New Development Bank (as an alternative to the World Bank, with another $100 billion as its initial authorized capital).
These new institutions seek to provide development finance through a new development policy that does not enforce austerity on the poorer nations but is driven by the principle of poverty eradication. The BRICS Bank is a young institution compared to the World Bank, but it has considerable financial resources and will need to be innovative in providing assistance that does not lead to endemic debt. Whether the new BRICS Think Tank Network for Finance will be able to break with the IMF’s orthodoxy is yet to be seen.
The U.S. dollar has dominated global trade and capital flows over many decades. However, many nations are looking for alternatives to the greenback to reduce their dependence on the United States.
This graphic catalogs the rise of the U.S. dollar as the dominant international reserve currency, and the recent efforts by various nations to de-dollarize and reduce their dependence on the U.S. financial system.
The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar.
The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar. China, Russia, Brazil, India, ASEAN nations, Kenya, Saudi Arabia, and the UAE are now using local currencies in trade.
The Dollar Dominance
The United States became, almost overnight, the leading financial power after World War I. The country entered the war only in 1917 and emerged far stronger than its European counterparts.
As a result, the dollar began to displace the pound sterling as the international reserve currency and the U.S. also became a significant recipient of wartime gold inflows.
The dollar then gained a greater role in 1944, when 44 countries signed the Bretton Woods Agreement, creating a collective international currency exchange regime pegged to the U.S. dollar which was, in turn, pegged to the price of gold.
Picture : Elements of visual capitalist
By the late 1960s, European and Japanese exports became more competitive with U.S. exports. There was a large supply of dollars around the world, making it difficult to back dollars with gold. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. This ended both the gold standard and the limit on the amount of currency that could be printed.
Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then.
Russia and China’s Steps Towards De-Dollarization
Concerned about America’s dominance over the global financial system and the country’s ability to ‘weaponize’ it, other nations have been testing alternatives to reduce the dollar’s hegemony.
As the United States and other Western nations imposed economic sanctions against Russia in response to its invasion of Ukraine, Moscow and the Chinese government have been teaming up to reduce reliance on the dollar and to establish cooperation between their financial systems.
Since the invasion in 2022, the ruble-yuan trade has increased eighty-fold. Russia and Iran are also working together to launch a cryptocurrency backed by gold, according to Russian news agency Vedmosti. In addition, central banks (especially Russia’s and China’s) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar.
How Other Countries are Reducing Dollar Dependence
De-dollarization it’s a theme in other parts of the world as well. In recent months, Brazil and Argentina have discussed the creation of a common currency for the two largest economies in South America.
In a conference in Singapore in January, multiple former Southeast Asian officials spoke about de-dollarization efforts underway. The UAE and India are in talks to use Rupees to trade non-oil commodities in a shift away from the dollar, according to Reuters.
For the first time in 48 years, Saudi Arabia said that the oil-rich nation is open to trading in currencies besides the U.S. dollar. Despite these movements, few expect to see the end of the dollar’s global sovereign status anytime soon. Currently, central banks still hold about 60% of their foreign exchange reserves in dollars.
India, which has the third-most billionaires, with 169, had a more mixed year. Indian billionaires as a group – worth $675 billion – are $75 billion poorer than in 2022, as per the Forbes World’s Billionaires List 2023.
As per the list, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd (RIL) is the richest India with a net worth of $63.4 billion. Ambani is the 9th richest in the world as per the list.
The Us still boasts the most billionaires, with 735 list members worth a collective $4.5 trillion. China (including Hong Kong and Macau) remains second, with 562 billionaires worth $2 trillion, followed by India, with 169 billionaires worth $675 billion.
Nearly half of all billionaires are poorer than they were a year ago, as per the Forbes World’s Billionaires List 2023.
Falling stocks, wounded unicorns, and rising interest rates translated into a down year for the world’s wealthiest people.
Globally, the list counted 2,640 ten-figure fortunes, down from 2,668 last year. Altogether, the planet’s billionaires are now worth $12.2 trillion, a drop of $500 billion from $12.7 trillion in March 2022.
Nearly half the list is poorer than a year ago, including Elon Musk, who falls from No. 1 to No. 2 after his pricey acquisition of Twitter helped sink Tesla shares.
Bernard Arnault, head of luxury goods giant LVMH, takes his place as the world’s richest person, marking the first time a citizen of France leads the ranking.
Despite a down year in the markets, rising inflation and war in Eastern Europe, more than 1,000 billionaires are actually richer than they were on Forbes’ 2022 list – some by tens of billions of dollars.
Luxury goods tycoon Arnault has had the best run. His net worth surged by $53 billion since last year, a bigger gain than anyone on the planet. Shares of his LVMH, which owns brands like Louis Vuitton, Christian Dior and Tiffany & Co, rose by 18 per cent on the back of strong demand. Now worth $211 billion, Arnault has taken the top spot on the World’s Billionaires ranking. It’s his first time at No 1 – and the first time a citizen of France has led the list.
Michael Bloomberg is ranked 7th on the list with a net worth of $ 84.5 billion. (IANS)
The average price for a new vehicle hit $49,500 at the end of last year, compared to $38,948 just three years earlier. Skyrocketing interest rates pushed the average monthly car payment on a five-year loan to $723 in March.
New vehicles priced under $25,000, a range that the average American might deem affordable, now account for less than 5 percent of all sales.
Customers who walk onto a dealer’s lot expecting such enticements as zero-APR financing and thousand-dollar rebates are in for a surprise: For the first time in recent memory, the automobile industry is a seller’s market.
“It is no longer a $25,000, $30,000 transaction. It is a $50,000, $60,000 transaction,” said Patrick Rosenberg, director of automotive finance intelligence at J.D. Power, the car-consumer company. “It is a greater financial commitment than it has ever been.”
The car-and-truck marketplace went haywire during the COVID-19 pandemic, along with much of the American economy. A global shortage in semiconductors, the chips that control everything from airbags to windshield wipers, seeded massive production delays. Toss in pandemic shutdowns and other supply-chain kinks, and the conveyor belt of new cars slowed to a crawl.
At that point, simple economics kicked in. Demand overwhelmed supply. The customer-friendly, let’s-make-a-deal milieu of the typical new-car dealership vanished as quickly as that new-car smell. It hasn’t returned.
Generations of automotive customers have come to expect deep discounts, four-figure rebates and zero-interest financing. In a new-car negotiation, the sticker price was a mere starting point. No longer.
“Most people don’t expect to pay sticker price. People are paying sticker price,” said Jessica Caldwell, executive director of insights at Edmunds, the automotive information-services company. “Vehicles are coming off the truck, and they’re being sold immediately.”
The semiconductor crisis has eased, the supply chain has loosened, and vehicle production has resumed. But most of the cars and trucks rolling off the assembly lines are luxury items.
Between December 2017 and December 2022, the share of all new auto sales priced above $60,000 more than tripled, from 8 percent to 25 percent, according to research by Cox Automotive.
In the same five years, the share of sales under $25,000, a standard cutoff for economy vehicles, shrank from 13 percent to 4 percent.
“The manufacturers have been steering the market toward more expensive products,” said Charlie Chesbrough, senior economist at Cox. “All those bells and whistles, nav-screens, cruise control, all those fantastic and lifesaving technologies cost money.”
More than 90 vehicle models now fetch $60,000 or more, Cox reports. Meanwhile, in five years, the number of models priced under $25,000 has dwindled from 36 to 10.
U.S. automakers have walked away from economy-priced sedans because of thin profit margins and because consumers don’t seem to want them.
“Ford Focus, Ford Fusion, Chevy Malibu, Chevy Cavalier: There’s a long history of the Detroit three making passenger cars,” Chesbrough said. “But they decided, seven, eight years ago, that the margins just weren’t there for them.”
As a result, actual cars now make up only about one-fifth of the Detroit auto market, an industry dominated by high-priced pickups and SUVs. (The Hill)
Elon Musk has officially been dethroned from the top of Forbes’ annual “World’s Billionaire’s List.” The Tesla and Twitter chief is now the second-richest billionaire, worth an estimated $180 billion, which is $39 billion less than the previous year. The top spot has been awarded to Bernard Arnault, the chairman of French luxury goods giant LVMH. His net worth increased more than $50 billion in the past year to $211 billion.
However, Tuesday’s list tracks his wealth annually. Forbes explained that Musk’s wealth had fallen because his $44 billion Twitter purchase, funded by Tesla shares, scared investors and sent Tesla stock sinking sharply last year. Tesla gained much of those losses back this year but is still significantly lower than before Musk bought Twitter.
Picture : Bussiness Insider
Forbes said that “Musk has mostly tweeted himself out of the top spot on the ranks” because Tesla shares are down 50% since his Twitter takeover a year ago. SpaceX is a bright spot for the billionaire, the magazine notes, since its valuation has increased $13 billion to $140 billion over the past year.
Amazon founder Jeff Bezos lost the most amount of money of any billionaire on the list ($57 billion), knocking him down from second position to third. The loss can be attributed to Amazon shares losing nearly 40% of their value last year.
As for Arnault, Forbes said the Frenchman had a “banner year” in 2022 because of record-high profits at the luxury conglomerate, which comprises Louis Vuitton, Christian Dior and Tiffany & Co. Shares of LVMH have climbed 25% over the past year and the patriarch has recently unveiled succession plans to his children.
Forbes said that the total number of billionaires on this year’s list fell to 2,640 (down from 2,668), marking the second-straight year of decline.
“It’s been another rare down year for the planet’s richest people,” said Chase Peterson-Withorn, Forbes senior editor of wealth, in a release. “Nearly half the list is poorer than they were 12 months ago, but a lucky few are billions — or even tens of billions — of dollars richer.”
As artificial intelligence products like ChatGPT aim to become a part of our everyday lives and we learn more about how powerful they can be, there’s one thing on everyone’s mind: how AI could impact jobs.
“Significant disruption” could be on the horizon for the labor market, a new Goldman Sachs report dated Sunday said. The bank’s analysis of jobs in the U.S. and Europe shows that two-thirds of jobs could be automated at least to some degree.
In the U.S., “of those occupations which are exposed, most have a significant — but partial — share of their workload (25-50%) that can be replaced,” Goldman Sachs analysts said in the resarch paper.
Around the world, as many as 300 million jobs could be affected, the report says. Changes to labor markets are therefore likely – although historically, technological progress doesn’t just make jobs redundant, it also creates new ones.
The use of AI technology could also boost labor productivity growth and boost global GDP by as much as 7% over time, Goldman Sachs’ report noted.
The jobs most and least affected by A.I. automation
Certain jobs will be more impacted than others, the report explains. Jobs that require a lot of physical work are, for example, less likely to be significantly affected.
In the U.S., office and administrative support jobs have the highest proportion of tasks that could be automated with 46%, followed by 44% for legal work and 37% for tasks within architecture and engineering.
The life, physical and social sciences sector follows closely with 36%, and business and financial operations round out the top five with 35%.
On the other end of the scale, just 1% of tasks in the building and ground cleanings and maintenance sector are vulnerable to automation. Installation, maintenance, and repair work is the second least affected industry with 4% of work potentially being affected, and construction and extraction comes third from the bottom with 6%.
Data for Europe is slightly broader, but paints a similar picture with clerical support roles being most affected as 45% of their work could be automated, and just 4% of work in the crafts and related trades sector being vulnerable.
Overall, 24% of work in Europe could be automated — just below the 25% average in the U.S.
The countries most affected
These figures shift when looking at automation through AI on a global scale. “Our estimates intuitively suggest that fewer jobs in EMs [emerging markets] are exposed to automation than in DMs [developed markets], but that 18% of work globally could be automated by AI on an employment-weighted basis,” the Goldman Sachs report said.
According to the bank’s analysis, Hong Kong, Israel, Japan, Sweden and the U.S. are likely to be the top five most affected countries. Meanwhile, employees in mainland China, Nigeria, Vietnam, Kenya and, in last place, India, are the least likely to see their work being taken over by AI technology.
But while the data shows that AI will undoubtedly impact the labor market, it’s not yet clear how disruptive it will really be, the report concludes.
“The impact of AI will ultimately depend on its capability and adoption timeline,” it says, adding that two key factors will be how powerful AI technology really becomes and how much it is used in practice.
US-based consumer tech conglomerate Honeywell has announced that Vimal Kapur, President and Chief Operating Officer, will succeed Darius Adamczyk as CEO on June 1.
Having graduated from the Thapar Institute of Engineering in Punjab’s Patiala as electronics engineer with a specialization in instrumentation, Kapur was also appointed to the company’s board of directors, effective March 13.
Adamczyk will continue to serve as Executive Chairman of Honeywell, said the company, adding that these moves ensure a seamless leadership transition and position Honeywell for continued outperformance versus peers.
“Kapur brings 34 years of deep knowledge about our businesses, end markets and customer needs. His ability to drive our key sustainability and digitalisation strategic initiatives, along with his advancement of our world class operating system – Honeywell Accelerator – throughout the organization, gives him an outstanding platform to drive continued outperformance for our shareowners,” said Adamczyk.
Kapur, 57, was named President and COO in July 2022, and has been leading the creation of new solutions to help customers drive their sustainability transformations and accelerate their digital transformation journeys.
As COO, Kapur has also overseen the continued integration of Honeywell Accelerator across the organization and furthering its adoption as an operational system for everything that Honeywell does.
Prior to his role as COO, he served as President and CEO of Performance Materials and Technologies (PMT), an $11 billion global leader in the development of high-performance products and solutions.
Kapur said that it has been a privilege to work in a variety of businesses and functions over his three decades with Honeywell. “Honeywell is playing a major role in making the world a better place, and I am both proud and humbled to take on the CEO role of this great company,” he said.
Prior to leading PMT, Kapur served as President and CEO of HBT, a $6 billion global leader in building technology offerings. Adamczyk, 57, was named COO in 2016, CEO in 2017 and Chairman and CEO in 2018, and has led Honeywell to significantly and consistently outperform peer companies. Under his leadership, Honeywell’s market capitalisation grew from $88 billion to $145 billion. (IANS)
People get happy as they earn more, according to a new study which overturns the dominant thinking that money cannot buy happiness.
The study published in Proceedings of the National Academy of Sciences paper, shows that, on average, larger incomes are associated with ever-increasing levels of happiness.
Two prominent researchers, Daniel Kahneman from Princeton University and Matthew Killingsworth from the University of Pennsylvania, surveyed 33,391 adults aged between 18 and 65 who live in the US, are employed and report a household income of at least $10,000 a year.
For the least happy group, happiness rose with income until $100,000, then showed no further increase as income grew. For those in the middle range of emotional well-being, happiness increases linearly with income, and for the happiest group the association actually accelerates above $100,000.
“In the simplest terms, this suggests that for most people larger incomes are associated with greater happiness,” said lead author Killingsworth.
“The exception is people who are financially well-off but unhappy. For instance, if you’re rich and miserable, more money won’t help. For everyone else, more money was associated with higher happiness to somewhat varying degrees,” he added.
The researchers said that the study shows both a happy majority and an unhappy minority exist.
For the former, happiness keeps rising as more money comes in; the latter’s happiness improves as income rises but only up to a certain income threshold, after which it progresses no further.
These findings also have real-world implications, according to Killingsworth.
For one, they could inform thinking about tax rates or how to compensate employees. And, of course, they matter to individuals as they navigate career choices or weigh a larger income against other priorities in life, Killingsworth said.
However, he adds that for emotional well-being money isn’t all. “Money is just one of the many determinants of happiness,” he says. “Money is not the secret to happiness, but it can probably help a bit.” (IANS)
Saudi oil giant Aramco has announced a record profit of $161.1bn (£134bn) for 2022, helped by soaring energy prices and bigger volumes. It represents a 46.5% rise for the state-owned company, compared with last year.
It is the latest energy firm to report record profits, after energy prices spiked following Russia’s full-scale invasion of Ukraine in February 2022.
America’s ExxonMobil made $55.7bn, and Britain’s Shell reported $39.9bn. Aramco also declared a dividend of $19.5bn for the October to December quarter of 2022, to be paid in the first quarter of this year.
Most of that will go to the Saudi government, which owns nearly 95% of the shares in the company. Brent crude oil, the benchmark oil price, now trades at around $82 a barrel – though prices exceeded $120 a barrel last March, after Russia’s invasion, and June.
“Aramco rode the wave of high energy prices in 2022,” said Robert Mogielnicki of the Arab Gulf States Institute in Washington. “It would have been difficult for Aramco not to perform strongly in 2022.”
In a statement on Sunday, Aramco said the company results were “underpinned by stronger crude oil prices, higher volumes sold and improved margins for refined products”.
Aramco’s president and CEO Amin Nasser said: “Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real – including contributing to higher energy prices.”
To address those challenges, he said, the company would not only focus on expanding oil, gas and chemicals production – but also invest in new lower-carbon technologies.
Aramco – the world’s second-most valuable company only behind America’s Apple – is a major emitter of greenhouse gas emissions that contribute to climate change.
Responding to Aramco’s announcement, Amnesty International’s secretary general Agnès Callamard said: “It is shocking for a company to make a profit of more than $161bn in a single year through the sale of fossil fuel – the single largest driver of the climate crisis.”
She added: “It is all the more shocking because this surplus was amassed during a global cost-of-living crisis and aided by the increase in energy prices resulting from Russia’s war of aggression against Ukraine.”
Saudi Arabia is the largest producer in the oil cartel OPEC (Organization of the Petroleum Exporting Countries). The Gulf kingdom has been condemned for a range of human rights abuses: its involvement in the conflict in neighboring Yemen, the murder in 2018 of journalist Jamal Khashoggi, for jailing dissidents, and for the widespread use of capital punishment.
In a separate development on Sunday, Iran said its oil exports had reached their highest level since the re-imposition of US sanctions in 2018. Oil Minister Javad Owji said exports increased by 83 million barrels in 2022 compared with the previous 12 months. In Iran, a new year starts in March.
Analysts say the rise is due to greater shipments to Iranian allies China and Venezuela. Tehran’s export revenues took a significant hit after then-US President Donald Trump pulled out of a landmark nuclear deal five years ago.
The US sanctions, coupled with economic mismanagement and corruption, have meant that the Iranian economy has not had any substantive growth in the past decade. And by some measures, it is still 4-8% smaller than it was back in 2010.
President Biden went big in his $6.8 trillion annual budget proposal to Congress by calling for $5 trillion in tax increases over the next decade, more than what lawmakers expected after the president downplayed his tax agenda in earlier meetings. It’s a risky move for the president as he heads into a tough reelection campaign in 2024.
Senate Democrats will have to defend 23 seats next year, including in Republican-leaning states such as Ohio, Montana and West Virginia, and Americans are concerned about inflation and the direction of the economy.
Republicans say Biden’s budget plan marks the return of tax-and-spend liberal politics; they warn higher taxes on corporations and the wealthy will hurt the economy. Biden, however, thinks he can win the debate by pledging that he won’t raise taxes on anyone who earns less than $400,000 a year.
Sen. Mike Crapo (R-Idaho), the ranking member of the Senate Finance Committee, called Biden’s ambitious tax plan “jaw-dropping.”
“This is exactly the wrong approach to solving our fiscal problems,” he said of the $5 trillion aggregate total of proposed tax hikes. “I think this sets a new record, by far.”
Grover Norquist, the president of Americans for Tax Reform, a group that advocates for lower taxes, said “in dollar terms, it’s the largest tax increase in American history.”
A surprise and a ‘negotiating position’
Many lawmakers were expecting Biden to propose between $2 trillion and $2.5 trillion in tax increases, based on what he said in his State of the Union address on Feb. 7 and on what media outlets reported in the days before the White House unveiled its budget plan.
The $5 trillion in new tax revenues is more than what the president called for last year, when Democrats controlled the House and Senate.
In October of 2021, when Biden was trying to nail down a deal with Sen. Joe Manchin (D-W.Va.) on the Build Back Better agenda, he proposed a more modest $2 trillion in tax increases.
The headline number even surprised some Democratic policy experts, though they agree the federal government needs to collect more revenue.
“I didn’t expect to see a number that big, but I’m not alarmed by it. I think it’s a negotiating position,” said Jim Kessler, the executive vice president for policy at Third Way, a centrist Democratic think tank.
Biden told lawmakers at his State of the Union address that his budget plan would lower the deficit by $2 trillion and that he would “pay for the ideas I’ve talked about tonight by making the wealthy and big corporations begin to pay their fair share.”
The president then surprised lawmakers with a budget proposal to cut $3 trillion from deficit over the next decade and to do it almost entirely by raising tax revenues.
Biden has called for a 25 percent tax on the nation’s wealthiest 0.01 percent of families. He has proposed raising the corporate tax rate from 21 percent to 28 percent and the top marginal income tax rate from 37 percent to 39.6 percent. He wants to quadruple the 1 percent tax on stock buybacks. He has proposed taxing capital gains at 39.6 percent for people with income of more than $1 million.
Kessler noted that Biden’s budget doesn’t include significant spending cuts nor does it reform Social Security, despite Biden’s pledge during the 2020 election to reduce the program’s imbalance. Kessler defended the president’s strategy of focusing instead on taxing wealthy individuals and corporations.
“The amount of unrealized wealth that people have at the top dwarfs anything that we’ve ever seen in the past,” he said. “These are opening bids” ahead of the negotiations between Biden and Speaker Kevin McCarthy (R-Calif.) to raise the debt limit.
Senate Republicans are trying to chip away at Biden’s argument that his tax policy will only hit wealthy individuals and companies. “It’s probably not good for the economy. Last time I checked, most tax increases on the business side are passed on to consumers, and I think we need to control spending more than adding $5 trillion in new taxes,” said Sen. Lindsey Graham (R-S.C.).
Norquist, the conservative anti-tax activist, warned that if enacted, raising the corporate tax rate would reverberate throughout the economy. “The corporate income tax, 70 percent of that is paid by workers and lower wages,” he said.
He said raising the top marginal tax rate and capital gains tax rate would hit small businesses that file under subchapter S of the tax code. “When you raise the top individual rate, you’re raising taxes on millions of smaller businesses in the United States,” he said. “Their employees end up paying that because that’s money they don’t have in the business anymore.”
How does Biden compare to predecessors?
Norquist noted that Obama and Clinton both cut taxes during their administrations, citing Clinton’s role in cutting the capital gains rate and Obama’s role in making many of the Bush-era tax cuts permanent. “Both of them ran a more moderate campaign. This guy is going Bernie Sanders,” he said of Biden, comparing him to the liberal independent senator from Vermont.
Biden’s budget is a significant departure from the approach then-President Obama took 12 years ago, when he also faced a standoff with a GOP-controlled House over the debt.
In his first year working with a House GOP majority, Obama in his fiscal 2012 budget proposed cutting the deficit by $1.1 trillion, of which he said two-thirds should come from spending cuts and one-third from tax increases. Obama later ramped up his proposal in the fall of 2011 by floating a plan to cut the deficit by $3.6 trillion over a decade and raise taxes by $1.6 trillion during that span.
Concerning for some Democrats
Republican strategists say they’ll use Biden’s proposed tax increases as ammunition against Democratic incumbents up for reelection next year. National Republican Senatorial Committee Chairman Steve Daines (Mont.) said Biden’s budget provides “a contrast” ahead of the election.
Sen. Jon Tester (D-Mont.), who faces a tough re-election in a state that former President Trump with 57 percent of the vote, said he’s leery about trillions of dollars in new taxes.
Asked last week if he’s worried about how Montanans might react to Biden’s proposed tax increases, Tester replied: “For sure. I got to make sure that will work. I just got to see what he’s doing.”
Manchin, who is up for reelection in another red state, has called on his fellow Democrats to focus more on how the federal budget has swelled from $3.8 trillion in 2013 to $6.7 trillion today.
“Can we just see if we can go back to normal? Where were we before COVID? What was our trajectory before that?” he asked in a CNN interview Thursday. “How did it grow so quickly? How do we have so many things that are so necessary that weren’t before?” he said of the federal budget and debt.
The White House branded the House Freedom Caucus’ deficit plan as “tax breaks for the super wealthy and wasteful spending for special interests,” as the two sides continued to trade jabs amid an escalating debt ceiling battle.
“MAGA House Republicans are proposing, if spread evenly across affected discretionary programs, at least a 20 [percent] across the board cut,” White House Communications Director Ben LaBolt said in an initial analysis of the proposal.
LaBolt pointed to several typically Republican issue areas that would be impacted by such cuts, including law enforcement, border security, education and manufacturing.
“The one thing MAGA Republicans do want to protect are tax cuts for the super-wealthy,” he added. “This means that their plan, with all of the sacrifices they are asking of working-class Americans, will reduce the deficit by…$0.”
The Freedom Caucus on Friday unveiled its initial spending demands for a possible debt ceiling increase, as the potential for default looms this summer. The proposal would cap discretionary spending at fiscal 2022 levels for 10 years, resulting in a $131 billion cut from current levels. Defense spending would be maintained at current levels.
LaBolt claimed that the proposal would also defund police and make the border less secure, turning around two accusations that Republicans have frequently lobbed at the Biden administration.
Such spending cuts would, according to LaBolt’s analysis, eliminate funding for 400 state, local and tribal police officers and several thousand FBI agents and personnel and “deny the men and women of Customs and Border Protection the resources they need to secure our borders.”
He also criticized the Freedom Caucus’s calls to end President Biden’s student loan forgiveness plan and to rescind unspent COVID-19 and Inflation Reduction Act funds, claiming they would increase prescription drug and energy costs and ship manufacturing jobs overseas.
The analysis also accused the group of hard-line conservatives of making plans that would actually increase the federal deficit by $114 billion, and allow “the wealthy and big corporations to continue to cheat on their taxes.” Biden’s $6.8 trillion budget released on Thursday included tax hikes on the wealthy.
LaBolt’s 20 percent number represents a slight adjustment from Biden’s claim on Friday that the plan would require a 25 percent cut in discretionary spending across the board.
“If what they say they mean, they’re going to keep the tax cuts from the last president … no additional taxes on the wealthy — matter of fact reducing taxes — and in addition to that, on top of that, they’re going to say we have to cut 25 percent of every program across the broad,” Biden said during remarks on the economy. “I don’t know what there’s much to negotiate on.”
House Freedom Caucus Chairman Scott Perry (R-Pa.) hit back at the president on Friday, accusing him of misrepresenting their proposal. “For him to mention things like firefighters, police officers and health care — obviously, either he didn’t watch the press conference, he can’t read, or someone is, you know, got their hand up his back and they’re speaking for him, because those are just abject lies,” Perry told The Hill. “It’s the same old, you know, smear-and-fear campaign by the Biden administration.” (Courtesy: CNN)
Liquor industry leader Ann Mukherjee makes bold moves to fulfill her passionate belief in return on responsibility. “It’s not enough to be responsible. You have to get a return on it,” says Mukherjee, the 57-year-old chairwoman and CEO of Pernod Ricard North America, the largest operation at the world’s second biggest producer of wine and spirits. It makes Absolut vodka, Malibu rum, Jameson Irish whiskey, and Beefeater gin, among others. “I experienced personal traumas caused by others’ irresponsible drinking. That’s why my responsibility is to lend my voice and humanize issues,” she says.
Mukherjee was born in India, and raised in the U.S. An intoxicated adolescent boy sexually assaulted her at age four. A drunk driver killed her mother when she was a teenager. She held marketing management roles at several consumer product makers before surprising friends and family by joining the booze business.
Now she’s the first woman, person of color, and industry outsider to lead Pernod Ricard’s North American unit, which excludes Mexico. Shortly after her December 2019 arrival at the company, Mukherjee launched an Absolut Vodka campaign targeting sexual consent, and painted “sex responsibly” on her fingernails.
Next up, she will expand a Dallas pilot project that combats binge drinking and impaired driving. The “Safe Night” program, which Pernod cosponsors, hopes to soon add another major U.S. city. “We want to take this nationwide,” she says. A self-proclaimed “acceleration queen,” Mukherjee says she also aims to speed Pernod Ricard’s U.S. growth “to try to make us number one in the world.”
TIME recently spoke with Mukherjee about her employer’s other efforts to prevent drunk driving, the appetizing outlook for ready-to-drink cocktails, “war gaming” product launches, and why she yearns to own a restaurant.
This interview has been condensed and edited for clarity.
How does return on responsibility improve returns for your investors? Do you avoid taking a public stance on certain controversial issues because your position might hurt Pernod Ricard?
Consumers have a higher standard around brands they trust. They expect those brands to be walking the talk. Return on responsibility is what consumers expect of us. It actually drives return on investment. Making it part of your DNA not only future-proofs your business, it also creates the loyalty you need.
We only go after those issues that drive value, our company values, and our purpose of conviviality. Conviviality is about unlocking this magic of human connections. When somebody gets promoted, you’re celebrating over two flutes of champagne. We stay away if [an issue] isn’t about unlocking that magic.
Employees have asked me to speak against gun violence, a very important issue, but not our mission. So I am not going to [do so].
Why should executives speak out about issues related to their business? After all, most Americans want companies to stay out of social and political issues, some surveys find.
Every company needs to define their value creation model. You’re giving people something to buy into [because] you are a brand standing for timeless values. If sustainability issues are not about how you create value, don’t talk about them. Taking on topics du jour is another form of greenwashing. [Saying] you care about sustainability “because we’re supposed to’’ is not good enough. At Pernod Ricard, we talk about sustainability because nothing we make happens without agriculture. We won’t have a business if we don’t care about our farmers [or] don’t understand water conservation.
The Dallas pilot project epitomizes your return on responsibility commitment by training restaurants and bars to assist customers who drink too much. Given your horrific experiences involving alcohol abusers, why didn’t you initially launch a nationwide campaign against drunk driving?
The project’s approach had never been done before so we wanted to pilot it to make sure we got the right model [before] we start rounding it out to every city. Nationally, we do other things around responsible drinking. You attack it through helping the hospitality industry, education, and legislation. We worked very hard with Responsibility.org on a [relevant] piece of legislation in President Biden’s infrastructure package.
The package the president signed into law contains a provision that any car manufactured in the United States must soon be capable of preventing a drunk driver from operating the vehicle. I got pretty emotional the day that law got signed. I posted a picture of my mom to my family and told them how the provision will reduce drunk driving. It was a way to give her death some meaning.
The ready-to-drink cocktail market is flourishing. How much U.S. revenue might Pernod Ricard get from such cocktails five years from now?
I can’t give any forward-looking numbers, but it is a part of our growth equation. The U.S. market for ready-to-drink cocktails is expected to grow at a rapid pace. People looking for convenience [also] want brands and cocktails they know and trust. So Malibu making a ready-to-drink piña colada makes sense. Absolut making an espresso martini ready to drink makes sense.
It’s important enough for us that we are now investing capital behind it. We’ve installed [our first] ready-to-drink canning line in our Fort Smith, Ark., facility. That $22 million investment is expandable so as that business gets bigger, we have the ability to grow with it.
While chief marketing officer of Frito-Lay North America, you helped introduce biodegradable bags for its Sun Chips. But due to their loud crackling sounds, the bags got withdrawn. What key leadership lesson did that noisy flop teach you?
At that time, the company wanted to make bold statements. While [the bag] did not work, employees said, “Wow, we were willing to take a risk for what we believed in.” But [being] enamored by the technology clouded our better business judgment. Passion, if not done objectively, sometimes is not the smartest thing to do. I learned to have a war game plan ready to go if something goes wrong.
How do you use war gaming to lead Pernod Ricard North America effectively?
We war game to be ready. There could be possible problems involving innovation launches, new marketing campaigns or new technology. And even if it’s a success, what were the lessons learned?
A great example is Jameson Orange, the first real flavored whiskey launched under the Jameson franchise. It was probably the biggest [U.S.] innovation launch the industry saw last year. We war gamed everything. What did this teach us? You got to make sure your innovation is on the shelf before you do all that [promotional] display stuff. It was 100% against industry norms. We’re very excited about the results. We now launch innovation based on learnings around how consumers shop.
You often use nail polish to broadcast your views about hot topics. You painted Black Lives Matter or BLM on your fingernails after George Floyd’s murder in 2020. And you put a Ukrainian flag on your nails following Russia’s invasion last year. What message are you sending to your coworkers?
That it’s OK to be vulnerable. And it’s a way for me to use something illustratively to say, “I care. You matter.’’
You try to unleash gifts that colleagues don’t know they have, so they feel they can do the impossible. What impossible goal have you achieved?
Sitting in the chair I’m in today. I’ve been told, “You should be a homeless drug addict,’’ [because of] my story. I feel very privileged that people believe I can create positive change. Most people can achieve anything they want if they can get out of their own way. I try to get people out of their own way and give them inspiration and hope.
Not long ago, you said you were still trying to decide what you want to be when you grow up. Are you interested in becoming CEO of a publicly held company someday?
Why wouldn’t I be? That’s absolutely in the mix. I get [recruiter] calls. And what a training ground I’m in now! But I’m very happy where I am. I came [to Pernod Ricard] because I wanted to accomplish something from a business and responsibility perspective. Working for a company you believe in doesn’t come around every day.
I would [also] love to open my own restaurant and be the Stanley Tucci of India. Cooking is how I get rid of stress. I read cookbooks like novels. I love fusion cooking, bringing different cuisines together, and understanding culture through food. We [recently took] a three-week food extravaganza tour in Vietnam. I’ve got lots of dreams. Who knows what I’ll end up doing? (TIME.COM)
Indian startups that have millions of dollars stuck with the troubled Silicon Valley Bank are waiting for business hours in the US to resume Monday and could withdraw all their money from the bank en masse. The only thing that could stop that is if the US government manages to find a buyer for the beleaguered bank, reports said.
Courtesy a maneuver of the US government on March 12th, businesses with accounts at Silicon Valley Bank (SVB) will have full access to their deposits, unlike a previous measure where only an insured amount of $250,000 would have been immediately accessible. As of December 2022, SVB had $209 billion in total assets and about $175 billion in total deposits.
SVB collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history. The chaos instigated by high interest rates led to an old-fashioned bank run on Thursday, in which depositors yanked $42 billion from SVB.
When the FDIC took control of the bank Friday, it said it would pay customers their insured deposits on Monday, which only covers up to $250,000. But there’s a lot of money – and influence – at stake. SVB provided financing for almost half of US venture-backed technology and health care companies. At the end of 2022, the bank said it had $151.5 billion in uninsured deposits, $137.6 billion of which was held by US depositors.
Though a lot of money may have come out during the bank run and customers could receive some uninsured funds as the government liquidates SVB, they are still unsure if they can recover all their cash.
Fearing a larger fall out from the bank collapse, the United States government mobilized immediately in response to the collapse of Silicon Valley Bank (SVB) and Signature Bank, working over the weekend to insure depositors who had more than $200 billion of venture capital and high-tech start-up money stored in the two banks.
But unlike the 2008 financial crisis, during which Congress passed new legislation in order to salvage the country’s largest banks, the current rescue plan is smaller in scale, pertains to only two banks, and isn’t additional taxpayer money — for now.
In order to make sure depositors can still withdraw funds from their accounts — the vast majority of which exceeded the $250,000 limit for standard insurance from the Federal Deposit Insurance Corporation (FDIC) — regulators say they’re pulling from a special fund maintained by the FDIC called the deposit insurance fund (DIF).
“For the two banks that were put into receivership, the FDIC will use funds from the deposit insurance fund to ensure that all of its depositors are made whole,” a Treasury official told reporters on Sunday night. “In that case the deposit insurance funded is bearing the risk. This is not funds from the taxpayer.”
Where the money comes from
The money in the DIF comes from insurance premiums that banks are required to pay into it as well as interest earned on funds invested in U.S. bonds and other securities and obligations.
This is why some observers have been saying that the term “bailout” shouldn’t be used in reference to the current government intervention — because it’s bank money plus interest that’s being used to insure depositors, and it’s only being administered by the federal government.
But standing behind the DIF is the “the full faith and credit of the United States government,” according to the FDIC, meaning that if the DIF runs out of money or encounters a problem, the Treasury could call on taxpayers as a next resort.
This is not an impossibility. The DIF had a $125 billion balance as of the last quarter of 2022 and SVB reported $212 billion in assets in the same quarter. Treasury officials sounded confident on Sunday night the money in the DIF would be more than enough to cover SVB’s deposits.
The Fed steps in for backup
To settle fears of a potential shortfall, the Federal Reserve announced an additional line of credit known as a Bank Term Funding Program, offering loans of up to one year to banks, credit unions, and other types of depository institutions. For collateral, the Fed will take U.S. bonds and mortgage-backed securities, and the line of credit will be backed up by $25 billion from the Treasury’s $38 billion Exchange Stabilization Fund.
“Both of these steps are likely to increase confidence among depositors, though they stop short of an FDIC guarantee of uninsured accounts as was implemented in 2008,” analysts for Goldman Sachs wrote in a Sunday note to investors.
“The Dodd-Frank Act limits the FDIC’s authority to provide guarantees by requiring congressional passage of a joint resolution of approval, which is only marginally easier than passing a new legislation. Given the actions announced today, we do not expect near-term actions in Congress to provide guarantees,” they wrote.
Even as the US government scrambles to find a buyer for the bank, SVB’s UK arm was sold to HSBC for £1, the Bank of England and the British government announced Monday morning. Sheila Bair, former chairperson of the US Federal Deposit Insurance Corporation (FDIC) – which took over the bank after it was shut down –told the US press that finding a buyer for SVB was “the best outcome.”
India impact
While the British arm of SVB has managed to find a buyer in the UK, that is unlikely to calm Indian startups since they primarily have deposited their money with the US-based SVB, which is headquartered in New York.
The fallout of SVB’s collapse could be far-reaching. Startups may be unable to pay employees in the coming days and venture capital firms may be unable to raise funds. The tech industry is the biggest customer of SVB with a large number of Indian startups, especially in the SaaS (software as a service) sector that services US clients, having accounts at the bank.
Additional loans
Instead of a total government bailout that would have required taxpayer money, the United States’ Federal Reserve announced that it would make available additional loans to eligible depository institutions to help assure that banks have the ability to meet the needs of all their depositors.
A new entity called the Bank Term Funding Program (BTFP) will be created and it will offer loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions. Those taking advantage of the facility will be asked to pledge high-quality collateral such as Treasuries, agency debt and mortgage-backed securities.
While relatively unknown outside Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year, according to the FDIC. It’s the largest lender to fail since Washington Mutual collapsed in 2008.
The Andhra Pradesh Global Investment Summit (GIS) 2023 turned out to be a huge success, as 352 Memoranda of Understanding (MoUs), amounting to about US$ 159 billion were finalized, which will create approximately 6,03,223 jobs in the state. The summit was attended by domestic and international business leaders, who made massive investments especially in the green hydrogen energy sector.
Picture : TheUNN
Inaugurated by Union Transport Minister, Nitin Gadkari and Chief Minister YS Jagan Mohan Reddy, the event had the presence of India’s top business leaders including Reliance Industries chairman and MD, Mukesh Ambani, Jindal Steel & Power Ltd, chairman Naveen Jindal, Adani Ports and SEZ Ltd CEO, Karan Adani, Dalmia Group managing director, Puneet Dalmia and others.
In his address at the GIS 2023, the CM said, “It is a proud moment to announce that the state has received 340 investment proposals with an investment of about Rs 13 lakh crore (US $159 billion) providing employment to almost six lakh people across 20 sectors.”
At the inauguration, Mukesh Ambani commended the state’s industrial development and its advantages and expressed confidence that the state would play a significant role in India’s growth story. “Reliance will create 50,000 new job opportunities in Andhra Pradesh and will promote sale of products made in the state through retail business,” he announced.
Naveen Jindal revealed that the firm will be setting up a 3 million tonne per annum steel plant in the state that will create jobs for over 10,000 people directly or indirectly.
According to Reddy, the state’s Energy Department received significant investment proposals especially in green hydrogen. The IT and ITES department managed to get 56 proposals, whereas the Tourism department got 117 proposals.
The two-day Global Investors Summit 2023 organized at the Andhra University Engineering College, Visakhapatnam concluded on March 4 with cultural performances by various dance groups.
The consumers in the US lost nearly $8.8 billion to scams in 2022, an increase of more than 30 per cent over the previous year, a new report has shown. According to the US Federal Trade Commission (FTC), consumers reported losing more money to investment scams — more than $3.8 billion — than any other category in 2022.
That amount more than doubles the amount reported lost in 2021. Moreover, the report showed that imposter scams caused the second-highest loss amount — $2.6 billion, up from $2.4 billion in 2021.
Prizes, sweepstakes, lotteries, investment-related scams, and business and job opportunities rounded out the top five fraud categories. Nearly 2.4 million consumers reported fraudulent activity on their accounts last year, most commonly imposter scams, followed by online shopping scams, the report said.
Earlier this month, the FTC released a similar report, saying romance scammers received a hefty payout last year, involving 70,000 victims who lost a combined $1.3 billion.
The report showed that romance scammers often use dating apps to target people looking for love. Nearly 40 per cent of people who lost money to a romance scam last year, said the contact started on social media, while 19 per cent said it started on a website or app.
Many people mentioned that the scammer then quickly moved the conversation to WhatsApp, Google Chat or Telegram. (IANS)
(AP) — A majority of the nation’s business economists expect a U.S. recession to begin later this year than they had previously forecast, after a series of reports have pointed to a surprisingly resilient economy despite steadily higher interest rates.
Fifty-eight percent of 48 economists who responded to a survey by the National Association for Business Economics envision a recession sometime this year, the same proportion who said so in the NABE’s survey in December. But only a quarter think a recession will have begun by the end of March, only half the proportion who had thought so in December.
The findings, reflecting a survey of economists from businesses, trade associations and academia, were released Monday.
A third of the economists who responded to the survey now expect a recession to begin in the April-June quarter. One-fifth think it will start in the July-September quarter.
The delay in the economists’ expectations of when a downturn will begin follows a series of government reports that have pointed to a still-robust economy even after the Federal Reserve has raised interest rates eight times in a strenuous effort to slow growth and curb high inflation.
In January, employers added more than a half-million jobs, and the unemployment rate reached 3.4%, the lowest level since 1969.
And sales at retail stores and restaurants jumped 3% in January, the sharpest monthly gain in nearly two years. That suggested that consumers as a whole, who drive most of the economy’s growth, still feel financially healthy and willing to spend.
At the same time, several government releases also showed that inflation shot back up in January after weakening for several months, fanning fears that the Fed will raise its benchmark rate even higher than was previously expected. When the Fed lifts its key rate, it typically leads to more expensive mortgages, auto loans and credit card borrowing. Interest rates on business loans also rise.
Tighter credit can then weaken the economy and even cause a recession. Economic research released Friday found that the Fed has never managed to reduce inflation from the high levels it has recently reached without causing a recession.
India has slipped to the 43rd spot in the US Chamber of Commerce’s latest International Intellectual Property Rights index.
India is ranked 43rd out of 55 countries for 2022. It was ranked 40th in the index in 2021.
The index was launched by the US Chamber of Commerce’s Global Innovation Policy Centre and is closely monitored by the Indian government.
The index has said in its finding that a torrent of proposals – both domestic and international – are threatening to erode intellectual property (IP) rights.
The annual international IP index evaluates the protection of IP rights in 55 of the world’s leading economies, together representing approximately 90 per cent of global GDP.
The report covers everything from patent and copyright laws to the ability to monetise IP assets and the ratification of international agreements.
By analyzing the IP landscape in global markets, the index aims to help nations navigate toward a brighter economic future marked by greater innovation, creativity, and competitiveness.
“As India’s size and economic influence grows on the world stage, India is ripe to become a leader for emerging markets seeking to transform their economy through IP-driven innovation,” said Patrick Kilbride, senior vice president of the US Chamber of Commerce’s Global Innovation Policy Center, which publishes the annual report.
“India has taken steps to improve enforcement against copyright-infringing content and provides a best-in-class framework to promote better understanding and utilization of IP assets. However, address long-standing gaps in its IP framework will be critical to India’s ability to creating a new model for the region and India’s continued economic growth,” Kilbride said. (IANS)
(AP) Top financial leaders from the Group of 20 leading economies are gathering in Bengaluru this week to tackle myriad challenges to global growth and stability, including stubbornly high inflation and surging debt.
India is hosting the G-20 financial conclave for the first time in 20 years. Later in the year it will convene its first summit of G-20 economies. The meetings offer the world’s second most populous country a chance to showcase its ascent as an economic power and its status as a champion of developing nations.
The gathering of finance ministers and central bank governors takes place just a year after Russia invaded Ukraine, setting off a cascade of shocks to the world economy, chief among them decades-high inflation. U.S. Treasury Secretary Janet Yellen is expected to address the global economic impacts of the war while at the G-20 meetings.
India is among the countries treading lightly between the Western nations and Russia, eager to claim more global sway but wary of becoming embroiled in antagonisms as its economy benefits from purchases of discounted Russian crude oil.
“India has a growing leadership role globally,” Information Minister Anurag Thakur, said Wednesday, reiterating Indian Prime Minister Narendra Modi’s stance that “today’s era is not of war. Dialogues and discussions are the only way forward.”
As host of more than 200 G-20 meetings in 28 cities leading up to the summit in November, Modi is expected to use that role to burnish India’s stature as a leader in fighting climate change and to act as a bridge between the interests of industrialized nations and developing ones.
Still, women remain the minority in nine of the 10 highest-paying occupations. The exception is pharmacists, 61% of whom are women. More broadly, the share of women across all 10 of these occupations (35%) remains well below their share of the overall U.S. workforce (47%).
ome of these high-paying occupations – including physicians, lawyers, dentists and pharmacists – require specialized graduate degrees. One way that women have increased their presence in high-paying occupations is by increasingly earning degrees that are required for these jobs.
Women now also earn 63% of Doctor of Pharmacy (Pharm.D.) degrees – similar to their share of workers in the pharmacist occupation (61%). Pharmacists are also the only occupation in the top 10 where women make up the majority. This could be because the field offers flexible work hours, a collaborative environment and family-friendly policies, according to 
Mathematics or statistics: 42% of recipients today are women, unchanged from 1980
With the new codeshare routes, passengers can now also fly to Singapore and connect seamlessly to Qantas’ flights between Singapore and Melbourne, an official statement noted.
One significant move unveiled is a proposal by the Federal Trade Commission (FTC) that would prevent companies in various sectors from imposing concealed and deceptive fees. This rule would mandate sellers to disclose all essential costs upfront. The FTC could potentially impose financial penalties on companies that violate this rule. Proponents argue that this regulation will enable consumers to make more informed price comparisons and create a level playing field for businesses that are transparent about their costs.
Nevertheless, for the time being, economic activities continue to progress steadily. The MetLife and U.S. Chamber of Commerce Small Business Index, which gauges confidence among small business owners, reached its highest level this quarter since the beginning of the pandemic. This score is roughly in line with late 2019 levels, with 66 percent of small businesses reporting that business conditions are healthy, and 72 percent expressing comfort with their cash flow, despite increased labor costs.
The Green category includes not only the Red Fort but also the Taj Mahal in Agra, Qutub Minar in Mehrauli, and the Konark Temple in Odisha. In the Blue category, you will find Jantar Mantar and Purana Quila, both located in Delhi, while the Orange category encompasses monuments like Tipu Palace in Bengaluru and the Sanchi Stupa in Madhya Pradesh. Entities interested in becoming Mitras can choose to adopt from the Blue or Orange category, or a combination of the three categories. However, they are not permitted to solely adopt monuments or heritage sites from the Green category.
The 172-page complaint alleges that Amazon engages in unfair practices that prioritize its own platform and services at the expense of third-party sellers who rely on the company’s e-commerce marketplace for distribution. One example highlighted by the FTC is Amazon’s requirement for sellers on its platform to use Amazon’s in-house logistics services to qualify for benefits like “Prime” eligibility. Additionally, the complaint contends that Amazon unfairly compels sellers to list their products on Amazon at the lowest prices available anywhere online, rather than allowing them to offer their products at competitive prices on other platforms.
The House of Representatives and the Senate 
Luxury Jewelry is well-known for its sophisticated designs and utilization of the most precious and uncommon unrefined substances. The Luxury Jewelry Market is vigorous and quickly developing. It’s also exceptionally divided and determined by buyer conduct and style. In the nearing years, huge market development is normal, from increasing extra cash and amplifying buyer consumption of extravagant merchandise. Assimilating the luxury gems industry with diversion and allure businesses has set new open doors for the market.
