Dow falls over 500 points after US Fed’s third consecutive rate hike of 75 bps
The US Federal Reserve announced a 75 basis points (bps) rate hike in its FOMC meeting held on September 21. The rate hike decision by Fed may not have come as a surprise to the markets as the expectation of 75 bps was high. A 75 basis point hike in September is the third consecutive rate hike of this magnitude. The market expected a 75 basis points rate hike and only a surprise by Fed may have spooked the markets.
Dow 30 fell by 522 points while S&P 500 and Nasdaq Composite indices also posted losses of 1.71% and 1.79% respectively at the day’s close. “The US FED raised the interest rates by 75 bps for the third time in a row. This move was driven by the worry about inflation in the US Economy. Initially, the market reacted positively to this news of tightening monetary conditions. This is in fact because people were expecting a much more severe rate hike of 100 bps. The US market ended drastically down due to the FED governor’s persistent call to keep growth low,” says Sonam Srivastava, smallcase manager & Founder, Wright Research.
India’s GDP to grow at 7.5% in FY23 despite developed-economy recession; inflation to stay above 6% till Nov
India’s export outlook looks weak going forward amid global headwinds. Since exports were the key peg for strong real GDP growth in the first half of the current financial year, when domestic demand was in the early stages of its climb back to pre-covid levels, analysts at?ICICI Securities?have lowered their real GDP growth forecast for FY23 to 7.5%. As oil prices moderate, the fiscal and current account deficits are expected to moderate sharply in H2FY23. “Private investment should continue to accelerate in FY24, enabling real GDP growth of 8.3% despite the slowdown in export growth amid the US-led developed-economies’ recession in FY24,” analysts said.?
Dassault Systèmes VP?Patrick Fardeau says simulation is extremely important for a mission based design
The Aerospace and Defence (A&D) sector in India is at the cusp of an inflection point and the companies seek to combat volatility in fuel prices, strengthen their supply chains and most importantly win customer trust. And, the government is looking to accelerate growth in the defence sector and aiming at a turnover of Rs 1.7 trillion by 2025.
Patrick Fardeau, Vice President Global Market Development A&D Industry at Dassault Systèmes, shares his views about the challenges being faced by Aerospace & Defence (A&D) suppliers in India and more with Huma Siddiqui.
Novartis unveils new plan based on eight multi-billion dollar brands; To prioritise US market
Novartis?announced that its executives are meeting investors and industry analysts in Basel on Thursday to share insights into the updated company strategy at the annual Meet Novartis Management event. The company also said that a ‘US-first’ mindset, increasing share of US patients in clinical trials and building capability and talent, among other actions, will enable Novartis to achieve this objective.
Novartis is also aiming to be a top-three player in China, a key growth market for the next decade, while maintaining leading positions in Germany and Japan, it stated.
Accident insurance claim denied due to death under influence of alcohol. NCDRC reverses order – here’s why
In an interesting case, the National Consumer Disputes Redressal Commission (NCDRC) recently reversed a decision that denied accidental insurance cover to a complainant after the death of his son due to drowning. The claim was denied by the insurance company on the ground that the deceased was under the influence of alcohol at the time of death.
Go Green! How green is the new Ethereum?
Ethereum’s energy consumption dropped by an estimated 99.95%, making it a green blockchain, post The Merge. This took place on September 15, 2022, to change the way the Ethereum network comes to a consensus.
As per Digiconomist, a blockchain platform, estimated that in Proof-of-Work (PoW) setup, Ethereum miners consume 44.49 terawatt hours (TWh) per year which works out to 5.13 gigawatt on a continuing basis. This means that Proof-Of-Stake (PoS) is 2000x more energy efficient based on the conservative estimates above. “Scaling solutions (such as rollups and sharding) will help further decrease the energy consumed per transaction by leveraging economies of scale,” Saurav Raaj, founder, director at Wize tokenisation, told FE Blockchain.
Read More: https://www.financialexpress.com/blockchain/go-green-how-green-is-the-new-ethereum/2683695/
FE CFO Conclave 2022: Liquidity management is the top priority post pandemic
Liquidity?management has become top priority for financial institutions in the post pandemic period replacing maximisation of leverage for enhanced profitability, according to Dinanath Dubhashi, managing director and chief executive officer of L&T Finance Holdings, while solvency, asset quality, profitability and growth remain in focus.???
“Risk management is in its entirety has been fully understood in these last two years. Today in the risk management, actual stress testing has come to fore. Being from a non-banking finance company (NBFC), liquidity management comes first, second is solvency, asset quality, profitability and growth,” Dubhashi said, speaking at the?financialexpress.com?CFO Connect Conclave 2022.
Google’s new privacy tool to let users delete their personal identifiable information, contact details from showing in Search
Google is reportedly rolling out a new privacy tool, “Results About You”, to make it easier for users to get their personal identifiable information deleted from Search results. The feature was first announced at Google I/O 2022 earlier this year.
According to a new 9to5Google report, Google has started rolling out the said feature for some Android users in Europe and the US. It should be made available in more markets sooner rather than later.
RBI intervening in forex market to cushion Rupee fall; spends $82.8 bn from forex reserves in 9 months
The Fed raised the interest rates by another 75bps yesterday, as expected. This is the third back to back 75bps rate hike this year by the US central bank. With the latest hike, the Fed fund rate (FFR) now stands in the range of 3.0%-3.25% and is highest since January 2008. The FOMC revised the median FFR at the end of 2022 up by 100bps to 4.4% from 3.4% in June, indicating a cumulative rate hike between 125bps over the next 2 FOMC meetings this year. For 2023, the median FFR is revised up 4.6% vs. 3.8% in June, suggesting no rate cuts in 2023 and maintaining the terminal rate of 4.6% till 2024.?