Dollar index gathers further momentum above 99.50 mark
The dollar index added further gains on Wednesday for the second straight session on the back of upbeat economic data. The Conference Board's US consumer confidence Index rebounded sharply after a prolonged fall since December 2024. The Conference Board said its consumer confidence index spiked to 98.0 in May after plunging to a downwardly revised 85.7 in April. This marks the biggest monthly rise in four years amid an improving outlook for the economy and the labor market on the back of the US-China trade truce. Dollar index that measures the greenback against a basket of currencies accrued optimism from this and is quoting at 99.65, up 0.22% on the day. Investors will eye the Federal Reserves (Fed) last meeting minutes, the second estimate for Gross Domestic Product (GDP) in Q1 2025, and the Feds Core Personal Consumption Expenditures (PCE) Price Index during the week ahead.
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Hindustan Times
42 minutes ago
- Hindustan Times
China blasts US for its computer chip moves and for threatening student visas
TAIPEI, Taiwan — China blasted the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. 'These practices seriously violate the consensus' reached during trade discussions in Geneva last month, the Commerce Ministry said in a statement. That referred to a China-U.S. joint statement in which the United States and China agreed to slash their massive recent tariffs, restarting stalled trade between the world's two biggest economies. But last month's de-escalation in President Donald Trump's trade wars did nothing to resolve underlying differences between Beijing and Washington and Monday's statement showed how easily such agreements can lead to further turbulence. The deal lasts 90 days, creating time for U.S. and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last. U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on U.S. goods to 10% from 125%. The Commerce Ministry said China held up its end of the deal, canceling or suspending tariffs and non-tariff measures taken against the U.S. 'reciprocal tariffs' following the agreement. "The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations,' while China has stood by its commitments, the statement said. It also threatened unspecified retaliation, saying China will 'continue to take resolute and forceful measures to safeguard its legitimate rights and interests.' And in response to recent comments by Trump, it said of the U.S.: 'Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts.' Trump stirred further controversy Friday, saying he will no longer be nice with China on trade, declaring in a social media post that the country had broken an agreement with the United States. Hours later, Trump said in the Oval Office that he will speak with Chinese President Xi Jinping and 'hopefully we'll work that out,' while still insisting China had violated the agreement. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted. 'So much for being Mr. NICE GUY!' The Trump administration also stepped up the clash with China in other ways last week, announcing that it would start revoking visas for Chinese students studying in the U.S. U.S. campuses host more than 275,000 students from China. Both countries are in a race to develop advanced technologies such as artificial intelligence, with Washington seeking to curb China's access to the most advanced computer chips. China is also seeking to displace the U.S. as the leading power in the Asia-Pacific, including through gaining control over close U.S. partner and leading tech giant Taiwan.
Hans India
44 minutes ago
- Hans India
Economic boom should lift all boats, not just yachts of the elite
India and Japan occupied the global news headlines of late when India achieved the monumental feat of surpassing Japan to claim the title of the world's fourth-largest economy with a nominal GDP of $4.187 trillion, narrowly ahead of Japan's $4.186 trillion. India and Japan represent two fascinating, yet contrasting, economic stories on the global landscape. One is a rapidly growing, populous emerging market with a youthful demographic, while the other is a mature, technologically advanced economy grappling with demographic challenges. This tale of two economies highlights their unique strengths, challenges, and forward paths. Often hailed as the 'world's fastest-growing major economy', India has been on a remarkable trajectory. The milestone of surpassing Japan marks its ascent as a global economic powerhouse, driven by a youthful population, booming tech and manufacturing sectors, and bold infrastructure initiatives. Yet, for millions of Indians—from tech workers in Bengaluru to farmers in Bihar—this headline masks a deeper question: how does this growth translate into everyday life? And how does it compare to Japan, a nation celebrated for its high living standards, equitable wealth distribution, and efficient society? India's economic ascent to the world's fourth-largest economy is a point of national pride. Yet, beneath this headline lies a troubling reality: One per cent of Indians control nearly 40 per cent of the nation's wealth, according to recent reports. This extreme concentration of wealth underscores an alarming widening of the gap between the haves and have-nots, threatening social cohesion and sustainable growth. An economy's size is measured by its Gross Domestic Product (GDP), the total value of goods and services produced annually. India's $4.187 trillion GDP in 2025 places it behind only the United States of America, China, and Germany, fuelled by a population of 1.45 billion. However, GDP per capita reveals a stark divide. India's per capita income is roughly $2,900, while Japan's is $39,000, over 13 times higher. With Japan's population at 125 million, its wealth is more evenly distributed, ensuring better living standards. For the average Indian, this means national prosperity doesn't yet translate into personal wealth. Japan's edge lies in higher living standards, better infrastructure, and equitable wealth distribution, despite a smaller economy. Japan's Gini coefficient (a measure of inequality) is among the lowest globally, while India's is high, reflecting greater disparity. Its model shows that equitable growth can enhance stability, a model that India can look to emulate. India's economic surge is reshaping lives, but the benefits are uneven, and challenges persist. Its economic growth brings opportunities but doesn't automatically translate into immediate improvements for everyone. In total economic size, India has overtaken Japan, but in daily life metrics, Japan remains far ahead due to various factors pointed above. India's unemployment rate in April 2025 was 5.1 per cent, higher than Japan's impressive 2.5 per cent. Urban youth face a steep 17.2 per cent unemployment rate. A skills mismatch—65.7 per cent of India's unemployed are educated but lack training for high-tech roles—remains a hurdle. Income inequality and regional disparities persist, with rural areas lagging in infrastructure and access to services. The informal sector, which employs a large portion of the workforce, lacks social security and stability. India's 250-million-strong middle class is fuelling a consumer boom, from smartphones to 5G streaming. Digital payments, like UPI at village shops, are transforming even rural areas. In contrast, Japan's $39,000 per capita income ensures most citizens enjoy modern homes, reliable public transport, and leisure like dining out or bullet train travel. While India's middle class will expand, its 140th global rank in per capita income underscores that the poorest won't see quick gains. India's Universal Health Coverage Index has improved, with schemes like Ayushman Bharat providing free care to millions. Yet, 35.5 per cent of under-5 children face malnutrition, and rural healthcare is inconsistent. Economic growth is expanding hospitals, but high out-of-pocket costs burden families. Japan's universal healthcare ensures near-total coverage with advanced facilities. India's low per capita income limits such access. The concentration of around 40 per cent of India's wealth in the hands of one per cent of its population has far-reaching consequences such as economic instability, social tensions, political influences and youth frustration, among others. Extreme inequality can stifle growth. The poorest 43 per cent, who struggled for food in 2022, have limited purchasing power, slowing consumer-driven economic expansion. India's 140th global rank in per capita income ($2,900) reflects this skewed distribution. Rising inequality fuels resentment, as seen in urban-rural divides and protests over job scarcity. The urban middle class enjoys smartphones and 5G, while rural families face malnutrition (35.5 per cent of under-five children) and inadequate healthcare. The wealthy one per cent wields disproportionate influence, potentially shaping policies that perpetuate their advantage. These risk undermining democratic fairness and public trust. With urban youth unemployment at 17.2 per cent, educated young Indians feel excluded from the wealth boom, leading to disillusionment and potential unrest. To address its wealth gap, India requires bold and inclusive policies like progressive taxation, skilling and education, rural investment, and social safety nets, among others. Strengthening wealth and inheritance taxes could redistribute resources. Closing loopholes and improving tax compliance would ensure that the rich contribute fairly. Expanding access to quality education and vocational training, especially in rural areas, can bridge the skills mismatch. Boosting agriculture, rural infrastructure, and healthcare (such as expanding Ayushman Bharat) would lift the poorest, reducing the urban-rural divide. Strengthening welfare programs, like food subsidies and unemployment benefits, can support the have-nots, thereby reducing poverty's grip. India's economic milestone is a moment of pride, but true success lies in improving daily life. The challenge is to ensure that its economic boom lifts all boats, not just the yachts of the elite. Emulating Japan's focus on equitable systems while leveraging India's youthful demographic advantage could transform this tale of inequality into one of shared prosperity. To rival Japan's quality of life, India must prioritise equitable growth, skilling, and infrastructure. The economic race should be on—not just to grow bigger, but to grow better. (The author is former Senior Editor, The Economic Times, and currently practicing as an Advocate in Telangana High Court)CR SUKUMAR
Time of India
an hour ago
- Time of India
ECB set for 7th rate cut again as Donald Trump trade war rumbles on
The European Central Bank is likely to announce its seventh consecutive interest rate cut this week as the eurozone economy struggles under slowing inflation and uncertainty fueled by US President Donald Trump 's shifting trade policies. Prior to Trump's fluctuating tariff impositions globally, the ECB had been reducing borrowing costs in response to declining inflation rates. Concerns about economic performance in the 20 euro-using nations have become more prominent than inflation worries, as elevated rates have affected both commercial entities and consumers. The impact of Trump's tariffs has created additional pressure. Europe faces scrutiny due to its substantial trade surplus with the United States, raising concerns about potential negative effects on European exporters. HSBC anticipates a rate reduction at Thursday's ECB governing council meeting, citing the eurozone's deteriorated short-term outlook following recent US tariff announcements. Financial experts anticipate another quarter-point decrease, which would adjust the Frankfurt-based institution's primary deposit rate to two percent. However, specialists suggest this June reduction might conclude the current sequence, with the ECB likely taking a pause in July to evaluate recent economic trends. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The ECB's reduction strategy contrasts with the US Federal Reserve's approach, which has maintained steady rates amid concerns about Trump's tariffs potentially increasing inflation. The EU currently faces multiple tariff levels from Trump's administration, including a 10-percent baseline rate and 25-percent duties on vehicles, steel and aluminium. Trump has temporarily suspended higher tariffs on the EU and other trading partners during negotiations, temporarily reducing market tensions. However, indicating ongoing trade tensions, he recently threatened a 50-percent tariff on the EU, before postponing the decision to July 9. ECB President Christine Lagarde expressed concern in Berlin, stating that the US-led global economic structure was "fracturing". The ECB faces challenges in safeguarding the eurozone from Trump's unpredictable trade policies while maintaining stable inflation. Eurozone inflation reached 2.2 percent in April, marginally exceeding the ECB's two-percent target. Eurostat will release May's inflation figures on Tuesday before the ECB meeting. Recent indicators suggest faster-than-anticipated reduction in price pressures, and the ECB is likely to revise its inflation forecasts downward on Thursday. Analysts generally believe Trump's tariffs will further decrease eurozone inflation, particularly as China might redirect low-cost products to Europe to avoid US duties. The ECB is expected to reduce growth projections on Thursday due to trade war effects, following the EU's recent forecast reductions. While markets await Lagarde's guidance about future ECB actions, analysts suggest current uncertainties will limit detailed revelations. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
