Latest news with #Irigoyen
Mint
3 days ago
- Business
- Mint
US in stagflationary shock, India remains outlier, says BofA's Claudio Irigoyen
Mumbai: As the US economy goes through a stagflationary shock owing to higher tariffs, India and other countries will remain outliers, according to Claudio Irigoyen, managing director and head of global economics research at Bank of America Global Research. While Irigoyen expects the US Federal Reserve to refrain from cutting rates as it tackles lower growth and higher inflation, he says other central banks are likely to cut rates as they face lower growth and lower inflation. The market was earlier expecting five rate cuts from the US Fed this year, but has lowered its expectation to two. Also read: 'Why did you invite Modi for G7 Summit?': Canadian PM Carney replies, 'India should be…' 'We call it a slowdown but not a recession (for US). So those are the two biggest out-of-consensus calls we've had," said Irigoyen. 'The Fed will not cut, and the US economy will slow down but will not enter into a recession." Irigoyen's team has lowered the global growth estimate to 2.8% for 2025 from 3.1% earlier. BofA expect India's gross domestic product (GDP) to grow 6.3% and Europe's 0.9%. According to Irigoyen, Indian's central bank will pause after delivering a surprise 50-basis-point rate cut and a 100-basis-point reduction in the cash reserve ratio (CRR) last week. 'We have been calling for RBI to cut rates by 100bps for some time, and with that rate trajectory achieved, we believe RBI can now wait and see the transmission, especially since they have changed their policy stance to neutral," he said. 'Naturally, given RBI's pro-growth stance, the risk will be for RBI to ease rates further, but given their current growth projections, we believe RBI will be patient and wait to see if GDP growth deteriorates from here to gauge whether more easing is needed or not." While Irigoyen remains sanguine about India's growth story, he believes that it will need to build more infrastructure to attract supply chains. Also read: Russian intelligence document calls China 'the enemy', leak exposes Moscow's deep fear 'India could be a relatively good story because it's relatively neutral from a geopolitical standpoint, or trying to be, and could be a point of attraction of FDI and relocation of supply chains, but this is going to take some time," he said. 'India needs to do the shore-up in terms of building more infrastructure to attract supply chains." BofA also expects the dollar to continue weakening, albeit not sharply. 'We do not see any short-term risk for the dollar to lose its reserve currency status," Irigoyen said. Irigoyen, however, expects global portfolios to continue rebalancing away from US assets into Europe and emerging markets, unwinding the overweight exposure to US assets into more neutral portfolios. 'As the geopolitical landscape around the world is changing, some countries are less inclined from a geopolitical perspective to buy US treasuries," he said. 'Central banks are moving away from US treasuries to gold. So while there is less demand, there is higher supply of treasuries because of the deficit." Also read: Will America's unbalanced trade doom the dollar? Irigoyen also said that all eyes are currently on the tax bill that is expected to be passed by the US Congress on 4 July. The legislation is expected to cut taxes by $3.7 trillion, while also increasing deficits by $2.4 trillion over the next decade.
Yahoo
06-05-2025
- Automotive
- Yahoo
Grand Strand Uber drivers concerned over lower rates ahead of Myrtle Beach Classic
MYRTLE BEACH, S.C. (WBTW) — The OneFlight Myrtle Beach Classic is right around the corner, which is typically good news for Uber drivers looking for additional customers. Myrtle Beach Uber drivers say big events like the Myrtle Beach Classic were events they once banked on making a substantial profit. But now, those drivers say that since the upfront pricing feature started, their overall profitability has decreased to an alarming rate. 'So many people have done Uber in the past and then they stop doing it, start doing it, then stop,' Pedro Irigoyen said. 'It's because they see that throughout the years, it's always been . . . end up paying you a little bit less, a little bit less, a little bit less.' Drivers who have Ubered for eight years say the new upfront pricing shows the estimated fare drivers would be making during a given ride — which now shows them shocking amounts less. 'When Uber started in this area, we can make up to $1,000 in a weekend, three or four days,' Irigoyen said. 'But now, to get to those amounts, to get to make $1,000, you got to maximize your hours and drive like seven or eight days straight. It's not stable enough for me because I have a family. I have kids I have to provide for.' Gordon Mooneyhan, a full-time Uber driver, says the new changes may make him switch to a new rideshare experience completely. 'I've found a new one called WRIDEZ, and it looks to be a lot better because the driver gets 100% of the fare,' he said. Irigoyen said another problem is not receiving requests for rides in the area he's near, creating potentially unsafe situations for customers and unprofitable situations for drivers. 'You've got somebody who has been drinking. Now you're going to make them wait 20 minutes to get picked up?' he said. 'They're going to be much more tempted to get in their car and drive drunk. Most of the time we either have to decline it and not take that trip because this will put us financially in the negative. It's getting to a point where I might stop.' Both Irigoyen and Mooneyhan say due to recent changes in upfront pricing, their profit has been cut nearly 40 to 50%, making them unsure if this year's Myrtle Beach Classic will be worth doing Uber for because of the changes. * * * Gabby Jonas joined the News13 team as a multimedia journalist in April 2024. She is from Columbus, Ohio, and graduated from Kent State University in May 2023. Follow Gabby on X, formerly Twitter, Facebook or Instagram, and read more of her work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
