Latest news with #PPI
Mint
8 hours ago
- Business
- Mint
US Fed Meeting: 5 key factors that will shape FOMC policy decision
US Fed Meeting: Even as markets have largely priced in the possibility of a status quo on interest rates by the US Federal Reserve, investors are keen on picking up signals from Chair Jerome Powell's commentary that rate cuts may not be far off and could begin as early as September. The US Federal Open Market Committee meeting is underway, with the outcome due later today, July 30. The US Fed's next policy meeting is scheduled for September 16-17. At this juncture, the Fed may maintain the federal funds rate in the 4.25 per cent to 4.50 per cent range, given the uncertainty over how the tariffs announced by US President Donald Trump will affect the economy — even as Trump continues to mount pressure on Powell to lower rates. "A rate cut by the Fed is unlikely today. More important would be the Fed commentary on the evolving economic outlook. The FOMC decision today is unlikely to impact the market," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. Let's take a look at five key factors that will influence the monetary policy decision of the US Federal Reserve on July 30: In its June policy meeting, the Fed revised its economic growth forecast, highlighting the risks associated with Trump's tariffs. The central bank projected GDP growth of 1.4 per cent in 2025, down 0.3 per cent from the March meeting. The US economy did contract by 0.5 per cent in the first quarter this year, but the world's largest economy is not showing signs of significant stress at this juncture. In fact, the International Monetary Fund (IMF) on Tuesday raised its estimate for the US economy this year and next year. The IMF has raised its US growth forecast to 1.9 per cent for 2025 and 2 per cent for 2026, an increase of 10 basis points (bps) for 2025 and 30 bps for 2026. The IMF said tax incentives for corporate investment in the recent tax bill are also expected to boost growth slightly next year. Of course, the Fed will have its own assessments, which will be the bedrock of its policy decisions. The Fed cannot ignore the sticky inflation in the US. The US Consumer Price Index (CPI) rose to 2.7 per cent in June from 2.4 per cent in May. Experts expected the June CPI to be 2.6 per cent. The Fed's preferred inflation gauge, the Producer Price Index (PPI), however, declined to 2.3 per cent in June from 2.7 per cent in May. June PPI came below expectations of 2.5 per cent. Nevertheless, inflation in the US remains above the central bank's long-term target of 2 per cent. At this point, the Fed cannot be sure that inflation will ease sustainably given high uncertainty over Trump's tariff policies. The US has finalised trade deals with several countries and is actively engaged in negotiations with other major economies, including India and China, for a conclusive agreement. However, the key point to keep in mind is that despite these trade deals, tariff rates on imports to the US may remain high, in the range of 15–20 per cent. This is likely to influence inflation trends in the US. So far, the US jobs market has remained resilient. However, June US job openings and hiring data indicate signs of weakness. US JOLTS (Job Openings and Labor Turnover Survey) data from the Bureau of Labor Statistics showed that job openings dropped by 2,75,000 to 7.437 million in June, compared to the expectations of 7.510 million. In May, the US JOLTS data showed 7.71 million job openings — the highest since November 2024. There are apprehensions that the job market is yet to see the real impact of the tariffs, as Trump extended the tariff deadline for many countries to August 1. US stocks are trading near record highs, while the dollar and bond yields have been largely stable, barring occasional profit booking. The current financial market conditions do not warrant the Fed to bite the bullet and cut rates. The Fed wants to wait for more data before moving ahead with rate cuts. At this juncture, there is significant uncertainty about how the tariff war will evolve in the coming days. Despite trade deals, the element of unpredictability in President Trump's policies cannot be overlooked. Experts also warn that the tariff policies could cause lasting damage to the US economy. Trump's tariffs remain a key variable in the Fed's monetary policy considerations. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
The Star
2 days ago
- Business
- The Star
PPI dips 4.2% in June
PETALING JAYA: Malaysia's Producer Price Index (PPI) has fallen again – down 4.2% year-on-year in June, following a decline of 3.6% in May 2025. The PPI measures price changes at the producer level. Economist Geoffrey Williams said this should not concern consumers. However, the lower PPI was an indication that for businesses, it reflected tight market conditions resulting in a squeeze on profits. 'The falling PPI is consistent with a low Consumer Price Index and reflects price caution due to trade tensions, lower oil prices and a strong ringgit,' he told StarBiz. Williams said the lower PPI would be reflected in lower inflation for the year across all sectors. 'Businesses are being competitive by moderating producer prices so there is no need to interfere,' he noted. According to the Statistics Department, on a monthly basis, every sector experienced year-on-year decline last month, particularly mining and manufacturing that were the primary contributors to the overall negative trend of the index. The mining sector declined 8% (May 2025: down 15%) as it was impacted by the extraction of natural gas (down 12%) and crude petroleum (down 6.7%) while manufacturing dropped 4.3% (May 2025: down 3%) on the back of a significant downturn of coke, refined petroleum products (down 17.7%) and computer, electronic and optical product (down 7.8%) indices. Furthermore, the agriculture, forestry and fishing sector also recorded a slight decrease of 0.3% (May 2025: 1.8%) as the animal production index fell 2.9%. The utility sectors saw a small drop of 0.2%. On a monthly basis, the PPI for local production recorded a decline of 0.7% in June, and 1.1% in May. Chief Statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector fell 1.2% (May 2025: down 0.5%) due to the manufacture of coke and refined petroleum products (down 4.2%) as well as the manufacture of food products (down 3.0%) indices. 'Similarly, the agriculture, forestry and fishing sector declined by 1% (May 2025: down 5.4%), weighed down by declines in growing of perennial crops (down 1.2%) and animal production (down 0.8%) indices,' he said. However, the mining sector saw an increase by 4.6% rebounding from a 2.3% contraction in May 2025, driven by the extraction of crude petroleum which increased 7%. The water supply index also went up by 0.2% but the electricity and gas supply index fell 0.2% in June 2025. According to Mohd Uzir, the PPI registered a decline of 2.3% on a quarterly basis, in contrast to a 1% increase recorded in the previous quarter, driven by contractions in agriculture, forestry and fishing, mining and manufacturing sectors. On commodity prices, he said the average price of crude Brent oil in June stood at US$71.45 per barrel – an increase from US$64.21 per barrel in the previous month, primarily attributed to escalating geopolitical tensions, particularly the conflict in the Middle East. 'Malaysian crude palm oil prices averaged RM 3,969 per tonne in June 2025, compared with RM 3,880.50 per tonne in May 2025. 'The upward trend was driven by robust global demand especially from India and China, which helped sustain prices despite ample supply,' he said.
The Wire
2 days ago
- Business
- The Wire
CARD91 Launches AI-Powered Merchant Verification and Classification Suite to Simplify and Secure Onboarding
BANGALORE, India, July 28, 2025 /PRNewswire/ -- CARD91, a leading payments infrastructure provider, has introduced a secure and compliant AI-led Merchant Onboarding, Verification, and Classification Suite to streamline onboarding, reduce fraud, and ensure regulatory compliance for banks and payment aggregators. The solution leverages AI/ML algorithms for real-time risk assessment, merchant verification, and automated classification, enabling institutions to onboard merchants swiftly and confidently. Ajay Pandey, CEO of CARD91, remarked: "Merchant onboarding has long been plagued by fragmented processes and compliance challenges. With our AI-powered suite, we're enabling banks and aggregators to move faster, reduce fraud, and stay fully compliant—while delivering a seamless onboarding experience for their merchants." Key Features of the Solution Include: • AI/ML Risk Assessment Classify merchants by risk level—High, Medium, or Low—using advanced AI/ML algorithms. • Comprehensive Verification Verify merchant data through an intelligent analysis of trusted, publicly available data sources and critical elements of the merchant's digital footprint. • Bulk Reclassification Reclassify misrepresented merchants at scale for accurate data and compliance. • Smart MCC Mapping Leverage advanced natural language search for precise MCC assignments. • Score-Based Limits Set collection and transaction limits based on merchant risk scores. • Streamlined DIY Onboarding Enable secure, self-service onboarding flows within your merchant acquiring journey, with embedded verification and classification checks. The solution equips acquiring institutions with the ability to: • Mitigate Risk: Instantly flag and eliminate high-risk merchants using system intelligence. • Protect Revenue: Avoid leakage due to pricing errors or incorrect merchant categorization. • Stay Compliant: Ensure end-to-end adherence to AML/KYC norms and evolving RBI guidelines. • Improve Efficiency: Automate manual processes to reduce delays and operational overhead. • Derisk Portfolios: Build a clean, trustworthy merchant base for banking products like Current Accounts and Corporate Credit. How It Works: The platform collects merchant data with consent, verifies authenticity, assigns risk levels using AI models, and maps MCC codes accurately. Actionable risk scores are generated to inform decisions, with built-in workflows to reclassify and configure limits dynamically. Reimagine Merchant Acquiring with CARD91 With its secure, compliant, and scalable suite, CARD91 continues to redefine payment infrastructure in India. The Merchant Onboarding Suite is now available for deployment by acquiring institutions looking to modernize and future-proof their operations. About CARD91 CARD91 is an Issuance Platform-as-a-Service company providing unparalleled technology infrastructure to banks, prepaid license holders, and authorized dealers. The company enables them to issue various payment instruments (PPI, Credit Cards, Multi-currency Cards, UPI, and now, Credit Line on UPI) to their customers—ensuring seamless issuance and enhanced control. CARD91's support for multiple use cases aligns with its vision of making issuance seamless and swift for Issuers. With a team of 100 professionals, CARD91 operates across key financial hubs, including Mumbai, Bangalore, Delhi, and Chennai. For more information, visit or contact sales@
Yahoo
2 days ago
- Business
- Yahoo
AXA wins UK court ruling against Santander over PPI claims
Frensh insurer AXA has won a legal case in a London court, resulting in a ruling of approximately £680m (€781.53m) against Santander for the mis-selling of payment protection insurance (PPI). The issue involved losses from mis-selling complaints related to PPI policies underwritten by two companies acquired by AXA from Genworth in 2015. These policies were originally sold by a company that Santander acquired in 2009. The legal proceedings initiated by AXA in the High Court of London in 2021 were prompted by losses associated with more than 650,000 customer complaints regarding PPI policies, with banks having disbursed around £40bn in compensation, according to Reuters. AXA, which assumed responsibility for these liabilities following its acquisition of two Genworth units in 2015, has already paid nearly £500m in consumer redress and over £70m related to complaints, Judge Julia Dias said in her ruling. In her judgement, Judge Dias confirmed that AXA "has a valid claim for an indemnity" against Santander Insurance Services UK concerning the payments made for redress and fees associated with the ombudsman. Legal representatives for AXA at Quinn Emanuel indicated that the ruling's value is estimated at £675m. However, an AXA spokesperson clarified that the company would only receive a portion of the total amount awarded, as Genworth has already compensated AXA for a significant share of the losses incurred from the mis-selling. Genworth Financial stated that it anticipates receiving around $750m, contingent on the current exchange rate. In response to the ruling, a spokesperson for Santander expressed disagreement with the court's decision and indicated plans to appeal. The spokesperson further stated: "We do not expect the net impact of the judgment to be material for Santander given provisions already made and the potential legal actions available. 'No customers have suffered loss as a consequence of the claim brought by AXA France or the judgment, nor does it impact upon past redress paid to customers for PPI complaints." "AXA wins UK court ruling against Santander over PPI claims" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Malay Mail
2 days ago
- Business
- Malay Mail
Malaysia's producer prices drop 4.2pc in June 2025, dragged down by mining and manufacturing
KUALA LUMPUR, July 28 — Malaysia's Producer Price Index (PPI), which measures price changes at the producer level, went down further by 4.2 per cent year-on-year (y-o-y) in June 2025, after a 3.6 per cent decline in the previous month, said the Department of Statistics Malaysia (DOSM) today. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said all sectors registered y-o-y declines last month, with the mining and manufacturing sectors emerging as the primary contributors to the index's overall negative trend. The mining sector fell by 8.0 per cent after a 15 per cent contraction in May 2025, affected by the extraction of natural gas (-12.0 per cent) and extraction of crude petroleum (-6.7 per cent) indices. At the same time, the manufacturing sector dropped by 4.3 per cent (May 2025: -3.0 per cent), contributed by significant downturns in the manufacture of coke and refined petroleum products (-17.7 per cent) and manufacture of computer, electronic and optical products (-7.8 per cent) indices, he said in a statement today. The agriculture, forestry and fishing sector also recorded a slight decrease of 0.3 per cent against 1.8 per cent in May 2025, with the animal production index declining by 2.9 per cent. For the utility sector, both electricity and gas supply and water supply posted marginal decreases of 0.2 per cent last month. On a month-on-month basis, the PPI for local production recorded a decline of 0.7 per cent in June 2025, following a 1.1 per cent decrease in the previous month, Mohd Uzir said. 'The manufacturing sector went down by 1.2 per cent (May 2025: -0.5 per cent) due to the manufacture of coke and refined petroleum products (-4.2 per cent) and manufacture of food products (-3.0 per cent) indices,' he said. Similarly, the agriculture, forestry and fishing sector declined by 1.0 per cent (May 2025: -5.4 per cent), weighed down by declines in the growing of perennial crops (-1.2 per cent) and animal production (-0.8 per cent) indices. In contrast, the mining sector rose by 4.6 per cent, rebounding from a 2.3 per cent contraction in May 2025, mainly driven by the extraction of crude petroleum, which rose by 7.0 per cent. Meanwhile, the water supply index edged up by 0.2 per cent, while the electricity and gas supply index decreased by 0.2 per cent in June 2025. The PPI for local production declined by 3.7 per cent in the second quarter of 2025 compared to a 0.3 per cent decrease in the first quarter of 2025. The mining sector fell by 13.7 per cent, followed by the manufacturing (-3.4 per cent) and electricity and gas supply (-0.6 per cent) sectors. However, the agriculture, forestry and fishing sector increased by 1.4 per cent and water supply inched up 0.2 per cent. Meanwhile, on a quarter-on-quarter basis, the PPI registered a decline of 2.3 per cent, in contrast to the 1.0 per cent increase recorded in the previous quarter, primarily driven by contractions in the agriculture, forestry and fishing, mining, and manufacturing sectors. — Bernama
