Latest news with #economiccrisis
Reuters
11 hours ago
- Business
- Reuters
India resists EU's oversight proposal on capital flows citing sovereignty concerns, sources say
July 24 (Reuters) - India has pushed back against a proposal by the European Union as part of free trade agreement talks which would give the 27-nation bloc a say in decisions related to capital flows, two Indian government sources said. The proposal, unusual in most free trade agreements, has raised concerns in New Delhi over limiting its ability to act unilaterally during crises, as both sides aim to conclude the deal by the end of 2025. India has in the past imposed restrictions on outflows, including during a currency crisis in 2013. In its proposal to India, the EU has suggested an oversight committee on trade in services and investment policies which would review policy actions, including those taken during financial or balance of payments crises. "India fears such oversight could allow the committee to question or reverse crisis-time policy measures taken by it, which compromises a sovereign's decision-making powers," one of the sources said. India, which trades $190 billion in goods annually with the EU, has also sought clarity on whether decisions taken during emergencies, such as restrictions on capital flows, could be overturned if the committee finds them inappropriate. While trying to limit India's control over capital account decisions, the EU proposes it would have the right to impose temporary restrictions on capital outflows during serious economic difficulties. India argues this creates an imbalance in safeguard powers and deviates from the EU's own practice in FTAs with Vietnam, Singapore, and South Korea, where both sides can apply such measures in exceptional circumstances, the source said. Both sources declined to be identified as they are not authorised to the media. Emails sent to the Reserve Bank of India, Ministries of Finance and Commerce and to the Prime Minister's Office requesting comment did not receive a response. India's opposition to the EU's proposal comes as it negotiates deals with other trading partners including the U.S. and Australia. Accepting oversight or unequal safeguards could limit India's powers on domestic policies and may weaken its push for balanced trade pacts in the future, the sources said. "India has not had an agreement on the FTA so far because of issues such as every country in the bloc wants their point of view or interest to be included," a source from the Ministry of External Affairs said. The European Commission, in its report, opens new tab following the July round of negotiations in Brussels, said "good progress" had been made on capital movements, payments, and transfers, with discussions focused on remaining areas of divergence. India-EU trade talks have faced hurdles over the EU's push to cut import taxes on cars and dairy while seeking stricter climate and labour rules. India wants to protect local farmers, avoid rigid green rules, and keep control over legal disputes.
Bloomberg
18 hours ago
- Business
- Bloomberg
Lavish Homes Left by Fleeing Guptas Up for Sale in South Africa
South Africa is selling off three multimillion rand mansions owned by the Gupta brothers, a trio of influential Indian-born businessmen at the center of a corruption scandal that triggered the country's worst political and economic crisis since the end of Apartheid. Atul, Rajesh and Ajay Gupta began buying the properties in Thursday's auction in 2006. There, in Saxonwold, one of Johannesburg's oldest and most affluent neighborhoods, they entertained top politicians and businessmen for at least a decade.
Bloomberg
a day ago
- Business
- Bloomberg
Turkey Poised For First Rate Cut Since Political Crisis in March
Turkey's central bank is expected to make its first interest-rate cut since a political crisis in March, which caused policymakers to reverse an easing cycle. The Monetary Policy Committee led by Governor Fatih Karahan is poised to agree to a reduction of 250 basis points to 43.5%, according to the median forecast of 20 economists surveyed by Bloomberg. There are two notable dissenters: Goldman Sachs Group Inc. is predicting a bigger cut of 350 basis points while Capital Economics Ltd.'s Liam Peach penciled in a smaller one of 200 basis points.
RNZ News
a day ago
- Business
- RNZ News
Morris and James set to close after half a century of pottery sales
Morris and James' designs are well known for their bold colours and distinctive designs. Photo: Supplied An iconic Matakana ceramics business has made the decision to close its doors after 47 years. For nearly five decades, Morris and James pottery has graced gardens and living rooms across the country, all made on site in its north Auckland base of Matakana. But the business is set to close, citing the current economic crisis as a major factor. Founded in 1977 by Anthony Morris and Sue James, the designs are well known for their bold colours and distinctive designs. Kieran Rice is among those who bought the business in 2009, and is the managing director at Morris and James Matakana. He told Checkpoint the decision was a difficult one for both staff and customers. "It was very, very hard and quite sad... it was a very difficult day when we talked to the staff about it." He said the support from the community had poured in today, following the announcement they were set to close. "People are supportive. We've got great customers and and great staff and they sort of understand the situation, and say we've been a cornerstone of the Matakana tourism for a long time." Rice said that he had never experienced tougher times when operating a business, with spending down for most shoppers. "It's definitely been difficult and these are discretionary spends so you know people have priorities. "People still support us and buy our stuff. But it's just that little bit harder than it had has been in the past." Morris and James Pottery will be closing its doors after 47 years. Photo: Supplied A number of reasons had contributed to the decision to close. Rice said these included a lack of spending, increasing costs and a need to update equipment. "We're at the stage now where we need to start thinking about investing in new kilns or upgrading kilns... and those are big investment decisions with long paybacks. "So some of those things also have been difficult decisions for us to go one way or the other." There is not yet a closure date for the business, with the team wanting to use up the remaining clay before closing the doors. "We're carrying on making for probably another two months and probably manufacturing for another three months by the time we're finished glazing." In that time, he hoped an investor may pop up to potentially save the business. "We're crossing our fingers a bit too... [that] an angel investor might turn up that wants to buy things." Rice said the business will vacate their current premises once they close the doors, and the owners hope to open it up as a space for creatives. Before the closure, the team is focusing on creating orders, and are making special items for customers who request it. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
a day ago
- Business
- RNZ News
Iconic cermanics business Morris and James to close
For nearly five decades, Morris and James pottery has graced gardens and living rooms across the country, all made on site in their north Auckland base of Matakana. But the iconic ceramics business has made the decision to close its doors, citing the current economic crisis as a major contributor. Managing Director at Morris and James Matakana, Kieran Rice spoke to Melissa Chan-Green. Tags: To embed this content on your own webpage, cut and paste the following: See terms of use.
