Latest news with #squeeze
Otago Daily Times
3 days ago
- Business
- Otago Daily Times
Inflation predicted to hit 12-month high
By Gyles Beckford of RNZ Inflation is expected to hit a 12-month high, as surging food prices and power costs put the squeeze on household budgets. Consumer prices for the three months ended June are expected to have risen 0.6 percent, pushing the annual rate to 2.8 percent from 2.5 percent in March. ANZ senior economist Miles Workman said there would be familiar domestic drivers of the latest numbers. "The main drivers of quarterly inflation are expected to come from the food and housing-related groups - accelerating electricity inflation, but slowing rents and construction." High export prices for meat and dairy products have driven local food prices, and thus stoked inflation, but at the same time, they are delivering strong export returns that have supported the economy. ASB senior economist Mark Smith said the spike in inflation was expected to push the annual rate above three percent in the September quarter, but should prove to be temporary. "We expect the period of three percent-plus inflation to be short-lived. Forthcoming inflation expectations surveys will be critical for ascertaining whether team transitory or team persistence will win the inflation tug-o-war. "Our core judgement is that the deteriorating global outlook and the large margin of spare capacity will dampen the medium-term outlook for inflation." RBNZ discomfort Workman said the higher inflation numbers would be uncomfortable reading for the Reserve Bank (RBNZ), which would have to balance between controlling inflation and helping the economy. "The RBNZ will need to balance any upside surprise in the CPI against the signal from the high-frequency data, which is currently pointing to a stalling recovery and therefore downside risks to the medium-term inflation outlook." In its most recent monetary review, the RBNZ acknowledged the speed-up in inflation, but also gave a strong hint of a further rate cut at the end of August. "If medium-term inflation pressures continue to ease as projected, the committee expects to lower the official cash rate further," the RBNZ statement said. Kiwibank economists said the issue for the RBNZ and interest rate policy was underlying inflation trends. "Encouragingly, core inflation has been trending south since hitting the 6.7 percent peak at the end of 2022. In the year to March 2025, core inflation fell to 2.6 percent." They said the economy needed lower rates and they expected another 25 basis-point cut in August. At this stage, Workman picked the cuts in August, November and early next year would take the cash rate to a low of 2.5 percent.
Yahoo
5 days ago
- Business
- Yahoo
Dinosaur Coins ETC, BCH and DOGE Roar Back as Altcoin Season Heats Up
The highly-anticipated altcoin season is finally here. After bitcoin BTC broke record highs last week and consolidated this week, the way opened for capital to rotate into the more speculative altcoin market. Friday's top performers are known as dinosaur coins, many of which were created before the 2017 bull market. Ethereum classic (ETC) leads the pack with a 24-hour surge of 20% after breaking through the $20.27 level of resistance. It still faces a stern test at $25.00, a level it rejected exactly one year ago before plummeting to $15.80. ETC's growing popularity is reflected in its trading volume. That tripled to $756 million, showing the move is backed by traders who are rolling capital from sector to sector in true "altcoin season" style. Litecoin (LTC), bitcoin cash (BCH), dogecoin (DOGE) and of course XRP also posted notable gains. And all rose to stardom as retail investors poured capital into the 2017 cycle. LTC is up in part because of MEI Pharma's $100 million LTC fund with the project's founder, Charlie Lee, taking a board seat. But it's also due to a general rotation into legacy coins that stuttered during this week's ferocious altcoin move. Uniswap (UNI), which was actually released slightly later than the others, in 2020, also climbed 20%, and as volume topped $1.7 billion — a 70% increase. It is now trading above the $8.11 and $10.33 levels of resistance as it looks to move up towards $12.09, a level that caused several rejections during the middle of last year. What does Friday's move mean? The rotation into dinosaur coins can be looked at one of two ways. Either it is a bullish scenario in which traders are flipping their gains and moving methodically from sector to sector, or it is the early etchings of a cycle high, with traders attempting to squeeze the final scraps of profit before a the market enters a correction. There are several technical indicators that first, bullish, scenario is the most likely, including a series of breakouts above months-old levels of resistance. If, however, bitcoin tumbles below $110,000 altcoins will suffer a complete wipeout. Open interest on several altcoins suggests the recent move has been backed with leverage. Dogecoin open interest is up at $2 billion, a 30% rise in 24 hours, while uniswap's is up by 35% to $389 million, Coinalyze data shows. This means that if the market experiences a broader sell-off, leveraged altcoin positions will unwind, leading to liquidations and subsequent pressure to sell. Coupled with the reduced liquidity and lower market depth of altcoins, several tokens could face a decline in excess of 10%. The ideal scenario for altcoins is bitcoin climbing above the $124,000, a level of resistance, and moving higher before another period of consolidation. That would allow capital to rotate without the risk of an immediate correction.
Hindustan Times
16-07-2025
- Automotive
- Hindustan Times
Maruti Suzuki e-Vitara will offer a range of up to 426 km per charge, takes 45 minutes to be charged 10-80%
Maruti Suzuki is gearing up to launch the e-Vitara in India in September 2025, ahead of the festive season, while Suzuki has already introduced the made-in-India e-Vitara in the UK. Notify me Maruti Suzuki e-Vitara is one of the most awaited electric cars in the Indian passenger vehicle market. The e-Vitara is slated to launch in India in September 2025, right ahead of the festive season. It is going to be the first electric car from the biggest car manufacturer in India, in terms of sales volume. With just two months left before the launch of the electric SUV, range and charging details of the Maruti Suzuki e-Vitara have been revealed. With the made-in-India Suzuki e-Vitara already introduced in the UK, the specification sheet reveals that the electric SUV promises to squeeze a range of up to 426 km (WLTP) on a full charge, while the battery pack is capable of charging 10-80 per cent in just 45 minutes, using a DC fast charger. Maruti Suzuki e-Vitara: Range and charging The Suzuki e-Vitara sold in the UK market is available in two battery pack options - 49 kWh and 61 kWh units. The smaller battery pack offers a WLTP claimed range of up to 344 km on a single charge. This battery pack is available with a single front-wheel drive setup that churns out 142 bhp of peak power and 193 Nm of maximum torque. The bigger battery pack is available with both FWD and AWD options. The FWD variant promises up to 426 km range on a full charge. The electric motor paired with this battery pack in the FWD version generates 171 bhp peak power and 193 Nm of maximum torque. On the other hand, the dual electric motor-equipped version generates 181 bhp peak power and 307 Nm of maximum torque. The battery pack on this variant offers up to 395 km of range on a single charge. Speaking of the charging time for the battery packs, the 49 kWh battery pack is capable of charging 10-100 per cent using a 7 kW AC charger in 6.5 hours, while an 11 kW AC charger does the same in 4.5 hours. For the 61 kWh battery pack, the time is increased to nine hours and 5.5 hours, respectively. Both battery packs can be charged from 10 to 80 per cent in just 45 minutes using a DC fast charger. Check out Upcoming EV Cars in India. First Published Date: 16 Jul 2025, 11:30 am IST
Business Times
16-07-2025
- Business
- Business Times
Chinese convertible bonds rally to decade-high on surging demand
[BEIJING] Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income. The CSI convertible bond index has rallied about 8 per cent in 2025 to trade near a decade high. That easily beats the stock benchmark's 2.1 per cent advance so far this year, while Chinese government bonds have returned just 0.9 per cent in local-currency terms. Investor appetite for the hybrid notes has surged, thanks to easing credit rating risks on the securities and an equity market rebound. A share price rally in banks and small-caps, the sectors that dominate the convertible bond index, has further buoyed demand for such securities that can be exchanged for equity. 'Non-convertible bond investors can no longer overlook the standout performance of this asset class,' said Wesley Chen, head of fixed income at Ubp Investment Management Shanghai. 'For foreign funds looking to build positions in China but lacking strong conviction in the equity market, these bonds offer a compelling alternative, providing exposure to equity upside with lower volatility and drawdowns.' Convertibles typically offer investors lower yields than conventional debt, but provide an option to exchange into shares if certain conditions are met. The recent economic backdrop has made such notes appealing to both issuers, who can raise funds at a lower cost, and buyers, who expect stock momentum to continue. Two exchange-traded funds tracking the CSI convertible bond index saw the biggest monthly inflow last month since January, Bloomberg-compiled data show. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A drop in supply from early redemptions and maturities has also supported prices. The outstanding amount of such securities in China fell by over 55 billion yuan (S$9.9 billion) in the June quarter to dip below 650 billion yuan, according to Sinolink Securities. That compares with over 730 billion yuan at the end of 2024. The supply squeeze has been particularly pronounced in banking convertibles, long favoured by investors for their low volatility, strong credit ratings and better liquidity. The surge in the sector's shares has helped fuel early redemptions. The CSI 300 Bank Index has gained 17 per cent this year. To some, the rally presents an opportune time to realise gains. Convertible bond investors should 'consider locking in some profits', given uncertainties facing the stock market from tariff negotiations and earnings, Ruizhe Yin, a Sinolink Securities analyst, wrote in a note. Yet the tight supply will likely continue to support the price of convertibles. There has been no new bank convertible issuance onshore since late 2022, according to data compiled by Bloomberg. Shanghai Pudong Development Bank's 50 billion yuan note, which matures in October, will likely exacerbate the situation. 'Market appetite is strong, but supply is tight,' said Wei Li, head of multi-asset investments at BNP Paribas Securities (China). 'Chinese bank convertibles are trading like premium scarcity plays, yet visibility on future issuance remains low. That's keeping valuations elevated.' BLOOMBERG
Mint
16-07-2025
- Business
- Mint
Chinese Convertible Bonds Rally to Decade-High on Surging Demand
(Bloomberg) -- Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income. The CSI convertible bond index has rallied about 8% in 2025 to trade near a decade high. That easily beats the stock benchmark's 2.1% advance so far this year, while Chinese government bonds have returned just 0.9% in local-currency terms. Investor appetite for the hybrid notes has surged, thanks to easing credit rating risks on the securities and an equity market rebound. A share price rally in banks and small-caps — the sectors that dominate the convertible bond index — has further buoyed demand for such securities that can be exchanged for equity. 'Non-convertible bond investors can no longer overlook the standout performance of this asset class,' said Wesley Chen, head of fixed income at Ubp Investment Management Shanghai Ltd. 'For foreign funds looking to build positions in China but lacking strong conviction in the equity market, these bonds offer a compelling alternative, providing exposure to equity upside with lower volatility and drawdowns.' Convertibles typically offer investors lower yields than conventional debt, but provide an option to exchange into shares if certain conditions are met. The recent economic backdrop has made such notes appealing to both issuers — who can raise funds at a lower cost — and buyers, who expect stock momentum to continue. Two exchanged-traded funds tracking the CSI convertible bond index saw the biggest monthly inflow last month since January, Bloomberg-compiled data show. A drop in supply from early redemptions and maturities has also supported prices. The outstanding amount of such securities in China fell by over 55 billion in yuan ($7.7 billion) in the June quarter to dip below 650 billion yuan, according to Sinolink Securities Co. That compares with over 730 billion yuan at the end of 2024. The supply squeeze has been particularly pronounced in banking convertibles, long favored by investors for their low volatility, strong credit ratings and better liquidity. The surge in the sector's shares has helped fuel early redemptions. The CSI 300 Bank Index has gained 17% this year. To some, the rally presents an opportune time to realize gains. Convertible bond investors should 'consider locking in some profits,' given uncertainties facing the stock market from tariff negotiations and earnings, Ruizhe Yin, a Sinolink Securities analyst, wrote in a note. Yet the tight supply will likely continue to support the price of convertibles. There has been no new bank convertible issuance onshore since late 2022, according to data complied by Bloomberg. Shanghai Pudong Development Bank Co.'s 50 billion yuan note, which matures in October, will likely exacerbate the situation. 'Market appetite is strong, but supply is tight,' said Wei Li, head of multi-asset investments at BNP Paribas Securities (China). 'Chinese bank convertibles are trading like premium scarcity plays, yet visibility on future issuance remains low. That's keeping valuations elevated.' More stories like this are available on
