![]() Eurozone household consumption is weak due to higher borrowing costs and persistent inflation, leading to a slump in retail sales and weak industrial production. Eurozone inflation remains stubbornly high, with headline inflation at 7% in April. The ECB has hiked rates by 25 basis points and is expected to continue raising rates later in the year. However, strong wage-driven services inflation prompts an upgrade to the 2024 forecast of 2.6%. Inflation forecasts have been lowered to 5.5% for 2023 due to improving energy conditions and a weaker growth environment. Growth forecasts for 2023 have been revised down to 0.6%, with 2024 forecasted at 1%. Southern European economies continue to grow, while Germany and the Eurozone have experienced a technical recession. The European Central Bank (ECB) will tighten policy to control inflation. In the European Union, Eurozone growth is expected to be slow but positive over the next two years. Turmoil in the regional banking sector and higher interest rates will lead to tighter credit conditions, impacting growth prospects in the US. The Federal Reserve is expected to implement two more 25 basis points rate hikes by the end of the year, bringing the target range to 5.5%-5.75%. Core inflation remains resilient, leading to a raised CPI forecast of 2.7% for 2024. Headline inflation is expected to have peaked, with CPI forecasts for 2023 lowered to 4% due to lower energy prices. Consumer spending and the labor market have shown resilience in the first half of 2023, suggesting that the slowdown may not be as immediate or severe as predicted. However, a mild recession is likely in the second half of 2024. In the United States, most forecasts indicate that the economy will avoid a downturn in 2023, with upgraded growth outlooks ranging from 1.2% to 1.8%. However, a shift towards an easing stance is expected in 2024, as disinflation provides a potential silver lining. Strong labor markets and slower-than-expected inflation easing have led to higher interest rates, and major central banks are anticipated to continue the hiking cycle in the second half of 2023. Inflation is expected to gradually ease towards central bank targets over the next 12-18 months, with global consumer prices projected to average 3.7% in Q3 2023, 3.4% in Q4, and 3.0% in 2024. ![]() However, there are concerns about fading reopening effects and fiscal headwinds that may impact global growth in 2024. Advanced economies are expected to experience limited growth of 0.9% in 2023, but the global GDP growth forecast is raised to 2.7% due to the recovery in China and India, which are expected to grow by 5.3% and 6.2% respectively. ![]() However, economic activity remains resilient, thanks to strong consumer spending, positive labor market dynamics, and China's reopening. Through the offer for sale (OFS), One97 Communications Managing Director and CEO Vijay Shekhar Sharma will sell shares worth up to Rs 402.6 crore while Antfin (Netherlands) Holdings will sell shares to the tune of Rs 4,704 crore.The global economy is facing a number of challenges in 2023, including geopolitical tensions, inflation, and tightening financial conditions. Large investors such as Jack Ma's Ant Group Co and Masayoshi Son's SoftBank Group Corp will sell their stake through the IPO. On October 22, Paytm had received market regulator Sebi's nod for the share sale. JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running lead managers to the issue. The Noida-based firm will use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions. ![]() The IPO comprises a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 10,000 crore. The company has raised its issue size from Rs 16,600 crore ($2.2 billion). The IPO will surpass Coal India (Rs 15,475-crore IPO) and Reliance Power (Rs 11,700 crore IPO) in terms of issue size. The Paytm IPO, if successful, will be the country's largest share sale with the firm aiming to raise Rs 18,300 crore. Blackrock, CPPIB, Birla MF, GIC and other blue-chip funds participated in the anchor fund-raising round leading to 10 times oversubscription of shares. ![]() The Vijay Shekhar Sharma-led firm has raised Rs 8,235 crore from anchor investors on November 3. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |