BUSINESS
Bill Ackman says Fed’s 2% inflation target ‘no longer credible’
The Pershing Square Capital Management founder added that a targeted inflation of around 3% would be a better strategy for long term growth.
BUSINESS
Bond traders dismiss Fed’s hawkish tone, bet on 2023 rate cuts
The policy sensitive two-year Treasury yield initially surged after the Fed’s quarterly forecasts released Wednesday showed officials expect the central bank to raise its key rate to over 5% in 2023, according to the median estimate of policy makers. That’s well above what futures traders are pricing in.
BUSINESS
This is the world’s biggest stock winner of 2022 with 1,600% gain
Shares of PT Adaro Minerals Indonesia have moved sideways since sliding from a peak in April, but are still handsomely beating peers in the 2,803-member Bloomberg World Index — delivering more than double the returns of runner-up Turkish Airlines.
BUSINESS
Billionaire Anil Agarwal struggles to get backers for $19 billion chip plant
The tycoon had announced in September that his Volcan group had joined forces with Hon Hai Precision Industry Co., the assembler of most of the world’s iPhones, to build a chipmaking facility in the state of Gujarat.
BUSINESS
Apple to allow outside app stores in overhaul spurred by EU laws
Software engineering and services employees are engaged in a major push to open up key elements of Apple’s platforms, according to people familiar with the efforts.
BUSINESS
Sam Bankman-Fried’s arrest in Bahamas sets up US extradition fight
In his first appearance since his arrest Monday evening, Bankman-Fried told a Bahamian judge at an arraignment Tuesday that he wouldn’t waive his right to an extradition hearing. A defense lawyer said Bankman-Fried planned to fight being sent to the US.
BUSINESS
Jerome Powell’s ‘most important’ US inflation indicator cools again
Services prices excluding energy services and rents rose just 0.1% last month, after logging increases of 0.4% in October and 0.8% in September, according to Bloomberg calculations based on data published Tuesday by the Labor Department.
BUSINESS
Fed to downshift to 50 bps hike but point to higher peak
The tricky part for Chair Jerome Powell will be convincing investors that this isn’t a dovish pivot and that officials won’t prematurely end their assault against inflation that’s running three times higher than their 2% goal.
MARKETS
Bond traders betting on rates downshift have Fed hurdle to clear
The US five-year yields tumbled as much as 24 basis points on Tuesday to 3.55 percent, the lowest level since September 13, before rebounding to close at 3.65 percent
WORLD
Musk loses world’s richest title to Bernard Arnault with Tesla unwinding
Musk’s fall from atop the rankings — the first time that’s happened since he was No. 2 in September 2021 — caps a tumultuous year for the frenetic billionaire.
BUSINESS
HDFC-HDFC Bank merger to shake up India’s debt market
The consolidation of Housing Development Finance Corp. and unit HDFC Bank Ltd. will create a more than $200 billion financial services behemoth, and the parent will be able to tap the bank’s deposits to grow, rather than pile on more debt.
BUSINESS
Byju’s lenders seek quicker part-payment of $1.2 billion loan
The lenders have hired Houlihan Lokey Inc. to advise them on amending covenants after the edtech titan breached terms, including a September deadline for filing its results for the year ended March 31, 2022, the people said, asking not to be identified as the information isn’t public. Rothschild & Co. is representing Byju’s in the talks, they said.
BUSINESS
Paytm’s surprise share buyback plan is drawing skepticism
The board of One 97 Communications Ltd., the listed-entity that runs Paytm, will decide on the buyback on Tuesday.
BUSINESS
KM Birla controlled AB Capital said to weigh selling insurance brokerage unit
The publicly-traded company has held talks with potential buyers about a sale of Aditya Birla Insurance Brokers Ltd. as it failed to scale up the 19-year-old business, the people said, asking not to be identified as the information is not public.
BUSINESS
Is ChatGPT the start of the AI revolution?
In essence, ChatGPT is a bot trained to generate human-like responses to user inputs. Through the wonders of machine learning, it’s acquired a remarkably expansive skillset.
BUSINESS
Looming CPI is fraying trader nerves in VIX-S&P rally
While the S&P 500 was en route to a 1.4% gain Monday, the Cboe Volatility index — a gauge of cost on options tied to the stock benchmark also known as VIX — jumped more than 2 points to surpass 25.
BUSINESS
JPMorgan’s Marko Kolanovic cuts equity allocation on weak 2023 outlook
The bank now rates stocks as “moderate underweight” down from “overweight” and is trimming its risk exposure in commodities, while increasing its allocation to corporate bonds and cash, according to a team of strategists led by Kolanovic.
BUSINESS
Goldman to cut hundreds more jobs as consumer unit scaled back
The bank is drafting plans that could eliminate at least 400 positions from its loss-making retail banking operations, according to people familiar with the matter.
BUSINESS
Bank of America expects $10 billion in India green deals in 2023
Deals and investments will continue to flow into areas such as electric vehicles and green hydrogen, Kaku Nakhate, the lender’s president and India country head, said in an interview, as investors look to reflect the energy transition in their portfolios.
BUSINESS
Bahamas told Sam Bankman-Fried to Mint new crypto as FTX collapsed, lawyers say
Before Bankman-Fried was blocked from FTX systems, the Bahamas asked him to mint new digital coins worth hundreds of millions of dollars and then transfer those tokens to the control of island officials, according to the legal team in control of FTX.
BUSINESS
Rivian scraps plan to make electric vans in Europe with Mercedes
Rivian will no longer pursue the memorandum of understanding signed with the German automaker in September, which included plans to invest in and jointly operate an existing Mercedes vans plant.
BUSINESS
US scientists achieve fusion energy breakthrough, FT says
The federal Lawrence Livermore National Laboratory in California used a process called inertial confinement fusion to achieve a net energy gain in a fusion reaction in the past two weeks, the FT said Sunday, citing people with knowledge of the matter.
BUSINESS
Coffee consumption seen rising only modestly in next few years
“We are more conservative now for a short-term projection,” Nogueira said during a conference in Hanoi held by the Vietnam Coffee-Cocoa Association, referring to all the events the world is facing, including high inflation in Europe and the war in Ukraine.
BUSINESS
Hot streak of foreign buyers for India bonds faces CPI hurdle
Global funds have poured a cumulative $465 million into Indian bonds over 13 straight days, the longest stretch since June 2017, on optimism that the US Federal Reserve and Reserve Bank of India may slow the pace of rate increases.
