Business news highlights (April 17): ECB cuts key interest rates by 0.25 percentage points

• India will release its industrial output numbers on the 28th of every month, the government said on Thursday.
• The change reduces the data lag by about a fortnight and the government said the March print will be released on April 28 at 1600 India time.
• India's industrial output in February was its weakest since August 2024, hurt by slowing manufacturing and mining sector growth. - Reuters

The Governing Council has decided to cut the European Central Bank’s three main interest rates by 25 basis points. This includes a reduction in the deposit facility rate, which is a key tool for shaping the ECB’s monetary policy stance. The decision is based on an updated evaluation of the inflation forecast, the behavior of core inflation, and the effectiveness of monetary policy transmission.

• U.S. President Donald Trump will host Italian Prime Minister Giorgia Meloni on Thursday, a close ally who hopes to serve as a bridge between Washington and Europe amid rising tensions over American tariffs.
• The 27-member European Union is facing 25% tariffs on steel, aluminum, and automobiles, along with broader duties on nearly all other goods, as part of Trump’s strategy targeting countries he claims maintain steep trade barriers against U.S. products.
• Meloni, a 48-year-old conservative who has gained Trump’s favor, was the sole EU leader invited to his inauguration in January. Trump’s recent decision to suspend most global tariffs for 90 days has offered Meloni some breathing room in her diplomatic efforts.

• China's commerce ministry on Thursday urged the United States to stop putting "extreme pressure" on the world's second-largest economy and demanded respect in any trade talks, but the two sides remained at an impasse over who should start those talks.
• The Donald Trump administration has been ramping up pressure on China by raising import tariffs on Chinese goods in recent months. On Tuesday, the White House published a fact sheet stating that China now faces up to a 245% tariff.
• The Chinese commerce ministry has criticised the tariffs as irrational and said Beijing will ignore the "meaningless" tariff numbers game. It has also warned that China will "fight to the end" if the U.S. insists on heaping substantial damage on China's rights and interests. - Reuters

• The presence of tens of thousands of US troops in South Korea and Japan is poised to factor into President Donald Trump's ongoing tariff negotiations, despite both countries' efforts to keep military matters separate from trade discussions.
• Trump, in posts on Truth Social, stated that defense cost-sharing would be included in a “one-stop shopping” approach to talks with South Korea, and he also brought up the topic of defense responsibilities during a recent visit by Japanese officials to Washington.
• Japan currently hosts around 50,000 American troops, while South Korea hosts roughly 28,500. Both nations rely on the US nuclear shield to deter threats from China, Russia, and North Korea, and are considered key to the US military’s strategic presence and power projection in the region.

In an exclusive conversation with CNBC-TV18, OpenAI shared exciting insights about its expanding presence in India. The company emphasized that India is "incredibly important" for OpenAI, noting that it is now their "second-largest market." OpenAI also revealed that it has seen "image generation take off in India," with the country emerging as a key player in the adoption of its innovative technologies.

Discussing the latest advancements, OpenAI highlighted the capabilities of ChatGPT 4.1, calling it "fantastic at coding" and expressing excitement about the potential it holds for developers. The company also noted the "tremendous excitement" surrounding ChatGPT, particularly in India, where "active Indian users have more than tripled in 2024."

Indian exporters with receivables in major currencies like the euro, yen, and pound are being advised to reduce their hedge ratios as the U.S. dollar continues to weaken, forex strategists and bankers told Moneycontrol.

With the greenback under pressure from rising tariffs, lowered U.S. growth forecasts, and shifting investor sentiment, many forex advisors believe exporters should re-evaluate their strategy, especially for non-dollar currencies.

Typically, exporters hedge their future receivables using forward contracts that lock in an exchange rate to guard against currency swings. But now, the suggestion is to go lighter on such hedges to benefit from potential gains if the dollar continues to fall.

“Exporters can gain more by under-hedging euro, pound, and yen receivables and using stop-losses to limit risk,” said Abhishek Goenka, CEO of forex advisory firm IFA Global. He expects further strength in these currencies relative to the dollar.

The dollar index, which tracks the greenback against six major currencies, has fallen 3% last month and another 4.5% so far in April, nearing three-year lows. As a result, the rupee has seen some support, but euro/rupee and yen/rupee cross rates have surged over 5% this month. The pound/rupee pair has hit a record high.

(From Reuters)

Chinese refiners are snapping up record volumes of Canadian crude oil, slashing their US oil purchases by nearly 90% as trade tensions between Washington and Beijing escalate, Bloomberg reported. A recent pipeline expansion in Western Canada has opened up greater access to Alberta’s oilsands, allowing China and other East Asian buyers to secure supply without striking new deals with the US.

European markets opened on a weak note Thursday as investors awaited the European Central Bank’s latest monetary policy decision.

The pan-European Stoxx 600 index slipped 0.37% in early trade, with most sectors in the red.

Germany’s DAX bucked the trend with a modest 0.25% gain, lifted by a 10% jump in Siemens Energy shares after the company upgraded its fiscal 2025 outlook. In contrast, shares of French luxury house Hermès fell 3.4% after it narrowly missed sales expectations, despite recently overtaking LVMH to become the world’s most valuable luxury firm.

All eyes are on the ECB, which is widely expected to announce its third rate cut of the year in a bid to counter slowing economic momentum in the euro zone. A 25-basis-point cut would bring the central bank’s key deposit rate down to 2.25%.

(From CNBC)

Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey on Thursday spoke on the role of corporate governance in maintaining market integrity and investor confidence, stating that good governance is “a necessity, not just a best practice.”

Speaking at at CII 18th Corporate Governance Summit, 2025, Pandey said SEBI is “keenly engaged in enhancing the standards of corporate governance” across the board. He noted that the framework has significantly evolved over the past two decades, driven by the need to align with global standards and adapt to the growing complexity of Indian capital markets.

“Governance failures in large corporates can have ripple effects across markets,” Pandey cautioned, emphasising the systemic risks posed b`y lapses in ethical and operational oversight.

Highlighting SEBI’s long-term vision, he said the regulator aims to foster a self-regulating environment that naturally encourages ethical behaviour and responsible conduct within companies.

“The ultimate goal is to build a culture where good governance is ingrained in corporate DNA and not merely compliance-driven,” he added.

Gold prices surged to a new all-time high for the second consecutive session on Thursday, touching Rs 95,935 per 10 grams on the Multi Commodity Exchange (MCX), as investor demand for safe-haven assets remained strong.

The June delivery contract rose by Rs 274 in early trade before easing slightly to Rs 95,750, still up ₹89 or 0.09%, with open interest at 22,403 lots. This follows Wednesday’s record of Rs 94,781 per 10 grams.

The rally is being fuelled by persistent global uncertainties, including US trade tensions and a weakening dollar, which have dampened investor appetite for greenback and US Treasury assets.

In global markets, gold futures hit a fresh peak of $3,371.89 per ounce in New York before paring gains to $3,340.61.

Online travel platform EaseMyTrip on Thursday clarified that it has no direct or indirect links to the Mahadev betting app or any other betting platform, following Enforcement Directorate (ED) raids at the premises of its co-founder Nishant Pitti.

The ED on Wednesday carried out searches across 55 locations in multiple states, including the residence and office of 39-year-old Pitti in Delhi, as part of an ongoing money laundering probe linked to the Mahadev online betting network.

The coordinated raids also covered locations in Mumbai, Chandigarh, Ahmedabad, Indore, Jaipur, Chennai and Sambalpur (Odisha), and were triggered by fresh leads in the high-profile case, according to officials.

In an official statement, a spokesperson for EaseMyTrip said, “As per information available in the public domain, the ED conducted searches at over 50 locations of various persons/ corporates. Amongst them one was EaseMyTrip premises.”

(From PTI)

Chinese President Xi Jinping, during his Southeast Asia tour, made a renewed pitch for regional solidarity, urging Asian nations to stand together in the face of growing geopolitical tensions.

Speaking at a state dinner in Malaysia’s Putrajaya on Wednesday, Xi called for unity against “bloc-based confrontation,” as the US, under President Donald Trump, ramps up efforts to limit its allies’ trade ties with Beijing.

“China and Malaysia will stand with countries in the region to combat the undercurrents of geopolitical and bloc-based confrontation,” Xi said. “Together we will safeguard the bright prospects of our Asian family.”

The remarks appear aimed at countering the US-led push to isolate China economically and diplomatically through tighter trade alignments.

Goldman Sachs has warned that U.S. investors may be forced to offload up to $800 billion worth of Chinese equities in the event of an extreme financial decoupling between the U.S. and China.

In a note issued Wednesday, the brokerage said that around 7% of the market capitalisation of Chinese companies listed as American Depository Receipts (ADRs) is held by U.S. institutional investors. However, many of these investors may not be able to shift to Hong Kong markets if Chinese firms like Alibaba are involuntarily delisted from U.S. exchanges.

Currently, U.S. institutions hold about $250 billion in Chinese ADRs but only have $522 million exposure to Hong Kong equities, making a seamless transition unlikely.

"This means that such investors may not be able to go to the Asian financial hub to buy shares if companies like Alibaba face an involuntary delisting from the US," Goldman Sachs noted.

Tensions remain high as trade negotiations between the two nations stall. While President Donald Trump insists China must initiate talks, Beijing has demanded "respect" and a designated U.S. point person before returning to the negotiating table.

Taiwan Semiconductor Manufacturing Company (TSMC) reported strong first-quarter results on Thursday, surpassing profit expectations, driven by robust demand for AI chips.

Here are the key figures for TSMC's first-quarter performance versus LSEG consensus estimates:

• Revenue: NT$839.25 billion (vs. NT$835.13 billion expected)
• Net Income: NT$361.56 billion (vs. NT$354.14 billion expected)

TSMC’s net income surged 60.3% year-on-year, reaching NT$361.56 billion, while revenue for the quarter grew 41.6% from the previous year, totaling NT$839.25 billion. The company also reported a 10% revenue increase in March compared to February.

As the world’s largest contract chip manufacturer, TSMC has benefited from the AI boom, producing advanced processors for clients like Nvidia. However, it faces challenges from U.S. trade policies, including tariffs and stricter export controls on its key clients, Nvidia and AMD.

The Biden's administration's "AI diffusion rules" could further limit sales of chips produced by TSMC. Additionally, Taiwan currently faces a 10% tariff under President Trump’s trade policies, which could rise to 32% unless a deal is reached.

In response to these challenges, TSMC has been investing heavily in overseas production facilities, including plans to invest an additional $100 billion in U.S. plants. Despite this, the majority of TSMC’s manufacturing remains in Taiwan.

Shares of TSMC, which have dropped about 20% this year, were down 0.4% in Taiwan-listed trading on Thursday.

(From CNBC)

European markets are poised for a negative start on Thursday as traders await the European Central Bank’s latest monetary policy decision.

The UK’s FTSE 100 is expected to open 39 points lower at 8,230, Germany's DAX down by 48 points at 21,255, France's CAC to drop 38 points to 7,289, and Italy's FTSE MIB set to decline by 97 points, landing at 35,061, according to data from IG.

All eyes will be on the ECB's upcoming announcement, with the central bank widely anticipated to reduce interest rates for the third time this year. The expected quarter-point cut would lower the deposit facility rate to 2.25%, reflecting growing concerns over the euro zone’s economic growth amid ongoing global trade and tariff uncertainties.

Additionally, earnings reports are expected from major companies, including ABB, OVH, Pernod Ricard, Hermes, Deliveroo, Sainsbury's, Forvia, and L'Oreal.

Japan reported a 3.9% increase in exports for March compared to the same period last year, following an 11.4% rise in February. The growth, however, missed economists' expectations of a 4.5% increase.

Exports to the Middle East saw the largest jump, rising 17.1%, while shipments to the U.S. grew by 3.1%.

The March data does not fully reflect the impact of U.S. tariffs, including the 25% tariffs on auto imports imposed on April 3. Trump has, however, suspended the 24% “reciprocal” tariff on Japan for 90 days.

Japan is also in ongoing trade negotiations with the U.S., with Trump highlighting progress in a recent post. The talks will address tariffs, military support costs, and trade fairness.

The uncertainty surrounding U.S. President Donald Trump's recent trade actions has heightened concerns within the Eurozone, leading to calls for the European Central Bank (ECB) to ease borrowing costs further.

While inflation in the euro area has cooled, with rates moving closer to the ECB’s 2% target, the renewed trade tensions sparked by Trump's announcement of new tariffs have reignited worries about economic growth. The ECB has already reduced its benchmark deposit rate by 1.5 percentage points since June 2024, bringing it down from 4% to 2.5% in a series of quarter-point cuts.

(From Reuters)

IDFC First Bank shared its optimistic outlook for the next phase of growth, stating that it expects significant improvement in profits. The bank emphasized that it will not post any losses in the near future.

“The next phase of growth will be much better, and profit will only improve. The bank will not post a loss in any quarter or year in the near future,” the bank said.

Discussing the quality of its investors, the bank highlighted the credibility of its investors, Warburg Pincus and ADIA. “Warburg & ADIA are quality global names and invest in companies with good corporate governance,” the bank noted.

The bank outlined its strategic phases, with Phase 1 focused on establishing the bank, and Phase 2 aiming at operating leverage, profit growth, and return on equity. “Phase 1 was about setting up of the bank. Phase 2 for the bank will be about operating leverage, profit & return on equity,” it added.

Gold prices edged lower on Thursday as investors took profits following an all-time high earlier in the session, driven by escalating tensions over chip sales restrictions to China and tariff uncertainties. Spot gold slipped 0.1% to $3,339.37 an ounce after reaching a record $3,357.40, marking a 3% gain this week. U.S. gold futures also rose 0.2% to $3,351.50.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, stated, "Everything is going gold's way, propelling prices to fresh record highs," adding that despite pullbacks, gold remains poised for further gains amid ongoing trade turbulence.

U.S. President Donald Trump’s probe into potential new tariffs on critical minerals, along with tensions over chip and pharmaceutical imports, continued to fuel demand for gold. The U.S. dollar hovered near a three-year low, enhancing gold's appeal to other currency holders.

Gold has surged more than 27% this year, with analysts maintaining a bullish stance despite potential pullbacks. Meanwhile, spot silver, platinum, and palladium also saw declines.

(With inputs from Reuters)

IDFC First Bank, in a conversation with CNBC-TV18, discussed its recent fundraise and the strategic involvement of Warburg Pincus and Platinum Invictus.

"Warburg Pincus has invested in the bank, Platinum is a subsidiary of ADIA," the bank stated. "The bank needed capital, hence, we reached out to them."

The bank highlighted the strong track record of its investors: "Warburg & ADIA made money last time they invested, hence they were keen on coming back."

Regarding the impact of the fundraise, the bank mentioned, "Issuance of shares will lead to a dilution of around 15%."

Looking ahead, the bank is optimistic about its growth trajectory: "The bank has a strong operating profit model. The next phase of growth will be much better, and profit will only improve."

IDFC First Bank has approved a fundraise of up to Rs 7,500 crore through a preferential issue to two marquee investors, Currant Sea Investments, an affiliate of Warburg Pincus, and Platinum Invictus, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

As per the board's approval, the bank will allot 81.26 crore compulsorily convertible preference shares (CCPS) at Rs 60 per share to Currant Sea Investments, amounting to approximately Rs 4,876 crore. Additionally, 43.71 crore CCPS will be issued to Platinum Invictus at the same price.

Currant Sea Investments will also have the right to nominate one non-executive director to IDFC First Bank’s board, as part of the deal.

Egypt’s revenue from the Suez Canal plunged nearly 60% in 2024 as ongoing regional conflicts and Houthi-led attacks on maritime vessels disrupted one of the world’s busiest trade routes.

According to the Suez Canal Authority, annual revenue dropped to $3.99 billion—less than half of the record $10.25 billion earned in 2023. The authority cited ongoing tensions in the Middle East, particularly the war in Gaza and Houthi strikes in the Red Sea, as major causes of the decline.

Since November 2023, Yemen’s Iran-backed Houthi rebels have attacked over 100 commercial vessels with drones and missiles, targeting ships bound for Israel. Two vessels were sunk and four sailors killed. The rebels have vowed to continue the assaults as long as the war in Gaza persists.

The Suez Canal, which typically facilitates around 10% of global trade, remains a vital source of foreign currency for Egypt, making the sharp revenue drop a major economic blow.

Wipro Chief Executive Officer has acknowledged ongoing uncertainty in the market, expressing hope that discretionary spending by clients will resume in the coming months. Speaking to CNBC-TV18, the CEO noted delays in the start of new projects and discretionary spends, attributing them to macroeconomic uncertainty.

“Majority of the deals currently are aimed at cost optimisation, and we expect that trend to continue,” the CEO said, adding that the company has seen a significant uptick in large deal wins and is now focused on converting its strong deal pipeline into actual wins in the first quarter.

Strong execution helped the company maintain its operating margin in the fourth quarter, supported by improved productivity in fixed-price projects and better profitability from acquired entities, the CEO told CNBC-TV18.

China’s Foreign Ministry has dismissed U.S. claims on steep tariff rates, saying it won’t engage in a “tariff numbers game,” after the White House outlined duties on Chinese goods totaling up to 245%.

The U.S. fact sheet included a 125% reciprocal tariff, 20% to combat the fentanyl crisis, and up to 100% on certain goods over alleged unfair trade practices. China responded with its own levies but ruled out talks unless held on “mutual respect and equality.”

Beijing also filed a WTO complaint accusing the U.S. of breaking global trade rules. In a surprise move, it replaced top trade negotiator Wang Shouwen with WTO envoy Li Chenggang.

Washington maintains President Trump is open to a deal, if China makes the first move, adding that Beijing needs “our money.”

(With inputs from Reuters)

Chinese fast fashion giants Temu and SHEIN announced they will raise prices for US shoppers starting April 25, citing rising operating costs due to new tariffs.

Both firms had long benefited from the "de minimis" trade provision, which exempts low-value imports (under $800) from duties. But with tariffs on all Chinese goods now surging to 145%, that loophole no longer offers relief.

In a statement, SHEIN said it’s working to “minimize the impact on customers” and “stay true to our mission of making fashion accessible.”

(From First Coast News)

GIFT Nifty Points to Weak Start for Indian Markets

GIFT Nifty was trading lower, indicating a likely gap-down opening for Indian equities amid global risk-off sentiment.

Europe Slips Off Highs; Ends With Modest Gains

European indices gave up most gains in the final hours of trade, finishing marginally higher as investors weighed trade war risks.

Asia Opens Strong; Nikkei Leads Early Gains

Asian markets traded higher in early Thursday trade. Japan’s Nikkei remained firmly in the green, tracking overnight movement in US futures.

US Treasury Yields Dip After Retail Data and Powell’s Remarks

The 10-year US Treasury yield slipped slightly after strong retail data and Powell’s comments on tariffs sparked bond buying.

Oil Prices Jump Above $65 as US Sanctions Hit Chinese Firms

Crude prices rose after the US sanctioned Chinese importers of Iranian oil, further tightening global supply concerns.

Gold Soars to Record High on Safe-Haven Demand

Gold breached $3,300/oz, hitting a new record as investors flocked to safe-haven assets amid rising US-China tensions.

The CBOE Volatility Index jumped 8%, signaling rising market unease amid geopolitical tensions and uncertainty around global supply chains.

Federal Reserve Chair Jerome Powell warned of “difficult trade-offs” as the US navigates inflation control and the growing impact of a renewed trade war with China.

Fears over escalating tariffs sent semiconductor stocks tumbling. ASML dropped more than 5% as investors priced in potential disruption to the global chip supply chain.

US futures were trading higher early Thursday despite Wall Street closing lower for the second consecutive session. The tech-heavy Nasdaq dropped over 3%, weighed down by chipmakers.

Fed Chair Jerome Powell has warned of “tough trade-offs” as tariff fallout complicates inflation control. Bond yields slipped on Powell’s remarks and strong US retail data, signaling cautious investor sentiment.

Oil prices are climbing again, crossing $65/bbl, after the US slapped new sanctions on Chinese firms importing Iranian crude. Meanwhile, gold surged past $3,300/oz as safe-haven demand intensified—clear signs that markets are bracing for deeper disruption.

The trade battle isn’t just about tariffs. China is playing a more strategic game, tightening its grip on rare earth exports, a sector where it holds near-total dominance. These 17 minerals are essential for EVs, defense tech, and electronics, yet difficult and dangerous to extract.

By imposing licensing requirements on the export of seven heavy rare earths, Beijing is hitting the US where it hurts most, its military-industrial backbone. The US depends on China for 70% of these critical imports. Now, with rising geopolitical heat, that supply chain lifeline looks shaky.

The Trump administration is scrambling to boost domestic production, but experts warn, as cited by BBC, that developing self-reliance would require years of investment and infrastructure.

Markets are swinging wildly as fears of a renewed US-China trade war intensify. Wall Street extended its losing streak, with the Nasdaq plunging over 3% amid heavy selling in tech and semiconductor stocks. Nvidia sank nearly 7% after Washington tightened chip export rules to China, a move expected to cost the company $5.5 billion.

European markets closed with modest gains after losing steam late in the session, while Asian markets opened in the green. However, GIFT Nifty signals a gap-down open for Indian equities, reflecting the cautious global mood. Meanwhile, the CBOE Volatility Index jumped 8%, highlighting the growing investor unease.

From Wall Street sell-offs to Beijing’s rare earth chess moves, the global economy is moving fast and breaking things. Our new business blog cuts through the noise to bring you sharp takes, real-time cues, and deep dives into the forces reshaping markets, from tech crackdowns to tariffs, from oil sanctions to supply chain risks. Whether you're tracking the next Fed signal or China's next retaliatory move, we’ve got you covered.

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