Vanke, a major Chinese property developer, reported a substantial $6.8 billion loss in 2024 due to falling sales and shrinking profit margins. The company attributed the loss to overexpansion and high-debt practices. Revenue dropped 26%, and resignations of top executives added to the turmoil. Other developers like Kaisa and Country Garden also faced significant losses amid China's real estate crisis.
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Finance Minister Nirmala Sitharaman is set to present the first full Union Budget of the Modi 3.0 government on February 1, 2025. This will be her eighth consecutive budget, bringing her closer to Morarji Desai's record of ten. The budget aims to stimulate economic growth and provide relief to the middle class.
Employees in India can expect a 9.4% salary increase in 2025, driven by economic growth and high demand for skilled talent. The automotive sector leads with a projected 10% rise, while manufacturing and engineering follow closely. Voluntary attrition is anticipated to stabilize at 11.9%, and 37% of organizations plan workforce expansion to meet demand.
The Indian rupee fell to an all-time low of 85.24 against the US dollar due to rising US Treasury yields and a decrease in Asian currencies. Despite potential support from India's strong economic growth, the rupee is projected to continue a modest decline.
Wall Street and global markets plummeted after President Trump's announcement of new global tariffs, intensifying trade war fears. The S&P 500, Dow, and Nasdaq futures saw significant drops, while oil prices and the US dollar also fell. Economists warn that these tariffs could slow growth, increase inflation, and heighten economic uncertainty worldwide.
Car sales growth in India slowed to approximately 5% in 2024, the slowest in four years, due to urban market pressures. The industry sold about 43 lakh units, with SUVs making up 54% of sales. High car prices and affordability issues impacted demand. Despite this, Maruti Suzuki achieved its highest-ever annual sales, aided by rural market penetration.
Jefferies recommends a 10-12% increase in government capex in the 2025-26 Union Budget to maintain infrastructure development and boost stakeholder confidence. Despite a 16% rise in FY25 capex, actual spending lagged, requiring a 32% surge in the remaining months of FY25. Defence spending is projected to grow at a 7-8% CAGR, driven by domestic manufacturing and exports.
JSW Group will invest Rs 2,600 crore in the non-ferrous metals sector by starting copper mines in Jharkhand. This new venture by Sajjan Jindal's conglomerate follows their entry into the automobile sector. JSW will compete with the likes of Adani, Hindalco, and Vedanta in this field. Initial operations aim for a mining capacity of 3 million tonnes of ore.
The Reserve Bank of India (RBI) may use the cash reserve ratio (CRR) for regulatory intervention instead of liquidity management. The report by SBI suggests the CRR should be a countercyclical liquidity buffer, and a revision of RBI’s liquidity strategy and policy rate framework is needed.
Foreign portfolio investors are experiencing their worst annual equity selloff in FY25, with outflows reaching Rs 1.5 lakh crore. Most of the selloff has occurred in the secondary market, while domestic investors have responded with strong investments, achieving a record Rs 4.7 lakh crore in FY25. Despite net selling, FPIs remain buyers in the primary market.
Telangana Minister Duddilla Sridhar Babu requested Union Minister G Kishan Reddy to help establish a vaccine testing center in Genome Valley, Hyderabad. Currently, vaccines must be sent to Himachal Pradesh for testing, which is time-consuming and resource-intensive. Sridhar Babu emphasized the need for local testing facilities as promised by Prime Minister Narendra Modi post-COVID.