Category Archives: economy

economy, interest rates, monetary policy, politics, trade

RBI should opt for 25bps repo rate cut, says SBI

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**RBI Should Opt for 25bps Repo Rate Cut, Says SBI**

*By Dwaipayan Roy | Sep 28, 2025, 04:49 pm*

A recent report by the State Bank of India (SBI) has recommended a 25 basis points (bps) cut in the repo rate for the upcoming Reserve Bank of India (RBI) monetary policy meeting. This suggestion comes amid expectations of benign inflation. However, most economists anticipate that the Monetary Policy Committee (MPC) will likely maintain the status quo when it announces its decision on October 1.

**Rate Reduction Considered the Best Option**

The SBI report described a 25bps rate cut as the “best possible option” for the RBI. This recommendation follows the central bank’s earlier actions, where it slashed the key short-term lending rate (repo) by 100bps in three installments since February, prompted by a decline in consumer price index (CPI)-based inflation.

Despite this, some experts believe the MPC may choose to maintain the current stance during its upcoming policy review meeting.

**Upcoming MPC Meeting**

The MPC, headed by RBI Governor Sanjay Malhotra, will convene for a three-day meeting from October 1 to 3 to discuss the policy rate. The meeting takes place amid ongoing geopolitical tensions and the US imposing 50% tariffs on Indian shipments.

In its August bi-monthly monetary policy review, the central bank opted to keep rates on hold while assessing how these external factors might impact India’s economy.

**Expectations and Analyst Views**

Aditi Nayar, Chief Economist at ICRA, noted that GST rationalization could lower headline CPI inflation by 25-50bps during Q3 FY2026 and Q2 FY2027. She also expects October-November 2025 to bring a new low in CPI inflation, though anticipates an upward trend thereafter.

Dharmakirti Joshi of Crisil Limited expects a repo rate cut as early as October, driven by lower-than-expected inflation and robust demand.

As the MPC meeting approaches, market watchers will keenly observe how these factors influence the RBI’s policy stance.
https://www.newsbytesapp.com/news/business/sbi-recommends-25bps-repo-rate-cut-for-upcoming-rbi-mpc/story

diplomacy, economy, international relations, politics, security

UN reimposes sanctions on Iran after nuclear talks collapse

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**UN Reimposes Sanctions on Iran After Nuclear Talks Collapse**
*By Snehil Singh | Sep 28, 2025, 03:05 PM*

The United Nations has reimposed sweeping sanctions on Iran, a decade after they were first lifted. This move follows the collapse of nuclear negotiations between Iran and Western powers. The newly reinstated sanctions prohibit transactions related to Tehran’s nuclear and ballistic missile programs and are expected to have a broader impact on Iran’s already struggling economy.

### Diplomatic Efforts and Calls for Dialogue

US Secretary of State Marco Rubio has urged Iran to “accept direct talks, held in good faith” and called on UN member states to “immediately” implement the sanctions. Meanwhile, the foreign ministers of Britain, France, and Germany reaffirmed their commitment to pursuing a diplomatic solution aimed at preventing Iran from acquiring nuclear weapons. They also urged Tehran to “refrain from any escalatory action.”

### Iran’s Response and Failed Attempts to Delay Sanctions

Although Iran has permitted UN inspectors back into its nuclear sites, President Masoud Pezeshkian rejected a US proposal for a temporary pause in nuclear activity in exchange for handing over the country’s entire stockpile of enriched uranium. An effort by Russia and China to postpone the sanctions implementation until April was unsuccessful.

Germany, along with the UK and France, which spearheaded the sanctions, stated it had “no choice” but to act given Iran’s non-compliance with its international obligations.

### Diplomatic Fallout

Russia has refused to enforce the sanctions, labeling them invalid. Russian Foreign Minister Sergei Lavrov claimed the sanctions “finally exposed the West’s policy of sabotaging the pursuit of constructive solutions.” In reaction to the renewed sanctions, Iran recalled its ambassadors from the UK, France, and Germany for consultations.

### Economic Impact of the Renewed Sanctions

The reinstated sanctions are already affecting Iran’s economy. According to Iranian engineer Dariush, the exchange rate is soaring and prices are climbing. On Saturday, the US dollar reached a record high of approximately 1.12 million rials on the black market.

Despite these challenges, the Brussels-based think tank International Crisis Group noted that Iran appears dismissive of the sanctions, having already adapted to previous US restrictions.

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The situation remains tense as the international community monitors developments closely, hoping for a diplomatic resolution to avoid further escalation.
https://www.newsbytesapp.com/news/world/sweeping-un-sanctions-hit-iran-as-nuclear-negotiations-completely-collapse/story

business, economy, food and beverage, retail

Greggs has expanded far too fast, claim critics

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Greggs is a staple of the High Street, serving up a diet of affordable pastries, sandwiches, and sweet treats. However, a series of profit warnings has knocked the stuffing out of the bakery chain’s share price, which has halved in the past year, leaving investors queasy ahead of this week’s trading update.

The latest alarm was sounded in the summer when chief executive Roisin Currie blamed the hot weather for stifling customers’ appetite for steak bakes and sausage rolls, both vegan and meat varieties.

Despite the setbacks, Greggs is pushing ahead with ambitious expansion plans. Up to 150 new stores are set to have opened by the end of this year as part of a wider drive to hit a total of 3,000 outlets. Greggs has also been extending opening hours across its stores and has rolled out more evening meals, including pizzas, chicken goujons, and hot baguettes.

In a new venture, Greggs opened its first pub yesterday in the Fenwick department store in Newcastle upon Tyne, serving local beers alongside 15 Greggs-inspired dishes.

“Questions as to whether Greggs has expanded too far, too fast and made its menu too complicated have added to wider worries over the state of the UK economy,” said Russ Mould, investment director at stockbroker AJ Bell.

The high street baker was a clear winner during the cost-of-living crisis, overtaking McDonald’s as Britain’s most popular breakfast venue. However, like other retailers, it has been hit by rising costs, especially from the employer National Insurance increase in last year’s Budget.

“The broader consumer spending environment remains fragile,” said Aarin Chiekrie, equity analyst at the investment platform Hargreaves Lansdown. “While Greggs has relied on price increases to support like-for-like sales growth, the company must be careful not to stretch customer tolerance too far,” he added.
https://www.thisismoney.co.uk/money/markets/article-15139501/Greggs-expanded-far-fast-claim-critics.html?ns_mchannel=rss&ns_campaign=1490&ito=1490

diplomacy, economy, international relations, politics, trade

Trump says Ireland and US will ‘work closely’ as new embassy opens in Washington

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US President Donald Trump expressed his eagerness to “work closely” with Ireland to strengthen the long-standing relationship between the two nations.

This announcement coincided with Tanaiste Simon Harris formally opening the new offices of the Irish Embassy in the United States, located in Washington, DC. The new Embassy, situated on Pennsylvania Avenue next to the White House, was warmly welcomed by President Trump, who emphasized his commitment to advancing fair trade policies and investment opportunities that benefit the citizens of both countries.

Speaking in Washington, DC, the Tanaiste and Minister for Foreign Affairs and Trade said:
“I want to thank President Trump for his kind words as we begin to write the next chapter in the great story of Ireland-US relations. These offices at 1700 Pennsylvania Avenue, next to the White House, represent the culmination of a nearly four-year project to realize a significant commitment of the Global Ireland Strategy and National Development Plan.”

He continued, “This will be an excellent base from which to grow our vital political, economic, and cultural ties with the US over the years ahead. Our ambition stretches beyond Washington, DC too. The Government has deepened its investment in our diplomatic platform across the United States recently, with new Ireland Houses in New York, San Francisco, and Chicago, as well as new Consulates in Los Angeles and Miami.”

Mr. Harris also announced the launch of an economic impact report that maps Ireland’s economic footprint across the US. The report highlights the remarkable impact of the Ireland-US partnership in trade, employment, research, tourism, and investment.

Ireland is now the 5th largest source of foreign direct investment in America, with Irish companies creating more than 200,000 American jobs.

This growing collaboration promises a continued strengthening of ties and mutual prosperity between Ireland and the United States.
https://www.breakingnews.ie/ireland/trump-says-ireland-and-us-will-work-closely-as-new-embassy-opens-in-washington-1811131.html

economy, international relations, manufacturing, politics, trade

Trump imposes 100 pc tariff on imported drugs without US manufacturing base

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Former President Donald Trump has clarified the scope of his recent tariff measures, stating that companies that have already begun construction of plants in the U.S. will be exempt from the new pharmaceutical tariffs. In a post, he wrote, “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”

Trump also announced sweeping tariffs on a variety of household products, including imported kitchen cabinets and certain types of furniture, potentially adding to the rising costs in this category seen in recent months. According to CNN, Trump detailed the new tariffs in a Truth Social post, stating:

“We will be imposing a 50 percent Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025. Additionally, we will be charging a 30 percent Tariff on Upholstered Furniture.”

These tariffs come amidst a notable increase in furniture prices over the past year. Data from the Bureau of Labor Statistics (BLS) shows that overall furniture costs rose 4.7 percent compared to August 2024. Specifically, living room and dining room furniture prices jumped 9.5 percent over the last 12 months.

The surge in furniture prices is closely linked to recent tariff hikes on imports from China and Vietnam, the two largest sources of imported furniture into the U.S. Last year, both countries exported approximately USD 12 billion worth of furniture and fixtures, according to data from the U.S. Commerce Department. Notably, furniture prices had generally declined for about two and a half years before these tariffs were introduced.

Trump defended the tariffs, arguing that foreign manufacturers have been oversupplying the U.S. market. He described the large-scale “flooding” of products from other countries as “a very unfair practice,” emphasizing the need to protect U.S. manufacturing for national security and other reasons.

Meanwhile, new tariff rates affecting dozens of countries were introduced in August, following delays that allowed time for trade negotiations. These include:

– 50 percent tariffs on Indian goods, with an additional 25 percent penalty for trade related to Russia
– 50 percent tariffs on Brazilian goods
– 30 percent tariffs on South African goods
– 20 percent tariffs on Vietnamese goods
– 15 percent tariffs on Japanese goods
– 15 percent tariffs on South Korean goods

*This story has been sourced from a third-party syndicated feed and agencies. Mid-day accepts no responsibility or liability for the dependability, trustworthiness, reliability, or accuracy of the content. Mid-day management and mid-day.com reserve the sole right to alter, delete, or remove content at their absolute discretion and without prior notice.*
https://www.mid-day.com/news/world-news/article/donald-trump-announces-100-per-cent-tariff-on-imported-pharmaceuticals-without-us-based-manufacturing-plants-23595880

agriculture, commodity, developments, economy, markets

Hogs Close with Mixed Trade Ahead of Bullish Hogs & Pigs Report

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Lean hog futures closed Thursday’s session with nearby contracts up 30 to 67 cents, while back months gained between 10 and 67 cents. USDA’s national base hog price from the Thursday PM report was down 17 cents from the day prior, settling at $104.50. The CME Lean Hog Index was up 10 cents on September 23, closing at $105.00.

The USDA’s National Agricultural Statistics Service (NASS) released their quarterly Hogs & Pigs report this afternoon. The September 1 inventory was reported at 74.472 million head, down 1.35% from last year and well below estimates that had predicted a slight increase. Hogs kept for breeding saw a decrease of 1.82%, totaling 5.934 million head—also below estimates. Market hog inventory declined by 1.31% compared to last year, falling to 68.538 million head.

In export news, USDA reported pork sales totaling 29,402 metric tons (MT) for the week ending September 18, marking a four-week high. The largest buyer was Mexico, purchasing 10,000 MT, followed by South Korea at 4,900 MT and Japan at 3,800 MT. Pork shipments for the week were recorded at 29,297 MT, down from the previous week. Mexico remained the top destination with 13,100 MT shipped, while Japan and China received 3,600 MT and 2,800 MT respectively.

USDA’s FOB plant pork cutout report from Thursday afternoon showed a decline of 64 cents, closing at $110.99 per hundredweight (cwt). However, ham and belly primals were the only cuts reported higher.

Federal hog slaughter for Thursday was estimated at 490,000 head, bringing the weekly total to 1.939 million head. This total is down 1,000 head from the previous week but 3,906 head above the same week last year.

October 2025 lean hog futures closed at $100.10, up 67.5 cents. December 2025 closed at $88.63, up 50 cents, while February 2026 closed at $89.93, up 30 cents.

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*Don’t miss a day of market insights: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.*

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**Disclosure:** On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the [Barchart Disclosure Policy](#). The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/hogs-close-mixed-trade-ahead-bullish-hogs-pigs-report

business, economy, government, industry, trade

‘Everything from chip to ship’: PM Modi calls for boost to Atmanirbhar Bharat

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**PM Modi Calls for Boost to Indigenous Production Across Sectors at UP International Trade Show 2025**

Prime Minister Narendra Modi has called for a significant boost to indigenous production across various sectors, emphasizing the importance of building a ‘Swadeshi’ economy. Speaking at the inauguration of the Uttar Pradesh International Trade Show-2025 (UPITS-2025) on Wednesday, PM Modi assured stakeholders that the government stands shoulder-to-shoulder with them in this journey.

Highlighting the government’s commitment to ease of doing business, the Prime Minister noted that several unnecessary compliances have been removed to help businesses thrive in India. “The government is putting a strong emphasis on Make in India manufacturing. We want everything from chip to ship to be manufactured in India; for this, we are focusing on your ease of doing business,” he said.

PM Modi further elaborated on the reforms, stating, “The government abolished more than 40,000 compliances, and more than a thousand laws were decriminalised. We are standing with you shoulder-to-shoulder,” addressing the business fraternity and traders present at the event.

Despite global disruptions and uncertainties, the Prime Minister expressed confidence in India’s growth potential. “Disruptions don’t hinder us, but even in those circumstances, we look for new directions. Amid all these disruptions, India is strengthening the foundations for the coming decades. Our resolve and mantra is Atmanirbhar Bharat. Nothing can be more helpless than being dependent on others. The more a country stays dependent on others, the more its growth is going to stay compromised,” he added.

PM Modi also stressed the importance of maintaining quality in indigenous products. “Every citizen is adopting Swadeshi, ‘Garv se kaho hum swadeshi hai’. Our traders will have to proudly adopt this mantra,” he said. He called for creating an ecosystem that gives special emphasis to Swadeshi designs, while urging private investment in research and innovation. “Without innovation, the world stops, businesses halt,” he remarked.

### About the Uttar Pradesh International Trade Show 2025

The trade show, held from September 25 to 29, carries the theme “Ultimate Sourcing Begins Here” and focuses on three core objectives: innovation, integration, and internationalisation. UPITS-2025 aims to connect international buyers, domestic Business-to-Business (B2B) buyers, and domestic Business-to-Consumer (B2C) buyers through a three-pronged buyer strategy, offering opportunities for exporters, small businesses, and consumers alike.

This platform will showcase Uttar Pradesh’s diverse craft traditions, modern industries, robust MSMEs, and emerging entrepreneurs. Key sectors represented at the event include handicrafts, textiles, leather, agriculture, food processing, IT, electronics, and AYUSH, among others. The trade show will also celebrate the state’s rich art, culture, and cuisine under one roof.

Adding strategic significance, Russia will participate as a partner country, facilitating new avenues for bilateral trade, technology exchange, and long-term cooperation.

The event expects participation from over 2,400 exhibitors, approximately 125,000 B2B visitors, and about 450,000 B2C visitors.

*(With inputs from ANI)*
https://www.mid-day.com/news/india-news/article/everything-from-chip-to-ship-pm-modi-calls-for-boost-to-atmanirbhar-bharat-manufacturing-23595743

business, economy, employment, regional development, technology

Accenture plans to create 12,000 jobs in Andhra Pradesh

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**Accenture Plans to Create 12,000 Jobs in Andhra Pradesh**

*By Dwaipayan Roy | Sep 23, 2025, 08:02 PM*

Accenture, a leading global technology consultancy firm, has proposed the establishment of a new campus in Andhra Pradesh as part of its strategy to expand its workforce in India by approximately 12,000 employees. This initiative aligns with similar expansions by other major IT firms such as Tata Consultancy Services (TCS) and Cognizant, supported by a new state policy offering land at a highly subsidized rate of just ₹0.99 per acre for companies committed to job creation.

**Proposal Details**

Accenture has requested around 10 acres of land in Visakhapatnam under the terms of this policy. The proposal is currently under review by the Andhra Pradesh government. India already serves as Accenture’s largest employee base globally, with over 300,000 of its 790,000 worldwide employees based in the country.

**Government Response**

An official from the Andhra Pradesh government expressed enthusiasm about bringing Accenture to the state. Although the approval process may take some time, the official indicated that the proposal is reasonable and expected to be approved soon. The statement was given on the condition of anonymity.

**Investment and Comparisons**

While the exact investment amount Accenture intends to make has yet to be disclosed, precedent exists with TCS and Cognizant, which have secured land leases under the same policy for campuses projected to generate around 20,000 jobs in Visakhapatnam. Cognizant is investing $183 million, and TCS has allocated just over $154 million for its new facility.

**Trend Toward Expansion in Tier-2 Cities**

The expansion of major tech firms into tier-2 Indian cities reflects a growing trend driven by cost advantages such as lower land prices, rent, and wage expenses. Post-pandemic shifts have also made it easier for companies to hire local talent in these smaller cities, reversing the earlier pattern of workers migrating to large tech hubs.

With Andhra Pradesh emerging as a key destination for IT investments, Accenture’s proposed campus is expected to significantly boost employment and contribute to the region’s growing prominence in India’s technology landscape.
https://www.newsbytesapp.com/news/business/accenture-seeks-land-in-ap-for-new-campus/story

domestic politics, economy, immigration, international affairs, politics

H-1B visa fee hike driven by Trump`s domestic politics: Tharoor

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Days after United States President Donald Trump signed a proclamation mandating a USD 100,000 fee for each new H-1B visa petition filed after September 21, Congress leader and Member of Parliament Shashi Tharoor criticised the move, calling it an attempt to appease Trump’s “so-called MAGA” supporters, reported ANI.

Speaking to ANI on Monday, Shashi Tharoor stated that the sudden surge in H-1B visa fees is driven by domestic political considerations in the US. Trump aims to rally support from his anti-immigration base ahead of the upcoming US legislative elections scheduled for November. “Once again, the motivations are primarily rooted in domestic politics,” Tharoor said.

Trump believes—as those around him have convinced him—that the ease of obtaining an H-1B visa has allowed many American workers, who merit higher wages, to be overlooked in favour of Indians willing to work for less, Tharoor told ANI.

Linking the policy shift to broader political sentiment in the US, Tharoor noted, “At present, the dominant political current within the so-called MAGA movement is overtly anti-immigration, particularly targeting visible minorities—individuals of different ethnic backgrounds who are not part of the white mainstream.”

The former Union minister added that Trump’s supporters perceive Indian professionals as undercutting the wages of American workers by accepting lower pay. “An Indian tech worker earning sixty thousand dollars annually is, in the eyes of Trump’s backers, displacing an American who would refuse to work for anything less than eighty-five to ninety thousand dollars,” Tharoor explained, according to ANI.

He further stated that only the top-tier, highly skilled, irreplaceable professionals—those genuinely worth the hundred-thousand-dollar cost to employers—will continue to be brought in.

Tharoor also warned that this policy might ultimately harm the US economy. “The natural outcome will be job outsourcing. Tasks once performed in America will now be handled by multinational units in Europe or by global capability centres in India,” he said.

He pointed out that Indian tech professionals might still perform the same tasks for American firms, just remotely from India rather than from within the US.

Expressing concern for Indian IT firms, Shashi Tharoor emphasized that the steep visa fee structure could render many contracts financially unfeasible. “We simply cannot afford to pay one hundred thousand dollars per person for a low-end contract,” he remarked.

(with ANI inputs)
https://www.mid-day.com/news/india-news/article/us-h-1b-visa-news-h-1b-visa-fee-hike-driven-by-donald-trumps-domestic-politics-shashi-tharoor-23595399

business, economy, financial markets, foreign policy

Dollar pullback to offer no relief with rupee caught in US crosswinds

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By Nimesh Vora

**MUMBAI, Sept 23 (Reuters)** – The Indian rupee is expected to remain under strain on Tuesday despite a dip in the dollar, with steep U.S. tariffs and visa fee increases denting sentiment towards the Asian currency.

The 1-month non-deliverable forward indicated the rupee will open marginally weaker from 88.3075 on Monday. At current levels, the rupee is only a shade away from the all-time low of 88.4550, marked two weeks back.

The rupee, already struggling under the weight of U.S. tariffs that are steeper than those faced by other Asian countries, is now contending with the fallout of President Donald Trump’s decision to raise H-1B visa fees for new applications. The move could weigh on India’s IT services sector, slow remittances, and dampen overall investor sentiment, leaving the currency vulnerable to further weakness.

DBS Bank noted that India was the largest recipient of overseas remittances in the world, with the U.S. share at about a third of the total. “We don’t expect any knee-jerk impact on this component, though steady tightening in work-related visas in the US might impact inflows,” it said.

The latest U.S. step adds to headwinds for the rupee, suggesting it may remain one of the weaker currencies in Asia in the near term, a currency trader at a Mumbai-based bank said.

The Reserve Bank of India will be watching closely and is expected to act to keep markets orderly, providing a buffer against big swings, he added.

**Dollar Retreats, Eyes on Fed**

The dollar struggled in trading in Asia on Tuesday, with traders weighing comments by members of the Federal Reserve for clues on the path of interest rates. The comments, which analysts said on balance leaned hawkish, came after the Fed cut rates last week and signaled two more cuts for the year.

Markets are now pricing in a very high probability that the Fed will follow last week’s move with another rate reduction in October.

**Key Indicators:**
– One-month non-deliverable rupee forward at 88.48; onshore one-month forward premium at 14 paise
– Dollar index down at 97.31
– Brent crude futures down 0.5% at $66.3 per barrel
– Ten-year U.S. note yield at 4.15%
– As per NSDL data, foreign investors bought a net $127.8 million worth of Indian shares on Sept. 21
– NSDL data shows foreign investors bought a net $69.2 million worth of Indian bonds on Sept. 21

— Reuters
https://www.livemint.com/market/stock-market-news/dollar-pullback-to-offer-no-relief-with-rupee-caught-in-us-crosswinds-11758596191311.html