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PHDCCI President Hemant Jain has called on the Indian government to regulate cryptocurrency, citing the support of US President-elect Donald Trump as a positive influence. He also urged for the expansion of Production Linked Incentive schemes, a focus on artificial intelligence, and a reduction in personal income tax rates in the upcoming budget, while expressing concerns over global uncertainties affecting India's economy. Jain emphasized the need for sector-specific employment incentives and a reclassification of non-performing assets to support micro, small, and medium enterprises.
UBS economists warn that a 10% US tariff on Eurozone imports could significantly hinder growth, potentially reducing GDP by 0.28 to 0.43 percentage points, depending on Europe's response. The primary impact stems from declining exports, with inflation effects varying based on retaliation. If Europe does not retaliate, inflation remains subdued; however, retaliatory measures could increase consumer prices and the GDP deflator.
Stocks are currently viewed as expensive, yet optimism persists among investors, with banks like UBS suggesting that elevated valuations are justified. They cite four reasons: the tech-heavy composition of the S&P 500, increased cash flows, low borrowing costs, and the absence of recession risks, indicating a potential for continued market growth.
The UBS Billionaire Ambitions Report 2024 reveals that the number of billionaires has stagnated since 2021, despite their total wealth soaring to $14 trillion. Economic challenges, particularly in China, and rising tax burdens are prompting many billionaires to relocate, with Switzerland, the UAE, and Singapore being popular destinations. As geopolitical tensions rise, risk-taking billionaires are expected to drive advancements in generative AI and renewable energy, influenced by upcoming political changes in the U.S.
Bond markets are set to attract attention today as the U.S. Treasury conducts the first of three significant coupon auctions. This initiative aims to raise approximately $120 billion, highlighting the ongoing activity in the financial sector.
The global airline industry is projected to achieve a net income of $36.6 billion in 2025, with a record 5.2 billion passengers expected to travel. This marks a 16% increase from 2024, driven by lower oil prices and rising demand, despite potential challenges from tariffs and trade wars. Profit margins are anticipated to rise to 3.6%, up from 3.3% in the previous year.
Xi Jinping has reaffirmed China's commitment to achieving a 5% GDP growth target this year, positioning the country as a key driver of global economic expansion. Following a shift in monetary policy aimed at addressing weak consumption and deflation, Chinese stocks saw initial gains, while bond yields hit record lows. As trade data reveals a decline in imports and modest export growth, investors await further government measures to stimulate domestic demand amid ongoing economic challenges.
France is urged to continue its efforts to reduce debt and deficit, as emphasized by European Economics Commissioner Valdis Dombrovskis. With the formation of a new government underway, discussions will focus on the country's medium-term fiscal structural plan, which has received a positive assessment from the Commission. Dombrovskis highlighted the importance of maintaining a credible downward trajectory for the budget deficit and public debt.
Job vacancies in the United Kingdom have declined more rapidly than in comparable countries over the past year, according to recruitment platform Indeed. This trend signals a potential loss of momentum in the British economy during the latter half of the year.
Chinese leaders have issued one of their most dovish statements in over a decade, indicating a readiness to implement necessary stimulus measures to mitigate the anticipated effects of U.S. trade tariffs on the country's economic growth in the coming year.

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