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The Bank of the Indian Reserve Bank outside its headquarters in Mumbai on February 7, 2025.
Indranil Mukherjee | AFP | Getty images
On Friday, the Bank of the India Reserve cut its repo rate at 25 basic points. A previous day, the Bank of England reduced interest rates at 25 basic points, after the cut of the same European bank of the same amount on January 30.
Many economies seem to be establishing in a low rate environment as policy formulators seek to boost economic growth. That is in marked contrast with the United States: it is not clear if the United States Federal Reserve would even comply with its two rates cuts in 2025, predicted in December, given the uncertainties on the economic impact of the policies of the president of the president of the president of the president of the United States, Donald Trump. In addition, Trump seems to have backed up applying pressure on the Fed.
Before the inauguration of Trump, the US dollar began to strengthen and will reach its highest level in more than two years, measured by the US dollar index. That has already affected companies like Amazon, who blamed the currency for weighing their expected income in the current quarter.
The United States could have an advantage over other economies and stock markets for now, but an advantage can cut into both directions.
India’s first rate cut in almost five years
He Reserve Bank of India reduced its repository rate at 25 basic points Up to 6.25%, Governor Sanjay Malhotra said in a live direction Friday. The measure, which economists expected, was the first time in almost five years, the Central Bank has reduced rates. The RBI predicted real economic growth to reach 6.4% for the current fiscal year, the lowest country in four years and 6.7% for fiscal year 2025-26.
Bank of England’s cuts rates
He Bank of England lowered its reference interest rate In 25 basic points to 4.5%, its first cut of the year. All members of the monetary policy committee voted at lower rates, but two out of nine had voted for a greater cut of 50 basic points. The governor of the Central Bank, Andrew Bailey, said he waits for more cuts this year. The BOE also reduced its growth prognosis for the United Kingdom economy in 2025 to 0.75% of 1.5%.
Disappointing Amazon guide
Amazon The actions fell more than 4% after giving Disappointing income orientation for current quarterciting difficulties raised by a strong US dollar. Also announced plans to spend $ 100 billion in capital expenses in 2025mainly on artificial intelligence infrastructure. The technological giant exceeded earnings and income expectations for the fourth quarter, and is ready to overcome Walmart like him Company S&P 500 with the highest quarterly income.
Consecutive gains for S&P 500
Thursday, the S&P 500 Advanced 0.36% for their Third consecutive winning daywhile the Nasdaq compound It rose 0.51%. He Dow Jones industrialHowever, it lost 0.28%. From Japan Nikkei 225 retired around 0.6% after the country Domestic spending in December unexpectedly jumped annually, while India Ingenious 50 It was around the flat line after the interest rates cut by RBI.
Trump is focusing on yields, not on rates
The Trump administration is focusing on using fiscal policy for Keep 10 -year treasure performance And he is not “asking the Fed to lower rates,” said Treasury Secretary Scott Besent, in an interview on Wednesday with Fox News. That marks a change from Trump’s original plan to “demand that interest rates fall immediately.”
(PRO) IBM exceeds Nvidia
No NvidiaNo Apple and not Amazon -The best performance stock in the Dow in the last three months has been IBMwhich rose 27%. However, the technology company needs Make more in the field of artificial intelligence So that their actions continue to work well, according to an investment director.
People buy clothes at a Calvin Klein store in a shopping center in Beijing on February 5, 2025.
Adek Berry | AFP | Getty images
How Calvin Klein and Tommy Hilfiger were trapped in Trump’s trade war with China
China has included in the blacklist the owner of Calvin Klein and Tommy Hilfiger, which could force the company to close stores and manufacturing in the country, in an early impact of Trump’s commercial war. While the China Ministry of Commerce began investigating PVH September for allegedly refusing to obtain cotton from the Xinjiang region, which has become known for its Uyghur detention camps, Beijing officially placed the company on its list of “little reliable entities” on Tuesday.